Professor S.J. Grant Spring 2007 Overview: Marketing and Consumers BUYER BEHAVIOR, MARKETING 3250.
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Transcript of Professor S.J. Grant Spring 2007 Overview: Marketing and Consumers BUYER BEHAVIOR, MARKETING 3250.
Professor S.J. Grant
Spring 2007
Overview: Marketing and Consumers
BUYER BEHAVIOR, MARKETING 3250
Outline
What is strategy? Strategy starts with analysis
• 3 C’s• SWOT
What is consumer behavior? How does consumer behavior impact
marketing?• STP • 4P’s
Marketing Strategy
What is the goal of strategy?To develop and maintain strategic fit
between the company’s abilities and changing market opportunities
• Strategy positions the firm to optimize • Strategy must consider alignments of
internal, external factors• Internal: company • External: competitors, consumers
Marketing Management
MarketOpportunity
Consumers
Competition
Company
SWOT Analysis
Basic approach starts with evaluatingInternally
• Strengths• Weaknesses
Externally• Opportunities• Threats
What is Consumer Behavior?
Consumer’s Culture
Consumer Behavior Outcomes
Process of Making Decisions
Psychological Core
What Affects Consumer Behavior?
Psychological Core
Having motivation, ability, and opportunity
Exposure, attention, and perception Categorizing and comprehending
information Forming and changing attitudes Forming and retrieving memories
What Affects Consumer Behavior?
Process of Making Decisions
Psychological Core
Problem recognition and search for information
Making judgments and decisions
Making post-decision evaluations
What Affects Consumer Behavior?
Consumer’s Culture
Process of Making Decisions
Psychological Core External processes:
• Regional and ethnic influences
• Age, gender, and household influences
• Reference groups
What Affects Consumer Behavior?
Consumer’s Culture
Consumer Behavior Outcomes
Process of Making Decisions
Psychological Core Consumer behaviors
can symbolize who we are
Consumer behaviors can diffuse within a market
What Affects Consumer Behavior?
Developing a customer-oriented strategy starts with a segmentation schemeWhat is known about the market?How is the market segmented?
• Different types of consumers• Different needs
• Perception of value• Willingness to pay
Implications: Segmentation
Choose a targetHow profitable is each segment?What are the characteristics of
consumers in each segment?Are customers satisfied with existing
offerings?
Implications: Targeting
PositioningHow are competitive offerings positioned?How should our offerings be positioned?Should our offerings be repositioned?
Implications: Positioning
Developing products or servicesWhat are consumers’ ideas for new
products?What attributes can be added to or
changed in an existing offering?What about guarantees? Post-purchase
service? Repeat-buying opportunitiesAny consumer trends that can inspire
development?
Implications: Product
Making promotion decisions Sales promotion objectives and tactics (push)
• When should sales promotions happen?• Have our sales promotions been effective?• How many salespeople are needed to serve
customers?• How can salespeople best serve customers?
Advertising (pull)• What should our advertising look like? • Where should advertising be placed?• When should we advertise?• Has our advertising been effective?
Implications: Promotion
Making pricing decisionsWhat price should be charged?How sensitive are consumers to price and
price changes?• What is price elasticity?
When should certain price tactics be used?How do price changes affect the firm?
Implications: Price
Making distribution decisionsWhere are target consumers
likely to shop?How should stores be
designed?
Implications: Place
Perception, Memory & Learning
Professor S.J. Grant
Spring 2007
BUYER BEHAVIOR, MARKETING 3250
Perception A model of memory
What are the types of memory?Organization of memoryHow memory works
• Storage• Retrieval
Learning
Outline
Hemispheric lateralization
Perception
When do we perceive stimuli?Absolute and differential
thresholds• Just noticeable difference• Weber’s law
Selective – cocktail party Subliminal perception
• Does subliminal perception affect consumer behavior?
Perception
Perception
Does subliminal messaging make people buy? 1956 N.J. movie theater flashed
subliminal messages, “Hungry? Eat popcorn. Drink Coca-Cola.”
• Increased popcorn sales 58% and Coca-Cola sales 18%, but results were not replicated
Erotic stimuli and sexual symbols in ads purported to increase receptivity to suggestions in the ad
A Model of Memory
Perceived information is encodedExplicitImplicit
Then stored in memoryShort-term storeLong-term store
Retrieval involves calling up stored bits from memory
A Model of Memory
StimulusShort-Term
Memory
Long-TermMemory
RetrievalConsolidation
Recall
A Model of Memory
Sensory Short-term Long-term
SensoryEchoicIconicCharacteristics of sensory
memory
A Model of Memory
Short-term memory (STM)Imagery processingDiscursive processingCharacteristics of short-term
memory• Short-term memory is limited (7±2)• Short-term memory is short-lived
A Model of Memory
Long-term memory (LTM)Autobiographical (episodic) memorySemantic memoryCharacteristics of long-term memory
• Stable memory of events of more distant past• Unlimited capacity• Organized by nodes
A Model of Memory
A Model of Memory
Converting short-term memories to long-term store is physically located in the hippocampus
Elaboration, or rehearsal, of information increases consolidation
Recall from long-term storage is a function of recency and availability Availability is aided if memory is organized into
a well-defined associative network of nodes• Categories• Hierarchies
A Model of Memory
Beverages
Carbonated Non-carbonated
MixersColas Juices Water
Pepsi Coke EvianPolandSpring
A Semantic (or Associative) Network
Chunking Rehearsal Recirculation Elaboration
Y=mx+bY=mx+bY=mx+bY=mx+b
How Memory Is Enhanced
Semantic network Trace strength
• Accessibility Spreading of activation
• Priming Retrieval failures
• Decay• Interference• Primacy and recency effects
Retrieval errors
What Is Retrieval?
Explicit memoryRecognitionRecallJudgments
Implicit memoryJudgments
What Are the Types of Retrieval?
Retrieval
Perceptual• “His name started with a ‘J’ . . .”
Conceptual• “A brand of personal computers that
competes with IBM . . .”
Characteristics of the stimulusSaliencePrototypicalityRedundant cuesThe medium in which the
stimulus is processed
How Retrieval Is Enhanced
What the stimulus is linked toRetrieval cuesWhere do retrieval cues come from?The brand name as a retrieval cueOther retrieval cuesConsumer implications
• Consideration set
How Retrieval Is Enhanced
How a stimulus is processed in short-term memoryDual coding
Consumer characteristics affecting retrievalNetwork of associationsExpertise Mood
How Retrieval Is Enhanced
Exposure
Attention
Interpretation
Memory
Information Processing Selective
ExposureRandom Deliberate
AttentionLow- High-
involvement involvement
InterpretationLow- High-
involvement involvement
Short-term Memory Long-term
Active problem Stored experiences, solving values, decisions,
rules, feelings
Purchase and consumption decisions
Pe
rce
pti
on
A Model of Learning