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MAR ETING STRATEGY AND PROBLEM RECOGNITION Marketing managers have four concerns related to problem recognition.

First, they need to know the problems consumers are facing. Second, managers must know how to develop the marketing mix to solve consumers problems. Third, they occasionally want to cause consumers to recognize problems. Finally, there are times when managers desire to suppress problem recognition among consumers. The remainder of this chapter discusses these issues. Discovering Consumer Problems A wide variety of approaches are used to determine the problems consumers face. The most common approach undoubtedly is intuition; that is, a managers analyze a given product category and logically determine where improvements could be made. Both surveys and focus groups tend to take one of three approaches to problems identification: activity analysis, product analysis, or problem analysis. A fourth approach, human factors research, does not rely on surveys or focus groups. Emotion research, a fifth effort, attempts to dicover the role emotions play in problem recognition. Activity analysis: activity analysis focuses on particular activity such as preparing dinner, maintaining the lawn, or eating out. Product analysis : is similar to activity analysis bu examines the purchase or use of a particular product or brand. Problem analysis : problem analysis takes the opposite approach from thr previous tecniques. Human factors research : attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effect on these capabilities of lighting, temperature, and sound. Emotion research : marketers are just beginning to conduct research on the role of emotions in the decision process. Responding to Consumer Problems Once a customer problem is identified, the manager may structure the marketing mix to solve the problem. This can involve developing a new product or altering an existing one, modifying channels of distribution, changing pricing policy, or revising advertising strategy. Helping Consumers Recognize Problems There are accasions when the manager will want to cause problem recognition rather than react to it. Generic versus selective problem recognition, two basic approaches to causing problem recognition are generic problem recognition and selective problem recognition. These are analogous to the economic concepts of generic and selective demand. Generic Problem Recognition Is involves a discrepancy that a variety of brands within a product category can reduce. Generally, a firm will attempt to influence generic problem recognition when the problem is latent or of low importance and one of the following conditions exists: It is early in the product life cycle. The firm has a high percentage of the market. External search after problem recognition is apt to be limited. It is an industry wide cooperative effort. Selective Problem Recognition Is involves a discrepancy that only one brand can solve. The ad shown in illustration 14-6 is focused on creating selective problen recognition. Firm attempt to cause selective problem recognition to gain maintain market share, whereas increasing generic problem recognition generally results in an expansion of the total market. Approaches to Activating Problem Recognition How can a firm influence problem recognition? Recall that problem recognition is a funtion of the (1) importance and (2) magnitude of a discrepancy between the disired state and an

existing state. Many marketing efforts attempt to influence the desired state; that is, maeketers often advertise the benefits their product will provide, hoping that these benefits will become desired by customers. It is also possible to influence peceptions of the existing state throught advertisements. The Timing or Problem Recignition Consumers often recognize problems at times when purchasing a solution is difficult or impossible, as the following examples demonstrate: We decide we need snow chains caught in a blizzard. We become aware of a need for insurance after an accident. We desire a flower bed full of tulips in the spring but forgot to plant bulbs in the fall. We want cold medicine when we are sick but dont feel like driving to the store. In some instances, marketer attempt to help consumers solve such problems after they arise. Some companies, particularly insurance companies, attempt to initiate problem recognition throght mass media advertising; others rely more on point-of-purchase display and other instore influences. Suppressing Problem Recognition As we have seen, competition, consumer organizations, and govermental agencies accasionally introduce information in the marketplace that triggers problem recognition that particular marketers would prefer to avoid. Obviosly marketers do not want their current customers to recognize problem with their brands. Effective quality control and distribution (limited out-of-stock situations) are important in this effort. Packages and package insert that assure the consumers of the wisdom of their purchase are also common.

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