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William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/Irwin

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Presentation on theme: "William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/Irwin"— Presentation transcript:

1 Chapter 5 Marketing and Consumer Behavior: The Foundations of Advertising
William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Chapter Overview The relationship between marketing activities and consumer behavior

3 Chapter Objectives Define marketing & relate consumer needs and product utility Identify key participants in the marketing process Explain why consumer behavior is to IMC strategy Describe motives behind consumer purchases Discuss interpersonal influences on consumer behavior Outline the psychological processes in human behavior Explain nonpersonal influences on consumer behavior

4 Know the Consumer Consumer behavior — the mental and emotional processes and the physical activities of people who purchase and use goods to satisfy needs and wants

5 Marketing Context of Advertising
Conception Pricing Promotion Distribution Advertising

6 Q. 1. What are the key concepts in Marketing?

7 Customer Needs / Product Utility
Functional Needs Psychological Wants Utility Need Satisfaction

8 Goal of Marketing & Advertising
Perception Exchange Satisfaction

9 Q. 2. Who are the participants in the Marketing process?

10 Marketing Participants: Customers
Total Market Centers of influence Prospective customers Current customers

11 Market Types Consumer Business Transnational or Global Government
Regional or National Local Consumer Business Government

12 Marketing Participants: Market
Customers Markets Marketers

13 Q. 3. What are the steps in the decision making process?

14 Consumer Decision Process

15 Q. 4. What are the three components of the Personal Process in consumer behavior?

16 Consumer Decision Process

17 Q. 5. What are the key elements in the perception process?

18 Consumer Perception Process

19 Persuasion Persuasion — change in belief, attitude, or behavioral intention is caused by promotion communication

20 Elaboration Likelihood Model

21 Q. 6. Define Learning.

22 Learning Learning — relatively permanent change in thought process or behavior that occurs as a result of reinforced experience.

23 Q. 8. What are the effects of learning?

24 Results of Learning Loyalty Habit Interest Attitude

25 Consumer Motivation Process
Motivation: underlying forces driving decisions Needs, basic & instinctive Wants, learned during lifetime

26 Q. 9. What are the five stages in Maslow’s hierarchy of needs?

27 Maslow’s Hierarchy of Needs

28 Rossiter & Percy’s Fundamental Motives
Consumer Motivation Rossiter & Percy’s Fundamental Motives Negative Motives: problem removal or avoidance Positive Motives: benefit, bonus, or reward

29 Q. 10. What are the interpersonal influences on consumer behavior?

30 Influences on Consumer Behavior
Interpersonal Family Reference Groups & Opinion Leaders Society

31 Influences on Behavior
U.S. Army ad focused on a Spanish- speaking audience

32 Q. 11. What are the nonpersonal influences on consumer behavior?

33 Influences on Consumer Behavior
Nonpersonal Time Place of Sale Environment

34 Influences on Behavior
Red Cross ad focused on its presence during an earthquake disaster

35 Purchase Decision Evoked Set: Smart Phones iPhone Android Blackberry
Evaluative Criteria Features Style Cost Service Cognitive Dissonance Was it worth the money? Does the data plan work for me? Could I have found a better price?

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