Transcript Slide 1

INTRODUCTION TO THE COURSE
SYLLABUS & SUPPORT MATERIALS ARE AT
http://awhitebread.ba.ttu.edu
[email protected]
MARKETING 3350
• TESTS 100%
– 5 total – best 4 test scores will determine your
grade for the course.
– No make-up tests!
– No extra credit!
Knowledge + logic +
understanding = No guesses
COURSE STRUCTURE
• Business casual environment
• Prepare for class everyday
– slides, text, and vocabulary
• Attend all classes
• Bring printout of slide and take good handwritten class notes
• Participate
– Your comments and questions, in-class activities
• Form opinions based on facts and analysis
• Review website items
KEY LEARNING OUTCOMES
Understand
•
the role of marketing as the hub of the
wheel,
•
the importance of aligning corporate
offerings with market wants and needs,
•
the role of the chief marketing officer,
•
the many functional areas of marketing,
and introduce the major marketing
concepts, models, and theories.
KEY LEARNING OUTCOMES
•
Marketing has many components that need
to be coordinated and integrated to
maximize your chance for success.
•
There is a logical sequence to developing
marketing programs and the importance of
research to making good decisions.
•
There are many marketing concepts and
theories that are relatively easy to
understand but are difficult to implement.
•
New product development [NPD] is critical
to the continuing success of the firm and
how marketing manages the NPD cycle.
KEY LEARNING OUTCOMES
•
For career success, students must become
very flexible [recognize an item or situation
even if it has a different name] and
adaptable [take a basic concept, model, or
theory and modify or apply it to a specific
situation] to succeed in the business
world.
•
Also for career success, students must
become comfortable making decisions
based on incomplete and sometimes
uncertain information!
1
THE HUB OF THE WHEEL
AND
CONNECTING WITH CUSTOMERS
LIFETIME VALUE
•
•
•
•
•
•
How often do you purchase a box of Kleenex?
Which translates to n boxes per year.
At what average unit selling price [AUP]?
Which produces $ annual revenue [Ryr].
Build the equation for annual revenue.
Times your remaining average lifespan [80-20] of x
years that amounts to $ lifetime revenue [Rl]!
• At 33% gross margin percent [GM]. Note GM=[P-C]/P
• Which results in $ gross profit [Plp] over your
lifetime!
• Build the equation for life time value.
LO1
WHAT IS MARKETING?
DELIVERING BENEFITS
Marketing Seeks to:
• Discover and Satisfy Needs and Wants
of Markets and Market Segments.
• Markets and market segments are composed
of customers, prospects, and suspects.
AMA DEFINITION OF MARKETING
“Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.”
-American Marketing Association, 2007
THE MARKETING ENVIRONMENT
Social / Cultural
Technological
Attitudes, Values, Lifestyle
Human Resources
Marketing
Mix
Senior
Management
&
Organization
Structure
Environmental /
Natural Forces
Stakeholders
Capital
Supply
Chain
Management
Planning and
Systems
Competition
Government
/ Political / Legal
LO1
WHAT IS MARKETING?
REQUIREMENTS FOR IT TO OCCUR
Parties with Unsatisfied Needs
A Desire and Ability to be Satisfied
A Way to Communicate
Something of Value to Exchange
1-12
HOW MARKETING
DISCOVERS CONSUMER NEEDS
LO2
THE CHALLENGE: NEW PRODUCTS

Most New Products Fail
The Challenge:
• “Focus on the Consumer Benefit”
• “Learn From the Past”
•
1-13
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
•
• B2C:shaped by culture and
personality
• B2B [organizational buyers] shaped
by requirements]
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
• MARKETS [for products and/or services]
– Defined groups of people or entities with both the desire and the
ability to buy a specific product.
•
– [Preferably] uniquely defined groups within markets.
•
– Those market segments the entity is / will actively pursue.
•
– The entity’s per cent of the total market in units or revenue.
MARKETS AND STAKEHOLDERS
• MARKETS [for
products / services]
–
–
–
–
–
–
Business
Consumer [B2C]
Government
Reseller
International*
Institutions [education
and health care]
– Non-profit
– Captive
• STAKEHOLDERS or
PUBLICS [some interest
in what you do]
–
–
–
–
–
Customers
Prospects
Resellers
Employees
Internal departments /
individuals
– Investors
– and more!
LO3
HOW MARKETING SATISFIES
CONSUMER NEEDS
The Marketing Mix [4Ps]
PRODUCT
PROMOTION
PLACE
PRICE
MARKETING PROGRAM
LO4
CUSTOMER VALUE AND RELATIONSHIPS
• VALUE
– THE CORNERSTONE OF MARKETING
• The difference between usage value and the cost
of procurement.
–
–
– Customer satisfaction [positive customer experience]
•
–
–
1-18
MARKETING PROGRAM
LO4
CUSTOMER VALUE AND RELATIONSHIPS
Customer Value & Its Perception

Value Strategies – It’s all about
being perceived differently!

• Best? Price
• Best? Product
• Best? Service
LO4
MARKETING PROGRAM
RELATIONSHIP MARKETING
Relationship Marketing
• Easy to Understand -
• Customer Relationship Management [CRM]
Marketing Program
1-20
MARKETING MANAGEMENT
PHILOSOPHIES
• PRODUCTION ERA
–
– Products that are available and highly affordable
– Products with the most performance and features
They will buy it if we build it.
• SALES ERA
– Sales are driven by advertising & promotion
You will sell what we make.
CONTRASTING CONCEPTS
Starting
point
Focus
Means
Ends
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
Market
Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
THE MARKETING CONCEPT AT WORK
MARKETS
AND
SEGMENTS
CONSUMER NEEDS
INTEGRATED
MARKETING
COMMUNICATIONS
VERSUS THE SELLING CONCEPT WHICH EMPHASIZES COMPANY NEEDS
PROFITS
THROUGH
SATISFACTION
MARKETING MANAGEMENT
PHILOSOPHIES
• MARKETING CONCEPT ERA
– Market [customer]-driven approach
We will make it if we believe we can sell it in sufficient quantity
• CUSTOMER RELATIONSHIP ERA
– Mutually-satisfying long-term relationships
[relationship marketing]
ETHICS & CORE VALUES
• MORALS
The distinctions between right and wrong.
• ETHICS
The values relating to human conduct—the
right and wrong of actions, and the good
or bad of motives and ends.
ETHICS
• Personal ethics should exceed legal
requirements
• If you have to ask about its legality, you
are likely in ethical trouble
•
•
LO6
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
Who Benefits?
Who Buys & Uses What Is Marketed?
•
•
How Do Consumers Benefit?
•
•
1-27
PLANNING
• STRATEGIC
–
• MARKETING
– Generally one year or less
• TACTICAL
– Generally days, weeks, or months
PLANNING AND THE FIRM
Vision
Core values
Business definitions and missions
Strategic direction [leadership]
Infrastructure [core competencies]
SBUs
Marketing plan
Objectives & Situation analysis
Segmentation and target marketing
Positioning
Marketing mix
Product – Place – Promotion – Price [value]
STRATEGIC PLANNING
• The process of aligning the firm’s capabilities
over the long term to take advantage of
constantly changing market opportunities.
• The goal is usually maximization of the firm’s
revenues, profits, and / or the accomplishment of
major objectives.
• There are several excellent models. The
challenge is to apply the most appropriate model
for your situation.
STRATEGIC PLANNING
•
•
•
•
What are we now?
What capabilities do we want to develop?
What businesses should we be in?
How do we get there?
–
–
• What are the rewards of success?
2
STRATEGIC PLANNING,
CORPORATE GOALS, AND
CORE COMPETENCIES
LO1
TODAY’S ORGANIZATIONS
KINDS OF ORGANIZATIONS
 Business entities
 For-profit organizations
LO1
TODAY’S ORGANIZATIONS
WHAT IS STRATEGY?

Strategy
Marketing’s Role
2-34
HOW DOES MARKETING MEET
CORPORATE GOALS?
• REVENUE AND NET PROFIT
• BRAND AWARENESS
• NEW PRODUCT / MARKET
DEVELOPMENT
THE MARKETING ORGANIZATION
WORKING RELATIONSHIPS
STRATEGIC DIRECTION OF THE FIRM
BOARD / CEO / COO
MARKETING OFFICER
THE MARKETING PLAN
PRODUCT
MARKET
CUSTOMER
MANAGEMENT
RESEARCH
SERVICES
PRODUCTS &
SERVICES
PRICING
CHANNEL
MANAGEMENT
SALES FORCE
DIRECTION
BRAND
MANAGEMENT
CUSTOMER SURVEYS
NEEDS RESEARCH
CUSTOMER CARE
INTEGRATED
MARKETING
SALES
SALES
ORGANIZATIONS
COMMUNICATIONS
ADVERTISING
SALES MANAGEMENT
PROMOTION
DAILY SALES
PUBLIC RELATIONS
ACCOUNT
MANAGEMENT
SALES MATERIALS
CUSTOMER
RELATIONSHIPS
TYPES OF SALES ORGS.
DESIGNING THE BUSINESS PORTFOLIO
•
•
•
• CORE COMPETENCIES
• CONSIDERATIONS
– FIT WITH OTHER SBU’s
– SYNERGIES
– COMPETITION BETWEEN SBU’s
STRATEGIC DIRECTION OF THE FIRM
(“THE CORE COMPETENCE OF THE CORPORATION”
ARTICLE)
• CORE COMPETENCY TESTS
• Sustainable –
• Competitive –
• Advantage –
LO1
TODAY’S ORGANIZATIONS
STRUCTURE—SBU
Strategic Business Unit [SBU] Level
GE Commercial Finance
GE Industrial
GE Money
(business loans, leases)
(appliances, lighting,
factory automation)
(consumer home loans,
credit cards)
GE Healthcare
GE Infrastructure
GE NBC Universal
(imaging, diagnostics,
life-support systems)
(aircraft engines, energy,
transportation)
(television, music, film)
THE STRATEGIC BUSINESS UNIT (SBU)
• A UNIT OF THE FIRM THAT HAS
DIFFERENT OBJECTIVES, CAN BE
PLANNED SEPARATELY FROM OTHER
UNITS, AND INTERNALLY COMPETES
FOR
–
– FAIR PERFORMANCE MEASURES
– DEGREE OF AUTONOMY
SBU
LO2
STRATEGY IN VISIONARY
ORGANIZATIONS
FOUNDATION (WHY)
Core Values
Stakeholders
Mission or Vision
Organizational Culture
2-42
CORE VALUES
are the fundamental, passionate, and
enduring principles that guide conduct
over time.
– Values and beliefs: you can not live a dual
life
LO2
STRATEGY IN VISIONARY
ORGANIZATIONS DIRECTION (WHAT)
Business
• What do we do we do best?
• What business[es] are we in?
• What business[es] should we be in?
“MARKETING MYOPIA” *
THEODORE LEVITT ARTICLE
•
• Supermarket [1930]
• Color TV
• Lead with price conundrum
• You can always get sales!
• Great marketing organizations rarely
have financial problems!
APPLYING THE MARKETING MYOPIA
CONCEPT:
BUSINESS DEFINITIONS & EXTENSIONS
PRODUCT
ORIENTED
MARKET
ORIENTED
DISNEY
Theme parks
Fantasies &
What
entertainment businesses
are they in?
WAL-MART
Discount
stores
Value to
middle class
COMPANY
BUSINESS
EXTENSIONS
What can they
sell?
COMPETENCIES / KEY SUCCESS
FACTORS
• NOT CORE COMPETENCIES
• YOU MUST DO BETTER EVERY DAY
•
• Design
• Engineering
•?
LO3
SETTING STRATEGIC DIRECTIONS
Market Growth Rate
LOW
HIGH
Where do we want to go? BCG Growth-Share Matrix
STARS
QUESTION MARKS
CASH COWS
DOGS
HIGH
LOW
Relative Market Share
GE STRATEGIC BUSINESS PLANNING
MATRIX
• Market
Attractiveness
– Market size, growth rate,
potential
– Competition
– Profitability
– Government regulation
• Business Strength
– Market share
– Customer & market
knowledge
– Cost efficiency
– Technology
GE STRATEGY ANALYSIS
Strong
Low Medium High
MARKET ATTRACTIVENESS
BUSINESS STRENGTH
Medium
Weak
Hydraulic
pumps
Clutches
Fuel
pumps
Valve
Invest & grow
Selective growth
LO3
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
Hedgehog Analysis
• What Are We Deeply Passionate About?
•
• What Can We Be the Best At in the World?
•
• What Drives Our Economic Engine?
2-51
LO3
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
Blue Ocean Analysis
• Red Oceans
•
•
• The ocean turns red with blood
• Blue Oceans
•
•
• The great blue expanse of opportunity
Copyright 2005 W. Chan Kim and Renée Mauborgne
2-52
LO4
THE STRATEGIC MARKETING PROCESS
Strategic Marketing Process
• How Do We Allocate Our Resources
to Get Where We Want to Go?
• How Do We Convert Our Plans to Actions?
• How Do Our Results Compare With
Our Plans, and Do Deviations Require
New Plans?
2-53
LO4
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 1: Situation (SWOT)
Analysis
• Situation Analysis
• SWOT Analysis
2-54
LO4
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 1: Situation (SWOT)
Analysis
• SWOT Analysis Study
 Identify Industry Trends
 Analyze Competitors
 Assess the Organization
 Research Present and Prospective Markets
2-55
LO4
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
SWOT ANALYSIS
Your firm and your major competitors
IP
STRENGTHS
Low cost
structure Take advantage of
Market
position
the firm’s
strengths
CONSTRAINTS
Breadth of
offering
WEAKNESSES
Lack of
management
talent
Offset the firm’s
weaknesses
Weak finances
OPPORTUNITIES
LEVERAGE
NPD
New markets,
channels
Use the firm’s
strengths to offset Acquisitions
competitive threats
VULNERABILITIES
THREATS
PROBLEMS
Counter threats
Rapidly
changing
market
New entrants
Government
regulations
LO4
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 2: Market-Product Focus and
Goal Setting





2-57
COMPETITIVE ADVANTAGE
• The target market set[s] of
____________________ features and
their associated _____________ benefits
_______________________________
compared to the competitive offerings.
COMPETITIVE ADVANTAGE OF THE
FIRM
COMPETITIVE ADVANTAGE
Customer Perceived Uniqueness
C
O
M
P
E
T
I
V
E
S
C
O
P
E
INDUSTRY
Low Cost Position
DIFFERENTIATION
WIDE
NICHE / FOCUS
OVERALL COST
LEADERSHIP
LO5
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 3: Develop the Marketing
Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
2-60
LO5
THE STRATEGIC MARKETING PROCESS
THE IMPLEMENTATION PHASE
Obtaining Resources
Designing the Marketing
Organization
Developing Schedules
Executing the Marketing Program
• Marketing Strategy
• Marketing Tactics
2-61
LO5
THE STRATEGIC MARKETING PROCESS
THE EVALUATION PHASE
Comparing Results with Plans
to Identify Deviations
• Planning Gap
Acting on Deviations
• Exploiting a Positive Deviation
• Correcting a Negative Deviation
2-62
3
SCANNING THE MARKET
ETHICS
ENVIRONMENTAL SCANNING
LO1
Environmental Scanning
• Tracking Trends
•
3-64
LO2
SOCIAL FORCES
DEMOGRAPHICS
Social Forces
Demographics
• World Population
• U.S. Population
3-65
LO2
SOCIAL FORCES
DEMOGRAPHICS—GENERATIONAL COHORTS
Baby Boomers: 1946 - 1964



Generational Marketing [B2C]
3-66
LO2
SOCIAL FORCES
DEMOGRAPHICS—POPULATION SHIFTS
 Statistical Areas (SA):
Illinois
• Combined SA: NE Illinois
• Micropolitan SA: Dixon, IL
• Metropolitan SA: St. Louis, MO & SW IL
• Metropolitan Division: Chicagoland
3-67
SOCIAL FORCES
LO2
DEMOGRAPHICS—RACIAL & ETHNIC DIVERSITY
Composition
Trends
• African Americans
• Hispanics
• Asian Americans
Multicultural Marketing
3-68
SOCIAL FORCES
LO2
CULTURE
Culture
The Changing Attitudes and
Roles of Men and Women
Changing Values
• Value Consciousness
3-69
LO3
ECONOMIC FORCES
MACROECONOMIC CONDITIONS
Economy
• Inflation
• Recession
3-70
LO3
ECONOMIC FORCES
CONSUMER INCOME
Gross Income
is the total amount of money made in one year without
Disposable Income is the money a
consumer has left after
Discretionary Income
is the money that remains after
paying for taxes and
3-71
LO4
TECHNOLOGICAL FORCES
ELECTRONIC BUSINESS TECHNOLOGIES

Electronic Commerce
3-72
PORTER’S FIVE FORCES MODEL:
Industry Analysis
What is the
threat of
significant
What is the
bargaining power
of
What is the
amount of rivalry
What is the
bargaining power
of
What is the
threat of
See Michael E. Porter, Competitive Strategy, New York Free Press, 1980, for more information.
LO6
REGULATORY FORCES
FEDERAL LEGISLATION
Regulation
Protecting Competition
• Sherman Antitrust Act (1890)
• Clayton Act (1914)
• Robinson-Patman Act (1936)
3-74
REGULATORY FORCES
LO6
FEDERAL LEGISLATION
Product-Related: Company
Protection
• Copyright Law
• Trademark Law
•
•
3-75
REGULATORY FORCES
LO6
FEDERAL LEGISLATION
Pricing-Related
Distribution (Place)-Related
• Exclusive Dealing
• Requirement Contracts
•
•
3-76
FIGURE 4-1 Four ways to classify marketing decisions
according to ethical and legal relationships.
4-77
LO2
ETHICAL MARKETING BEHAVIOR
BUSINESS CULTURE AND INDUSTRY PRACTICES
Business Cultures
Ethics of Exchange
•
• Consumer Bill of Rights (1962)
codified the ethics of exchange between buyers and sellers
• U.S. Consumer Product Safety Commission
• Federal Trade Commission (FTC)
4-78
LO2
ETHICAL MARKETING BEHAVIOR
BUSINESS CULTURE AND INDUSTRY PRACTICES
Ethics of Competition
•
• Bribes and Kickbacks
•
4-79
4
CONSUMER MARKETING [B2C];
MARKETS & BUYER BEHAVIOR
WHAT IS A CONSUMER?
• The ultimate user that selects,
purchases, uses, and disposes of
goods or services to satisfy needs
and wants.
A MODEL OF BUYER BEHAVIOR
Product
Price
Marketing and
Other Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Buying
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyer’s Black Box
Buyer
Characteristics
Buyer’s Response
Purchase
Timing
Purchase
Amount
PURCHASE DECISION PROCESS
CONSUMER BAHAVIOR – PROBLEM RECOGNITION
FIGURE 5-1 The purchase decision process consists of five
stages.
FEEDBACK
5-83
LO1
PURCHASE DECISION PROCESS
INFORMATION SEARCH
Internal Search
External Search
Personal sources
Public sources
Market-dominated sources
5-84
LO1
PURCHASE DECISION PROCESS
ALTERNATIVE EVALUATION
Evaluative Criteria
Factors that represent both the objective attributes of a
brand and the subjective ones a consumer uses to
compare different products and brands.
Consideration Set
the group of brands that a consumer would consider
acceptable from among known brands in the product
class.
5-85
LO1
PURCHASE DECISION PROCESS
PURCHASE DECISION
Decide from Whom to Buy
Decide When to Buy
5-86
CUSTOMER FOCUS
THE VALUE OF A SATISIFIED CUSTOMER
• Customer retention [satisfaction]
•
•
•
AFTER THE PURCHASE:
POSTPURCHASE BEHAVIOR
Consumer’s Expectations of
Product Quality and Performance
Product’s Perceived Performance Standard
Satisfied Customer!
Dissatisfied Customer
CLASSIFICATION OF
CONSUMER PRODUCTS
Convenience Products
Shopping Products
> Frequently purchased
> Little effort
> Low priced
> Numerous locations
> Considerable selection time & effort
> Moderately brand loyal
> Comparison shop
> Few locations
Staples, impulse items
Clothing, appliances, services
Specialty Products
Unsought Products
> Unique characteristics
> Significant purchase efforts
> Brand – limited locations
> Little awareness or interest until need
> Require much advertising & personal
selling
Big Bertha golf club, Rolex
Insurance, some innovations
> Unexpected need
> Speed with little to no brand loyalty
Emergency room, ambulance, towing
LO2
PURCHASE DECISION PROCESS
CONSUMER INVOLVEMENT & PROBLEM SOLVING
Involvement is the personal, social, and
economic significance of the purchase to the
consumer.
• Extended Problem Solving
• Limited Problem Solving
• Routine Problem Solving
5-90
PURCHASE DECISION PROCESS
LO2
INVOLVEMENT & MARKETING STRATEGY
Low Involvement
• Maintain Product Quality
•
•
High Involvement: Use Ads and
Personal Selling
5-91
LO2
PURCHASE DECISION PROCESS
SITUATIONAL INFLUENCES
• SOCIAL SURROUNDINGS
•
– What do you notice when you go into a store?
•
– Does the time of day affect your shopping?
– How do you shop if you are in a hurry?
•
– How does being unhappy affect your shopping?
– How does the amount of money you have …
FOUR TYPES OF BUYING DECISIONS
HIGH INVOLVEMENT
[Quality – Service – Facts]
Use personal sales –
quality, facts, service
Significant
differences
between
brands
Behavior
Few
differences
between
brands
Behavior
DURABLE GOODS
[Furniture, appliances,
long-lasting items…]
Use subjective appeals,
advertising
LOW INVOLVEMENT
[Obvious differences]
Use advertising, POP,
emotional perceptions
Behavior
Behavior
NON-DURABLE GOODS
[Grocery items, frequent
purchases, …]
Use sales promotion,
price
PSYCHOLOGICAL INFLUENCES ON CONSUMER
LO3
BEHAVIOR: MOTIVATION AND PERSONALITY
Maslow’s Hierarchy of Needs
5
Selfactualization
Personal improvement, legacy,
philanthropy
Rawls College of Business
(self-development
and realization)
4
(self-esteem, recognition)
Designer items
Hilfiger, BMW, …
3 (friendship, belonging, love)
2
1
Cards, flowers
Hallmark, Carnival, …
(safety, financial security, protection)
(Food, water, shelter, Advil-advanced medicine for pain)
Insurance
Allstate
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
LO3
MOTIVATION AND PERSONALITY
Personality



5-95
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
PERCEIVED RISK
Strategies to Reduce Perceived
Risk
• Obtain Seals of Approval
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
5-96
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
LEARNING
Behavioral Learning
• Drive (Hunger)
• Response
• Cue
• Reinforcement
Cognitive Learning

5-97
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
ATTITUDES AND BELIEFS
Attitude Formation
• Attitude –
• Values –
• Beliefs 5-98
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
ATTITUDES AND BELIEFS
Attitude Change
• Change Beliefs About a Brand’s Attributes
• Changes Perceived Importance
of Attributes
• Add New Product Attributes
5-99
PSYCHOLOGICAL INFLUENCES ON CONSUMER
LO3
BEHAVIOR: CONSUMER LIFESTYLE
ACTUALIZERS
11.7%
Guided
by
Knowledge and
Achievement:
success
Guided by selfexpression:
FULFILLEDS
10.5%
ACHIEVERS
14.7%
EXPERIENCERS
12.9%
BELIEVERS
17.0%
STRIVERS
11.8%
MAKERS
12.0%
Principle
STRUGGLERS
9.5%
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
PERSONAL INFLUENCE
Opinion Leaders
Word of Mouth
5-101
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR FAMILY INFLUENCE
FIGURE 5-6 Modern family life cycle stages and flows
Family Decision Making
5-102
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
SOCIAL CLASS
Social Class
• Upper Class
• Middle Class
• Working/Lower Class
5-103
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
CULTURE AND SUBCULTURE
Culture
Subculture
• Hispanic Buying Patterns
• African American Buying Patterns
• Asian American Buying Patterns
5-104
IS
THEIR REALITY!