R E V I E W

What Have We
Un-Covered &
Dis-Covered until
now

S E G M E N T A T I O N
Everyone is not your customer
Everyone need not be a customer
It is hard to satisfy everyone
It is easier to satisfy select customers
It is easier to retain current customers
than recruit new customers
S E G M E N T A T I O N
S E G M E N T A T I O N
Simplicity and Cost-Effectiveness of Assigning
Potential Buyers to Segments
Potential for Increased Profit
Similarity of Needs of Potential Buyers
Within a Segment
Potential of a Marketing Action to Reach
a Segment
Difference of Needs of Buyers Among Segments
S E G M E N T A T I O N
M O T I V A T I O N
M O T I V A T I O N
M O T I V A T I O N

Types of Motivational
Conflict

Approach-approach: deciding between two
desirable options

Avoidance-avoidance: deciding between two
undesirable options

Approach-avoidance: behavior that has both
positive and negative consequences.
P E R C E P T I O N
Five senses
P E R C E P T I O N
Absolute threshold
Lowest level at which one can notice
Differential threshold
Minimum noticeable difference between two levels of a
stimuli
jnd
Subliminal threshold
Noticing of very weak or rapid stimuli below
consciousness
P E R C E P T I O N
Motivations
Past Experiences
Expectations
Frequency
Recency
P E R C E P T I O N
Selective Perception
Selective exposure/attention
Selective Blocking/defense
L E A R N I N G
It is the cognitive process of acquiring skill
and knowledge; learning is the acquisition
and development of memories and
behaviors, including skills, knowledge,
understanding, values, and wisdom.

Learning is defined as the change in the
content and/or structure of ones memory

L EA R N I N G
L E A R N I N G
A T T I T U D E
Attitude is a learned
predisposition towards an object
or concept that moderates and
influences eventual behaviors
A T T I T U D E
BI
A T T I T U D E
A T T I T U D E
Belief is the knowledge,
perceptions, or inferences
an individual has about a
target object
Affect is the emotion or
feeling an individual has
about a target object
A T T I T U D E
Multi-Attribute Model
A T T I T U D E
Ideal Point Model
A T T I T U D E
Change Evaluative Belief
Change Weight
Change Number of
Attributes
Change Ideal Point
ATTITUDE:
Elaboration-Likelihood Model
Message
unimportant,
uninteresting
Heuristic
processing
Nonverbal
cues
important
Argument
strength
unimportant
Message
important,
interesting
Systematic
processing
Nonverbal
cues
unimportant
Argument
strength
important
Peripheral Route
Central Route
PSYCHOLOGY MEETS ECONOMICS
B E H A V I O R A L
E C O N O M I C S
Framing Effects
Certainty Effects
Social Norms Effects
Status Quo Effects
B E H A V I O R A L
E C O N O M I C S
Endowment Effects
Paradox of Choice
Choice Aversion Effects
PROSPECT THEORY
C O M M U N I C A T I O N
Sender, Receiver
Encoding, Decoding
Message, Media, and Noise
Source
Channel of
Communication
Message
Receivers
blah
blah
blah
Context
C O M M U N I C A T I O N
Who is the source? What is the message? Who is the target? How would
you decode this ad?
Who is the source? What is the message? Who is the
target? How would you decode this ad?
Who is the source? What is the message? Who is the target? How would you
decode this ad?
C O M M U N I C A T I O N
Advertising
Broadcast
still useful, but less so than before
Narrowcast
growingly important and useful
Print
less important, but less expensive
Outdoor
has a strong supporting role
Internet
growing, but very ephemeral
C O M M U N I C A T I O N
Sales promotion
Discount, Coupons, etc.
Public relations
Press releases, Sponsorships, Special
Events, etc.
Personal Selling
Sales Seminars, Trade Shows, etc.
Direct marketing
Catalogs, Telemarketing, Internet, Kiosks



C O M M U N I C A T I O N
C O M M U N I C A T I O N
What will
be said
How it will
be said
When it
will be said
Where it
will be said
Who will
say it
We Just Completed
our Review