The 4 P’s & Marketing environment
Product: Features-> Tactile. Benefits: emotional reaction to a feature ( happiness, satisfaction, validation..) . Target Marketing can’t be too broad. Need to select consumer Segments ( age, geographics..)
Price: Low/Medium/High
Place: Supply Chain: who/where/what/how
Promotion: Advertising ( manufacturer to consumer: facebook, tv..). Retailer to consumer: Retailers name (cvs..)
Different Marketing environment
Demographic: Race/gender/lifestyle/age/income
Cutural: Values/perceptions/preference/behaviors
Economic: Goods affected by the economy/ Factors that affects consumers.
Natural: natural ressources
Political: Pressure groups or law
Technological: New technologies.
Motivation
Attitude: Influenced by involvement w product/ how your learned about it.
Lifestyles: Students/ fashionistas/ Sci-Fi/ Parents/ musicians…
Family: Decision makers/ Influencers
Reference groups: The ones providing the informations of the product.
Culture: Depending of where you are from, and what you trust in.
Awareness: Advertisments, Involvement
The consumer Decision Process
Need Recognition: When consumer sees a difference between current and ideal state. /Needs/ Wants/ Good marketers develop products around needs/wants.
Search for Information: Research through reference groups or social medias.
Alternative Evaluation: Compare with another similar product. ( Price/Quality)
Purchase: Deciding & acting
Post-Purchase Evaluation: Satisfaction or no/ Expectations met? / Brand Loyalty after satisfactory purchase.
Motivation and Consumer Values
Motivation: Defined as an instinct
-Needs: Fundamental biological and socio-psychological instincts ( natural ressources…)
-Wants: Form of consumption capable of satisfying an underlying( fundamental) need.
: Passions that involve yearning( desire) or wishing for smthng.
Motivation allows the retailers to satisfy the consumers focusing on developing the “ correct” products.
TWO CLASSIC THEORIES OF MOTIVATIONS:
Maslow’s hierarchy of need:
-Simplistic
-Ignores the intensity of needs
-Ordering of needs not consistent across cultures.
Murray’s Theory of Motivation
-List of 22major human needs ( Achievement/aggression/autonomy..)
-Depending on social/cultural circumstances, needs are flexible.
-Acquisition needs: Gain possessions and property
-Order needs: Achieve cleanliness, organization, balance
-Retention needs: keep possession of things, to be frugal( prudent)
Other factors:
-Loyalists: Involved w the product category & loyal to a brand.
-Information seekers: Involved w a product category but no favourite brand. Still motivated by seeking info.
-Bargain Hunters: Those who seek bargains ( Cheap products)
-Switchers: No preference in category or brands.
Consumer Values:
Value: A belief that some condition is preferable to its opposite.
( Freedom better than slavery/ Younger better than older..)
Core Values:
-Enculturation: Same culture forever
-Acculturation: Learning a culture
3 Measures of Values:
Rokeach value survey: Terminal values ( personal goals) : Comfortable life/ freedom/ happiness/ pleasure/ true friendship.
Instrumental values ( reaching personal goals): Ambitious/ clean/ courageous/ helpful/ independent
List of value (LOV) : Consumer segments/endorsed value.
Values and Lifestyle Systems (VALS):
Separated market into 8 groups based on Maslow’s hierarchy of needs
-Innovators: Leading edge of change, highest income. Image is important ( taste, independent, character)
-Thinkers: Mature, responsible, well educated professionals. High ressources group motivated by ideals.
-Believers: Conservative, predictable. Centered on family community, nation. Low resource group motivated by ideals.
-Achievers: Successful, satisficed by job and family. Respect authority. High resource group motivated by achievement.
-Strivers: values similar as achievers, fewer ressources such as economical , social … Style really important. Low resource group motivated by achievement.
-Experiencers: Youngest of all the segments ( average 25), energetic, spending on clothing, fast-foods, music… High resource group motivated by self-expression.
-Makers: Low resource group motivated by self-expression. Pratical people, focused on the familiar family. Not such interest in broader world. Appreciate pratctical and functional products.
-Survivors: Lowest incomes. Few or none ressources. Oldest ( average 61)/ Brand loyal consumers.
Consumer Behavior
Consumption is the prime goal of any production. The consumers are important in setting up the standards of production especially in a competitive marketing environment. In the automobile manufacture, there are several factors that influence production and subsequent selling within the context of the production and marketing. In particular, marketing is a major aspect that dictates the level and quantity of production as it defines the size of market demand for the product. At Honda, the Honda ASIMO is one of the innovative approaches to production and marketing. In particular, it has been one of the essentials of production which has influenced the company in a number of ways. For instance, the Honda ASIMO has been manipulated in the provision of services such as serving the customers.
In particular, some of the aspects of marketing environment which has been subject to the influence of Honda ASIMO are technology and culture. Essentially, the manipulation of the Honda ASIMO through its Facial Recognition Technology (FRT) has been critical to the improvement of quality delivery for the organization. Indeed, the aggregate market for the Facial Recognition Technology has an anticipated growth of approximately 239% within a span of five years from its current level of about 1.92 billion dollars. Over the years, FRT has been gaining value and use in a wide market segment including the lucrative feature to investors which has been manipulated in the establishment of Bill Boards in major malls. This virtue would see a high sale of Honda ASIMO into other regions and market segments too.
Nevertheless, with the consumer target of age limits, 45-55 years old, and this use of robotic influences may be marred by the negative perceptions from the cultural perspective. In particular, some people, owing to their culture such as the Hollywood culture may not be ready to receive services offered through the robots. Defined by age, the consumers may also not be ready to purchase the Honda ASIMO as it is highly technology intensive making its manipulation less significant among the group of consumers. Indeed, the cultural dictation perpetuated by Hollywood influence triggers negative perception of the people on robots. Thus, service by robots would imply a negated perception to the general idea of the impact of Honda ASIMO on the entire business framework.
The Maslow’s hierarchy of needs appears as shown below.
Basically, I think I land at the social stage. At this stage one of the most probable products to make purchases on is a television set. This would be critical in enhancing my progress to realize more consolidated asset base in order to tap a wide range of resources that would help climb up the hierarchy through information sharing pertaining to social-economic aspects.
From the Rokeach Value Survey, the terminal value pertinent to me is ‘social recognition’. Basically, the aspect of being relevant in the society comes alongside taking prudent decisions in establishing the most proactive measures that would spearhead positive influence in the society. In order to achieve this terminal value, I will have to engage two instrumental values namely; ‘ambition’ and ‘responsibility’. Indeed, being ambitions in every aspect of my daily business will influence most of my decisions by confining my ability to productive activities such as business exchanges and subsequently taking up my responsibility both in the domestic setting and business environment. With a stable business and family background, this will eventually yield high level of ‘social recognition’, which is my aspired terminal value.
With regard to the observations on my teams’ lifestyle, there are some specific observations regarding the AIOD’s. In particular, in marketing, AIOD’s refer to the clients Activities, Interests, Opinions and Demographics. Pertinent to my team, the team was involved mainly in producing first-rate hospitality product and services including showing directions and providing social platform for the visitors. Secondly, the team would also be involved in business abstract pro-forma statements which were meant to create a business perception based on predictable features of the progress of the business in the long-run. On the other hand, the two main interests of the group are responsible Products and advice.
Similarly, the brand the Opinion carried by the team is that the innovations in robotic services would stimulate demand for reduced number of personnel. Besides, the team also perceives the new service to have relatively low aggregate cost relative to its human dominated setup and thus, a worthy alternative. Finally, the team’s demographic structure comprises of a male dominated facet. Secondly, the age dominance comprises of people aged between 45-55 years.
Basically, the most important step for CDMP in Netflix is the step of ‘evaluation of alternatives’ essentially, Netflix had employed a number of models which were all subject to failure. Consequently, this stage, ‘evaluation of alternatives’ was critical to the business in the sense that it would help identity, position and segment clients from different fields ranging from, mass media, product raters, sales persons and catalogues among others. These aspects could lead to enhanced sales as the business would be able to influence consumer behaviors by monitoring the behaviors more closely.
Indeed, college students classifying the values would probably rank both ‘happiness’ and ‘social recognition values’ highest. This is the case as both values would be a product of one or more other values. For instance, freedom, equality and mature love among others, would lead to happiness while responsibility, self-respect and wisdom would all lead to social recognition. Finally, the two VALS classification best describing a student in Boston are: comfortable life and family security. Essentially, the main driver of every student at Boston University is the desire to achieve the two values which forms the source of driving force for the students.
