Announcements

1
Announcements

• Quiz next class on Chapter 5
• Preparing for the quiz
• Read chapter carefully and identify key concepts
• Make sure you know each of the key terms listed
  at the end of the chapter
• Questions will be both definition based as well
  as application based

2
Announcements

• Research experiment 1 will be offered next week.
  Please check the website for details later this
  week.
• Exam 1 will be as scheduled in the syllabus (Feb.
  18th).

3
Social forces - Culture
Culture refers to the set of values, ideas and
attitudes that are learned and shared among
members of a group.

• Changing roles of men and women
• Marketing to women (Business Week)
• Changing role of men
• Value consciousness
• Scrimp and splurge

Warm Wishes 99c cards
4
Economic forces
Incomes, expenditures and resources that affect
the running of a business and household

• Macroeconomic
• Economic states
• Consumer spending

• Consumer income
• Gross income
• Disposable income
• Discretionary income

5
Technological forces
Innovations or inventions from applied scientific
research

• Impact on consumer value
• New products
• Declining costs

lt 300 means PCs are now officially consumer
electronics
Marketing implications?
6
Technological forces

• Electronic commerce
• Internet
• Intranet
• Extranet
• Some Important trends
• Biological research
• Nanotechnology
• Communications

7
Political-Legal/ Regulatory environment

• Protecting competition
• Sherman, Clayton, Robinson-Patman Acts
• Protecting consumers
• Nutritional labeling and education Act (1980),
  guidelines for trans fats (2006)
• Telemarketing Do Not Call registry

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Political-Legal/ Regulatory environment
Trademark protection
A trademark is an adjective. It precedes the
generic name of a product and should NEVER be
used as a noun. Incorrect Please give me that
pair of Rollerblades. Correct I like the
performance of Rollerblade in-line
skates. Trademarks should not be
pluralized. Since trademarks are not proper nouns
they should not be used in the plural form.
Instead, pluralize the common nouns they
describe. Incorrect Two BIG MACS Correct Two
BIG MAC sandwiches Trademarks should not be used
in the possessive form. Trademarks should never
be used in the s form, unless the trademark
itself is possessive such as LEVIS jeans,
MCDONALDs restaurants or JOHNSONS baby
shampoo. Trademarks are never verbs Incorrect
XEROX the report. Correct Please make six
copies on the Xerox copier. or Make a
photocopy.
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10
Managing the environment

• It is important to take a proactive approach to
  managing the microenvironment and the macro
  environment to affect changes that are favorable
  for the company.
• How? Hire lobbyists , run advertorials, file
  law suits and complaints, and form agreements.
• Example Day light savings time lobby

11
Trends assignment
12
Consumer Behavior

• 02/04/09

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Importance of consumer behavior

• Definition of marketing
• Marketing concept
• Micro environment

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Examples

• Coke knows that we put 3.2 ice cubes in a glass,
  see 69 of its commercials every year, and prefer
  cans to pop out of vending machines at a
  temperature of 35 degrees
• We each spend 20 per year on flowers
• 51 percent of all males put their left pants leg
  on first, whereas 65 percent of women start with
  the right leg
• PG once conducted a study to find out whether
  most of us fold or crumple our toilet paper

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Consumer behavior

• The actions a person takes in purchasing and
  using products and services including the mental
  and social processes that come before and after
  these actions.

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Model of Consumer behavior
Marketing and Other Stimuli
Product Price Place Promotion
Environmental Factors
Buyers Decision Process
17
Consumer Buying Process
18
In-class Activity

• Take 5 minutes and write down the decision
  process that resulted in your selecting SMU for
  your college education.

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Problem Recognition
Need Recognition Difference between current state
and desired state

• External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
• Other stimuli in the environment

• Internal Stimuli
• Hunger
• Thirst
• Security
• A persons normal needs

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Selecting your college Problem recognition

• Internal stimuli

• External stimuli

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Problem Recognition Marketing strategy

• Creating a new ideal state (benefits)
• If you wear Nike Air Jordan, you can run faster
  and jump higher
• Creating dissatisfaction with the actual state
• Your download speed on the Internet is too slow
• Generally, consumers cope with problems. It is
  only when the problem becomes unbearable that
  they seek a solution
• The key to consumer analysis is our ability to
  detect those problems that consumers find to be
  unbearable