Session 9 MG 220 BBA - 6 Sep 10
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Transcript of Session 9 MG 220 BBA - 6 Sep 10
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MG 220 Marketing ManagementBBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. [email protected]
Access it online: www.slideshare.net/talhasalam
Part 3: Connecting with Customers
> What influences Consumer Behavior> Key Psychological Processes> Apple Ads> Quiz 2 (Part 2: Session 4 - 7)
Class Presentation | Session 9 | 6 Sep 2010
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What Influences Consumer Behavior• Understanding the Theory and Realities of
Consumer Behavior
• A key part of Marketing
• Consumer’s buying behavior is influenced by:– Cultural Factors– Social Factors– Personal Factors
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What Influences Consumer BehaviorCultural Factors• Culture, Subculture & Social Class: 3 important
variables
• Culture is fundamental determinant of a person’s wants and behavior
• Set of values, perceptions, preferences, and behaviors through his or her family or other institutions
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What Influences Consumer BehaviorCultural Factors• Each Culture has smaller Subcultures giving
more specific identification and socialization
• Significantly affluent Subcultures => considering marketing accordingly i.e. multicultural marketing
• Multilingual services by Telenor, Mobilink
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What Influences Consumer BehaviorCultural Factors• Social Stratification – strata(s) in society
• Social Classes – relatively homogenous and enduring divisions in each society, which are hierarchically organized and whose members share similar values, interests and behavior
• Characteristics:– Tend to behave similarly– Defines position in society– Defined by many variables together (no one variable to
define it)– Individuals move up or down in classes
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What Influences Consumer BehaviorSocial Factors• Reference Groups consist of all groups that have a direct (face-to-
face) or indirect influence on his/her attitudes or behavior
– Primary Groups – more interactivity, informal (Family, friends)– Secondary Groups – Less interactivity, formal (religious, political)
• Important Groups to which people do not belong– Aspirational Group – A person hopes to join– Dissociative Group – Whose value a person rejects
• Opinion leader - A person in informal, prodcut-related communications who offers advice or information about specific product or product category
• Family Planning Campaign and “Masjid ke Maulvi sb”
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What Influences Consumer BehaviorSocial Factors• Family – Most important Consumer buying organization in the
society. Most influential primary reference group
• Marketers are interested in roles and relative influence of family members in purchasing behavior
• Can directly impact a sales
• Family eating out:– Father (Chinese – Tai Wah)– Mother (Healthy – Subway)– Grandparents (Continental – Village)and the winner is:– BACHAY: Hum ne Pizza Hut jana hai!!!
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What Influences Consumer BehaviorSocial Factors• There can be different roles for a person in
different settings
• Role: Activities a person is expected to perform
• Status: carried by every role
• Understanding of Roles and Status is important for understanding buying behaviors
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What Influences Consumer BehaviorPersonal Factors• Different personal factors:– Age and stage in life cycle– Occupation and economic circumstances– Personality and self-concept– Lifestyle and Values
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What Influences Consumer BehaviorPersonal Factors• Age and Stage in Life Cycle– Preferences and consumer behaviors change
with age– Important considerations include:
• Family Life Cycle – As it grows in years and numbers• Psychological Life Cycle – As a person grows• Critical Life Events – Births, marriage, relocation
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What Influences Consumer BehaviorPersonal Factors• Occupation and Economic
Circumstances– Occupation also impacts buying behaviors
Engineers, IT will be more inclined towards latest gadgets
– Economic Considerations• Spendable income• Savings and Assets• Debts and Borrowing Power• Attitude towards spending and saving
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What Influences Consumer BehaviorPersonal Factors• Personality and Self-Concept
– Personality – Set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli
– Very useful in analyzing consumer brand choices
– Brand Personality – Specific mix of human traits that may be attributed to a particular brand
– Strong relation in choosing brand’s consistent with either:• Actual self-concept• Ideal self-concept
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What Influences Consumer BehaviorPersonal Factors• Lifestyle and Values
– Lifestyle – Person’s pattern of living in the world as expressed in activities, interests and opinions
– Lifestyles partly shaped by:• Time-constrained• Money-constrained
– Core Values: They are the belief systems that underlie consumer attitudes and behaviors and strongly influence consumer behavior
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Key Psychological Processes
• Key Psychological Processes influencing consumer responses:– Motivation– Perception– Learning– Memory
• Stimulus-response model
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Key Psychological ProcessesMotivation• Needs & Motives
– Needs• Can be biogenic (hunger, thirst etc)• Can be Psychogenic (need for self-recognition, self-
esteem)– Motive
• Need with a sufficient intensity pressing a person to “act”
• Theories of Human Motivation:– Freud– Maslow– Herzberg
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Key Psychological ProcessesMotivation
• Theories of Human Motivation:– Freud• Psych. Forces are largely unconscious• A person cannot fully understand his/her
own motivations• Marketers try to understand what all
“motives” a product can satisfy• Volvo only for safety or a status symbol
(too)?
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Key Psychological ProcessesMotivation
• Theories of Human Motivation (contd…):–Maslow• Human needs are arranged
in heirarchy• Most to Least pressing• Marketers try to understand
how their product fitin a person’s life and goals
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MG 220 Marketing Management 18Access it online: www.slideshare.net/talhasalam
Key Psychological ProcessesMotivation
• Theories of Human Motivation:– Herzberg• Satisfiers and Dissatisfiers• Absence of Dissatisfiers + Presence of
Satisfiers is required for motivation to buy• The new Nokia set does NOT have reception
issues + it HAS a good camera too....motivating enough to be bought.
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Key Psychological ProcessesPerception• How a “motivated” person actually acts depends on:
Perception - the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world
• In Marketing, Perception is more important than the reality.• Perception actually affects consumers’ behaviors
• Three key perceptual processes– Selective Attention (people “selectively attend” to messages)– Selective Distortion (“distort” information about a brand as “I” think it is)– Selective Retention (remember good points about products we like rather good
points of all products)
– Subliminal Perception (controlling the subconscious of consumer by subliminal messages – not proven)
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Key Psychological ProcessesLearning• Learning – Changes in an individual’s behavior arising from experience
• Most human behavior is “learned”
• Learning is produced from interplay of:– Drive – strong internal stimulus impelling action– Cues – Minor stimuli determining when, where and how a person respond– Responses – result of Drive and cues– Reinforcement – based on experience, response may be reinforced
• Tendency to “generalize”Nestle MilkPak is good, all dairy products are good by Nestle
• Discrimination – a person has learned to recognize differences in sets of similar stimuli and can adjust responses accordingly
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Key Psychological ProcessesMemory• STM – temporary repository of information• LTM – more permanent repository of information
• Associative Network Memory model vis-à-vis consumer brand knowledge => consumer brand knowledge might consist as a brand node in consumer’s mind with a variety of association
• Brand associations consists of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs etc….
• Marketers need to ensure right experiences are created for their brand so it stays “rightly” in memory
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Key Psychological ProcessesMemory• Two important Memory processes:
1. Encoding2. Retrieval
1. Memory Processes: Encoding– How and where information gets into memory
– More attention placed on information => stronger the resulting association in memory will be
– Existing brand associations also impact encoding process for newly formed association
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Key Psychological ProcessesMemory
2. Memory Processes: Retrieval– How information comes out of memory– Key factors affecting the process:• Presence of other product information• Delay from exposure to info at encoding• Information may be available but may
require “retrieval cues or reminders” to be retrieved
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MG 220 Marketing Management 24Access it online: www.slideshare.net/talhasalam
APPLE!
• Apple’s advertising
• Related to today’s session……
• Campaign # 1: “Think Different”• Campaign # 2: “I am a Mac and I
am a PC”
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APPLE
• Apple’s advertising
• Result of Campaign # 1:Our brand is the most - or at least one of the most - valuable things we have going for us now and the company's future in general. It "only took 15 . . . 30 . . . maybe 60 seconds" to reestablish Apple's counter-culture image that it had lost during the 90s.
- Steve Jobs (after launch of campaign and seeing its results)
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QUIZ # 2
• Related to Part 2
• Max Time: 20 Mins
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MG 220 Marketing ManagementBBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. [email protected]
Access it online: www.slideshare.net/talhasalam
Part 3: Connecting with Customers
> The Buying Decision Process: The Five-stage Model
> What is Organizational Buying?> Participants in the Business Buying
Process> Stages in the Buying Process> Institutional and Government Markets
Class Presentation | Session 10 | 8 Sep 2010