IMC chapter 3 – Flashcards
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information search stage
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the customer reviews pervious memories and experiences looking for acceptable ways to meet a need by buying a product
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evaluation of alternatives stage
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the individual compares various purchasing possibilities
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consumer purchasing process
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Two of the stages are the most directly related to integrated marketing communications: the information search and the evaluation of alternatives
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internal search
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the consumer thinks about the brands she is willing to consider. This may not include brands consumer has experience, because she removes brands associated with negative experience
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external search
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A consumer who remains uncertain about the right brand to purchase
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external information
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can be gathered from variety of sources, including friends, relatives, experts, books, magazines, newspapers, advertisements, in-store displays, sales-people, and the internet.
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consumer decision making process
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problem recognition > information search > evaluation of alternatives > purchase decisions > pos tpurchase evaluation
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ability to search
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Ability consists of a person's educational level combined with the specific knowledge he has about a product and the brands in a given category
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level of motivation
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This influences the degree to which an external search takes place. More motivation means more time spent on external search
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motivation to search
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1. level of involvement 2. need for cognition 3. level of shopping enthusiasm
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Involvement
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reflects the extent to which a stimulus or task is relevant to a consumer's existing needs, wants, or values
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amount of involvement
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based on factors such as the cost of the product and its importance
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need for cognition
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identifies individuals who engage in and enjoy mental activities
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shopping enthusiasm
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Customers who enjoy shopping undertake a more in-depth search for goods and services
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cost versus benefits
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Final factors that influences an information search. Higher perceived benefits increase the tendency to search.
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cost of search
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• The actual cost of the good or service • the subjective costs associated with the search, including time spent and anxiety experienced while making a decision. • The opportunity cost of foregoing other activities to search for information.
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ability, motivation, costs versus benefits
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factors of external search
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attitudes, values, and cognitive mapping
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models of information search process
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attitude
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a mental position taken toward a topic, a person, or an event that influences the holder's feeling, perceptions, learning processes, and subsequent behaviors
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affective, cognitive and conative
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Attitudes consist of three components
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affective component
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consists of the feelings or emotions a person has about the object, topic, or idea.
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cognitive component
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refers to a person's mental image, understanding, and interpretations of the person, object, or issue
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conative component
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contains an individual's intentions, actions, or behavior
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cognitive - affective - conative.
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common sequence of attitude
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affective - conative - cognitive
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alternative process of developing attitude
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conative - cognitive - affective
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The third combination where Purchases that require little thought, that have a low price, or do not demand a great deal of emotional involvement might follow this path.
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values
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strongly held beliefs about a various topics or concepts. Values frame attitudes and lead to the judgements that guide personal action
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cognitive maps
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simulate the knowledge structures and memories embedded in an individual's brain
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processing new information
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new information that stays consistent with current information tends to strengthen an existing linkage.
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Retaining information
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a repeated message may cause an individual to become more likely to remember it, because the message will be processed into long-term memory and placed into previously developed cognitive maps
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New concepts
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Another way a consumer can process information is to link messages to a new concept
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role of marketing messages in cognitive mapping
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1. strengthen current linkage, 2. modify current linkage, 3. create new linkage
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marketing messages
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Regardless of how information is presented, repetition remains important due to the limitations of short-term memory
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ingredients of IMC program
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Cognitive mapping and persuasion techniques designed to change attitudes or tap into strongly held values
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methods of evaluating alternatives
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evoked set , inept set , inert set
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evoked set
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consists of the brands the individual considers in a purchasing situation and might be reviewed during both the information search and evaluation stages
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inept set
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contains the brands that are part of a person's memory that are not considered because they elicit negative feelings (bad experiences).
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inert set
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holds the brands that the consumer is aware of but the individual has neither negative nor positive feeling about them
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evoked set
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Placing a brand name in the consumers mind may be the primary goal of a marketing message.
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multi-attribute approach
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may be the most useful for understanding high-involvement types of purchase
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multi-attribute model
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suggests that a consumer's attitude toward a brand is determined by 1. The brand's performance on product or brand attributes, 2. The importance of each attribute to the consumer
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affect referral
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suggests that consumers choose brands they like the best or the ones with which they have emotional connections
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affect referral model
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this model explains 3 things: 1. using this approach to product evaluation saves mental energy, 2. might have been used previously when making a purchase,3. consumers often develop emotional bonds with brands. In terms of the purchase decision
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trends affecting consumer buying behavior
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age complexity, gender complexity, active (busy lifestyle), diverge lifestyle, communication revolution, experience pursuits and health emphasis
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age complexity
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Technology has changed the way children grow up. Many social observers believe children "grow up" at a much earlier age. At the other end of the spectrum, some adults refuse to grow old
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gender Complexity
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Means that the traditional roles, lifestyles, and interest of men and women have become blurred.
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active lifestyles
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impact consumer behaviors. Time pressures account for increases in sales of convenience items, such as microwave ovens, drive-through dry-cleaning establishments, and one-stop shopping outlets
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diverse lifestyles
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More college kids are moving back home. Divorce and remarriage. Divorcees tend to develop a new outlook on life = second chancers
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communication revolution
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These technologies have changed the way brands and firms are influenced by word - of -communication. The potential for negative word - of - mouth can be devastating to a brand. These same technologies can be used to engage consumers and stimulate positive endorsements
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experience pursuits
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Some people handle the stress of a hectic, busy lifestyle through occasional indulgences or pleasure binges such as expensive dinners out and smaller luxury purchases.
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health emphasis
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Many consumers try to develop a balanced lifestyle with an emphasis on nutrition, exercise, and staying active
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business - to - business Buyer behavior
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People still make the decisions. The buying center consists of the group of individuals making a purchase decision on behalf of a business
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buying center roles
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1. users 2. buyers 3. influencers 4. deciders 5. gatekeepers
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user
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members of the organization who actually use the good or service
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buyers
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individuals given the formal responsibility of making the purchase
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influencers
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people who shape purchasing decisions by providing the information or criteria utilized in evaluating alternatives, such as engineers
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deciders
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individuals who authorize the purchase decisions
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gatekeepers
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individuals who control the flow of information to members of buying centers
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organizational influences and heuristic
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Factors Affecting Business Buying Centers.
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organizational influences
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the factors include the company's goals and its operating environment. Decisions are further constrained by the organization's finances, capital assets, market position, the quality of its human resources, and the country in which the firm operations.
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heuristic
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are decision rules designed to reduce the number of viable options to a smaller, manageable set. One decision rule often employed is satisficing, which means that when an acceptable alternative has been identified it is taken and the search ends
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individual factors
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that affects members of the buying center: 1. Personality 2. Role 3. Motivation 4. Level of power 5. Risk 6. Level of involvement 7. Personal objectives
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Personality
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An extrovert tends to become more involved in the buying process than more introverted individuals. The extrovert spends more time talking while the introvert spends more time listening to sellers.
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Role
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A buying center member who views his role as merely giving approval to decisions made by the boss *the decider) does not actively participate.
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Motivation
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depends on the match of the individual goals to the organization's objectives
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Level of power
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official position in the organization and the impact of the purchase decision on a specific job.
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Risk
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Many vendors are chosen because, buyers believe the choice represents the lowest risk. In marketing to business, reducing risk remains a priority, especially when signing large contracts or when a purchase might affect company profits.
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Level of involvement
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Both consumer and business buying behavior are influenced by levels of cognitive involvement.
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Personal objectives
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Motives, personality types, perceptions of risk, and the other individual factor influence personal objectives.
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straight rebuy, modified rebuy, and new task.
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Three categories of buying activities are
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straight rebuy
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occurs when the firm has previously chosen a vendor and paces a reorder, This routine process involves only one or a few members of the buying center.
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modified rebuy
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the buying team considers and evaluates alternatives
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new task
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the company considers a good or service for the first time or it has been a long time since the last purchase. Further, the product involves is one with which organization members have no or extremely little experience
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reasons for modified rebuy
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1. dissatisfaction with current vendor, 2. a different vendor makes and attractive offer, 3. end of contractual arrangement with current vendor, 4. individuals involved in decision process have no or little experience with the product
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identification of needs
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Business also make purchases because of needs ranging from raw materials to professional services.
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derived demand
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is based on, linked to, or generated by the production and sale of some other good or service
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establishment of specification
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In a new task purchase, the most complete specification are spelled out
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Vendor Evaluation
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two levels: 1. an initial screening of proposals, narrow the field of vendors down to three to five competitors. 2: level of evaluation occurs as the firm undertakes a vendor audit.
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An audit
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services the purpose of evaluating each potential supplier's ability to meet demand, provide the level of quality needed, and deliver the product time
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vendor selection
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Once company officials have studied all of the vendors and the bids have been considered, the final choice can be made.
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selection criteria for vendors
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quality, delivery, performance history, warranties, facilities and capacity, geographic location, technical capability and per-dollar value.
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negotiation terms
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a formality because the conditions have already been worked out
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Post purchase evaluation
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this phase represents a marketing opportunity. Vendors that provide high-quality products, make follow-up calls, and offer additional services often move into a straight rebuy situation
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Dual channel marketing
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where firms sell virtually the same goods or services to both consumers and business
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Spin-off sales
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Another type of dual channel marketing: occurs when individuals who buy a particular brand at work have positive experience and, as a result, purchase the same brand for personal use. This situation often takes place with computer and computer software
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in dual channel marketing
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a primary decision will be made about how to represent the product in each channel.
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Marketing Decisions
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The firm can either emphasize similarities between the two markets or focus on differences. In most cases, business customers and consumers seek the same basic benefits from products. In these situations, a single approach for both market will be used
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tactics in marketing decisions
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• Integrating communications messages • Selling the same brand in both markets • Scanning both markets for dual marketing opportunities
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dual channel marketing strategies
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1. uses different communication messages 2. create different brands 3. uses multiple or different channels
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integrating consumer markets
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has an advantage: the potential to create the synergies that arise from increased brand identity and equity
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international implications:
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selling to consumers and businesses requires the marketing team to understand cultural differences related to products, messages, and selling techniques
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cultural assimilator
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a valuable member of the marketing team in international project. Successful global grands are built over tie.