Reading Packet Essay

This means that companies are constantly innovating. “Marketing managers of firms have long been concerned with how to launch new roducts more efficiently. (Rogers 293) In other words marketers are trying to figure out how to communicate their new product to potential customers. Even today by utilizing diffusion research marketers can determine which means of communication will most successfully reach the consumers. Should a company spend money on a TV ad, or will broadcasting through twitter and other social media sight be sufficient? Employing studies on how a company’s customers communicate with one another and the world allows companies to maintain and create customers and customer value. The Continuing Significance of Social Class to Marketing- Richard P.

Coleman In this article Coleman argues the importance of understanding the evolution and impact of social classes. A definition of social classes offered early in this piece is “classes of people who were approximately equal in community esteem, and were made up of men and women who regularly specialized among themselves, in both formal and informal ways, and shared behavioral expectations. ” (Coleman 265) While the traditional view of social classes revolves around age, race, income, demographics, etc. an updated iew structures social classes around lifestyles and living conditions.

Either way you define the social group Coleman’s theme in this article is that social classes can and will determine purchasing decisions. Coleman offers a number of lists of social classes. While these lists may have different names and number of classes there are some key concepts that hold true in all the grouping that are of fundamental importance for this paper. In each there is some group of upper class who makes up the smallest percentage of population, but holds the majority of the wealth. There is a iddle class who makes up the majority of population, and there is a lower class.

In the past the upper class was viewed as people living an aristocratic lifestyle, the middle class was the working people who couldn’t afford to live like royalty but tried to emulate it the best they could, and the lower class was trying to survive. In modern times Coleman explains that the clearly drawn lines that were previously seen are becoming blurred. The prior change in perception is occurring because social classes are not being drawn based on income level, but rather lifestyle. The things people do etermine their social class not how big their paycheck is.

This is not to say that income should be completely ignored when determining social classes. people may have the desire to purchase or do something, but do not have the ability to pay for it. It is for this reason that both social class and income levels should be taken into consideration in research. As aforementioned, social classes can determine and change how people think and live. This is important to marketers because social classes can determine how people choose to buy. Marketers can market to certain social lasses by marketing a certain lifestyle that that social class enjoys.

There needs to be different marketing techniques for different social classes, because each class is looking for a different thing. Social classes are based around the network in which people are a part of. This may change but classes will always be present and necessary to study by marketers. Behavioral Models for Analyzing Buyers- Philip Kolter Kolter explains in this piece that the new selling methods employed by companies have eliminated a companfs direct contact with their customers. It is his belief that uncovering why people buy the way they do is a difficult but important task for companies to undergo.

He introduces five different models employed to help determine human buying behavior. The Marshallian method holds that consumers make decisions based on economic calculations. That is consumers make purchasing decisions based on economic conditions at both their individual level and society as a whole. The Pavlovian method suggests that human buying behavior is a learned response. Consumers make purchases based on past experiences that have rewarded them. The Freudian Method holds that consumers have a basic set of needs and desires that is with them from birth.

These needs drive all the purchase decisions that a person will make even if that person is not aware of said desires. The Veblenian method suggests that consumers are influenced by the culture that surrounds them. What is popular in culture is often what people tend to desire. The Hobbesian Organization-factors model deals more specifically with organization buyers. It holds that consumers will tend to satisfy the wants of the organization first, and if there is no real difference etween options the individual agent will satisfy personal desires.

Kolter makes it clear that there is no generally accepted model, but rather all of them are needed because each sheds light on a corner of behavioral science. These theories are important to marketing. Marketers need to understand the reason consumers purchase things. They need to do this so that they can better reach these consumers and turn them into customers. For example, a marketer should be aware of economic conditions because if people have less money they are less likely to buy luxury goods. This can ffect the pricing strategy of marketing.

Another example comes in advertising. Many companies have ads that appeal to the sexual nature present in humans according to Freud. The better a marketer can understand his/her customers the more likely they can determine what will make them buy something and what will make them not buy something. Knowing this can help shape what products/services will be offered, how they will be communicated to the public, what ways and how much will we sell them for. In other words knowing the customer can help a company determine its marketing strategy.