Session 9 MG 220 BBA - 6 Sep 10


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Session 9
MG 220 Marketing Management
BBA Section C

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Session 9 MG 220 BBA - 6 Sep 10

  1. 1. Part 3: Connecting with Customers<br />> What influences Consumer Behavior<br />> Key Psychological Processes<br />> Apple Ads<br />> Quiz 2 (Part 2: Session 4 - 7)<br />Class Presentation | Session 9 | 6 Sep 2010<br />
  2. 2. What Influences Consumer Behavior<br />Understanding the Theory and Realities of Consumer Behavior<br />A key part of Marketing<br />Consumer’s buying behavior is influenced by:<br />Cultural Factors<br />Social Factors<br />Personal Factors<br />MG 220 Marketing Management<br />2<br />
  3. 3. What Influences Consumer BehaviorCultural Factors<br />Culture, Subculture & Social Class: 3 important variables<br />Culture is fundamental determinant of a person’s wants and behavior<br />Set of values, perceptions, preferences, and behaviors through his or her family or other institutions<br />MG 220 Marketing Management<br />3<br />
  4. 4. What Influences Consumer BehaviorCultural Factors<br />Each Culture has smaller Subcultures giving more specific identification and socialization<br />Significantly affluent Subcultures => considering marketing accordingly i.e. multicultural marketing<br />Multilingual services by Telenor, Mobilink<br />MG 220 Marketing Management<br />4<br />
  5. 5. What Influences Consumer BehaviorCultural Factors<br />Social Stratification – strata(s) in society<br />Social Classes – relatively homogenous and enduring divisions in each society, which are hierarchically organized and whose members share similar values, interests and behavior<br />Characteristics:<br />Tend to behave similarly<br />Defines position in society<br />Defined by many variables together (no one variable to define it)<br />Individuals move up or down in classes<br />MG 220 Marketing Management<br />5<br />
  6. 6. What Influences Consumer BehaviorSocial Factors<br />Reference Groups consist of all groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior<br />Primary Groups – more interactivity, informal (Family, friends)<br />Secondary Groups – Less interactivity, formal (religious, political)<br />Important Groups to which people do not belong<br />Aspirational Group – A person hopes to join<br />Dissociative Group – Whose value a person rejects<br />Opinion leader - A person in informal, prodcut-related communications who offers advice or information about specific product or product category<br />Family Planning Campaign and “MasjidkeMaulvisb”<br />MG 220 Marketing Management<br />6<br />
  7. 7. What Influences Consumer BehaviorSocial Factors<br />Family – Most important Consumer buying organization in the society. Most influential primary reference group<br />Marketers are interested in roles and relative influence of family members in purchasing behavior<br />Can directly impact a sales<br />Family eating out:<br />Father (Chinese – Tai Wah)<br />Mother (Healthy – Subway)<br />Grandparents (Continental – Village)<br />and the winner is:<br />BACHAY: Hum ne Pizza Hut janahai!!!<br />MG 220 Marketing Management<br />7<br />
  8. 8. What Influences Consumer BehaviorSocial Factors<br />There can be different roles for a person in different settings<br />Role: Activities a person is expected to perform<br />Status: carried by every role<br />Understanding of Roles and Status is important for understanding buying behaviors<br />MG 220 Marketing Management<br />8<br />
  9. 9. What Influences Consumer BehaviorPersonal Factors<br />Different personal factors:<br />Age and stage in life cycle<br />Occupation and economic circumstances<br />Personality and self-concept<br />Lifestyle and Values<br />MG 220 Marketing Management<br />9<br />
  10. 10. What Influences Consumer BehaviorPersonal Factors<br />Age and Stage in Life Cycle<br />Preferences and consumer behaviors change with age<br />Important considerations include:<br />Family Life Cycle – As it grows in years and numbers<br />Psychological Life Cycle – As a person grows<br />Critical Life Events – Births, marriage, relocation<br />MG 220 Marketing Management<br />10<br />
  11. 11. What Influences Consumer BehaviorPersonal Factors<br />Occupation and Economic Circumstances<br />Occupation also impacts buying behaviors<br />Engineers, IT will be more inclined towards latest gadgets<br />Economic Considerations<br />Spendable income<br />Savings and Assets<br />Debts and Borrowing Power<br />Attitude towards spending and saving<br />MG 220 Marketing Management<br />11<br />
  12. 12. What Influences Consumer BehaviorPersonal Factors<br />Personality and Self-Concept<br />Personality – Set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli<br />Very useful in analyzing consumer brand choices<br />Brand Personality – Specific mix of human traits that may be attributed to a particular brand<br />Strong relation in choosing brand’s consistent with either:<br />Actual self-concept<br />Ideal self-concept<br />MG 220 Marketing Management<br />12<br />
  13. 13. What Influences Consumer BehaviorPersonal Factors<br />Lifestyle and Values<br />Lifestyle – Person’s pattern of living in the world as expressed in activities, interests and opinions<br />Lifestyles partly shaped by:<br />Time-constrained<br />Money-constrained<br />Core Values: They are the belief systems that underlie consumer attitudes and behaviors and strongly influence consumer behavior<br />MG 220 Marketing Management<br />13<br />
  14. 14. Key Psychological Processes<br />Key Psychological Processes influencing consumer responses:<br />Motivation<br />Perception<br />Learning<br />Memory<br />Stimulus-response model<br />MG 220 Marketing Management<br />14<br />
  15. 15. Key Psychological ProcessesMotivation<br />Needs & Motives<br />Needs<br />Can be biogenic (hunger, thirst etc)<br />Can be Psychogenic (need for self-recognition, self-esteem)<br />Motive<br />Need with a sufficient intensity pressing a person to “act”<br />Theories of Human Motivation:<br />Freud<br />Maslow<br />Herzberg<br />MG 220 Marketing Management<br />15<br />
  16. 16. Key Psychological ProcessesMotivation<br />Theories of Human Motivation:<br />Freud<br />Psych. Forces are largely unconscious<br />A person cannot fully understand his/her own motivations<br />Marketers try to understand what all “motives” a product can satisfy<br />Volvo only for safety or a status symbol (too)?<br />MG 220 Marketing Management<br />16<br />
  17. 17. Key Psychological ProcessesMotivation<br />Theories of Human Motivation (contd…):<br />Maslow<br />Human needs are arrangedin heirarchy<br />Most to Least pressing<br />Marketers try to understandhow their product fitin a person’s life and goals<br />MG 220 Marketing Management<br />17<br />
  18. 18. Key Psychological ProcessesMotivation<br />Theories of Human Motivation:<br />Herzberg<br />Satisfiers and Dissatisfiers<br />Absence of Dissatisfiers + Presence of Satisfiers is required for motivation to buy<br />The new Nokia set does NOT have reception issues + it HAS a good camera too....motivating enough to be bought.<br />MG 220 Marketing Management<br />18<br />
  19. 19. Key Psychological ProcessesPerception<br />How a “motivated” person actually acts depends on:<br />Perception - the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world<br />In Marketing, Perception is more important than the reality.<br />Perception actually affects consumers’ behaviors<br />Three key perceptual processes<br />Selective Attention (people “selectively attend” to messages)<br />Selective Distortion (“distort” information about a brand as “I” think it is)<br />Selective Retention (remember good points about products we like rather good points of all products)<br />Subliminal Perception (controlling the subconscious of consumer by subliminal messages – not proven)<br />MG 220 Marketing Management<br />19<br />
  20. 20. Key Psychological ProcessesLearning<br />Learning – Changes in an individual’s behavior arising from experience<br />Most human behavior is “learned”<br />Learning is produced from interplay of:<br />Drive – strong internal stimulus impelling action<br />Cues – Minor stimuli determining when, where and how a person respond<br />Responses – result of Drive and cues<br />Reinforcement – based on experience, response may be reinforced<br />Tendency to “generalize”<br />Nestle MilkPak is good, all dairy products are good by Nestle<br />Discrimination – a person has learned to recognize differences in sets of similar stimuli and can adjust responses accordingly<br />MG 220 Marketing Management<br />20<br />
  21. 21. Key Psychological ProcessesMemory<br />STM – temporary repository of information<br />LTM – more permanent repository of information<br />Associative Network Memory model vis-à-vis consumer brand knowledge => consumer brand knowledge might consist as a brand node in consumer’s mind with a variety of association<br />Brand associations consists of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs etc….<br />Marketers need to ensure right experiences are created for their brand so it stays “rightly” in memory<br />MG 220 Marketing Management<br />21<br />
  22. 22. Key Psychological ProcessesMemory<br />Two important Memory processes:<br />Encoding<br />Retrieval<br />1. Memory Processes: Encoding<br />How and where information gets into memory<br />More attention placed on information => stronger the resulting association in memory will be<br />Existing brand associations also impact encoding process for newly formed association<br />MG 220 Marketing Management<br />22<br />
  23. 23. Key Psychological ProcessesMemory<br />2. Memory Processes: Retrieval<br />How information comes out of memory<br />Key factors affecting the process:<br />Presence of other product information<br />Delay from exposure to info at encoding<br />Information may be available but may require “retrieval cues or reminders” to be retrieved<br />MG 220 Marketing Management<br />23<br />
  24. 24. APPLE!<br />Apple’s advertising<br />Related to today’s session……<br />Campaign # 1: “Think Different”<br />Campaign # 2: “I am a Mac and I am a PC”<br />MG 220 Marketing Management<br />24<br />
  25. 25. APPLE<br />Apple’s advertising<br />Result of Campaign # 1:<br />Our brand is the most - or at least one of the most - valuable things we have going for us now and the company's future in general. It "only took 15 . . . 30 . . . maybe 60 seconds" to reestablish Apple's counter-culture image that it had lost during the 90s.<br />- Steve Jobs (after launch of campaign and seeing its results)<br />MG 220 Marketing Management<br />25<br />
  26. 26. QUIZ # 2<br />Related to Part 2<br />Max Time: 20 Mins<br />MG 220 Marketing Management<br />26<br />
  27. 27. Part 3: Connecting with Customers<br />> The Buying Decision Process: The Five-stage Model<br />> What is Organizational Buying?<br />> Participants in the Business Buying Process<br />> Stages in the Buying Process<br />> Institutional and Government Markets<br />Class Presentation | Session 10 | 8 Sep 2010<br />