Chapter Three and Four

Decentralized Marketing System
Brand manager & Category manager
Brand Manager
responsible for total management of the brand
Category Manager
authority over brand manager
Pros of Decentralized Marketing System
concentrated managerial attention, rapid problem/opportunity response, increased flexibility
Cons of Decentralized Marketing System
Ineffective decision making, internal conflicts, misallocation of funds, lack of authority
Centralized Marketing System
advertising manager=marketing communications manager, responsible for all promotion activities except for sale
Pros of Centralized Marketing System
better communication, fewer personnel, staff continuity, more top management
Cons of Centralized Marketing System
hard to understand marketing strategy, longer response time, impractical for multiple brands/products/divisions
Environmental Factors for IMC
Culture, Subculture, Social Class, Reference Group, Situational Determinants
Cognitive Learning Theory
Goal>Purposive>behavior>Insight>Goal Achievement
Operant Conditioning
Individual must actively operate or act on some aspect for learning, reinforcement
Classical Conditioning
Association process with an already existing relationship between a stimulus and response
Cognitive Dissonance
state of psychological tension or post purchase doubt a consumer may experience after making a difficult purchase decision
Psychological Consequences
Abstract outcomes of product or service usage that are intangible, subjective, and personal
Functional Consequences
Concrete outcomes of product or service usage that are tangible and directly experienced by consumers
Selective Retention
Assisted by mnemonics
symbols, rhymes, associations, images that assist in learning and memory process
Selective Comprehension
Perception on process whereby consumers interpret information based on their own attitudes, beliefs, motives, experiences
Selective Attention
consumer chooses to focus attention on certain stimuli whole excluding others
Selective Exposure
Consumers choose whether or not to make themselves available to information
Learned predispositions to respond to an object, individuals overall feeling toward or evaluation of an object. Represents positive and negative feelings and behavioral tendencies
Process by which an individual receives, selects, organizes, interprets information to create a meaningful picture of the world
maslow’s hierarchy of needs, psychoanalytic theory
Maslow’s Hierarchy of Needs
Self actualization needs, esteem needs, social needs, safety needs, physiological. Lower must be satisfied first
Consumer Behavior
Process and activities people engage in when searching for, selecting, using, evaluating, and disposing of products/services
Incentive Based
Based on how well the agency meets performance goals, value based

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