Market Notes

 Get,Keep,Grow
 AIDA
 Customer churn is “where new customers must be recruited in a constant struggle to
replace those that are leaving.”
 Customer needs, wants and demands
 Market offerings – products, services and experiences
 Customer value & satisfaction
 Exchanges and relationships
 Markets

Product and marketing focus

 Customer value is the difference between the values the customer gains from owning and
using the product and the costs (sacrifices) of obtaining the product.

Core forms of customer value

Price Value: A powerful motivation for purchase is because a product is perceived as cheaper than
those offered by other competitors e.g. exploited by Ryanair, Aldi

Performance Value: Customers look for the latest features, functionality and quality (e.g. Dyson).

Emotional Value: In many product categories (e.g. car industry) the technical differences between
competitive offers may be marginal – the main difference between brands may be in the mind of the
consumers (i.e. emotional value) – (e.g. some prefer Volvo cars for safety reasons; in the watch
industry consumers may pay huge price premiums for certain brands)

Relational Value: Quality of the product and/or service received builds a relationship with the
service provider and a trust in them (leading to lifetime value of the customer)

B2C elements of value pyramid – functional, emotional, life changing, social

 NPS
 CLV – margin of total lifetime buys- cost of marketing and retaining the customer
 CRV- referrals- cost of referral incentives
 Create and capture value
 Exchange is the act of obtaining a desired object from someone by offering something in
return
 Relationship marketing
Marketing Environment
External marketing forces- Ecological, political, technological, socio cultural, economic, ecological,
legal

Internal marketing forces- competitors, suppliers, distributors, customers

Environmental Scanning: Collecting information about the marketing environment. Can be

performed by company, industry organization, or consultant.

Environmental Analysis: Identification of threats and opportunities that result from

environmental forces.

 disruptive innovations
 Sustainability Marketing

Buyer Behaviour

 Initiator: the person who begins the process of considering a purchase. Information may be
gathered by this person to help the decision.
 Influencer: the person who attempts to persuade others in the group concerning the
outcome of the decision. Influencers typically gather information and attempt to impose
their choice criteria on the decision.
 Decider: the individual with the power and/or financial authority to make the ultimate
choice regarding which product to buy.
 Buyer: the person who conducts the transaction. The buyer calls the supplier, visits the
store, makes the payment, and effects delivery.
 User: the actual consumer/user of the product.

1. Information Processing Approach- rational approach to buying

2. Consumer Culture Theory (CCT)- socio-cultural and experiential buying, emotional

 Consumer identity projects

 Marketplace cultures (e.g. sub-cultures – tribal aspects of consumption are quite pervasive.)
  The socio-historic patterns of consumption (addresses the institutional and social structures
that systematically influence consumption e.g. class, community, ethnicity, and gender.)

 Mass mediated marketplace ideologies and consumer interpretative strategies

4 types of consumer decisions

Extended problem solving, habitual problem solving, limited problem solving and variety seeking
behaviour

 Need recognition, info search, evaluation of alternatives, purchase, post purchase evaluation

Th ideal state vs the actual state

 Awareness state-the array of brands that may provide a solution to the problem >evoked
set

Factors that motivate search

1. The Quantity of existing information

2. The Quality of existing (stored) information
3. Ability to recall that information
4. Perceived risk
5. Confidence in decision-making ability

 Post purchase concern

Factors influencing level of involvement

Self image, perceived risk, social factors and hedonistic influences

 Selective attention, distortion and retention

1. Classical conditioning- using an established relationship between a stimulus and a response

to cause learning
2. Operant conditioning- Learning through positive reinforcement
Intention to act is affected by

 Attitude towards the act: The attitude a subject has to a specific behaviour (favourable or
unfavourable)
 Subjective norm: Perceived social pressure to act or not act in a certain way (subjective
norm)
 Perceived behavioural control: The perceived ease or difficulty of performing the behaviour

How to narrow the intention-action gap

1. Use Social Influence

2. Shape Good habits
3. Leverage the domino effect
4. Decide whether to talk to the heart or brain
5. Encourage experiences over ownership

 Innovativeness, materialism, sociability and self confidence

 Influencer marketing- expertise, reach, demographic, notoriety important in choosing an
influencer to represent a brand
 Linear/ circular journey

Straight Rebuy: Routine purchase

Modified Rebuy: Dissatisfaction leads to change.

New Task: Complex process - all stages.

Economic and non-economic buying influences