Development of the Marketing Concept Ch1

• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept

Marketing Concept Requirements

• Market Segmentation
• Targeting
• Positioning
• The Marketing Mix (4 Ps)

More Precise Targeting

• Cookies
• Global Positioning Systems (GPS)
• Sel es
• Interactive communications

Successful Relationships
• Customer Value
• Customer Satisfaction
• Customer Retention

Determinants of Site Satisfaction

• Adaptation
• Interactivity
• Nurturing
• Commitment
• Network
• Assortment
• Transaction ease
• Engagement
• Loyalty
• Inertia
• Trust

Measures of Customer Retention

• Customer valuation
• Retention rates
• Analyzing defections

Consumer behavior stems from four disciplines.

• Psychology
• Sociology
• Anthropology
• Communication

Consumer Decision Making

• Inputs
– Firm marketing e orts
– Sociocultural in uences

• Process
– Psychological factors
– Need Recognition, Decision Type, Prepurchase Search, Evaluation of Alternatives
– Learning

• Outputs
– Purchase
– Post-purchase evaluation

Employment Opportunities
• Brand management
• Advertising
• Consumer research
 Ch2

Two Types of Shared Characteristics

• Quantitative factors
– Consumer-intrinsic
– Consumption-based

• Cognitive factors
– Consumer-intrinsic
– Consumption-speci c

Demographic Segmentation
• Age
• Gender
• Marital Status
• Household type and Size
• Income and Wealth; Occupation
• Geographical location

Geodemographic Segmentation
• PRIZM
• Location, demographics, and consumer behavior
• Lifestage groups
• Urbanization and a uence
• ConneXions
• P$YCLE

Expectations of Service Providers

• Social Bene ts
– Recognized/known by sta
– Treated in a way that they feel important/friendship

• Special Treatment Bene ts

– Helping when something goes wrong
– Receiving priority treatment

• Con dence-Related Bene ts

– Feel con dent service will be provided correctly
– Clear descriptions of services and what to expect

Usage-rate Segmentation
• Heavy
• Medium
• Light

Segments Should be
• Identi able
• Pro table
• Reachable

Mobile Targeting
• Showrooming
• Geofencing
• Websites are versatile
 Ch3
Needs and Goals
• Needs
– Biogenic
– Psychogenic

• Goals
– Generic
– Product-speci c

Selecting Goals
• Factors ( The goals that individuals select depend on )
– personal experiences and knowledge
– physical capacity
– cultural norms and values
– goal accessibility

• Approach objects
• Avoidance objects

Factors That Motivate Shopping

• Seeking speci c goods / • Recreational shopping / • Activity-speci c shopping / • Demand-speci c shopping

Cannot Attain Goals?

• Substitute goals / • Frustration / • Defense mechanisms

Defense Mechanisms
• Aggression / • Rationalization / • Regression / • Projection / • Daydreaming / • Identi cation / • Withdrawal

Maslow’s Hierarchy of Needs ( 5 levels )

• physiological needs / • safety and security needs / • social needs / • egoistic needs / • self-actualization needs

Projective Techniques
• Projective techniques / • Storytelling / • Sentence Completion / • Thematic Apperception Test / • Picture Drawing / • Photo Sorts

Motives for Online Interactions

• Interest in buying and comparing products’ features
• Personalizing products is fun
• Desire for good customer service
• Win prizes and receive free samples

Personality Three Approaches

• Freudian concepts / • Neo-Freudian premises / • Measuring distinct traits

Four motivational factors for Innovativeness:

1. Functional factors / 2. Hedonic factors / 3. Social factors / 4. Cognitive factors

Levels of innovativeness
1. Global innovativeness / 2. Domain-speci c innovativeness / 3. Innovative behavior

Other Personality Factors

• Optimum stimulation level (OSL) / • Sensation seeking, Novelty seeking / • Need for Cognition / • Visualizers versus. Verbalizers / • Materialism /
• Compulsions and Fixations / • Ethnocentrism

Underlying dimensions of brand personality

– Excitement / – Sophistication / – A ection / – Popularity / – Competence

Consumer behavior researchers identi ed four components of self-image:

1. Actual self-image / 2. Ideal self-image / 3. Social self-image / 4. Ideal social self-image i
 Ch4

Sensory Input
• Sight
• Scent
• Touch
• Sound
• Taste
• Impact on Culture

Perceptions Are A ected by…

• Expectations
• Motives
• Selective Perception ( – Selective Exposure / – Selective Attention / – Perceptual Defense / – Perceptual Blocking )

Three principles that a ect how patterns are perceived are

• Figure and ground
• Grouping
• Closure

Perceptual Interpretation
• Stereotyping
• Triggers ( – Physical appearance / – Descriptive terms / – First impressions / – Halo E ect )

Perceived Value
• Reference price
• Price-quality relationship
• Positioning
• Image and quality

The Elements of Perceived Risk

• Functional Risk
• Physical Risk
• Financial Risk
• Psychological and Social Risk
• Time Risk

How Consumers Handle Risk

• Information
• Brand loyalty
• Store image
• Price-quality relationship

Positioning Process
1. De ne the market, buyers and competition.
2. Identify key attributes and research consumers’ perceptions
3. Research consumers’ perceptions on competing o erings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates attributes as bene ts.
6. Create a positioning statement and use it to communicate with the target audiences.

Other Types of Positioning

• Premier positioning
• Positioning against the competition
• Key attribute
• Un-owned positioning
• Repositioning