Bus 367 Midterm 1

Naked Juice

* Don't want people to know it's owned by Pepsi * Changed their packaging to include a more visually appealing label * Included 3 key drivers in their sales: 100% juice, no sugar added, all natural

Repositioning McDonalds

* Had a bad rep - took initiative in better ingredients * added nutritional info to their website and on their packaging * they wanted customers to feel better about their food and trust their brand * tried to change the factors that affect consumers buying decisions

Oreo Case

* Size, flavor, and packaging vary by culture * "Twist, lick, dunk" --> America: parents to teach to kids, tradition. China: Kids teach to parents * Very adapted brand to different cultures and their needs * Size of packaging depends on areas grocery stores and consumers needs

Cultural values

* give rise to norms and associated sanctions, which in turn influence consumption patterns * cultures are not static, they typically evolve and change over time

Nike

*Gets athletes feedback to create feedback * has to appeal to different market * Celebrity endorsement * High awareness - "the swoosh" * Labor conditions: not good; had to work on PR * Brand Essence: innovations and active lifestyles * Everything is about sports EX: Michael Jordan wears Nikes, so if consumers wear Nikes, they feel closer to him, sparking the desire for them

DeWalt Positioning

-To the tradesman who uses his power tools to made a living and cannot afford downtime on the job (target) - DeWalt Professional Power Tools (frame of reference) - Are more dependable than other brands of professional power tools (point of difference) - Why? because they are engineered to by high quality and backed by Black and Decker's extensive service network and garuntee to repair or replace any tool within 48 hours (reason to believe)

Applications in Consumer Behavior

1. Marketing strategy - 4 Ps 2. Regulatory Policies 3. Social Marketing 4. Informed Individuals

Marketing to gay and lesbian consumers

7% of adult populations, purchase power of gay market has been estimated at $750-900 billion

Our total product + competitors total product

= consumer decision process

Self-Oriented Values

Active/Passive Sensual Gratification/Abstinence Hard Work/Leisure Post-poned gratification/Immediate Gratification Religious/Secular EX: Ad for Calvin Klein

Social Marketing

Adding a social benefit to the purchase ex: TOMS shoes donating to 3rd world countries

Generation

Age cohort is a group of people who have experienced similar experiences and have similar understandings

Sub-culture

An influence of your neighborhood A segment to a larger culture Ex: Cadillacs in Palo Alto

Gen Y

Born 1977-1994 at least as high of an education as previous generation, very tech savvy, strong market for apparel, social media, tapping into consumer related buzz or "trends"

Depression Generation:

Born between 1930-1940 Asset management/ downsizing homes/ possessions 25 million Americans in 2015

Gen X

Born between 1965-1976 More highly education, woman more highly educated, getting married and having families, facing time pressure of these events, requires special attention to media

Baby Boomer

Bron 1946-1964 Higher income compared to others, higher education, more tech savvy, strong market for anti-aging products, travel, and financial services

Environmental Oriented Values

Cleanliness Admire/Overcome nature Problem Solving/ Fatalistic Risk Taking/Security

External Factors

Culture sub-culture demographics social status reference groups family marketing activities

Global Consumer Behavior

EX: Chinese Dunk N Donuts is a mixed of standard and customized themes

Brand Essence

Ex: People love Chipotle because they trust that their ingredients are fresh

Monochrone Time

Fixed schedule Inflexible One task at a time Long-Term Oriented Western Culture

Point of Difference

Functional Benefit: superior performance & superior economy Emotional Benefit: externally focused & internally focused

Gender-Based Marketing

Gender Identity v. gender roles Ascribed v. achievement roles Additional v. modern gender orientation

Etiquette

Generally accepted ways of behaving in social situations. Behaviors considered rude/obnoxious may be acceptable in one culture but not another EX: tone of voice, speed of speech, use of gestures

Rational Aspect

How I would describe the product? What the product does for me

Agreements

How does culture ensure business obligations are honored? Some cultures rely on a legal system others rely on relationships

Lifestyle

How one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them * need to understand your consumer's lifestyle

Relationships

How quickly & easily do cultures form relationships and make friends EX: Americans: very quickly and easily Chinese: more complex & characterized by Guanxi

Marketing Strategy

How will we provide superior cusomter value to our target market

Variations in Cultural Values

Individual/Collective Youth/Age Extended/Limited Family Masculine/Feminine Competitive/Cooperative Diversity/Uniformity

Trinchero Family Estates

Innovation, package, and design; demographics of wine consumers, Social Media Case Study Manages different brads such as sutter home, targeting different markets Innovation: catering to different target markets Packaging: Bandit "good to go wine!" that is less pretentious and more casual with eco-friendly on the go wine, also convenient and affordable Innovation to Size: Sutter Home mini bottles Youtube ad: #myminimoments, able to go where life takes you, targets younger generation, adventurous/active lifestyles, social, showing you can drink wine like beer (casual) Innovation merchandising: promoting themselves "sutter home builds a better burger" makes wine less intimidating and more friendly Certain packaging targets different consumers Social Media: used by 93% of marketers, millennials big target

Consumer behavior

Language, demographic, values, non-verbal communications

Guanxi

Literally translated as "personal connections/relationships on which an individuals can draw to secure resources or advantage when doing business as well as in the courses of social life. 1. The notion of continuing reciprocal relationships 2. Favors are banked 3. The relationship network is built among individuals, not organization 4. Status matters - relationships with a senior will extend to his subordinates but not vice versa 5. The social relationship is prior to and a prerequisite to the business relationship

Global Youth Cultures

Mass media and internet have had an impact of uniformity among teens around the world They tend to watch many of the same shows/movies/videos/dress alike Technology is an important factor

Polychrone Time

No fixed schedule Flexible Different tasks at one time Short-term oriented Asian & African Cultures

Space

Overall use and meanings assigned to space vary widely among different cultures * failure to recognize the meaning assigned to a symbol can cause problems

Honda Mini-Van

People with families; diverse in ethnicity

Internal Factors

Perception Learning Memory Motives Personality Emotions Attitudes

Emotional Aspect

Picks up people's emotions, uses that to market

Demographics

Population & size Occupation: affects choice, activities, TV shows, stores Education: affects this; ex: college grad more likely to shop at Neimans Income Age: elderly pop. increasing because of baby boomers

Decision Process

Problem Recognition --> Information Search --> Alternative evaluation & selection --> Outlet selection & purchase --> post-purchase processes

Frame of Reference

Product category Specific Competitor Points of Parity EX: Subway - fast food, which is a frame of reference

Marketing Mix

Product, promotions (communication), price, place (distribution)

Symbolic needs

Status: show your accomplishments through what you have/buy Identity: can show though that products that you have Group acceptance: how your peers will view it Ex: Rolex watch to show status

Stratification

The community plays a huge role, millennial are different than baby boomers, school class

Brand Positioning

The specific intended meaning for the brand Captured in a statement specifying - Target: should clearly state target mix - Frame of reference - Point of difference - Reasons to believe P.O.D *Components are interdependent

Retailing Strategy

The way to retail products toward a certain role EX: Traditional housewife, trapped housewife, trapped working woman, and career working woman *More men are buying household products and more woman are buying power tools

Positioning

The way your brand positions in the market; how do you position your brand in the mind of consumers

Cultural Values

There are variations EX: US values are cleanliness, performance/status, tradition/change, risk taking/security, nature

Nonverbal Communications

Time, space, symbols, relationships, things, etiquette, agreements

Cultural values

Widely held beliefs that affirm what is desirable Observable shifts in behavior, including consumption

Honda Accord Case

With honda being Japanese --> added french aspect; worldly Very enjoyable, light-hearted feel to commercial - lifestyle Features mention of horsepower, safety, new technology

Market Segmentation

a portion of a large market who's needs differ from the larger market - the way 2 groups live could be different --> different needs

Green Marketing

developing products whose production, use or disposal is less harmful to the environment than the traditional versions of the market, developing products that have a positive effect on the environment

Consumption

has meaning beyond satisfaction of minimum or basic consumer needs, symbolic

Cause-Related Marketing

marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause

Things

the cultural meaning of things leads to purchase patterns that one would not otherwise predict *The differing meanings that cultures attach to things, including products, making gift-giving a difficult task

Self-Concept

totality of an individual's thoughts and feelings about oneself