Cultures & Marketing

1. Cultures & Marketing

2. Customer Decision making • Consumer Decision Making Process • Need Recognition • Information Search • Evaluation of Alternatives • Purchase • Postpurchase Behavior • Consumer Buying Decision / Involvement • Routine • Limited • Executive • Factors that Influence Consumer Buying Decisions • Culture • Social • Individual • Psychological

3. Components of culture

4. Culture • The United States & other societies have a social class system. • A social class is a group of people who are considered nearly equal in status or community esteem, who regularly socialize with one another, and share behavioral norms. • Upper class (Capitalist Class / Upper Middle Class) • 15% of country • Middle Class (Middle Class / Working Class) • 65% of country • Lower Class (Working Poor / Underclass) • 20% of country

5. Culture • Upper Class is more likely to… • Own house • Own car • Volunteer • Be active in civic affairs • Not smoke • Go on vacation • Go to concerts, sporting events, theatres, operas, museums, dance performances, art shows • http://www.youtube.com/watch?v=jF06waZ1y_Y • Most Americans define themselves as middle class when in reality 52% are below that income level. • Education is the #1 factor in determining income levels

6. Cultural Influences • Why do marketers care about social class and income? • Social class determined medium to use for advertising • Example: Middle class tends to care about local issues so advertising on local television is effective when targeting that income group. Target Upper class with print ads in business magazines • Knowing what products best appeal to which social classes can help marketers determine where to best distribute their products • Expensive products are more commonly sold in expensive areas

7. Social Influences • Consumers seek out other people’s opinion to reduce their search and evaluation effort on products • Customers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval • Reference Groups • A group in society that influences the buying behavior of an individual • Consumers may use products or brands to identify with or become a member of a group • They observe how members of their reference group consume & they use the same criteria to make their own consumer decisions.

8. Social Influences • References Groups • Direct: Face-to-Face membership groups that touch people’s lives directly • Primary Membership Groups: All groups with which people interact in an informal, face-to-face manner, such as family, friends, and co-workers. • Secondary Membership Groups: Less consistent interaction done at a more formal level. These groups might include clubs, professional groups, & religious groups. • Indirect • Aspirational Reference Groups: Groups a person would like to join. A person conforms to the norms of that group. • Example: • Want to be elected to a political group, dress more conservatively like other politicians • Teenagers want to fit in with certain groups they may die their hair and have piercings, tattoos. • Nonaspirational Reference Groups: Dissociative groups, influence our behavior when we try to maintain distance from them.

9. Social Influences Why do reference groups matter? • They serve as information sources and influence perceptions. • They affect an individual’s aspiration levels. • Their norms either constrain or stimulate consumer behavior. Example: Edgers Influencers  Conformers  Passives A&F created Hollister as a result of reference groups

10. Social Influences • Opinion Leaders: • An individual who influences the opinion of others. • These are the trend setters. • Marketers influence them so that they will influence others to buy • Opinion leaders are typically first to try a product • Usually self-indulgent • Willing to try new products (especially technology) • Marketers sometimes try to create opinion leaders by hiring attractive females to model products or giving away product for free so that cool people have it • Marketers look to blogs to determine interests. Teens are very open with thoughts online

11. Family • Family is the most important social institution for many consumers • Influence values, attitudes, self-concept, & buying behavior • Example: A family that values health eats & acts much differently than those that don’t • Socialization Process • The passing down of cultural values and norms to children • Children mimic their parents shopping habits • Initiators: Suggest, initiate, or plant seed of purchase • Influencers: Members of the family whose opinions are valued • The Decision Maker: Family member who actually makes decision about purchase • Purchaser: Person who actually exchanges money for product • Consumer: Actual user of the product

12. Individual Influences • Personal Characteristics also influence the buying decision • Characteristics that are unique to each individual • Gender • Age • Life-Cycle Stage • Personality • Self-Concept • Lifestyle • These characteristics are typically stable over a persons lifetime or change slowly

13. Individual Influences • Gender • Physiological differences between men & women result in different needs • Buy different Health & Beauty Products • Television programming has started targeting genders more • Magazines • Men & Women possess the same motivation when shopping • Reasonable prices • Merchandise quality • Low-pressure purchasing environment • Men & Women do not have the same opinion of shopping • Women enjoy it; men usually don’t • Men prefer simplicity. Less variety and more convenience . Men like to shop closer to home • Women change their mind more & value variety • Companies are recognizing the growth & influence of women and are targeting them more

14. Individual Influences • Age • Age indicates products you may buy • Examples: Food, clothing, cars, & furniture are all products that change with age • Age indicates what you read and watch you watch on television • Family Life Cycle • Orderly series of stages through which attitudes and behavioral tendencies • Consumers attitude & behavioral tendencies evolve through maturity, experience, and changing income & status • Marketers use phrases like “Young & Single” “Married with Children” • Married parents spend more on health care, clothing, housing, food, cars, & gas

15. Individual Influences • Personality • Broad concept that can be thought of as a way of organizing & grouping how an individual typically reacts to situations. • Personality combines psychological makeup & environmental forces • Some Marketers feel personality is one of the least important factors in the buying process • Some marketers believe it has a large influence on the types and brands of products purchased • Examples: Car, clothes, & jewelry

16. Individual Influence • Self Concept • How a consumer perceives themselves • Attitude, perception, beliefs, and self-evaluations • Usually changes are gradual in this area • Combines ideal self-image with real self-image • We want our real self-image to match our ideal standards • Consumers seldom buy products that jeopardize their self-image • Consumers shop at stores that support their image • Consumers buy cars that match their image • Lifestyle • A mode of living as identified by a persons activities, interests, & opinions • Psychographics are more measurable than personality traits • Gap uses lifestyle advertising to promote products