The document discusses consumer behavior and the factors that influence purchasing decisions. It covers cultural, social, and personal factors that shape behavior and also psychological processes like motivation, perception, learning, emotions, and memory. The key models of consumer decision making are outlined, including the problem recognition process, information search, evaluation of alternatives, and post-purchase evaluation. Cultural, social, and personal characteristics along with psychological processes all contribute to consumer responses in the marketplace.
The document discusses brand positioning and differentiation. It defines positioning as how a product is defined by consumers on important attributes compared to competitors or other products. Marketers identify competitors' strengths and weaknesses through customer ratings. Brands can be differentiated through points-of-difference (unique attributes) or points-of-parity (shared attributes). Effective positioning comes from desirable, deliverable, and differentiating attributes. The document also discusses brand mantras, perceptual maps, and emotional branding to convey a brand's identity.
The document discusses retailing, wholesaling, and logistics. It covers the major types of retailers like supermarkets, department stores, and discount stores. It also discusses wholesalers, types like merchants and brokers. Key decisions by retailers and wholesalers are discussed around target markets, product assortment, pricing, private label brands, and logistics. Emerging trends are the growth of giant retailers, technology investments, and globalization of major companies.
This document summarizes chapter 7 of the marketing management textbook by Kotler and Keller. The chapter discusses identifying market segments and targets. It covers the different bases for segmenting consumers and business markets, such as geographic, demographic, psychographic and behavioral factors. It also outlines the requirements for effective segmentation and target marketing, and how companies should evaluate segments and select target markets.
The document provides an overview of factors that influence consumer behavior, including cultural, social, personal, and psychological factors. It discusses theories of motivation from Freud, Maslow, and Herzberg and key psychological processes of perception, learning, emotions, and memory. It also outlines the consumer decision process and models of low-involvement decisions. Behavioral factors like heuristics, framing, and mental accounting are examined in relation to how consumers sometimes stray from rational decision making.
How do consumer characteristics influence buying behavior?
What major psychological processes influence consumer responses to the marketing program?
How do consumers make purchasing decisions?
In what ways do consumers stray from a deliberative, rational decision process?
This document summarizes key concepts from Chapter 12 on marketing channels. It discusses conventional distribution systems consisting of independent producers, wholesalers, and retailers, each seeking to maximize their own profits. Vertical marketing systems provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system. There are three types of vertical marketing systems: corporate, contractual, and administered. Horizontal marketing systems involve companies at one level joining together to pursue new opportunities.
The document discusses factors companies should consider when deciding to enter global markets and how to manage international operations. It covers evaluating foreign markets, risks of going abroad, modes of entry like exporting and licensing. The text also addresses adapting marketing strategies for other cultures, managing global brands, and organizational structures like export departments and international divisions.
The document discusses competitive dynamics and strategies for different market positions. It addresses how market leaders can expand the total market and defend their share, how challengers can attack leaders, and how followers and nichers can compete. The document also examines strategies for different stages of the product life cycle and how marketers should adapt to economic downturns by focusing on value and customers.
The document discusses brand positioning and differentiation. It defines positioning as how a product is defined by consumers on important attributes compared to competitors or other products. Marketers identify competitors' strengths and weaknesses through customer ratings. Brands can be differentiated through points-of-difference (unique attributes) or points-of-parity (shared attributes). Effective positioning comes from desirable, deliverable, and differentiating attributes. The document also discusses brand mantras, perceptual maps, and emotional branding to convey a brand's identity.
The document discusses retailing, wholesaling, and logistics. It covers the major types of retailers like supermarkets, department stores, and discount stores. It also discusses wholesalers, types like merchants and brokers. Key decisions by retailers and wholesalers are discussed around target markets, product assortment, pricing, private label brands, and logistics. Emerging trends are the growth of giant retailers, technology investments, and globalization of major companies.
This document summarizes chapter 7 of the marketing management textbook by Kotler and Keller. The chapter discusses identifying market segments and targets. It covers the different bases for segmenting consumers and business markets, such as geographic, demographic, psychographic and behavioral factors. It also outlines the requirements for effective segmentation and target marketing, and how companies should evaluate segments and select target markets.
The document provides an overview of factors that influence consumer behavior, including cultural, social, personal, and psychological factors. It discusses theories of motivation from Freud, Maslow, and Herzberg and key psychological processes of perception, learning, emotions, and memory. It also outlines the consumer decision process and models of low-involvement decisions. Behavioral factors like heuristics, framing, and mental accounting are examined in relation to how consumers sometimes stray from rational decision making.
How do consumer characteristics influence buying behavior?
What major psychological processes influence consumer responses to the marketing program?
How do consumers make purchasing decisions?
In what ways do consumers stray from a deliberative, rational decision process?
This document summarizes key concepts from Chapter 12 on marketing channels. It discusses conventional distribution systems consisting of independent producers, wholesalers, and retailers, each seeking to maximize their own profits. Vertical marketing systems provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system. There are three types of vertical marketing systems: corporate, contractual, and administered. Horizontal marketing systems involve companies at one level joining together to pursue new opportunities.
The document discusses factors companies should consider when deciding to enter global markets and how to manage international operations. It covers evaluating foreign markets, risks of going abroad, modes of entry like exporting and licensing. The text also addresses adapting marketing strategies for other cultures, managing global brands, and organizational structures like export departments and international divisions.
The document discusses competitive dynamics and strategies for different market positions. It addresses how market leaders can expand the total market and defend their share, how challengers can attack leaders, and how followers and nichers can compete. The document also examines strategies for different stages of the product life cycle and how marketers should adapt to economic downturns by focusing on value and customers.
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and maintain prices for their products and services.
This document provides an overview of chapters 16 of a marketing textbook. It discusses personal selling, sales promotion, and managing the sales force. Personal selling involves face-to-face communication to represent the company and customers. Sales promotion uses short-term incentives to encourage purchases. Managing the sales force includes designing structure, recruiting, motivating, and evaluating performance. The personal selling process and types of sales promotion tools are also examined.
The document discusses key topics that influence consumer behavior, including cultural, social, personal, and psychological factors. It covers major theories on motivation from Freud, Maslow, and Herzberg, as well as psychological processes like perception, learning, emotions, and memory. The five-stage model of the buying decision process is also examined, along with how behavioral decision theory and behavioral economics can cause consumers to stray from rational decision making.
The document discusses marketing communications and integrated marketing communications programs. It covers the major modes of marketing communications including advertising, sales promotion, public relations, direct marketing, and personal selling. It outlines the steps in developing effective communications programs, including identifying the target audience, determining objectives, designing the message strategy and creative appeals, selecting communication channels, establishing a budget, and deciding on the right media mix. Finally, it discusses developing an integrated marketing communications program that coordinates these various communications tools.
This document discusses marketing channels and channel management. It begins by defining a marketing channel system as the set of organizations involved in making a product available to consumers. It then discusses how companies design channel systems, manage channel members, integrate channels, and address channel conflicts. The document also covers the rise of e-commerce and m-commerce channels and the issues companies face with these new channels.
The document provides an overview of consumer motivation and needs. It discusses the types of human needs, including innate and acquired needs. It also covers goals and how they are selected, as well as the dynamics of motivation including how needs are aroused and how frustration can lead to defense mechanisms. Several systems of needs are examined, including those proposed by Maslow and Murray. Qualitative and projective techniques for measuring motives are also summarized.
This document provides an overview of chapter 8 from a marketing textbook. It covers the topics of products, services, and brands. The key points are:
1) A product is anything that can be offered in a market that might satisfy a need or want. Services are intangible products that don't result in ownership.
2) Products can be classified as consumer products like convenience, shopping, specialty or unsought products, or industrial products like materials, capital goods or supplies.
3) Marketers make decisions about individual products, product lines, and product mixes. They consider quality, features, style, branding, packaging and support services.
4) Building strong brands is important for differentiation and creating
The document discusses key aspects of services marketing. It defines a service as any act or performance that is intangible and does not result in ownership. Services are classified along a continuum from pure tangible goods to pure services. Services differ from goods in being intangible, inseparable from their delivery, variable in their delivery, and perishable if not provided immediately. The document outlines challenges in services marketing like matching supply and demand and reducing customer failures. It provides best practices for achieving service excellence, improving quality using models of expected service, and enhancing customer support for goods companies.
This document outlines key topics in consumer markets and consumer buyer behavior. It discusses the model of consumer behavior and characteristics that affect consumer behavior, including cultural, social, personal, and psychological factors. It also summarizes the different types of buying decision behaviors and details the steps in the buyer decision process, from need recognition to the post-purchase evaluation. Finally, it examines the adoption process for new products and how product characteristics influence the rate of adoption.
Kotler developing pricing strategies and programsJohn Muriango
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
The document discusses marketing information systems and demand forecasting. It defines a marketing information system as consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute timely and accurate information to marketing decision makers. It also defines a marketing intelligence system as procedures and sources that managers use to obtain everyday information about developments in the marketing environment. The document discusses how companies can measure current and future demand through methods like estimating total market potential, analyzing area market potential, and surveying buyers' intentions.
This document discusses factors that influence consumer behavior and the consumer decision-making process. It covers cultural, social, and personal factors that shape consumer behavior. Key psychological processes like motivation, perception, learning, emotions and memory are also examined. The five stages of the consumer decision process are outlined as problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Non-rational influences and heuristics on consumer choices are also summarized.
This document discusses creating long-term loyalty relationships with customers. It defines key concepts like customer value, satisfaction, loyalty and lifetime value. It also discusses how companies can maximize lifetime value, attract and retain customers through customer relationship management programs and databases. Specific strategies covered include identifying high-value customers, customizing interactions, reducing defection rates and increasing customer longevity.
This document discusses creating long-term loyalty relationships with customers. It defines key concepts like customer value, satisfaction and loyalty. It also discusses how companies can maximize customer lifetime value and attract and retain customers through customer relationship management programs and databases. Specific strategies highlighted include identifying customer needs, customizing interactions, reducing defection rates and focusing efforts on high-value customers.
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitor price changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
This document outlines chapter 4 of a marketing textbook, which discusses managing marketing information and gaining customer insights. The chapter covers assessing marketing information needs, developing marketing information through various methods like marketing research and customer relationship management, analyzing marketing information, and distributing and using the information. The overall goal is to provide companies with fresh insights into customer needs and wants in order to create more value for customers.
The document discusses the new product development process. It describes the challenges companies face in developing new offerings, such as shortage of ideas, fragmented markets, and faster development times. The document outlines the main stages in new product development, from idea generation to concept testing, prototype testing, and market testing before launch. It also discusses factors that influence consumers' adoption of new products, such as the characteristics of innovations and the categorization of consumers based on their willingness to adopt innovations early or later.
This document discusses marketing practices and strategies. It covers trends in marketing like outsourcing and globalization. It also discusses organizing a marketing department through functional, geographic, product-based or market-based structures. Finally, it outlines tools for monitoring and improving marketing performance, including annual plans, audits, and reviews of efficiency, profitability and strategy. The overall document provides an overview of holistic marketing organization and best practices.
The document discusses marketing research and metrics. It describes the marketing research process as having 6 steps: 1) define the problem, 2) develop a research plan, 3) collect information, 4) analyze the information, 5) present findings, and 6) make a decision. It also discusses characteristics of good marketing research and different metrics that can be used to measure marketing productivity such as awareness, market share, and customer satisfaction. Marketing-mix modeling and dashboards are presented as tools to quantify and interpret various marketing metrics.
The document discusses consumer perception and the three elements that make up perception - sensation, differential threshold, and subliminal perception. It explains that perception is the process of selecting, organizing, and interpreting stimuli. Sensation is the immediate response of the senses to stimuli. Differential threshold refers to the minimal difference detectable between two similar stimuli. Subliminal perception involves stimuli too weak or brief to be consciously perceived but may still influence affective reactions. Selection, organization, and interpretation are the three aspects of perception discussed in detail.
This document summarizes key topics from Chapter 3 of the marketing textbook "Marketing Management" by Kotler and Keller. It discusses the components of a modern marketing information system including collecting internal records and external data on customers, competitors, and factors. It also describes how companies analyze market demand through measuring current demand, estimating future demand, and forecasting trends using a variety of techniques. The chapter examines macroenvironmental factors that influence demand and methods for improving marketing intelligence.
The document discusses marketing strategies and plans, including identifying a company's value chain, core competencies, and marketing opportunities. It explains that a marketing plan operates at both a strategic and tactical level to direct a company's marketing efforts and should include an executive summary, situation analysis, marketing strategy, financial projections, and implementation controls. Additionally, the document covers topics such as product versus market orientation, SWOT analysis, and Porter's generic strategies.
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and maintain prices for their products and services.
This document provides an overview of chapters 16 of a marketing textbook. It discusses personal selling, sales promotion, and managing the sales force. Personal selling involves face-to-face communication to represent the company and customers. Sales promotion uses short-term incentives to encourage purchases. Managing the sales force includes designing structure, recruiting, motivating, and evaluating performance. The personal selling process and types of sales promotion tools are also examined.
The document discusses key topics that influence consumer behavior, including cultural, social, personal, and psychological factors. It covers major theories on motivation from Freud, Maslow, and Herzberg, as well as psychological processes like perception, learning, emotions, and memory. The five-stage model of the buying decision process is also examined, along with how behavioral decision theory and behavioral economics can cause consumers to stray from rational decision making.
The document discusses marketing communications and integrated marketing communications programs. It covers the major modes of marketing communications including advertising, sales promotion, public relations, direct marketing, and personal selling. It outlines the steps in developing effective communications programs, including identifying the target audience, determining objectives, designing the message strategy and creative appeals, selecting communication channels, establishing a budget, and deciding on the right media mix. Finally, it discusses developing an integrated marketing communications program that coordinates these various communications tools.
This document discusses marketing channels and channel management. It begins by defining a marketing channel system as the set of organizations involved in making a product available to consumers. It then discusses how companies design channel systems, manage channel members, integrate channels, and address channel conflicts. The document also covers the rise of e-commerce and m-commerce channels and the issues companies face with these new channels.
The document provides an overview of consumer motivation and needs. It discusses the types of human needs, including innate and acquired needs. It also covers goals and how they are selected, as well as the dynamics of motivation including how needs are aroused and how frustration can lead to defense mechanisms. Several systems of needs are examined, including those proposed by Maslow and Murray. Qualitative and projective techniques for measuring motives are also summarized.
This document provides an overview of chapter 8 from a marketing textbook. It covers the topics of products, services, and brands. The key points are:
1) A product is anything that can be offered in a market that might satisfy a need or want. Services are intangible products that don't result in ownership.
2) Products can be classified as consumer products like convenience, shopping, specialty or unsought products, or industrial products like materials, capital goods or supplies.
3) Marketers make decisions about individual products, product lines, and product mixes. They consider quality, features, style, branding, packaging and support services.
4) Building strong brands is important for differentiation and creating
The document discusses key aspects of services marketing. It defines a service as any act or performance that is intangible and does not result in ownership. Services are classified along a continuum from pure tangible goods to pure services. Services differ from goods in being intangible, inseparable from their delivery, variable in their delivery, and perishable if not provided immediately. The document outlines challenges in services marketing like matching supply and demand and reducing customer failures. It provides best practices for achieving service excellence, improving quality using models of expected service, and enhancing customer support for goods companies.
This document outlines key topics in consumer markets and consumer buyer behavior. It discusses the model of consumer behavior and characteristics that affect consumer behavior, including cultural, social, personal, and psychological factors. It also summarizes the different types of buying decision behaviors and details the steps in the buyer decision process, from need recognition to the post-purchase evaluation. Finally, it examines the adoption process for new products and how product characteristics influence the rate of adoption.
Kotler developing pricing strategies and programsJohn Muriango
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
The document discusses marketing information systems and demand forecasting. It defines a marketing information system as consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute timely and accurate information to marketing decision makers. It also defines a marketing intelligence system as procedures and sources that managers use to obtain everyday information about developments in the marketing environment. The document discusses how companies can measure current and future demand through methods like estimating total market potential, analyzing area market potential, and surveying buyers' intentions.
This document discusses factors that influence consumer behavior and the consumer decision-making process. It covers cultural, social, and personal factors that shape consumer behavior. Key psychological processes like motivation, perception, learning, emotions and memory are also examined. The five stages of the consumer decision process are outlined as problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Non-rational influences and heuristics on consumer choices are also summarized.
This document discusses creating long-term loyalty relationships with customers. It defines key concepts like customer value, satisfaction, loyalty and lifetime value. It also discusses how companies can maximize lifetime value, attract and retain customers through customer relationship management programs and databases. Specific strategies covered include identifying high-value customers, customizing interactions, reducing defection rates and increasing customer longevity.
This document discusses creating long-term loyalty relationships with customers. It defines key concepts like customer value, satisfaction and loyalty. It also discusses how companies can maximize customer lifetime value and attract and retain customers through customer relationship management programs and databases. Specific strategies highlighted include identifying customer needs, customizing interactions, reducing defection rates and focusing efforts on high-value customers.
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitor price changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
This document outlines chapter 4 of a marketing textbook, which discusses managing marketing information and gaining customer insights. The chapter covers assessing marketing information needs, developing marketing information through various methods like marketing research and customer relationship management, analyzing marketing information, and distributing and using the information. The overall goal is to provide companies with fresh insights into customer needs and wants in order to create more value for customers.
The document discusses the new product development process. It describes the challenges companies face in developing new offerings, such as shortage of ideas, fragmented markets, and faster development times. The document outlines the main stages in new product development, from idea generation to concept testing, prototype testing, and market testing before launch. It also discusses factors that influence consumers' adoption of new products, such as the characteristics of innovations and the categorization of consumers based on their willingness to adopt innovations early or later.
This document discusses marketing practices and strategies. It covers trends in marketing like outsourcing and globalization. It also discusses organizing a marketing department through functional, geographic, product-based or market-based structures. Finally, it outlines tools for monitoring and improving marketing performance, including annual plans, audits, and reviews of efficiency, profitability and strategy. The overall document provides an overview of holistic marketing organization and best practices.
The document discusses marketing research and metrics. It describes the marketing research process as having 6 steps: 1) define the problem, 2) develop a research plan, 3) collect information, 4) analyze the information, 5) present findings, and 6) make a decision. It also discusses characteristics of good marketing research and different metrics that can be used to measure marketing productivity such as awareness, market share, and customer satisfaction. Marketing-mix modeling and dashboards are presented as tools to quantify and interpret various marketing metrics.
The document discusses consumer perception and the three elements that make up perception - sensation, differential threshold, and subliminal perception. It explains that perception is the process of selecting, organizing, and interpreting stimuli. Sensation is the immediate response of the senses to stimuli. Differential threshold refers to the minimal difference detectable between two similar stimuli. Subliminal perception involves stimuli too weak or brief to be consciously perceived but may still influence affective reactions. Selection, organization, and interpretation are the three aspects of perception discussed in detail.
This document summarizes key topics from Chapter 3 of the marketing textbook "Marketing Management" by Kotler and Keller. It discusses the components of a modern marketing information system including collecting internal records and external data on customers, competitors, and factors. It also describes how companies analyze market demand through measuring current demand, estimating future demand, and forecasting trends using a variety of techniques. The chapter examines macroenvironmental factors that influence demand and methods for improving marketing intelligence.
The document discusses marketing strategies and plans, including identifying a company's value chain, core competencies, and marketing opportunities. It explains that a marketing plan operates at both a strategic and tactical level to direct a company's marketing efforts and should include an executive summary, situation analysis, marketing strategy, financial projections, and implementation controls. Additionally, the document covers topics such as product versus market orientation, SWOT analysis, and Porter's generic strategies.
The document outlines the marketing research process and various techniques used at each step. It discusses defining the problem, developing a research plan including data collection methods, analyzing the collected information, and presenting findings. A variety of question types and instruments are presented, along with considerations for sampling, contact methods, and interpreting results. Metrics for measuring marketing performance and assessing return on investment are also examined.
This document discusses brand equity and strategies for building strong brands. It begins by defining a brand and brand equity, and explaining how brands provide benefits to both consumers and marketers. It then examines different models for measuring brand equity, including the BrandAsset Valuator model. The document outlines various elements that comprise a brand, such as names, logos, slogans, and how brands are developed and leveraged through line extensions, brand portfolios, and secondary associations. It also discusses how brand equity is measured and managed over time.
The document defines marketing as creating, communicating, and delivering value for customers and society. It defines marketing management as choosing target markets and growing customers through superior value. It discusses the scope of marketing, including what can be marketed and who is involved. It also covers fundamental marketing concepts like segmentation, branding, and the marketing environment. Finally, it discusses how marketing has changed in recent decades due to technology, globalization, and the need to differentiate products.
The document discusses market segmentation and targeting. It defines a market segment as a group of customers who share similar needs and wants. It identifies different ways to segment consumer markets, including geographic, demographic, psychographic, and behavioral segmentation. The key requirements for effective segmentation are that the segments are identifiable, substantial, accessible, differentiable, and actionable. Companies must also choose the most attractive target markets to enter.
Kotler Keller - Marketing Management 15th edition
Chapter 01 Lecture slide
Made by Korea Institute of Marketing Education
http://www.marketingkorea.org
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The document discusses consumer behavior and the factors that influence purchasing decisions. It covers cultural, social, and personal factors that shape behavior and the psychological processes of motivation, perception, learning, emotions, and memory. It also summarizes the consumer decision process of problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Key models discussed include Maslow's hierarchy of needs, the buying decision process, and post-purchase satisfaction levels.
This document discusses consumer behavior and the factors that influence consumer purchasing decisions. It covers cultural, social, and personal factors like demographics, as well as psychological factors including motivation, perception, learning, emotions, and memory. The five stages of the consumer decision process are outlined: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Models of consumer motivation and decision making are presented.
The document discusses consumer behavior and the consumer decision-making process. It addresses factors that influence consumer behavior like cultural, social, and personal characteristics. It also outlines the stages of consumer decision-making including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Finally, it discusses psychological concepts that influence decisions like motivation, perception, learning, emotions, and memory.
The document discusses consumer behavior and the factors that influence consumer purchasing decisions. It covers cultural, social, and personal factors as well as psychological processes like motivation, perception, learning, emotions, and memory. A consumer buying behavior model is presented that involves problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Key aspects of the consumer decision process are analyzed, including how consumers evaluate alternatives using attributes and heuristics and make purchase decisions.
1. The document discusses various concepts related to branding and brand equity, including brand elements, marketing activities, secondary associations, and models for measuring brand equity.
2. It provides examples of top global brands and their estimated brand values, and explains strategies for building, managing, and extending brand equity through elements, activities, and brand portfolios.
3. Key models for measuring brand equity are presented, including the BrandAsset Valuator model and brand resonance pyramid.
3. Marketing Information sytem (Marketing Enviornment) and Demand forecastin...AjayGiri42
The document discusses marketing information systems and demand forecasting. It covers the components of a marketing information system, including internal records, marketing research, intelligence from publications and customer/supplier meetings. Demand forecasting methods are examined, such as time series analysis using decomposition to separate trends, seasonality and irregular components. Accuracy of forecasts is important and can be measured using errors between forecasts and actual results. Other forecasting methods discussed include leading indicators and barometric forecasting.
The document discusses strategic planning and marketing plans. It provides an overview of strategic planning processes and levels, including defining corporate mission and goals, assessing growth opportunities, and conducting SWOT analyses. It also outlines the typical components of a marketing plan, such as defining strategic and tactical levels, products, promotion, pricing, and channels. The document uses figures and examples to illustrate strategic planning frameworks and the role of marketing plans in the strategic planning process.
The document discusses key concepts in branding and brand management. It defines brands and brand equity, and outlines several models for measuring brand equity. It also discusses the role of brands for both consumers and marketers, and how brands can be built by developing brand elements, marketing activities, and secondary associations. Methods for measuring and managing brand equity are presented, including brand portfolios and brand extension strategies.
The document discusses strategic planning and marketing plans. It covers developing marketing strategies at different organizational levels, from corporate strategic planning down to business unit and product planning. Key aspects of strategic planning discussed include defining the corporate mission and strategic business units, assessing growth opportunities, and developing goals and strategies. The document also addresses the components and levels of a formal marketing plan.
The document outlines the new product development process, including generating ideas, screening ideas, concept development, concept testing, marketing strategy development, business analysis, product development, market testing, and commercialization. The goal is to introduce new market offerings by taking ideas through each stage of the process to evaluate feasibility and customer demand before full commercialization.
This document discusses strategic planning and marketing plans. It covers developing a corporate mission and defining strategic business units. Key parts of strategic planning include assessing growth opportunities, conducting SWOT analyses, and formulating goals and strategies. The document also outlines what should be included in marketing plans, such as a situation analysis, marketing strategy, and financial projections. It emphasizes that strong leadership is needed for feedback and control in strategic planning.
The document is a slide presentation on developing marketing strategies and plans. It discusses strategic planning at different organizational levels, from corporate to business unit level. It covers developing the corporate mission and assessing growth opportunities. It also discusses the key components of a marketing plan, including strategic and tactical levels, and covers situation analysis, marketing strategy, financial projections, and implementation controls.
The document discusses the components of a modern marketing information system, including collecting internal records on customers, competitors, and external factors. It explains that a marketing information system involves gathering, sorting, analyzing, evaluating, and disseminating information to provide insights. Examples of internal records that can be collected and analyzed include sales information, order data, and customer databases. Marketing intelligence also involves monitoring news, meetings with stakeholders, and social media to track industry trends and developments. Accurately measuring and forecasting demand involves analyzing the macroenvironment, including demographic, economic, sociocultural, technological, political, and natural influences.
This document summarizes key topics from Chapter 3 of the marketing textbook "Marketing Management" by Kotler and Keller. It discusses the components of a modern marketing information system including collecting internal records and external information on customers, competitors, and factors. It also covers marketing intelligence, analyzing the macroenvironment, measuring and forecasting demand.
The document discusses marketing research and outlines the marketing research process. It describes the 6 steps of the marketing research process as: 1) define the problem, 2) develop the research plan, 3) collect the information, 4) analyze the information, 5) present the findings, and 6) make the decision. It also lists characteristics of good marketing research as using the scientific method, employing multiple research methods, valuing both data and the cost of obtaining information, and maintaining a healthy skepticism.
This document discusses creating long-term loyalty relationships with customers. It covers customer value, satisfaction and loyalty, and how companies can deliver them. It also discusses maximizing customer lifetime value, cultivating strong customer relationships through customer relationship management, and using customer databases and database marketing. The key aspects covered are determining customer perceived value, measuring customer satisfaction, analyzing customer profitability, personalizing marketing, and retaining high value customers.
This document summarizes key points from Chapter 6 of the marketing management textbook. It discusses how consumer characteristics, psychological processes, and decision making influence consumer behavior. Specifically, it examines how cultural, social, and personal factors shape buying behaviors. It also analyzes motivation, perception, learning, and memory as major psychological influences. Furthermore, it outlines the five stages of the consumer decision process - problem recognition, information search, evaluation alternatives, purchase decision, and post-purchase behavior. Lastly, it explores how marketers can analyze consumer decision making through profiling and understanding the consumer's consumption system.
The document discusses consumer buyer behavior and the consumer decision-making process. It introduces a model of consumer behavior that shows how marketing and environmental stimuli enter a consumer's "black box" and influence their responses. It then describes various factors that affect consumer behavior, including cultural, social, personal and psychological characteristics. It outlines four types of buying behavior and explains the typical consumer decision process of need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also discusses the adoption process for new products.
The document discusses marketing research and metrics. It describes the marketing research process as having 6 steps: 1) define the problem, 2) develop a research plan, 3) collect information, 4) analyze the information, 5) present findings, and 6) make a decision. It also lists characteristics of good marketing research as being scientific, creative, using multiple methods, valuing information, and being ethical. Additionally, it discusses ways to measure marketing productivity such as marketing-mix modeling and using marketing metrics and dashboards.
This document defines marketing and provides context for marketing in the 21st century. It discusses definitions of marketing from social, AMA, and Kotler perspectives. It also outlines the evolution of marketing concepts from production to marketing orientation. Finally, it discusses elements of modern marketing like developing strategies, capturing insights, connecting with customers, and creating long-term growth.
This document discusses organizational buying and business markets. It begins by defining organizational buying and identifying different types of business markets. It then explains how business markets differ from consumer markets in terms of the buyers being professional, relationships being personal, fewer but larger buyers, and demand being derived, inelastic, and fluctuating. The rest of the document outlines the buying process for business markets, including different buying situations, participants, stages, and frameworks for analyzing business-to-business relationships.
The document discusses consumer behavior and the factors that influence purchasing decisions. It covers cultural factors like culture and social class, psychological factors including motivation and perception, and the consumer decision process from problem recognition to post-purchase behavior. The buying process involves information search, evaluation of alternatives using attitudes and beliefs, and a final purchase decision influenced by decision heuristics.
This document discusses customer value, satisfaction, and loyalty. It defines these concepts and explains how companies can deliver value to customers to increase satisfaction and loyalty. It also discusses how companies can maximize customer lifetime value through relationship marketing, database marketing, and retaining profitable customers. The key is understanding customers, delivering value through products and services, monitoring satisfaction, and cultivating long-term customer relationships.
This document discusses marketing research and outlines the marketing research process. It defines marketing research as the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation. The marketing research process involves 6 steps: 1) define the problem, 2) develop a research plan, 3) collect information, 4) analyze the information, 5) present findings, and 6) make a decision. Key aspects of each step are described. Characteristics of good marketing research and methods for measuring marketing productivity like marketing metrics and marketing-mix modeling are also summarized.
The document defines marketing as creating, communicating, and delivering value for customers and society. It defines marketing management as choosing target markets and growing customers through superior value. It discusses the scope of what can be marketed, types of markets and demand, and core marketing concepts. It also covers how marketing has changed with new technologies, the roles in marketing management, and key tasks for successful marketing.
The document defines marketing as creating, communicating, and delivering value for customers and society. It defines marketing management as choosing target markets and growing customers through superior value. It discusses the scope of marketing, including what can be marketed and who is involved. It also covers fundamental marketing concepts like segmentation, branding, and the marketing environment. Finally, it discusses how marketing has changed in recent years due to technology, globalization, and the need to differentiate products.
Here are some strategies firms use to position themselves based on pairs of attributes and benefits:
- Present attributes/benefits separately rather than together to avoid negative correlation
- Leverage equity of another entity (e.g. brand extension) to address negative correlation
- Redefine relationship between attributes/benefits to reduce or eliminate perceived negative correlation
- Emphasize one attribute/benefit over the other to shift perception of tradeoff
- Develop new technologies that allow simultaneous delivery of previously negatively correlated attributes/benefits
- Segment markets and position to different segments based on their priorities for attributes/benefits
1. The document discusses key concepts related to branding and brand equity, including defining a brand, the roles and advantages of strong brands, how brand equity is built, measured, and managed.
2. It provides examples of strong brands like ESPN and Apple and discusses various models for measuring brand equity, including the Brand Asset Valuator, Aaker Model, and Brand Resonance Pyramid.
3. The document outlines the steps in strategic brand management as identifying brand positioning, implementing brand marketing, measuring performance, and growing brand value.
The document discusses market segmentation and targeting. It describes different levels of segmentation from mass markets to niches. Effective segmentation requires identifying distinct customer groups that differ in needs and selecting target segments. Companies must also establish the benefits of their offering to the target segment. The document provides examples of companies targeting segments based on demographics, psychographics, behaviors, and other variables.
The document discusses how companies can create value, satisfaction, and loyalty for customers. It defines concepts like customer perceived value, quality, satisfaction, and lifetime value. It also discusses how companies can implement customer relationship management strategies to maximize customer retention, acquisition, and profitability through databases and targeted communications.
The document discusses key topics in business-to-business marketing including:
1) The differences between business and consumer markets including fewer larger buyers, close supplier relationships, and professional purchasing.
2) The buying situations organizational buyers face including straight rebuys, modified rebuys, and new tasks.
3) The multiple participants in organizational buying processes including initiators, users, influencers, deciders, approvers, buyers, and gatekeepers.
This document discusses factors that influence consumer behavior and the consumer decision-making process. It covers cultural factors like subcultures, social factors like reference groups and social roles, and personal factors like demographics, values, and lifestyle. Key psychological processes that influence consumer responses are motivation, memory/learning, and perception. The consumer decision process involves problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Marketers analyze this process using models of consumer behavior and decision making.
This document discusses marketing research and demand forecasting. It defines marketing research as the systematic process of designing, collecting, analyzing and reporting data to help solve specific marketing problems. The key steps in the marketing research process are defining the problem, developing a research plan, collecting information, analyzing the findings and making decisions. Different research methods are discussed, including surveys, experiments and focus groups. Good marketing metrics and marketing-mix modeling can help companies quantify and understand the impact of their marketing activities.
The document discusses the components of a marketing information system including internal records and marketing intelligence. It provides examples of how companies gather customer data and segment markets. Additionally, it outlines various external environmental factors that marketers must consider including demographic, economic, sociocultural, technological, natural, and political-legal influences on consumer behavior.
This document discusses key concepts in developing marketing strategies and plans. It covers topics such as how marketing affects customer value, different levels of strategic planning, components of a marketing plan, and frameworks for analyzing opportunities and formulating goals. Examples are provided of companies that effectively apply various strategic marketing approaches.
Marketing is defined as creating value for customers and managing relationships to benefit an organization. It involves understanding customer needs and delivering superior value through products and services. Marketing management aims to attract and retain customers through strategic decision making. The scope of marketing has expanded over time as organizations now market a variety of offerings beyond tangible goods, and technology has increased opportunities to connect with customers globally.
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...Demandbase
Delve into essential ABM ‘plays' that propel success while identifying and leaving behind tactics that no longer yield results. Led by ABM Experts, Jon Barcellos, Head of Solutions at Postal and Tom Keefe, Principal GTM Expert at Demandbase.
This session will aim to comprehensively review the current state of artificial intelligence techniques for emotional recognition and their potential applications in optimizing digital advertising strategies. Key studies developing AI models for multimodal emotion recognition from videos, images, and neurophysiological signals were analyzed to build content for this session. The session delves deeper into the current challenges, opportunities to help realize the full benefits of emotion AI for personalized digital marketing.
In the face of the news of Google beginning to remove cookies from Chrome (30m users at the time of writing), there’s no longer time for marketers to throw their hands up and say “I didn’t know” or “They won’t go through with it”. Reality check - it has already begun - the time to take action is now. The good news is that there are solutions available and ready for adoption… but for many the race to catch up to the modern internet risks being a messy, confusing scramble to get back to "normal"
As 2023 proved, the next few years may be shaped by market volatility and artificial intelligence services such as OpenAI's ChatGPT and Perplexity.ai. Your brand will increasingly compete for attention with Google, Apple, OpenAI, and Amazon, and customers will expect a hyper-relevant and individualized experience from every business at any moment. New state-legislated data privacy laws and several FTC rules may challenge marketers to deliver contextually relevant customer experiences, much less reach unknown prospective buyers. Are you ready?Let's discuss the critical need for data governance and applied AI for your business rather than relying on public AI models. As AI permeates society and all industries, learn how to be future-ready, compliant, and confidentlyscaling growth.
Key Takeaways:
Primary Learning Objective
1: Grasp when artificial general intelligence (""AGI"") will arrive, and how your brand can navigate the consequences. Primary Learning Objective
2: Gain an accurate analysis of the continuously developing customer journey and business intelligence. Primary Learning Objective
3: Grow revenue at lower costs with more efficient marketing and business operations.
Unlock the secrets to enhancing your digital presence with our masterclass on mastering online visibility. Learn actionable strategies to boost your brand, optimize your social media, and leverage SEO. Transform your online footprint into a powerful tool for growth and engagement.
Key Takeaways:
1. Effective techniques to increase your brand's visibility across various online platforms.
2. Strategies for optimizing social media profiles and content to maximize reach and engagement.
3. Insights into leveraging SEO best practices to improve search engine rankings and drive organic traffic.
Can you kickstart content marketing when you have a small team or even a team of one? Why yes, you can! Dennis Shiao, founder of marketing agency Attention Retention will detail how to draw insights from subject matter experts (SMEs) and turn them into articles, bylines, blog posts, social media posts and more. He’ll also share tips on content licensing and how to establish a webinar program. Attend this session to learn how to make an impact with content marketing even when you have a small team and limited resources.
Key Takeaways:
- You don't need a large team to start a content marketing program
- A webinar program yields a "one-to-many" approach to content creation
- Use partnerships and licensing to create new content assets
We will explore the transformative journey of American Bath Group as they transitioned from a traditional monolithic CMS to a dynamic, composable martech framework using Kontent.ai. Discover the strategic decisions, challenges, and key benefits realized through adopting a headless CMS approach. Learn how composable business models empower marketers with flexibility, speed, and integration capabilities, ultimately enhancing digital experiences and operational efficiency. This session is essential for marketers looking to understand the practical impacts and advantages of composable technology in today's digital landscape. Join us to gain valuable insights and actionable takeaways from a real-world implementation that redefines the boundaries of marketing technology.
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptxBoston SEO Services
From Hope to Despair: The Top 10 Reasons Businesses Ditch SEO Tactics
Are you tired of seeing your business's online visibility plummet from hope to despair? When it comes to SEO tactics, many businesses find themselves grappling with challenges that lead them to abandon their strategies altogether. In a digital landscape that's constantly evolving, staying on top of SEO best practices is crucial to maintaining a competitive edge.
In this blog, we delve deep into the top 10 reasons why businesses ditch SEO tactics, uncovering the pain points that may resonate with you:
1. Algorithm Changes: The ever-changing algorithms can leave businesses feeling like they're chasing a moving target. Search engines like Google frequently update their algorithms to improve user experience and provide more relevant search results. However, these updates can significantly impact your website's visibility and ranking if you're not prepared.
2. Lack of Results: Investing time and resources without seeing tangible results can be disheartening. The absence of immediate results often leads businesses to lose faith in their SEO strategies. It's important to remember that SEO is a long-term game that requires patience and consistent effort.
3. Technical Challenges: From site speed issues to complex metadata implementation, technical hurdles can be daunting. Overcoming these challenges is crucial for SEO success, as technical issues can hinder your website's performance and user experience.
4. Keyword Competition: Fierce competition for top keywords can make it hard to rank effectively. Businesses often struggle to find the right balance between targeting high-traffic keywords and finding less competitive, niche keywords that can still drive significant traffic.
5. Lack of Understanding of SEO Basics: Many businesses dive into the complex world of SEO without fully grasping the fundamental principles. This lack of understanding can lead to several issues:
Keyword Awareness: Failing to recognize the importance of keyword research and targeting the right keywords in content.
On-Page Optimization: Ignorance regarding crucial on-page elements such as meta tags, headers, and content structure.
Technical SEO Best Practices: Overlooking essential aspects like site speed, mobile responsiveness, and crawlability.
Backlinks: Not understanding the value of high-quality backlinks from reputable sources.
Analytics: Failing to track and analyze data prevents businesses from optimizing their SEO efforts effectively.
6. Unrealistic Expectations and Timeframe: Entrepreneurs often fall prey to the allure of quick fixes and overnight success. Unrealistic expectations can overshadow the reality of the time and effort needed to see tangible results in the highly competitive digital landscape. SEO is a long-term strategy, and setting realistic goals is crucial for success.
#SEO #DigitalMarketing #BusinessGrowth #OnlineVisibility #SEOChallenges #BostonSEO
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Did you know that while 50% of content on the internet is in English, English only makes up 26% of the world’s spoken language? And yet 87% of customers won’t buy from an English only website.
Uncover the immense potential of communicating with customers in their own language and learn how translation holds the key to unlocking global growth. Join Smartling CEO, Bryan Murphy, as he reveals how translation software can streamline the translation process and seamlessly integrate into your martech stack for optimal efficiency. And that's not all – he’ll also share some inspiring success stories and practical tips that will turbocharge your multilingual marketing efforts!
Key takeaways:
1. The growth potential of reaching customers in their native language
2. Tips to streamline translation with software and integrations to your tech stack
3. Success stories from companies that have increased lead generation, doubled revenue, and more with translation
Capstone Project: Luxury Handloom Saree Brand
As part of my college project, I applied my learning in brand strategy to create a comprehensive project for a luxury handloom saree brand. Key aspects of this project included:
- *Competitor Analysis:* Conducted in-depth competitor analysis to identify market position and differentiation opportunities.
- *Target Audience:* Defined and segmented the target audience to tailor brand messages effectively.
- *Brand Strategy:* Developed a detailed brand strategy to enhance market presence and appeal.
- *Brand Perception:* Analyzed and shaped the brand perception to align with luxury and heritage values.
- *Brand Ladder:* Created a brand ladder to outline the brand's core values, benefits, and attributes.
- *Brand Architecture:* Established a cohesive brand architecture to ensure consistency across all brand touchpoints.
This project helped me gain practical experience in brand strategy, from research and analysis to strategic planning and implementation.
The Good the Bad and The Ugly of Marketing MeasurementNapierPR
We explore how B2B marketers can impress the board by measuring their PR and marketing campaigns successfully, and explore 5 metrics that will get you promoted, and 3 that will get your fired.
We cover:
-Meaningless marketing metrics
-The difference between attribution and incrementality
-The importance of the customer journey
-Why you should care about prospects that are in market
-Measuring the unmeasurable
The Strategic Impact of Storytelling in the Age of AI
In the grand tapestry of marketing, where algorithms analyze data and artificial intelligence predicts trends, one essential thread remains constant — the timeless art of storytelling. As we stand on the precipice of a new era driven by AI, join me in unraveling the narrative alchemy that transforms brands from mere entities into captivating tales that resonate across the digital landscape. In this exploration, we will discover how, in the face of advancing technology, the human touch of a well-crafted story becomes not just a marketing tool but the very essence that breathes life into brands and forges lasting connections with our audience.
Trust Element Assessment: How Your Online Presence Affects Outbound Lead Gene...Martal Group
Learn how your business's online presence affects outbound lead generation and what you can do to improve it with a complimentary 13-Point Trust Element Assessment.
Breaking Silos To Break Bank: Shattering The Divide Between Search And SocialNavah Hopkins
At Mozcon 2024 I shared this deck on bridging the divide between search and social. We began by acknowledging that search-first marketers are used to different rules of engagement than social marketers. We also looked at how both channels treat creative, audiences, bidding/budgeting, and AI. We finished by going through how they can win together including UTM audits, harvesting comments from both to inform creative, and allowing for non-login forums to be part of your marketing strategy.
I themed this deck using Baldur's Gate 3 characters: Gale as Search and Astarion as Social
The advent of AI offers marketers unprecedented opportunities to craft personalized and engaging customer experiences, evolving customer engagements from one-sided conversations to interactive dialogues. By leveraging AI, companies can now engage in meaningful dialogues with customers, gaining deep insights into their preferences and delivering customized solutions.
Susan will present case studies illustrating AI's application in enhancing customer interactions across diverse sectors. She'll cover a range of AI tools, including chatbots, voice assistants, predictive analytics, and conversational marketing, demonstrating how these technologies can be woven into marketing strategies to foster personalized customer connections.
Participants will learn about the advantages and hurdles of integrating AI in marketing initiatives, along with actionable advice on starting this transformation. They will understand how AI can automate mundane tasks, refine customer data analysis, and offer personalized experiences on a large scale.
Attendees will come away with an understanding of AI's potential to redefine marketing, equipped with the knowledge and tactics to leverage AI in staying competitive. The talk aims to motivate professionals to adopt AI in enhancing their CX, driving greater customer engagement, loyalty, and business success.
Successful marketing requires that companies fully connect with their customers. Adopting a holistic marketing orientation means understanding customers— gaining a 360-degree view of both their daily lives and the changes that occur during their lifetimes so the right products are always marketed to the right customers in the right way.
Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Marketers must fully understand both the theory and reality of consumer behavior. A consumer’s buying behavior is influenced by cultural, social, and personal factors. Of these, cultural factors exert the broadest and deepest influence.
Cultural Factors
Culture, subculture, and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through family and other key institutions, a child growing up in the United States is exposed to values such as: achievement and success, activity, efficiency and practicality, progress, material comfort, individualism,
freedom, external comfort, humanitarianism, and youthfulness. A child growing up in another country might have a different view of self, relationship to others, and rituals. Marketers must closely attend to cultural values in every country to understand how to best market their existing products and find opportunities for new products.
Slide shows the average US outlays in 2007 for goods and services.
Housing - 38.5% Transportation 15.5% Food – 11.4% Insurance – 8.5%
Medical – 6.1% Entertainment – 4.8% Savings – 4.2% Clothing – 3.3% Education – 2.1%
Everything else accounts for 5.3% of a consumer expenditures.
Social Factors
In addition to cultural factors, social factors such as reference groups, family, and social roles and statuses affect our buying behavior.
REFERENCE GROUPS
A person’s reference groups are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior. Groups having a direct influence are called membership groups. Some of these are primary groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers. People also belong to secondary groups, such as religious, professional, and trade-union groups, which tend to be more formal and require less continuous interaction. Reference groups influence members in at least three ways. They expose an individual to new behaviors and lifestyles, they influence attitudes and self-concept, and they create pressures for conformity that may affect product and brand choices. People are also influenced by groups to which they do not belong. Aspirational groups are those a person hopes to join; dissociative groups are those whose values or behavior an individual rejects.
FAMILY
The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. There are two families in the buyer’s life. The family of orientation consists of parents and siblings. From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love. Even if the buyer no longer interacts very much with his or her parents, parental influence on behavior can be significant. Almost 40 percent of families have auto insurance with the same company as the husband’s parents.
ROLES AND STATUS
We each participate in many groups—family, clubs, organizations. Groups often are an important source of information and help to define norms for behavior. We can define a person’s position in each group in terms of role and status. A role consists of the activities a person is expected to perform. Each role in turn connotes a status. A senior vice president of marketing may be seen as having more status than a sales manager, and a sales manager may be seen as having more status than an office clerk. People choose products that reflect and communicate their role and their actual or desired status in society. Marketers must be aware of the status-symbol potential of products and brands.
Personal Factors
Personal characteristics that influence a buyer’s decision include age and stage in the life cycle; occupation and economic circumstances; personality and self-concept; and lifestyle and values. Because many of these have a direct impact on consumer behavior, it is important for marketers to follow them closely.
AGE AND STAGE IN THE LIFE CYCLE
Our taste in food, clothes, furniture, and recreation is often related to our age. Consumption is also shaped by the family life cycle and the number, age, and gender of people in the household at any point in time. U.S. households are increasingly fragmented—the traditional family of four with a husband, wife, and two kids makes up a much smaller percentage of total households than it once did. The average U.S. household size in 2008 was 2.6 persons.
Marketers should also consider critical life events or transitions—marriage, childbirth, illness, relocation, divorce, first job, career change, retirement, death of a spouse—as giving rise to new needs. These should alert service providers—banks, lawyers, and marriage, employment, and bereavement counselors—to ways they can help.
PERSONALITY AND SELF-CONCEPT
Each person has personality characteristics that influence his or her buying behavior. By personality, we mean a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli (including buying behavior).We often describe personality in terms of such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability. Personality can be a useful variable in analyzing consumer brand choices. Brands also have personalities, and consumers are likely to choose brands whose personalities match their own. We define brand personality as the specific mix of human traits that we can attribute to a particular brand.
OCCUPATION AND ECONOMIC CIRCUMSTANCES
Occupation also influences consumption patterns. Marketers try to identify the occupational groups that have above-average interest in their products and services and even tailor products for certain occupational groups: Computer software companies, for example, design different products for brand managers, engineers, lawyers, and physicians.
As the recent recession clearly indicated, both product and brand choice are greatly affected by economic circumstances: spendable income (level, stability, and time pattern), savings and assets (including the percentage that is liquid), debts, borrowing power, and attitudes toward spending and saving. Luxury-goods makers such as Gucci, Prada, and Burberry are vulnerable to an economic downturn. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products or introduce or increase the emphasis on discount brands so they can continue to offer value to target customers.
LIFESTYLE AND VALUES
People from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests, and opinions. It portrays the “whole person” interacting with his or her
environment. Marketers search for relationships between their products and lifestyle groups. A computer manufacturer might find that most computer buyers are achievement-oriented and then aim the brand more clearly at the achiever lifestyle. Lifestyles are shaped partly by whether consumers are money constrained or time constrained. Companies aiming to serve money-constrained consumers will create lower -cost products and services. By appealing to thrifty consumers, Walmart has become the largest company in the world.
Its “everyday low prices” have wrung tens of billions of dollars out of the retail supply chain, passing the larger part of savings along to shoppers in the form of rock-bottom bargain prices.
Consumers who experience time famine are prone to multitasking, doing two or more things at the same time. They will also pay others to perform tasks because time is more important to them than money. Companies aiming to serve them will create convenient products and services for this group.
The starting point for understanding consumer behavior is the stimulus-response model shown in Figure 6.1. Marketing and environmental stimuli enter the consumer’s consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. The marketer’s task is to understand what happens in the
consumer’s consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processes—motivation, perception, learning, and memory—fundamentally influence consumer responses
Freud – Psychological forces that shaped peoples behavior are unconscious.
Maslow – People are driven by different needs at different times. According to Maslow, human needs are arranged in a hierarchy from most to least pressing.
Herzberg – Developed two-factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) from satisfiers (factors that cause satisfaction).
Selective retention – People tend to remember (forget) information that supports (differs) our attitudes and beliefs.
A motivated person is ready to act—how is influenced by his or her perception of the situation. In marketing, perceptions are more important than reality, because perceptions affect consumers’ actual behavior. Perception is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world. It depends not only on physical stimuli, but also on the stimuli’s relationship to the surrounding environment and on conditions within each of us. One person might perceive a fast-talking salesperson as aggressive and insincere; another, as intelligent and helpful. Each will respond to the salesperson differently.
SELECTIVE ATTENTION
Attention is the allocation of processing capacity to some stimulus. Voluntary attention is something purposeful; involuntary attention is grabbed by someone or something. It’s estimated that the average person may be exposed to over 1,500 ads or brand communications a day. Because we cannot possibly attend to all these, we screen most stimuli out—a process called selective attention. Selective attention means that marketers must work hard to attract consumers’ notice.
SELECTIVE DISTORTION
Even noticed stimuli don’t always come across in the way the senders intended. Selective distortion is the tendency to interpret information in a way that fits our preconceptions. Consumers will often distort information to be consistent with prior brand and product beliefs and expectations. For a stark demonstration of the power of consumer brand beliefs, consider that in “blind” taste tests, one group of consumers samples a product without knowing which brand it is, while another group knows. Invariably, the groups have different opinions, despite consuming exactly the same product.
SELECTIVE RETENTION
Most of us don’t remember much of the information to which we’re exposed, but we do retain information that supports our attitudes and beliefs. Because of selective retention, we’re likely to remember good points about a product we like and forget good points
about competing products. Selective retention again works to the advantage of strong brands. It also explains why marketers need to use repetition—to make sure their message is not overlooked.
SUBLIMINAL PERCEPTION
The selective perception mechanisms require consumers’ active engagement and thought. A topic that has fascinated armchair marketers for ages is subliminal perception. They argue that marketers embed covert, subliminal messages in ads or packaging.
Consumers are not consciously aware of them, yet they affect behavior. Although it’s clear that mental processes include many subtle subconscious effects, no evidence supports the notion that marketers can systematically control consumers at that level, especially enough to change moderately important or strongly held beliefs.
When we act, we learn. Learning induces changes in our behavior arising from experience. Most human behavior is learned, although much learning is incidental. Learning theorists believe learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. Two popular approaches to learning are classical conditioning and operant (instrumental) conditioning. A drive is a strong internal stimulus impelling action. Cues are minor stimuli that determine when, where, and how a person responds. Suppose you buy an HP computer. If your experience is rewarding, your response to computers and HP will be positively reinforced. Later, when you want to buy a printer, you may assume that because it makes good computers, HP also makes good printers. In other words, you generalize your response to similar stimuli. A countertendency to generalization is discrimination. Discrimination means we have learned to recognize differences in sets of similar stimuli and can adjust our responses accordingly.
Consumers do not always respond cognitively and rationally. Many responses can be emotional. Brands can make people feel proud, excited, or confident. Ads can create feelings of amusement, disgust, or wonder.
Brand associations consist of all brand related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand node in the brain.
Smart companies try to fully understand customers’ buying decision process—all the experiences in learning, choosing, using, and even disposing of a product. Marketing scholars have developed a “stage model” of the process. The consumer typically passes through five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. Clearly, the buying process starts long before the actual purchase and has consequences long afterward.
Consumers don’t always pass through all five stages—they may skip or reverse some. When you buy your regular brand of toothpaste, you go directly from the need to the purchase decision, skipping information search and evaluation. The model in Figure 6.4 provides a good frame of reference, however, because it captures the full range of considerations that arise when a consumer faces a highly involving new purchase
An internal stimulus is triggered by a person’s normal needs – hunger, thirst – when the need rises to a threshold level.
A need can also be aroused by an external stimulus, such as seeing a commercial for a vacation. A person then begins to consider the possibility of taking a vacation.
Information Search Surprisingly, consumers often search for limited amounts of information. Surveys have shown that for durables, half of all consumers look at only one store, and only 30 percent look at more than one brand of appliances. We can distinguish between two levels of engagement in the search. The milder search state is called heightened attention. At this level a person simply becomes more receptive to information about a product. At the next level, the person may enter an active information search: looking for reading material, phoning friends, going online, and visiting stores to learn about the product.
By gathering information, the consumer learns about competing brands and their features. The first box in Figure 6.5 shows the total set of brands available. The individual consumer will come to know a subset of these, the awareness set. Only some, the consideration set, will meet initial buying criteria. As the consumer gathers more information, just a few, the choice set, will remain strong contenders. The consumer makes a final choice from these.
No single process is used by all consumers, or by one consumer in all buying situations. It is important that marketers understand that:
The consumer is trying to satisfy a need.
The consumer is looking for certain benefits from the product solution.
The consumer sees each product as a bundle of attributes with varying abilities to deliver the benefits.
-- The attributes of interest will vary based on the product.
A belief is a descriptive thought that a person holds about something. Attitudes are a person’s enduring favorable, or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea.
The consumer arrives at attitudes toward various brands through an attribute evaluation procedure, developing a set of beliefs
about where each brand stands on each attribute. The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs—the positives and negatives—according to importance.
Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision (see Figure 6.6). The first factor is the attitudes of others. The influence of another person’s attitude depends on two things: (1) the intensity of the other person’s negative attitude toward our preferred alternative and (2) our motivation to comply with the other person’s wishes.66 The more intense the other person’s negativism and the closer he or she is to us, the more we will adjust our purchase intention. The converse is also true.
The second factor is unanticipated situational factors that may erupt to change the purchase intention. The consumer might lose her job, some other purchase might become more urgent, or a store salesperson may turn her off. Preferences and even purchase intentions are not completely reliable predictors of purchase behavior.
After a consumer has reached a purchase intention, up to five subdecisions may need to be made. The brand, the dealer (where), quantity, timing (when), and payment method.
With noncompensatory models of consumer choice, positive and negative attribute considerations don’t necessarily net out. Evaluating attributes in isolation makes decision making easier for a consumer, but it also increases the likelihood that she would have made a different choice if she had deliberated in greater detail. We highlight three choice heuristics here.
1. Using the conjunctive heuristic, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes. For example, if Linda decided all attributes had to rate at least 5, she would choose laptop computer B.
2. With the lexicographic heuristic, the consumer chooses the best brand on the basis of its perceived most important attribute. With this decision rule, Linda would choose laptop computer C.
3. Using the elimination-by-aspects heuristic, the consumer compares brands on an attribute selected probabilistically—where the probability of choosing an attribute is positively related to its importance—and eliminates brands that do not meet minimum acceptable cutoffs.
After the purchase, the consumer might experience dissonance from noticing certain disquieting features or hearing favorable things about other brands and will be alert to information that supports his or her decision. Marketing communications should supply beliefs and evaluations that reinforce the consumer’s choice and help him or her feel good about the brand. The marketer’s job therefore doesn’t end with the purchase. Marketers must monitor postpurchase satisfaction, postpurchase actions, and postpurchase product uses and disposal.
POSTPURCHASE SATISFACTION
Satisfaction is a function of the closeness between expectations and the product’s perceived performance. If performance falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. These feelings make a difference in whether the customer buys the product again and talks favorably or unfavorably about it to others. The larger the gap between expectations and performance, the greater the dissatisfaction. Here the consumer’s coping style comes into play. Some consumers magnify the gap when the product isn’t perfect and are highly dissatisfied; others minimize it and are less dissatisfied.
POSTPURCHASE ACTIONS
A satisfied consumer is more likely to purchase the product again and will also tend to say good things about the brand to others. Dissatisfied consumers may abandon or return the product. They may seek information that confirms its high value. They may
take public action by complaining to the company, going to a lawyer, or complaining to other groups (such as business, private, or government agencies). Private actions include deciding to stop buying the product (exit option) or warning friends (voice option).
Marketers should also monitor how buyers use and dispose of the product ( Figure 6.7). A key driver of sales frequency is product
consumption rate—the more quickly buyers consume a product, the sooner they may be back in the market to repurchase it.
Consumers may fail to replace some products soon enough because they overestimate product life. One strategy to speed replacement is to tie the act of replacing the product to a certain holiday, event, or time of year.
The manner or path by which a consumer moves through the decision-making stages depends on several factors, including the level of involvement and extent of variety seeking, as follows. LOW-INVOLVEMENT CONSUMER DECISION MAKING The expectancy-value
model assumes a high level of consumer involvement, or engagement and active processing the consumer undertakes in responding to a marketing stimulus.
VARIETY-SEEKING BUYING BEHAVIOR
Some buying situations are characterized by low involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer has some beliefs about cookies, chooses a brand without much evaluation, and evaluates the product during consumption. Next time, the consumer may reach for another brand out of a desire for a different taste. Brand switching occurs for the sake of variety, rather than dissatisfaction.
Consumers don’t always process information or make decisions in a deliberate, rational manner. One of the most active academic research areas in marketing over the past three decades has been behavioral decision theory (BDT). Behavioral decision theorists have identified many situations in which consumers make seemingly irrational choices.
Decision Heuristics
Previously we reviewed some common heuristics that occur with noncompensatory decision making. Other heuristics similarly come into play in everyday decision making when consumers forecast the likelihood of future outcomes or events.
The availability heuristic—Consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind. If an example comes to mind too easily, consumers might overestimate the likelihood of its happening.
The representativeness heuristic—Consumers base their predictions on how representative or similar the outcome is to other examples. One reason package appearances may be so similar for different brands in the same product category is that marketers want their products to be seen as representative of the category as a whole.
The anchoring and adjustment heuristic—Consumers arrive at an initial judgment and then adjust it based on additional information. For services marketers, a strong first impression is critical to establish a favorable anchor so subsequent experiences will be interpreted in a more favorable light.
Framing
Decision framing is the manner in which choices are presented to and seen by a decision maker. A $200 cell phone may not seem that expensive in the context of a set of $400 phones but may seem very expensive if those phones cost $50. Framing effects are pervasive and can be powerful. University of Chicago professors Richard Thaler and Cass Sunstein show how marketers can influence consumer decision making through what they call the choice architecture—the environment in which decisions are structured and buying choices are made. According to these researchers, in the right environment, consumers can be given a “nudge” via some small feature in
the environment that attracts attention and alters behavior. They maintain Nabisco is employing a smart choice architecture by offering 100-calorie snack packs, which have solid profit margins, while nudging consumers to make healthier choices