PowerPoint PresentationSlide 2ObjectivesThe relationship of Marketing to AdvertisingThe Relationship of Marketing to AdvertisingCustomer Needs and Product UtilityExchanges, Perception, and SatisfactionSlide 8Slide 9Slide 10Exchanges, perception, and satisfactionSlide 12Key Participants in the Marketing ProcessSlide 14Slide 15Consumer Behavior: The Key to Advertising StrategyThe Consumer Decision Process: An OverviewSlide 18Slide 19The Consumer Perception ProcessTheories of LearningPersuasion: Elaboration Likelihood Model (ELM)Elaboration Likelihood ModelLearningSlide 25Consumer Motivation ProcessMaslow’s Heirarchy of NeedsMotivesInterpersonal influencesNonpersonal influencesPurchase Decision and Postpurchase EvaluationSlide 32Slide 33Slide 34Slide 35© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinChapter5Marketing and Consumer Behavior: The Foundations of AdvertisingInsert Range Rover adHere(p. 143)The importance of the marketing process in business and the role of advertising and other communications toolsObjectivesDefine marketingExplain the role ads play in marketingDiscuss product utility and its relation to consumer needsExplain the relationship of utility and needsIdentify key participants in marketingOutline the consumer perception processExplain why “perception is everything”Describe the fundamental motives behind purchasesDiscuss influences on consumer behaviorExplain cognitive dissonanceThe relationship of Marketing to AdvertisingMarketingCreate exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizationsThe Relationship of Marketing to AdvertisingConception Pricing Promotion DistributionAdvertisingMarketingCustomer Needs and Product UtilityUtilityThe product’s ability to satisfy both functional needs and symbolic (psychological) wantsExchangesperception, satisfactionExchanges, Perception, and SatisfactionAny transaction in which the a person or organization trades something of value with someone elseMarketing facilitates exchanges by:ExchangesExchangesperception, satisfactionExchanges, Perception, and SatisfactionDeveloping goods and servicesPricing them affordablyDistributing themInforming us about themMarketing facilitates exchanges by:ExchangesExchangesperception, satisfactionExchanges, Perception, and Satisfaction. . . is everything!PerceptionSeller provided information can help buyers to perceive a purchase is an equal-value exchangeExchangesperception, satisfactionExchanges, Perception, and SatisfactionThe customer’s perception of the product or serviceThe seller’s perception of the customer’s needs, wants, and objectivesMarketing is concerned with two perceptions:PerceptionExchangesperception, satisfactionExchanges, perception, and satisfactionMust occur every time a product is usedSatisfactionLeads to more exchangesExchangesperception, satisfactionExchanges, perception, and satisfactionBy reminding consumers why they bought the productBy helping them defend the purchase to othersAdvertising reinforces satisfactionBy enabling them to convince other prospects to buySatisfactionKey Participants in the Marketing ProcessCustomersCenters ofInfluenceProspectiveCustomersCurrent customersGlobalMarketsRe-sellerIndustrialConsumermarketsKey Participants in the Marketing ProcessBusinessMarketsGovernmentMarketsCustomers MarketsGlobalMarketsConsumermarketsKey Participants in the Marketing ProcessBusinessMarketsGovernmentMarketsMarketsMarketersCustomersConsumer Behavior: The Key to Advertising StrategyConsumer BehaviorMental and emotional processes and activities of people who produce goods and services to satisfy needs and wantsCultureSocietyFamilyLearning and persuasionPerceptionMotivationThe Consumer Decision Process: An OverviewPersonal ProcessesInterpersonalInfluencesNonpersonalInfluencesPlaceEnvironmentTimeThe Consumer Decision Process: An OverviewPersonal ProcessesInterpersonalInfluencesNonpersonalInfluencesNeedsWantsInterpersonalInfluencesThe Consumer Decision Process: An OverviewPersonal ProcessesNonpersonalInfluencesSteps in the decision process1. Problem recognition2. Information search3. Evaluation and selection4. Store choice and purchase5. Postpurchase behaviorThe Consumer Perception ProcessAd/commercialPromotionNews itemProduct/storePrice tagConversionPhysical data (stimuli)SightHearingTouchTasteSmellPhysiological screens (sensory)PersonalitySelf-conceptAttitudesBeliefsHabitsPsychological screens (emotional)AwarenessNon-awareness•Information•Needs•WantsMental files (memory)FeedbackLearningTheories of LearningCognitive Theory Conditioning Theory Mental process of memory, thinking, problem solvingTrial-and-error processRelevant to how we learn from others and evaluate complex purchasesRelevant to basic, simple, everyday purchasesPersuasion: Elaboration Likelihood Model (ELM)Exposure to the persuasive communication (AD)Is involvement with the product or message high?AttentionFocus on “central”Product-related informationComprehensionDeeper thoughts about product attributes and consequencesMore elaborationPersuasionProduct beliefsBrand attitudePurchase intentionIF YESCentral Route ProcessingElaboration Likelihood ModelAttentionFocus on “peripheral”nonproduct informationComprehension•Shallow thoughts about nonproduct information•Low elaborationPersuasion•Nonproduct beliefs•Attitude toward ad•Brand attitude•Purchase intentionExposure to the persuasive communication (AD)Is involvement with the product or message high?IF NOPeripheral Route ProcessingLearningLearningProduces attitudeProduces brandinterestLeads to habitLeads to brand loyaltyDefines needsand wantsLearningConsumer Motivation ProcessMotivationUnderlying force that contributes to our purchasing actions. Stems from . . .Needs WantsSelf-actualizationMaslow’s Heirarchy of NeedsEsteemBreakfast cerealTiresPendantGolf lessonsSocialSafetyPhysiologicalLuxury carSocialapprovalProblem removalProblem avoidanceNegatively orientedmotivesSensorygratificationIntellectualstimulationPositively orientedmotivesInformational MotivesTransformational MotivesMotivesOpinionLeadersReferenceGroupsSocialClassesSocietyFamilyInterpersonal influencesInterpersonalInfluencesEnvironmentPlaceTimeNonpersonal influencesNonpersonalInfluencesPurchase Decision and Postpurchase EvaluationMeet Chris!She is thinking about buying a CD playerPurchase Decision and Postpurchase EvaluationChris considers an evoked