chapter 7 notes
chapter 7 notes MKTG 3650
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This 3 page Class Notes was uploaded by Tara Gardner on Sunday October 9, 2016. The Class Notes belongs to MKTG 3650 at University of North Texas taught by David Strutton in Fall 2016. Since its upload, it has received 6 views. For similar materials see Foundations of Marketing in Business at University of North Texas.
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Date Created: 10/09/16
1. marketers succeed by being in the crowd creation business 2. marketers succeed by being in the dissatisfaction creation business 3. marketers are in the problem solving business CB=consumer behavior: refers to the buying behaviors and the factors that influence the buying behavior, and the decisions made by final customers Stages of Consumer Behavior 1. Problem/need recognition 2. information search o researching products 3. alternative evaluation o very similar to stage 2 4. make a decision o Three options: expectations are met solution delivered value that greatly exceeded an expectations expectations are not satisfied 5. post-purchase-processes (PPP) o if you're dissatisfied, you're more likely to communicate opinions o **not good to build up expectations so high that you just can't deliver** o word of mouth if ward of mouth is good it's the marketers best friend, if it's bad it's the marketers worst enemy free from "original marketing sin" who you going to believe: a marketer or your best friend? Consumers don't always go through all 5 stages o Sometimes they skip some o also they can drop out of the process at any stage Marketers have the responsibility of managing what we feel at each stage Involvement Different levels of involvement o high involvement decision-i.e. purchase of a wedding dress (probs gonna go through all 5 stages) o low involvement-i.e. buying milk Definitely don't go through all the stages Level of involvement is dependent on 3 factors o cost o risk o importance Different types of problem solving o extensive problem solving--high involvement, lots of effort, Key decision o limited problem solving--not highly involved. look at 2 maybe 3 alternatives o routine problem solving--we already know what the solution is. Factors that influence CB (look at figure 7.1 in the book) most people are unaware of the factors that interfere with our CB processes and behaviors that we make as consumers consumers often engage in activities that are bad for them but good for the economic environment o the core of economics is the management of incentives Marketing segments respond to incentives in similar ways incentives can work positively or negatively Marketers study consumers both to catch them (sell to them) but also to learn about them so they can better meet consumer needs a handful of factors are controllable by marketers: o 4 Ps vs 7Ps o it's in the best interest of marketers not to give people too many options (3-5 is good , with 3 being the better option) perceptions are our own imagined realities Consumer decisions consumers make product decisions (what to buy) consumers make brand decisions (what to buy) Consumers make dealer choices (where to buy) Consumers make purchase timing decisions (when to buy) Consumers make purchase amount decisions (how much to buy) Social factors that influence CB Culture Culture is defined as the most basic cause of a person's wants or behaviors the set of lenses through which we see the world subcultures exist as natural segments that generally like or dislike the same things routinely used as a basis to segment market Social classes social classes are societies relatively enduring & ordered division (upper-upper, upper-lower, upper-middle, lower- middle, upper-lower, lower-lower) again, social classes share the same views, interests, etc. social class membership is never decided by one single factor. Influenced by: o Occupation, Income, Education Wealth, Zip code, etc clothing items, neighborhood, leisure time, cars, and home furnishings are products which are most influenced by class Social competition: people buy products they think will elevate their status other social factors Groups membership Groups families (Purchasing Agent, Influencer, Entity that consumes the product) o DINKs-stands for "double income, no kids) Reference Groups opinion leaders-expects whose opinions others value personal factors Age Family lifestyles o psychographics/AIOs: activities, interests, opinions an individual consumers pattern of acting & interacting in the world Psychological Factors that influence CB motives-needs that are sufficiently important and pressing enough to direct customers to seek satisfaction Psychological factors are normally divided into Maslow's Hierarchy of Needs, with biological needs being the most important o From most to least important: biological needs, safety, social and personal needs, self-actualization o products can be positioned as to satisfy any of these needs o we move up and down this pyramid of needs on a regular basis a belief is a descriptive thought about something attitude is like a belief, but more set in stone Gaining new customers almost always cost more than keeping existing customers sell them once and service them forever The emotions and CB Anger- makes optimistic and risk-taking more likely to buy Fear-makes us pessimistic a risk averse Can be spun in such a way that the product being sold is supposed to alleviate the fear Sadness-makes people anxious to buy things Habits and CB most habits can be good because we give our brain time to do higher processes brands wart to be your habit however our brain can't distinguish between good habits and bad habits How marketers handle these factors marketers cater towards individual personalities Self-concept-how we feel about ourselves very concerned how others see us o Do brands have personalities?
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