MT 219 Marketing Unit Three Global Marketing and Consumer Behavior Note: This seminar will be recorded by the instructor.

Review of Unit Two How did it go? Questions or concerns? Success tip: Post early in the week in discussion. Come back and post at least two more times, adding subject-related comments. Respond to your classmates. Use outside research to enhance and support your posts. You must post at least three times in each discussion. Your posts must contribute to the learning of the class – they must be substantive.

In this unit we will cover Global Marketing -International environmental forces -Trade Alliances, markets and agreements Consumer Behavior- -Involvement levels and their impact on problem solving -The consumer buying decision process -Situational, psychological and social influences

International Marketing Defined in text as: “Developing and performing marketing activities across national boundaries.” Increasingly, international marketing is a way firms can ensure marketing success when domestic markets have been saturated.

International Environmental Forces The marketing mix must be adjusted to be successful in international markets. -Sociocultural- extremely important – products that are socially or culturally inappropriate are unlikely to be successful. -Economic- Marketers must keep price in line with competition and, consumer expectations and ability to buy. -Political – Marketers must ensure they do not undertake controversial activities that will result in political fallout. This include relations with labor unions -Legal- Marketers must ensure they conform to the requirements of the countries they do business in. -Competitive- The company needs to undertake competitive activities that are considered suitable in international markets. Laws vary. -Technological- Marketers should not assume their technology is compatible with people’s or country’s needs.

Trade Alliances and Agreements There are several main groups, but many countries also have their own bilateral trade agreements -NAFTA- Trade agreement between Mexico, Canada and the US, -European Union- Higher form of agreement that joins member states in trying to develop a common economic partnership. -APEC- Asian alliance that seeks to cooperate on common trade issues. -MERCOSUR- South American- The goal is a common market like Europe. Currently an alliance. -GATT- Group of countries that agree to certain rules and agree to a process for settling trade disputes so they do not spiral out of control. The WTO was created in Uruguay Round of GATT to promote free trade.

Benefits of trade agreements Ease the flow of trade Reduce barriers to trade – tariffs, regulations Standardize currency, measurements Recognize shared economies, markets, needs

Consumer Behavior The buying behavior of people who purchase products for personal or household use and not for business purposes We study consumer behavior in order to -understand the major influences on what, where, when and how consumers buy -be in a better position to develop marketing strategies

High Involvement vs. low involvement Intensity Importance Risk assessment Enduring vs. Situational involvement

Types of buying behavior Routinized response behavior frequently purchased, familiar, lost cost items Limited Problem Solving behavior unfamiliar brand in familiar category Extended Problem Solving unfamiliar, expensive or infrequently purchased items

Consumer Decision Process Problem Recognition Information Search Internal External Evaluation of Alternatives consideration set evaluative criteria Purchase Post Purchase Evaluation Cognitive Dissonance

Situational Influences Physical surroundings Social surroundings Time perspective Reason for purchase Buyers momentary mood and condition The reason stores try to create a certain ambiance Plus – concern for the opinion of others

Psychological influences - Perception Selective Exposure Selective Distortion Selective Retention

Learning Change in behavior resulting from experience and information Begins with -Need -Cue- can be turned on by any sense -Response -Reinforcement -Generalization

Attitudes Have Direction and Intensity Hard to Change, but do-able A belief linked to an emotion

Personality and Self-Concept Results in consistent patterns of behavior Includes purchase behavior Many times these may be subconscious

Lifestyle Activities Interests Opinions

Social Influences Roles Socialization and Family Reference Groups membership aspiration disassociative Opinion Leaders

Social Classes Open groups of individuals with similar social rank -Education, Occupation, and Income -Upper -Middle -Working -Lower

Culture Single broadest determinant of consumer behavior Accumulation of values, knowledge, beliefs, customs, objects, and concepts that characterizes a society

Subcultures Groups of individuals whose values and behavior patterns are similar Can be based on a number of factors, including -Geography – Southerns and Northerns -Demographic characteristics - age -Common experiences and history - Hispanic

Any Questions? Thank you for attending! See you next week! Instructor will post the link to the recording of tonight’s seminar in the course Announcements.