MM555 Week 4 Lecture

Week 4 MM555
17 September

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Agenda for Week 4

Quick wrap of the week that was Review of Week 3 Consumer Behaviour Break Case analysis: Facebook Marketing plan group time

MM555 T3 2012 Week 4

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Review of Week 3

Understand the major steps in designing a customer driven marketing strategy: STP

Understanding the bases for segmentation Being able to recognise attractive target markets How to differentiate and position products

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2012 MM555 Curtin Graduate School of Business

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MM555 Week 4 Lecture

Marketing Management Framework

Customer
Consider factors such as decision making, values, needs & wants

Company
Or organisation. What is our Strategic Purpose? Capabilities? Weaknesses?

Context
Whats going on in the macro environment?

Competitors Collaborators
Who do we work with? Who are our partners? Who are our current and potential competitors? Where are they placed in the market?

Marketing Objectives Segmentation

Based on geographic, demographic, psychographic and/or behavioural factors

Targeting
Consider strategic fit; potential and defensibility against competition

Differentiation
Differentiating the market offering to create superior customer value

Positioning Analysis & Strategy

Create Value
Marketing is about creating customer value and profitable customer relationships
Product / Service People Processes Physical Evidence

Your place in the market space Core benefit proposition Unique selling proposition Positioning Statement

Planning & Implementation

Capture Value

Communicate Value
Integrated Marketing Communications (including Promotion)

Deliver Value

Price

Placement Logistics

The MM555 Marketing Management Framework draws on a number of sources including Iacobucci Curtin University is a trademark of Curtin University(2013), of Technology CRICOS Codeand 00301J Armstrong et Provider al (2012) Gibbs (2009) and includes the key factors which need to be taken into account when developing a comprehensive marketing strategy.

Implementation, Monitoring & Measuring Outcomes

Learning Outcomes for Week 4

Understand the definition of consumer behaviour

Being able to describe the consumer decision process Understand the family buying roles Understand the influences on consumer behaviour

Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J

Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

Definition of consumer behaviour

Consumer Behaviour:
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.

Consumer Market:
The consumer market consists of all the individuals and households who buy or acquire goods and services for personal consumption.
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2012 MM555 Curtin Graduate School of Business

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MM555 Week 4 Lecture

Types of Purchases
Low involvement frequently purchased High involvement infrequently purchased

Customer Involvement Low Convenience Medium Shopping High Specialty

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

Consumer decision making process

Source: Elliot, Greg, Sharyn Rundle-Thiele And David Waller, 2012. Marketing. John Wiley and Sons. p135
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Types of Cognitive Choice Models

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Source: Hoyer, Wayne H and Deborah J. MacInnis, 2010, Consumer Behaviour. South-Western Cengage Learning.p230

2012 MM555 Curtin Graduate School of Business

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MM555 Week 4 Lecture

Brand Recall Activity

Find a partner and get a piece of paper and pen. Imagine the following scenario. You have just put your mobile phone into the washing machine as it was in the pocket of your jacket. You are now at problem recognition stage as your mobile phone is now not working. You have to purchase a new mobile phone When you think about purchasing a new phone what brands can you recall? This is your evoked set. Share the brands that you have with your partner
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Family Buying Roles

User Initiator

Buyer

Key Family Decision Roles

Influencer

Decider
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The factors that affect consumer behaviour

Personal

Psychological Consumer Behaviour

Social

Cultural

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MM555 Week 4 Lecture

Personal Factors
Gender- cars/cosmetics/fashion/fragrances/music Age entertainment/cars/banking/travel/furniture/internet purchases Family Life Cycle: Bachelor stage recreation/fashion Newly married couples durables/furniture Full Nest focus on child needs/cheap holidays Empty Nest recreation, medical care products, Solitary Survivor medical products, security Occupation and Economic Situation Blue collar: work clothes, work shoes, lunchboxes, utility Company president: expensive suites, air travel, country club membership Lifestyles Persons pattern of living as expressed in their activities, interests and opinions. VALS2 used to classify lifestyles along two dimensions: Self orientation (principles, status, action) and resources Personality and Self Concept
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Sub Cultures How do they affect consumer behaviour?

Smaller, distinct groups within a dominant culture. Greek, Vietnamese, Maltese population in Sydney Academics, Hackers, Surfers, Military Families BIG impact food, recreation, clothing & education NOT thinking about ethnic sub-culture in Australian can mean not communicating to 20% of the population

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

Reference Groups
Primary Family/friends Direct Types of reference groups Indirect Non-aspirational
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Secondary (less interaction)

Aspirational

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MM555 Week 4 Lecture

Key Psychological processes

Motivation
E.g. Theories of Freud, Maslow, Herzberg

Perception Learning Memory

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Maslows Heirarchy of Needs

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

2012 MM555 Curtin Graduate School of Business

Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J

MM555 Week 4 Lecture

Categorizing Needs

Source: Hoyer, Wayne H and Deborah J. MacInnis, 2010, Consumer Behaviour. SouthWestern Cengage Learning.p51
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Perception
How we select, organise, and interpret information to create a meaningful picture of the world. Selective exposure Selective attention Selective distortion Selective retention Subliminal perception (product placement)

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

Sensation and Perception

Utilise senses to convey information Visual: colors can Convey a brand identity (Tiffanys aqua blue) Make products stand out (Ipods white) Convey meaning (black = mourning) Hearing can Increase spending e.g. Quick tempo music = increased spending Convey a brand e.g. Harley-Davidsons distinctive sound Taste can Distinguish one brand from another e.g. Coke vs. Pepsi
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Smell can Get attention (Smelling the Cinnabon store) Allow product sampling (Perfume in magazines) Touch can Can convey brand imagery e.g. Well designed products compared to value designed products e.g. Ergonomics, clean lines, simplicity, beauty, sensual experiences, etc.

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MM555 Week 4 Lecture

Sensation and Perception

Mere exposure
Repeated exposure to an ad brings familiarity and a positive feeling

Perceptual fluency
Customers may pay the most attention to the content of a message; However, the colors, font, etc. make a brand impression as well

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Learning
Learning induces changes in our behaviour arising from experience. Creates brand associations A drive is a strong internal stimulus impelling action. Cues are minor stimuli that determine when, where and how a person responds. Discrimination means we have learned to recognise differences in sets of similar stimuli and can adjust our responses accordingly.
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Retrieval Cues

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Classical Conditioning
Pavlovs dogs experiment
Stage 1: a dog drools at site of food Stage 2: a dog doesnt respond to a bell Stage 3: ringing a bell while placing food in front of the dog elicits drool Stage 4 (occurs over time): a bell rung in front of the dog elicits drool

A similar process can be used in advertising and jingles

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Operant conditioning
Skinner used pigeons to show that learning occurs by positively reinforcing behavior
Fixed ratio reward: reward is given every time or every 4th time, etc. Variable ratio reward: reward varies Subject will engage in the behavior more often if rewarded on the variable schedule

Operant conditioning learning occurs through positive reinforcement https://www.youtube.com/watch?v=euINCrDbbD4 Big Bang Theory Sheldon using operant conditioning on Penny
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Managerial Recap What you should know

Understand the definition of consumer behaviour

Being able to describe the consumer decision process Understand the family buying roles Understand the influences on consumer behaviour

Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J

Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

2012 MM555 Curtin Graduate School of Business

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MM555 Week 4 Lecture

15 min Break

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Case analysis: Facebook

1. Why do people use Facebook and what do they do when they are there? What are the implications for the individual, for organisations and for Facebook? 2. How can organisations leverage Facebook for commercial purposes? How effective are Company pages on Facebook? 3. How about Facebook Platform? What roles does this play for both individuals and organisations? 4. Finally, review the final paragraph in the case. How would you respond to these questions? What should Footer Facebook text - slideshow title concentrate on?
Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J

2012 MM555 Curtin Graduate School of Business

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