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Week 5 Notes (Tuesday, 9/29/15 and Thursday, 10/1/15)

by: JacksonB

Week 5 Notes (Tuesday, 9/29/15 and Thursday, 10/1/15) 241

Marketplace > Brigham Young University > Business > 241 > Week 5 Notes Tuesday 9 29 15 and Thursday 10 1 15
GPA 3.6
Marketing Management

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Detailed notes from Week 5 of class. General Topics: Consumer Behavior and Marketing Segmentation. This is the last of the material being covered in the 1st midterm. Enjoy!
Marketing Management
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This 9 page Class Notes was uploaded by JacksonB on Thursday October 1, 2015. The Class Notes belongs to 241 at Brigham Young University taught by Swenson in Summer 2015. Since its upload, it has received 47 views. For similar materials see Marketing Management in Business at Brigham Young University.


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Date Created: 10/01/15
BUS M 241 Swenson Tuesday 92915 Exam 1 will cover TopicsChapters 16 on MyEducator No class next Tuesday October 6th Consumer Behavior continued Consumer Behavior processes consumers use to make purchase decisions and to use and dispose of products Marketers want to know about all of these activities Model of Consumer Behavior Stimuli Person Response Stimuli The Environment Marketers control the marketing product price place and promotion Other variables include economic conditions technological advances social and cultural trends Person Buyer s Black Box The buyer s characteristics Every person has their own set of tastes and preferences No one is exactly the same Marketers want to know all about this black box Response Buyer Responses Marketers are able to evaluate and measure buying attitudes and preferences from customers With scanners companies are able to collect a lot of info about us what s purchased when is it purchased is it a routine purchase where is it made how much is purchased etc Consumer behavior is a process 1 Problem Recognition The customer perceives a need and wants to fulfill that need 2 Information Search The customer collects information to decide how to solve the problem 3 Evaluation the Alternatives Review the options available 4 Purchase Buying the selected product 5 PostPurchase Evaluation Re ecting on how well the problem was solved by the product Problem Recognition Occurs when there s a discrepancy between the customer s current state and desired state Changes in your current state can include depletion of supplies changes in finances getting fed up with certain supplies and inputs from marketers convincing advertising Changes in your desired state include new needswants arising a new product becomes available wanting to mix things up and inputs from marketers again Information Search Two general classifications for information searches internal and external searches Internal Search personal experience trying out the product first hand External Search examining personal accounts from family andor friends reviews from the general public and paying attention to commercials 3 Levels of Problem Solving 1 Routine Low involvement products that we buy all the time Inexpensive items with little risk attached and little info needed Conditioned responses mostly 2 Limited The inbetween state a mix of routine and extensive 3 Extensive High involvement products that we rarely buy Expensive items with a lot of risk attached and lots of info needed Evaluating the Alternatives Buying from the mind vs the heart Buying From the Mind Ab sum of all product attributes Bi Ei Ab attitude toward a brand Bi belief strength that the brand can give you what you want Ei evaluation of importance a particular attribute has Example Attribute Rating gEi 2 Ford g Bi 2 Style 5 3 Price 5 4 MPG 4 3 Horsepower 2 4 Safety 3 3 Simply multiply Ford s rating for each attribute by the maximum rating and add them together 53 15 54 20 43 12 24 8 33 9 15201289 64 Remember this is how consumers make decisions We may not write down this mathematical setup but this is essentially what goes through our minds when weighing our options The ratings and selected attributes are arbitrary Buying From the Heart Research on customer values suggests that people make decisions based on an attribute consequence values schema going from attributes to values Values 1 Consequences Attributes Example overnight mail Secretaries place a lot of importance on the reliability attribute of overnight mail If it s reliable they don t have to worry about looking bad in front of their boss As a result they are calm and able to work in peace Purchase We decide when where how and how much of a product we buy PostPurchase Evaluation Comparing our expectations to the reality Delight Perception gt Expectation Satisfaction Perception Expectation Dissatisfaction Perception lt Expectation The purchasing process is affected by many things Buying Situation what s the purpose behind the purchase Psychological Factors Perception process of selecting organizing and interpreting info Selective Attention screening out info consciously or unconsciously Selective Distortion twisting info to support our beliefs Selective Retention remembering only What you want to remember People throw a fuss about subliminal advertising but there s no empirical evidence for it Those customers just want to blame someone else for bad purchases Maslow s Hierarchy of Needs in ascending order Physiological food water Safety security Social belonging Esteem status recognition V PPPL Selfactualization selfdevelopment Learning result of info combined with experience that affects someone s thoughts and behavior Marketers can aid learning by giving consumers access to information and chances to use the products Researchers have discovered certain values that consumers hold dear Individual Factors Our gender age and family lifecycle affect our purchasing decisions and the way marketers reach out to us Social Factors Our family can in uence our purchases For example sometimes we purchase the same products our parents bought when we were growing up Same thing goes with reference groups friends colleagues and opinion leaders celebrities Cultural Factors Our overriding sets of values and norms in uence all aspects of our behavior including consumption Culture has been found to have the broadest and deepest in uence Subculture a smaller homogeneous group of people who share characteristics of the overall culture but have some unique characteristics of their own BUS M 241 Swenson Thursday October 1 2015 Review Sessions tonight 56 PM and tomorrow 1112 PM both in J SB 140 Exam goes from Monday October 5th until Thursday October 8th October 8th is a late day so if you take it that day you will have to pay a fee 50 multiple choice questions on the exam It will cover Topics 16 on MyEducator Consumer Behavior continued Social class group of people with similar status who socialize with each other often and share behavioral traits Note Everything beyond this point will NOT be tested on the exam next week Market Segmentation Marketing creates value for the group of customers the firm has chosen to appeal to Raison d etre reason to be The reason marketers exist is to create and deliver value to the selected customer group Marketers ask themselves who can we market to who should we market to how do we position the product in the customer s head and how do we want them to react to our brand Market Segmentation process of grouping customers into relatively homogenous groups so that customers Within that group Will respond to marketing efforts in a similar fashion Why Divide Into Segments It reaches customer groups you re aiming for It helps in distributing marketing resources Might discover opportunities in the marketplace It identifies segments that will pay off With segmentation we can understand Why your best customers are profitable and then identify segments that share at least some of those attributes Example bowling pins If the very first pin is your first customer then the second and third pins are more likely to be profitable than the 8th or 9th Criteria for Effective Segmentation U PP PF Measurable individuals can be counted and put in a segment Accessible people in the segment can be reached through promotion mediums Durable segment membership is fairly constant Substantial large enough to make products profitable Unique Needs needs are the same Within segments and different across segments Ways to Segment from Most Used to Most Useful Geographic Example Campbell s nacho cheese In Texas and California they produce spicier nacho cheese than in the Northeast Demographic Example companies that sell baby products Will focus their attention on young mothers not empty nesters Income Example Ford and MercedesBenz are both auto manufacturers but they market to different groups of people Ethnicity Example New Jersey has a significantly greater amount of Asians than Utah so marketers Will tinker With their promotions in New Jersey to appeal to them Firmographics The business to business marketplace Psychographics personality lifestyle etc Behavioral usage situation Example IKEA designing furniture displays for people With small apartments People and usage situations can be graphed in a person by situation segmentation matrix Example Pizza Hut has categorized single females Who earn 30k or less Who go out to eat as the Cabin Fever Segment they want to get out of the house and reduce loneliness


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