MarketingValentine day- Giri choco obligation chocolate White Day- the guys shuld give something only to your

romantic partner- 3 times more. This year 80% of the sales

Usually about craeting need, then about creating market

Marketing Environment MM marketing mix- 4P(Product, Price, Placement,...) External forsces impact our mm o Creates opportunities and threats o Throuh earthquake- improve e-mail sales. How do the changes help us or threaten us? Environmental scanning Crisis Management: o Continual monitoring- what has changed+ how it will give an advantage o MIS-marketing information system Changes and to predict future changes The produces change the prices? Who are the old/new producers? Wheather chagnes? What are the social issuse- fair trade chocolate o 6 Key environments Social environment(client, what are societies need and wants important) o Groups based on wealth o Diversity of culture, values Soup versus salat- intergared or not Demographics- age, gender,education,religion Values and conserns(reserveeritus(nt Hooters) Green) Political o Laws- legal and regulatory rules Antitrust(competation-ads), consumerprotection(inf, safety), deregulation Federal level- EU State level-Estonia local Taxes Economic o Business life cycle- adjust the MM

Political or gov.envolvment in economics Money rate low, interest rate- easy to lend money Consumer buying power- income o Gross income- before taxes o Disposable-after tax o Discretionary-after necessities, food,bills. Play money Consumer Confidence Index o Attitude toward future(sevings vs credit) Competitive forces o Direct(pepsi-cola) vs inderect(utility) o Reaction(what does the nike when the addidas has an idea?) How long time do you have advantage Structure o Monopoly(the gov.gets in) o Oliopoly(few competetorsworldplayers, airlines)- are they cooperating o Monopolistic-many marketer Competitive advantage-brand Technology-how it helps Production-better quality? Communication- who to order,who to do ads? 2 ways-facebook, twitter o Logistics Distribution-connect the different parts of the protection Inventory Nature Distributionproblems Productions issue Response: o Reactive-see and make a change o Proactive-Predict, make the change

*White chocolate was produced because of lack of *1973 seatbelts- rules in america *Wet counties/dry counties *http://www.guardian.co.uk/commentisfree/2012/feb/13/sugar-regulate-fructose-sucrose *http://www.guardian.co.uk/environment/2012/feb/10/mega-pig-farm-human-rights *10 after 10 Ec. food res. -

Economist,business week,cnn

Monday 20 February Class Topic - Consumer Behavior Please look at the sites linked about and be prepared to discuss the following questions:

1. What is Consumer Buying Behavior? 2. What are the 6 Stages of the Consumer Buying Process? HOW, WHAT,WHY Triggers- psychology The process/the customer----the marketing
1. problem (need) recognition,->create a need 2. information search, internal-memory external: o f and f(friends and family)- w.o.m-word of mouth- what you told me already trust o experts- website(is trustworthy!!)
When the marketing looks they want to consentrate on youf family that they know Evoked set-basket of information

3. alternative evaluation

criteria to evaluate- IT DEPENDS For example Volvo und Madzda. Time,price,experience 4. purchase decision, 5. Purchase THE MOST IMPORTANT AVAILABILITY! 6. post-purchase evaluating(based on the criteria) 7. It does not matter what they buy!!They thought only the houses, cars. You still go through it!

3. What are the 4 types of Consumer Buying Behavior? Here also depends!
Level of involvment(high/low) What is the risk!! How you balance them!

Financial
Clothes for the elderly

Personalpersonal satisfaction, does it bring happiness

Least control! Looking at demographics- age, sex etc. We can think which age group. You can also model perfect customer Paintpall-young, men, highly educated, collage(get money from parents) Different people purchase for different reasons(family, charact)

Psychological
Maslow- PSY-food(potatoes), clothes,SAFety/STAbility, SOCial(belonging), esteem, self-actiualisation(Usarmy, be all you can be). If one of the lowest things are satisfied, I am going to overlive, I will move up. IN ASIA you have social more important than psy!In Japan- jewelery part of the group US individual!

Preception-.
What does the other think(voice recorder) Coce light/diet Coce zero-male, no diet

African wine!! Is amazing! 80ties! Wine exporting, LAV is a a bad place! MAC preception

Attitudes
Toyota-lexus Nissan Infiniti Can you change the attitude or you can change your brand how the Toyota makes Lexus to compete with Bmw Mc donalsi vastane suhtumine euroopas Iraagi sja alguses

Lifestyle
Values and prinziples VALS survey- http://www.strategicbusinessinsights.com/vals/ustypes.shtml !!! how can we get in peoples minds!!

1. Social!!! Creating neg emotsions!- how d. o my shoes look like. Society to adopt. Clothes for the teenagers Impulse/ Minor New Purchase NON-NEED When a consumer stands at the checkout and notices lip moisturizer, magazines. In most instances this happens with low-priced items.
these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group).

WE WANT THIS!!! Routine/ Minor Re-Purchase NON-THINKING these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty).BRAND LOYALTY Even impulss gonna go into routine! Every-day dinner CASUAL Limited decision making/ Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.. For example, if a young professional is preparing for an interview and wants to get her hair colored the week before, she might solicit advice from friends to find out which salon does good hair coloring work.Friends dinner Extensive desicion making/ Major Re-Purchase THE FIRST! RESEARCHthese purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. Purchases for high priced electronics. Consumers spend substantial amounts of time researching a high number of potential options before they buy. Anniversary dinner

When do you have pizza highlight-Monday!

4. What is meant by 'level of involvement' in the purchase decision? Motivation to do research and spend time to find the best product for them.
Three characteristics of high-involvement purchase : 1. is expensive, 2. can have serious personal consequences, or 3. could reflect on ones social image.

5. What are the other factors that affect the purchase decision?
Culture, social group, family infuence, Personality, motivation, roles, lifestyle, attitude, knowledge, perceptual filter.

6. What is Consumer Perception?

Perception is how we see ourselves and the world we live in.

Consumers can pay attention to messages that are consistent with their own attitudes and beliefs Consumers can ignore messages that are inconsistent.

Perception has several steps.

Exposure sensing a stimuli (e.g. seeing an ad) Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad) Awareness assigning meaning to a stimuli (e.g., humorous ad for particular product) Retention adding the meaning to ones internal makeup (i.e., product has fun ads)

Selective comprehension

Involves interpreting information so that it is consistent with a person's attitudes and beliefs.

Selective retention

Consumers do not remember all the information they see, read, or hear.

Subliminal perception

Consumers see or hear messages without being aware of them. This is a hotly debated issue with more popular appeal than scientific support. Research suggests that such messages have limited effects on behavior

7. What is the 'Family Life Cycle' and how does it affect the purchase decision? Reference Group? Targeting and segmentation!
Individuals and families tend to go through a "life cycle:" The simple life cycle goes from Young single- couple-family to old single.

The singles like more: Low cost furniture and household items and time-saving

goods and services Older people: Earn more money, but have more expences.

In families: Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. The role of the decision maker is separate from that of the purchaser.

8. What are the different types of Reference Groups?

The aspirational reference group refers to those others against whom one would like to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be. Associative reference groups include people who more realistically represent the individuals current equals or near-equalse.g., coworkers, neighbors, or members of churches, clubs, and organizations. Finally, the dissociative reference group includes people that the individual would not like to be like.

the informational group(influence is based almost entirely on members knowledge normative (members influence what is perceived to be "right," "proper," "responsible," ) for example the company has a uniform or identification, the friends with whom I would like to be similar

Ksimus: Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. Kas hetke olukorrast vetuna vi pikas perspektiivis- esialgu on see uus otsus osta teatud vitamiini, kuid ilmselt ostavad nad veel...

KHAN ACADEMY!!!