MARMA 3208 MARKETING MANAGEMENT o Vertical Integration Strategy

CHAPTER 1: Defining Marketing for the New - is the art and science of choosing target ▪ About supply chain
Realities markets and getting, keeping, and Manufacturer – Wholesaler- Retailer-
Value of Marketing growing customers through creating, Consumers
• Marketing creates demand for a specific delivering, and communicating superior o Gaining control over your
product customer value. supplier
o Demand converts sales that WHAT IS MARKETED? - Backward vertical integration
translate to income - Everything o Perform the function of
o Creates job - Goods, services, events, experience, wholesaler (retailer to
▪ High demand for products person, place, properties, wholesaler)
means it demand for organization, information, ideas o Dating retailer na gumawa na ng
more employees WHO MARKETS? own brand called private label
▪ High sales create - Marketers brank like SM Bonus
revenue that convert to o Seek attention - Frontward Vertical Integration
profit o Attention form to purchase o The wholesaler or manufacturer
Corporate Social Responsibility- possible if o Donation and vote performs the function of retailer
there’s a surplus in the profit. - Seeking something or wholesaler
• It creates “differentiation” in business - Customers- seeking to receive o Sila mismo hahanap ng retailer
o Form of giving/give back in the TYPES OF DEMAND o Controlling over your
society 1. Negative Demand intermediaries
o Because consumers are o Inaavoid na bilhin o They are the one selling their
“emotional”, they would buy if o Walang demand created products to the consumers
they are giving back to the 2. Non-existent demand 5. Irregular Demand
society o Unaware or uninterested to o Seasonal
MARKETING specific product 6. Full Demand
- is the activity, set of institutions, and o Usually sa new business, hindi o There’s a market equilibrium
processes for creating, communicating, pa kilala 7. Overfull Demand
delivering, and exchanging offers that 3. Latent Demand o Many demands but supply
have value for customers, clients, o Strong need for a product but doesn’t match
partners, and society at large. there’s no supply 8. Unwholesome Demand
- Creating solution to a problem 4. Declining Demand o Attracted to product with
- “Meeting needs profitably” o Product life cycle undesirable social consequences
5 processes when buying a product: - To stay in maturity, like Jollibee did: o Vices
1. Identification of needs/problem arise o Jollibee bought his competitor
2. Information Search o Horizontal Integration Strategy
3. Evaluate the alternatives ▪ Gaining control over
4. Purchase competitor
5. Post-purchase Behavior ▪ About competitors
 STRUCTURE OF FLOWS IN A MODERN Nonprofit and Governmental Market- charity - Positioning
EXCHANGE ECONOMY o How consumers view your
CORE MARKETING CONCEPTS product
Needs o Mind of your consumers
- Stated needs- affordable Offering and Brands
- Real needs – low maintenance - Offering- products and goods are
- Unstated needs- expecting a good offered to market in exchange of
service something (money)
- Delight needs- has “wow” effect - Brands- product with brand has
- Secret Needs- may “cool” knowledge integrity and credibility
about sa product o Loyalty is gain through loyalty
Wants o Premium pricing because
Demand successfully launched the
- Human wants backed by integrity of the brand
purchasing/buyer power Pricing
Interacting set of markets CORE MARKETING CONCEPTS - Competition bases
Target Market, Positioning, Segmentation - Value-based priving- pag may brand
SIMPLE MARKETING SYSTEM - Target market na
o Who are your consumers? Marketing Channels
- Segmentation - More concern sa promotion ng product
o Segment your target to have - Being communicated sa consumers
focus Supply Chain
o It could be: - More concern sa logistics
o Demographic- population, age, - Intermediary and wholesaler and retailer
gender Manufacturer
o Geographic – location, region Wholesaler (purchasing bulk)
Market- collection of buyers o Behavioral – bio patterns, Retailer (tingi ng products)
Industry- collection of sellers ▪ loyalty status Consumers
• hardcore- iisang Paid, Owned, and Earned Media
KEY CUSTOMER MARKETS brand lang - Paid- sponsor
Consumer Market- buying products for • shifting- may - Owned- own feed sa social media
personal consumption (family) alternatives - Earned –
Business Market- buying something and turn it • switchers- no - Unpaid- PR packages but expecting
to something to sell loyalty feedback
Global Market- international brand enters local o Psychographic- combination of Impression and engagement
market psychology and demographic - Two-way communication
- ASEAN – has a free trade agreement, (lifestyle) - Connect with the brand
borderless economy
 Value and Satisfaction ➢ ‘Supply creates its own demand’ ➢ Ensures consistency
➢ Companies focus on producing - Selling Concept
Competition more of the product and making sure ➢ Production and product concept both
- intense because of social media focus on production but selling concept
that it is available to the customer
Marketing Environment focuses on making an actual sale of the
everywhere easily
- micro- forces near to business
➢ Increase in the production of the product.
o competitors, consumers
product makes the companies get ➢ Selling concept focuses on making every
o external factors
o factors closely affecting the the advantage of economies of scale. possible sale of the product, regardless of
business This decreased production cost the quality of the product or the need of the
- macro- larger forces that affects micro makes the product inexpensive and customer.
environment more attractive to the customer ➢ The main focus is to make money. This
o PESTLE – cannot be controlled ➢ Mas mura mabibili ng consumers philosophy doesn’t include building relations
▪ How politician decide ➢ Mura= more supply could create demand with customers
▪ Specific laws and ➢ Economies of scale- cost advantage if ➢ Repeated sales are very less. Companies
regulations you have high production following this concept may even try to
THE NEW MARKETING REALTIES o Small unit cost deceive the customers to make them buy
- Major societal factors o Disseminated yung cost into their product
o IT – Globalization – borderless many product ➢ Companies which follow this philosophy
economy ➢ Focus on production not on quality have a short sighted approach as they ‘try to
o Consumer Info – Increased ➢ Necessities sell what they make rather than what market
competition – differentiation - Product Concept wants’
- New Company Capabilities
➢ This concept works on an assumption that ➢ Selling concept cannot let a company last
o Collect info with customers
customers prefer product of ‘greater quality’ long in the market
WHO IS RESPONSIBLE FOR MARKETING? and ‘price and availability’ doesn’t influence ➢ Actual sale of the product, regardless of
- Entire organization their purchase decision the quality and the need
o Activities of marketing dept ➢ Company devotes most of its time in ➢ Main focus is to make money
would not be possible without developing a product of greater quality - Marketing Concept
the help of others. which usually turns out to be expensive ➢ To succeed in the 21st century, one has
- Chief Marketing Officer- directly ➢ Since the main focus of the marketers is to produce a product to fulfill the needs of
responsible the product quality, they often lose or fail to their customers.
appeal to customers whose demands are ➢ This concept works on an assumption that
PHILOSOPHIES driven by other factors like price, availability, consumers buy products which fulfill their
- Production Concept usability etc needs.
➢ This concept works on an assumption ➢ Greater quality ➢ Businesses following the marketing
that consumers prefer A product which is ➢ Hindi nabibili kahit saan concept conduct researches to know about
inexpensive and widely available.
customers’ needs and wants and come out - Integrated Marketing ➢ Delivering value
with products to fulfill the same better than o Create, communicate, and ➢ Communicating value
the competitors deliver value for consumers “ ➢ Conducting marketing responsibly for
➢ Business establishes a relationship with o the whole is greater than the sum longterm success
the customer and generate profits in the of its parts”
long run o integrate message into different
➢ Creates customer wants or need = platforms
success o consistent messages
➢ Understand your market – product – sell o the whole is greater than the sum
- Holistic Marketing Concept of its part
➢ Adding to the marketing concept, this - Performance Marketing
philosophy focuses on society’s well o How well the firm performs
being as well. o Financial and non-financial
➢ ➢ Business focuses on how to fulfill the o CSR
needs of the customer without affecting - Internal Marketing
the environment, natural resources and THE EVOLUTION OF MARKETING
focusing on society’s well-being. MANAGEMENT
➢ ➢ This philosophy believes that the Marketing Mix
business is a part of the society and - Product
hence should take part in social services - Place
like the elimination of poverty, illiteracy, - Promotion
and controlling explosive population - Price
growth etc Modern Marketing Management (After
➢ Not after the profit the Birth of Services Business)
➢ Charity side of business - People
➢ Government (campaigns) - Processes
HOLISTIC MARKETING DIMENSION - Programs
- Relationship Marketing - Performance
o Relationship marketing aims to
build mutually satisfying long- MARKETING MANAGEMENT TASKS
term relationships with key ➢ Developing market strategies and plans
constituents in order to earn and ➢ Capturing marketing insights
retain their business ➢ Connecting with customers
o Build relationship with ➢ Building strong brands
stakeholder ➢ Creating value
o Mutual understanding
CHAPTER 2: Developing Marketing performed to design, produce, market, o Procurement- sila yung bibili
Strategies and Plan deliver, and support its product. CORE BUSINESS PROCESSES
- Primary Function - Market-sensing process
MARKETING- is about satisfying consumers’ o Marketing and sales- to inform o Gather insights or information
needs and wants customers from marketing analyst
- First step: understand your marketplace o Logistics - New-offering Realization
o Operations- transform from raw o What can we offer?
THE VALUE DELIVERY PROCESS materials to finish products o Developing and launching
-Traditional – selling concept o Services- all services to keep the product
- Value- marketing concept product and service effectively - Customer Acquisition Process
- strategic marketing – the planning side o Outbound Logistics- how you o Defining the target market
- Segment, Target, Positioning deliver the product o Prospecting new customer
-Tactical marketing- implementation side o Inbound logistics- supplier role - Customer relationship management
- providing the value (product - Support Function process
development) o Out of sight o Handling or managing how to
-CREATING VALUE – jpw you present it to o Giving support to primary build relationships with the
your customer matters o Other functions ng firm customers
- interaction of the service o SM advantage card, watsons
MICHAEL PORTER’S VALUE CHAIN card
THREE V’s APPROACH TO MARKETING o Through assuring that products
- Value Segment don’t stock out
o Understand the segments - Fulfillment management process
o most priority to give more o Approving, shipping products,
attention payment
- Value Proposition o Fulfilling the orders of the
o Promise or statement that states customers
the promise to the customers CHARACTERISTICS OF CORE
- Value Network COMPETENCIES
o Building network - A source of competitive advantage
o Strength to perform certain
VALUE CHAIN - Support functions
o Many processes before end goal. o Infrastructure- building o Di madaling gayahin
- The value chain is a tool for identifying o HR- walang magmonitor ng - Application in a wide variety of
ways to create more customer value performance or payroll markets
because every firm is a synthesis of o Technology Development- o Is there a market for your
primary and support activities equipment, hardware, software strength?
- Difficult to imitate Levels of a Marketing Plan CORPORATE HEADQUARTERS’ PLANNING
o Hindi siya competitive advantage - Strategic (STP Plan) ACTIVITIES
if madaling gayahin o Target marketing decisions • Define the corporate mission
o Value proposition • Establish strategic business units (SBUs)
FIRM SHOULD CONSIDIER KEY o Analysis of marketing - small business within the big companies
QUESTIONS opportunities • Assign resources to each SBU
- Can we learn from the past? - Tactical • Assess growth opportunities
- How should the present be evaluated? o Product features
- What do we envision for the future? o Promotion GOOD MISSION STATEMENTS
o Bakit kaya? o Merchandising - focus on limited number of goals
o See the failing point from the o Pricing - stress major policies and values
past o Sales channels - define major competitive spheres
o Develop criteria or matrix to o Service - take a long-term view
evaluate the strategy - short, memorable and meaningful
CORPORATE PLANNING - understand the mission (reason why
HOLISTIC MARKETING - Planning the entire corporation you started)
- Holistic marketing sees itself as DIVISION PLANNING - guiding principle in planning strategy
integrating the value exploration, value - Just planning the division - tell the utility and benefits we could get
creation, and value delivery activities BUSINESS PLANNING from product
with the purpose of building long-term, - Product planning o product orientation
mutually satisfying relationships and o brand manager ▪ tell product
prosperity among key stakeholders. Strategic Planning, Implementation and o market orientation
- Integrating all in the society Control Processes ▪ mas maganda
CHARACTERISTICS OF SBUs
MARKETING PLAN - it is a single business or collection of
- A marketing plan is the central related businesses
instrument for directing and coordinating - it has its own set of competitors
the marketing effort. It operates at a - it has a leader responsible for strategic
strategic and tactical level. planning and profitability
- Planning the marketing activities in the
market
- Strategic and tactical marketing
- One aspect of business plan
 Strategic Planning Gap o acquiring new field or industry - Implement
na hindi mo forte - Feedback and control – effective ba?
o related – related field MARKET OPPORTUNITY ANALYSIS (MOA)
▪ acquire another same in - Can the benefits involved in the
the industry opportunity be articulated convincingly
o unrelated- acquire not same in to a defined target market?
the industry you offer o Process of evaluating the
- why inquire? potential of goods or service to
o To have other options pag hindi specific target market
na progressive yung sales sa o Factors: assess market size
another field ▪ Competition demand –
sales forecast
- fill in the gaps CORPORATE CULTURE - Can the target market be located and
Strategies Suggested by Ansoff’s Product-Market - Corporate culture is the shared reached with cost-effective media and
Expansion Grid experiences, stories, beliefs, and norms trade channels?
that characterize an organization. o is your target market could make
THE BUSINESS UNIT STRATEGIC profit?
PLANNING PROCESS o Based on customer request and
market demands
- Does the company possess or have
access to the critical capabilities and
resources needed to deliver the
customer benefits?
- Can the company deliver the benefits
-Mission- guiding principle/purpose better than any actual or potential
- external – opportunity and threat analysis competitors?
- intensive growth – starting, need to - micro- directly affecting the business - Will the financial rate of return meet or
strive harder - macro- pestle, external environment exceed the company’s required threshold
o market penetration- both - internal – swot analysis for investment?
existing Strength - 4ps of marketing- price, place, TO COMPUTE FORECAST DEMAND
o product development- new yung promotion, product - TAM – total addressable market
product pero existing the market - brand reputation - SAM- serviceable available market
o market development – existing Threat – suppliers, may disrupt - SOM- serviceable obtainable market
yung product,new yung market operations TAM – total demand for a product/servies
- integrative growth- integrating - Formulate your goal SAM- segment of total addressable market
- diversification growth- both new - Formulate your strategy that your business can have
 - SOM- pwedeng maging market 2. PROMOTIONAL ALLIANCE – one
~ broad to specific quantity to project total sale 1. Most critical threats requiring company agrees to do promotion for
immediate attention one company
OPPORTUNITY MATRIX 2. Monitored only- serious but low o team-up
occurrence 3. LOGISTIC ALLIANCE- company offers
3. Frequently less critical- logistical service for one company
manageable, controlled thru 4. PRICING COLLABORATION – one
proper planning company join for special pricing
4. Goal – least concerning threat agreement
o Travel agency, airline
GOAL FORMULATION AND MBO
• Unit’s objectives must be hierarchical MARKETING PLAN CONTENTS
• Objectives should be quantitative - Strategic (stp) / Tactical
• Goals should be realistic (implementation)
• Objectives must be consistent - Plan to do marketing activities
1. High- powerful - Strategic management collaborating - Analysis using the tools (SWOT/PESTLE)
quadrant - approach – set objectives - Cost
2. Attractive but - hierarchy ✓ Executive summary
risky - SMART ✓ Table of contents
3. Low potential ✓ Situation analysis
4. Low not worth PORTER’S GENERIC STRATEGIES ✓ Marketing strategy
investing (least - ALL BUSINESS CAN USE IT
✓ Financial projections
favorable, - OVERALL COST LEADERSHIP- leader
✓ Implementation controls
avoided) ▪ Pinakamababang cost sa
THREAT MATRIX market EVALUATING A MARKETING PLAN
▪ Production concept ✓ Is the plan simple?
- DIFFERENTIATION- striving hard, ✓ Is the plan specific?
higher price, superior quality ✓ Is the plan realistic?
▪ Product concept ✓ Is the plan complete?
- FOCUS- focusing on specific segment
▪ Small business FOCUS ON MARKETING ACTIVITIES
ALONE.
CATEGORIES OF MARKETING ALLIANCE
1. PRODUCT/SERVICE ALLIANCE- bundle
o Two brands will create 1 product
(licensed)
CHAPTER 3: CONDUCTING MARKETING - to gain insights ▪ probability or non-
RESEARCH - to have diagnostic information on how probability
and why consumers buy ▪ convenience, stratified,
Should know the… - it could be used in visual merchandising random sampling
- Reason, steps and decision. - study the purchasing habit or power of o approaches
- In marketing, there’s a reason why you the consumers ▪ observation of
are conducting it and it would be useless - study on how and why we observe customers, focused
if you won’t use your research in decision certain effects on the consumers group (gather
making respondents), survey,
Research Activities could be… CREATIVE RESEARCH MEANS behavioral data (common
- In house, it is costly - Check out rivals – competitors on medical field),
- Outsource, mostly used by the - Internet sources experiment (medical
company. AC Nielsen is one of the known - Marketing partners – building partners field)
big company in researching outsource, to other o research instrument
they are only hired wehne needed. o Example, competition in ▪ what device to use
o Less costly, project based producing marketing plan or ▪ questionnaires
▪ Like Accenture and business plan ▪ qualitative measures
Alorica o tapping fresh graduates to ▪ technological devices
- BPO – Business Process Outsourcing further gain insights for fresh 3. collect the information- (data
o It offers a broad line of services ideas gathering)
- The company has a competitive - student projects o online survey, but matagal
advantage if it is good compare to other. retrieval ng data
MARKETING RESEARCH PROCESS o telephone survey
MARKETING RESEARCH 1. define the problem and research o in-home surveys
- Marketing research is the systematic objectives- o face to face interview
and objective o focused on inquiry 4. analyze the information
o Identification o magtanong sa customers o statistical tool (annova, t-test)
o Collection o asking, observations o develop summary measures
o Analysis 2. develop the research plan o compute averages
o Dissemination o what sources to use o statistical analysis/ decision
o Use of information ▪ primary- conduct own models
- For the purpose of improving decision survey 5. present the findings
making related to the ▪ secondary – publicly 6. make the decisions
o Identification and available
o Solution of problems and o sampling plan
opportunities in marketing
 CHAPTER 4: CONSUMER MARKETS AND
CONSUMER MARKET BEHAVIOR: Role
and Influential Factors
CONSUMER MARKET
- refers to all of the personal consumption
of final consumers
- bumibili ng bagay for their own
consumption (you buy, you consume)
CONSUMER BUYING BEHAVIOR
- refers to the buying behavior of final
WHAT TYPE OF COMPANY ARE YOU? consumers—individuals and households
MARKETING-MIX MODELING who buy goods and services for personal
Marketing mix modeling has three consumption
shortcomings, as outlined by Dave Reibstein: - kung ano yung buying behavior ni
1. focus on incremental growth rather than consumer
on long-term sales MODEL OF BUYING BEHAVIOR
2. integrating multiple metrics (such as
satisfaction, awareness, and brand
equity) is limited
3. these models fail to incorporate metrics
related to competitors, the trade, or the
sales force
MEASURING MARKETING PRODUCTIVITY -stimuli- bakit nagrereact yung tao to buy
1. marketing metrics- to measure if MARKETING DASHBOARDS - 4P’s, PESTLE
effective or not - To check customer relationship metrics - buyer’s black box – how you perceived things
2. marketing-mix modeling- product, price, (CRM) - attitude, views, decision process
promotion, place - If okay ba yung promotion - why black? Because hindi kayang
o to determine if the 4P’s are basahin ng professionals yung nasa isip ng mga
effective and helping the tao
business - buyer respondses- what product
o to quantify, compare, interpret - what brand
to produce the marketing - factors: sale, higher/lower
metrics, it is the marketing prices
performance report
 FACTORS AFFECTING CONSUMER o A prime- wealthiest, upper class • Include b/vlogs, social networking sites
BEHAVIOR o AB- upper income class (facebook), virtual community (virtual
CULTURAL o Upper C – upper middle class life)
- culture o Broad C – broad middle class • Crowdsourcing
o Culture is the learned values, o Lower C- lower middle class • Role consists of the activities people are
perceptions, wants, and behavior o DE- lower class expected to perform according to the
from family and other important persons around them
institutions SOCIAL FACTORS: Groups and Social • Status: each role carries a status reflecting
o Nakasanayan Networks the general esteem given to it by society
- Subculture - Reference group - Depends on the role
o SubCulture is a group of people with o Have direct or indirect influence on - Ineexpect ng society na gawin mo based
shared value systems based on consumer behavior on your role
common life experiences and - Membership Groups - Carry the status of what you are doing
situations o Groups with regular but informal PERSONAL FACTORS
o may be nationality groups, religious interactions (primary) - Age and life-cycle stage
groups, racial groups, or geographic o Groups that are formal and have less Generally accepted lifecycle stage in the
area groups regular interaction (secondary) Philippines
o Asian American- language and - Aspirational groups
cultural barrier o Groups that form a comparison or
▪ Fastest growing most reference in forming attitudes or
affluent segment behavior
▪ Nakakaluwag-luwag • Word-of-mouth influence and buzz
o African American – tremendous marketing
market – Opinion leaders are people within a
o Hispanic Market- very brand loyal reference group who exert social
o Mature consumer – generation x influence on others (informal
and boomers advice/info)
*It affects how we produce advertisement – Also called influentials or leading
- Social class adopters - Occupation affects the goods and
o Society’s relative permanent and – Marketers identify them to use as services bought by consumers
ordered divisions whose members brand ambassadors - Economic situation includes trends in:
share similar values, interest, and • Online social networks are online personal income, and savings
behaviors. communities where people socialize or - Lifestyle is a person’s pattern of living
o Measured by: occupation, income, exchange information and opinions as expressed in his or her
education, wealth, other variables (Forum) psychographics
o In the Philippines ,
 • Measures a consumer’s AIOs ▪ when you have a belief the interest in buying, it
(activities, interests, opinions) to and it support what you helps the strong stimuli
capture information about a believed in and fit your ▪ responses-
person’s pattern of acting and own idea of something ▪ reinforcement
interacting in the environment o Selection Retention- is the - Beliefs and Attitudes
o Buying a product to support tendency to remember good o Belief is a descriptive thought
lifestyle points made about a brand they that a person has about
PSYCHOLOGICAL FACTORS favor and forget good points something based on: knowledge,
- Motivation about competing brands opinion, faith
o Motive is a need that is ▪ you remember good o Attitude describe a person’s
sufficiently pressing to direct the points, loyal to a specific relatively consistent evaluations,
person to seek satisfaction brand feelings, and tendencies toward
o Motivation research refers to - for you to know how to communicate an object or idea
qualitative research designed to your brand
probe consumers’ hidden, - subliminal perception -unconscious
subconscious motivations perception, in the sense that the subject CONSUMER BUYING ROLES
- Perception is not consciously aware of the stimulus. (involvement in the buyer’s decision-
o Perception is the process by o Subliminal advertising – most making)
which people select, organize, marketer worry about whether • Initiator: the person who first suggests or
and interpret information to form this offers will be perceived at all, thinks of the idea of buying a particular product
a meaningful picture of the world some consumers that they’ll be • Influencer: a person whose views or advice
from three perceptual processes. affected by the marketing influences the buying decision
How you perceived things messages without even knowing - External
o Selective Attention – is the - Learning - Outside of you
tendency for people to screen out o is the change in an individual’s • Decider: the person who ultimately makes the
most of the information to which behavior arising from experience buying decision
they are exposed and occurs through interplay of: • Buyer: who makes the actual purchase
▪ exposed to great stimuli ▪ drives- strong stimulis • User: the person who consumes or uses the
everyday and what that calls for action product or service
captures your attention it ▪ stimuli- becomes motive,
will retain directed to specific - One can perform the function of
o Selection Distortion- is the stimulus four except the influencer
tendency for people to interpret ▪ cues- minor stimulus,
information in a way that will where, when and how "Statistics suggests that when customers
support what they already you will respond. Affects complain, business owners and managers ought
believe to get excited about it. The complaining
customer represents a huge opportunity for - Word-of-mouth ▪ Pinakamataas na rating
more business." - From advertisement or internet sa pinakagustong
- Zig Ziglar - Search Engine Optimization – attribute
companies are paying for them to be on o Elimination-by-aspects heuristic-
top of the search bar. “sponsored” the consumer compares brands
4.2: CONSUMER MARKET AND - Evaluation of Alternatives on an attribute selected
CONSUMER MARKET BEHAVIOR: The - Expectancy- value model • Inieliinate yung hindi
buying decision process - Purchase Decision gusto
- Two factors intervene (intervening High-price – high involvement sa pagcoconsider
The Five-Stage Model factors) between purchase intentions Low price- low level of involvement peor
- Problem/Need Recognition and the actual decision: ginagawa pa rin
- two types of need: o Attitudes of others
o utilitarian- things to buy because o Unexpected situational factors - Postpurchase behavior
we want to accomplish - Noncompensatory Model: mental - Satisfaction is important:
something shortcut called heuristics - Delighted consumers engage in positive
o hedonic – needs for - By rating mismo nagseset ka na ng word of-mouth
entertainment, emotional and minimum acceptable cut-off - . Unhappy customers tell on average 11
recreational experiences, - Choice Heuristics other people.
consumer pleasure o Conjunctive heuristic- the - It costs more to attract a new customer
- Needs ca be triggered by: consumer sets a minimum than it does to retain an existing customer.
o Internal Stimuli- within you acceptable cutoff level for each - Cognitive dissonance is common-
▪ Normal needs become attribute and chooses the inconsistent though
strong enough to drive alternative which meets the
behavior minimum standard for all
o External Stimuli- from others attributes
▪ Advertisement ▪ Yung may pinakamataas
▪ Friends of friends na rating, hindi man
▪ To target nareach yung maximum
- Information Search na gusto mo but may
- Consumers exhibit heightened attention acceptable standard
or actively search for information. o Lexicographic heuristic- the
- Sources of information: consumer chooses the best
o Personal BRAND on the basis of its
o Commercial perceived most important
o Public attribute
o Experiential