Powerpoint Templates

Page 1

Market dominated Source HIGH Mass Media Delivered

Advertising Sales promotion Publicity Special Events Mail

Non- Market dominated Source LOW

News Blogs Clubs Cultural heroes Critiques

Two- Way Communication

Personally Delivered

REACH

Sources of Influence

Sales People Service representative Customer Service Agents

LOW

Family Friends Neighbors Classmates Coworkers HIGH

Credibility Powerpoint Templates

Page 2

Powerpoint Templates

Page 3

Reference Groups
Defined as groups that a person refers to and identifies with, to the extent that the group becomes a norm, standard or a point of reference,

Powerpoint Templates

Page 4

When do groups exert influence

Attitude towards group
View group as a credible source Values views and reaction of group members Accepts the rewards and sanctions by the group for proper and improper behavior

Nature of group
Cohesive Interactive Distinctive & Exclusive

Nature of Product
Visible Exclusive

Powerpoint Templates

Page 5

Types of Reference Group

Membership
Non-Membership

Positive Attitude

Positive Membership group

Aspirational Group

Negative Attitude

Disclaimant group

Dissociative group

Powerpoint Templates

Page 6

Types of Membership Group

Informal
Formal

Primary

Family/Peer groups

School groups, Business groups

Secondary

Sports groups, Kitty party

Teachers association, CA association

Powerpoint Templates

Page 7

Types of Aspiration Group

Contact No Contact

Anticipatory Symbolic

Powerpoint Templates

Page 8

Consumer Relevant Group

Formal Social groups

Family

Friends

Shopping Group

Consumer Action Group

Powerpoint Templates

Page 9

Types of Influence
Normative Reference group Influence
Comparative Influence

Information Influence
Powerpoint Templates Page 10

Types of reference group influence

Public Necessity

Public Luxury

Private Necessity

Private Luxury

Powerpoint Templates

Page 11

How reference group influence consumption

Defines lifestyle

Bring about attitudinal change

Set aspirational levels

Create conformity pressures

Exercise social powers

Powerpoint Templates

Page 12

Involvement
Compliance Identification Internalization

Powerpoint Templates

Page 13

Powerpoint Templates

Page 14

The Family Life Cycle

Traditional Family Life Cycle
Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Post-parenthood Stage V: Dissolution

Modifications - the Nontraditional FLC

Powerpoint Templates

Page 15

Powerpoint Templates

12-16

Page 16

Nontraditional FLC Stages

Alternative FLC Stages
Family Households Childless couples It is increasingly acceptable for married couples to elect not to have children. Contributing forces are more career-oriented married women and delayed marriages.

Definition/Commentary

Couples who marry later in life (in their late 30s or later)

More career-oriented men and women and greater occurrence of couples living together. Likely to have fewer or even no children. Likely to have fewer children. Stress quality lifestyle: Only the best is good enough

Couples who have first child later in life (in their late 30s or later)

Powerpoint Templates

Page 17

Alternative FLC Stages Family Households Single parents I

Definition/Commentary

High divorce rates (about 50%) contribute to a portion of single-parent households Young man or woman who has one or more children out of wedlock. A single person who adopts one or more children. Young single-adult children who return home to avoid the expenses of living alone while establishing their careers. Divorced daughter or son and grandchild(ren) return home to parents. Frail elderly parents who move in with children. Newlyweds living with in-laws.

Single parents II

Single parents III Extended family

Powerpoint Templates

Page 18

Alternative FLC Stages Nonfamily Households Unmarried couples

Definition/Commentary

Increased acceptance of heterosexual and homosexual couples.

Divorced persons (no children)

Single persons (most are young)

High divorce rate contributes to dissolution of households before children are born.
Primarily a result of delaying first marriage; also, men and women who never marry.

Widowed persons (most are elderly)

Longer life expectancy, especially for women; means more over-75 single-person households.

Powerpoint Templates

Page 19

Powerpoint Templates

Page 20

Dynamics of Husband-Wife Decision Making

Husband-Dominated Wife-Dominated Joint
Equal Syncretic

Autonomic
Solitary Unilateral
Powerpoint Templates
12-21

Page 21

Family and Marketing Strategy

Use the FLC for segmentation and positioning Recognize the diverse consumption roles within the family Understand and use the dynamics of husbandwife decision making Understand and use the consumer socialization role played by the family

Powerpoint Templates

Page 22

OPINION LEADERSHIP

Opinion Leaders
An Opinion Leader is Someone Who is Knowledgeable About Products and Whose Advice is Taken Seriously By Others.
Are Often Among the First to Buy New Products Are Technically Competent and Have Expert Power

Opinion Leaders

Are Similar to the Consumer in Values and Beliefs

Have Prescreened, Evaluated, and Synthesized Product Information

Are Socially Active in Their Community

 The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients

Opinion creator

Opinion Leadership

Opinion seeker

Opinion Receiver

 Opinion leaders are four times more likely to be asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants Information seekers seek a strong-tie source when they know little about a topic, and weak-tie sources when they have some knowledge

Special Issues

 Purchase Pals
Information sources who accompany a consumer on a shopping trip

Surrogate Buyers
Professional buyers who help consumers with their purchases

Market Mavens
Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

Purchase Pals and Surrogate Buyers + Market mavens

Difference between OL & SB

To reduce their own post-purchase dissonance For tangential personal benefits Because of high levels of product involvement Because of message involvement

Motivations Behind Opinion Leadership

To obtain new product or new usage information To reduce their risk by getting knowledge

To reduce search time To receive the approval of the opinion leader

Motivations Behind Opinion Leadership

Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street

Reasons for the Effectiveness of Opinion Leadership

13-32

The Interpersonal Flow of Communication

Two-Step Flow
A communication model that portrays opinion leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.

Multi-step Flow
A revision of the traditional two-step theory that shows multiple communication flows

Measuring Opinion Leadership

OPINION LEADERSHIP DESCRIPTION OF METHOD MEASUREMENT METHOD

SAMPLE QUESTIONS ASKED

SELF-DESIGNATING METHOD

Each respondent is asked a series Do you influence of questions to determine the other people in their degree to which he or she perceives selection of products? himself or herself to be an opinion leader.

SOCIOMETRIC METHOD Members of a social system are asked to identify to whom they give advice and to whom they go for advice.

Whom do you ask?Who asks you for info about that product category?

Identifying Opinion Leaders

Self-Designating Method

Identifying Opinion Leaders

Sociometric Method
Referral Behavior Network Analysis Referral Network Tie Strength Bridging Function

OPINION LEADERSHIP MEASUREMENT METHOD

DESCRIPTION OF METHOD

SAMPLE QUESTIONS ASKED

KEY INFORMANT METHOD

Carefully selected key informants in a social system are asked to designate opinion leaders.

Who are the most influential people in the group?

OBJECTIVE METHOD

Artificially places individuals in a position to act as opinion leaders and measures results of their efforts.

Have you tried the product?

Measuring Opinion Leadership continued

Identify and provide samples to opinion leaders Design programs to stimulate opinion leadership Develop ads simulating opinion leadership Create opinion leaders Control negative word-of-mouth communication

Opinion Leadership and Marketing Strategy

 The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

Adoption Process

The Innovation The Channels of Communication The Social System Time

Factors That Affect the Diffusion of Innovations

Relative Advantage Compatibility Complexity Trialability Observability Felt Need Risk

Product Characteristics That Influence Diffusion

 Does the target market have:

A positive attitude towards change? Technological skill? A general respect for education and science? A focus on rational and ordered social relationship? An outreach perspective? The ability to accept different roles?

Social System and Diffusion

 Purchase Time Adopter Categories Rate of Adoption

Time and Diffusion

 A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

Adopter Categories

2.5% of population Venturesome Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships Communicates with other innovators

Innovators: Description

13.5% of population Respected More integrated into the local social system The persons to check with before adopting a new idea Category contains greatest number of opinion leaders Are role models

Early Adopters: Description

34% of population Deliberate Adopt new ideas just prior to the average time Seldom hold leadership positions Deliberate for some time before adopting

Early Majority: Description

34% of population Skeptical Adopt new ideas just after the average time Adopting may be both an economic necessity and a reaction to peer pressures Innovations approached cautiously

Late Majority: Description

16% of population Traditional The last people to adopt an innovation Most localite in outlook Oriented to the past Suspicious of the new

Laggards: Description

Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Purchase and consumption characteristics Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators?

The Profile of a Consumer Innovator

Identify diffusion inhibitors and find ways to compensate for these Identify innovators and early adopters and cater to them Move consumers from awareness to adoption Make effective use of word-of-mouth communications

Diffusion Process and Marketing Strategy