IMC Ch. 2,4,5,6,14,15,&17
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Consumer Learning Process -Behavioral -Cognitive
"the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior" Behavioral Learning Theory: -emphasizes the role of external, environmental stimuli in causing behavior [Stimulus-Response Orientation] -Classical Conditioning-- learning process whereby a conditioned stimulus elicits a response is paired with a neutral stimulus that does not elicit any response...Through repeated exposure, the neutral stimulus starts to elicit the same response as the conditioned stimulus "learning is a passive associative process" --Conditioned Stimulus-- a stimulus that becomes associated with an unconditioned stimulus and becomes capable of evoking the same response/reaction as the unconditioned stimulus [Pavlov's Dogs: Bell is a conditioned stimulus that elicits a conditioned response of the dogs to salivate, like the unconditioned reaction...food make dogs salivate] **Relies on: -Contiguity (UR and CS must be close in time and space) -Repetition, the frequency of the association (stronger the more often they occur together) BUYERS CAN BE CONDITIONED to form favorable impressions and images of various brands through this associative process --can also be used to associate products/services with a favorable emotional state -Operant Conditioning-- learning theory that views the probability of a behavior as being dependent on the outcomes or consequences associated with it "individual must actively Operate or act on some aspect of the environment for learning to occur" --Reinforcement-- Rewards or favorable consequences associated with a response...strengthens the bond between a stimulus and a response when a behavior is reinforced ----Schedules of Reinforcement-- schedules where a behavioral response is rewarded... results in varying patterns of learning and behavior (continuous vs partial/intermittent) ------shaping-- the reinforcement of successive acts that lead to a desired behavior pattern or response Cognitive Learning Theory [process] Goal to Purposive Behavior to Insight to Goal Achievement
Purchase Decision Postpurchase Evaluation
*as a result of the alternative evaluation stage....consumer develops a Purchase Intention-- predisposition to buy a certain brand Brand loyalty-- a preference for a particular brand that results in its repeated purchase Possible outcomes after a purchase is made: -Satisfaction/Dissatisfaction results when consumer compares the level of performance with expectations -Cognitive Dissonance-- feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice --reassurance and opinions from others confirm how consumer may feel (supportive information)
Environmental Influences on Consumer Behavior
-Culture, complexity of learned meanings, values, norms, and customs shared by members of a society -Subculture, smaller groups within a culture that possess similar beliefs, values, norms, and patterns of behavior that differentiate them from the larger cultural mainstream -Social Class, relatively homogeneous divisions of society into which people are grouped based on similar lifestyles, values, norms, interests, and behaviors -Reference Groups, a group whose perspectives, values, or behavior is used by an individual as the basis for his/her judgements, opinions, and actions ...Types are Associative (want to be apart of or are), Aspirational (group might want to belong with), and Disassociative (don't want to be apart of) e.g. Families have many roles in purchase decision-making process, either together or individually -the initiator, information provider, influencer, decision maker(s), purchasing agent, consumer -Situational Determinants-- Influences that originate from a specific situation in which consumers are to use the product or brand --Usage, circumstances in which the product will be used --Purchase situation, involves the environment operating at the time of the purchase --Communications situation, is the condition in which an advertising exposure occurs ----May be most relevant to development of promotional strategies because the impact on the consumer will vary according to the situation *Situational determinants may EITHER enhance or detract from the potential success of a message... can increase the likelihood of successfully communicating with target audiences, depending on the degree that advertisers can access the situational influences
~Developing a Positioning Strategy
6 Strategies for Positioning ...Aaker and Myers Product Attributes and Benefits -Salient attributes-- attributes considered important to consumers in the purchase decision process Price/Quality -Premium brands use ads that reflect the image of a high-quality brand, and make cost become considered secondary to the quality benefits derived from using the brand -another way is to focus on the quality or value offered by the brand at a very competitive price **effective when product quality is comparable, or better than, the competing brands Use or Application -associate brand with a specific use or application -effective way to enter a market and to expand the usage of a product Product Class *competition can also come from outside the product class (e.g. trains, buses instead of a certain airline) -Position against another brand OR against another product category Product User -associated or identify with a certain group (e.g. Vans with skateboarders) Competitor -Is similar to positioning by product class, BUT instead the competition is within the same product category -Mention specific competitors Cultural Symbols -Brand associates with a meaningful symbol... make brand easy to identify and differentiate form others (e.g. Jolly Green Giant, Pillsbury Doughboy, Ronald McDonald, etc.) __Repositioning-- alter or change a product/brand's position -Usually occurs because of declining or stagnant sales or Anticipated opportunities in other market positions -Often DIFFICULT to accomplish becasue of ENRICHED PEERCEPTIONS about, and ATTITUDES toward the product or brand
Attitudes
Are learned predispositions to respond to an object Multiattribute Attitude Models-- a model of attitudes that views an individual's evaluation of an object as being a function of the beliefs that he/she has toward the object on various attributes and the importance of these attributes [Ab= attitude toward a brand Bi= beliefs about the brand's performance on attribute i Ei= importance attached to attribute i n= number of attributes considered] -Salient Beliefs-- Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude *Multiattribute Model provides insight into several ways marketers can influence consumer attitudes: -increase/change the strength of a belief rating of a brand on an important attribute (remind them how well their brand performs) -change consumers' perceptions of the importance or value of an attribute (attach more importance to an attribute when forming their attitude toward the brand) -adding a new attribute to the attitude formation process (consumers can use this when evaluating a brand) -change perceptions of belief ratings for a competing brand or product categories (good with comparative advertising)
Overview of Consumer Behavior
Consumer Behavior-- the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires --directly influences how well marketers influence purchase behavior --figure out how customers' specific needs translate into purchase criteria... as well as understanding how consumers gather information and how they make purchase decisions Conceptual Model = Basic Model of Consumer Decision (-Making) Process [stages in process] Problem recognition to Information Search to Alternative Evaluation to Purchase Decision to Postpurchase Evaluation [relevant internal psychological processes] Motivation to Perception to Attitude Formation to Integration to Learning ***Variations in consumer decision-making -may minimize or skip steps/stages if consumer has previous purchasing experience a product or service OR if the decision is of low personal, social, or economic significance -High levels of advertising may be used to encourage trial or brand switching (especially with new brands) -process can become more complicated when consumers have limited experience in purchasing a particular product or service and little/no knowledge of the brands available and/or the criteria to use in making a purchase decision
Information Search [2nd stage in consumer decision-making process]
Consumers search for information to make a purchase decision Internal Search-- the process by which a consumer acquires information by accessing past experiences or knowledge stored in memory External Search-- the search process whereby consumers seek and acquire information from external sources such as advertising, other people, or public sources PERCEPTION-- the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world -Sensation-- the immediate, direct response of the senses to a stimulus such as an ad, package, brand name, or point-of-purchase display -Selecting Information --How marketing stimuli will be attended to/interpreted include internal psychological factors such as the consumer's personality, needs, motives, expectations, and experiences --An individual's perceptual processes usually focus on elements of the environment that are relevant to his/her needs and tune out irrelevant stimuli (we notice stimuli for things we need, want, or are interested in -AAofAdvertisingAgencies) -Interpreting the Information ...happens after consumer attends to a stimulus --how consumer organizes, categorizes, and interprets the incoming information -Selective Perception-- the perceptual process involving the filtering or screening of exposure, attention, comprehension, and retention --Selective Exposure-- consumers choose whether or not to make themselves available to information --Selective Attention-- occurs when the consumer chooses to focus attention on certain stimuli while excluding others --Selective Comprehension-- interpret information on the basis of their own attitudes, beliefs, motives, and experiences...often interpret information in a manner that supports one's own position --Selective Retention-- perceptual process whereby consumers remember some information but not all ---Mnemonics--symbols, rhymes, associations, and images that assist in the learning and memory process are helpful -Subliminal Perception-- ability of an individual to perceive a stimulus below the level of conscious awareness
Developing the Marketing Planning Program
Goal is to combine various elements of the marketing mix into a cohesive, effective marketing program --Each element is MULTIDIMENSIONAL and includes a number of decision areas ~How Channels influence and interact with the Promotional Program~ Product Decisions -The product is anything that can be marketed and that, when used or supported (like a cause or person), gives satisfaction to an individual --a bundle of benefits or values that satisfy the needs of consumers (functional or social/psychological) -Product Symbolism-- refers to the meaning that a product or brand has to consumers --may be more important than functional utility (e.g. Gucci) *Advertising helps develop and maintain the image of brands -Product planning involves decisions about -the item itself -aspects like warranties, service, brand name, and package design -Factors like product's quality, branding, packaging, and the company itself, contribute Consumers' Perceptions --Branding Goal is to -Build and Maintain brand awareness and interest -Develop and enhance attitudes toward the company, product, or service -Build and foster relationships between the consumer and the brand *keep products and/or services of the brand in the mind of the consumer -Brand Identity-- The combo of the name, logo, symbols, design, packaging, image, and associations held by consumers toward a brand -Brand Equity-- The intangible asset of added value or goodwill that results, from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark --Brand Equity is a competitive advantage that can be reinforced/maintained through advertising ....brand can earn greater sales volume and/or higher margins --Packaging -importance has increased because of decisions made at the point of purchase (as many as 2/3rds of supermarket purchases are unplanned) -the package is the consumer's first exposure to the product -Companies also use packaging to --create a distinctive brand image and identity --communicate with customers --create an impression of the brand in the consumers' minds Price Decisions -Price variable, refers to what the consumer must give up to purchase a product or service... including time, mental activity, and behavioral effort cost to the consumer -Price is determined by costs, demand factors, competition, and perceived value [also product quality, competition, and advertising]... IMC perspective says price must be consistent with the perceptions of the product, as well as the communications strategy (prices communicate quality high=high, low = bargain/value perceptions) *Price, Advertising, and Distribution channels must present one unified voice speaking to the product's positioning *pricing and advertising strategies go together Distribution Channel Decisions ...How to make a product or service available for purchase -Marketing Channels-- the set of interdependent organizations involved in the process of making a product or service available to customers -Direct Channels-- marketing channel where a producer and ultimate consumer interact directly with one another...no intermediaries (direct-selling programs) -Indirect Channels-- marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer --commonly used by consumer-product companies ~~Developing Promotional Strategies: Push or Pull? Promotional PUSH Strategy-- strategy in which advertising and promotional efforts are targeted to the trade to attempt to get them to promote and sell the product to the ultimate consumer --this strategy's goal is to aggressively PUSH the product through the channels of distribution and aggressively selling/promoting the item to the resellers, or trade --designed to persuade the trade to stock, merchandise, and promote a manufacturer's products Trade Advertising-- used to companies to interest wholesalers and retailers; to motivate them to purchase its products for resale to their customers --usually appears in publications that serve the particular industry *PUSH tries to convince resellers they can make a profit on a manufacturer's product and encourage them to order the merchandise and push it through to their customers Promotional PULL Strategy-- strategy in which advertising and promotional efforts are targeted at the ultimate consumers to encourage them to purchase the manufacturer's brand --spend money on advertising and sales promotional efforts directed toward the ultimate consumer --Goal of a PULL strategy is to create demand among CONSUMERS and encourage THEM to request the product from the retailer ---This demand PULLS the product through the channels of distribution
Basic Model of Communication
Include the Sender's and Receiver's "Field of Experience" -source/sender to encoding to Channel Message (shared) to -decoding to receiver *response to feedback *Noise--any factors in the system that can interfere with the process inhibiting effective communication Source (aka sender)-- person, group, or organization, that sends the message Encoding-- the process of putting thought, ideas, or information into a symbolic form -leads to development of the message- Message-- a communication containing information or meaning that a source wants to convey to a receiver --may be verbal or nonverbal, oral or written, or symbolic --content, structure, and design of the message is put together right to properly deliver the information/intended meaning
Integration Processes and Decision Rules
Integration Processes-- the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives --use "decision rules"...strategies consumers use to decide among purchase alternatives Heuristics-- Simplified or basic decision rules that can be used by a consumer to make a purchase decision --e.g. Affect Referral Decision Rule-- consumers selections are made on the basis of an overall impression or affective summary evaluation of various alternatives under consideration
Marketing and Promotional Process Model
Marketing Strategy and Analysis -Opportunity Analysis -Competitive Analysis -Target Marketing Target Marketing Process -Identifying Markets -Market Segmentation -Selecting a Target Market -Marketing Positioning Marketing Planning Program Development (includes promotional mix) -Product decisions -Price decisions -Distribution Channel decisions -Promotional decisions and strategies Target Market (ultimate consumer) -Consumers -Businesses *loop between Resellers to ultimate consumer to purchase from reseller(s)
Problem Recognition and Motivation
Problem Recognition-- occurs when the consumer perceives a need and becomes MOTIVATED to solve the problem --created when there's a difference between the consumer's ideal state and actual state.... discrepancy between what the consumer wants the situation to be like and what the situation is really like -Sources of Problem Recognition: --Out of Stock --Dissatisfaction *Advertising may be used to help consumers recognize when they have a problem and/or need to make a purchase --New Needs/Wants Wants, desire for something one does not have --Related Products/Purchases (you buy this but now you need this too) --Marketer-Induced Problem Recognition i.e. Marketer actions that encourage consumers not to be content with their current state or situation *try to take advantage of "Novelty-seeking behavior" which leads consumers to try different brands... consumers try new products or brands even when they are satisfied with their regular brand --New Products Consumer Motivations Motives, factors that compel a consumer to take a particular action -Hierarchy of Needs 1. Physiological--what's needed to sustain life 2. Safety--need for security from physical harm 3. Social/Love and Belonging--desire for satisfying relationships and personally feeling loved and accepted 4. Esteem--need to feel a sense of accomplishment and gain status/recognition from others 5. Self-Actualization--the need for self-fulfillment and desire to realize one's own potential Psychoanalytic Theory (Freud and is controversial)-- An approach to the study of human motivations and behaviors (based on structure and development of personality) --Many motives for purchase and/or consumption may be driven by DEEP motives one can determine only by probing the SUBCONSCIOUS --lead to Motivation Research (by Dichter and Vicary), qualitative research to probe consumer's SUBCONSCIOUS and deeply rooted motives for purchasing a product ...Motivation Research in Marketing -In-depth Interviews -Projective Techniques -Association Tests -Focus Groups Problems of Psychoanalytical Theory and Motivation Research -Too vague -small sample size -emphasis on the unconscious makes results impossible/difficult to verify, "how valid are the conclusions drawn?" *is still used as a basis for advertising messages... aimed at buyers' deeply rooted feelings, hopes, aspirations, and fears (tend to be more effective than rationally based appeals) -Has taught marketers the importance of how/why consumers buy -LEarned that buyers are sometimes motivated by symbolic as well as functional drives in their purchase decisions
Questions missed know answers to now
Psychographic studies help provide personnel with a better understanding of GENERAL CONSUMER TRENDS Why Marketers don't pretest Digital Ads: 1. Brands/agencies focus more on high-profile TV commercials or video 2. RAPID TURNAROUND of digital ads....don't have time or money to test the ads In response to declining consumer attention to mass-media advertising: -Marketers are using more sales promotions Trade Promotions... can be both DETRIMENTAL and DETRACT from Brand Equity In personal selling... POOR REACH compels companies to reduce new hires and cutback salesforce Web 2.0 gets away from static webpages Advertising Specialties = High Retention and frequent reminder of company's name and message Transit ads are better for mass coverage Communication Objectives are DERIVED FROM Marketing Objectives Recency Planning.... Reach,,, continuous scheduling over a 1-week period CPRP formula parameters takes into account: COST of AD SPACE
Marketing Strategy and Analysis -Opportunity Analysis -Competitive Analysis -Target Marketing
Strategic marketing plan-- The planning framework for specific marketing activities -guides allocation of resources and for marketing programs and policies Market segments-- identifiable groups of customers sharing similar needs, wants, or other characteristics that make them respond similarly to a marketing program *Opportunity Analysis* Market Opportunities-- areas where there are favorable demand trends, where the company believes customer needs and opportunities aren't being satisfied, and where the company can compete effectively -Markets aren't homogenous; opportunities can be found by examining various market segments *Competitive Analysis* Analyze marketplace for direct brand competition and indirect brand competition (product substitutes) -Marketers are competing for consumers' DISCRETIONARY INCOME... must understand ways customers choose to spend their money -Search for Competitive Advantage-- something special a firm does or possess that provides an advantage over its competitors (e.g. Quality, superior customer service, lower production cost, lower prices, etc.) --Competitive Advantage can be achieved through advertising that creates/maintains product differentiation and brand equity -Some competitive environments are constantly changing.... new market entries, product life cycles, failing to adapt to market conditions/innovate, etc. -monitor competitors' marketing programs and ads because they impact a firm's marketing strategy -New entrants and global economy; foreign companies entering domestic markets and taking business from domestic firms... must learn to defend and compete *Target Market/ing Selection* After evaluating opportunities, info, and competitive analysis, the company selects a target market(s) --these will become the focus of the firm's marketing efforts; goals and objectives are set according to what the company wants to be and hopes to accomplish in this market ---usually set in terms of specific performance like sales, market share, and profitability -Directly affects advertising and promotional efforts -is part of the marketing strategy
Target Marketing Process -Identifying Markets -Market Segmentation -Selecting a Target Market -Marketing Positioning
Target Marketing-- process of identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed to each *Identifying Markets* Increasingly useful in marketing because of: -changes in the market (diverse consumer needs, lifestyles, attitudes) -increased segmentation by competitors -more managers are trained with segmentation and realize the advantages with this strategy *Market Segmentation* --The process of dividing the market into distinct groups that have common needs and respond similarly to marketing actions -Segmentation Variables- ...Geographic ...Demographic (age, sex, family size, education, income, and social class) --most common method of segmenting markets ...Psychographic (personality, lifecycles, and/or lifestyles) --considered most effective criterion for segmentation --ValueAndLifeStyles (VALS) program and Activities,Interests,andOpinions (AIOs) of consumers.... are evaluated/analyzed to determine lifestyles ...Behavioral --Divide customers based on their usage, loyalties, or buying responses to products -*-combined with demographic and/or psychographic criteria to develop profiles of market segments *80-20 rule-- 20 percent of a company's buyers account of their sales volume ..Benefit segmentation --grouping of consumers based on attributes sought in a product *Segmentation is part of situational analysis --marketers attempt to determine as much as they can about the market *Selecting a Target Market* 1. Determine how many segments to enter 2. Determine which segments offer the most potential ~Determining how many segments to Enter~ Three market coverage alternatives available: -Undifferentiated Marketing-- ignore market segment differences and offer one product or service to the entire market -Differentiated Marketing-- Firm offers products or services to a number of market segments and develops separate marketing strategies for each -Concentrating Marketing-- A firm chooses to focus its marketing efforts on one particular market segment ~Determine which segments offer Potential~ Examine: -sales potential of the segment -opportunities for growth -the competition -and their own ability to compete "Can we market to this group?" *Market Positioning* These strategies focus on either the consumer or the competition --both approaches involve association of product benefits with consumer needs 1. Link the product with the benefits the customer will receive...creating a favorable brand image 2. Compare product and its benefits offered versus the competition *considered the most important factor in establishing a brand in the marketplace *Positioning-- the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition
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Alternative Evaluation
The evoked set is a subset of all the brands of which the consumer is aware -Create top-of-mind awareness "reminder advertising" --maintain high levels of awareness and increase the likelihood consumers in the market will consider the product Evaluative Criteria-- dimensions or attributes of a product or service that are used to compare different alternatives --can be objective or subjective Functional Consequences-- outcomes of product or service usage that are tangible and can be experienced by a consumer Psychosocial Consequences-- purchase decisions that are intangible, subjective, and personal *The two subprocesses: 1. The process by which consumer attitudes are created, reinforced, and changed 2. The decision rules or integration strategies consumers use to compare brands and make purchase decisions
Channel
The method or medium by which communication travels from a source/sender to a receiver -personal or nonpersonal Mass Media-- nonpersonal channels of communication that allow a message to be sent to many individuals at one time -Print and Broadcast Personal channels involve direct communication -an advantage is that this form of communication is the message can be tailored to the individual/audience -includes WOM communications-- social channels of communication such as friends, neighbors, associates, associates, coworkers, or family members Buzz Marketing-- the use of various activities that generate conversation and WOM communication about a particular topic such as a company, brand, or marketing activity Viral Marketing-- the act of propagating marketing-relevant messages through the help and cooperation of individual consumers
Communication
The passing of information, exchange of ideas, or process of establishing shared meaning between sender and receiver
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The role of Advertising and Promotion is to...
use the various promotional-mix elements to inform consumers about their products, their prices, and places where the products are available And help marketers achieve promotional objectives and work together to achieve the IMC program
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