Chapter 15:
Consumption activities: when, where, how, and why people use products and services
Convenience product: Widely available, inexpensive, and purchased frequently with minimal
effort
Value based pricing: Setting prices according to customer perception of a product's worth
Franchise outlet: business location that operates under a licensing agreement with a parent
company, the franchisor, allowing it to sell the franchisor's goods or services using the
franchisor's brand and business mode
post-purchase cognitive dissonance:Regret or tension caused by comparing purchased
products with alternatives
Stimulus generalization: when consumers react in a similar way to different but similar stimuli
opportunity recognition: identifying and capitalizing on promising prospects in the market,
such as emerging trends, customer needs, and gaps in the marketplace
- Where the ideal state improves, promoting action to reach it
Need recognition: When the actual state declines, prompting a need for action
Actual State:
This refers to the current situation, the way things are right now.
Ideal State:
This is the desired or target state, what one would like to see as the result.
No Significant Gap:
When the actual state closely aligns with the ideal state, it means there's minimal
difference between the two.
Evaluation of alternatives: When a customer evaluates all alternatives before purchasing
Selective tendency: our tendency to ignore most of the information to which we are exposed
antecedent states: the momentary moods or conditions a consumer experiences before
making a purchase decision, which can influence their behavior, preferences, & choices
- Ie: good mood = trying/buying new product
Customary pricing: price of a product or service is set based on the price that consumers are
accustomed to paying, or what is considered a "standard" price in the market
, - price is often based on tradition, established channels of distribution, or long-standing
market history
Today's marketers face three major shifts:
1. Changing Consumers:
- Consumers are now highly informed, digitally connected, & socially
empowered.
- Use the internet, social media, reviews, and online communities to
make decisions independently of brands
- Often create and share their own brand content
2. Changing marketing strategies:
- Fragmentation of mass markets into smaller niche segments.
- Brands now target more personalized audiences through relationship
marketing.
- Shift from "sell what we make" to "make what we can sell."
3. Digital Technology Advancements:
- Rise of smartphones, tablets, apps, & streaming platforms
- New tools: websites, blogs, online ads, social networks, digital influencers.
- Leads to interactive, real-time communication between brand and
consumer
Problems with the Old Model of Marketing:
- Mass media costs are rising, and effectiveness is dropping due to ad-skipping,
DVRs, and streaming.
- Message fragmentation: Companies often send inconsistent messages
through different departments and channels (e.g., a Super Bowl ad vs. Instagram
post).
- Consumers don't differentiate by source—they perceive one unified brand
image, so inconsistency causes:
, - Brand confusion
- Poor customer relationships
- Diluted positioning: weakening of a brand's clear and distinct image in the
minds of consumers, often due to poor brand extensions or inconsistent
marketing messaging
Integrated Marketing Communications (IMC): IMC is the careful coordination of all
promotional tools to present a consistent, clear, and compelling message across
every consumer touchpoint.
- Carefully integrating and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling message about the
organization and its products
- Benefits:
1. Stronger brand equity and clearer brand positioning
2. Greater trust and loyalty from customers
3. Improved marketing ROI (return on investment) through consistent
messaging
Goals of IMC:
- Harmonize all marketing efforts across all media platforms.
- Reinforce the brand's value proposition.
- Enhance customer experience and build brand equity
, - Advertising: Paid, non-personal promotion via media (TV, radio, online). Best for
creating awareness
- Sales Promotion: Short-term incentives (coupons, flash sales, discounts).
Drives immediate action
- Personal Selling: Face-to-face interaction, tailored communication. Key in B2B
and high-involvement products (like cars)
- Public Relations: Managing company reputation via media coverage, events,
sponsorships. Builds trust and credibility
- Direct & Digital Marketing: Email, websites, social media, mobile apps.
Personalized and measurable interaction
Cross platform integration: campaigns use multiple media types simultaneously to
maximize impact
- Ie: TV ads create awareness → YouTube extends engagement → Social media
fosters conversation → Email retargets leads
Content marketing:
- Content marketing = Creating, curating, and sharing valuable brand-related
content to engage and convert audiences.
- Goes beyond just placing ads—aims to entertain, educate, or inspire.
- Includes: blogs, videos, infographics, how-to guides, vlogs, TikTok
Consumption activities: when, where, how, and why people use products and services
Convenience product: Widely available, inexpensive, and purchased frequently with minimal
effort
Value based pricing: Setting prices according to customer perception of a product's worth
Franchise outlet: business location that operates under a licensing agreement with a parent
company, the franchisor, allowing it to sell the franchisor's goods or services using the
franchisor's brand and business mode
post-purchase cognitive dissonance:Regret or tension caused by comparing purchased
products with alternatives
Stimulus generalization: when consumers react in a similar way to different but similar stimuli
opportunity recognition: identifying and capitalizing on promising prospects in the market,
such as emerging trends, customer needs, and gaps in the marketplace
- Where the ideal state improves, promoting action to reach it
Need recognition: When the actual state declines, prompting a need for action
Actual State:
This refers to the current situation, the way things are right now.
Ideal State:
This is the desired or target state, what one would like to see as the result.
No Significant Gap:
When the actual state closely aligns with the ideal state, it means there's minimal
difference between the two.
Evaluation of alternatives: When a customer evaluates all alternatives before purchasing
Selective tendency: our tendency to ignore most of the information to which we are exposed
antecedent states: the momentary moods or conditions a consumer experiences before
making a purchase decision, which can influence their behavior, preferences, & choices
- Ie: good mood = trying/buying new product
Customary pricing: price of a product or service is set based on the price that consumers are
accustomed to paying, or what is considered a "standard" price in the market
, - price is often based on tradition, established channels of distribution, or long-standing
market history
Today's marketers face three major shifts:
1. Changing Consumers:
- Consumers are now highly informed, digitally connected, & socially
empowered.
- Use the internet, social media, reviews, and online communities to
make decisions independently of brands
- Often create and share their own brand content
2. Changing marketing strategies:
- Fragmentation of mass markets into smaller niche segments.
- Brands now target more personalized audiences through relationship
marketing.
- Shift from "sell what we make" to "make what we can sell."
3. Digital Technology Advancements:
- Rise of smartphones, tablets, apps, & streaming platforms
- New tools: websites, blogs, online ads, social networks, digital influencers.
- Leads to interactive, real-time communication between brand and
consumer
Problems with the Old Model of Marketing:
- Mass media costs are rising, and effectiveness is dropping due to ad-skipping,
DVRs, and streaming.
- Message fragmentation: Companies often send inconsistent messages
through different departments and channels (e.g., a Super Bowl ad vs. Instagram
post).
- Consumers don't differentiate by source—they perceive one unified brand
image, so inconsistency causes:
, - Brand confusion
- Poor customer relationships
- Diluted positioning: weakening of a brand's clear and distinct image in the
minds of consumers, often due to poor brand extensions or inconsistent
marketing messaging
Integrated Marketing Communications (IMC): IMC is the careful coordination of all
promotional tools to present a consistent, clear, and compelling message across
every consumer touchpoint.
- Carefully integrating and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling message about the
organization and its products
- Benefits:
1. Stronger brand equity and clearer brand positioning
2. Greater trust and loyalty from customers
3. Improved marketing ROI (return on investment) through consistent
messaging
Goals of IMC:
- Harmonize all marketing efforts across all media platforms.
- Reinforce the brand's value proposition.
- Enhance customer experience and build brand equity
, - Advertising: Paid, non-personal promotion via media (TV, radio, online). Best for
creating awareness
- Sales Promotion: Short-term incentives (coupons, flash sales, discounts).
Drives immediate action
- Personal Selling: Face-to-face interaction, tailored communication. Key in B2B
and high-involvement products (like cars)
- Public Relations: Managing company reputation via media coverage, events,
sponsorships. Builds trust and credibility
- Direct & Digital Marketing: Email, websites, social media, mobile apps.
Personalized and measurable interaction
Cross platform integration: campaigns use multiple media types simultaneously to
maximize impact
- Ie: TV ads create awareness → YouTube extends engagement → Social media
fosters conversation → Email retargets leads
Content marketing:
- Content marketing = Creating, curating, and sharing valuable brand-related
content to engage and convert audiences.
- Goes beyond just placing ads—aims to entertain, educate, or inspire.
- Includes: blogs, videos, infographics, how-to guides, vlogs, TikTok
