3. What is the Holy Grail of Marketing?
Emotions
● Befriending Brand
● People feel more warmly towards their brands than their friends
Color
● For some products 90% of the snap judgment made about a product is
based on color
● colors influence the perceived “personality” of the brand
● consumers prefer recognizable brands, which makes color very important
in creating a brand identity
Emojis
5. 1. Problem Recognition
Consumer has a need that he wants to satisfy.
Difference between actual state and ideal state
Source of problem recognition
Out of stock – simple purchase decision. Familiar purchase or the brand that you are
loyal to
Dissatisfied - Unhappy with current state or brand.
New Needs/Wants- Changes in lifestyle, improvement in financial condition
Related Products/Purchases- You buy a product a realize you want to add an
accessory
Marketer-Induced Problem Recognition- Marketers encourage you to not be content
with your current state. Mouth wash, Axe effect, fashion trends
New Products
6. 1. Consumer Motivation
- How a consumer perceives a problem and sets out to solve it
- New watch : Functional vs. fashion statement motivation
Two Models :
Maslow's Hierarchy Model
Psychoanalytic theory- Motivation Research
7. Maslow’s Hierarchy
- Basic needs must be
satisfied before
psychological needs
- Different market
segments emphasize
different need levels.
Purchase of a car for a
single person vs a
family
8. - Motivations for purchasing are often very complex and unclear to the
casual observer—and to the consumers themselves.
- These motives become clear by probing the subconscious- Focus groups,
Association studies, face to face interviews
A. A man’s purchase of a high-priced fur for his wife proves his potency.
B. Consumers prefer large cars because they believe such cars protect them
from the “jungle” of everyday driving.
C. A man buys a convertible as a substitute mistress.
D. Women like to bake cakes because they feel like they are giving birth to a
baby.
E. Women wear perfume to “attract a man” and “glorify their existence.”
F. Men like frankfurters better than women do because cooking them
(frankfurters,
G. not men!) makes women feel guilty. It’s an admission of laziness.
H. When people shower, their sins go down the drain with the soap as they
rinse.
9. 2. Information Search
Internal search
- For repetitive purchase
External search
- Internet search
- Friends and family
- Marketer controlled sources
- Public sources
- Personal experience
How much external search is used? Depends ….
- Time available
- Degree of past experience
- Associated risk
- Effort needed to get information
10. - How a consumer gathers, processes and interprets information
Involves three distinct processes
- Sensation – Response of the senses. Sensory input such as Taste, smell,
touch
- Selecting information – We usually focus on stimuli that are relevant to our
need and tune out the rest
- Interpreting information – Individual process
Selective exposure, selective attention, comprehension and retention
- Consumers screen out the majority of the ads. This means advertisers must
make considerable effort to get their messages noticed.
- Even if they pay attention they will interpret the ads in their own way
- Moreover, they will only retain some information. Marketers make sure at
least they retain key benefit and brand name
11. Experiment : Unconscious and conscious attention
- visual system is filtering out some information even if neurologically it is
being held at an unconscious level. This is especially likely if one ’ s
attention is focused somewhere else.
- You must gain conscious attention for information to be processed
https://www.youtube.com/watch?v=nkn3wRyb9Bk
https://www.youtube.com/watch?v=IGQmdoK_ZfY
12. 3. Alternative Evaluation
- The consumer reduces the number of brands to a sub set in this stage- Evoke
set
- As brand managers your job is to make sure that the brand makes it to the
evoked set
- For brands with big budgets. This means reminder advertising
- For newer brands it means gaining awareness
- Advertising and point of purchase, promotional techniques may encourage
people to try a product that may not be a part of their evoked set.
- Evaluation is based on functional as well as psychosocial consequences
13. Attitude
- Overall feeling towards something developed over time
- To predict attitude marketer must know the importance a person attaches
to perceived attributes of a brand
- Toothpaste that fights cavities vs fresh breath
Marketers can influence consumer attitudes, including:
- Identify an attribute and show how well your product performs on it
(Colgate Optic White toothpaste has the best whitening power).
- Changing consumers’ perceptions of the importance or value of an
attribute (Michelin tires provide higher gas mileage and safety).
- Adding a new attribute to the attitude formation process (the product is
environmentally friendly [Clorox Green]).
- Changing perceptions of belief ratings for a competing brand (GM shows
its cars can compete with anyone’s).
14. d. Purchase decision
- Decide to buy. Not the same as actual buying
- Additional decisions may be needed, such as when to buy, where to buy,
and how much money to spend
- Low involvement products. Purchase decision to actual purchase is short-
Brand loyalty is important
- High involvement products- take time, apart from attaining people’s
attention a marketer must put effort to ensure that the consumer believes the
information provided is true.
e. Post purchase Evaluation
- Favorable means brand will be used again
- Cognitive dissonance- Consumer weighs their purchase against the one
they did not buy
- Post purchase communication is important
16. Variation in consumer purchase
decisions
For established brands : reminder advertising, prominent shelf place and
periodic promotions
New brands disrupt consumers’ routine choice process and get them to
consider different alternatives
18. Behavioral
Classical conditioning - Unassociated things become
associated
- External, environmental stimuli in causing behavior; they minimize the
significance of internal psychological processes. Consumer is passive
- Works at subconscious level.
- Pavlov’s conditioned and unconditioned response experiment
- Conditioned stimulus paired with unconditioned stimulus can produce the
same behavior as the unconditioned stimulus
- The conditioned and unconditioned stimulus need to be in proximity with
each other. The association needs to be repetitive
- Pepsi and sports
Example : https://www.youtube.com/watch?v=-Aj-tiZwg40
19. Behavioral
Operating conditioning - Consequences lead to changes
in behaviour
Example : https://www.youtube.com/watch?v=H6LEcM0E0io
- using reinforcement to encourage behavior
Two concepts important for reinforcement
- Schedule of reinforcement - continuous or partial
- Shaping - different reinforcement at each level to shape behaviour
