Marketing, Week 2 Notes
Marketing, Week 2 Notes
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Page 1 of 2
Danny King, 2013
Marketing, Week 2 Notes Customer Decision Making and the Role of the Brand Shopper Marketing
Need Recognition: The first stage is to get a prospective customer to enter the market. If there isn’t a natural need to buy the product, the need must be created. After this point people will pay attention to products related to the category. Marketers should know what these trigger events are (that make people realise they have a need) and/or know to create new trigger events. E.g. ‘back to school’ signs may trigger people to buy stationary/school uniforms, etc. Email reminders like dentist prompts are another example. Holding events (e.g. fashion catwalks) are another. Information Search: Once a shopper has a need they enter this stage. They gather information about different products and end up with an information set/evoked set of products (a subset of the total set of existing products) for them to consider – the brands they remember without any help.
Choice: When evaluating the evoked set, too much choice can be a burden, so help people by having clear categorisation of products (if you have more than one) and by clear positioning. Purchase: Inventory control, operations, etc.: the product must be in stock to be purchased. A fair price in the customers’ eyes is important and the perceived variety on the shelf too. Customers don’t evaluate prices absolutely, but relatively to other products in the same category – context matters. There are two kinds of reference prices: external (e.g. original price next to discounted price -> this is
Danny King [email protected] www.dannyking.eu
Marketing, Week 2 Notes
0
Page 2 of 2
Danny King, 2013
a good price. E.g. rules of thumb: two months’ salary for an engagement ring) and internal (recorded in their memory – e.g. a can of soda should cost about a dollar.). Post-Purchase: What matters here is whether the customer was satisfied and whether or not they will tell other people about it. Perceived performance is in fact more important than actual performance – as long as they are happy with the experience, they will consider repurchasing or telling others. If the product meets expectations this may not happen – it is better if the product exceeds expectations.
Due to social media and the ease of communicating positive or negative experience, more than ever marketers need to be concerned with customer satisfaction. Positive or negative experiences get heard about much more easily now. People share things on social media or with friends that make them look good, that are caused by some trigger (e.g. remembering something similar during a conversation), that are emotional or evocative (e.g. inspirational or exciting), when other people are talking about it or similar things, when we feel we can provide interesting information to those around us through it or when there is a story associated with it.
Danny King [email protected] www.dannyking.eu
0
Page 1 of 2
Danny King, 2013
Marketing, Week 2 Notes Customer Decision Making and the Role of the Brand Shopper Marketing
Need Recognition: The first stage is to get a prospective customer to enter the market. If there isn’t a natural need to buy the product, the need must be created. After this point people will pay attention to products related to the category. Marketers should know what these trigger events are (that make people realise they have a need) and/or know to create new trigger events. E.g. ‘back to school’ signs may trigger people to buy stationary/school uniforms, etc. Email reminders like dentist prompts are another example. Holding events (e.g. fashion catwalks) are another. Information Search: Once a shopper has a need they enter this stage. They gather information about different products and end up with an information set/evoked set of products (a subset of the total set of existing products) for them to consider – the brands they remember without any help.
Choice: When evaluating the evoked set, too much choice can be a burden, so help people by having clear categorisation of products (if you have more than one) and by clear positioning. Purchase: Inventory control, operations, etc.: the product must be in stock to be purchased. A fair price in the customers’ eyes is important and the perceived variety on the shelf too. Customers don’t evaluate prices absolutely, but relatively to other products in the same category – context matters. There are two kinds of reference prices: external (e.g. original price next to discounted price -> this is
Danny King [email protected] www.dannyking.eu
Marketing, Week 2 Notes
0
Page 2 of 2
Danny King, 2013
a good price. E.g. rules of thumb: two months’ salary for an engagement ring) and internal (recorded in their memory – e.g. a can of soda should cost about a dollar.). Post-Purchase: What matters here is whether the customer was satisfied and whether or not they will tell other people about it. Perceived performance is in fact more important than actual performance – as long as they are happy with the experience, they will consider repurchasing or telling others. If the product meets expectations this may not happen – it is better if the product exceeds expectations.
Due to social media and the ease of communicating positive or negative experience, more than ever marketers need to be concerned with customer satisfaction. Positive or negative experiences get heard about much more easily now. People share things on social media or with friends that make them look good, that are caused by some trigger (e.g. remembering something similar during a conversation), that are emotional or evocative (e.g. inspirational or exciting), when other people are talking about it or similar things, when we feel we can provide interesting information to those around us through it or when there is a story associated with it.
Danny King [email protected] www.dannyking.eu
