The Marketing Mix and Consumer Behaviour Week 4 - 2

The Marketing Mix and Consumer Behaviour

Week 4 - 2

The Product Onion

• The Actual Product• The Extended Product• The Augmented Price

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.

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

Creative Aspects

• Humour• Size• Position• Association like the message like the product• Film – Movie style – life style• Music

The Marketing Mix

• Promotion

• D• R• I• P

The Marketing Mix• Promotion

• A• I• D• A• (Strong 1925)

The Marketing Mix

• Promotion

• Hierarchy of Effects

• (Lavidge & Strong 1961)

The Marketing Mix

• Promotion

• Information Processing

• (McGuire 1978)

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