1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 5 Marketing and Consumer Behavior: The Foundations of Advertising

2. 5-2 Chapter Overview The marketing process and the role of advertising and other marketing communications tools

3. 5-3 Chapter Objectives Define marketing & explain advertising’s role in the market Discuss influences on consumer behavior Discuss product utility and the link between utility and consumer needs Identify key participants in the marketing process Outline the consumer perception process & explain why “perception is everything” Describe motives behind consumer purchases Explain how advertisers deal with cognitive dissonance

4. 5-4 Marketing Context of Advertising Marketing ConceptionPricingPromotionDistribution Advertising

5. 5-5 Customer Needs / Product Utility Needs Functional Psychological Place Time Possession Task Utility Form

6. 5-6 Goal of Marketing & Advertising Satisfaction PerceptionExchange

7. 5-7 Marketing Participants: Customers Total Market Centers of influence Prospective customers Current customers

8. 5-8 Market Types Transnational or Global Regional or National Local Business Consumer Government

9. 5-9 Marketing Participants: Market Markets Customers Marketers

10. 5-10 Consumer Behavior: Decision Process

11. 5-11 Consumer Perception Process

12. 5-12 Consumer Perception Process French advertiser SHS capitalizes on young consumers’ self-perception

13. 5-13 Consumer Behavior: Learning Theories

14. 5-14 Elaboration Likelihood Model

15. 5-15 Consumer Behavior: Results of Learning Attitude Habit Interest Loyalty

16. 5-16 Consumer Motivation Process Needs, basic & instinctive Wants, learned during lifetime Motivation: underlying forces driving decisions

17. 5-17 Consumer Motivation Process Taco Bell hints at several levels of needs

18. 5-18 Maslow’s Hierarchy of Needs

19. 5-19 Consumer Motivation Rossiter & Percy’s Fundamental Motives Negative Motives: problem removal or avoidance Positive Motives: benefit, bonus, or reward

20. 5-20 Consumer Motivation Negative motivation in Kids and Cars ad urges readers to adopt safe behaviors

21. 5-21 Influences on Consumer Behavior Nonpersonal Interpersonal Family Society Reference Groups & Opinion Leaders Time Place of Sale Environment

22. 5-22 Nonpersonal Influences on Behavior U.S. Army ad focused on a Spanish- speaking audience

23. 5-23 Purchase Decision Evoked Set: mp3 Players  Apple  Microsoft  Rio  SanDisk

24. 5-24 Purchase Decision Evaluative Criteria  Capacity  Durability  Battery life  Ease of obtaining and loading music

25. 5-25 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?