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INTRODUCTION TO THE COURSE
SYLLABUS & SUPPORT MATERIALS ARE AT
http://awhitebread.ba.ttu.edu
MARKETING 3350• TESTS 100%
– 5 total – best 4 test scores will determine your grade for the course.
– No make-up tests! – No extra credit!
Knowledge + logic + understanding = No guesses
COURSE STRUCTURE
• Business casual environment• Prepare for class everyday
– slides, text, and vocabulary
• Attend all classes• Bring printout of slide and take good hand-
written class notes• Participate
– Your comments and questions, in-class activities
• Form opinions based on facts and analysis• Review website items
KEY LEARNING OUTCOMES
Understand
• the role of marketing as the hub of the wheel,
• the importance of aligning corporate offerings with market wants and needs,
• the role of the chief marketing officer,
• the many functional areas of marketing, and introduce the major marketing concepts, models, and theories.
KEY LEARNING OUTCOMES
• Marketing has many components that need to be coordinated and integrated to maximize your chance for success.
• There is a logical sequence to developing marketing programs and the importance of research to making good decisions.
• There are many marketing concepts and theories that are relatively easy to understand but are difficult to implement.
• New product development [NPD] is critical to the continuing success of the firm and how marketing manages the NPD cycle.
KEY LEARNING OUTCOMES
• For career success, students must become very flexible [recognize an item or situation even if it has a different name] and adaptable [take a basic concept, model, or theory and modify or apply it to a specific situation] to succeed in the business world.
• Also for career success, students must become comfortable making decisions based on incomplete and sometimes uncertain information!
1
THE HUB OF THE WHEEL
AND
CONNECTING WITH CUSTOMERS
LIFETIME VALUE
• How often do you purchase a box of Kleenex?• Which translates to n boxes per year. • At what average unit selling price [AUP]?
• Which produces $ annual revenue [Ryr].
• Build the equation for annual revenue. • Times your remaining average lifespan [80-20] of x
years that amounts to $ lifetime revenue [Rl]!
• At 33% gross margin percent [GM]. Note GM=[P-C]/P
• Which results in $ gross profit [Plp] over your lifetime!
• Build the equation for life time value.
Marketing Seeks to:
• Discover and Satisfy Needs and Wants of Markets and Market Segments.
• Markets and market segments are composed of customers, prospects, and suspects.
WHAT IS MARKETING?DELIVERING BENEFITS
LO1
AMA DEFINITION OF MARKETING
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
-American Marketing Association, 2007
THE MARKETING ENVIRONMENT
Planning andSystems
Supply Chain
Management
MarketingMix
Social / CulturalAttitudes, Values, Lifestyle
Capital
Stakeholders
Environmental / Natural Forces
Government / Political / Legal
Competition
Technological
Human Resources
SeniorManagement &Organization Structure
Parties with Unsatisfied Needs
WHAT IS MARKETING?REQUIREMENTS FOR IT TO OCCUR
LO1
A Desire and Ability to be Satisfied
A Way to Communicate
Something of Value to Exchange
1-12
HOW MARKETINGDISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS
LO2
Most New Products Fail
• “Focus on the Consumer Benefit”• “Learn From the Past”•
The Challenge:
1-13
•
• B2C:shaped by culture and personality
• B2B [organizational buyers] shaped by requirements]
HOW MARKETINGDISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
LO2
HOW MARKETINGDISCOVERS CONSUMER NEEDS
LO2
• MARKETS [for products and/or services] – Defined groups of people or entities with both the desire and the
ability to buy a specific product.
• – [Preferably] uniquely defined groups within markets.
• – Those market segments the entity is / will actively pursue.
• – The entity’s per cent of the total market in units or revenue.
MARKETS AND STAKEHOLDERS
• MARKETS [for products / services]– Business– Consumer [B2C]– Government– Reseller– International*– Institutions [education
and health care]– Non-profit– Captive
• STAKEHOLDERS or PUBLICS [some interest in what you do]– Customers– Prospects– Resellers– Employees– Internal departments /
individuals– Investors– and more!
HOW MARKETING SATISFIESCONSUMER NEEDS
LO3
The Marketing Mix [4Ps]
PRODUCT
PRICEPROMOTION
PLACE
MARKETING PROGRAMCUSTOMER VALUE AND RELATIONSHIPS
LO4
1-18
• VALUE – THE CORNERSTONE OF MARKETING
• The difference between usage value and the cost of procurement.
– –
– Customer satisfaction [positive customer experience]•
–
–
MARKETING PROGRAMCUSTOMER VALUE AND RELATIONSHIPS
LO4
• Best? Price
• Best? Service
Customer Value & Its Perception
• Best? Product
Value Strategies – It’s all about being perceived differently!
MARKETING PROGRAMRELATIONSHIP MARKETING
LO4
• Easy to Understand -
Relationship Marketing
• Customer Relationship Management [CRM]
Marketing Program
1-20
MARKETING MANAGEMENT PHILOSOPHIES
• PRODUCTION ERA– – Products that are available and highly affordable
– Products with the most performance and featuresThey will buy it if we build it.
• SALES ERA– Sales are driven by advertising & promotion
You will sell what we make.
CONTRASTING CONCEPTS
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
MarketIntegratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
THE MARKETING CONCEPT AT WORK
MARKETSAND
SEGMENTSCONSUMER NEEDS
INTEGRATEDMARKETING
COMMUNICATIONS
PROFITSTHROUGH
SATISFACTION
VERSUS THE SELLING CONCEPT WHICH EMPHASIZES COMPANY NEEDS
MARKETING MANAGEMENT PHILOSOPHIES
• MARKETING CONCEPT ERA– Market [customer]-driven approach
We will make it if we believe we can sell it in sufficient quantity
• CUSTOMER RELATIONSHIP ERA– Mutually-satisfying long-term relationships
[relationship marketing]
ETHICS & CORE VALUES
• MORALS
The distinctions between right and wrong.
• ETHICS
The values relating to human conduct—the right and wrong of actions, and the good or bad of motives and ends.
ETHICS
• Personal ethics should exceed legal requirements
• If you have to ask about its legality, you are likely in ethical trouble
•
•
HOW MARKETING BECAME IMPORTANTBREADTH AND DEPTH OF MARKETING
LO6
Who Benefits?
Who Buys & Uses What Is Marketed?
•
•
How Do Consumers Benefit?
• •
1-27
PLANNING
• STRATEGIC–
• MARKETING– Generally one year or less
• TACTICAL– Generally days, weeks, or months
PLANNING AND THE FIRMVision
Core valuesBusiness definitions and missions
Strategic direction [leadership]Infrastructure [core competencies]
SBUs
Marketing planObjectives & Situation analysis
Segmentation and target marketingPositioning
Marketing mixProduct – Place – Promotion – Price [value]
STRATEGIC PLANNING
• The process of aligning the firm’s capabilities over the long term to take advantage of constantly changing market opportunities.
• The goal is usually maximization of the firm’s revenues, profits, and / or the accomplishment of major objectives.
• There are several excellent models. The challenge is to apply the most appropriate model for your situation.
STRATEGIC PLANNING
• What are we now?
• What capabilities do we want to develop?
• What businesses should we be in?
• How do we get there?– –
• What are the rewards of success?
2
STRATEGIC PLANNING,
CORPORATE GOALS, AND
CORE COMPETENCIES
Business entities
TODAY’S ORGANIZATIONSKINDS OF ORGANIZATIONS
LO1
For-profit organizations
TODAY’S ORGANIZATIONSWHAT IS STRATEGY?
LO1
Strategy
Marketing’s Role
2-34
HOW DOES MARKETING MEET CORPORATE GOALS?
• REVENUE AND NET PROFIT
• BRAND AWARENESS
• NEW PRODUCT / MARKET DEVELOPMENT
THE MARKETING ORGANIZATIONWORKING RELATIONSHIPS
MARKETING OFFICER
THE MARKETING PLAN
STRATEGIC DIRECTION OF THE FIRMBOARD / CEO / COO
MARKET
RESEARCH
PRODUCT
MANAGEMENT
INTEGRATED
MARKETING
COMMUNICATIONS
SALES
ORGANIZATIONS
PRODUCTS & SERVICES
PRICING
CHANNEL MANAGEMENT
SALES FORCE DIRECTION
BRAND MANAGEMENT
CUSTOMER SURVEYS
NEEDS RESEARCH
ADVERTISING
PROMOTION
PUBLIC RELATIONS
SALES MATERIALS
SALES MANAGEMENT
DAILY SALES
ACCOUNT MANAGEMENT
CUSTOMER RELATIONSHIPS
TYPES OF SALES ORGS.
CUSTOMER
SERVICES
CUSTOMER CARE
SALES
DESIGNING THE BUSINESS PORTFOLIO
•
•
•
• CORE COMPETENCIES
• CONSIDERATIONS– FIT WITH OTHER SBU’s– SYNERGIES– COMPETITION BETWEEN SBU’s
STRATEGIC DIRECTION OF THE FIRM(“THE CORE COMPETENCE OF THE CORPORATION”
ARTICLE)
• CORE COMPETENCY TESTS
• Sustainable –
• Competitive –
• Advantage –
TODAY’S ORGANIZATIONSSTRUCTURE—SBU
LO1
Strategic Business Unit [SBU] Level
GE Commercial Finance(business loans, leases)
GE Healthcare(imaging, diagnostics, life-
support systems)
GE Industrial(appliances, lighting, factory automation)
GE Infrastructure(aircraft engines, energy,
transportation)
GE Money(consumer home loans,
credit cards)
GE NBC Universal(television, music, film)
THE STRATEGIC BUSINESS UNIT (SBU)
• A UNIT OF THE FIRM THAT HAS DIFFERENT OBJECTIVES, CAN BE PLANNED SEPARATELY FROM OTHER UNITS, AND INTERNALLY COMPETES FOR–
– FAIR PERFORMANCE MEASURES– DEGREE OF AUTONOMY
SBU
STRATEGY IN VISIONARY ORGANIZATIONS
FOUNDATION (WHY)
LO2
Core Values
Stakeholders
Organizational Culture
Mission or Vision
2-42
CORE VALUES
are the fundamental, passionate, and enduring principles that guide conduct over time.
– Values and beliefs: you can not live a dual life
• What do we do we do best?
• What business[es] are we in?
STRATEGY IN VISIONARY ORGANIZATIONS DIRECTION (WHAT)
LO2
Business
• What business[es] should we be in?
“MARKETING MYOPIA” *THEODORE LEVITT ARTICLE
• • Supermarket [1930]
• Color TV • Lead with price conundrum
• You can always get sales!• Great marketing organizations rarely
have financial problems!
APPLYING THE MARKETING MYOPIA CONCEPT:
BUSINESS DEFINITIONS & EXTENSIONS
COMPANY
PRODUCT
ORIENTED
MARKET
ORIENTED
BUSINESS
EXTENSIONS
DISNEY Theme parks Fantasies & entertainment
What businesses are they in?
WAL-MART Discount stores
Value to middle class
What can they sell?
COMPETENCIES / KEY SUCCESS FACTORS
• NOT CORE COMPETENCIES
• YOU MUST DO BETTER EVERY DAY
•
• Design
• Engineering
• ?
SETTING STRATEGIC DIRECTIONSWhere do we want to go? BCG Growth-Share Matrix
LO3M
ark
et
Gro
wth
Ra
teL
OW
H
IGH QUESTION MARKS
CASH COWS DOGS
HIGH LOW Relative Market Share
STARS
GE STRATEGIC BUSINESS PLANNING MATRIX
• Market Attractiveness– Market size, growth rate,
potential– Competition– Profitability– Government regulation
• Business Strength– Market share– Customer & market
knowledge– Cost efficiency– Technology
MA
RK
ET
AT
TR
AC
TIV
EN
ES
S
Lo
wM
ediu
mH
igh
Valve
Fuelpumps
Clutches
Hydraulicpumps
Strong Medium Weak
BUSINESS STRENGTH
Invest & grow Selective growth
GE STRATEGY ANALYSIS
SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?
LO3
Hedgehog Analysis
• What Can We Be the Best At in the World?•
• What Drives Our Economic Engine?
• What Are We Deeply Passionate About?•
2-51
SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?
LO3
• Red Oceans• • • The ocean turns red with blood
• Blue Oceans• • • The great blue expanse of opportunity
Blue Ocean Analysis
Copyright 2005 W. Chan Kim and Renée Mauborgne
2-52
THE STRATEGIC MARKETING PROCESSLO4
• How Do We Allocate Our Resourcesto Get Where We Want to Go?
Strategic Marketing Process
• How Do We Convert Our Plans to Actions?
• How Do Our Results Compare WithOur Plans, and Do Deviations RequireNew Plans?
2-53
THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE
LO4
• Situation Analysis
• SWOT Analysis
Step 1: Situation (SWOT) Analysis
2-54
THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE
Analyze Competitors
Identify Industry Trends
Research Present and Prospective Markets
Assess the Organization
LO4
• SWOT Analysis Study
Step 1: Situation (SWOT) Analysis
2-55
THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE
LO4
SWOT ANALYSISYour firm and your major competitors
STRENGTHS
Take advantage of the firm’s strengths
WEAKNESSES
Offset the firm’s weaknesses
OPPORTUNITIES
Use the firm’s strengths to offset competitive threats
THREATS
Counter threats
LEVERAGE
PROBLEMS
CONSTRAINTS VULNERABILITIES
IP
Low cost structure
Market position
Breadth of offering
Lack of management
talent
Weak finances
NPD
New markets, channels
Acquisitions
Rapidly changing market
New entrants
Government regulations
Step 2: Market-Product Focus and Goal Setting
THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE
LO4
2-57
COMPETITIVE ADVANTAGE
• The target market set[s] of ____________________ features and their associated _____________ benefits _______________________________ compared to the competitive offerings.
COMPETITIVE ADVANTAGE OF THE FIRM
DIFFERENTIATION OVERALL COST LEADERSHIP
NICHE / FOCUS
INDUSTRY
WIDE
Customer Perceived Uniqueness Low Cost Position
COMPETIVE
SCOPE
COMPETITIVE ADVANTAGE
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
Step 3: Develop the Marketing Program
THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE
LO5
2-60
THE STRATEGIC MARKETING PROCESSTHE IMPLEMENTATION PHASE
LO5
Obtaining Resources
Designing the Marketing Organization
Developing Schedules
Executing the Marketing Program
• Marketing Strategy
• Marketing Tactics2-61
THE STRATEGIC MARKETING PROCESSTHE EVALUATION PHASE
• Exploiting a Positive Deviation
• Correcting a Negative Deviation
Acting on Deviations
• Planning Gap
Comparing Results with Plans to Identify Deviations
LO5
2-62
3
SCANNING THE MARKET
ETHICS
•
ENVIRONMENTAL SCANNINGLO1
Environmental Scanning
• Tracking Trends
3-64
Demographics
SOCIAL FORCESDEMOGRAPHICS
LO2
• World Population
• U.S. Population
Social Forces
3-65
Baby Boomers: 1946 - 1964
Generational Marketing [B2C]
SOCIAL FORCESDEMOGRAPHICS—GENERATIONAL COHORTS
LO2
3-66
Statistical Areas (SA): Illinois
SOCIAL FORCESDEMOGRAPHICS—POPULATION SHIFTS
LO2
•Metropolitan Division: Chicagoland
•Micropolitan SA: Dixon, IL
•Metropolitan SA: St. Louis, MO & SW IL
•Combined SA: NE Illinois
3-67
Composition
Trends
SOCIAL FORCESDEMOGRAPHICS—RACIAL & ETHNIC DIVERSITY
LO2
• African Americans
• Hispanics
• Asian Americans
Multicultural Marketing3-68
Culture
The Changing Attitudes and Roles of Men and Women
Changing Values
SOCIAL FORCESCULTURE
LO2
• Value Consciousness
3-69
ECONOMIC FORCESMACROECONOMIC CONDITIONS
LO3
Economy
• Inflation
• Recession
3-70
ECONOMIC FORCESCONSUMER INCOME
LO3
Gross Income is the total amount of money made in one year without
Disposable Income is the money a consumer has left after
Discretionary Income is the money that remains after
paying for taxes and
3-71
Electronic Commerce
TECHNOLOGICAL FORCESELECTRONIC BUSINESS TECHNOLOGIES
LO4
3-72
PORTER’S FIVE FORCES MODEL:Industry Analysis
See Michael E. Porter, Competitive Strategy, New York Free Press, 1980, for more information.
What is the amount of rivalry
What is the bargaining power
of
What is the threat of
What is the bargaining power
of
What is the threat of
significant
Regulation
Protecting Competition
• Robinson-Patman Act (1936)
• Sherman Antitrust Act (1890)
• Clayton Act (1914)
REGULATORY FORCESFEDERAL LEGISLATION
LO6
3-74
Product-Related: Company Protection
• Copyright Law
REGULATORY FORCESFEDERAL LEGISLATION
LO6
3-75
• Trademark Law
•
•
Pricing-Related
• Exclusive Dealing
• Requirement Contracts
Distribution (Place)-Related
•
•
REGULATORY FORCESFEDERAL LEGISLATION
LO6
3-76
FIGURE 4-1FIGURE 4-1 Four ways to classify marketing decisions according to ethical and legal relationships.
4-77
Business Cultures
ETHICAL MARKETING BEHAVIORBUSINESS CULTURE AND INDUSTRY PRACTICES
LO2
Ethics of Exchange
•
• Consumer Bill of Rights (1962) codified the ethics of exchange between buyers and sellers
• U.S. Consumer Product Safety Commission
• Federal Trade Commission (FTC)4-78
ETHICAL MARKETING BEHAVIORBUSINESS CULTURE AND INDUSTRY PRACTICES
LO2
Ethics of Competition
•
• Bribes and Kickbacks
•
4-79
4
CONSUMER MARKETING [B2C];
MARKETS & BUYER BEHAVIOR
WHAT IS A CONSUMER?
• The ultimate user that selects, purchases, uses, and disposes of goods or services to satisfy needs and wants.
A MODEL OF BUYER BEHAVIOR
Marketing andOther Stimuli
Marketing andOther Stimuli
Buyer’s Black BoxBuyer’s Black Box
Buyer’s ResponseBuyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Buyer Characteristics
Buying Decision Process
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
FIGURE 5-1FIGURE 5-1 The purchase decision process consists of five stages.
5-83
PURCHASE DECISION PROCESSCONSUMER BAHAVIOR – PROBLEM RECOGNITION
FEEDBACK
Internal Search
PURCHASE DECISION PROCESSINFORMATION SEARCH
LO1
External SearchPersonal sourcesPublic sourcesMarket-dominated sources
5-84
PURCHASE DECISION PROCESSALTERNATIVE EVALUATION
LO1
Evaluative Criteria Factors that represent both the objective attributes of a
brand and the subjective ones a consumer uses to compare different products and brands.
Consideration Set the group of brands that a consumer would consider
acceptable from among known brands in the product class.
5-85
PURCHASE DECISION PROCESSPURCHASE DECISION
LO1
Decide from Whom to Buy
Decide When to Buy
5-86
CUSTOMER FOCUSTHE VALUE OF A SATISIFIED CUSTOMER
• Customer retention [satisfaction]
•
•
•
AFTER THE PURCHASE:POSTPURCHASE BEHAVIOR
Consumer’s Expectations of
Product Quality and Performance
Consumer’s Expectations of
Product Quality and Performance
Dissatisfied CustomerDissatisfied CustomerSatisfied Customer!Satisfied Customer!
Product’s Perceived Performance Standard Product’s Perceived Performance Standard
CLASSIFICATION OF CONSUMER PRODUCTS
Shopping Products
> Considerable selection time & effort> Moderately brand loyal> Comparison shop> Few locations
Clothing, appliances, services
Convenience Products
> Frequently purchased> Little effort> Low priced> Numerous locations
Staples, impulse items
Specialty Products
> Unique characteristics> Significant purchase efforts> Brand – limited locations
Big Bertha golf club, Rolex
Unsought Products
> Little awareness or interest until need > Require much advertising & personal selling
Insurance, some innovations
> Unexpected need> Speed with little to no brand loyalty
Emergency room, ambulance, towing
PURCHASE DECISION PROCESSCONSUMER INVOLVEMENT & PROBLEM SOLVING
LO2
Involvement is the personal, social, and economic significance of the purchase to the consumer.
• Extended Problem Solving
• Limited Problem Solving
• Routine Problem Solving
5-90
PURCHASE DECISION PROCESSINVOLVEMENT & MARKETING STRATEGY
LO2
Low Involvement
• Maintain Product Quality
•
•
High Involvement: Use Ads and Personal Selling
5-91
• SOCIAL SURROUNDINGS
• – What do you notice when you go into a store?
• – Does the time of day affect your shopping?– How do you shop if you are in a hurry?
• – How does being unhappy affect your shopping?– How does the amount of money you have …
PURCHASE DECISION PROCESSSITUATIONAL INFLUENCES
LO2
FOUR TYPES OF BUYING DECISIONS
Behavior
Behavior
Behavior
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
HIGH INVOLVEMENT[Quality – Service – Facts]
Use personal sales – quality, facts, service
LOW INVOLVEMENT[Obvious differences]Use advertising, POP, emotional perceptions
DURABLE GOODS[Furniture, appliances, long-lasting items…]Use subjective appeals, advertising
NON-DURABLE GOODS[Grocery items, frequent purchases, …]Use sales promotion, price
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR: MOTIVATION AND PERSONALITY
Maslow’s Hierarchy of Needs
LO3
(Food, water, shelter, Advil-advanced medicine for pain)
(Food, water, shelter, Advil-advanced medicine for pain)1
(safety, financial security, protection)
(safety, financial security, protection)
2
(friendship, belonging, love)
(friendship, belonging, love)3
(self-esteem, recognition)
(self-esteem, recognition)
4
Self-actualization
(self-developmentand realization)
Self-actualization
(self-developmentand realization)
5 Personal improvement, legacy, philanthropy
Rawls College of Business
Designer itemsHilfiger, BMW, …
Cards, flowersHallmark, Carnival, …
InsuranceAllstate
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
MOTIVATION AND PERSONALITY
LO3
Personality
5-95
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
PERCEIVED RISK
LO3
Strategies to Reduce Perceived Risk
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
• Obtain Seals of Approval
5-96
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
LEARNING
LO3
• Cue
• Response
• Reinforcement
Behavioral Learning
• Drive (Hunger)
5-97
Cognitive Learning
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
ATTITUDES AND BELIEFS
LO3
• Beliefs -
Attitude Formation
• Values –
• Attitude –
5-98
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
ATTITUDES AND BELIEFS
LO3
• Add New Product Attributes
Attitude Change
• Changes Perceived Importanceof Attributes
• Change Beliefs About a Brand’s Attributes
5-99
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR: CONSUMER LIFESTYLELO3
ACTUALIZERS11.7%
FULFILLEDS10.5%
BELIEVERS17.0%
ACHIEVERS14.7%
STRIVERS11.8%
EXPERIENCERS12.9%
MAKERS12.0%
STRUGGLERS9.5%
Knowledge and
Principle
Achievement: success
Guided by self-expression:
Guided by
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
PERSONAL INFLUENCE
LO4
Opinion Leaders
Word of Mouth
5-101
5-102
Family Decision Making
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR FAMILY INFLUENCE
FIGURE 5-6FIGURE 5-6 Modern family life cycle stages and flows
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
SOCIAL CLASS
LO4
Social Class
• Working/Lower Class
• Middle Class
• Upper Class
5-103
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIORCULTURE AND SUBCULTURE
LO4
Culture
• Hispanic Buying Patterns
Subculture
• African American Buying Patterns
• Asian American Buying Patterns5-104
ISTHEIR REALITY!