Influences on Marketing Flashcards
Factors affecting consumer choice
psychological, sociocultural, economic & government influences
Psychological Influences
influences within an individual that affect his or her buying behaviour
Examples of Psychological Influences
perception, motives, attitudes, personality and self-image, learning
Perception
The process through which people select, organise, and interpret information to create meaning
Why are marketers sure that they must create a positive perception of their product
Customers create a certain image either positive or negative, of a product which can impact their choice to purchase their product/service
Motives
the reason that makes an individual do something
Attitude
A person’s overall feeling about an object/activity
If the attitude of a customer is negative towards a business, what should the business aim to do?
It forces the business to change its marketing strategy, retaining their customer base
Personality and self image
Personality: factors which will influence the types of brands of a product a person buys
Self-image: how a person views themselves
Learning
refers to changes in an individuals behaviour caused by information and experiences
Examples of Sociocultural Influences
Social Class, Culture, Family & Roles and Reference/Peer Groups
Social Class
Are forces exerted by other people and groups that affect an individuals buying behaviour
What social class influences affect the type, quality and quantity of products a customer buys?
Their rank in society, education, income and occupation
Culture
All learned values, beliefs, behaviour and traditions showed in a society
Family & Roles
Purchases made that are family-orientated, according to the buying habits of the differing roles within the family
Peer group
A group whom a person closely identifies with, adopting their attitudes, values and beliefs
Economic Influences
influence a business’s capacity to compete and a customer’s willingness and ability to spend
Economic Boom
a period of low unemployment and rising income
Economic Recession
a period of high unemployment and lowering of income
Government Influences
Governments use a number of economic policy measures to influence the level of economic activity.
Examples of Regulatory Bodies & What they do
Influence marketing activities by prohibiting certain actions
Examples:
- Competition and Consumer Act 2010 (Cwlth)
- Sales of Good Act 1923 (NSW)
- Fair Trading Act 1987 (NSW)
Examples of Consumer Law
Deceptive and Misleading Advertising, Price Discrimination, Implied Conditions, Warranties
Examples of deceptive and misleading advertising
- Fine Print
- Before and After ads
- Tests and Surveys
- country of origin
- packaging
- special offer
- bait and switch advertising
- dishonest advertising
Fine Print
Conditions written in a small-sized font and hard to read
Before and after advertisements
consumers may be misled by ‘before’ and ‘after’ advertisements, where the comparison is distorted so that ‘before’ images are worsened and ‘after’ images enhanced
Tests and Surveys
advertisements make unsubstantiated claims; e.g: 9/10 people prefer… when no actual survey was conducted
Country of Origin
Accuracy in labelling of the origins of the product
Packaging
shape and size may create a misleading impression of the contents
Special Offer
implied offers that are available for a limited of time
Bait and Switch Advertising
Promoting a low-priced item to attract customers to whom the business then tries to sell a higher priced item
Dishonest advertising
When an advertisement uses words that are deceptive or claims that a product has some specific quality when it does not.
Price Discrimination
the setting of different prices for a product in separate markets
Implied Conditions
are the unspoken and unwritten terms of a contract.
Warranty
a promise by the business to repair or replace faulty products
Ethical Influences on Marketing
truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging
Truths/Untruths
concealed facts, vague and exaggerated claims
Concealed Facts
pieces of information purposely omitted from advertisement
Exaggerated Claims
hyperbolic language to generate excitement about a product, making it sound better than it is
Vague Statements
use of ambiguous statements so consumers assume advertisers intended message
Good Taste in Advertising
What is considered to be in ‘good taste’ is highly subjective. Some consumers may regard an advertisement as offensive, while others might view it as inoffensive.
Products which damage health
Marketing of potentially harmful products; example: junk food
Engaging in Fair Competition
Illegal or ethically unfair behaviour toward competitors to increase market share and sales
Sugging
contacting people under the guise of a survey, when in reality its a sales technique in disguise of market research
