Chapters 4-6 wholeprocess

Chapters 4-6 wholeprocess - NEED RECOGNITION Need...

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NEED RECOGNITION Need recognition - depends on how much discrepancy or perceived difference exists between the actual state (current situation) and the desired state. If the difference meets or exceeds the threshold, then the need is recognized! There is either a change in the actual state or desired state: Change in actual state : my tv broke down Change in the desired state : I saw my friend’s plasma TV, now I want one Although need recognition often occurs for reasons outside the control of the company, marketers can also influence and trigger needs as well. SO understanding need recognition is important: 1. May reveal a market segment with unsatisfied desires , providing the business with new sales opportunities for the future . Knowing the difference between the two states, allows you to know when buying behavior is triggered. But because so many new products have been launched, consumers continually come up with new needs that have no been met. New product business is risky and expensive. 2. May reveal barriers to a firms existing success . Take the furniture industry. There is not much need recognition because of the low replacement rate. SO these types of companies should try and influence need recognition!!! Influencing need recognition 1. Affect consumers’ desired state with: a. New products - offer them something to die for! New styles, new fabrics b. Innovations - alter consumers’ desires by improving existing products. Products such as HDTV have redefined consumers’ desires. c. Education 2. Influence how consumers perceive their actual state a. Use ads to make a consumer question the adequacy of their actual state b. Show consumers a more attractive and enjoyable state 3. Remind consumers of a need a. Dentist reminder cards b. Oral B tooth brush that fades when it gets old Efforts in activating need recognition stimulate either 1. Primary demand (total sales of a product category) with the Generic Method when companies seek to grow the size of the total market for a product category bc there are fewer competitors, less differentiation, and product is seen as a commodity. Milk ads 2. Selective demand (sales of each competitor) with the Selective Method is stimulating a need for a specific brand within a category, which is used when the consumer can differentiate between the brands Need recognition does not guarantee that the consumer will follow through with the decision process. It depends on the importance of the need at that time as well as a solution that is with in the consumers’ means.
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SEARCH The 2nd stage of the DMP represents the motivated activation of knowledge stored in memory or acquisition of info from the environment about potential need satisfiers Search is either: 1. Internal - retrieving decision relevant knowledge stored in memory a. Existing knowledge, confidence in this knowledge, and ability to retrieve b. Satisfaction level of prior purchases c. If successful, proceed with decision d. If unsuccessful, proceeds with external search…
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Chapters 4-6 wholeprocess - NEED RECOGNITION Need...

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