ZeePedia

INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price

<< INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value >>
img
Consumer Psychology (PSY - 514)
VU
Lesson 03
INTRODUCTION TO CONSUMER PSYCHOLOGY
(MARKETING MIX)
OBJECTIVES:
Introducing the Concept of Marketing Mix
o  Understanding the four elements of Marketing Mix::
Product
Price
Place
Promotion
o  Services
Marketing Mix
Marketing Mix consists of the tools available to a business to gain the reaction it is seeking from its target market
in relation to its marketing objectives. It consists of company's services/and or products offerings to consumers
and methods and tools it uses to accomplish the exchange. The marketing mix consists of four elements:
1.
Product or Service
2.
The Price
3.
The Place
4.
Promotion
1. Product
Product is anything that consumer acquires or might acquire to meet a perceived need. Product features, design,
brands, and packaging offered along with post purchase benefits such as warranties and return policies. Consumers
don't purchase physical features of a product, they buy the perceived benefits.
Various ways are used to improve/differentiate the product and increase sales or target sales more effectively to
gain a competitive advantage e.g. some of the ways are:
 Extension strategies
 Specialised versions
 New editions
 Improvements ­ real or otherwise!
 Changed packaging
 Technology, etc.
8
img
Consumer Psychology (PSY - 514)
VU
2. Price
Price is the amount of money one must pay to obtain the right to use the product. This means the list price,
including discounts, allowances, and payment methods.
Economists often assume that lower prices will result in higher sales. Price sometimes serves as signal of quality
also. A product priced too low might be perceived as having very low quality and a product priced too high might
be perceived as of a very high quality. Simultaneously, owning an expensive item also provides information about
the consumer. It can dictate that the owner can afford an expensive item
It is important here to note that the price of a product is not the same as the cost of the product.
Consumer Cost is everything a consumer must surrender to receive the benefits of owning/using the products.
3. Place
Having the product available where the target consumers could purchase it. The distribution of product or services
may be made through specific stores and non-store outlets.
9
img
Consumer Psychology (PSY - 514)
VU
4. Promotion
Promotion consists of Strategies to make the consumer aware of the existence of a product
or service. This includes advertising, sales promotion, public relations, and sales efforts designed to build
awareness and demand for the product or services. Promotion is NOT just advertising
The basis of successful promotion is developing an effective communication strategy and an effective
communication strategy requires answers to certain important questions. Which are:
The Five Questions of Promotion
1.
With whom exactly do we want to communicate?
2.
What effect do we want our communications to have on our target consumers?
3.
What message will achieve the desired impact on our audience?
4.
What means and media should we use to reach the target audience?
5.
What should we communicate with our audience?
a) With whom exactly do we want to communicate?
Target Market Member
Channel Members
Example: Pediatric nurses are often asked for advice concerning diapers and other non medical infant
care. A firm marketing such items will be wise to communicate with such individuals directly in their
promotion
b) What effect do we want our communications to have on our target consumers?
Often a manger will state that the ultimate objective of all communications is to improve the sales, while this may
be the ultimate objective, however, the behavioral objectives are often of much more importance. It may seek to
provide more information to the audience, educate the audience on certain features of the product, recommend
the product to others, feel good about having bought the product, etc..
c) What message will achieve the desired impact on our audience?
What words, pictures visuals will be used, how a particular word is interpreted by the target audience, what kind of
symbolism may be used.
d) What means and media should we use to reach the target audience?
Can we rely on the packaging of the product to provide information or should we use media, and if so what type
of media should we use
e) What should we communicate with our audience?
Should we concentrate in our communications near the time purchase tend to be madder or evenly through out
the week or the month? Do consumers seek out information shortly before the purchase of our product? If so,
then where? Answering these questions requires knowledge of the decision process used by the target market for
this product.
5. Services
Earlier we defined product to include services. The services products may be like medical treatments, car repairs or
haircut; however, in this section we are discussing services to refer to auxiliary or peripheral activities that are
performed to enhance the primary product or service. For example a fast food restaurant may offer fee delivery; a
car repair shop may offer free pick up and delivery. Auxiliary services are used add tactical advantage to a certain
product and these cost money to the company. Therefore, these must be planned carefully and only those services
need to be added that will provide maximum value to the consumers.
10
Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism