Activities directly involved in obtaining consuming and disposing of products and services also the decision process which lead to the action Marketing Final Study Guide Notes Wednesday April 22 2015 3 29 PM Buying Behavior Consumer Behavior Key Goals for Marketers Selling more Selling responsibly Impact on other partners Short vs long term affects Types of consumers Direct Indirect Internal Consumer vs Shopper B2B B2C Business Customers Types Industrial Resellers Gov Non Profit Characteristics 1 2 3 4 1 2 3 4 5 6 1 2 3 1 2 3 4 More involvement Extended decisions making Long term relationship Price may not be the most important factor Step 1 Need Recognition Between actual and desired needs Marketing Final Page 1 Maslow Hierarchy of needs Step 2 Information Search 1 Personal Sources Friends family and etc Most effective source of information 2 Commercial Sources Advertisements sales personnel Most information is achieved this way a b a b a b c a b 3 Public Sources a Mass media 4 Experiential Sources 5 Internet Using the product Looking at the product Handling the product Google Feedback and reviews Step 3 Evaluation of Alternatives Do consumers chose products rationally or systematically For example a product with 2 different lines Product 1 500 Product 2 750 Product 3 1000 Fishbein model compensatory rule Non compensatory rule When consumers only pick one familiar brand regardless of other Better brands out there Other influence factors 1 Involvement a Going to NEU so NEU apparel 2 3 Significant Difference between brands Few differences between brands External influences Marketing Final Page 2 External influences 1 2 3 4 5 Family Social Status Culture Marketing activities Social influences a b c Online feedback Reviews Social media Internal Influences 1 Perception a What people would think of you i Selective exposure 1 Only notice information that interest you ii Selective perception iii Selective retention iv Attitude v Personality Lifestyle 1 Screen out or modify ideas messages or etc that conflicts with previously learned ideas or beliefs 1 Only remember what you want to remember 1 Tendency to respond postively or negative toward a certain ideal product person or etc Social movement that attempts to protect consumers from harmful business practices Consumerism Environmentalism Seeks conservation and improvement of the natural environment Green Marketing Kyoto protocol Environmental stewardship Post Purchase Decision Was it a good purchase Rating of the product Does the company need to change the product or modify Does it ruin the company reputation or increase Etc The Market Profile 1 Segmentation a Dividing customers into manageable groups or customer segments i Possible Segmentation Dimensions 1 2 3 4 Demographic age gender education socio economic status Geographic region area country city Psychographic lifestyle activities interest opinion value and beliefs Behavioral based usage rate loyalty status profitability 2 Targeting a Single Target Market Approach i Select one homogeneous segment b Multiple Target Market Select two or more target segments A different marketing mix for each segment c Combined Target Market Combine submarkets into a single target market One marketing mix for the combined target 3 Positioning a Attribute positioning Marketing a characteristic or feature b Benefit positioning Market consumer benefit of the product c Use or application positioning Marketing the use of the product i ii i ii i i i 1 Example Dunkin Donut coffee to wake u up or keep you warm in winter d User positioning Marketing Final Page 3 Perceptual mapping is a diagrammatic technique used by assetmarketers that attempts to visually display the perceptions of customers or potential customers Typically the position of aproduct product line brand or company is displayed relative to their competition d User positioning e Competitor positioning Marketing to the typical user of the product or services Marketing to the consumer by comparing to its competitors f Quality or price positioning Product placement due to its quality or specific price i i i The Product Creating and Managing Products Services and Brands Product Classes 1 Consumer Products Convenience Shopping Unsought Specialty a b c d 2 Business Products a b c Non Durable short term Durable Long term Service Me Too Product has no contribution to the firms infrastructure dimensions of growth and synergy Why Develop New Products Replace and improve old products New market demands Increasing competition Prestige to represent Products that are aimed to fail exploration 95 of new products fail Why do products fail Inadequate market analysis Competitive strength Insufficient effort High Costs Lack of market knowledge Internal conflicts and etc Phases in New Product Development 1 2 3 4 5 6 7 Idea Generation Product Concept Development Marketing Strategy Development Business Analysis Technical Development Test Marketing Commercialization The Product Life Cycle 1 Market Introduction A product takes a long period of time before it takes off for many reasons Marketing Final Page 4 Can extend a product s life cycle by coming out with more editions and upgrades and etc Branding The use of a name term symbol or design or a combination to identity a product 1 2 3 4 Market Introduction Market Growth Market Maturity Sales Decline What do you need to brand Easy to label and identify Best value for price Dependable widespread availability Favorable shelf display space Market price can be high Economies of scale Five Levels of Brand Familiarity Brand Insistence Brand Preference Brand Recognition Brand Non Recognition Brand Rejection Type of brand Individual brand Family brand Licensed brand Private Brands Labels 1 2 3 4 5 6 1 2 3 4 5 1 2 3 Importance of Packaging Adds value in terms of Protection of the product Promotion purposes Product information Branding the product Enhance the product Environment Convenience in use Added product functions Services dominate the Market Brands created by middlemen Booming business Consumer benefit from the battle Often positioned as lower cost alternative to regional national and international brands Provocative Brands Example AXE Women like the products more than men do The border between products and services are fading away Characteristics of Services Intangible Inseparable from consumption Marketing Final Page 5 Inseparable from consumption Variable varies from all different service providers Perishable 4 5 or