all ppts consumer b

To develop an understanding about the consumer decision making process and its applications in marketing functions of firm.

INTERNETYOUR THOUGHT

YOUR ACTION

• WHAT ARE THE CHANGES IN DELIVERY FACTOR FOR THE FOLLOWING:

A SMALL EXERCISE………….

THEN NOWNEWS PAPER PAPER ONLINEEARLIER CONSUMER HAVE TO GO TO SHOP TO BUY

BUT NOW ----INTERNET---ONLINE.CUSTOMISATION IS HAPPENING FROM SNEEKERS TO

COMPUTERS. EXAMPLE: DELLSTUDENTS CAN GO ONLINE AND VIRTUALLY ATTEND

CLASSESS- BEFORE JOINING A UNIVERSITYBOOKS ON LINE <<<<<<AMAZON.COM>>CHANGE FROM AUCTION TO BUY AND SELL ONLINE:

EBAY , BAZZE.COM ETC.

• T.V VIEWERS----SKIP OPTION, RECORDER ON DEMAND PREVIOUS SHOWS.

MORE EXAMPLES:

HOW THIS RELATED TO ME????

DEFINING CONSUMER BEHAVIOUR.

• C.B. CONCERNS WITH HOW INDIVIDUAL MAKE DECISIONS TO SPEND THEIR AVAILABLE RESOURCES(TIME, MONEY,EFFORT) ON CONSUMPTION RELATED ITEMS.

• WHAT THEY BUY, WHY THEY BUY, WHEN THEY BUY, WHERE THE BUY IT, HOW OFTEN THEY BUY, HOW OFTEN THEY USE IT, HOW THEY EVALUATE IT AFTER PURCHASE,IMPACT OF SUCH EVALUATIONS ON FUTURE PURCHASE, HOW OFTEN THEY DISPOSE IT.

MORE DEFINATIONS….

• FILL IN THE BLANKS WE ALL ARE UNIQUE BUT ONE THING IN COMMON.

• S T U D Y W O O D

_ _ _ _ _ _ _ _ _

• DEMAND FOR BASIC RAW MATERIAL• TRANSPORTATION• PRODUCTION• BANKING• EMPLOYMENT OF WORKERS• DEPLOYMENT OF RESOURCES.

AS A MARKETER

AS A MARKETER……..

FOCUS ON PERSONAL CONSUMERS(OWN USE)

NOTES IN WORD FORMAT.

PRODUCTION CONCEPT

PRODUCT CONCEPT

SELLING CONCEPT MARKETING CONCEPT

INTRODUCTION TO C B

BEFORE 1900 `S ONLY RICH1908 FORD T MODEL = $850

PRODUCTION EFFICIENT: ASSEMBLY LINE-- $360

PRODUCT CONCEPT

• FOCUS ON SELLING• “HARD SELLING – CONSUMER MAY NOT BUY

AGAIN”

• EXAMPLE: LIFE INSURNCE, POLITICAL PARTIES SELLING THEIR CANDIDATES AGGRESSIVELY.

SELLING CONCEPT

EARLIER: SELLING WHAT PRODUCE. FOUND: EASIER TO SELL –CONSUMER CONFIRED FIRST—RESEARCH.

FOCUS: CONSUMER NEEDS AND WANTS.

EXAMPLE: HENRY FORD Vs GM CAR FOR EVERY PURSE AND PURPOSE(MARKET SEGMENTATION) KFC (IN SHOP – ENTRY FROM DUMMY ROOM:ROAD SIDE EARLIER

NOT PERCEIVED GOOD. MC DONALDS: OPEN OUTLETS NEAR CHURCHES.

◦ SO FROM MARKET SEGMENTATION TARGETTING.

MARKETING CONCEPT.

• DIFFERENT FROM “ ME TOO” IMAGE POSITIONING

CONTINUEEE.

C B : MARKETER BORROWED FROM OTHER SCIENTIFIC DISCIPLINE AS CB NEW FIELD:

1960`SPSYCHOLOGY(study of individual) SOCIOLOGY(study of groups) SOCIAL PSYCHOLOGY(how individual operates in groups)ANTHROPOLOGY(the influeunce of society on the

individual)ECONOMICS(earlier theories: indviduals act rationally to

maximise their benefits(satisfaction) in purchase of goods and services………………

Later research facts: Consumer—purchase-impulsively—influence not only by family and friends, adv,role models but also>>>>>>>>>>>>>

MOODS SITUATION EMOTION

SO ON THE BASES OF THIS A COMPREHENSIVE MODEL OF CONSUMER BEHAVIOUR IS FORMED( BASE ON THE COGNITIVE AND EMOTIONAL ASPECTS OF CONSUMER DECISION MAKING).

EXTERNAL INFLUENCESFIRMS MARKETING EFFORT SOCIOCULTURE ENVIRONMENT1.PRODUCT2.PROMOTION3.PRICE4. CHANNEL OF DISTRIBUTION

1.NEED RECOGNITION2.PRE PURCHASE SEARCH3.EVALUATION OF ALTERNATIVES

PURCHASE1.TRIAL2.REPEAT PURCHASE

POST PURCHASE EVALUATION

PROCESS

OUTPUT

1. FAMILY2. INFORMAL SOURCES3. SOCIAL CLASSES4. CULTURE AND SUB

CULTURE

PSYCHOLOGICAL FIELD1.MOTIVATION2.PERCEPTION3.LEARNING4.PERSONALITY5.ATTITUDES

EXPERIENCE

1. WHAT IS CONSUMER BEHAVIOUR2. WHY SHOULD WE STUDY IT3. DO MARKETING MANAGERS,REGULATOR ETC USE

KNOWLEDGE ABOUT CB TO DEVELOP MARKETING STRATEGY.

4. WILL SOUND KNOWLEDGE OF CB WILL HELP YOU IN YOUR CAREER?

5. HOW DOES C B IMPACT QUALITY OF OUR LIVES AND ENVIRONMENT.

6. HOW CAN WE ORGANISE OUR KNOWLEDGE OF C B IN ORDER TO UNDERSTAND AND USE IT MORE EFFECTIVELY.

• MAHARASTRA:• SALE OF ICECREAM VERY GOOD. COMPANY ZZ• OTHER PARTS SALES DOWN• DID A RESEARCH………….

• FAMILY PRODUCT Vs TEENAGER• PROMOTION FAMILY Vs LIVE,YOUNG,TEEN PERSONPOSITIONING WAS REDONE: RESULT 25% INCREASE.

EVEN IN SEASON NOT WINTER SALES VERY GOOD.

SO WE STUDY INDIRECT INFLUENCE ON CONSUMER PURCHASE. SCOPE IS BIGGER THAN JUST PURCHASER AND SELLER.

• MATCH COMPETITOR PRICE REDUCTION.• HOW CONSUMER EVALUATE PRICES• HOW THEY WOULD RESPOND TO PRICE DIFFERENTIAL

BETWEEN THE BRAND.EXAMPLE 2. PROTECT CHILDREN FROM VARIOUS MARKETING PRACTISES ON THE WEB.

ASSUMPTION: CHILDREN ABALITY TO PROCESS INFORMATION AND MAKE DECISION IN THIS ENVIRONMENT.

MORE EXAMPLES

• CB BASED ON ASSUMPTIONS.• BAN OF CIGRATTEE ADVER….• ASSUMPTION: IT IFLUENCE HIGHER

CONSUMPTION• EXAMPLE 2. BAN OF SALE OF CIGRETTEE NEAR

100 METERS OF SCHOOL, AS ASSUMPTION BELOW 18 Yrs AGE EFFECT ON TRAIL HABBIT FORMING BEHAVIOUR.

• SOCIAL MARKETING: USE TO ALTER AND CREATE BEHAVIOUR.

• CONSUMPTION SOCIETIES: MORE ON CONSUMTION THAN OTHER: SO UNDERSTANDING IS ESSENTIAL FOR SOUND CITIZENSHIP,EFFECTIVE PURCHASING BEHAVIOUR.

VALUE CONCEPT.

• LA CHOY-FROZEN FOODS-- LARGE MEAT FROZEN ROLLS TO BE USED AS MAIN COURSE THAN APPETIZERS

• ?????????????WITHDRAWN FROM MARKET?• REASON: LARGE ROLLS NEED MORE TIME(30

MIN) IN REGULAR OWEN AND CANNOT BE MICROWAVED.

CB AND MARKETING STRATEGY: UNDERSTANDING OF CB IS BASIS FOR MARKETING STARTEGY FORMULATION.

INDIVIDUAL,FIRM , SOCIETY

CONSUMER DECISION PROCESSPROBLEM RECOGNITIONINFORMATION SEARCHALTERNATIVE EVALUATION,PURCHASE,USE,EVALUATION.

MARKET ANALYSISCOMPANY,COMPETITOR,CONDITIONS,CONSUMERS.

MARKET SEGMENTATIONIDENTIFY PRODUCT RELATED NEED SETS,GROUP CUSTOMERS WITH SIMILAR NEEDS,DESCRIBE EACH GROUP,SELECT THE ATTRACTIVE SEGMENTS TO TARGET.

MARKETING STRATEGYPRODUCT,PRICING,DISTRIBUTION,PROMOTION,SERVICES(CRUX: TO ADD VALUE VIS A VIS COMPETITOR. ALSO CALLED AS TOTAL PRODUCT.

HERE THE PRODUCT IS SEND IN TARGET MARKET

FORMULATION OF MARKETING STRATEGY HERE.

EXTERNAL INFLUENCES

CULTURESUBCULTUREDEMOGRAPHICSSOCIAL STATUSREFERENCE GROUPSFAMILYMARKETING ACTIVITIES

EXTERNAL INFLUENCES

CULTURESUBCULTUREDEMOGRAPHICSSOCIAL STATUSREFERENCE GROUPSFAMILYMARKETING ACTIVITIES

INTERNAL INFLUENCES

PERCEPTIONLEARNINGMEMORYMOTIVESPERSONALITYEMOTIONSATTITUDE

INTERNAL INFLUENCES

PERCEPTIONLEARNINGMEMORYMOTIVESPERSONALITYEMOTIONSATTITUDE

SELF CONCEPT & LIFESTYLE

DECISION PROCESS

SITUATIONS

PROBLEM RECOGNITION

INFORMATION SEARCH

ALTERNATIVE EVALUATION AND SELECTION

OUTLET SELECTION AN PURCHASE

POST PURCHASE PROCESS

DECISION PROCESS

SITUATIONS

PROBLEM RECOGNITION

INFORMATION SEARCH

ALTERNATIVE EVALUATION AND SELECTION

OUTLET SELECTION AN PURCHASE

POST PURCHASE PROCESS

NEEDSNEEDS

DESIREDESIRE

EXPERIENCES AND ACQUISITIONS

SEGMENT SIZESGMENT GROWTHCOMPETITOR STRENGTHCUSTOMER SATISFACTION WITH EXISTING PRODUCTFIT WITH COMPANY IMAGEFIT WITH COMPANY OBJECTIVEFIT WITH COMPANY RESOURCESDISTRIBUTION AVALIABLEINVESTMENT REQUIREDSTABILITY/PREDICTIBILITYCOST TO SERVESUSTAINABLE ADVANTAGE AVAILABLECOMMUNICATION CHANNEL AVAILABLERISKOTHERS

-----------------------------------------------------------------------------------------------------------------------------------------------------------

CRITERION SCORESCORE ON A 1 TO 10 SCALE, WITH 10 BEING MOST FAVOURABLE.

MARKET SEGMENT ATTRACTIVE WORKSHEET

SEE WHAT NEEDS TO BE DONE.

• EXAMPLE: CHANGE-PRODUCT PROMOTION—EARLIER—ON CHOCOLATE FLAVOUR

NOW—ON SMARTNESS OF CHILD DUE TO ESSENTIAL INGREDIENTS.

REMEMBER ALWAYS……..

YOU NEED TO KNOW.

REMEMBER THIS……..

CONSUMER DON`T PURCHASE QUARTER-INCH DRILL BITS BUT THE ABALITY TO CREATE QUARTER- INCH HOLES.

EXPLAINED THROUGH EXAMPLE.

• FEDERAL EXPRESS: WORLD LEADING COURIER OR LOGISTIC COMPANY.

• LOST MUCH OF OVERNIGHT LETTER DELIVERY BUSINESS NOT TO UPS OR AIRBONE BUT TO FAX MACHINE AND INTERNET.(FASTER CHEAPER AND MORE CONVINIENT.

• PRODUCT-> PHYSICAL & PRIMARY OR CORE SERVICE

NEED OF CONSUMER BEHAVIOUR STUDY

• EXAMPLE: EVERY YEAR: 15000 NEW PRODUCT OR NEW VERSION: MANY NOT SUCCEED.

• EXAMPLE:MARUTI A STAR, TATA NANO IN NORTH, SUBWAY EARLIER, GADJETS ETC, OMAX MALLS IN LUDHIANA. ANSAL PLAZA IN LUDHIANA.

• NEW BUDGET HOTELS GROWTH.

• ADV,SALE FORCE, PUBLIC RELATION, PACKAGING OTHER SIGNALS TO CONSUMER FROM FIRM.

• AN AFFECTIVE:C INSURES• WITH WHOME, EXACTLY DO WE WANT TO COMMUNICATE.• WHAT EFFECT WILL HAVE ON TARGET AUDIENCE.• WHAT MESSAGE—DESIRE EFFECT ON AUDIENCE.• WHAT MEANS AND MEDIA.• WHEN SHOULD WE COMMUNICATE.

PRICE: AMOUNT OF MONEY ONE MUST PAY TO OBTAIN THE RIGHT TO USE THE PRODUCT

EVERYTING THE CUSTOMER MUST SURRENDER IN ORDER TO RECEIVE THE BENEFITS OF OWING/USING THE PRODUCT.EVERYTING THE CUSTOMER MUST SURRENDER IN ORDER TO RECEIVE THE BENEFITS OF OWING/USING THE PRODUCT.

• INCREASE THE VALUE: REDUCE THE NON PRICE COST OF OWING OR OPERATING THE PRODUCT.

• HOW?????????????????

• RISK PERCEIVED BY THE CUSTOMER IN INVESTING IN THE PRODUCT.

• Example: Real estate

Example: HULLY CORPORATION $700 MILLION BICYCLE MANUFACTURE.

LAUNCED BICYCLE $ 159 CROSS SPORT: A CROSS BETWEEN MOUNTAIN BIKE AND THIN FRAMED 10 SPEED BICYCLE.

AFTER RESEARCH FOCUSED GROUP AND PRODUCT CONCEPT TEST(CONSUMER ACCEPTENCE). LAUNCHED THROUGH MASS DISTRIBUTION. KMART , TOYS ‘R’ US. BUT FLOPPED

THIS NEEDED GOOD KNOWLEDGE SALES PERSON, DEMAND INDIVIDUAL SALES ATTENTION NOT MASS DISTRIBUTION.THIS NEEDED GOOD KNOWLEDGE SALES PERSON, DEMAND INDIVIDUAL SALES ATTENTION NOT MASS DISTRIBUTION.

C . D PROCESS INTERVENCES BETWEEN THE MARKETING STRATEGY AND OUTCOME C . D PROCESS INTERVENCES BETWEEN THE MARKETING STRATEGY AND OUTCOME

FIRMS OUTCOME

A. PRODUCT POSITION: IMAGE –IN CONSUMER

MIND—VIS A VIS COMPETITIOR. SET OF BELIEFS,PICTORIAL REPRESENTATIONS,FEELING ABOUT THE PRODUCT OR BRAND.

A. PRODUCT POSITION: IMAGE –IN CONSUMER

MIND—VIS A VIS COMPETITIOR. SET OF BELIEFS,PICTORIAL REPRESENTATIONS,FEELING ABOUT THE PRODUCT OR BRAND.

EX. SAUZA TEQUILLA. “ LIFE IS HARSH, YOUR TEQUILLA SHOULDN`T BE” ----- RESULT 2 TIMES INCREASE IN SALESEX. SAUZA TEQUILLA. “ LIFE IS HARSH, YOUR TEQUILLA SHOULDN`T BE” ----- RESULT 2 TIMES INCREASE IN SALES

B. CREATING SATISFIED CUSTOMERS.

OUR TOTAL PRODUCT

COMPETITOR TOTAL PRODUCT

CONSUMER DECISION PROCESS

SUPERIOR VALUE EXPECTED

PERCEIVED VALUE DELIVERED

CUSTOMER SATISFIED

A. NEED SATISFACTION. ACTUAL NEED FULLFILLMENT AND PERCEIVED NEED FULLFILLMENT.

EXAMPLE: FOOD SUPPLYMENT. YOU BELIVE BUT NO DIRECT HEALTH EFFECT OR EVEN NEGETIVE

A. NEED SATISFACTION. ACTUAL NEED FULLFILLMENT AND PERCEIVED NEED FULLFILLMENT.

EXAMPLE: FOOD SUPPLYMENT. YOU BELIVE BUT NO DIRECT HEALTH EFFECT OR EVEN NEGETIVE

B. INJURIOUS CONSUMPTIONYOU FULLFILL ONE NEED BUT THIS EFFECT THEIR ABILITY TO FULLFILL OTHER.

EXAMPLE: MOST AMERICANS LIFESTYLE NOW, CANNOT RETAIL WHEN RETIREMENT.

RESULT: FINANCIAL DISTRESS, FAMILY STRESS, BANKRUPTCY, BY PASS MEDICAL, DENTAL CARE OR EVEN HOMELESSNESS.

B. INJURIOUS CONSUMPTIONYOU FULLFILL ONE NEED BUT THIS EFFECT THEIR ABILITY TO FULLFILL OTHER.

EXAMPLE: MOST AMERICANS LIFESTYLE NOW, CANNOT RETAIL WHEN RETIREMENT.

RESULT: FINANCIAL DISTRESS, FAMILY STRESS, BANKRUPTCY, BY PASS MEDICAL, DENTAL CARE OR EVEN HOMELESSNESS.

10 MILLION AMERICAN SUFFER FINANCIAL LOSS GAMBLING.10 AND 80 MILLION ALCHOLIC AND CIGRETTE SMOKERS.EVERY YEAR 25000 DIE RESULT OF ALCHOLIC RELATED TRAFFIC ACCIDENT.

ECONOMY OUTCOME

WHY DO CONSUMER CARE ABOUT SOME PRODUCTS,BRANDS AND NOT OTHERS.

SOME ARE HIGHLY MOTIVATED TO SEEK INFORMATION OTHERS – NO INTEREST.

WHY DO CONSUMER CARE ABOUT SOME PRODUCTS,BRANDS AND NOT OTHERS.

SOME ARE HIGHLY MOTIVATED TO SEEK INFORMATION OTHERS – NO INTEREST.

SO ARROW/FOCUS TOWARDS UNDERSTANDING CONSUMER INVOLVEMENTSO ARROW/FOCUS TOWARDS UNDERSTANDING CONSUMER INVOLVEMENT

• 1985: CHANGED TASTE…MORE SWEETER.– RESULT: OLD COKE DRINKERS…CLASS-ACTION

SUIT.AGAINST COCA COLA.– BOTTLER`S JOINED IN DEMAND---FOR COKE RETURN.– MILLION DOLLARS SPENT TO CORRECT IT.

– WHAT A MISSS…………….– CONSUMER HAD STRONG EMOTIONAL INVOLVEMENT

WITH ORIGINAL COKE.

• MEANS: A CONSUMER PERCEPTION OF IMPORTANCE OR PERSONAL RELEVENCE FOR AN OBJECT, EVENT OR ACTIVITY.

• INVOLVEMENT AS 2 ASPECT:

CONTINUEE…….

SO INVOLVEMENT COGNATIVEAFFECTIVE(this effect more

on behaviour-> decision making)

• Felt involvement: consumer experience only at certain times and on certain occasions.

• I DO NOT WANT TO BUY HOUSE• I NEED TO BUY HOUSE: AS MY PERSONAL

RELEVANCE/END KNOWLEDGE OF THE PRODUCT ACTIVATED.

Continue……..

SO AS A MARKETER:::::::::: SEE FOCUS INVOLVEMENT OF CUSTOMERS.

WHAT CUSTOMER CONSIDER TO BE PERSONALLY RELEVANT

IS IT A PRODUCT, BRAND, AN OBJECT, A BEHAVIOUR, EVENT, SITUATION, ENVIRONMENT.

SO AS A MARKETER:::::::::: SEE FOCUS INVOLVEMENT OF CUSTOMERS.

WHAT CUSTOMER CONSIDER TO BE PERSONALLY RELEVANT

IS IT A PRODUCT, BRAND, AN OBJECT, A BEHAVIOUR, EVENT, SITUATION, ENVIRONMENT.

SEE WHAT END KNOWLEDGE/BASES IS IMPORTANT FOR INVOLVEMENT:SEE WHAT END KNOWLEDGE/BASES IS IMPORTANT FOR INVOLVEMENT:

COGNITION JUSTINE PAUL AND HAWKINGS BOOK)

• HUMAN – SOPHISTICATED SYSTEM• PERFORMS HIGHER MENTAL PROCESSESS :

» UNDERSTANDING» PLANNING» DECDIDING» THINKING

SO IT REFERS TO ALL THESE MENTAL PROCESSES, AS WELL AS THOUGHTS AND MEANI G PRODUCE BY COGNITIVE SYSTEM.

ENVIRONMENTENVIRONMENT

AFFECTIVE SYSTEM

COGNITIVE SYSTEM

AFFECTIVE RESPONSESAFFECTIVE RESPONSES COGNITIVE RESPONCESCOGNITIVE RESPONCES

EMOTIONSFEELINGMOODSEVALUATION

KNOWLEDGEMEANINGBELIEFS

• LETS SEE HOW ARE 2 INTERRELATED:• YOU PRODUCE A STIMULI:::::: MY FIRST

AFFECTIVE RESPONSE WILL BE GENERATED::::WHICH IN TURN CAN BE INTERPRETED BY COGNITIVE SYSTEM.– Example: ‘ I WONDER WHY I FEEL SO HAPPY’– EXAMPLE 2: I DON`T LIKE THIS INSURANCE AGENT

BECAUSE HE DONOT POSSESS GOOD KNOWLEDGE OF INVESTMENTS.

EXAMPLE 2: I DON`T LIKE THIS INSURANCE AGENT BECAUSE HE DONOT POSSESS GOOD KNOWLEDGE OF INVESTMENTS.

• NOW AFTER YOU KNOW THAT THIS INSURANCE AGENT DONOT POSSESS GOOD INVESTMENT KNOWLEDGE YOU WILL TAKE DECISION:– MEANING YOUR COGNITIVE INTERPRETATION

LED TO YOUR DECISION MAKING.“ I WON`T BUY INSURANCE FROM THIS PERSON”

STIMULI—AFFECTIVE COGNITIVE: INTERPRETATION DECISION MAKING.

• NOW AFTER YOU KNOW THAT THIS INSURANCE AGENT DONOT POSSESS GOOD INVESTMENT KNOWLEDGE YOU WILL TAKE DECISION:– MEANING YOUR COGNITIVE INTERPRETATION

LED TO YOUR DECISION MAKING.“ I WON`T BUY INSURANCE FROM THIS PERSON”

STIMULI—AFFECTIVE COGNITIVE: INTERPRETATION DECISION MAKING.

PURCHASE BEHAVIOUR IS COMPLEX FUNCTION OF:::::::::::::

AFFECTIVE AND COGNITIVE

• AFFECTIVE: SOMETHING PEOPLE FEEL.– I AM ANGRY– RAHUL IS IN GOOD MOOD– ROHIT FFELS BORED

• ALL ABOVE FELT IN THE BODY

CONGNITIVE: PEOPLE HAVE THOUGHTS AND BELIEFS( ALL MENTAL PROCESSES)

- YOUR MOTHER BELIVES DIET PEPSI IS NOT FATTENING:

ALL ABOVE NOT FELT IN THE BODY

AFFECTIVE SYSTEM: IS

• LARGELY REACTIVE, THIS SYSTEM RESPONDS IMMEDIATELY AND AUTOMATICALLY:– YOUR ATTRACTIVE. TOWARDS COLOR

A PERSON HAVE LITTLE DIRECT CONTROL OVER THEIR AFFECTIVE RESPONCES.

5 BASIC CHARACTERISTIC OF AFFECTIVE SYSTEM

1. IS LARGELY REACTIVE2. PEOPLE HAVE LITTLE DIRECT CONTROL OVER

THEIR AFFECTIVE RESPONCES.– EXAMPLE: YOU ARE INSULTED BY A RUDE SALE

CLERK:• YOU DO MOVING TO ANOTHER ENVIRONMENT OR

COMPLAIN TO MANAGER:– THIS WILL DECREASE YOUR NEGETIVE AFFECT YOU

CONTINUE………..

3. RESPONCESES FELT PHYSICALLY IN THE BODY.: “BUTTERFLIES IN YOUR STOMACH” ASSOCIATED WITH EXCITEMENT OF MAKING AN IMPORTANT PURCHASE, A NEW CAR . HOUSE ETC.

4. CAN RESPOND TO VIRTUALLY ANY TYPE OF STIMULAS.

• PHYSICAL OBJECT: I LOVE MY SONY STEREO SYSTEM.

• I DISLIKE TALKING TO THE SALES PERSON IN THE ELECTRONIC STORE(SOCIAL SITUATION)

– AFFECTIVE SYSTEM CAN ALSO RESPOND TO THEIR OWN BEHAVIOUR:• I ENJOY PLAYING MY STEREO SYSTEM

CONTINUE….

• 5. CONSUMER AFFECTIVE SYSTEM CAN RESPOND TO THOUGHTS PRODUCE BY THEOR COGNITIVE SYSTEM,– “ I LIKE TO THINK ABOUT STEREO SYSTEM”

CONGNITION:

• ALL MENTAL PROCESSESS. THOUGTS AND MEANING`S PRODUCE BY THE COGNITIVE SYSTEM. LIKE:– 1.UNDERSTANING: INTERPRETING Or

DETERMINING THE MEANING OF SPECIFIC ASPECTS OF ONE`S OWN ENVIRONMENT.

– 2. EVALUATING: JUDGING WHETHER AN ASPECT OF THE ENVIRONMENT, OR ONE`S OWN BEHAVIOUR IS GOOD OR BAD., POSITIVE , NEGETIVE, FAVOURABLE OR UNFAVOURABLE.

3.PLANNINGDETERMING HOW TO SOLVE PROBLEM TO REACH A GOAL4.DECIDING COMPARING ALTERNATIVES AND SELECTING THE BEST.5.THINKING COGNITIVE ACTIVITY THAT OCCURS DURING ALL THESES PROCESSES( THINKING PROCESS OF ALL ABOVE:

FUNCTION OF C. SYSTEM: TO INTERPRET, MAKE SENCE OF AND UNDERSTANDING SIGNIFICANT ASPECTS OF THEIR PERSONAL EXPERIENCES:

MARKETING IMPLICATIONS

• BOTH AFFECT AND COGNITION IMPORTANT FOR UNDERSTANDING C.B.

• OUR TARGET IS TO PROVIDE SATISFACTON HOW THIS WILL COME:

• SATISFACTION HAVE BOTH ELEMENTS OF AFFECT(FEELING ,PLEASED, LIKING THE PRODUCT OR SERVICE) AND COGNITION(KNOWING WHY YOU LIKE THE PRODUCT.:

BRAND IMAGE: EXAMPLE

• BRAND IMAGE INCLUDES: – KNOWLEDGE AND BELIEF(COGNITIVE) ABOUT

• PRODUCT ATTRIBUTES• CONSEQUENCES OF BRAND USE• APPROPRIATE CONSUMPTION SITUATIONS

AS WELL AS FEELING AND EMOTIONS(AFFECTIVE RESPONSES) ASSOCIATED WITH THE BRAND.

• HOW TO SEARCH: INTERNET OTHER WAYS.

INFORMATION SEARCH PROCESS: FROM HAWKINGS CHAPTER 15-16

COMPANIES NOT ONLY FOCUSING ON NOT ONLY PRODUCT INFORMATION.

EXAMPLE: REVLON::::PRODUCT INFO EXTENSIVE CORPORATE INFO

BEAUTI INFO

TICKETS COMPANY: MOVIE TICKETS , TRAILOR, NE MOVIES REVIEWS ETC

COMPANIES NOT ONLY FOCUSING ON NOT ONLY PRODUCT INFORMATION.

EXAMPLE: REVLON::::PRODUCT INFO EXTENSIVE CORPORATE INFO

BEAUTI INFO

TICKETS COMPANY: MOVIE TICKETS , TRAILOR, NE MOVIES REVIEWS ETC

• EX: YOUR TELEVISION QUIT WORKING• EX: YOU FELT REST LESS• EX: YOUR SCOOTER IS CHOKED:

• YOU TRY TO REMEMBER WHAT YO DID OR DIAL EARLIER IN THOSE SITUATIONS.

– OR– YOU WILL TRY TO FIND OUT OR GET ADDITIONAL INFO: I WILL CHECK THE YELLOW PAGES TO SEE WHO REPAIRS MY

BRAND OF TELEVISION.

NATURE OF INFORMATION SEARCH

• INTERNAL AND EXTERNAL:– UNDER INTERNAL: ONCE PROBLEM IS

RECOGNISED: YOU USE LONG TERM MEMORY TO FING SOLUTIONS.

– IF YOU DO NOT REACH SOLUTION THANT YOU GO FOR EXTERNAL SEARCH.

– EXAMPLE: YOU CATCH COLD YOU BUY COLDRIN:::::::: SEARCH FINICHES HERE.

2 TYPES OF SEARCH

• SOUGHT EXTERNAL INFO:– OPINION, FEELING OF FRIEND, RELITIVE, NEIGHBOURS

ETC.– PROFESSIONAL INFO-> PAMFLETS, WEBSITE, BOOKS ,

ARTCLES– DIRECT EXPERIENCE WITH THE PRODUCT THROUGH

INSPECTION, TRIAL OR OBSERVATION.– MARKETER-GENERATED INFORMATION PRESENTED IN

ADV, WEBSITE, SALES PERSONNAL

ONGOING SEARCH: EXAMPLE MOBILE YOU KEEP ON LOOKING FOR NEW PRODUCT WITHOUT RECOGNISED PROBLEM

OTHERWISE:

INFORMATION SEARCH IN CONSUMER DECISION.

WHAT EVALUATIVE CRITERIA ARE NEEDED

WHAT SOLUTIONS EXITS

WHAT IS THE PERFORMANCE OF EACH SOLUTION ON EACH EVALUATIVE CRITERIOR

INFORMATION SEARCH TERMINATED

CAN A DECISION BE MADE

INFORMATION SEARCH CONTINUOUS

• EXAMPLE LAPTOP:• IF YOU KNOW YOUR NEEDS: THIS FORMS

YOUR CRITERIA– Else you have little experience -> go for External

Search.– Your friends, PC magazine, sale person, website other.

EVALUATION CRITERIA

So CRUX IS: YOU MAY USE INTERNAL AND EXTERNAL FOR SEARCH FOR DETERMINATION OF APPROPRIATE EVALUATIVE CRITERIA.

YOU DECIDE EVALUATIVE CRITERIAYOU DECIDE EVALUATIVE CRITERIA

AWARENESS SET

IBMAPPLENECTOSHIBACOMPAQHPFUJITSUSONY

AWARENESS SET

IBMAPPLENECTOSHIBACOMPAQHPFUJITSUSONY

EVOKED SET: IBMAPPLECOMPAQ

INERT SETTOSHIBASONYHPNEC

INEPT SETFUJISTUINEPT SETFUJISTU

1ST PREFERENCE WILL BUY FROM THIS LOT1ST PREFERENCE WILL BUY FROM THIS LOT

HE WILL BUY FROM THIS SET IF EVOKED SET IS NOT AVAILABLE.

TOTALLY NOT INTERESTEDTOTALLY NOT INTERESTED

CRUX: MARKETER NOT ONLY TO TARGET AWARENESS SET BUT ALSO EVOKED & INERT SETCRUX: MARKETER NOT ONLY TO TARGET AWARENESS SET BUT ALSO EVOKED & INERT SET

INFORMATION SOURCES FOR A PURCHASE DECISIONINFORMATION SOURCES FOR A PURCHASE DECISION

INFORMATION SOURCES

PASSIVELY ACQUIREDPASSIVELY ACQUIRED ACTIVELY ACQUIREDACTIVELY ACQUIRED

ACTIVELY ACQUIREDACTIVELY ACQUIRED

EXTERNAL INFORMATION

INTERNAL INFORMATION

PAST SEARCHESPAST SEARCHES

PERSONAL EXPERIENCESPERSONAL EXPERIENCES

LOW INVOLVEMENT LEARNING

INDEPENDENTGROUP , PERSONALCONTACT, MARKETER INFO, EXPERIMENTAL.

1. MAINTENANCE STRATEGY2. DISRUPT STRATEGY3. CAPTURE STRATEGY4. INTERCEPT STRATEGY5. PREFERENCE STRATEGY6. ACCEPTANCE STRATEGY

MARKETING STRATEGIES BASED ON INFORMATION SEARCH PATTERN

• YOU HAVE TO MAINTAIN IT: BRAND IS PURCHASED HABITUALLY BY TARGET AUDIENCE.– YOU ENSURE:

• DISTRIBUTION(AVOIDING OUT OF STOCK)• REINFORCEMENT ADVERTISING• CONSISTANT ATTENTION TO PRODUCT QUALITY

MAINTENANCE STRATEGY

• WHEN YOUR BRAND IS NOT PART OF EVOKED SET.• YOUR JOB IS TO:

– DISRUPT THE EXISTING DECISION PATTERN– LOW INVOLVEMENT LEARNING– IN LONG RUN A MAJOR PRODUCT IMPROVEMENT

IN SHORT RUN ACCOMPANIED BY ATTENTION ATTRACTING ADVERTISING AIMED AT BREAKING HABITUAL DECISION MAKING.

DISRUPT STRATEGY

• WHEN YOUR EVALUATIVE CRITERIA IS PRICE AND AVAILABILITY.– YOUR FOCUS:

• TO CAPTURE LaRGE SHARE OF THEIR PURCHASE.• KNOW WHERE THEY SEARCH AND WHAT

INFORMATION

SO FOCUS MORE IN LOCAL MEDIA, POINT OF PURCHASE.

3. CAPTURE STRATEGY

• YOU(MARKETER): INTERCEPT THE CONSUMER DURING THE SEARCH FOR INFORMATION ON BRANDS IN THE EVOKED SET.

• YOU EMPASISE--:> LOCAL MEDIA WITH CO-OPERATIVE ADVERTISING– POINT OF PURCHASE WITH DISPLAY– SHELF SPACE– PACKAGE DESIGN AND SO FORTH.

4. INTERCEPT STRATEGY.

• AS IN EVOKED SET AS NO. OF BRANDS ARE THERE.

• HOW YOU DIFFERENT FROM OTHERS, SO ONLY CAPTURE STRATEGY NOT ENOUGH.

• SO YOU(MARKETER) NEED TO STRUCTURE INFORMATION.

• CAMPAIGN RESULT – BRAND BEING PREFFERED BY MEMBERS OF THE TARGET MARKET.

5. PREFERENCE STRATEGY

• MORE OR LESS SIMILAR TO PREFERENCE STRATEGY.• TARGET MARKET NOT INTERESTED TO ADDITIONAL

INFO? BUT MAY BE VERY IMP TO MARKETER.• YOUR(MARKETER) TASK IS TO ATTRACT CONSUMER->

ATTENTION MOTIVATE THEM LEARN ABOUT BRAND.• EX: CHRYSLER IN ADDITION TO PRODUCT IMPRO AND HEAVY

ADVER LIETRALLY PAID CONSUMER TO SEEK INFORMATION ABOUT HIS CARS.

6. ACCEPTENCE STRATEGY

• ABOVE IS AN EXAMPLE OF VARIOUS TECHNIOQUE FOR EVALUATIVE CRITERIA AND DECISION RULES.

1. THEY USED: CONSUMER USAGE & ATTITUDE SURVEY.

• WHAT PURPOSE THE PRODUCT IS USED• FREQUENCY OF USE, BRAND OWNERSHIP• BRAND AWARENESS, ATTITUDE TOWARDS

PRODUCT.

EXAMPLE: SUNBEAM APPLIANCE COMPANY FOOD PROCESSOR

2. A CONSUMER ATTRIBUTE AND BENEFIT SURVEY:TO PROVIDE IMPORTANT RATING OF PRODUCT

ATTRIBUTE AND BENEFIT FROM PRODUCT CATOGARY.DEGREE TO WHICH EACH BRAND PROVIDES VARIOUS

ATTRIBUTE AND BENEFITS.3. CONJOINT ANALYSIS: MEANS: RELATIVE IMPORTANCE EACH CONSUMER ATTACHES TO VARIOUS LEVELS

OF EACH POTENTIAL PRODUCT FEATURES.

CONTINUE…

• PREFERENCE FOR PRODUCT FEATURES AND THEIR WILLINGNESS TO TRADE ONE FEATURE FOR MORE OF ANOTHER FEATURE.

4. PRODUCT LINE SALES AND MARKET SHARE SIMULATIONS:( TO DECIDE BEST SET OF PRODUCT TO BRING TO MARKET)

-> BASED ON PREFERENCE STRUCTURES AND SIZES OF THE MARKET SEGMENT AS PER STEP 3 & PERCEIVED CHARACTERISTICS OF COMPETING BRANDS, THE MARKET SHARE OF VARIOUS SUNBEAM PRODUCTS SETS WAS ESTIMATED USING COMPUTER SIMULATION.

CONTINUE…

• EXISTING PRODUCT LINE WAS REPLACED BY 4 NEW MODELS( DOWN FROM 6).

• INCREASED MARKET SHARE,• REDUCED COSTS,• INCREASED PROFITABILITY.

RESULT OF THIS WORK::::::

ALTERNATIVE EVALUATION AND SELECTION PROCESSS

EVALUATIVE CRITERIAEVALUATIVE CRITERIA

IMPORTANCE OF CRITERIAIMPORTANCE OF CRITERIA

EVALUATION OF ALTERNATIVES ON EACH CRITERIA

ALTERNATIVES CONSIDEREDALTERNATIVES CONSIDERED

DECISION RULES APPLIEDDECISION RULES APPLIED

ALTERNATIVE SELECTEDALTERNATIVE SELECTED

3 TYPES OF CONSUMER CHOICE PROCESSESS:1.AFFECTIVE CHOICE2.ATTITUDE BASED3.ATTRIBUTE BASED

• ARE VARIOUS DIMENSIONS, FEATURES OR BENEFITS A CONSUMER LOOKS FOR IN RESPONSE TO A SPECIFIC PROBLEM.

• COMPUTER: BEFORE PURCHASING COST, SPEED, MEMORY, O S, DISPLAY , MEMORY , WARRANTY WOULD BE YOUR EVALUATIVE CRITERIA FOR YOU FOR OTHER IT CAN BE DIFFERENT.

• EX: WANT TO AVOID CAVATIES USE TOOTHPASTE CONTAINING FLOURIDE. HERE FLOURIDE IS EVALUATIVE CRITERIA ASSOCIATED WITH THE BENEFIT OIF CAVITY PREVENTION.

DEFINE EVALUATIVE CRITERIA

HOW IT IS RELATED TO ME?

• A TYPICAL PRODUCT FEATURE OR BENEFIT ASSOCIATED WITH EITHER BENEFITS DESIRED BY CUSTOMER OR THE COST THEY MUST INCURR.

• REMEMBER 3 THINGS YOU(MARKETER) BEFORE YOU MAKE STRATEGY……

1. WHAT EVALUATIVE CRITERIA ARE USED BY THE CONSUMERS.2. HOW THE CONSUMER PERCEIVES THE VARIOUS

ALTERNATIVES ON EACH CRITERION.3. THE RELATIVE IMPORTANCE OF EACH CRITERION.

NATURE OF EVALUATIVE CRITERIA?

CRITERION CONSUMER A CONSUMER B CONSUMER C

PRICE 1 6 3

PROCESSOR 5 1 4

DISPLAY QUALITY 3 3 1

MEMORY 6 2 5

WEIGHT 4 4 2

AFTER SALE SUPPORT

EXAMPLE: NOTEBOOK: MEASUREMENT OF EVALUATIVE CRITERION

IMPORTANCE RANKS:MORE CONCERNED= 1, LEAST CONCERNED = 2

• DIRECT METHODS• INDIRECT METHOD.

– DIRECT METHOD: ASKING CONSUMER DIRECTLY AS THE CASE OF LAPTOP FEATURE OR IN CASE OF SUNBEAM PRODUCT COMPANY.

– INDIRECT: CONSUMER DO NOT SAY OR CANNOT STATE THEIR EVALUATIVE CRITERIA.

– INDIRECT METHODS SUCH AS PPROJECTIVE TECHNIQUES 1. ASSOCIATION TECHNIQUE

– 2. COMPLETION TECHNIQUE. 3. CONSTRUCTION TECHNIQUE.

DETERMINATION OF WHICH EVALUATIVE CRITERIA ARE USED. HAWKINGS: 627

• 1. ASSOCIATION TECHNIQUE:• a WORD ASSOCIATION• B SUCCESSIVE WORD ASSOCIATION• C ANALYSIS AND USE• 2. COMPLETION TECHNIQUE• A SENTENCE COMPLETION• B STORY COMPLETION• 3. CONSTRUCTION TECHNIQUE• A CARTOON TECHNIQUE• B THIRD PERSON TECHNIQUE( CONSUMER TELL WHY” AN AVERAGE

WOMEN”. MOST DOCTORS, PEOPLE IN GENERAL• C PICTURE RESPONSE.

INDIRECT TECHNIQUES(PROJECTIVE TECHNIQUES): PAGE 402 HAWKINS

• INVOLVES: CONSUMER LOOKING AT POSSIBLE PAIRS OF BRAND AND INDICATING WHICH PAIR IS MOST SIMILAR, SECOND MOST SIMILAR AND SO ON.

• HELP OF COMPUTER IS USED FOR THIS PLOTING.

• THIS HELPS THE MARKETER TO KNOW/UNDERSTAND CONSUMER`S PERCEPTION AND THE EVALUATIVE CRITERIA THEY USE TO DIFFERENTIATE BRANS.

PERCEPTUAL MAPPING: INDIRECT TECHNIQUE FOR DETERMINING EVALUATIVE CRITERIA.

EXAMPLE: PERCEPTUAL MAPPING OF BEER BRAND PERCEPTION.

HIGH PRICE, HIGH QUALITY, HIGH STATUS

LIGHT TASTE, LESS CALORIES,LESS FILLING

HEAVY TASTE, MORE CALORIES, MORE FILLING

LOW PRICE, LOW QUALITY, LOW STATUS

*MICHELOB LIGHT

*BUD LIGHT *MILLER LIGHT

*HEINEKEN*CORONA

*STROHS

•OLY GOLD

•HAMMS

*BUSCH

*MILWAUKEE`S BEST

*GENERIC BEER

• SOME METHODS USED: 1.RANK ORDER2.SEMANTIC DIFFERENTIAL SCALES3.LIKERTS SCAL CHECK FROM HAWKINGS: TABLE 11-1

FOR DETERMINING HOW CONSUMER PERCEIVES VARIUOS ALTERNATIVE ON EACH CRITERION

• DIRECT METHOD: USE CONSTANT SUM

• INDIRECT METHOD: USE CONJOINT ANALYSIS.• CONJOINT: HERE CONSUMER IS PRESENTED

WITH A SET OF PRODUCTS or PRODUCT DESCRIPTIONS IN WHICH THE EVALUATIVE CRITERIA VARY.

• EXAMPLE: CONSUMER PRESENTED WITH 24 NOTE BOOKS THAT VARY ON FOUR CRITERIA.

DETERMINATION OF RELITIVE IMPORTANCE OF EVALUATIVE CRRITERIA

COSUMER MOTIVATION(From SL Gupta)

• NEEDS AND WANTS:– EXAMPLE: URBAN GUY AND RURAL GUY

– (LUNCH BREAK)BOTH ARE/FEEL HUNGRY: BOTH WANT FOOD TO SATISFY HUNGER.

– URBAN GO FOR PIZZA– RURLA PARANTHAS

• IN BOTH CASE WANT IS SAME BUT NEED IS DIFFERNET TO SATISFY WANT.

• ITS CLEAR THAT NEEDS IS INFLUENCED BY ONE`S SURROUNDING, FAMILY, FRIENDS, LEARNING , EXPERIENCE.

NEEDS AND ITYS TYPES

• BIOGENIC: NEED FOR AIR,WATER,SUNLIGHT• PHYSICAL: NEDD FOR FOOD, SHELTER(ROTI,

KAPDA AND MAKAN)• PSYCHOGENIC(NEEDS ACQUIRED IN

PROCESS OF BECOMING A MEMBER OF A PARTICULAR SOCIETY.

CATOGRASING NEED IN MODERN SOCIETIES:

a. NEED FOR AFFLIATION:– EX: “ MIL BAYTHENGE TEN YAAR,APP,MAIN AUR

NAYA BAGPIPER”• FOCUS: ON DESIRE FOR FRIENDSHIP, TO BE PART OF

CERTAIN GROUP, SENCE OF BELONGING.

VERY IMPORTANT THESE DAYS: LOT OF GROUP ACTIVITIES ARE PROMOTED CLUB ACTIVITY, SUNDAY SPORT, LADIES KITTY PARTY.

HAR EK FRIEND ZAROORI HOTA HAI(AIRTEL): GROUP ACTIVITIES.

NEEED FOR POWER.

B. RELATES TO INDIVIDUSL DESIRE TO CONTROL HIS/HER ENVIRONMENT.

EGO NEED, DESIRE TO EXERCISE POWERON A PERSON OR OBJECT.

EXAMPLE: ITC CIGARETTE AD EMPHASISES THE POWER NEED.

C. NEED FOR UNIQUENESS

• A PRODUCT THAT PROMISES TO ACCENTUATE THE CONSUMER`S DISTINCTIVE QUALITY WILL FALL IN THIS CATOGARY.– : “ UNIQUE”-> FEELING BY WEARING CLOTHES OF

UNISTYLE.

HIERARCHY OF NEEDS:

• BY . Dr ABRAHAM MASLOWS:

EGO NEEDS,(PRESTIGE,STATUS, SELF RESPECT, ACCOMPLISHMENTS)EGO NEEDS,(PRESTIGE,STATUS, SELF RESPECT, ACCOMPLISHMENTS)

SELF ACTUALISATION(SELF FULLFILMENT ENNRICHING EXPERIENCE)SELF ACTUALISATION(SELF FULLFILMENT ENNRICHING EXPERIENCE)

SOCIAL NEEDS(SENCE OF BELONGINGNESS, FRIENSHIP, AFFECTTION)

SAFETY AND SECURITY(PROTECTION, ORDER, STABILITY)

PHYSIOLOGICAL NEEDS(FOOD, WATER,AIR,SHELTER)

SELF ACTUALISATION NNED

• I DESIRE TO JOIN THE ARMED FORCES-->:• EXAMPLE: MUSICIAN PRACTISING SEVERAL

HOURS A DAY FOR YEARS TO PERFECT HIMSELF

• EXAMPLE: PLAYER WORKING SINGLE MINDED FOR MANY YEARS TO EXCEL IN HIS SPORT.

• ( UNDER STANT ALL THE NEEDS TO MAKE CORRECT MARKETING STARTEGIES)

MOTIVATION

• WHAT IS THIS: LATIN WORD “ MOVERE” MEANS “ TO MOVE”.

• IT’S A PSYCHOLOGICAL CONCEPTH THAT MOBILISES BODILY ENERGY AND DIRECTS IT IN SELECTIVE FASHION TOWARDS GOALS USUALLY LOCATED IN THE EXTERNAL ENVIRONMENT.

• IS AN INNER URGE THAT IMPLIES AN INDIVIDUAL TO ACT OR NOT TO ACT IN CERTAIN WAYS.

• EACH AND EVERY PART OF IT IS GUIDED BY MOTIVES– CONSCIUOS OR OTHERWISE.

AS A MARKETER:

MOTIVATION: 2 COMPONENTS

1. MECHANISM TO AROUSE BODILY ENERGY2. FORCE THAT PROVIDED DIRECTION TO

BODILY ENERGY.EXAMPLE: HUNGER IS AN AROUSED FEELING

WHICH CREATES RESTLESSNESS AND BODILY TENSION:

WHILE THE DIRECTION TOWARDS A PARTICULAR FOOD WILL BRING US BACK TO A STATE OF REST FREEING US OF TENSION.

UNFULLFILLED NEEDSUNFULLFILLED NEEDS

DRIVE STRENGTHDRIVE STRENGTH

TENSIONTENSION DRIVE

DIRECTIONDRIVE DIRECTION

BEHAVIOURBEHAVIOUR

GOAL FULLFILMENTGOAL FULLFILMENT

CULTURAL BACKROUND

TENSION REDUCTION

PERSONAL BACKROUNDPERSONAL BACKROUND

COGNATIVE PROCESSESSCOGNATIVE PROCESSESS

PAST LEARNINGPAST LEARNING

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