NOTES FROM 4 2 Consumer Buying process 1 Problem need Recognition Ex Need to replace old shoes 2 Informational Seeking Ex Search for stores styles prices opinions 3 Evaluation of Alternatives Which are comfortable 4 Purchase Decision Chose rationality or emotionality 5 Post purchase Evaluation Observe reaction of the consumer Categories of consumer Products 1 Convenience goods and services Consumed rapidly and regularly Inexpensive Purchase often and with little input of time and effort o Milk o Newspaper 2 Shopping goods and services Purchase less often More expensive Consumers may shop around and compare products based on style performance color o Television set o Tires o Car insurance 3 Specialty goods and services Purchased infrequently Expensive Costumers decides ona precise product and will not accept substitutions and spends a good Wedding dress man selling his ex wife dress for marines tickets and beer Product Life Cycle Series of the stages in a product s commercial Introduction stage making consumers aware of new product Growth Sell begin and profit Maturity Competition gets heavy in the peak of profit Decline you don t see the product any more DVD Branding Process of using symbols to communicate the qualities of a product made by a particular producer m m m Next Chapter Price skimming Setting an initially high price to cover new product cost and generate a profit o Breast feeding baby doll magic of motherhood Penetration Price Setting an initial low price to establish a new product in the market Dynamic pricing a variable o Ex Women in Dubai buys a car really cheap Price TacticsPrice Lining Setting a limiting number of prices for certain categories of products Everything a cheaper price Psychological Pricing Consumers do not always respond rationally to prices I deserve them Distribution Mix Combination How do you ship it o By truck low breakage less packing good for short distances o By railroad piggback multiple car on train going to dealership o Water slowest cheapest o Plane most expensive a quick get shrimp from the coast to N Dakota o Pipeline an affective by weather Promotion How does it communicate the information about the product they are selling Advertising Paid non profit How to advertise o Newspaper highest capital outlay flexible broad coverage main advantage most widely used o Radio Concert for an artist Eminem for Artist of the year o Direct Mail Mostly mailed to consumer s house o Magazine Highly segmented old Long lived Long lead time o Outdoor advertisement Inexpensive repeat exposure little competition o Advocacy Advertisement Ex Mothers Against Drunk Driving o Television most expensive Personal Selling One on one selling critical point is closing the deal o Order processing creative selling missionary Sales Promotions Short term promotional activity designed to encourage consumer buying industrial sales or cooperation for distributors o Coupons etc Public relations Company influenced information directed at building goodwill with the public British petroleum show employees cleaning up after the petroleum in the sea 04 03 2014 04 03 2014
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