Week 4
- 2. Decision Making Process Choose a recent, relatively large purchase that you made Jot down the different steps you went through to make your decision
- 3. 1: Need Recognition “ Difference between ideal and actual state” Sources: Personally-Induced Need Recognition Marketer-Induced Need Recognition Reason for both inbound & outbound marketing tactics!
- 4. 2: Information Search Internal Search Scan information stored in memory External Search Additional information through personal sources, online, browsing, salespeople, and trial Evoked Set : the subset of brands that a consumer is aware of and considers for purchase Get your company’s name ‘top of mind’
- 5. 3: Alternative Evaluation Use of Rational Criteria Price Features/Function Recommendations/Ratings Attitudes Positive and Negative Influencers Tastes Beliefs & Loyalty
- 6. 4 & 5: Purchase Decision & Post-Purchase Evaluation Exchange of Goods or Services Evaluation of Purchase Post-purchase dissonance Brand loyalty adjustment
- 7. Decision Making Need Recognition Information Search Alternative Evaluation Purchase Decision Post-purchase Evaluation Connect Convince Cultivate
- 9. Marketing Mix The blend of the 4 components of marketing to satisfy the chosen market segment. Product All attributes of the offering that lead to want satisfaction – both tangible and intangible. Price The value that a consumer exchanges for a good or service. Place The channel and distribution infrastructure that facilitates the exchange process. Promotion Activities and messages to persuade and influence the consumer’s decision making.
- 10. Product Considerations Physical Goods Tangible Pre-developed Consistency Post-consumed Ownership Services Intangible Customer Involvement Variability/Flexibility Delivered in Real-time No Ownership How do web-based businesses fit in?
- 11. Product Decisions Core Product + Supplementary Services Features and Functions Design Service Online Catalog Shopping Product Recommendations Transaction Security Product Rating System Search Tools
- 12. When Product = Website Decisions focus on user experience: Information Architecture: organize your content in a way that satisfies the customer Features and Functionality: support your product offering or promotional objectives Supporting Technology Design Layout and Writing for the Web Reputation and Attention is Currency Who is your product team?
- 13. When Product = Website
- 14. Price Considerations Profitability – Target Return Volume – Maximize Sales/Market Share Competition Pricing Marketing Mix Consistency
- 15. Pricing Decisions Policies Skimming vs. Penetration Flexible Pricing (bargaining) Relative to Market (Winners) Price Lining (dollar stores) Promotional Pricing (liquidation centres) Prestige Pricing (BMW) Freemium Models (LinkedIn)
- 16. Distribution Decisions Direct vs. Indirect (Retail, etc.) Control Flexibility Positioning Cost/Risk Online vs. Offline “ Place” Value Chain & Fulfillment
- 18. Other P’s? People Process Productivity and Quality Physical Evidence