3.LenrningLearning describes changes in an individual’s behavior arisingfrom experience.4.Beliefs and AttitudesA belief is a descriptive thought that a person holds aboutsomething.An attitude describes a person’s relatively consistent evaluations,feelings, and tendencies toward an object or an idea.Maslow’s Theory of MotivationSought to explain why people are driven by particular needs atparticular times. Maslow’s hierarchy of needs in order ofimportance are physiological needs, safety needs, social needs,esteem needs, and self actualization needs.Herzberg’s TheoryA two-two factor theory that distinguishes dissatisfiers andsatisfiers. The absence of dissatisfiers is not enough; satisfiersmust be actively presently to motivate a purchase. For example, acomputer that does not come with a warranty would be adissatisfier.Buyer decision processA.Problem recognition.B.Information search.C.Evaluation of alternatives.D.Purchase decision.E.Postpurchase behavior. Chapter 8: Kinds of variables used in segmenting consumer markets: Geographic,Nations,States, Regions, Counties, Cities, Neighborhoods;Demographic, age gender,family size, family life cycle, income,occupation, education, religion, race, generation, nationality;Psychographic, social class, lifestyle, personality; Behavioral, occasions,benefits, user status, usage rate, loyalty status, readiness stage, attitudetoward product.PLC: 1.Productdevelopmentbegins when the company finds anddevelops a new product idea. During product development, sales arezero and the company’s investment costs add up. 2. Introduction is a
period of slow sales growth as the product is being introduced into themarket. Profits are nonexistent at this stage because of the heavyexpenses of product introduction. 3.Growth is a period of rapid marketacceptance and increasing profits. 4.Maturity is a period of slowdown insales growth because the product has achieved acceptance by most ofits potential buyers. 5.Decline is the period when sales fall off quicklyand profits drop.Requirements for effective segmentationMeasurability•Size, purchasing power, profiles Accessibility•Segments can be effectively reached and servedSubstantiality•Segments are large or profitable enough to serveActionability•Effective programs can be designed to attract and serve thesegmentsEvaluating Market Segments 1)Segment Size and Growth2)Segment Structural Attractiveness3)Company Objectives and ResourcesTarget MarketsTarget market is a set of buyer sharing common needs or characteristicsthat the company decides to serve.Selecting Market SegmentsUndifferentiated Marketing Ignores market segmentation differences and goes after the wholemarket with one market offer. Differentiated Marketing A company targets several market segments and design separate offersfor each. Bifurcated MarketingA market that contains two major market segmentsConcentrated MarketingA market-coverage strategy in which a firm goes after a large share ofone or a few market segments.
Choosing a Market – Coverage Strategy•Company resources •Degree of product homogeneity •Market homogeneity •Competitors’ strategies Choosing and implementing a positioning strategy