MKE290: Introduction & Psychological Approach to Marketing

Class Overview

  • Instructor: Aybike Mutluoglu

  • Class: Week 1 Class 2

Today's Agenda

  • How do we define marketing?

  • Psychological framework to understand marketing decisions

  • Introduction to perceptions of value

What Comes to Mind First When You Hear the Term "Marketing"?

  • Engage audience to reflect on initial thoughts and associations with marketing.

Definition of Marketing

  • Formal Definition:

    • Marketing is described as 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.

  • Key Aspects of Marketing:

    • Marketing is not solely focused on communication; marketers also engage in:

    • Deciding what products or services are offered.

    • Setting pricing strategies.

    • Determining distribution channels.

  • Scope of Marketing Activities:

    • Marketing encompasses a wide range of entities that can be marketed:

    • Products

    • Services

    • Information

    • People

    • Experiences

    • Ideas

  • Social Consequences of Marketing:

    • Marketing plays a significant role in shaping societal values, norms, and consumption habits.

Limitations of the Definition

  • Engage students in a discussion about potential shortcomings or limitations of the formal definition provided. Ask if they notice anything missing from the definition.

  • Explore the context where marketing is frequently applied beyond traditional business contexts; acknowledge that not all marketing situations involve free or fair exchange.

Psychological Approach to Marketing

  • Understanding Marketing Decisions:

    • Every marketing decision considers potential consumer reactions.

    • Provides a framework for marketers to understand the impact of their decisions on consumer behavior.

  • Key Considerations in Psychological Marketing:

    • Focus on consumer behaviors of interest.

    • Identify the psychological responses that may lead to these behaviors.

    • Establish methods to evoke these responses effectively.

Simplified Model of Consumer Decision-Making

  • Key Elements of Purchase Decisions:

    • States: Purchase decision is influenced by numerous factors.

    • Focus on:

      • Value judgments

      • Purchase satisfaction

      • Perceived benefits

      • Perceived costs

  • Diagram of Simplified Purchase Model:

    • Model illustrated showing the interplay of perceived benefits and costs influencing purchase satisfaction and overall value judgments leading to the purchase decision.

Tools Marketers Use to Influence Perceptions

  • Discuss the tools and strategies that marketers can leverage to manipulate the perceptions of value:

    • Product strategies

    • Pricing strategies

    • Promotional tactics

    • Placement/Distribution choices

Experiment on Perception of Value

  • Class Activity:

    • Engage students in a perception experiment:

    • Participants are asked to provide honest answers without looking at others' answers.

    • Emphasize intuitive responses to capture genuine perceptions.

  • Follow-Up:

    • Results to be shared in the next session.

Upcoming Assignments and Readings

  • Group Project Membership:

    • Students are encouraged to email with membership requests by Sunday at 5 PM.

  • Week 2 Reading Assignments:

    • Readings:

    • "The Elements of Value" (Harvard Business Review, 2016)

    • "Stop Trying to Delight Your Customers" (Harvard Business Review, 2010)

    • Both readings will be available in Module for Week 2.

  • Preview for Next Week:

    • Detailed exploration into the concept of value in marketing and its implications on consumer behavior.