I have attached the question. I will post student question when I receive one later. Chapter 2, Customer Behavior and 3, Segmentation of textbook can also be used.

Marketing Management: MKT500 Week 1 Discussion Board The textbooks for the class are: Iacobucci, D. (2014). MM4: Marketing management (4th ed.). Mason, OH: SouthWestern Cengage Learning. Case Pack MKT500: Marketing Management. Ann Arbor, MI: XanEdu. "The Death of the 4Ps?" Watch the video below and then respond to the questions that follow: https://youtu.be/Oi7raBwliQ8 Describe a company that you believe represents the 4Cs well, and provide examples of why you believe they are successful at it. Describe a company that you believe does not do well putting the 4Cs into practice, and provide two (2) examples of why you believe they struggle at it. What recommendations would you give the company who needs to update their approach? ***Responses must meet the following criteria and be fully developed and more than 10 sentences.**** Describe a company that you believe represents the 4 Cs well, and provide examples of why you believe they are successful at it. The discussion points were identified and described with high accuracy, and all appropriate information was identified and discussed clearly. Provides analysis and / or interpretation of 4Cs by using a real life example. Provides 2 examples of why believe they are successful and post is fully developed. Interpretation of how these examples relate to the 4Cs is needed. The post content is exemplary; the formatting contains no grammar, spelling, or other formatting mistakes. Total post is fully developed and more than 10 sentences. Describe a company that you believe does not do well putting the 4Cs into practice , and provide two (2) examples of why you believe they struggle at it. 1 Describes the company and provides the name of company and any background about the 4Cs. Provides analysis and/or interpretation of 4Cs by using a real life example. Provides 2 examples of why you believe they struggle at it and the l post was fully developed. The discussion points were identified and described with high accuracy, and all appropriate information was identified and discussed clearly. What recommendations would you give the company who needs to update its approach? Provides a personal opinion about how the company can update its approach. The recommendation is tied to the 4Cs. The recommendation is tied to the 4Cs and represents a change in what the company is currently doing. The recommendation is fully explained as to why it would work. Response to Peer/Classmate The student cannot restate/summarize another student's response. The student cannot state an opinion or offers a superficial reaction. The student answer is too short and not fully developed (below 10 sentences). Response was not substantive. Follow-up question are not included. Provide a description of issue and how these facts are related to the discussion thread topic, or provide a different point of view. Response must demonstrate an understanding of important concepts by furthering the discussion conversation using at least 1 topic mentioned by peer. The post must further the discussion by introducing a new point of view. Or a real life example could be used to illustrate a new point of view. 2 3 THE TATA NANO: THE PEOPLE'S CAR (A) It was one of the longest-awaited and most talked-about automobile debuts in India. On January 10, 2008, Tata Motors unveiled its (U.S. dollars) USD2,500 car (also called \"Rs1 lakh car\" or \"the people's car\") at the ninth Auto Expo in New Delhi. The Tata Nano brought a media blitz and a crush of onlookers that required top-level security. Would the car live up to its hype? And did its launch signal a new era for the small car market in India? How could Tata ensure the product would be profitable? Widely touted as the cheapest car in the world, the Nano was scheduled to be available in September 2008. In addition to paying (Indian rupees) INR1 lakhequivalent to INR100,000 buyers would also have to pay 12.5% value-added tax along with charges such as road and transportation taxes. The two-cylinder gasolinepowered version would debut first; the diesel versions would soon follow. The Nano was one of the world's most fuel-efficient cars, getting 52 miles per gallon (mpg) in the city and 61 mpg on the highway (22 km per liter and 26 km per liter, respectively). Measuring 3.1 meters by 1.5 meters, it displaced Maruti Udyog's Maruti 800 as the world's smallest car, yet its seating room was 21% greater than the 800'sproviding ample room for four adults. 1 Company History The Tata Group was a diverse conglomerate that had international interests in engineering, energy, information systems and communications, materials, services, consumer products, and chemicals. Its 96 companies employed 650,000 people on six continents. For many casual observers, the May 2008 news that a British automotive icons Jaguar and Land Rover had been acquired from Ford Motor Co. by a non-Western company came as a surprise. But new owner Tata Motors was in fact the sixth-largest commercial vehicle manufacturer in the world and was among India's largest automobile companies. In 2004, Tata Motors became the first Indian manufacturing company to be listed on the New York Stock Exchange. Tata Engineering and Locomotive Co. Ltd, a train manufacturer, was established in 1945. In 1954, the company launched its first automobile; between 1954 and 1969, it collaborated with DaimlerBenz to produce commercial vehicles known as Tata MercedesBenz trucks, later produced independently as Tata trucks. By the 1990s, Tata had entered the passenger-vehicle market with India's first sport utility vehicles, called the Tata Sierra. In 1998, it hit the jackpot with the Tata Indicaa name derived from \"India's Car,\" an apt moniker given that the car had become the most popular vehicle in the country's economy car segment. Tata launched the Indigo in 2002. In 2005, Tata launched India's first indigenously developed mini truck, called the Tata Ace. In 2004, Tata Motors acquired the Daewoo Commercial Vehicle Co. Ltd., Korea's second-largest truck manufacturer. In 2005, it acquired a 21% stake in Hispano Carrocera SA, a Spanish bus manufacturer. The company had manufacturing plants in the Indian cities of Jamshedpur, Pune, and Lucknow, and assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia, and Senegal. Globally, the company served the European, African, Asian, Middle Eastern, and Australian markets. As the Nano's expected launch date neared, Tata Motors was experiencing a downturn in its stock pricefrom USD18.60 per share in September 2007 to USD9.53 in September 2008, a drop of almost 50%. India's Automobile Industry The automobile industry in India benefited significantly from liberalization in the 1990s when the government eased regulations on foreign trade and restrictions on private companies. International companies took advantage of India's affordable yet highly trained engineers, establishing manufacturing operations throughout the country. In 2005, experts predicted that India would become the world's third-largest economy by 2020. In 2005-06, India was among the largest and fastest-growing car markets in the world. The passenger car market was growing by almost 25% per year, and passenger-vehicle exports were growing by 12.7% annually. India's exports, which went mainly to Asia and Africa, were growing at a rate approaching 30% annually and had already reached 850,000 units in 2005-06, compared with 600,000 units in 2004-05. Some years saw as much as 65% growth in exports. According to http://www.knowIndia.net, India exported \"331,539 passenger cars, and over one million two-wheelers.\" 2 1 Economy cars Indian car buyers already had their choice of cars in the USD5,000 (INR195,000) market; Maruti commanded more than 50% of that market share. Estimates of automobile ownership in India ranged from 8 to 25 per 1,000 people, placing India at the low end of global per-capita automobile rankings (Table 1). Table 1. Number of motor vehicles per 1,000 people, by country. Source: United Nations World Statistics Pocketbook and Statistical Yearbook, 2007. With a population of 1.1 billion, \"a median age of just under 25, and a rapidly expanding middle class, India will overtake China next year as the fastest-growing car market, according to estimates by CSM Worldwide, an auto industry forecasting service,\" the International Herald Tribune reported. Figure 1 depicts sales trends in the Indian automobile and motorbike market. Figure 1. Sales trends of automobiles and motorbikes in India, 2002-08. 2 Data source: \"Industry Trends of Automobiles,\" Corporate India, May 15, 2008. There were six major players in India's passenger-vehicle segment (Table 2). Table 2. Major players in India's passenger-vehicle market, percentage of market share, number of dealers, and sales per dealer, 2008. NA = Not available Note: Dealer comparison numbers are approximate. Data sources: http://Automobileindia.com (accessed August 10, 2008) and Emkay Research. Cars were sold via dealer networks, and sales volume depended both on the extent of the network and the sales per dealer (Table 2). According to a J.D. Power and Associates study of the Asia Pacific market, Tata's dealer margins across the various models ranged from 4% to 10%. Another study, by A.T. Kearney, estimated the profit margin of ultra-low-cost cars at 2% to 3% about USD75 for the USD 2,500 Tata Nano. Dealers received further discounts if they paid cash up front to Tataamounting to about 1% of the full dealer cost. Although Tata Motors did not disclose its contribution margins, the case writers' estimate is about 1 15%. Used cars In the months leading up to the Nano's highly touted launch, used car sales in India had fallen considerably. The price of a used Maruti 800arguably the Nano's closest competitor fell 30%, Autoblog reported. \"Indian car buyers apparently are not dumb,\" the article stated. \"Why buy a new or used car today when you can wait until the end of the year and get a new Tata Nano for much less?\" 2 Two- and three-wheelers In 2007, India's two-wheeler market was the second-largest globally, with almost eight million in total units sold (Figure 1). By 2011, two-wheeler production was forecast to approach 18 million units. A typical motorbike cost about INR37,000 (one-third the cost of a Nano). Manufacturers included Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor, and Kinetic. Table 3 shows the types of vehicles in this class and their fuel efficiency, cost, and top speed. Table 3. Types of two-wheelers available in India. 3 Source: Created by case writer. Bajaj Auto also dominated the market for passenger-carrying threewheelers, commonly called \"auto rickshaws.\" Often used for transporting small cargo loads, these vehicles had earlier faced competition from the Tata Ace, as well as from Piaggio's Ape Truk, a four-wheeled cargo carrier. Just months before the Nano's launch, rickshaw drivers had begun filing petitions through their union requesting that they be allowed to drive the Nano under their existing three-wheeler permits. Even if Nano manages to convert 10% of the two-wheeler market of about seven million, it will have almost 50% share of the car market [Figure 1]. Nano may lead to a 20% reduction in prices of two-wheelers and a 35% decline in prices of secondhand cars, according to industry chamber ASSOCHAM. Aman Verma, a Hero Honda showroom manager in East Delhi, expected two-wheeler sales to remain strong. \"Nano may give a lot of people a chance to own a car,\" Verma said. \"But more than fixed price, it's the variable cost of maintenance, fuel, and spare parts, where the two-wheeler sector has an edge.\" \"A car is much more suitable, safer, and a comfortable option than a two-wheeler, but in a cost-conscious nation like India, there will always be a place for a two-wheeler,\" said another two-wheeler dealer. \"There will not be a large-scale migration to the Nano. Both the bike and the entry-level car segment would have its own niche customers in future.\" 4 The Tata Nano Nano is expected to change the automobile market in India. It would cater to a typical middle-income Indian family of four who wants to avoid rain, wind, and dust ... It's freedom for four. Dilip Chenoy, Society of India Automobile Manufacturers What must you forgo for USD2,500? Air-conditioning. Power steering. Power windows. A tachometer. Dual windshield wipers. But the cost savings in creating a USD2,500 car did not result only from such omissions. Rather, Tata sought the bulk of its cost savings in a streamlined modular design in which many components served more than one function. Perhaps most notably, the car's component parts could be built at separate facilities and shipped for local manufacture. Even village garages could assemble it, creating a unique distribution channel for rural areas. In that way, the Nano was a kit car, said Tata Group Chairman Ratan Tata: A bunch of entrepreneurs could establish an assembly operation, and Tata Motors would train their people, would oversee their quality assurance, and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter, and would be assigned to a set of customers. At the start of the launch, Tata expected that its new 1,500-crore plant at Singur in West Bengal would handle the bulk of the manufacturing; but construction was put on hold after significant protest from area farmers whose land the government had appropriated for the project without compensation. In response, Tata elected to shift production to another facility, and to reduce its initial run from 40,000 to 10,000 cars per month during the first few months of production. Between 2003, when development began, and mid-2008, the cost of raw materials to assemble the Nano had risen from 13% to 23% of retail selling price, compared with a 7% cost for the average U.S. automobile. Even before this cost spike, however, the company had planned to use reverse auctions to lower parts costs. It set a rejection rate of less than 100 parts per million and expected to reduce warranty costs tenfold. (Note: Automobile margins were typically 10% to 15% on spare parts for dealers and 20% to 25% for Tata Motors; for normal servicing, the dealer margin was about 4% to 10%). In all, 90% of the Nano's components were outsourced, and about 75% were single-sourced. Tata engaged 100 subcontractors, signing them to long-term volume contracts rather than annual contracts. Half these vendors were to be co-located in a 5 6 7 manufacturing park adjacent to Tata's Singur plantoccupying a portion of the 950-acre property the government had made available to the cooperative enterprise. Critics questioned whether the low price meant the vehicle was of low quality. But one Tata vendor credited the company with designing from scratch, saying it precluded \"dumbing down\" the engineering: \"There are so many legacy costs built into a design, and trying to engineer those out is difficult. It's better to start with a clean sheet of paper and engineer low costs in.\" Tata's original plan was to produce 350,000 Nanos the first year; it had plans to set up three additional plants to achieve its goal of selling one million units annually. 8 Competitive Response \"Small cars have always been popular in India, even when oil prices were low,\" said automobile industry analyst Ashvin Chotai. Indeed, previous low-cost, high-efficiency car launches had met with success: The Indian government had collaborated with Japanese auto giant Suzuki Motor Corporation to release the mini Maruti 800 in the 1980s; in 2008, at the time of the Nano's release, the Maruti 800 retailed at USD5,000. Hyundai and Suzuki each manufactured up to one million subcompact cars in India in 2007, and they had plans to expand. Renault, Nissan, and Bajaj Auto were already exploring whether a USD3,000 automobile was possible. But Maruti was in no rush to reach lower than its Maruti 800 at USD5,000. \"Our thinking is that a consumer who is looking to buy a Maruti 800 or Maruti Alto will never settle for the Tata car because of the difference in value propositions that the respective cars offer,\" said Maruti Suzuki India Ltd. Managing Director Shinzo Nakanishi. \"In any case, the impact of the car will be felt more in the two-wheeler segment, and every Tata 1 lakh owner will be a potential buyer of our cars.\" \"India is a growing economy and so people will buy cars,\" said Krish Krishnan, who managed a green investment firm called Green Ventures. \"It is a good thing that they will perhaps be buying 9 10 a smaller car which is complying with more stringent norms rather than a much larger car or a two-wheeler that follows less stringent norms.\" 11 Tata Dealer Response In spring 2008, Tata dealers expressed excitement about the Nano, saying many customers had already inquired about it. One dealer characterized the market as middle-class families and college students. \"Almost 50% of college-going students go for a bike,\" he said, \"which costs around a minimum of 40,000 to 50,000 rupees, and they don't worry to shell out 50,000 more if they are getting a more comfortable, safe, and spacious journey. Families would no doubt feel the same way.\" Although two-wheelers offered twice as many miles to the gallon, \"safety and comfort are the key words that Tata Nano assures, which is the driving force for the success of this car.\" Another dealer cited the car's attractive design as a selling point: \"The car has great looks and is cute, which is very much appealing to middle-class families and students.\" Still, he conceded that price was the Nano's chief appeal. \"Pricing the car that low is the biggest plus point, and I don't think any [other] car company in the world can perform such a feat of low cost and efficient use of labor and raw materials.\" In response to criticism that that Tata's overall sales-satisfaction index ranked the company below the industry average, Tata dealers mentioned that they were going to increase the number of service stations and outlets in few months and concentrate on this aspect keenly. The Nano would also be a viable alternative to a used car, some dealers said. \"As it is,\" said a Karol Bagh dealer of used Marutis, \"there are no buyers for the 95-96 model. They sell for just [INR]25,000 and [are] mostly picked up by scrap dealers.\" \"Nano could surely put a dent in the secondhand car market for even newer models,\" said another dealer. 12 Where the Rubber Meets the Road Would India's growing middle class see the Nano as the optimal transportation solution? According to a research report by the Credit Rating and Information Services of India Ltd., the Nano could expand the number of households that could afford a car by 65%. \"The on-road price for a Nano is expected to be in the region of [INR]1.3 lakh. This brings down the cost of ownership of an entry-level car in India by 30%, making a new car affordable to families with income level of [INR]2 lakh,\" the report stated. As the Tata Nano began to hit the streets, so did newspaper articles and editorials decrying the \"people's car\" as an environmental \"nightmare.\" \"When you lower the price that drastically, how will you be able to meet safety and emissions standards?\" asked Anumita Roy Choudhury of the Centre for Science and Environment in New Delhi. \"It's just not sustainable, whether from an environmental point of view or in terms of congestion.\" In the New York Times, author Thomas Friedman pleaded with India to address public transportation issues rather than replicating U.S. traffic and pollution woes: If [India] applied itself to green mass-transit solutions for countries with exploding middle classes, it would be a gift for itself and the world. To do that it must leapfrog ... It will also be an India that gives us cheap answers to big problemsrather than cheap copies of our worst habits. Still, customers flocked to Tata dealerships, eager to see the latest model. \"I would definitely consider buying the Nano as the cost of the car fits my pocket,\" said one consumer, an IT professional with a multinational corporation in Gurgaon who travels every day in a Bajaj Pulsar. \"And above all it gives good mileage.\" 13 14 they really like or want (e.g., a cool laptop) or that they expect to be of high quality (e.g., a great restaurant) or that is important to them (e.g., health care for their parents). \"Marketing satisfies a consumer's needs & wants, and creates more!\" Consider the implications for loyalty programs. The marketer can create such programs regardless of the level of customer engagement, but they'd take different forms, e.g., price discounts for lowinvolvement purchases vs. brand communities and events for high-involvement products and brands. Customer satisfaction can be fine for low-involvement purchases, but customers won't generate word of mouth; they don't care enough. In contrast, for high-involvement purchases, strong followers and satisfied customers can be zealots and brand ambassadors. Consider the implications for channels of distribution. Low-involvement products need to be widely available so that the customer can pick them up without thinking. High-involvement products will be sought out by more customer activity. Finally, consider the implications for promotions. For low-involvement products, the marketer just hopes to cut through the noise and cluttergetting customers' attention only long enough to register the brand name in the mind of the customer for sheer familiarity. With high-involvement purchases, customers are hungry for information, and marketers can provide much more. So how do customers learn about brands and make choices? In the rest of the chapter, we'll look at how customers think and how marketing can have an impact on their decisions and choices. 2-3 THE MARKETING SCIENCE OF CUSTOMER BEHAVIOR Consumers are human beings and, as such, are sometimes simple and predictable, but often rather complex. In this section, we'll delve into consumer psychology, examining sensation and perception, learning and memory, motivation, attitudes, and decision making. 2-3a Sensation and Perception When marketers formulate positioning statements or produce perceptual maps, they presuppose a complicated system through which consumers sense and perceive their environment. An enormous wave of sensory stimulation washes over and through us every day. We are selective in our attention, choosing to consider certain stimuli and effectively screening out others. For example, if we are in the market for a laptop, we'll watch ads for them. If we're not in the market, we barely notice the ads. We know that consumer involvement creates a state of heightened motivation to learn more about a purchase or to pay attention to advertisement. The human organism is very efficient at adapting to the multitude of stimuli, helping us focus and block out what we deem to be irrelevant. Let's consider how marketers can use information through each of the senses. Visual stimuli are obviously important to marketers. Ads show products, product design, print information, imagery visualization to facilitate desirable lifestyles, etc. Even simple colors imbue brand associations and can be integral to some brand identities: >> Mouthwash packaging is dominated by whites, blues, and greens, implying freshness, cleanliness, water, etc. >> Skype's skyblue and white says, \"We talk through air!\" >> Yahoo!'s purple says, \"We're different!\" If consumers understand colors, marketers can use that information. For example, when the iPod was launched, all headphones in the market were big and bulky, but, more to the point, black or silver. Recall the splash that Apple's ads made by showing people in black silhouette with the product and ear pods brightly contrasted in white. A choice of a unique color adds to the buzz of the brand's distinctiveness. Colors also come to convey cultural meaning. In the U.S., brides wear white because it symbolizes purity (like newly fallen snow). In India, red conveys purity. In the U.S., red conveys danger and passion; a bride in red would be ... unusual. Even within Western civilizations, there are differences: blue represents femininity in Belgium and the Netherlands and masculinity in Sweden and the U.S. (So, now, how do we package razors, deodorant?) There are a zillion colors and many cultures. Imagine the challenge for a brand manager in selecting packaging or logo designs for global multinational brands. Hearing is also important to marketers. Research shows that when retailers play background music that is energetic, PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. with a quick tempo, customers spend more. There are other aural brand associations: >> T-Mobile vs. AT&T ringtones >> Fancy Feast television commercials feature a highpitched ding, ding (a fork clinking against fine crystal) to imply that the food is extra special (and therefore worth its higher price) Car and motorcycle enthusiasts know that manufacturers are meticulous in delivering distinctive sounds, and, as a result, consumers have come to learn the sounds, expect them, and pay for them. A high-end Honda motorcycle runs about mid-$20k, whereas a Harley-Davidson runs in the high $30k. Obviously, the sound is not the only difference between the two bikes, but if the Harley didn't sound like a Harley, a biker won't fork over the extra $15k. Similarly, a Porsche 911 turbo at $150k is no clunker, but Ferrari's engineers create a symphony of car sounds and charge $250k. Again, even acknowledging other differences, sound is nevertheless a part of the purchase decision. A third sense is smell. Think of how many times you've walked through a shopping mall and felt carried away on the wafting scent of a Cinnabon store in the food court. Samples of new perfumes are inserted into magazines, and women who work the cosmetic counters in department stores ask to spray you. Scent is featured in ads for cleaning productsthings that make our houses smell fresh or lemony. Old Spice even declares it in its new ad lines: Smell Is Power! \"Subliminal doesn't work. Or does it, does it, does it?\" A fourth sense is taste. A classic marketing exercise is to run blind taste tests in order to declare that one's own product is superior to the market leader. These tests can be dramatic and compelling. They are also interesting to marketers because they clearly distinguish the power of the brand from the product itself. For example, most people swear they can identify a Pepsi vs. a Coke, and yet many people actually cannot. Try it on your friends. Ferrari fine-tunes its cars to sound as good as they look. Max Earey/Shutterstock.com A fifth sense is touch. The predominant means of conveying brand imagery through touch is when marketers create well-designed products, compared to products intended to be positioned for value. Design can mean good ergonomics, as in good kitchen knives, wrist-friendly mice or keyboards, good chairs, etc. Design can also mean clean lines, simplicity, and beauty, such as the products that Apple continues to create. Finally, design can also certainly mean a sensual experience, like leather interior options in cars, compared to their less expensive, less touchable alternatives. Brand Names Research by marketing linguists tells us that some brand names are better for certain products simply because of how they are pronounced: A sound like a long e is reminiscent of the sound that small animals make, such as a mouse or a little bird (ee-ee or cheep-cheep). Hence, products that are positioned as small and quick should have names with similar sounds: Beetle, Miata, Neon. In contrast, vowel sounds like short o sound slow, large, heavy (e.g., an ox, a cow). Accordingly, larger, more powerful products should have sounds that convey their heft: Durango, Bronco, etc.; see research by Professor Eric Yorkston (TCU). Brand names (even hypothetical ones) that have some repetition in them (sepsop or temasema) are more appealing than those that don't (sepfut or temafanu); see research by Professors Jennifer Argo (U Alberta) and Malcolm Smith (U Manitoba). Finally, a discussion about sensation and perception wouldn't be complete without mention of socalled subliminal advertising. The idea is that an ad can be shown very quickly, on TV or in the movies, so that it doesn't quite meet the threshold of liminal recognition and consciousness, and therefore it is said to be subliminal. Yet somehow the vision is captured subconsciously, and marketers hope the message will compel action (e.g., buy more popcorn). Print ads depend not on brief time exposure but on PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. ambiguity. If you think companies don't do this anymore, take a look at the logo for the Chicago White Sox baseball team (at whitesox.com) in Figure 2.3. Does it spell Sox or sex? FIGURE 2.3 Chicago White Sox Logo Staff/MCT/Newscom While marketers have debunked the notion that subliminal advertising works, they nevertheless conduct a great deal of research in areas called \"mere exposure\" and \"perceptual fluency.\" Neither of these effects is subliminal, per se, but they share a certain subtlety. For example, mere exposure, as its name suggests, says that, though you might not think the billboard you drive past every day is having a persuasive effect on you, it is. Marketers know that repeated exposures to a brand name or an ad bring familiarity, and with familiarity comes a comfortable, positive feeling. Thus, brands advertised on billboards are familiar and would probably rate fairly positively. Perceptual fluency is also a subtle phenomenon. When consumers thumb through a magazine or click through websites, they are probably paying most of their attention to the content of the message. However, other information is being expressed. Colors and fonts can make a message seem more professional, more emotional, more contemporary, more gothic. Those cues make an impression as well. The cues are liminal but subtle, and they are part of the brand. 2-3b Learning and Memory All those sensory and perceptual impressions can become brand associations. To say that consumers have brand associations means that, in their memory, they have stored certain attributes attached to the brand. When the brand is mentioned, those associations are brought to mind. Learning is the process by which associations get past the sensory and perception stages into short-term memory and then, with repetition and elaboration, into long-term memory. There are several theories about learning, but two are so fundamental and pervasive that every marketer should know them. The first way that people learn is through classical conditioning. This type of learning is so well known and integrated into our culture that most people have heard of the demonstrations by Ivan Pavlov on his salivating dogs. The learning goes through stages: >> >> >> >> Stage 1: A food bowl placed in front of a dog naturally elicits its drool. Stage 2: A bell rung in front of the dog initially elicits no response. Stage 3: A bell rung while a food bowl is simultaneously placed in front of the dog elicits drool. Stage 4: With time, bell rung in front of the dog elicits drool. The dog has come to learn that the bell is associated with food. Perhaps you're thinking, \"But that's just a dog.\" Indeed. However, consider Figure 2.4. It's common to hear that \"sex sells,\" but why or how does it work? The process is this: FIGURE 2.4 Sex Sells due to Classical Conditioning Richard Levine/Alamy PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. >> >> >> >> Stage 1: A babe (male or female) elicits drool. Stage 2: A car or other product initially elicits no response. Stage 3: A car with a babe draped over it elicits drool. Stage 4: With time, a car elicits drool. That might sound a little far-fetched, but that's the learning process. Consider more neutral stimuli, such as the logos for Honda, Acura, and Hyundai in Figure 2.5. At their introduction, these abstract symbols convey no information and function much like the bell in Pavlov's lab. With time, while logos might not elicit drool, consumers come to learn and associate these fairly similar looking symbols with their unique car brands. It's also worth noting, in this ever changing world, that sometimes companies want to shed negative associations, and they change their names and logos to do so. For example, in recent years, Blackwater became Xe, Philip Morris became Altria, ValuJet became AirTran, and Andersen Consulting became Accenture. The hope is that the slate has been wiped clean, so that fresh associations might become attached to the new company names and logos. FIGURE 2.5 Logos Gain Meaning through Classical Conditioning STAN HONDA/Staff/AFP/Getty Images/ Bloomberg/Getty Images/ michael anhaeuser/Art of Focus/Alamy Limited A fun use of classical conditioning is jingles. It takes only a few exposures before people learn the catchy lyrics. Consider these jingles; it's hard to resist finishing them, and it's hard to stop thinking about them: >> >> >> >> Dr. Pepper: \"Wouldn't you like to be a Pepper too?\" Oscar Mayer: \"My bologna has a first name ...\" U.S. Army: \"Be all that you can be!\" Campbell's soup: \"M'mm good!\" >> Coca-Cola: \"I'd like to buy the world a Coke ...\" And the master of all jingles: >> Two all-beef patties ... The second way that people learn is through operant conditioning. This type of learning is also so well known that most people have heard of Skinner boxes. B. F. Skinner studied pigeons pecking at a target, or rats pressing a bar, to receive food pellets. The pigeon learns the desired behavior by being rewarded. The behavior is said to be positively reinforced. Skinner boxes are programmed to reward the pigeon every time it pecks, or only after every fourth peck, or only at 20 minutes after the hour, etc. When the bird is rewarded every time or every fourth time, the reinforcement schedule is said to be on a fixed ratio reinforcement schedule. When the bird is rewarded on average every fourth time (so perhaps after two pecks, then after six pecks, then after four, etc.), the reinforcement schedule is said to be on a variable ratio. This difference matters because the unpredictability of the variability drives the birds (and humans) a little nuts. In the same amount of time, say, 30 minutes, the bird will peck a lot more on the variable, rather than on the fixed, ratio schedule. So what? Well, consider loyalty programs. Marketers reward consumers who carry their loyalty cards by giving them every 10th coffee free, for example. If marketers want their consumers to purchase even more frequently and ring up more sales, they would design a variable ratio reinforcement program. Each coffee card could have a scratch-off number indicating that the customer would receive a free coffee after, say, seven coffees. The next card might say 5 or 15, etc. With current programs, the customer's behavior is very predictable. With a variable program, the customer would be excited about the seven because it means a free coffee is coming much faster than after 10. Even when they scratch off and get a higher number, like 15, they'll still recall that they have had smaller numbers in the past. So the sooner they get to 15 and redeem this card, the sooner they'll get another card, perhaps with a smaller number. There are also reinforcement schedules based on duration lapses, but these are not implemented in marketing as frequently. One famous exception, however, is the policy PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. by Southwest Airlines that allows passengers to obtain their boarding pass classification 24 hours prior to the flight, but no sooner. Passengers who wait too long get less desirable status, so many fliers find themselves poised over their keyboard to press the right letters at just the right time. Keyboard pressing is not that different from pigeons pecking. Eenie, Meanie, Jelly Beanie In their article, \"Active Choice: A Method to Motivate Behavior Change,\" Professors Punam Keller and Bari Harlam studied different kinds of so-called opting behaviors: 1. Opt-in: Check this box if you wish a reminder to ... 2. Opt-out: Check this box if you do not wish a reminder to ... Options 1 and 2 did okay, but the setup that was much more effective was: 3. Check one: I will remind myself to ... vs. Yes, please send me a reminder to ... Getting reminders is very important to engaging in a variety of behaviors, such as getting flu shots, signing an organ donation card, or enrolling in a company's 401k program. As any student knows, a big factor in learning and memory is motivation. Thus, we consider it next. 2-3c Motivation Figure 2.6 depicts psychologist Abraham Maslow's hierarchy of needs. We have to meet basic needs have food on the table and a roof overheadbefore we think about buying nice clothes. Once we have met our basic needs, we are driven by more abstract motivations, such as love and esteem, qualities that begin to define humanity. At the peak of this pyramid is the phrase, self-actualization, an achievement of our ideal self, with no needs, no excessive wants, no jealousies, etc. One way that marketers use this hierarchy is by identifying their product with a certain level of needs. They use imagery to appeal to those motivations. For example, the VW crash ads appeal to our need for safety. Similarly, the entire Volvo brand is positioned for safety. Beyond cars, other examples involve different kinds of security. For example, in B2B, they used to say, \"You won't get fired for buying IBM.\" Even though IBM was often the most expensive choice, buyers knew that the quality would be good, so any risk-averse buyer would feel security in having chosen a good brand. Many of us are fortunate enough that our simpler needs are met, so a great number of brands are positioned to heighten a consumer's sense of belonging or, at the next level, social acceptance and respect. Belonging can be signaled by explicitly affiliative products, such as team logos, or by conspicuously branded products, as in certain men's athletic shoes or women's handbags. Belonging can also be more subtle; many ads appeal to a person's concern with fitting in with the norm. For example, when you start a new job, are you wearing the right clothing? If all your friends drive a hybrid, will they accept you and your SUV? And so on. At the higher level, the acceptance, by self (esteem) and others (respect) is often signaled by marketers by pointing a consumer to an aspiration group. You might be a business school student right now, but ads will show you the clothes, restaurants, and cars that the most successful CEOs wear, dine in, and drive. The implication is that you should begin to shape your preferences accordingly so that, when you achieve that CEO status, your purchases will exhibit good taste. Another way that marketers have used this hierarchy is to offer an extended brand line that encourages a customer to reach ever higher in the pyramid. For example, Mercedes makes their entrylevel C-Class for the driver who wants the brand but cannot afford much. Mercedes hopes that drivers will like the C-Class and, when they're ready, trade it in for an E-, then S-, then CL-Class. This product range is a simple manifestation of customer relationship management. FIGURE 2.6 Maslow's Hierarchy of Needs Cengage Learning PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Yet another way that the hierarchy is used is when brand managers think about positioning their brands as high in the pyramid as possible. Walmart may make basic sneakers that satisfy simple needs at the bottom of the hierarchy. However, well-made trainers affiliated with strong brand equity can charge more, not just because the product may be somewhat better but because the consumer wants to believe that the shoes will make them betterbetter athletes, more fit, more attractive, better people. The basic Walmart sneaker probably can't be positioned too high in the pyramid, but it would behoove any other sneaker maker to strive for imagery as high in the hierarchy as possible. Beyond the Maslow pyramid, there are other ways to distinguish needs and motivations. Many consumer psychologists speak of utilitarian vs. hedonic products, fulfilling needs and wants. A consumer might need a new interviewing suit but want the Armani threads. Consumer psychologists also point to the motives that coexist in all of us, for conformity vs. individuality. Sometimes one need is more salient than another throughout a person's life, or, depending on the situation, one motivation may flare stronger than another. If conformity is winning, the consumer buys a popular brand; if individuality is more important, then the consumer finds an atypical, quirky brand. Luckily, in most product categories, there are large brand assortments; hence, either need may usually be satisfied. A final means of distinguishing consumer motivations is whether they are risk seeking or risk averse. In some product categories, consumers may be avid customers, very knowledgeable, opinion leaders, and ready to try the newest that the market has to offer (the latest music, fashion, etc.). In other product categories, those same persons may be more risk averse for a variety of reasons, including caring less about the category or not having the expertise to make choices confidently. For these purchases, the consumers would be more conservative, trying to prevent a bad purchase, rather than promoting the hopes of a good purchase. 2-3d Attitudes and Decision Making Marketers want to understand how consumers think and what motivates them so that they might persuade the consumers to have positive regard for a particular brand and see it as superior to all others, at least for their needs. Attitudes and decision making affect the extent to which consumers will buy a brand, repeatedly purchase it, become loyal, and recommend it to others. If we're really lucky, our brand fans will prefer our brand so much that they'd even be price insensitive if we had to, or wished to, raise prices. So if we seek to enhance attitudes about brands and encourage particular brand choices, let's begin with two questions: What are attitudes? What does the decision-making process look like? Attitudes are conceptualized as a mix of beliefs and importance weights. Beliefs are opinions, such as BMWs are fast, they're nice to look at, they're expensive, etc. Importance weights are things like \"I don't care much about whether my car is fast, but I would like it to be attractive\" or \"I care about the cost.\" People can differ on PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. both their beliefs and importance weights. Some people might say that BMWs aren't that attractive or expensive relative to other cars. Some people might not care how much a car costs but care very much about speed. Consumers and Emotions Recently, marketers have begun paying greater attention to the role of emotions in consumer behavior. Emotions help explain phenomena like brand communities and brand zealotsthese are people whose admiration for their favorite brand goes beyond a cognitive comparison of utilities. But understanding emotions turns out to help marketers understand even less extreme consumer behavior. For example, imagine a tax attorney has just spoken rudely to a client. How will that consumer respond? Typically, consumers expect that service providers will be polite, so this client is likely to conclude the attorney is unpleasant, so the client may become upset. Alternatively, imagine a different scenario in which the tax attorney had (politely) pointed out that the client had underpaid and therefore owes taxes. The client's reaction is likely to be one of embarrassment and concern. In both circumstances, the client is experiencing a negative emotion, but the emotions themselves are different, and the thought processes contributing to the emotions were different, and all of these differences have implications for effective service delivery. In the first scenario, steps toward service recovery are appropriate, beginning with an apology. In the second scenario, the service provider can offer guidance as to the problem's resolution, and plans to avoid the problem in the future. These examples illustrate how consumers' cognitive and affective processing are inextricably linked. Compared to human decision making and purchasing. It's comprised of very few components: wind, water, dirt particles, gravity, temperature. Yet the best we tend to say is, \"Tomorrow's weather will look something like today's.\" Similarly, we make the fewest marketing forecast mistakes if we say, \"You'll buy the same brand of toothpaste this time as you did last time.\" Consider the factors that enter into a toothpaste purchase: What did mom buy? What's on sale? What flavor do I like? Do I need a small tube for travel or a big tube for home? Do I want a whitener? Are my teeth sensitive? Do I want to try something new? Do I have a coupon? Am I buying this for myself or someone else? Do I need floss because that brand is bundled with a container of floss? It's complicated! Yet marketers have sophisticated research techniques to enhance predictions and answers to questions such as whether this customer is likely to be a brand switcher, sensitive to a price discount, affected by recent advertising, etc. Methods to gather information from customers are discussed throughout this book and in particular are concentrated in Ch. 15 on marketing research. Importance weights are like the concept of customer involvement. It is an important truism in marketing, with its natural implications, that, in any purchase category, customers can be classified according to how much they care about the given purchase. For the things consumers care about, they spend more time learning about the options and brands, and they're usually willing to pay more for excellence. For the things consumers care less about, they spend less time investigating, and it's likely that they won't want to pay much. The job of marketers is to play with both components of attitudesbeliefs and importance weights. Marketers seek to make the beliefs in an attribute or benefit more positive and to make the attributes on which the brand is dominant seem even more important. The beliefs and importance weights are modified or strengthened through learning and memory and by appealing to consumer motivations that the brand purportedly satisfies. Attitudes contribute to decision making and brand choice. In some product categories, there aren't that many choices, so brands can be compared fairly readily. In categories with a lot of choices, consumers usually proceed through two stages. In the first, quick stage, they decide which brands should be considered in more detail vs. those that don't make the cut to be in the consideration set. The second stage is relatively prolonged, during which consumers compare the brands in the set to make a purchase choice. The first stage is thought to be conducted quickly by noncompensatory mechanisms. \"Noncompensatory\" means that some attributes are very important. If the brand has them, then it may be considered further; otherwise, the brand is precluded. Even if the brand excels at something else, that other excellent attribute does not compensate for the lack of the first, important quality. An example of this approach is called \"lexicographic\"; the idea is that a customer would compare all the possible brands along the attribute or dimension that is most important (e.g., quality, price, size, etc.). Whichever brands make the cut on this first dimension continue to be considered. That subset of brands is compared on the next most important attribute and so on until the set is reduced to only a few brands. Once the consideration set has been reduced to a manageable number, consumers switch gears and use a compensatory model. This model uses a costs and benefits logic, whereby excellence on one attribute can make up for the fact that the brand is not so great in some other ways. One such model is that of averages; e.g., if a brand is strong on attribute A and only so-so on B, it may dominate a brand that is average on both attributes A and B. A lot of online sites allow consumers to select from a number of brands or models to enable a sideby-side comparisons. This information sorting helps consumers see which brands are best on the attributes they care most about. The algorithms request that consumers first select the brands to be compared. This stage mimics the noncompensatory stage in reducing the number of possible brands to a more manageable number for further consideration. The online comparators facilitate the second, compensatory stage, in that the attributes are lined up for easy viewing. A brand choice is made, and the decision process is completed. 2-3e How Do Cultural Differences Affect Consumers' Behavior? In addition to individual differences in how consumers respond to ads and brands, there are also predictable sociocultural effects. We'll consider two examples: social class and age. In the U.S., we might not wish to acknowledge that social class matters, but in many ways it does, and it certainly does for the marketer. Some societies have clear class distinctions, but gradations in socioeconomic standing are discernible even in relatively classless societies. People tend to be more comfortable with others in comparable standing, and they tend to marry others who are approximately their equals. Social class is a construct that is more complicated than just economic access to resources. Income is important, but so is family background (e.g., old money vs. nouveau riche) and career paths (e.g., some allowance for social mobility). Old-monied people seek exclusivity in their brands, to affirm their special standing in society. They are alarmed by the mass-class movement, in which designers of high-end luxury goods produce far less expensive lines (albeit not of the same quality) to allow access by us peasants. In contrast, nouveaus try to make purchases to attain their status, the purchases being the so-called status PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. symbols. They indulge in conspicuous consumption, e.g., buying goods with garish, loud branding that shows the world they've made it. Obviously, designing products, brands, and marketing communications for these two different groups calls for different approaches. Consumers Online It turns out that www actually stands for \"what will we [buy now]?\" U.S. online retail is about $250b, almost 10% of which is through our smartphones and another 10% through social media networks. Daily deals are only 1% but they're growing rapidly. Euro e-sales are at $210b, Brazil is $16b, India is at $60b, and China? $710b. From the start, we've bought online primarily for convenience, access to a broader assortment, and the easier ability to make price comparisons. In addition, these days, we're also reading product reviews and ratings and searching for coupons. How do cultural differences affect consumers' behavior? Kumar Sriskandan/Alamy Age cohorts also produce reliable, predictable shopping patterns. Some patterns are obvious, following the household composition and income availability. Young people first buy furniture and kitchenware, entertainment and travel, and large screen TVs. They proceed to the stage of buying diapers and toys and minivans. Soon there is college to pay for, then maybe travel, and, soon, health care. (Gee, that was depressing.) Age groups are particularly important when they are large in size. The infamous baby boomer group is graying and beginning to retire. Older people are traditionally ignored by advertisers who like to feature youth, but the deep wallets of baby boomers will soon force companies to pay attention. Cruises will sell, whereas sophomoric movie comedies might decline. The baby boomer generation was always societal minded, so we might expect to see large-scale altruism and record levels of infusions of resources into nonprofits. In an odd contradiction, this generation was also dubbed \"the me generation,\" and indeed sales of Viagra and cosmetic surgeries have also begun inching upward. Social class and age cohort are among the various sociocultural factors that impinge on how buyers form impressions and preferences, collect information, form opinions, and make brand choices. Gender matters: Men and women are socialized differently, they think about products differently, and they shop differently. Finally, ethnicity and country culture provide different perspectives, and they can be very interesting (and complicated). We'll see examples throughout the book. Be forewarned: It is difficult to provide generalizations without devolving into stereotypes, so note there are always exceptions. To foreshadow a few observations now: >> Wealthy Chinese like their consumption conspicuous. Due to their purchases, Louis Vuitton has found its busy season has moved to late January and early February, just before Chinese New Year (from traditional 4th-quarter peaks, attributable to Christmas shopping). >> China is now second to Japan in buying luxury goods, to show-off personal wealth and in gift giving. >> European brands tend to dominate the high end, due not just to a perception or cultural heritage but also to structural industry differences, such as >> fine craftsmanship in watches built in Switzerland, >> fashion or exotic cars designed in Italy, or >> supply chains such as extensive fields of flowers or vineyards for perfumeries or vintners in France. >> Brazil's emerging middle class is buying up cell phones, HDTVs, small laptops MANAGERIAL RECAP Keep the buyer in mind, whether you deal with consumers or business customers. Marketing managers can be nimble and adaptive to industry changes if they have a basic understanding of consumer behavior3 >> There are three major phases of consumption: prepurchase, purchase, and postpurchase. >> There are three major classes of purchases: For B2C, these are called convenience, shopping, specialty; for B2B, these are called straight rebuy, modified rebuy, and new buy. The difference among the three has to do with customer involvement. >> How do consumers think? >> They begin with sensing and perceiving information, which may be learned and stored in memory. >> Motivations help marketers understand what consumers are seeking to satisfy with their purchases. >> Attitudes and decision making are subject to influence by good information as well as biases. >> Finally, social norms, such as generational preferences or choices based on wealth, define us as well. PRINTED BY: feliciandixon@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Sample Discussion Response From the case study, categorize the Nano's marketing segments that have the greatest influence on its sales. Assume you are the marketing manager at Tata responsible for consumer marketing. In your own words, outline a plan that Tata could implement in order to make the process to purchase the Nano more efficient for potential buyers. The NANO has been projected as a poor man's car. With prices almost less than the cheap cars on the Indian roads, the TATA NANO comes like a dream fulfilled for an average Indian household which dreams of owing a car. TATA should look at the mass of middle class income earners and should target the sale of the NANO towards this group. Together with the very affordable prices that the NANO is priced at, NANO should be looked at a family vehicle where people who previously used to travel by public transport now shift to travelling by NANO. From the scenario, analyze each level of Maslow's hierarchy of needs, and articulate the level, which most affects you when making a purchase. Provide support for your rationale by utilizing an example. While making the purchase the five needs of Maslow's hierarchy of needs the NANO comes at the lowest need called the physiological needs .along with hunger, thirst and many other basic needs, the need to have a car which is much within one's budget is what NANO is projected as .the car satisfies the bottom line of the needs hierarchy theory. Felicia, very excellent. It families who $2,500 Nano. good! Overall, your analysis and strategy are makes sense to target the college student, or have college-age students, who can afford the Think of my questions below as follow-on questions: In 2008, population in India was about 1.1 billion. Should the marketers advertise to attract the males or the females? Both genders had a positive literacy rate: over 50% even in 2001, according to the Indian Census. Should the advertisers target a specific religion? Among the 2800 religions reported to the government, there are six major ones. About 94% of the Indian population is either Hindu or Muslim. Should the advertisers focus on the Hindus or the Muslims? According to the 2001 Census, there are over 6,000 mother tongues; Hindi was identified as the predominant language of about 41% of the population. Should the advertisers communicate with their target market in Hindi or in English? In the 2001 Census, it was found that the work participation rate was 39.1%. Should the advertisers only focus on the Indian population that worked? Finally, should the advertisers focus only on the dense urban populations or both the urban and rural populations? In terms of Maslow's Hierarchy of Needs, I liked your selection of the safety need that customers have that the Tata Nano can satisfy. Would you also agree that, for the families that can afford it, the other needs being addressed would be the belonging need and the self-esteem need? Student's Response Marketers should advertise to attract both males and females with a high focus on males. The reason is that in developing countries like India the decisions pertaining to purchase of car are taken by male members of the family. The advertisers should focus on all the religions. Although Hindus and Muslims are about 94% of Indian population but the population of India is high at 1.1 billion and the remaining 6% comes near to 66 million. It will not be a wise decision not to target 66 million population. So the advertisers should focus on all the religions. The advertisers should communicate with their target market in Hindi as it is spoken only by 41% of population. Apart of it the advertisers should also advertise in other mother tongues that are used by other large sections of the society. Using English for advertising may lead to non-understanding of the advertising campaign as a large section of the population of country does not understands English. No, the advertisers should focus on the entire Indian population. As it is observed that around 50% of the populations of college-going students go for bikes and they are potential customers for Nano. So the advertisers should focus on the entire Indian population and should treat each segment as of population as potential customer. The advertisers should focus on both urban as well as rural population. Most of the India's population resides in rural areas so it is not wise to ignore rural segment of population. Emphasis should also be paid on rural population as real India lies in its rural areas. Yes, for the families that can afford Nano the other need to be addressed will be belonging need and self-esteem need because buying a car will fulfill the basic needs of customer. Felicia, very excellent. It families who $2,500 Nano. good! Overall, your analysis and strategy are makes sense to target the college student, or have college-age students, who can afford the Think of my questions below as follow-on questions: In 2008, population in India was about 1.1 billion. Should the marketers advertise to attract the males or the females? Both genders had a positive literacy rate: over 50% even in 2001, according to the Indian Census. Should the advertisers target a specific religion? Among the 2800 religions reported to the government, there are six major ones. About 94% of the Indian population is either Hindu or Muslim. Should the advertisers focus on the Hindus or the Muslims? According to the 2001 Census, there are over 6,000 mother tongues; Hindi was identified as the predominant language of about 41% of the population. Should the advertisers communicate with their target market in Hindi or in English? In the 2001 Census, it was found that the work participation rate was 39.1%. Should the advertisers only focus on the Indian population that worked? Finally, should the advertisers focus only on the dense urban populations or both the urban and rural populations? In terms of Maslow's Hierarchy of Needs, I liked your selection of the safety need that customers have that the Tata Nano can satisfy. Would you also agree that, for the families that can afford it, the other needs being addressed would be the belonging need and the self-esteem need? Student's Response Marketers should advertise to attract both males and females with a high focus on males. The reason is that in developing countries like India the decisions pertaining to purchase of car are taken by male members of the family. The advertisers should focus on all the religions. Although Hindus and Muslims are about 94% of Indian population but the population of India is high at 1.1 billion and the remaining 6% comes near to 66 million. It will not be a wise decision not to target 66 million population. So the advertisers should focus on all the religions. The advertisers should communicate with their target market in Hindi as it is spoken only by 41% of population. Apart of it the advertisers should also advertise in other mother tongues that are used by other large sections of the society. Using English for advertising may lead to non-understanding of the advertising campaign as a large section of the population of country does not understands English. No, the advertisers should focus on the entire Indian population. As it is observed that around 50% of the populations of college-going students go for bikes and they are potential customers for Nano. So the advertisers should focus on the entire Indian population and should treat each segment as of population as potential customer. The advertisers should focus on both urban as well as rural population. Most of the India's population resides in rural areas so it is not wise to ignore rural segment of population. Emphasis should also be paid on rural population as real India lies in its rural areas. Yes, for the families that can afford Nano the other need to be addressed will be belonging need and self-esteem need because buying a car will fulfill the basic needs of customer