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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
James O' Brian

CHAPTER 1 - MARKETING FUNDAMENTALS Marketing mix: o Product o Price o Place o Promotion Marketing process: 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 income 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. Personal influence: 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 arouse needs. 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 Pup). Class Notes 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. Worked example: 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? Information search: o Where can we go to find information about mountain bikes? What is the first place we practically always look? o External search: Personal sources Public sources Marketer dominated sources Alternative evaluation: o How do consumers assess value? o What are the evaluative criteria? Objective? Subjective? 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?
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