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65 Cards in this Set
- Front
- Back
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When do reference groups exert influence?
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Did you join group? Positive attitude towards group, credible source, value group's views, accepts their sanctions
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Reference group
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actual/imaginary group serving as a point of reference for an individuals beliefs/attitudes/behaviors. Ex. Siblings, coworkers
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ref group inf on product
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nature of the product, visability, status value
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Consumption subcultures
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subgroup that self selects on basis of shared commitment to particular brand or consumption activity
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Brand Communities
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social relationships w. fellow owners. Brand personality/evangalist/worshiper. Virtual community- internet; lacks face to face
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Communications w.i group & opinion leadership
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1.often primary source of info. 2. commun. W.i and across group. 3. buzz mkting- positive WOM. 4. viral mkting-encourage spread of info from person to person
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gorilla mkting
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use of non traditional mkting tools- more mkting out of a limited budget. Don't know sponsor
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undercover/stealth mkting
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mkting to consumer so they're unaware
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Importane of WOM
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friends/family more credible.92% trust reccomendations of people they know. Reduces decision risk, more important in other countries. 2/3 of decisions based on WOM
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Keep track of what's said about your brand
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Wom com from op leaders to followers. Op leaders are influencers- have enduring involvement
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Neilson
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N score and %, also have Cebra scores
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Negative Wom
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more influential than positive, 3 times more likely to share bad expirience. Av. American talks about specific brands 60 times per week
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Positive mentions outnumber negative
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8 to 1
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Stats
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92% of brand covos happen offline , 66% discussions positive, 8% negative. 40% of people hold onto bad expiriences 2 years later
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Melamine tainted dog food
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brand volume dropped 8000 units, 3 wks after posting online
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Multiplier effect
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2 motivators for neg wom: rumours- difficult to fight , advertising informative when fought, most die out. Or direct expirience
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P&G satanism
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symbol of sun and moon accused of satanic symbol. Changed it
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WOM on Web
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negative potentially millions, complain anonomously, mulitplier effect
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Viral mkting
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widely used-80% of firms. Tell a friend, anonym corporate viral dissemination
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Conditions for WOM comm
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Not a factor if consumer has a strong impression. IS a factor when we have little knowledge and high involvement.
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Moderate likliehood
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high product knowledge and involvement and low, low
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Low Likelihood
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high knowledge, low involvement
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High likelihood
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low knowledge, high involve
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Strategic Applications of WOM
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A. stimulate w. free trials. B. Tell a friend promos. C. testimonials. D. portray opinion leaders
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Innovation
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idea/practice/product that's percieved to be new to a relevent group
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disruptive innovation
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ipad, mp3, game changers
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coniuous inov.
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automobiles, they keep improving
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Adoption
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the culmination of 5 step decision making process. Ends w. positive post purchase eval, adopts the product as one's own
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diffusion
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process by which the adoption or innovation or an idea spreads over time to other consumer groups through communication. Macro level of transmission of info
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Diffusion Theory
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innovations accepted or not at a certain rate
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phases of adoption
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linked to strategies
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Higher interest
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equals earlier adoption. Trial more important
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Characteristics that encourage diff and adopt.
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relative advantage, compatability, simplicity, observability, triability
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Barriers to diff and adopt
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value barrier (10 g more for hybrid, why's it worth that), usage barrier(can I try it, will I know how to), risk barrier- physical/social
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Other factors affecting
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marketing, group influence, degree of need
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Time of Adoption Everett Rodgers
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Catergories- how readily one will try new products
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innovators 2.5%
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Influence on Early adopters. Eager to be first, higher income, confident. Not opinion leaders- don't impact mkt as a whole
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Early adopters 13.5%
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average income. ARE opinion leaders, most important for success
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Early Majority 34%
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deliberates, collects more info, wants lower risk
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late majority 34%
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skeptical adopt if friends do rely on group norms. Older, below av income
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Laggards 16%
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independent, traditional, suspicious, feel forced to buy
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Time to adopt
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Fast is a fad, medium is a fashion, slow is a trend. Slow has a stretched out curve, fast has a steep curve
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Some will fail
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do so within the first 2 categories
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Adopted is when
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you reach 50% of HH. Took 50 years for radio and 7 for VCR
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Adoption across groups
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communication w/I groups is stronger. Diffusion needs info across groups
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Between Socioec
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more money, adopt it first, then lower classes adopt
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Tv makes status
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irrelevent
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adoption of internet:
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increasing simplicity, relative advantage, fewer risks and barriers, triability. Speeds adoption
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Strategic Apps of diff theory
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Adoption- encourage trial, show features, use opinion leaders, show ads with young hipsters using produt
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Rate of Diffusion
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pricing strategy common; skimming or penetration
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Skimming-
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initial high price, attracts innovators and early adopters, distribution selective, useful for major innovations, slows initial adoption , builds prestigous image. Lower prices later
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Penetration
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oppostie of skimming, initial low price, dist. Widespread, prices slowley increase, lost profit w. this method.
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Marketing stimuli
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physical, visual, verbal, communications that influence individuals response
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perception
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the process by which physical sensations are selected, organized and interpreted. Interpretation of the stimulus and assigned meaning
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Product concept
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the bundle of consumer benefits; ex. Everything you use the smart phone for.
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Marketers try to
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provide controllable stimuli
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Sensory Stimuli to Sensory perceptions all to exposure-then attention then interpretation
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Stimuli: 5 senses, Perceptions: eyes, ear, nose etc
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Vision and color
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color can evoke strong emotion reactions through symbolic meanings (often culturally bound)
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White
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death in the far east, pure and happy in the US
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Purple
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death in latin Amer.
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Blue
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femme in Holland, Masculine in US and Sweden
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Color distinguishes packages
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affects expectations
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Trade Dress
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refers to legal protection of color and packaging design. Distinctive, nonfunctional features which distinguish goods from others. Overall look can't be confusingly similar
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Color can modify behavior
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drunk tank pink, relaxes people in jail cells. Most popular color in world is blue, least is yellow
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Motion attracts attention
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speed of cuts and attention span
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