Introduction to Marketing
Why do consumers buy?
GOT GAP WANT
Consumers buy because they have problems to achieve their goals.
Firms can influence how consumers perceive:
o Their current situation (make them aware of problems)
o Their des
I interviewed my roommate who recently purchased Foster Farm Chicken Bakes while shopping at Costco. The following are some representative questions, followed by an analysis. Why did you choose to buy foster farm chicken baked- Samples were given out and
Case 1 Renova Toliet Paper: Escaping the Commoditization Trap
The case study analyzes the toilet paper market and the growing category of
private labels. Renova should partner with some of the retailers to produce private l
Consumer Decision Process
= Consumer Behavior
-exposure, attention, comprehension, attitude formation, memory
1) Problem Recognition
-recognize difference between actual and desired state
-difference between perceived actual state and plausible ideal state
difference has to exceed the awareness threshold
*this difference leads to motivation; how motivated are you to fix this problem
Ex. your friend shows you their new t
Ethan Decker Guest Speaker
1) Always assume you are not your audience
(do whatever you can to see your brand-and the world-through their eyes)
2) Shopping is not consuming
(theyre different mindsets with different barriers)
3) Theory t
*EXPOSURE, ATTENTION, PERCEPTION*
-when do consumers detect a stimulus
when this stimulus exceeds the absolute threshold
Build in messages into your ad (subliminal messages)
-Vicarys Coke and popcorn subliminal messages in th
Pre-Purchase: Attitude Formation
-consumers can react to messages in two ways:
1) Peripheral Route (low elaboration/MAO-Motivation, Ability, Opportunity)
-requires little effort
*form an attitude based on peripheral cues: easy to proce
What is a brand?
-a name, term, design, symbol or any other feature that identifies one sellers good or service as
distinct from other sellers (AMA def)
-associations in consumers minds (feelings, beliefs, attitudes)
Real estate in peoples heads
Who Studies Consumer Behavior?
Both big firms and small boutique firms
Consumer goods companies
Advertising agencies; come up with tag lines, etc.
Retailers can do in house research
Research done for general understanding
Overview of Consumer Behavior
-good marketing should create and communicate VALUE
must understand your buyer
-if youre not creating value for them, youll go out of business
strategy without tactics is the slowest route to victory H
MKTG 3250001 - 9:30 A.M.
Exercise 1: Mystery Shopper
The brand that King Soopers proposes is price, variety and convenience, which in turn
delivers incremental value for its customers. The store is merchandised by category, and the
Required and Recommended Readings
Good decision-making requires metaknowledge - an understanding of the limits
of our knowledge.
Managers deal in opinions.
People are often unjustifiably certain of their beliefs.
o Most peoples
Case 2 IKEA Invades America
IKEA pursues differentiation and low cost simultaneously, which has made it the
worlds most prominent furniture retailer. The companys Scandinavian design, global
presence, store environment and
Case 3 Unilever in Brazil: Marketing Strategies for Low-Income Consumers
Most people in the Northeast of Brazil are illiterate and live on less than two minimum
wages, and there per capita income is around $2,250. But, purc
1. How did the authors manipulate involvement for the experiment?
Involvement was determined by the time frame in which the senior exit exam was to go into
effect for the students. Students were in the low-involvement group if ch
Haley McKee 004
In just a simple print advertisement, Great Canadian Hotels is able to disrupt the basic
consumers actual state of their lives by creating an ideal state in their minds. The actual state is
the current state of an individuals life and the
When attempting to increase sales, a company can create a problem for their consumer
that their product will solve. This can be done by either changing the ideal state or the actual
state of the consumer (Lecture 4a). The ideal state describes where a per
Clayton Christensen Will Change the Way You Do Business
Clayton Christensens, The Innovators Dilemma, presents an insightful
look into business operations. For centuries, it has been thought that businesses
should always strive t
Overview of Consumer Behavior
Model 1: The 3 Cs (Strategy)
o Consumer, Company, Competition
o Think of them as a stool.
o Strategies must take in the three Cs.
o Consumer: Understand their needs and wants.
o Company: Know who you are.
o Competition: Know
Who Studies Consumer Behavior?
o Ad Agencies: Have strategy groups.
o Retailers: Do in house market research.
o Academic: For the sake of science, not sure of the outcome.
o Government: How do you get people to wear seatbelts, eat well,
What is a Brand?
A name, term, design, symbol, or any other feature that identifies
one sellers good and service as distinct from those of other
sellers. American Marketing Association
Associations in consumers minds.
Consumer Decision Process: Overview
The Consumer Decision Process
o Lay out like a map.
o Provide a model of how to think of consumer behavior.
o Stages of the Consumer Decision Process
Pre-Purchase Processes: Problem Recognition
o Detecting a difference between the perceived actual state and a plausible
Your perception changes.
o Difference has to exceed the awareness threshold.
The greater the awaren
Pre-Purchase Processes: Information Search
o Definition: The process of recalling stored information from memory.
o Consumer looking to solve some problem.
o Next step is to search.
o Follows a particular path.
o Problem Recognition In
Pre-Purchase Processes: Exposure, Attention, Comprehension
o Exposure: To What & When?
o Selective Exposure
o Expose Your Message
o Can you get their attention?
o Is what you intended to communicate actually the message received?
Final Exam Outline
CH. 15 Retailing:
Marketing channel: consists of individuals and firms involved in the process of making a product or
service available for use or consumption by consumers or industrial users
Goal of channel is to deliver:
Marketing lectures #3
Careers in Marketing
The client-agency relationship
brand/product management jobs
o p &g, nestle, coke, kellogs
o develop marketing plan afressing 4 ps, understand market
and compeitors, undertand customer, mana