1. MT 219 Marketing Unit Three Global Marketing and Consumer Behavior Note: This seminar will be recorded.

2. Review of Unit Two How did it go? Questions or concerns? Suggestions for Unit 3: Assignment templates built into introduction & Remember that the unit 4 review will also use concepts from unit 3 Questions?

3. In this unit we will cover Global Marketing -International environmental forces -Trade Alliances, markets and agreements Consumer Behavior- -Involvement levels and their impact on problem solving -The consumer buying decision process -Situational, psychological and social influences

4. International Marketing Defined in text as: “Developing and performing marketing activities across national boundaries.” Increasingly, international marketing is a way firms can ensure marketing success when domestic markets have been saturated.

5. International Environmental Forces All aspects of the marketing mix must often be changed to be successful in international markets. -Sociocultural- extremely important – products that are socially or culturally inappropriate are unlikely to be successful. -Economic- Marketers must keep price in line with competition and, consumer expectations and ability to buy. -Political – Marketers must ensure they do not undertake controversial activities that will result in political fallout. This include relations with labor unions -Legal- Marketers must ensure they conform to the requirements of the countries they do business in. -Competitive- The company needs to undertake competitive activities that are considered suitable in international markets. Laws vary. -Technological- Marketers should not assume their technology is compatible with people’s or country’s needs.

6. Trade Alliances and Agreements There are several main groups, but many countries also have bilateral trade agreements not in the text. -NAFTA- Trade agreement between Mexico, Canada and the US, -European Union- Higher form of agreement that joins member states in trying to develop a common economic partnership. -APEC- Asian alliance that seeks to cooperate on common trade issues. -MERCOSUR- South American- The goal is a common market like Europe. Currently an alliance. -GATT- Group of countries that agree to certain rules and agree to a process for settling trade disputes so they do not spiral out of control. The WTO was created in Uruguay Round of GATT to promote free trade.

7. Consumer Behavior The buying behavior of people who purchase products for personal or household use and not for business purposes We study consumer behavior in order to -understand the major influences on what, where, when and how consumers buy -be in a better position to develop marketing strategies

8. High Involvement vs. low involvement Intensity Importance Risk assessment Enduring vs. Situational involvement

9. Types of buying behavior Routinized response behavior frequently purchased, familiar, lost cost items Limited Problem Solving behavior unfamiliar brand in familiar category Extended Problem Solving unfamiliar, expensive or infrequently purchased items

10. Consumer Decision Process Problem Recognition Information Search Internal External Evaluation of Alternatives consideration set evaluative criteria Purchase Post Purchase Evaluation Cognitive Dissonance

11. Situational Influences Physical surroundings : location, store atmosphere, aromas, sound, lighting, weather and other factors. Social surroundings : others who are present when the purchase is made. Friends, relatives, salespeople and other customers can all affect behavior Time perspective : the amount of time required to become knowledgeable about a product, search for it, and purchase it, are also factors. Reason for purchase : People behave differently depending on the reason for the purchase Buyers momentary mood and condition Plus – concern for the opinion of others

12. Psychological influences - Perception Perception is “he process of selecting, organizing, and interpreting information in a way that is meaningful for us. Because the average consumer is bombarded with constant information everyday, we are selective in what we choose to be exposed to”. Human beings also interpret information based on existing knowledge. Therefore, we selectively distort new data in such a way as to make it consistent with existing data. -Selective Exposure -Selective Distortion -Selective Retention

13. Motives and Maslow’s Hierarchy Self actualization Esteem Social Safety Physiological

14. Learning Change in behavior resulting from experience and information Begins with -Need -Cue- can be turned on by any sense -Response -Reinforcement -Generalization

15. Attitudes Have Direction (degree of “goodness” or “badness”) and Intensity Hard to Change, but do-able A belief linked to an emotion

16. Personality and Self-Concept Results in consistent patterns of behavior Includes purchase behavior Many times these may be subconscious

17. Lifestyle Activities (golf, bowling) Interests (politics) Opinions (being “green”)

18. Social Influences Roles Socialization and Family Reference Groups membership aspiration dissasociative Opinion Leaders

19. Social Classes Open groups of individuals with similar social rank -Education, Occupation, and Income -Upper: prize quality merchandise, prestigious brands, and products that reflect good taste. Money is invested in art as well as travel, books, tennis, golf, and swimming clubs -Middle: like fashionable items, spend for worthwhile experiences such as college educations and ski trips, tour packages, and attractive home furnishings. -Working: have a strong sense of value, shop for bargains as well as vehicles and equipment related to recreation and camping as well as automotive equipment -Lower: purchase mostly products required for survival, necessities

20. Culture Single broadest determinant of consumer behavior Accumulation of values, knowledge, beliefs, customs, objects, and concepts that characterizes a society

21. Subcultures Groups of individuals whose values and behavior patterns are similar Can be based on a number of factors, including -Geography -Demographic characteristics -Common experiences and history

22. Any Questions? Thank you for attending! See you next week! I will post the link to the recording of tonight’s seminar in the course Announcements.