Advch5

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Marketing

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The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations.
*Advertising=Promotion

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Purpose of marketing:

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To create exchanges that satisfy the perceived needs, wants, and objectives of individuals

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Utility

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A product's ability to provide both symbolic or psychological want satisfaction and functional satisfaction. A product's problem-solving potential may include form, time, place, or possession utility.
*Satisfy needs and wants/desires

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Elements of Marketing:

a)Exchanges

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The trading of one thing of value for another thing of value.

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b)perception (two levels)

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it is important that consumers view transactions as *equal value exchanges
Levels: 1)Consumer perception of product/service
2)seller perception of consumer needs wants and objectives

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c)satisfaction

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the goal of the consumer

advertising reinforces satisfaction

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Three key participants in the Marketing Process:

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Customers

Marketers

Markets

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Customers (Three Types)

a)Current Customers

b)Prospective Customers

c)Centers of Influence

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a)People who have already bought something from a business and who may buy it regularly.

b)People who are about to make an exchange or are considering it.

c)Customers, prospective customers, or opinion leaders whose opinions and actions are respected by others.

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Market

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A group of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price.

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4 Broad Markets:

a)Consumer Markets

b)Business Markets *Two Types

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a)People who buy products and services for their own, or someone else's, personal use.

b)Organizations that buy natural resources, component products, and services that they resell(*Reseller Markets), use to conduct their business, or use to manufacture another product(*Industrial Markets).

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c)Government Markets

d)Transnational (Global) Markets

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c)Governmental bodies that buy products for the successful coordination of municipal, state, federal, or other government activities.

d)Consumer, business, and government markets located in foreign countries.

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Marketers

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Any person or organization that has products, services, or ideas to sell.

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Consumer Behavior

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The activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants.

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Organizational Buyers

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People who purchase products and services for use in business and government.

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Consumer Decision Process

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The series of steps a consumer goes through in deciding to make a purchase.

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Steps in the Consumer Decision Process

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1)Problem recognition
2)Information search
3)Evaluation and selection of alternatives
4)Store choice and purchase
5)Postpurchase behavior

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Advertising mission

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reach prospective customers and influence their awareness, attitudes, and buying behavior

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Personal Process

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The three internal, human operations— perception, learning, and motivation—that govern the way consumers discern raw data (stimuli) and translate them into feelings, thoughts, beliefs, and actions.

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Interpersonal influences

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Social influences on the consumer decision-making process, including family, society, and cultural environment.

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Non-personal Influences

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Factors influencing the consumer decision-making process that are often out of the consumer's control, such as time, place, and environment.

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Evaluation of Alternatives

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Choosing among brands, sizes, styles, and colors.

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Postpurchase evaluation

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Determining whether a purchase has been a satisfactory or unsatisfactory one.

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Consumer Perception Process:

Perception

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Our personalized way of sensing, interpreting, and comprehending stimuli.

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a)Stimulus

b)Perceptual Screens

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a)Physical data that can be received through the senses.

b)The physiological or psychological perceptual filters that messages must pass through.

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Two types of Perceptual Screens:

I. Physiological Screens

II. Psychological Screens

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I. The perceptual screens that use the five senses—sight, hearing, touch, taste, and smell—to detect incoming data and measure the dimension and intensity of the physical stimulus.

II. The perceptual screens consumers use to evaluate, filter, and personalize information according to subjective standards, primarily emotions and personality.

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i.self-concept

ii.selective perception

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i.The images we carry in our minds of the type of person we are and who we desire to be.

ii. The ability of humans to select from the many sensations bombarding their central processing unit those sensations that fit well with their current or previous experiences, needs, desires, attitudes, and beliefs, focusing attention on some things and ignoring others.

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c) Cognition

d) Mental Files

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c) The mental processes involved in perception, thinking, recognition, memory, and decision making.(Awareness)

d)Stored memories in the consumer's mind.

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Learning

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A relatively permanent change in thought processes or behavior that occurs as a result of reinforced experience.
-produces habits and skills

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Theories of Learning:

a)Cognitive Theory

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a)An approach that views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving.
-High Involvement purchases

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b)Conditioning (Stimulus-Response) Theory

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b)The theory that learning is a trial-and- error process
-simple, low-involvement purchases

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Persuasion

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A change in thought process or behavior that occurs when the change in belief, attitude, or behavioral intention is caused by promotion communication (such as advertising or personal selling).

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The Elaboration Likelihood Model(of Persuasion)

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A theory of how persuasion occurs due to promotion communication. Psychologists Petty, Cacioppo, and Schumann theorize that the method of persuasion depends on the consumer's level of involvement with the product and the message.
*High involvement= Central Route
*Low involvement= Peripheral Route

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a)Central Route to Persuasion

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When consumers have a high level of involvement with the product or the message, they are motivated to pay attention to the central, product-related information in an ad, such as product attributes and benefits, or demonstrations of positive functional or psychological consequences
*Comprehension= product beliefs, brand attitudes, purchase intention

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b)Peripheral Route to persuasion

= Most mass media advertisements

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b)People who have low involvement with the product or message have little or no reason to pay attention to it or to comprehend the central message of the ad. However, these consumers might attend to some peripheral aspects of an ad or commercial for their entertainment value. Whatever they feel or think about these peripheral, nonproduct aspects might integrate into a positive attitude toward the ad. At some later date, these ad-related meanings could be activated to form some brand attitude or purchase intention.

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I.Attitude


II.Brand Interest

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I.The acquired mental position—positive or negative— regarding some idea or object.

II.An individual's openness or curiosity about a brand.

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I.Habit

II. Brand Loyalty

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I.An acquired or developed behavior pattern that has become nearly or completely involuntary.

II.The consumer's conscious or unconscious decision—expressed through intention or behavior—to repurchase a brand continually. This occurs because the consumer perceives that the brand has the right product features, image, quality, or relationship at the right price.

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Motivation

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The underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumer's purchasing actions.

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a)Needs

b)Wants

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a)The basic, often instinctive, human forces that motivate us to do something.

b)Needs learned during a person's lifetime. Symbolic Desires

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Motivation Research

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offers some insight into the underlying reasons for unexpected consumer behavior

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Hierarchy of Needs

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Maslow's theory that the lower biological or survival needs are dominant in human behavior and must be satisfied before higher, socially acquired needs become meaningful.
Physiological-Safety-Social-Esteem-SelfActualization

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Fundamental Purchase/Use Motives:

a) Negatively Originated (Informational) Motives

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Consumer purchase and usage based on problem removal or problem avoidance. To relieve such feelings, consumers actively seek a new or replacement product.
-problem removal, problem avoidance, Incomplete Satisfaction, Normal Depletion, Mixed approach-Avoidance

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b) Positively Originated (Transformational) Motives

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Consumer's motivation to purchase and use a product based on a positive bonus that the product promises,
** sensory gratification, intellectual stimulation, or social approval.

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INTERPERSONAL INFLUENCES

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Social influences on the consumer decision-making process, including family, society, and cultural environment.

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Social Classes

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Traditional divisions in societies by sociologists— upper, upper-middle, lower-middle, and so on—who believed that people in the same social class tended toward similar attitudes, status symbols, and spending patterns.
*Doesn't really apply today

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Reference Groups

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People we try to emulate or whose approval concerns us.

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Opinion Leaders

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Someone whose beliefs or attitudes are respected by people who share an interest in some specific activity.
*Could be spokesperson

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Culture

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A homogeneous group's whole set of beliefs, attitudes, and ways of doing things, typically handed down from generation to generation.

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Subculture

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A segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture.

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NONPERSONAL INFLUENCES

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Factors influencing the consumer decision-making process that are often out of the consumer's control, such as time, place, and environment.

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Environments

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Surroundings that can affect the purchase decision.

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Evaluation of Alternatives:

a)Evoked Set

b)Evaluative Criteria

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a)The particular group of alternative goods or services a consumer considers when making a buying decision.

b)The standards a consumer uses for judging the features and benefits of alternative products.

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Postpurchase Evaluation

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Determining whether a purchase has been a satisfactory or unsatisfactory one.

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Theory Of Cognitive Dissoanance

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The theory that people try to justify their behavior by reducing the dissonance, or degree to which their impressions or beliefs are inconsistent with their cognitions, or reality.

In the sense of the consumer purchase decision, people try to reduce their doubt or concern that their decision to purchase was an incorrect one.