1. The Marketing Mix and Consumer Behaviour
Week 4 - 3

2. Basic Framework Motivation Perception Search Evaluation Choice
Learning

3. The Product Onion The Actual Product The Extended Product
The Augmented Price

4. The Marketing Mix Price
All customers have some idea – a perception - about how much a product will cost them to buy
It may be ridiculous low in which case the promotion needs to clearly demonstrate the value
It may be perceived as being higher than it actually is / needs to be often when people do not understand the contents of the product – mystery in some technology
Keep the price to give maximum value
Increase the price to maximise value and provide investment in the future.

5. The Marketing Mix
Promotion D R I P

6. The Marketing Mix Place Chapter 17
After the product selection has taken place the decision of where / how to buy will be made often part of the search
Consumers will have learned behaviour always go to a shop which has good service and knowledgeable staff
Many people will have since only 2000 consider the internet as a serious credible option and TRUSTED eg Amazon started in books , cds easy to post have now moved onto other products – higher value often customers expect lower prices but also value the speed of service – delivery
RETAIL DISTRIBUTION IS AN INTANGIBLE PRODUCT

7. Creative Aspects Humour Size Position
Association like the message like the product
Film – Movie style – life style
Music

8. The Marketing Mix
Promotion A I D
(Strong 1925)

9. The Marketing Mix Promotion Hierarchy of Effects
(Lavidge & Strong 1961)

10. The Marketing Mix
Promotion
Information Processing
(McGuire 1978)

11. The Marketing Mix Promotion - Sales Promotion REASON TO BUY
Operant Conditioning – Rewards Competition
JND – extra product – reduced price - Perception
Exponentiation – free sampling
Loyalty schemes – reward loyalty

12. Basic Framework Motivation Perception Search Evaluation Choice
Learning