MKTG 409 1nd Edition Exam 2 Study Guide Lectures 8 13 Lecture 8 February 11 Discussion of Super Bowl Ads 39 Million will host a party for super bowl and 62 million will attend a party 71 Will watch the super bowl ads How many pounds of avocados were sold Who knows there are many different numbers An Average people will eat 1 200 calories each Cost of a 30 second spot 4 Million However the cost per viewer is average at 35 per 1000 viewer Top tweeted ad Budweiser commercial Lecture 9 February 13 Chapter 7 Buying Behavior Buying Behavior The decision process and actions of people involved in buying and using products A Consumer buys a product for personal or household use Involvement Degree of interest in or importance of a product Enduring Involvement Ongoing and long term Situational Involvement Temporary involvement due to a set of circumstances High Involvement Visible to overs Usually expensive and has a high social risk Low Involvement Less visible less expensive and low social risk Consumer buying behaviors Routinized Response Habit Limited Problem Solving If your preferred brand is gone you pick another Extended Problem Solving A bigger decision Impulse Buying Buying candy or a magazine that are by the checkout Consumer Buying Decision process Problem Recognition Buyer become aware of a difference between a desired state and actual condition Information Search Can be Internal Thinking or External Internet etc Evaluation of alternatives Products being considered are in the consideration set Evaluated by objective and subjective criteria Purchase Involves choosing the product seller negotiate terms then Post purchase evaluation A buyer can have doubts shortly after a purchase about whether the decision was the right one or not Called Cognitive Dissonance Note The process can be stopped at any time Collaborative Consumption Idea by Rachel Botsman that consumers are renting lending swapping bartering gift through technology 4 Drivers of this include A renewed belief in the importance of community A torrent of peer to peer social networks and real time technologies Pressing unresolved environment concerns A global recession that has fundamentally shocked consumers Situational Influences on Buying Process Physical surroundings Social surroundings Mood purchase reason time Psychological Influences on Buying Process Motive Internal force that directs a person s behavior toward satisfying needs or achieving goals o Patronage Motives Influence where a person purchases products on a regular basis o Maslow s Hierarchy of needs From bottom up Physiological needs safety needs social needs esteem needs and self actualization needs Learning Changes in thought process and behavior caused by information experience and behavioral consequences Lifestyle Individual pattern of living expressed through activates and options Three Step Perception Process o Selective Exposure o Selective Distortion o Selective retention Attitude Enduring evaluation of feelings about and tendencies toward an object or idea Personality Traits and behavioral tendencies that result in consistent patterns Social Influences on Buying Process Roles Actions that a person in a particular role is supposed to perform based on expectations of the individual Family Influences Individuals learn how to be a consumer from their family Consumer socialization Social classes a group of individuals with similar social rank Culture Accumulation of values knowledge beliefs customs objects and concepts of a society Lecture 10 February 18 HEB Guest Speaker Tracy Cain At HEB top executives make over 200 000 a year HEB focuses on the customer Each HEB is designed to meet the needs of each neighborhood To this they tailor their stores to each location An example A upscale neighborhood with a wealthy income would have a Central market instead of an HEB HEB also does a lot of product research such as brisket cockroach killers and beer Lecture 11 February 20 Chapter 11 Product Concepts and start Chapter 12 Product A good service or idea that is tangible or intangible It is made up of Core Product The fundamental utility of main benefit Addresses basic need of a consumer Supplemental features Provide added value or attributes in addition to core benefit Installation Delivery financing packaging Symbolic and experiential benefits Symbolic meaning Shopping experience benefits and satisfaction Classification of Consumer Products Convenience Products Cheap and frequently purchased Milk Usually a routinized response Unsought products Buy to solve a sudden problem or unanticipated need Doctor Shopping products A large amount of effort is put into planning and purchasing A car Involves limited Problem Solving Specialty Products Unique products that require a very large amount of effort A hobby Involves extended problem solving Classification of Business products Installations Major Equipment Usually not portable Not a part of final product Business Services MRO supplies Maintenance repair and operations Process Materials Used in production but not identifiable Like chemicals Component parts Complete Products that become a part of the final product Raw Materials Natural materials that become a part of the final product Accessory Equipment Helps do job better Like a calculator Not a part of final product Product Line a number of similar products Product Mix All product lines Depth of product mix The number of items in the product lines Width of product mix The amount of product lines Product Life Cycle Progression of a product through four stages Introduction Very high risk of failure 80 to 90 Focus on informing consumers Growth Encourage brand loyalty Compete aggressively Introduce many product variation Maturity Focus on finding new product uses and increase current use Generate cash flow Decline Eliminate products and plan and or phase out Note The growth stage is the peak of profits because in the maturity stage the industry must protect its product from competitors Costs money Product Portfolio Matrix High Market Growth Rate Stars Question Mark Cash Cow Dogs Low Low Market Share High Product Adoption Process 1 Awareness 2 Interest 3 Evaluation 4 Trial 5 Adoption Adopter Categories Innovators First to adopt new products Early adopters Early Majority Just prior to average person Late Marjory Skeptics who adopt only when it is necessary Laggards Adopt last Chapter 12 Developing and Managing Products Line Extension Creating new variants of a product