MKTG 409 1nd EditionExam # 2 Study Guide Lectures: 8 -13Lecture 8 (February 11) -Discussion of Super Bowl Ads39 Million will host a party for super bowl and 62 million will attend a party71% Will watch the super bowl adsHow many pounds of avocados were sold? Who knows, there are many different numbersAn Average people will eat 1,200 calories eachCost of a 30 second spot -> 4 Million. However, the cost per viewer is average at 35$ per 1000 viewerTop tweeted ad -> Budweiser commercialLecture 9 (February 13) - Chapter 7: Buying BehaviorBuying Behavior: The decision process and actions of people involved in buying and using products; A Consumer buys a product for personal or household useInvolvement: 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 riskConsumer 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 checkoutConsumer 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 consumersSituational Influences on Buying Process- Physical surroundings- Social surroundings- Mood- purchase reason- timePsychological Influences on Buying Process- Motive: Internal force that directs a person’s behavior toward satisfying needs or achieving goalso Patronage Motives: Influence where a person purchases products on a regular basiso 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 Exposureo Selective Distortiono Selective retention- Attitude: Enduring evaluation of feelings about and tendencies toward an object or idea- Personality- Traits and behavioral tendencies that result in consistent patternsSocial 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 CainAt 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. Tothis 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 12Product: 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 satisfactionClassification 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 solvingClassification 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 productProduct Line: a number of similar productsProduct Mix: All product lines- Depth of product mix: The number of items in the product lines- Width of product mix: The amount of product linesProduct 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 outNote: 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:Stars Question MarkCash Cow DogsLow Market Share HighProduct Adoption Process:1.Awareness2.Interest3.Evaluation4.Trial5.AdoptionAdopter