Marketing Final – Short Answer pt 2 – last year

Situational influences
1. Purchase task
2. Social surroundings
3. Physical surroundings
4. Temporal effects
5. Antecedent state
Situational influence: purchase task
The reason for engaging in a decision.
Ex: A gift or not a gift/the evaluation of alternatives.
Situational influence: social surroundings
Who is with you at the time of the purchase.
Ex: Someone shopping with children spends 40% more money.
Situational influence: physical surroundings
Decor, music and crowding of a store.
Ex: Crowding made lead to a quicker decision-making process.
Situational influence: temporal effects
Time of day or amount of time available.
Ex: Influence where someone eats or what they order.
Situational influence: antecedent state
Includes the consumers mood or amount of cash they have on hand.
Ex: Person spends more with a credit card than with a debit card or cash.
Degree of new consumer learning needed
1. Continuous innovation
2. Dynamically discontinuous innovation
3. Discontinuous innovation
Continuous innovation
Definition: requires no new learning by consumers.
Examples: new and improved shavers, detergent, toothpaste.
Marketing strategies: gain consumer awareness and wide distribution.
Dynamically discontinuous innovation
Definition: disrupts consumers normal routine but does not require totally new learning.
Examples: electronic toothbrush, LED HDTVs, smartphones.
Marketing strategies: Advertise points of difference and benefits to consumers.
Discontinuous innovation
Definition: requires new learning and consumption patterns by consumers.
Examples: Wireless router, digital video recorder, electric car.
Marketing strategies: Educate consumers through product trial and personal selling.
Product life cycle
1. Introduction stage
2. Growth stage
3. Maturity stage
4. Decline stage
Introduction stage
Marketing objective: gain awareness.
Competition: few
Product: one
Price: skimming or penetration
Place (distribution): limited
Promotion: inform, educate
Growth stage
Marketing objective: stress differentiation
Competition: more
Product: more versions
Price: gain market share, deal
Place (distribution): more outlets
Promotion: stress points of difference
Maturity stage
Marketing objective: maintain brand loyalty
Competition: many
Product: full product line
Price: defend market share, profit
Place (distribution): maximum outlets
Promotion: reminder-oriented
Decline stage
Marketing objective: harvesting, deletion
Competition: few
Product: best-sellers
Price: stay profitable
Place (distribution): fewer outlets
Promotion: minimal promotion