BUS M 300 1st Edition Lecture 2 Outline of Last Lecture I What is marketing II Elements influencing marketing III Tactical Marketing Marketing Mix IV Marketing V Anything can be marketed Outline of Current Lecture I Review Slide II Consumer Behavior a The Decision Process Current Lecture Review Slide o Be able to recognize different types of marketing person place idea etc o Selling concept vs manufacturing concept o Understand the marketing model o Know the marketing mix o What is CVC o What is a target market Consumer Behavior o How we behave when we buy products to satisfy needs and desires o It is what marketers live for o Decision process 5 steps The stages a buyer passes through in making choices about which products to buy More linear with more complex situations These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Step 1 Problem recognition Consumer sees a difference between her current state of affairs and some desired state of affairs Marketing can activate the problem state Step 2 Information Search A consumer searches for appropriate info to make a reasonable decision Search for info from different sources o Memory For low risk products Internal search o TV Commercials High involvement Risk involved Market dominated sources o Friends recommendations Personal sources o Public Sources Brochures and Trade Shows As risks become higher we do more searching Marketers want control in the second stage Involvement and Decision Making o Routine Decision making When consumer decision Low priced items making process is non linear o Limited Problem Solving Rely on friends o Extended Problem Solving Used on high risk items Consumers use all 5 stages of decision making here Higher risk higher involvement Step 3 Alternative Evaluation Represents both the objective attributes of a brand and the subjective attributes used to compare different products and brands Evoked Set brands actually considered during a choice process Evaluative criteria dimensions used Consideration set Group of brands that are considered Heuristics mental shortcuts to simplify decision Brand loyalty repeated purchasing based on a conscious decision to continue buying a specific brand Marketers want to know their customers evoked sets Allows consumers to compare products and make decisions based on their needs and wants Helps marketers understand their competitors and also create brand loyalty o Lower income more brand loyalty Step 4 Purchase Decision Two decisions must be made o What to buy o When to buy Hierarchy of needs are used here Motivates us to buy products and services VALS Psychological Segments lifestyles o Describes how consumers buy based on their lifestyles o Thinkers achievers and experiencers tend to be higher educated and are innovators o Believers strivers makers are less educated and less influential Survivors consumers who are minimalist o Ideals principal oriented in nature o Achievements status oriented in nature o Self experience action oriented in nature Situational influences on consumer decisions o Physical environment o Time o Antecedent a consumer s mood or amount of cash on hand Social Influences o Culture is the values beliefs customs and tastes valued by a group of people o Reference groups people that have a significant effect on an individual s evaluations aspirations or behavior o Sometimes people conform o Opinion leaders Risks o Performance risk o Financial risks o Physical risks o Social risks o Time loss risks