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CB definition Key aspects select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts Marketing decision Conduct research Applications Marketing Strategy and CB Marketing Strategy Complex multidimensional processes Ethical issues The Nature of Consumer Behavior Regulatory Policy Social Marketing Informed Individuals 1 -2
CHAPTER 1 CONSUMER BEHAVIOR AND MARKETING STRATEGY 1 -3
Consumer Behavior In The News… Segmenting the Automobile Market Ø J. D. Powers Examined Car-Buyer Segments. Ø Can You Predict the Market for Each Brand? Ø Honda Civic Ø Honda Accord Ø Toyota Sienna Mini Van Ø Cadillac STS Ø Lexus LS 430 Source: D. Kiley, “Sexy or Sensible? ” Business Week, January 16, 2006, p. 60 -61. 1 -4
Consumer Behavior In The News… Segmenting the Automobile Market Ø J. D. Powers Examined Car-Buyer Segments. Ø Can You Predict the Market for Each Brand? Ø Honda Civic – “teenage terror” Ø Honda Accord – “recent MBA grad” Ø Toyota Sienna Mini Van – “suburban mom” Ø Cadillac STS – “mid-career executive” Ø Lexus LS 430 – “titan of industry” Source: D. Kiley, “Sexy or Sensible? ” Business Week, January 16, 2006, p. 60 -61. 1 -5
Consumer Behavior and Marketing Strategy Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. 1 -6
Applications of Consumer Behavior 1. Marketing Strategy 2. Regulatory Policy 3. Social Marketing 4. Informed Individuals 1 -7
Marketing Strategy and Consumer Behavior 1 -8
Market Analysis Components 1. The Consumers 2. The Company 3. The Competitors 4. The Conditions 1 -9
Market Segmentation Market segmentation is a portion of a larger market whose needs differ from the larger market. 1 -10
Market Segmentation Involves Four Steps: 1. Identifying Product-Related Need Sets 2. Grouping Customers with Similar Need Sets 3. Describing Each Group 4. Selecting an Attractive Segment(s) to Serve 1 -11
Market Segmentation Market Segment Attractiveness Worksheet 1 -12
Marketing Strategy Ø Marketing Strategy is the answer to the question: How will we provide superior customer value to our target market? Ø This requires the formulation of a consistent marketing mix, which includes the mix 1. Product 2. Price 3. Communications 4. Distribution, and Distribution 5. Services 1 -13
Consumer Decisions The consumer decision process intervenes between the marketing strategy, as implemented in the strategy marketing mix, and the outcomes. mix outcomes The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase. 1 -14
Outcomes 1. Firm Outcomes 2. Individual Outcomes 3. Society Outcomes 1 -15
Outcomes Creating Satisfied Customers 1 -16
The Nature of Consumer Behavior Overall Conceptual Model of Consumer Behavior 1 -17
The Nature of Consumer Behavior External Influences The following are the major external influences: • Culture • Demographics and social stratification • Ethnic, religious, and regional subcultures • Families and households • Groups 1 -18
The Nature of Consumer Behavior Internal Influences Internal influences include: • Perception • Learning • Memory • Motives • Personality • Emotions • Attitudes 1 -19
The Nature of Consumer Behavior Self-Concept and Lifestyle Self-concept is the totality of an individual’s thoughts and feelings about oneself. Lifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them. 1 -20
The Nature of Consumer Behavior Situations and Consumer Decisions Consumer decisions result from perceived problems and opportunities. Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior. Using Outdoor Media to Trigger Problem Recognition 1 -21
Discussion Questions 27. Why would someone shop on the Internet? Buy an i. Pod? Eat at TGI Friday’s frequently? – Why would someone else not make those purchases? – How would you choose one outlet, brand, or model over the others? Would others make the same choice in the same way?
Discussion Questions 31. Describe your lifestyle. How does it differ from your parents’ lifestyle? 33. Describe a recent purchase you made. To what extent did you follow the consumer decision-making process described in this chapter? How would you explain any differences?
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