Consumer Markets Grabowski Jasmine Grohs Stefan Unger Marion 1 Marketing under didactical approach Winterterm 2011/12

Learning objectives Which factors may influence potential customers when choosing a product? Why do companies need to know something about their target groups and about their wants and needs? 2

You consider buying a new mobile Which factors may have an impact on your buying decision? 3

Didactical Method  Info Market 4

Instruction – Info Market: Infomarket Infomarkt Infomarket 1. Stage Students will be divided into 4 groups of 4-5 people, each getting specific information about consumer markets

Instruction – Info Market: Infomarket Infomarkt Infomarket 2. Stage Each Group reads their information papers and answers questions. After that each group create their own info place.

Instruction – Info Market: Infomarket Infomarkt Infomarket 3. Stage Now the presentation groups are built. In every group must be at least one member of every preparation group to present their ideas.

Instruction – Info Market: Infomarket 4. Stage Every 5 minutes the group has to change to another info market

9 Agenda 1.Cultural Factors 2.Psychological Factors 3.Social Factors 4.Personal Factors

10 Cultural Factors culture subculture Social class the set of basic values, perceptions, wants and behaviours learned by a member of society from family and other important institutions. a group of people with shared value systems based on common life experiences and situations. relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviours

11 Cultural Factors culture the set of basic values, perceptions, wants and behaviours learned by a member of society from family and other important institutions. the most basic cause of a person’s wants and behaviour every group or society has a culture, vary from country to country cultural influences on buying behaviour may vary greatly from country to country

12 Cultural Factors subculture Social class a group of people with shared value systems based on common life experiences and situations. social classes are society’s relatively permanent and ordered divisions where members share similar values, interests, and behaviours relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviours include nationalities, religions, racial groups, and geographic regions. many subcultures make up important market segments

13 Psychological Factors motivationperception learning beliefs and attitudes A need that is sufficiently pressing to direct the person to seek satisfaction of the need. The process by which people select, organize and interpret information in an individual way to form a meaningful picture of the world. Changes in an individual´s behavior arising from experience. A descriptive thought that a person has about something (=belief). A person´s relatively consistent evaluations, feelings, and tendencies toward an object or idea (= attitude).

14 Psychological Factors motivation Most popular theories of human motivation from Sigmund Freud and Abraham Maslow Motivation research: to uncover consumers´ hidden, subconscious motivations  to develop better marketing strategies! perception People form different perceptions of same stimulus because of selective attention... selective distortion... selective retention  Important for marketers to attract attention of consumers with their messages

15 Psychological Factors learning Interplay of drives, stimuli, cues, responses and reinforcement.  Marketers can build up demand for a product by associating it with strong drives, using motivating cues and providing positive reinforcement. beliefs and attitudes are acquired through doing and learning. Beliefs are based on real knowledge, opinion or faith. Attitudes put people into a frame of mind of liking or disliking things.  Important for marketers to correct wrong beliefs of a product or brand.  Very difficult to change attitudes! A company should always try to fit its products in existing attitudes.

Social Class There are three clusters for the marketer: 16 Reference Groups Family Roles and Status

Reference Group (1)  Influence? 17 Membership groups Primary Regular interaction but informal Secondary Less regular interaction but more formal Aspiritional groups are those a person hopes to join dissociative groups those whose values or behavior an individual rejects. directindirect

Reference Group (2) Reference groups infect members in the following forms:  They expose new behaviors and lifestyles  They influence their attitudes and self-concept  Create a pressure to conformity. 18

Social Class in the US 19 William Thompson & Joseph Hickey 2005 ClassTypical charateristics Upper (1%)Top-level executives, celebrities, income of $ Upper middle (15%) Higly-educated (often with graduate degress) professionals & managers with houshold incomes above $ Lower middle (32%) Semi-professionals and craftsman with some autonomy, household incomes range between $ to $ Typically, some college education. Working (32%) Clerical, pink- and blue collar workers with often low job security, household income range between $ to $ High school education. Lower (20%)Poorly-paid positions or rely on goverment transfer. Some high school education.

Family  The family of orientation:  Consists of parents and siblings.  From parents a person acquires an orientation towards religion, politics, and economics and a sense of personal ambition, self-worth and love.  The family of procreation:  Its one’s spouse and children –  it has the most direct influence on everyday buying behavior 20

Roles and Status  A person participates in many groups – family, clubs, organizations.  In each group a person has a different role and status. A role consists of the activities a person is expected to perform. Each role carries a status. Buying behavior reflects role and status 21 Role Status Activities i‘m aspected to perform Buying behavior products that reflect and communicate my role and my actual or desired status in society

Personal Factors 22  Buying decisions may be influenced by Age & Life- Cycle-Stage Occupation Economic Situation Lifestyle Personality & Self-Concept

23 Personal Factors Personality & Self Concept Age & Life-Cylce-Stage Each person’s distinct personality influences his or her buying behaviour People’s possessions contribute to and reflect their identities; that is, “we are what we have”. People chance the goods and services they buy over their lifetimes Traditional family life-cycle stages include young singles and married couples with children

24 Personal Factors Occupation a person’s occupation affects the goods and services bought (e.g. working clothes for blue-collar workers and managers) Lifestyle is a person’s pattern of living expressed in his or her psychographics. It involves measuring consumers’ major AIO dimensions (activities, interests, opinions) Economic situation a person’s economic situation will affect product choice