MOS: Consumer Behaviour
Customer value: combnation of benefits received by consumers (price, convenience, quality) and
service before and after purchase
• Apple gives good benefits when you buy there product.Also there service is top quality.
Target market: specific group that you product will be sold to.Ads should be prioritized to target this
• Pro sports players using Nike gear entices athletic buyers
Marketing Mix: 4 P’s. product price place promotion. Marketers must make sure there 4 P’s hit the
target market and are easily accessible by buyers.
• You wouldn’t put a 2 nd hand clothes store in Shaughnessy
4 P’s – PAGE 8 TEXT consumer behaviour
Marketing process:1) identifying the needs of the market. 2) manage market mix (4 p’s) to meet these
needs. 3) realize if it is profitable
marketing: process of managing goods, services, or ideas to meet consumer needs. Includes conception
of products, pricing, distribution, promotion.All done in order to create a profit
Exchange: Trading of 2 goods. Usually money for a product or service. Sometimes products/services
are traded with each other.
Product: goods, services, idea. Marketed for people to buy or support(idea)
Good: a product you can touch or own.
Service: a product you cant touch but use. Ex) a movie, physio, holiday
Idea: a concept usually looking for support
Market: potential consumers with both willingness and ability to buy
• Babies cannot buy baby products. The market is there parents
Production orientation: done until 1930’s. Focusing organizational efforts on manufacturing of the
goods. Consumer needs not a priority. Quality was usually low.
Sales Orientation: 1930-1960. Focus on selling as many of the product as possible. Products were in
abundance. Quality was improving
Marketing Orientation: organizations should strive to meet consumer needs while still achieving
organizations goals. (current)
Marketing concept: companies focus on collecting info about customer needs and using it to meet those
needs. Adds customer value.
Relationship marketing: companies create long term links with customers, employees, suppliers to
increase customer retention. (customers keep coming back for moar)
Customer relationship management: (CRM) building/maintaining profitable customer relationships by
giving good customer value and satisfaction. Cheaper than always finding new consumers.
Corporate social responsibility: (CSR) companies do good things for the environment/donations to
promote there company. People want to be associated with a “green” company. Helps build CRM.
Societal Marketing Concept: Marketing programs that focus on the consumer and well-being of society. Similar to CSR. Promotion based off good acts.
Recent areas of focus: CRM, CSR. Digital marketing, experiential marketing, partnership marketing,
Experiential marketing: holding events or online prizes, games, votes where consumers can interact
with the brand. Makes consumers feel part of the brand.
Partnership marketing: associations between brands to create business. Ex) Shoppers gives gift cards to
ESSO if you spend lotsa mullah at shoppers.
Promo partnerships:Aform of partnership marketing. Promotional offers between 2 brands. Ex) iCoke
points can be spent on pizza pizza
StrategicAlliance: form of partnership marketing. Focuses on long term. Ex) Scotiabank Visa cards lets
you earn points when you spend money. Free movies for you.
Metrics: Measuring and monitoring business performance. Collecting data to evaluate
programs/recommend changes to companies. Can be very broad or specify a specific part of a business.
Ethics: laws in place that stop companies from doing bad things. Like not having a recall on poorly
made products or copyrighting.
Canadian Marketing Association: (CMA) sets guidelines on business practices and ethics. Encourages
CHAPTER 2 NOTES
Marketing environmental Scan: acquiring information outside your business to find trends and
oppurtunities or threats to a company.
SWOT analysis: Strenghts, Weakness, Oppurtunities, Threats.Assessing internalAND external
strengths/weaknesses to find what needs to be changed to benefit your business.
Technological Factors: How changing technology is affecting the product and how it changes
People are very comfortable with the latest technology. Meaning it can expand further without losing
Computers and the Internet are essential tools today and many people rely on them. Many people are
multitasking with them. Comps are screen of choice for internet.
Fastest changing industry. It is still fairly new and expanding rapidly. An education in computers could
all change by the time you grad.
Demographics: statistical study of populations.Age, gender, ethnicity, income, education, occupation
Baby Boomer: Generation between 1946-1964. Came back from war. Fuckin like rabbits
Gen X: 1965-1974. Not brand loyal. self reliant, educated
Gen Y: 1975-1991. children of baby boom. Rely on internet, music, sports, computers
Gen Z: 1992-present. Grown up with the internet/social media. Not brand loyal but word spreads fast
on new products
Each generation has different needs/wants that have to be met. Patterns and attitudes are separate.
World markets: India+China 2.8 billion people. Future opportunities for people wanting to expand into
Socio-cultural forces: What society is turning to. What is becoming popular and cool amongst the target audiences. Yoga and dieting suddenly became the craze, they benefitted from it
Food: people are turning to healthier food options. Restraunts now display more healthy foods and have
there calories/fat displayed on goods
Health Fitness: People turning away from fast food and more into working out. New workout crazes
are beginning. Pilates, spin class, crossfit, hot yoga, vitamins
Environmental awareness: companies that do not “fight” global warming are getting it hard. Groups
protest and people are being sued for harming the environment 30 years ago.
Evolving gender roles: Male and females are becoming more equal. (WE STILLWIN). Women
working more jobs. Males becoming more house oriented. Females are making more and more
decisions so they have become a target audience in the past 20 years.
Economy: Collective income, expenditures, resources that affect the cost of running a
Economic factors: Which groups purchase your product. Recssion proof?
Macro economic forces: forces affecting the government and GDP as a whole
inflation: money loses value and the price of everything becomes greater.
Recession: times when the economy is doing poorly. Nobody wants to buy or spend money. People are
fired from jobs ect
Micro Econ Forces: supply and demand of goods and how it impacts individual people
Gross income: amount of mullah made by a person in a year
Disposable income: money after tax that people can spend on goods/services
Discretionary income: money after taxes/basic needs. How much money can be spent on luxury items
Competitive factors: Who is your competition in the market. What different about your brands and the
differences in price.
Direct competitor: pizza hut vs dominos
Indirect competitor: pizza hut vs swiss chalet. Both restaurants. Different goods
Monopoly: one company sells the product in a market
Oligopoly: competition occurs where few companies control the market.
Monopolistic Competition: Large # of sellers selling limited products
Perfect Competition: many sellers selling identical products. No difference
Regulatory factors: Which laws or copyrights could restrict a company from coming out with a new
product, name, or marketing technique
Regulations: restrictions put on marketing practices by a government or industry association
Competition Bureau: Encourages fair competition. Stops misleading products/advertising.
DNCL: (Do Not Call List): Telemarketers are unable to contact numbers placed on this list.
SEE OTHER ORGANIZATTIONS** PAGE 48-49
Spam: Sending unwanted electronic messages to recipients.
Consumer behaviour: actions a person takes when buying or using a product service
Purchase decision process: 5 stage process. Stages a buyer goes through when deciding what
products/services to buy
• problem recognition: finding a need of yours. • Information seeking: what product/service satisfies your need
• Evaluating alternatives: which brand will best satisfy the need
• purchase decision: going to purchase the product
◦ can be affected by the store or other factors that might change or delay the purchase
• post purchase behaviour: product is compared the consumers expectations. Could alter a
purchase in the future or maybe returned
1)psychological influencs 2)soci cultural influences
Involvement: how much attachment a person gets to an object
• toothpaste = low. Car = high. Either expensive, rare or affects personal image
routine: regular choices that have little change on your life like which coffee shop you stop by on the
way to work
limited: making a change just to try something new.Ads, brands do affect it. (pg 60)
Extended: 5 stages of purchase decision process takes place and items have lots of variance. Each with
individual benefits. Usually high value purchases (house, car)
GRAPH ON PAGE 59!
perception - how a person sees the things around him. Corvette = show off OR prized possesion.
Selective perception – the human brain chooses to only remember the important things and does not
selective exposure – hear only things that are consistent with your beliefs/personality (religion)
selective comprehension – story about toro snow blower (pg 64)
selective retention – you forget a lot of things just minutes after you hear it. Brochures or take home
info is perfect
perceived risk – anxiety felt when a person cannot anticipate the possible negative outcomes of a
stimulus generalization: new products with similar brand names. Ipod, iphone, Ipad.
• drive – a need that moves someone to action ( hunger)
• cue – a sign that you want somehting (grumbling stomach)
• response – action taken to satisfy the want (make food)
• reinforcement – the reward of the response (food was good)
• negative reinforcement – negative effects of the response (that food made me feel sick)
cognitive learning: learning through reasoning or observing otherss reactions
attitude formation: responding to something in a consistent way
beliefs: consumers perception on how a product/brand performs
Attitudes can change
• changing beliefs of the attributes of a brand/product
• changing the perceived importance of attributes
◦ yoga and flexibility suddenly important. Burgers, not so much • adding new attributes to a brand