Chapter 10/11 Begins

Finished up chapter 9 and begin his combined lecture of chapters 10 & 11

**Don't forget to do the Homework Assignment 4 due Thursday**

Chapter 9 begins

Finished Chapter 8 & went over most of chapter 9

Class Lecture

Went over chapter 8

Segmenting
Targeting
Positioning

Test Today

Finish Ch 6

About the Exam (this coming Thursday)

50 questions all multiple choice 

small scantron and pencil

[ Went over tweets ]

[ Continued Ch 6 PPT ]

What factors influence our buying decisions??

Social Factors

Culture Factors

Individual Factors

Psychological Factors

1. Social Influences

Reference Groups - those around us that influence what we do (i.e. good friends)

Opinion Leaders - (experts) people we know that have knowledge about that product category (everyone comes to Kyle for the computer problems..I am the opinion leader in Lafayette..)

Family Members - things we see growing up can influence what we purchase down the road

>> Relationships among purchases and consumers in the family

I.E. For a mother's birthday card, the children are the "purchase decision makers" for the customer the parent.

2. Individual Influences

Gender

Age/Life Cycle

Personality, Self-Concept, Lifestyle

3. Psychological Influences - the way we view things

- Perception

Selective Exposure - consumer notices certain stimuli and ignores others

Selective Distortion - consumer changes or distorts information that conflicts with feeling or belief. (you're only hearing part of what I say..like the telephone game)

Selective Retention - consumer remembers only that information that supports personal beliefs (what little we remember in class) [note; repetition can be damaging in media if over-exposed]

- Motivation

Learning

Experimental - an experience changes behavior

Conceptual - Not learned through direct experience

Beliefs & Attitudes

- Change beliefs about the brand's attributes

- Change the relative importance of these beliefs

- add new beliefs

"attitudes overtime create beliefs"

[ Did and Turned in -- In Class Assignment Sept 18 ] 

Ch 6: Consumer Behavior

TEST NEXT THURSDAY - SEPT 20TH
12 questions from each chapter
Study Guide is available on D2L


Went over Tweets
- Textbook Brokers - very helpful employees

- Retail.. even if they are not connected to our store..can impact our customers and what they think of our store..We don't have much control over them, so be careful! Such as the "sketchy Camel representative"


Understanding Consumer Behavior
Consumer Behavior
how consumers make purchase decisions
how consumers use and dispose of product


Consumer Decision-Making Process
The type of purchase can change the process.. if buying a pack of gum or buying a car.. steps may vary in that way.

1. Need Recognition
"hey we've got less than a 1/2 gal of milk..we need milk"

Recognition of Unfulfilled Wants
- When a product isn't performing properly
- When the consumer is running out of a product
- When another product seems better


"Maybe my knee will stop clicking when I walk" (if I get injectable cartilage)
"Hey okay, that might be interesting" 


We look for stuff that is worth my time, so we seek external confirmation.

"Sell for a need, rather than create a desire."a


2. Information Search

-- Internal Information Search
Recall information in memory

-- External Information search
Seek information in outside
environment
 + Non-marketing controlled
 + Marketing controlled


Some people spend more time, some spend less time when making a purchase.

3. Evaluation of Alternatives and Purchase
Analyse product attributes
Use cutoff criteria - people create attributes that are important to us.. If it doesn't have this feature/limitation then I'm not going to buy it. (at least 7 seating in the minivan)
Rank attribute by importance (note emotions are not always rankable..like in house buying)

Evoked set - the group you're going to consider (minivan or suv that is my set, so trucks, cars, and crossovers are out)

4. Purchase


5. Postpurchase Behavior
Use & Disposal


Consumers can reduce cognitive dissonance by:

 Seeking information that reinforces positive ideas about the purchase

 Avoiding information that contradicts the purchase decision

 Revoking the original decision by returning the product




Marketing can minimize through:
- Effective Communication
- Follow-up (find the problem people and help them..or else they hate us more everyday)
- Guarantees
- Warranties



Continuum of Consumer Buying Decisions

Low involvement is routine: Oh a pack of gum, BAM. Purchase done.



Marketing Implications of Involvement

High-involvement purchases require: >> Extensive and informative promotion to target market

Low-involvement purchases require: >> In-store promotion, eye-catching packaging design, and good displays. Coupons, cents-off 2-for-1 offers. In Your Face


==

Turned in Homework Assignment 2

Ch 3 & 4: The Marketing Environment and Ethics

** TYPE Homework Assignment for Thursday **

A week 1/2 from today we have a first exam (Sept 20)

50 multiple choice exam, use small scantron

Tweet about good GameStop experience

(not all is covered, so only read book sections that are covered on notes)

External Marketing Environment

These six factors play a role in trying to get to our target market.

The first one is

Social Factors

1 - Attitudes

2 - Values

3 - Lifestyles

"we all have different perceptions of values"

1. Attitudes Influence:

- Product purchased

- prices paid for products (because I like mini-vans, I'd pay more for one than you would)

- effectiveness of promotion (Coke fans see Pepsi commercials.. what do I do? I pull it apart)

- How, where, and when people purchase

Target marketing may be more effective if we target attitudes rather than 'Males under 25' demographics

2. Component Lifestyles

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.

We can market to these clusters of lifestyles if several clusters like our product, bam.

Economic Factors

- Distribution of Consumer Income

- Inflation

- Recession

Technological Factors

uMany firms use the market concept to guide research.  

uNew technology internally creates a long-term competitive advantage.

uExternal technology

uCreates more efficient operation or better products

uMay render existing products obsolete

UPC Codes..does Walmart count all those KoolAid flavors? nope. Technology such as UPC codes have changed the way we do (inventory,checkout) business.

Political and Legal Entities

- Federal Legislation

- Regulatory Agencies (ex. FCC, FTC, FDA)

- State Laws

- Local Legislations

Laws and Regulations Protect:

- New technology

- Society

- Businesses

- Consumers

(i'm not gonna ask you specific laws on the test)

the last of the six factors are

Competitive Factors

- How many competitors?

- How big are competitors?

- How interdependent is the industry?

Always changing, and no control (over competitive factors).

Think broadly about your competitors - don't limit/narrow yourself.

== ETHICAL BEHAVIOR IN BUSINESS ==

Ethics

The moral principles or values that generally govern the conduct of an individual.

Morals

The rules people develop as a result of cultural values and norms.

Most people of one culture have similar morals, but can have very different ethics.

Morals involve "good" and "bad" as well as "deviant"  behaviors.

Ethical Development Levels

Creating Ethical Guidelines

A Code of Ethics:

§Helps identify acceptable business practices

§Helps control behavior internally

§Avoids confusion in decision making

§Facilitates discussion about right and wrong

"You have to understand what's important to you"

Think about the impacts.

Pyramid of Corporate Social Responsibility

 

Arguments Against Social Responsibility

§Businesses should focus on making a profit and leave social and environmental concerns to nonprofits.

Milton Friedman argued that the free market, and not companies, should decide what is best for the world—socially responsible companies are using shareholders' money to further their own agendas.

Green Marketing

§The development and marketing of products designed to minimize negative effects on the environment or improve the environment.

–Environmentally aware customers pay more for products

–Companies must try to educate customers of environmental benefits

Did In-class Assignment