Marketing concepts

1) Let's start with three basic concepts we should differentiate:

Needs       à basic human requirements.
Wants      à needs become wants we they are directed to an specific object to satisfy a need
Demands à are wants for specific products baked by an ability to pay

2) Consumer psychology

• Motivation: a motive is a need that is sufficiently pressing to direct a person to seek satisfaction. It is crucial to talk about Maslow's hierarchy of needs, where need's order is given by how pressing it is as a human need. 

                                              

          

• Perception: is the precess by which people select, organize, and interpret information
• Learning : describes changes in an individual's behavior arising from experience.
• Memory: information and experiences individuals encounter as they go though life. 

  3) Product life cycle 

Products have a limited life, and sales go through different stages where profits rise an fall, and in every stage it is needed a different approach toward the product in what marketing is referred.

1. Introduction: The product has just been launched so there are few customers, and the sales are low
2. Growth: Customers and sales grow as the product is more integrated in the market.
3. Maturity: It is the best moment of the product, sales peak and profits raise, as well as rising number of customers, and lots of them are loyal. 
4. Decline: It is the ending of the lifetime of the product where sales are diminishing.

4) Pricing strategy

Price is a very important part of the product and brand marketing. Price is one element of the marketing mix.

Consumer psychology in pricing:

• Possible consumer references prices: the references they may take are internal (memory) or external (regular retail price)
• Price quality interferences: high prices are many times taken to mesure the quality of the product.
• Pricing endings: tests have shown that consumers tend to read the price from left to right so after the coma is not as seen as the whole number. ( 299$ instead of 300$)
• Pricing cues: the more the number 9 is used in pricing cues the less effective it is. ( prices end in 0 or 5 are effective)