MARKETING MANAGEMENT REVIEWER - Financial Objectives

- Target Markets

INTRODUCTION TO MARKETING PLAN Financial Projection include a sales forecast, an expense forecast, and a break-even
analysis
(Amigable and Arales)
Implementation Controls outlines the controls for monitoring and adjusting
implementation of the plan.

MARKETING PLAN is a written document that summarizes what the marketer has
learned about the marketplace and indicates how the firm plans to reach its
marketing objectives.
ANALYZING CONSUMER MARKETS

MARKETING PLAN SECTIONS (Arenas and Barbosa)

- Executive Summary
- Table of Contents
- Situation Analysis Consumer Behavior is the study of how individuals, groups, and organizations
- Marketing Strategy select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their
- Financial Projections needs and wants
- Implementation Controls

IMPORTANT INFLUENCES ON CONSUMER BUYING BEHAVIOR

Executive Summary and Table of Contents The marketing plan should open with a (CULTURAL FACTORS)
table of contents and brief summary for senior management of the main goals and
recommendations. 1. Culture
2. Subculture
Situation Analysis presents relevant background data on sales, costs, the market, 3. Social Class
competitors, and the various forces in the macro environment.
- Market Summary
- SWOT Analysis
- Competition Social Factors
- Product Offering Reference Groups group that have a direct (face-to-face) or indirect influence on
- Key to Success
their attitude or behavior
- Critical Issues
Family is the most important consumer buying organization in society, and family
Marketing Strategy marketing manager defines the mission, marketing and financial
members constitute the most influential primary reference group
objectives, and needs the market offering is intended to satisfy as well as its
competitive positioning. Roles and Status we each participate in many groups-family, clubs, organizations
- Mission
- Marketing Objectives
 Some needs are biogenic; they arise from physiological states of tension such
as hunger, thirst, or discomfort.

PERSONAL FACTORS
Three of the best-known theories of human motivation
Age and Stage in the life cycle our taste in food, clothes, furniture, and recreation
that is often to our age 1. Sigmund Freud
2. Abraham Maslow
Occupation an d Economic Circumstances occupation also influences consumption 3. Frederick Herzberg
patterns

Lifestyle and Values people from the same subculture, social class, and occupation
may lead quite different lifestyles FREUD’S THEORY

Personality and Self-Concept each person has personality characteristics that Assumed the psychological forces shaping people’s behavior are largely
influence his or her buying behavior unconscious, and that a person cannot fully understand his or her own motivations.
MASLOW’S THEORY

Human needs are arranged in a hierarchy from most to least pressing—

Stanford’s Jennifer Aaker researched brand personalities such as; physiological needs, safety needs, social needs, esteem needs, and self-actualization
need.
1. Sincerity
HERZBERG’S THEORY
2. Excitement
Frederick Herzberg developed a two-factor theory that distinguishes dissatisfies
3. Competence
(factors that cause dissatisfaction) from satisfiers (factors that cause satisfaction.
4. Sophistication

5. Ruggedness
Perception perceptions are more important than reality, because perceptions affect
consumers’ actual behavior.

KEY PSYCHOLOGICAL PROCESSES THREE PERCEPTUAL PROCESSES

1. Selective attention
2. Selective distortion
Four Key Psychological Processes 3. Selective retention.

Motivation, Perception, Learning and Memory

Learning when we act, we learn. Learning induces changes in our behavior arising
from experience.
Motivation: Freud, Maslow, Herzberg
Emotions consumer response is not all cognitive and rational; much may be
emotional and invoke different kinds of feelings.
Memory Cognitive psychologists distinguish between short-term memory (STM) 3. The anchoring and adjustment heuristic consumers arrive at an initial judgment
and long-term memory (LTM). There are two step process of memory, which is and then adjust it based on additional information.
memory encoding and memory retrival.

Framing is the manner in which choices are presented to and seen by a decision
maker.

Mental Accounting refers to the way consumers code, categorize, and evaluate
financial outcomes of choices.

The Buying Decision Process:

The Five-Stage Model

1. Problem Recognition
2. Information Search
3. Evaluation of alternatives
4. Purchase decision
5. Postpurchase behavior

Moderating Effects on Consumer Decision Making the manner or path by which a

consumer moves through the decision-making stages depends on several factors

Low-Involvement Consumer Decision Making the expectancy-value model assumes

a high level of consumer involvement

Variety-Seeking Buying Behavior some buying situations are characterized by low

involvement but significant brand differences.

BEHAVIORAL DECISION THEORY AND BEHAVIORAL ECONOMICS

Decision Heuristics heuristics similarly come into play in everyday decision making
when consumers forecast the likelihood of future outcomes or events.

1. The availability heuristic consumers base their predictions on the quickness and
ease with which a particular example of an outcome comes to mind

2. The representativeness heuristic consumers base their predictions on how

representative or similar the outcome is to other examples.