Evoked Set

Examples of Evoked Set in the following topics:

• Evaluating Alternatives

  • The brands and products that consumers compare - their evoked set - represent the alternatives being considered by consumers during the problem-solving process.
  • Sometimes known as a consideration set, the evoked set tends to be small relative to the total number of options available.
  • In order for a marketing organization to increase the likelihood that their brand is part of the evoked set for many consumers, they need to understand what benefits consumers are seeking and specifically, which attributes will be most influential to their decision-making process.
  • The company also needs to check other brands of the customer's consideration set to prepare the right plan for its own brand.
  • Ultimately, consumers must be able to effectively assess the value of all the products or brands in their evoked set before they can move on to the next step of the decision process.

• Value-Based Pricing

  • Value-based pricing seeks to set prices primarily on the value perceived by customers rather than on the cost of the product or historical prices.
  • Value-based pricing sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices.
  • In many settings, gaining this understanding requires primary research.
  • The principal difficulty is that the willingness of the customer to pay a certain price differs between customers, between countries, even for the same customer in different settings (depending on his actual and present needs), so that a true value-based pricing at all times is impossible.
  • Although it would be nice to assume that a business has the freedom to set any price it chooses, this is not always the case.

• Terms Used to Describe Price

  • Dollar General is a general store or "five and dime" store that sets price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among others).
  • The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points.
  • For example, Dollar General is a general store or "five and dime" store that sets price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among others).
  • Other stores will have a policy of setting most of their prices ending in 99 cents or pence.

• Design and Feature Set

  • For example, the development of digital cameras would include defining the feature set; designing the optics, as well as the mechanical and ergonomic aspects of the packaging; developing the electronics that control the various components; and developing the software that allows users to view and manipulate photos, store them to memory, and download to them to a computer.
  • Nevertheless, introducing a bloated feature set can move the product or system beyond its initial goals, increasing production costs and schedule overruns.
  • Introducing too many requirements into a feature set has often been blamed for endangering and even killing products and projects.
  • To control the number of product features during the design phase, manufacturers set strict limits for allowable features and multiple variations.
  • Outline the concept of design and feature sets as differentiating factors in product design

• Setting Goals

  • In addition to considering recent market, consumer and technological shifts, brands must assess their marketing budget and target audience when setting IMC goals.
  • Despite varying budgets, product features and benefits, and consumer behaviors, organizations typically set and work towards the following goals when implementing IMC strategies:

• Competitor-Based Pricing

  • Sometimes such pricing can take the form of a firm setting a market share objective and discounting their price relative to their competitor until they attain it.
  • For example, if a firm sets a market share objective when the market size is fixed or declining, then this immediately signals that this gain in market share will come at the loss of a competitor.
  • Instead of setting market share objectives, firms should focus on identifying the most profitable segments to serve, and finding ways of profitably serving them while protecting themselves from price wars.

• Cash Flow

  • Some companies will set prices so that they can recover cash flow as quickly as possible.
  • This typically requires setting prices very high, which is a disadvantage since competitors can set prices lower and gain a larger market share.

• Company Capabilities

  • Capability management uses the organization's customer value proposition to set goals for capabilities based on value contribution.
  • At the intersection of the individual and the social, leaders also have a set of competencies or skills such as setting a strategic agenda, championing change, and building relationships.

• Consumer Perception of Communication

  • Once the consumer decides on the brands that appeal most to them, they compare the products in their evoked set.
  • The evoked set refers to the number of alternatives considered by consumers during the problem-solving process.
  • This set tends to be small relative to the total number of options available in the marketplace.
  • Evaluating other competing brands in the consideration set also gleans important data for competitive analysis and proper marketing planning.

• The Importance of Price to Marketers

  • Since pricing has a direct impact on a company's revenue, and thus profit, setting the right price is essential to a company's success.
  • Problems occur if the marketer fails to set a price that complements the other elements of the marketing mix and the business objectives, as pricing contributes to how customers perceive a product or a service.
  • So, as you can see, it is important that a company sets the right price.