Generally, 20% of marketing messages produce 80% of campaigns exults. Understanding this, marketers will be able to eliminate costs associated with less productive improves marketing efficiency & returns. Product mix: 80% of company’s revenue is derived from 20% of Its products or services. Marketers =>can emphasize the value of core products in a better way to target customers & expand business by targeting new customer groups. Profits: most useful applications of 80/20 rule in marketing relaters to profits. A company can earn 80% of its profits from the top 20% of Its customer base.
It helps company to focus on maintaining legislations with these top increases loyalty from customers will offer best value to companies. QUESTION 2: List and briefly characterize four types of relationships a person might have with a product. Be specific. Self- Concept attachment – The product helps to establish the user’s Identity Nostalgic attachment- The product serves as link with a past ;self Interdependence; The product Is a part of users daily routine Love- The product elicits emotional bonds of warmth, passion of other strong emotion.
CHAPTER 2 QUESTION 1: List the three stages of the perception process and give a brief function of each. They are: Selection, Organization and Interpretation Selection: 1st stage of perception process and in this stage, we select stimuli to which we attended. We select the stimuli through our senses: sight, sound, smell, taste, and touch. Organization: 2nd stage in the perception process. We organize and prioritize the Information and data that we have become aware of and so that certain information stands out over other information. Interpretation: last stage in the perception process.
In this stage, we manipulate the data to give meaning to the information that has been selected and sorted. All we have Is data which makes no sense and has no meaning. We search our memory and assign meaning to the databases on its similarity to our previous experiences. QUESTION 2: As a personal selection factor, adaptation is seen as the degree to which consumers continue to notice a stimulus over time. Five factors can lead to adaptation. List and briefly describe the connection with adaptation. They are: intensity, duration, discrimination, exposure and relevance. Intensity -?Less-intense stimuli (e. . , soft sounds or dim lord) habituate because they have less sensory impact. Duration -? Stimuli that FIFO long attention span. Discrimination-? Simple stimuli habituate because they do not require attention to detail. Exposure -? frequently encountered stimuli habituate as the rate of exposure increases. Relevance-? Stimuli that are irrelevant or unimportant habituate because they fail to attract attention. Chapter 3 1) Give a brief explanation of cognitive learning. Cognitive learning is theory of psychology that attempts to explain human behavior by understanding the thought processes.
In contrast to behavioral theories of learning, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. 2) The process of stimulus generalization is often central to branding and packaging decisions that attempt to capitalize on consumers’ positive associations with an existing brand or company name. In this context, list and briefly discuss the four strategies based on stimulus generalization presented in the text.
Family branding variety of products capitalizes on the reputation of a company name. Positive corporate images help to sell the company’s different product lines. -Product line extortionately products are added to an established brand. – Licensing Well-known brand names are “rented” by others. This strategy is increasing in popularity as marketers try to link their products and services with well-established figures. -Look-alike packaging0Distinctive packaging designs create strong associations with a particular brand. Imitating the look of an existing successful brand is common in today’s rowed marketplace.
Chapter 4 1) Explain the concept of involvement and its relationship to motivation. Involvement is ‘a person’s perceived relevance of the object based on their inherent needs, values, and interests’. There are different types of involvement: 1) product involvement, 2) message-response involvement and 3) purchase situation involvement. – Product involvement refers to a consumer’s level of interest in a particular product. -Message-response involvement refers to influence of how motivated we are to pay attention to what media tell us. Purchase situation involvement refers to differences in motivation during the process of interacting with a store or Web site. As consumer’s involvement with a product increase, they devote more attention to ads related to the product; they focus more attention on the product-related information in the ads. (When we say that she is highly involved in certain product, it means she is motivated to pay attention to information about product. ) 2) What is the relationship between motivations, need, drive goal, and wants? To understand motivation is to understand why consumers do what they do.
Generally, motivation refers to the process that lead people to behave as they do. It occurs when a need is aroused customer wants to satisfy it. Once people have a need, it creates a state of tension that drives the consumer to attempt to reduce it. Reduce is called drive. When there is need of food, people seek certain product like hamburger which is their wants. Want is created by combination of personal and cultural factors. So marketers try to create a product to provide the desired benefits which will help consumer to attain goal. Chapter 5 1) Ben is a little nervous about how he will be perceived when he arrives for a Job interview.
He got his hair cut and wore his most expensive business suit so he would appear more like the person the firm would like to hire at the executive level. He knows that he “cleans up well” and hopes that will compensate for his rather weak resume. In terms of symbolic interactions, explain what Ben is doing. What Ben is doing is self-fulfilling prophecy. It occurs when we act the way we assume others expect us to act. We tend to pattern our behavior and the perceived expectations of others. The process of imagining other’s reactions called looking-glass self.
The sire to define ourselves operates as a sort of psychological sonar. 2) Explain the concepts of the ideal and actual self. How do we bridge the gaps between the two selves? Ideal self is a person’s conception of how he would like to be, whereas the actual self refers to our more realistic appraisal of the qualities we do and don’t have. The marketers can use “fantasy appeals” to people who have large gap to bridge the two selves. Also, Mortal makeover” can connect the gaps by offering websites for the consumers to experiment with different looks before they actually take the plunge in the real world.
Chapter 6 1) Describe the concepts of brand personality and brand equity and explain how they are related. Brand personality is a set of human characteristics associated with a brand. Personality is how the brand behaves Gender, age, socio-economic class, cryptographic, emotional characteristics Ex: Marlboro – masculine while Virginia Slims is feminine Brand equity is the power of a brand lies in the minds of consumers and what they have experienced and learned about the brand over time. It can be thought of as the “add value” endowed to a product in the thoughts, words, and actions of consumer.
Use brand personality to gain an in-depth understanding of consumer perceptions of and attitudes towards the brand equity. Brand’s personality are part of brand equity, which refers to the extent to which a consumer hold’s strong, favorable, and unique associations with a brand in memory – and the extent to which she or he is willing to pay more for the branded version of a product than for a no branded (genetic) version. 2) There are eight categories listed in the VALES system. List and briefly describe each of the categories. In which of the eight categories of the VALES system would a rich, 0-year-old woman who is open to new ideas belong?
VALES describes American market segments in terms of demographic and lifestyle factors and classifies consumers in 8 basic lifestyle groups: Innovators, thinkers, believers, achievers, striver, experiences, makers, and struggles. Innovators: the top group, are successful consumers with many resources. Satisfied, reflective, and comfortable. Achievers: are career oriented and prefer predictability to risk or self-discovery. Experiences: are impulsive, young, and enjoy offbeat or risky experiences. Believers: have strong principles and favor proven brands.