Marketing Management Discussion-Week 1
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Week1slides-Marketingmanagementdomainandcustomerfocus1.pptxMarketing management domain and customer focus
Chapters 1&2, Iacobucci
Prof J. Miller
Marketing Defined
Marketing is defined as an exchange between a firm and its customers
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What Can We “Market”?
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Evolution of Modern Marketing
Product/production orientation
Focus on building a better gadget
Sales orientation
Focus on convincing the customer that your product works best for them
Customer orientation
Focus on identifying customers’ wants BEFORE formulating attractive solutions
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Who Is Responsible for Marketing?
Marketing and customer satisfaction is everyone’s responsibility
Marketing should permeate the firm
Accounting/finance
Sales
Research and development
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Measuring Marketing Success (slide 1 of 2)
Quantify results when possible
Sometimes the effectiveness of marketing programs is easy to quantify
Did the coupon promotion lift sales?
Measure the percentage sales increase, etc.
Did the direct mail campaign increase web usage?
Measure the number of web visits, etc.
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Measuring Marketing Success (slide 2 of 2)
However, sometimes the effectiveness is not easy to quantify
Was the segmentation study effective?
Difficult to quantify
Did the advertising campaign increase sales?
Difficult to quantify because great advertising is geared toward long-term brand building not short-term results
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Marketing Management Framework
The 5Cs, STP, and the 4Ps constitute the marketing management framework
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Book Layout
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CONSUMER BEHAVIOR (Ch.2)
There are known, reliable patterns that comprise consumer behavior, including:
The phases consumers go through when making a purchase
The different kinds of purchases that consumers make
How consumers sense and perceive, become motivated, form attitudes, and make decisions
The cultural differences that influence consumers
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The Purchase Process
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Customers recognize a need/desire
Some are heavily marketer influenced; some are not
e.g., Having trendy clothes vs. needing to eat
Customers search and evaluate products that address their need
e.g., Conduct online search, ask friends, etc.
Customers create a consideration set
All brands considered as candidates for purchase
PURCHASE phase
Customers narrow the consideration set
Customer may delay the purchase
Customer may decide not to purchase
Customers decide on retail channel
Post Purchase Phase
Customers assess the purchase and the purchase process
Customers determine satisfaction
Did the customer get what he expected?
Customers’ level of satisfaction leads to
Repeat purchases
Negative or positive word of mouth
Product returns, etc.
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34 types of consumer purchases
Convenience purchases (m&m candies)
Shopping purchases (washer/dryer)
Specialty purchases (faberge egg)
Unsought purchases (funeral services)
3 types of Business Purchases
New (task) buy
Modified rebuy
Straight rebuy
Types of Purchases
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Involvement in purchasing
Low-involvement – more sensitive to price
High involvement – more sensitive to nuance
Sensation / Perception
Senses convey information
Consumers are selective – can block out irrelevance
Visual – product characteristics messaging
Hearing – change action / increase spending / define brand
Smell – Grab attention
Taste, which includes mouthfeel – Brand distinguishment
Touch – Convey imagery
Sensation & Perception
Mere exposure – familiarity breeds positivity? Leads to
Perceptual fluency – ability for a stimulus to be processed?
Perceptual fluency is why these are funny.
Conditioning.
Classical jam – Pavlov’s canine.
Stage 1: a dog drools at sight of food
Stage 2: a dog doesn’t respond to a bell
Stage 3: ringing a bell while placing food in front of the dog elicits drool
Stage 4 (occurs over time): a bell rung in front of the dog elicits drool
A similar process can be used in advertising and jingles
Companies may have negative brand associations in customers’ memories
Some companies change names to help create new associations
e.g., Philip Morris is now Altria
e.g., ValuJet is now AirTran
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Conditioning.
Operant Conditioning
Skinner used pigeons to show that learning occurs by positively reinforcing behavior
Fixed ratio reward: reward is given every time or every 4th time, etc.
Variable ratio reward: reward timing varies unpredictably
Subject will engage in the behavior more often if rewarded on the variable schedule
Motivation: Hierarchy of Needs
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Related: Alderfer’s ERG Theory
The differences:
The 5 levels are reduced to three If one is lacking need fulfillment at a higher level, you’re reinforce that discrepancy by obtaining more resources at the lower level.
Decision Making
Decision making:
With a few choices, consumers easily compare brands to make decision
With many choices, consumers use two stages:
Stage 1: Determine consideration set
Stage 2: Compare brands to make a purchase decision
Culture
Socio-cultural differences influence consumers and produce shopping patterns
Social class
e.g., Old-monied people seek exclusivity; nouveaus indulge in conspicuous consumption
Age
e.g., Young people buy furniture; as they get older they buy diapers and minivans; then college and finally healthcare
