MKT 300 1nd Edition Lecture 8 Outline of Last Lecture XII Chapter 4 Terms part 2 XIII Chapter 4 Concepts to Apply part 2 Outline of Current Lecture XIV Chapter 5 Terms part 1 XV Chapter 5 Concepts to Apply part 1 Current Lecture Chapter 5 Terms part 1 Economic buyers People who know all the facts and logically compare choice to get the greatest satisfaction from spending their time and money Economic needs Concerned with making the best use of a consumer s time and money Some include economy of purchase or use efficiency in operation or use dependability in use improvement of earnings and convenience Discretionary income What is left of income after paying taxes and paying for necessities Elusive because necessities varies from family to family Luxuries Needs Basic forces that motivate a person to do something More basic than wants Wants Are needs that are learned during a person s life Need water want Clearly Canadian s raspberry flavored sparkling Drive A strong stimulus that encourages action to reduce a need Internal reasons behind certain behavior patterns Product purchases result from a drive to satisfy some need Physiological needs Biological needs food liquid rest sex Safety needs Protection and physical well being physical well being financial security medicine and exercise 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 Charmin Toilet Paper campaign Social needs Love friendship status and esteem thing that invoke a person s interaction with others Coca cola campaign push button Personal needs Individual s need for personal satisfaction unrelated to what others think or do Accomplishment fun freedom and relaxation Make the world a better place Conagra foods developed start making choices survey Perception Determines what consumers see and feel How we gather and interpret information from the world around us Apply the three Selective exposure Our eyes and minds seek out and notice only information that interests us Selective perception We screen out or modify ideas messages and information that conflict with previously learned attitudes and beliefs Selective retention We remember only what we want to remember Learning Determines what response is likely Change in a person s thought processes caused by prior experience Cues Products signs ads and other stimuli in the environment Response An effort to satisfy a drive Depends on the cues and the person s past experience Reinforcement When response is followed by satisfaction aka reduction in the drive strengthens relationship between cue and response and could lead to similar response next time Chapter 5 Concepts to Apply part 1 Why is the difference between discretionary and disposable income important to marketers After disposable money left to be spent on bills like electric etc after that s paid for is discretionary so that is the luxuries which marketers would focus on What is the difference between a need and want and a drive Why are needs that fall higher on the PSSP more powerful A need is a basic force that motivates a person want is a learned need so need water but want raspberry sparkling water a drive is a stimulus that encourages actions and are internal they are the reasons behind behavior patterns More powerful on top because they are the personal needs its for personal satisfaction and unrelated to what others think or do Explain why it is difficult to get your target to notice and remember your message Why won t simply out shouting your competition be effective Because of perception it determines what consumers see and feel we apply selective process exposure perception and retention and this explains why we simply don t comprehend certain ads What are the advantages and disadvantages to selective perception Exposure only take in what we want to Perception we fit things to prior beliefs and attitudes Retention only remember what we want to remember Advantage we don t take in offensive messages and are not bothered with ads everyday Disadvantage only process ads when we need something hurts marketers because spend all this money and for what What is the difference between a cue and drive and a response What role does reinforcement play in learning Cue is a product sign ad that makes a person respond which is an effort to satisfy a drive response depends on cue if response is followed by satisfaction then it is reinforcement strengthens relationship between cue and response and it could lead to similar response next time Drive cue Response