Lecture 3

Chapter 2 and 3
Behavioral Targeting
• Behavioral targeting consists of sending consumers personalized and
prompt offers and promotional messages designed to reach the right
consumers and deliver to them highly relevant messages at the right time
and more accurately than when using conventional segmentation
techniques
• Tracking Online Navigation Tracking consumers’ navigation online includes:
• 1. Recording the websites that consumers visit.
• 2. Measuring consumers’ levels of engagement with the sites (i.e., which
pages they look at, the length of their visits, and how often they return).
• 3. Recording the visitors’ lifestyles and personalities (derived from the
contents of consumers’ blogs, tweets, and Facebook profiles).
• 4. Keeping track of consumer’ purchases, almost purchases (i.e.,
abandoned shopping carts), and returns or exchanges
Positioning and Repositioning

• Positioning is the process by which a company creates a distinct image and identity for its products,
services, or brands in consumers’ minds. The image and unique identity are called a “position.” The
position, which is intangible and exists only in the consumer’s mind, represents how marketers want
consumers to perceive products and brands
• The positioning process includes the following steps:
• 1. Defining the market in which the product or brand competes, who the relevant buyers are, and the
offering’s competition.
• 2. Identifying the product’s key attributes and researching consumers’ perception regarding each of the
relevant attributes.
• 3. Researching how conumers perceive the competing offerings on the relevant attributes.
• 4. Determining the target market’s preferred combination of attributes.
• 5. Developing a distinctive, differentiating, and value-based positioning concept that communicates the
applicable attributes as benefits.
• 6. Creating a positioning statement focused on the benefits and value that the product provides and using
it to communicate with the target audiences.
Repositioning

• Repositioning is the process by which a company strategically changes

the distinct image and identity that its product or brand occupies in
consumers’ minds.
• Companies do so when consumers get used to the original positioning
and it no longer stands out in their minds. Similarly, when consumers
begin to view the old positioning as dull, marketers must freshen up
their brands’ identities.
• At times, too many competitors stress the same benefit in their
positioning, so marketers must uncover other attributes that consumers
perceive as important
Consumer Motivation and
Personality
Chapter 3
The Dynamics of Motivation
• Needs
• There are two types of human needs:
• Physiological needs are innate (biogenic, primary) and fulfilling them
sustains biological existence. They include the need for food, water,
air, protection of the body from the outside environment (i.e.,
clothing and shelter), and sex.
• Psychological needs are learned from our parents, social
environment, and interactions with others. Among many others, they
include the needs for self-esteem, prestige, affection, power, and
achievement.
The Dynamics of Motivation
Goals
• Goals are the sought-after results of motivated behavior, and all
human behavior is goal oriented.
• There are two types of goals:
• Generic goals are outcomes that consumers seek in order to satisfy
physiological and psychological needs.
• Product-specific goals are outcomes that consumers seek by using a
given product or service.
The Dynamics of Motivation

Need Arousal
• Most of an individual’s needs are dormant much of the time. The arousal of any need at a specific
moment in time may be caused by biological stimuli, emotional or cognitive processes, or stimuli in
the outside environment.
Selecting Goals
• The motivation to select goals can be either positive or negative.
• We may feel a driving force toward some object or condition or a driving force away from some object
or condition. For example, a person may be encouraged to start exercising in order to avoid health
problems (i.e., a negative outcome) or in order to look more attractive and dynamic (i.e., a positive
outcome).
• Positive outcomes that we seek are called approach objects; negative outcomes that we want to
prevent are called avoidance objects.
• For instance, a college is an approach object to a high school graduate who is motivated by the desire
for higher education. Another person knows that his parents would criticize him if he does not go to
college, so he goes to college to avoid being criticized. Both individuals have the same goal—college
education—but are motivated to adopt that goal in opposite ways.
The Dynamics of Motivation
Needs and Goals Are Interdependent
• Another study identified several factors that motivate people to go shopping:
• 1. Seeking out specific goods, such as going to to supermarket to buy foods or a
hardware store to purchase needed tools or materials.
• 2. Recreational shopping occurs when consumers do not have an urgent
product need in mind, but go shopping for the personal enjoyment of shopping.
• 3. Activity-specific shopping, which includes such motivations as sensory
stimulation, gift shopping, and bargain hunting.
• 4. Demand-specific shopping, in which consumers are motivated by such factors
as service convenience, store atmosphere, assortment innovations, and
assortment uniqueness.
Systems of Needs
Murray’s List of Psychogenic Needs
• In 1938, the pioneering psychologist Henry Murray prepared an extensive list of psychogenic needs,
which represented the first systematic approach to the understanding of non biological human needs.
• Murray believed that although each need is important in and of itself, needs can be interrelated, can
support other needs, and can conflict with other needs.
• For example, the need for dominance may conflict with the need for affiliation when overly controlling
behavior drives away friends, family, and spouses.
• Murray also believed that environmental circumstances strongly influence how psychogenic needs are
displayed in behavior.
• For example, studies have indicated that people with a high need for achievement tend to select more
challenging tasks. Also, people with high needs for affiliation are part of large social groups, spend more
time in social interaction, and feel lonely when faced with little social contact
Maslow’s Hierarchy of Needs
Psychologist Abraham Maslow formulated a theory of human motivation based on the notion that there is a hierarchy of
human needs.6 Maslow’s hierarchy of needs consists of five levels of human needs, which rank in order of importance
from lower-level (biogenic) needs to higher-level (psychogenic) needs
Physiological Needs
• Maslow maintained that physiological needs are the first and most basic level of human needs. These primary needs,
which are required to sustain biological life, include food, water, air, shelter, clothing all biogenic needs
Safety Needs
• After physiological needs have been satisfied, safety and security needs become the driving force behind an individual’s
behavior
Social Needs
• The third level of Maslow’s hierarchy consists of social needs, such as love, affection, belonging, and acceptance.
Egoistic Needs
• When social needs are more or less satisfied, the fourth level of Maslow’s hierarchy becomes operative. This level
includes egoistic needs, which can take either an inward or an outward orientation: 1. Inwardly directed ego needs
reflect an individual’s need for self-acceptance, self-esteem, success, independence, and personal satisfaction. 2.
Outwardly directed ego needs include the needs for prestige, reputation, status, and recognition from others
Need for Self-Actualization
• According to Maslow, once people sufficiently satisfy their ego needs, they move to the fifth level. The self-actualization
need refers to an individual’s desire to fulfill his or her potential—to become everything that he or she is capable of
becoming.