A person's buying choices are further influenced by four major psychological factors: Motivation, perception, learning, and beliefs and
attitudes. Motivation: A need that is sufficiently pressing to direct the person to seek satisfaction of the need. Perception: The process by
which people select, organize, and interpret information to form a meaningful picture of the world. Learning: Changes in an individual's
behavior arising from experience. Belief: A descriptive thought that a person holds about something. Attitude: A person's consistently
favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. The 4 major types of buying behavior: Complex,
Variety-Seeking, Dissonance-reducing, and Habitual. Complex buying behavior: Consumer buying behavior in situations characterized by
high consumer involvement in a purchase and significant perceived differences among brands. Dissonance-reducing buying behavior:
Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.
Habitual buying behavior: Consumer buying behavior in situations characterized by low consumer involvement and few significant
perceived brand differences. Variety-seeking buying behavior: Consumer buying behavior in situations characterized by low consumer
involvement but significant perceived brand differences.
Physiological - Includes the need for air, water, food.
Security -Includes the need for safety, order, and freedom from fear or
threat.
Belongingness and love (or social need)- Includes the need for love,
affection, feelings of belonging, and human contact
Esteem -Includes the need for self-respect, self-esteem, achievement, and
respect from others
Self-Actualization -Includes the need to grow, to feel fulfilled, to realize
one's potential
BCG-Growth Share Matrix.
Five Step Marketing Process:
Understand the marketplace and
customer needs, wants, and
demands.
Design a customer-driven
marketing strategy.
Construct a marketing program
that delivers superior value.
Build profitable relationships and
create customer delight.
Capture value from customers to
create profits and customer quality.
One of four strategies for each SBU:
Build Share: invest more
Hold Share: invest enough to hold the
share
Harvest Share: milking its short--term
cash flow regardless of the long-term
effect.
Divest Share: Selling it or phasing it
out and using resources elsewhere.
Selling and Marketing Concepts Contrasted
Four Major factors that
influence consumer buyer
behavior:
Cultural, Social, Personal, and
Psychological.
Opinion leaders
A person within a reference
group who, because of
special skills, knowledge,
personality, or other
characteristics, exerts social
influence on others.
Steps in Strategic Planning
THE FOUR
P’S OF THE
MARKETING
MIX
An overall evaluation of the company's strengths (S),
weaknesses (W), opportunities (O), and threats (T).
Identify and discuss the
stages in the buyer decision
process:
SWOT Analysis need recognition,
information search,
evaluation of alternatives,
purchase decision, and
post purchase behavior.
Stimulus-response model
marketing stimuli (the four P's) and
other major forces (economic,
technological, political, and cultural)
enter the consumers black box and
produce certain responses.
market growth
rate provides a measure
of market attractiveness.
relative market
share provides a measure
of company strength in
the market.
The Buyer Decision process (for complex buying behavior): Need
Recognition, Information search, Alternative evaluation, Purchase
decision, Post purchase behavior. Need Recognition: The first stage
of the buyer decision process, in which the consumer recognizes a
problem or need. Information Search: The stage of the buyer decision
process in which the consumer is motivated to search for more
information. Alternative evaluation: The stage of the buyer decision
process in which the consumer uses information to evaluate
alternative brands in the choice set. Purchase Decision: The buyer's
decision about which brand to purchase. Post Purchase Behavior
The stage of the buyer’s decision process in which consumers take
further action after purchase, based on their satisfaction or
dissatisfaction. Cognitive dissonance Buyer discomfort caused by
post purchase conflict. or anxiety consumers may experience when
faced with two or more highly attractive alternatives.
Selective distortion: people interpret info in a way that will support what they already believe. Selective
retention: remembering good points about your favorite brand not about competing ones. Selective
attention: people screen out most of the information they are exposed to.
Star: High-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually
their growth will slow down, and they will turn into cash cows.
Cash Cows: Low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their
market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.
Question Marks: Low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it.
Management has to think hard about which question marks it should try to build into stars, and which should be phased out.
Dogs: Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to
be large sources of cash.
Stages in the Adoption Process: Consumers go through five stages in the process of adopting a new product:
Awareness: The consumer becomes aware of the new product but lacks information about it.
Interest: The consumer seeks information about the new product.
Evaluation: The consumer considers whether trying the new product makes sense.
Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.
Adoption: The consumer decides to make full and regular use of the new product.
Maslow Hierarchy of
Needs
1. Physiological Needs
2. Security Needs
3. Affiliation Needs
4. Esteem Needs
5. Self-Actualization
Needs
Diffusion Process:
Innovators, early adopters, early
majority, late majority, laggards
Perception: The process by
which an individual select,
organizes, and interprets
information to create a
meaningful picture of the
world
Subliminal Perception: Seeing
or hearing messages without
being aware of them.
Perceived Risk: The anxiety
felt because the consumer
cannot anticipate the outcomes
of a purchase but believes that
may be negative consequences