1. Consumer Behavior Ch 6

2. Thought for the day… Do’h! Facebook just kidnapped my eyeballs and wasted another second of my life! Damn you, Zuckerburg! Simon Demenco, The Media Guy

3. Article for Next Week 1) “Caterpillar Looks For A Few Close Friends,” Business Week, October 21, 2010. (Google It) Please summarize/10 points Looks at Issues in Ch 7, Business Marketing

4. What are components of a marketing strategy?

5. The target market The Marketing Mix

6. Next Section of Course: The Target Market or Mrkt Mix? ANALYZING MARKETING OPPORTUNITY Global ConsumersCh 5 Consumer Behavior Ch. 6 Business To Business Ch. 7 Market Segmentation Ch. 8 Marketing Research Ch 9

7. Major Topics Why study consumer behavior ? The Decision Making Process. Extended Involvement Routine or Low Involvement Strategy Implications: impact on 4 p’s Influences On Decision Cultural Social Individual Psychological

8. Why Study Consumer Behavior?

9. In Developing Marketing Strategy What are the components of a marketing strategy?

10. Strategy Includes Target Market Marketing Mix

11. Decision Making Process From Psychology Later in Ch….concepts from Sociology

12. Decision Making Process When do we do this? Extended involvement (high) vs. Routine Low) Stages Need Recognition Information Search Alternative Evaluation Purchase Post purchase

13. Need recognition What is the definition of the marketing concept? Imbalance of gap between real and ideal. Strategy insights- What is the motivation? Reason? Need? Example of gym? Alan K Dress shop

14. Information Search

15. Sources of Information Internal vs. External Active vs. Passive Sources Marketing controlled information sources Advertising Media Selection TV, Internet, Billboard, Radio, Mag, Newspaper,……. Personal Selling Non Marketer controlled sources WOM News Media/Publicity

16. Promotion Strategy Implications Lets look at what Ford did to reach young people for a new model, the Ford Fiesta? Where has Ford traditionally advertised? What is the problem for young people?

17. Alternative Evaluation Benefits Sought/feature sought vs. competition Price Quality Brand Values Social issues. Product Strategy Distribution strategy Price Strategy

18. Purchase Decision How is is made? Where? When? Who makes it? Who influences them? What is needed to facilitate the decision? Incentives? How do I reduce risks for buyer?

19. Post purchase Outcomes Satisfied ….what happens. Unsatisfied ….what happens WOM Retention

20. Strategy Implications Extended Low or Routine

21. Factors Affecting Decision Making Cultural Social Individual Psychological

22. CULTURAL FACTORS Culture and Subcultues Value or importance to culture. Chello. vehicle Social Class Becomes target market & your reference group Distribution decisions

23. Social Influences Reference Groups Sneeches Primary vs. Secondary Aspiration vs. Non-aspiration Opinion Leader Family Roles in decisions

24. In Class Activity Get into your groups. Identify a person from highschool who was an opinion leader who influenced you and others…..don’t give their name Describe them and how they influenced purchases. Assign a person to report this.

25. Individual Influences Gender Shopping behavior, colors, shapes, Age, Family Life Cycle

26. Psychological Influences Perception Selective Processes: Exposure,distortion,retention “Cutting through the clutter” Motivation Maslow’s Heirarchy Learning Generalization and discrimination Beliefs and Attitudes