Chapter 5 Marketing and Consumer Behavior: The Foundations of Advertising McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Overview The marketing process and the role of advertising and other marketing communications tools 5-2 Chapter Objectives Define marketing & explain advertising’s role in the market Outline the consumer perception process & explain why “perception is everything” Discuss product utility and the link between utility and consumer needs Describe motives behind consumer purchases Identify key participants in the marketing process Discuss influences on consumer behavior Explain how advertisers deal with cognitive dissonance 5-3 Marketing Context of Advertising Marketing Conception Pricing Promotion Distribution Advertising 5-4 Customer Needs / Product Utility Needs Utility Functional Form Psychological Task Possession Time Place 5-5 Goal of Marketing & Advertising Perception Exchange Satisfaction 5-6 Marketing Participants: Customers Current customers Prospective customers Centers of influence Total Market 5-7 Market Types Consumer Business Government Local Regional or National Transnational or Global 5-8 Marketing Participants: Market Customers Markets Marketers 5-9 Consumer Behavior: Decision Process 5-10 Consumer Perception Process 5-11 Consumer Perception Process French advertiser SHS capitalizes on young consumers’ self-perception 5-12 Consumer Behavior: Learning Theories 5-13 Elaboration Likelihood Model 5-14 Consumer Behavior: Results of Learning Loyalty Habit Interest Attitude 5-15 Consumer Motivation Process Motivation: underlying forces driving decisions Needs, basic & instinctive Wants, learned during lifetime 5-16 Consumer Motivation Process Taco Bell hints at several levels of needs 5-17 Maslow’s Hierarchy of Needs 5-18 Consumer Motivation Rossiter & Percy’s Fundamental Motives Negative Motives: problem removal or avoidance Positive Motives: benefit, bonus, or reward 5-19 Consumer Motivation Negative motivation in Kids and Cars ad urges readers to adopt safe behaviors 5-20 Influences on Consumer Behavior Interpersonal Nonpersonal Family Time Society Place of Sale Reference Groups Environment & Opinion Leaders 5-21 Nonpersonal Influences on Behavior U.S. Army ad focused on a Spanishspeaking audience 5-22 Purchase Decision Evoked Set: mp3 Players Apple Microsoft Rio SanDisk 5-23 Purchase Decision Evaluative Criteria Capacity Durability Battery life Ease of obtaining and loading music 5-24 Postpurchase Evaluation Cognitive Dissonance Was it worth the money? Will it last as long as my old one? Could I have found a better price? 5-25