BE 604 – Marketing Management

BE 604 – Marketing Management

 01 02
Recap Consumer
Agenda Behavior

BE 604 – Marketing Management

January 31, 2022 BE 604 – Marketing Management
 Key Words with update from last class

BE 604 – Marketing Management

BE 604 – Marketing Management
Market Oriented Organization
• “Outside-in” perspective, focus on target market (Pillar #1 –
Target Market)

• Focus is on discovering & satisfying customer needs, creating

environment conducive to dialogue building long term
“relationships” (Pillar #2- Customer Relationships)

• Attract and retain customers profitably (Pillar #3 - Profitability)

• Everyone is involved, having cross-functional coordination (Pillar

#4 - Integrated Marketing)

BE 604 – Marketing Management

Consumer Behavior

BE 604 – Marketing Management

 Processes & activities people
engage in when searching for,
Consumer selecting, purchasing, using,
evaluating and disposing of
Behavior products and services so as to
satisfy their need/wants.

8
BE 604 – Marketing Management
 A Model of Buyer Behavior
Marketing Mix

Individual / Social Purchase

Psychological Influence Situation
Variables
Purchase Reason
Lifestyle Family Time
Motivation Social Class Surroundings
Perception Reference Groups
Learning
Attitude Culture
Personality

Individual Decision
Making

Problem-Solving Process

Person Does or Does Not Purchase (Response)

BE 604 – Marketing Management
 Problem Solving Process
1. Problem Recognition

2. Information Search

Temporal, Social,
Individual and
Psychological 3. Evaluation of Alternatives
Factors impact
all steps
4. Purchase

5. Post purchase Behavior

BE 604 – Marketing Management 10

 Problem Recognition
Problem Recognition Occurs Whenever the Consumer Sees a Significant
Difference Between His or Her Current State and Some Desired or Ideal State.

Consumer’s Ideal State

Need Recognition
Occurs By:
• Running Out of a
Product
• Deficient Product
• New Needs

Opportunity
Recognition Occurs By:
• Exposure to Different
or Better-Quality
Products

Consumer’s Actual State

BE 604 – Marketing Management
 Problem Recognition
Desired State Actual State

Significant NO
Ideal State
Difference?

YES
Problem Definition

Hold Effects Info Search

BE 604 – Marketing Management

BE 604 – Marketing Management
 Internal Search
Problem

Internal Search

Internal
Search
Results

No Solution Purchase External Search

BE 604 – Marketing Management

BE 604 – Marketing Management
 External Search

WHAT ARE THE ALTERNATIVES? WHAT ARE THE EVALUATIVE HOW DOES EACH ALTERNATIVE
CRITERIA? PERFORM ON EACH
CRITERION?

BE 604 – Marketing Management

 External Search Information Matrix

Personal Non Personal

Commercial Salespersons Advertisement

Employees Packaging

Non Commercial Friends News

Co-Workers Articles

BE 604 – Marketing Management

The Social Consumer

BE 604 – Marketing Management 18

 How Much Information to Search?

The Inverted U
Amount of Search

Why is the consumer

searching?

Novice Product knowledge Expert

BE 604 – Marketing Management

 Perceived Risk

• The focal point of consumer

behavior is the choice decision
• But, the outcome of any
decision can only be known in
the future
• So, the consumer is always
forced to deal with the
perceived risk
• As a general rule, a person will
not engage in a behavior unless
the perceived risk is somehow
reduced

What would make a purchase risky?

BE 604 – Marketing Management

Perceived Risk

• Functional Risk

• Physical Risk

• Financial Risk

• Psychological Risk

• Time Risk

BE 604 – Marketing Management

Reducing Perceived Risk

BE 604 – Marketing Management

Problem Solving Process
BE 604 – Marketing Management 23
 External Search

WHAT ARE THE ALTERNATIVES? WHAT ARE THE EVALUATIVE HOW DOES EACH ALTERNATIVE
CRITERIA? PERFORM ON EACH
Evoked Set of CRITERION?

Brands
BE 604 – Marketing Management
Evaluation of Alternatives
BE 604 – Marketing Management
January 31, 2022 BE 604 – Marketing Management
January 31, 2022 BE 604 – Marketing Management
BE 604 – Marketing Management
BE 604 – Marketing Management
BE 604 – Marketing Management
BE 604 – Marketing Management
What Were We Evaluating ?

BE 604 – Marketing Management

 Decision Rules
Consumers Consider Sets of Product Attributes by Using Different Decision
Rules, Depending on the Complexity of the Decision and the Importance of
the Decision to Them.

Noncompensatory Compensatory
Decision Rules Decision Rules

Lexicographic Simple Additive

Conjunctive Weighted Additive

BE 604 – Marketing Management

 Mini Tablets Compared
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size 7in 7in 8.9in 7in 7.85in
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm

CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
3G? option option N option
Wi-Fi 802.11n dual 802.11n dual 802.11n dual 802.11n 802.11n
antenna antenna antenna
Other wireless LTE in US LTE in US

Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
Rear camera N N N N 5MP
1080p video
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
34
 Lexicographic - Kindle Fire HD 8.9 Wins!
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size 7in 7in 8.9in 7in 7.85in
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm

CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
3G? option option N option
Wi-Fi 802.11n dual 802.11n dual 802.11n dual 802.11n 802.11n
antenna antenna antenna
Other wireless LTE in US LTE in US

Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
Rear camera N N N N 5MP
1080p video
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
35
 Conjunctive - Kindle Fire HD 8.9 Wins!
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size Min: 7.5in 7in 7in 8.9in 7in 7.85in
screen res Min: 1024 x 1024 1280 1920x 1280 1024
768 x600 x800 1200 x800 x768
screen ratio Min: 16:9 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm

CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
3G? option option N option
Wi-Fi 802.11n dual 802.11n dual 802.11n dual 802.11n 802.11n
antenna antenna antenna
Other wireless LTE in US LTE in US

Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
Rear camera N N N N 5MP
1080p video
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
36
 Simple Additive - Kindle Fire HD 8.9 Wins!
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size 7in 7in 8.9in 7in 7.85in
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm
Storage 1 2 3 2 3
CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
Screen size 1 1 3 1 2
3G? option option N option
Wi-Fi
Screen res 802.11n1dual 802.11n
2 dual 802.11n
3 dual 802.11n
2 802.11n
1
antenna antenna antenna
Other
Screenwireless
ratio 2 3 LTE 3in US 3 LTE1 in US

Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
Screen ppi 1 2 2 2 1
Rear camera N N N N 5MP
1080p video
Score 6 10 14 10 8
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
37
 Weighted Additive - Kindle Fire HD 8.9 Wins!
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size 7in 7in 8.9in 7in 7.85in
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm
Weight
CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
Storage 0.1 1 2 3 2 3
3G? option option N option
Screen
Wi-Fi 802.11n
0.05 1 dual 802.11n
1 dual 802.11n
3 dual 802.11n
1 802.11n
2
size antenna antenna antenna
Screen
Other wireless0.05 LTE 3in US LTE1in US
1 2 2
res
Screen
Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
0.3 2 3 3 3 1
ratio
Rear camera N N N N 5MP
Screen 1080p video
0.5 1 2 2 2 1
ppi
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
Score 1 1.3 2.25 2.5 2.25 1.25
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
38
Our Decision

BE 604 – Marketing Management

January 31, 2022 BE 604 – Marketing Management