3.Lenrning
Learning describes changes in an individual’s behavior arising
from experience.
4.Beliefs and Attitudes
A belief is a descriptive thought that a person holds about
something.
An attitude describes a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or an idea.
Maslow’s Theory of Motivation
Sought to explain why people are driven by particular needs at
particular times. Maslow’s hierarchy of needs in order of
importance are physiological needs, safety needs, social needs,
esteem needs, and self actualization needs.
Herzberg’s Theory
A two-two factor theory that distinguishes dissatisfiers and
satisfiers. The absence of dissatisfiers is not enough; satisfiers
must be actively presently to motivate a purchase. For example, a
computer that does not come with a warranty would be a
dissatisfier.
Buyer decision process
A.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, attitude
toward product.
PLC:
1.
Product
development
begins when the company finds and
develops a new product idea. During product development, sales are
zero and the company’s investment costs add up.
2.
Introduction
is a
period of slow sales growth as the product is being introduced into the
market. Profits are nonexistent at this stage because of the heavy
expenses of product introduction.
3.
Growth
is a period of rapid market
acceptance and increasing profits.
4.
Maturity
is a period of slowdown in
sales growth because the product has achieved acceptance by most of
its potential buyers.
5.
Decline
is the period when sales fall off quickly
and profits drop.
Requirements for effective segmentation
Measurability
•
Size, purchasing power, profiles
Accessibility
•
Segments can be effectively reached and served
Substantiality
•
Segments are large or profitable enough to serve
Actionability
•
Effective programs can be designed
to attract and serve
the
segments
Evaluating Market Segments
1)
Segment Size and Growth
2)
Segment Structural Attractiveness
3)
Company Objectives and Resources
Target Markets
Target market is a set of buyer sharing common needs or characteristics
that the company decides to serve.
Selecting Market Segments
Undifferentiated Marketing
Ignores market segmentation differences and goes after the whole
market with one market offer.
Differentiated Marketing
A company targets several market segments and design separate offers
for each.
Bifurcated Marketing
A market that contains two major market segments
Concentrated Marketing
A market-coverage strategy in which a firm goes after a large share of
one 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
