MKT 300 1nd Edition Lecture 8Outline 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 LectureChapter 5 Terms (part 1)• Economic buyersPeople who know all the facts and logically compare choice to get the greatest satisfaction from spending their time and money• Economic needsConcerned with making the best use of a consumer’s time and moneySome include: economy of purchase or use, efficiency in operation or use,dependability in use, improvement of earnings and convenience • Discretionary incomeWhat is left of income after paying taxes and paying for necessitiesElusive because “necessities” varies from family to family Luxuries • NeedsBasic forces that motivate a person to do something More basic than wants • WantsAre “needs” that are learned during a person’s lifeNeed water want Clearly Canadian’s raspberry flavored sparkling • DriveA 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 needsBiological needs-food liquid rest sex• Safety needsProtection 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 needsLove, friendship, status, and esteem thing that invoke a person’s interaction with others Coca cola campaign push button • Personal needsIndividual’s need for personal satisfaction-unrelated to what others think ordo Accomplishment, fun freedom, and relaxation Make the world a better place Conagra foods developed “start making choices” survey • PerceptionDetermines what consumers see and feelHow 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 perceptionWe screen out or modify ideas, messages and information that conflict with previously learned attitudes and beliefs • Selective retentionWe remember only what we want to remember • LearningDetermines what response is likelyChange in a person’s thought processes caused by prior experience • CuesProducts, signs, ads and other stimuli in the environment • ResponseAn effort to satisfy a drive Depends on the cues and the person’s past experience • ReinforcementWhen 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 thatencourages actions and are internal they are the reasons behind behavior patternsMore 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 toPerception: we fit things to prior beliefs and attitudesRetention: only remember what we want to remember Advantage: we don’t take in offensive messages and are not bothered with ads everydayDisadvantage: 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 tosatisfy 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 