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MARK 5342 Advanced Topics

Day 4 Implications for Marketing and Marketing Research. MARK 5342 Advanced Topics. Maslow’s Hierarchy of Needs. Independence needs. Self-actualization. Belonging needs. Social Needs. Ego Needs. Survival needs. Physiological Needs (food, water). Safety and Security Needs.

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MARK 5342 Advanced Topics

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  1. Day 4 Implications for Marketing and Marketing Research MARK 5342 Advanced Topics

  2. Maslow’s Hierarchy of Needs Independence needs Self-actualization Belonging needs Social Needs Ego Needs Survival needs Physiological Needs (food, water) Safety and Security Needs Source: Maslow, A., Motivation and Personality (New York: Grossman Publishers, 1970)

  3. Wants versus Needs • It is hard for consumers to identify their decision processes, as most are subconscious • It is also hard for them to separate needs versus wants • One method to map out their decision processes is a hierarchical value map

  4. Hierarchical Value Map • Map the linkages between product attributes, use consequences, and consumer goal-values • This can be used to transform either ZMET or MEC (ACV) brand laddering interviews into a probabilistic form • The joint probability for each chain can be viewed as a dependent variable

  5. Manipulation of Marketing Tools • Product • Price • Promotion • Place

  6. New Research Methodologies • Understanding the biases inherent in existing research tools like focus groups and surveys • Understanding the limitations of direct questioning to understand and predict consumer behavior • Do we need new methodologies or can we adapt existing ones?

  7. Impact on Existing Models

  8. Satisfaction • Oliver, 1993 • Satisfaction incorporates significant affect • Satisfaction is based on three pillars • How satisfied the consumer is with the product • Whether or not they would repurchase again • Whether or not they would recommend • Ego involvement in all three pillars

  9. Loyalty • Oliver, 1999 • Satisfaction and Loyalty are asymmetric • Whereas loyal customers are typically satisfied, satisfied customers don’t necessarily translate into loyal customers • After loyalty is established, the satisfaction imperative is diminished

  10. Brand Promises • Loyalty is strongly impacted by reputation and trust • Brand promises are not just empty phrases – consumers understand what is being communicated by the company and make choices accordingly

  11. Brand Attachment • Simonson, 1989 • Attraction effect – asymmetric dominance when one alternative is better than the other • Compromise effect – alternative tends to gain market share when it is the compromise or middle option in a set – this is opposite of the similarity effect • Marketers can provide a lesser comparison to gain share

  12. Brand Equity A good brand . . . . . . provides positive consumer responses . . . . . . and benefits both target customers and the firm Product, Price, Communication, Community, and Distribution Programs Brand Awareness • Depth • Breadth Customer Benefits • Confidence • Loyalty • Satisfaction Wrap-Arounds Core Product / Service Brand Associations • Strength • Relevant • Consistent • Valence • Uniqueness • Memorable • Distinctive Firm Benefits • Reduced marketing costs • Increased margins • Opportunity for brand extensions Source: David Aaker (1996), “Building Strong Brands,” (New York, NY: Free Press)

  13. Role of Brand Identity • It is critical for management to protect a firm’s brand identity and resulting brand equity • Brand equity of large global brands like Coca-Cola can be more than half of the market capitalization for the company • Firms must have: • A brand orientation mindset • Internal branding capabilities • Consistent delivery of the brand

  14. Future Trends

  15. Future Trends - Technology • Current and emerging means to find out what is going on in the brain • Galvanic Skin Response • Eye-tracking • fMRI

  16. Future Trends - Youth • Differences in Baby Boomers versus Echo Boomers • Attention span • Comfort with technology • Comfort with pace of change • Multi-tasking • Socially connected • Emotionally remote

  17. Future Trends – Pace of Life • The rate of change will continue to increase • This implies faster decisions, and implies more reliance on heuristics and affect than ever before • This implies the potential for falling prey to our own decision biases

  18. Future Trends - Ethics • Knowing how to manipulate purchase decisions carries a great responsibility • What is the line between competing for consumer dollars and loyalty versus manipulating unknowing and unprotected individuals?

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