Marketing Principles Mark 101 PDF

Marketing Principles Mark 101 Dr. Rumaila Abbas  Factors influencing Consumer Behavior Cultural Social...

Marketing Principles Mark 101 Dr. Rumaila Abbas  Factors influencing Consumer Behavior Cultural Social Personal Culture Groups and Psychological social networks Age and life-cycle stage Many brands now target specific subcultures– such Occupation Motivation Buyer as Hispanic American, African American, and Asian Economic situation Perception American consumers--- with marketing programs Subculture Family Lifestyle Learning tailored to their specific Personality and self Beliefs and attitudes needs and preferences concept Roles and status Our buying decisions Social Class are affected by an incredibly complex combination of external and internal People’s buying decisions reflect and contribute to their lifestyles--- their whole influencers platform of acting and interacting in the world. For example, KitchenAid sells more than just kitchen appliances. It sells an entire cooking and entertainment lifestyle to “Kitchenthusiasts”. Culture Factors Characteristics affecting Consumer Behavior Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.  Characteristics affecting Consumer Behavior Cultural Factors Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations.  The campaign was created as part of P&G’s My Black is Beautiful initiative, which was created to change the narrative around black women and beauty. Received over 1.86 billion earned media impressions and was covered by more than 900 media outlets. It drew criticism from some who accused P&G of race-baiting, but it also stuck a positive chord In 2017 Procter & Gamble released a two-minute film within the black community and beyond. showing black mothers preparing their children for the racism they will face in their lives. ‘The Talk’ The campaign was also awarded a Grand Prix in the Film Category at Cannes and the Primetime Emmy for Outstanding Commercial. https://www.youtube.com/watch?v=ovY6yjTe1LE  Characteristics affecting Consumer Behavior Social Factors Groups and Social Networks ▪ Membership Groups ▪ Groups with direct influence and to which a person belongs ▪ Aspirational Groups ▪ Groups an individual wishes to belong to ▪ Reference Groups ▪ Groups that form a comparison or reference in forming attitudes or behavior  Family Influence ▪ Each family member has some influence on the behavior of other family members ▪ Changing roles and responsibilities of family members have necessitated “double targeting” by marketing organizations - ‘Pester Power’ – cheerios? https://www.youtube.com/watch?v=ILyXZspabgE  Personal Factors Personality and Self Concept Personality ▪ The individual distinguishing psychological characteristics that lead to relatively consistent and enduring responses to the environment Self- Looking Real-Self Glass-Self Ideal Self Image  Psychological Factors Attitudes ▪ Favorable or unfavorable feelings toward an object or idea ▪ Influenced by advertising, friends, trendsetters, and opinion leaders Position the product to meet target audience attitudes and expectations Using Lifestyle Imagery Healthy Living  Psychological Factors Perception ▪ How individuals receive and interpret messages? Selective Tendency for people to screen out most of Attention the information to which they are exposed Selective Tendency of people to interpret information Distortion in a way that will support what they already believe Selective Involves retaining information that supports Retention personal attitudes and beliefs  SELF ACTUALIZATION (self-fulfillment) ESTEEM Motivation and (status, respect, prestige) Maslow’s Hierarchy SOCIAL (friendship, belonging, love) of NEEDS SAFETY (protection from harm, security) PHYSIOLOGICAL (food, water, shelter, oxygen) Take some time to review Maslow's hierarchy and reflect on the following questions: Are these needs still relevant today? Are there any other needs consumers have that are not included in Maslow's pyramid?  The consumer market and a simple model of consumer buyer behavior Consumer Markets and Buying Behavior Consumer buyer behavior is the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. Consumer markets are made up of all the individuals and households that buy or acquire goods and services for personal consumption. The Model of Buyer Behavior  Consumer Purchase Decision Making  Stage One Problem Recognition We Ran Out Dissatisfaction Change in life stage Related Purchase Sales Induced Product News Stage Two Information Search Consumer receptivity is influenced by: ▪ Get & choose information ▪ Organize & prioritize it ▪ Make sense of the world Stage Three Evaluating Evaluating Criteria: 1) Objective Alternatives 2) Subjective Objective Subjective Price/Total Cost Value for Price Availability (Retailers) Attitudes How it's Made? Brand Users Warranty Usage Occasion Media Used Brand Imagery Product Alternatives Level of Involvement Consumer Purchase Decision Making  Stage Five Post Purchase LEARNING DISSATISFACTION SATISFACTION COGNITIVE DISSONANCE REPURCHASE INTENT LOST CUSTOMER LOYAL CUSTOMER Describe the adoption and diffusion process for new products  The Buyer Decision Process for New Products The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Stages in the adoption process include: ▪ Awareness ▪ Interest ▪ Evaluation ▪ Trial ▪ Adoption  ▪ Innovators Individual Differences in ▪ Early Adopters ▪ Early Mainstream Innovativeness ▪ Late Mainstream ▪ Lagging Adopters Adopter Categories Based on Relative Time of Adoption of Innovations  Analyzing and Using Marketing Information Influence of Product Characteristics on Rate of Adoption ▪ Relative advantage (to other products) ▪ Compatibility (with potential consumers) ▪ Complexity (difficult to understand or use) ▪ Divisibility (may be tried on a limited basis) ▪ Communicability (results of innovation can be observed or described)  IMPORTANT Midterm – Week 7 (next week!)- in class lecture time No lecture week 8 (in lieu of session on Sat) – tutorials continue as usual Midterm ALL Material covered in class including week 6 Chapters for support MCQs – 30 questions Bring Laptops/Chargers – In class via Moodle ONLY – NO phones