CHAPTER 1 - MARKETING FUNDAMENTALS
o Identifying consumer needs
o Managing the marketing mix to meet these needs
o Realizing profits
CHAPTER 2 THE MARKETING ENVIRONMENT
Marketers look for:
o Demographic forces
Age, gender, ethnicity, income
o Socio-cultural forces
o Economic forces
Macroeconomic vs. microeconomic
Inflation, recession, gross income, disposable income, discretionary
o Technological forces
o Competitive forces
Direct vs. indirect
o Regulatory forces
CHAPTER 3 CONSUMER BEHAVIOR (Incl. class notes)
Purchase decision process: Stages that a buyer passes through when making choices
about which products or services to buy.
o Five stages:
1. Problem recognition: perceiving a need
2. Information search: seeking value
3. Alternative evaluation: assessing value
4. Purchase decision: buying value
5. Post-purchase behavior: value in consumption or use
Satisfied buyers tell three other people about their experience. Dissatisfied buyers
complain to nine people.
Types of problem solving:
o Routine (ex: milk)
o Limited (ex: jeans, restaurant) o Extended (uses each of 5 stages, (ex: camera)
Situational influences on purchase decisions:
o Purchase task (a gift vs. something for the buyer themselves)
o Social surroundings (other people present when purchase is made)
o Physical surroundings (dcor, music, crowding)
o Temporal effects (time of day, time available)
o Antecedent states
Hierarchy of needs:
o Physiological needs
o Safety needs
o Social needs
o Personal needs
o Self-actualization needs
How companies make consumers feel at ease:
o Obtain seals of approval
o Securing endorsements from influential people
o Providing free trials
o Giving extensive usage instructions
o Providing warranties and guarantees
How marketers change consumers attitudes:
o Changing beliefs about the extent to which a brand has certain attributes.
o Changing the perceived importance of attributes.
o Adding new attributes to the product.
o Opinion leadership (individuals who have social influence over others)
o Word of mouth
Main consumer reference groups:
o Membership group
o Aspiration group
o Dissociative group
Behavioral learning The process of developing automatic responses to a type of situation
built up through repeated exposure to it. Drive, cure, response, reinforcement.
Motivation: Energizing force that stimulates behavior to satisfy a need; marketers try to
Personality: Consistent behaviors or responses to recurrent situational marketers think about self-concept, especially differences between current and ideal self.
Perception: We select, interpret and organize information to create meaningful picture of
the world; marketers try to understand selective perception to avoid errors (e.g. the Snow
A firm adopts a marketing strategy based on consumer learning to influence buying
decisions in a target market. Which of the following actions best reflects this strategy?
Low-involvement decisions vs. high-involvement decisions.
Variations on basic theme:
Personal, social economic consequences of buying decision level of involvement
purchase decision process.
Routing, limited extended problem solving, summarized in Fig 3-2
Basically, this refers to the intensity of the information search and evaluation process.
Buying a mountain bike is a high-involvement decision
Whats the need?
o As a consumer, what triggered this process?
o Can marketers also get the process started?
o Where can we go to find information about mountain bikes?
What is the first place we practically always look?
o External search:
Marketer dominated sources
o How do consumers assess value?
o What are the evaluative criteria?
o What is the evoked set (consideration set)?
Purchase decision/post-purchase behavior
o What bike will I buy?
o Who will I buy it from?