MARK 410 Exam 1

What 3 things do technological innovations enhance?

1.) Customer Value

2.) Customer Satisfaction

3.) Customer Retention

How do you assess consumer cost of new technologies?

• Labor input (hours of work)

• Today’s $$$ cost

Market segmentation

dividing market into small segments with distinct needs, characteristics, or behavior that might require separate marketing strategies/mix

Market targeting

set/group of buyers who share common needs/characteristics that the company decides to serve

Differentiation

Creating a USP (unique selling proposition) that contrasts with competing offers (make it unique)

Positioning

the product/service is perceived by the consumer; a company creates a distinct image and identity for its products, services, or brands in consumers’ minds.

Ways to segment a market:

• Geographic segmentation:

• Demographic segmentation

• Psychographic segmentation

• Behavioral segmentation

Keys to successful targeting:

• Viable Size

• Potential Growth

• Target Market Structure – Concentrated, Diffuse, Accessible?

• Corporate Resources

• Corporate Objectives

Keys to successful differentiation:

• Product

• Personnel

• Image

• Channel

Keys to successful positioning:

• Believable

• Sustainable

• Communicable

• Inimitable

Motivation

Driving force that impels people to act; Positive and negative motivators; goal-oriented; tension reduction

Psychogenic needs

Achievements, affiliation, power, change, etc.

Personality theory

Traits; Innovativeness, dogmatism, ethnocentrism, materialism

Emotions

Joy, sadness, guilt, anger, fear

Dogmatism

close-mindedness

Ethnocentrism

acceptance of people

Perception

The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world.

Sensation

The immediate and direct response of the sensory organs to a stimulus or many stimuli

Stimulus

any input (external or internal) to any one or more of our sensory receptors

Absolute threshold

lowest level one can experience a sensation

Differential threshold

minimum level of difference between 2 similar stimuli that can be detected

Subliminal perception

Level below which one cannot consciously experience a sensation although they be subconsciously experienced/recorded

Selective perception

heightened/disproportionately high awareness of 1+ stimuli that satisfy a current need while having a minimal/disproportionately low awareness of other stimuli that are deemed irrelevant to satisfy current needs

What are 3 reasons why we make perceptual errors?

• Figure and ground

• Grouping

• Closure

Stereotyping

• People carry pictures and meanings in their minds of various commonly encountered stimuli.

• “Add” or “subtract” their biases and predispositions to what they sense leading to an experience or impression that can be distorted

• Individuals stereotype because it makes processing of sensory input quicker and easier, but sometime flawed

Perceived price

consumers assess value (utility) they expect to receive from buying and consuming an offering

Perceived quality

consumers assess quality of offering based on some of its attributes and on information that have stored/receive from external sources

Perceived P/Q

ratio of consumers perceived price and perceived quality

Learning

cognitive process of acquiring skill and knowledge; acquisition and development of memories; change in content and structure of one’s memory

Behavioralism

Learning will occur in response to an external stimulation

Classical conditioning

behavioral procedure that involves pairing a neutral stimulus with a biologically potent stimulus to create a new conditioned response.

Instrumental conditioning

modifies behavior using rewards and punishments

Cognitive

Learning will occur based on one’s cognitive abilities and processes

Modeling/Vicarious

Learning that occurs by observing and imitating and modeling

Hemispheric Laterlization

human brain divided into 2 distinct cerebral hemispheres that operate together, but “specialize” in processing different types of cognitions

Left-brain

logic/reasoning/linear/functional

Right-brain

sensation/emotion/nonlinear/holistic

Attitude

• A learned predisposition towards
  an object or concept that moderates and
  influences eventual behaviors.

• A learned predisposition to behave in a
  consistently favorable or unfavorable manner
  with respect to a given object.

Personality factors

• Innovativeness

• Materialism

• Ethnocentrism

• Dogmatism

• Inner/Outer Directed (Introvert/Extrovert)

• Variety Seeking

• Need for Cognition/Information

Sources of Information

• Social Network (Family, Friends, Coworkers)

• Media (TV, Internet, Social Media)

• Experience

Multi-Attribute Model

Overall Attitude is estimated by summing the
separate evaluations of the salient beliefs (e_i ),
weighted by the strength of each beliefs (w_i),
to create an overall evaluation or attitude (A_o).
A_o = Σw_ie_i

Ideal-Point Model

Overall Attitude is estimated by finding the
difference on an attribute between the ideal
point (I_i) and the actual (X_i), and multiplying
it with the weight (w_i), to create an overall
evaluation or attitude (A_o)

A_o = Σ W_i |(I_i - X_i)|

How do we change/alter attitude?

• Change Evaluative Belief

• Change Weight

• Change Number of Attributes

• Change Ideal Point

Cognitive Dissonance

when a consumer holds two conflicting beliefs
about an object or experiences a conflict between his/her attitude and
behavior

Attribution Theory

• consumers try to assign a cause for the
  conflicting beliefs or the conflict between attitude and behavior

• The cause can be internal (or the self) or external (or someone or something
  outside

Foot-in-Door

A slow escalation can also lead to a convergence between two conflicting
beliefs or a conflict between an attitude and behavior

Communication model

Source – Message Content – Channel of communication – Receiver - Context

What are the barriers to persuasion?

• Selective Exposure

• Time Shift

• Noise & Clutter

How do we overcome barriers to persuasion?

• Repetition

• Beware of Wearout

• Narrowcasting

Comparative Advertising

History and Rationale Theory

Rationale Theory

• Better informed consumer

• Direct comparisons better than veiled comparisons

• Tort system will adequately address aggrieved party

Persuading through emotion

• Common emotions used to persuade

  • Anger

  • Disgust

  • Fear

  • Humor

  • Joy

  • Surprise

  • Sadness

Persuading through nudging

Changing social environment/context may provide “nudge” towards rational behavior

Cookies

• Stored on server

• Include data on computer of visitor

• Data can be retrieved for future use

Impression based targeting

• Real-time bidding

• Ads target browsers based on aggregated data

• Two-way communications

• Customized messages

• Immediate feedback

• Retargeting

Permissions

• Basic permission

  • Limited to demographics

• User permission

  • Requests to install “apps” and other tracking devices

• Friends permission

  • Requests to share information about and with “friends”

• Sensitive information

  • Personal information - money, sexual preferences, medical records, credit cards

Advertising on Facebook

• Marketers can have their own page(s)

• Marketers can buy space on here, in addition to having their own page(s)

• Cost per ads is same as other
  online ads

  • Buy them on a CPM basis

Advertising on Twitter

• Marketers can promote here, in
  addition to having their own
  handle(s)

• Three Avenues to place Ads on Twitter

  • Promoted Accounts

  • Promoted Tweets

  • Promoted Trends

Why is there a decline in print advertising?

• People read less

• Other media have grown

• Other media have better reach

• Other media have better targeting

• Other media are cheaper