Professional Documents
Culture Documents
Definition Consumer behaviour in relation to marketing Interdisciplinary nature of consumer behaviour Evolution of consumer behaviour A model of consumer behaviour
CONSUMER BEHAVIOUR NKS/IME/IITK 2
Why and how people buy products Why and how people use products Present day focus: use and satisfaction
Discussion Question
What two companies do you believe grasp and use the marketing concept? Why do you believe this?
Discussion Question
What products that you regularly purchase are highly segmented? What are the different segments? Why is segmentation useful to the marketer for these products?
Evolution of CB
Who is the boss out here? Shifting from supply to demand Shifting from manufacturing to selling Shifting from selling to marketing
Manufacturing orientation
Selling orientation
Marketing orientation
Consumer orientation
Behaviourism Marketing focus and marketing research Postmodernism Final power shift in the supply chain Internet for consumer buying and communication
Evolution of CB has seen a shift from manufacturing orientation (how to make products) to selling orientation to marketing to consumer orientation.
CONSUMER BEHAVIOUR NKS/IME/IITK 17
18
19
20
21
23
24
Some concepts
Value
What consumers give up (time, money, or other resources) for a product and the benefits they receive
Market analysis
Consumer Company Environmental
PEST-NCR
Marketing strategy
Involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or services The process includes market analysis, market segmentation, brand strategy and implementation
CONSUMER BEHAVIOUR NKS/IME/IITK 25
26
Market segmentation
Demographic Situational Psychographic Behavioural
4 Ps, 7Ps
Brand strategy
Marketing-mix strategies Brand marketing strategy
Brand equity
Functional and emotional elements
Implementation
Customer retention and loyalty strategies Global marketing strategy Overcoming language problems Global branding
Successful Relationships
Customer Retention
Successful Relationships
Value, Satisfaction, and Retention
Customer Value Customer Satisfaction Customer Retention
Defined as the ratio between the customers perceived benefits and the resources used to obtain those benefits Perceived value is relative and subjective Developing a value proposition is critical
Discussion Question
How does McDonalds create value for the consumer? How do they communicate this value?
Successful Relationships
Value, Satisfaction, and Retention
Customer Value Customer Satisfaction Customer Retention
The individual's perception of the performance of the product or service in relation to his or her expectations. Customers identified based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
Successful Relationships
Value, Satisfaction, and Retention
Customer Value Customer Satisfaction Customer Retention
The objective of providing value is to retain highly satisfied customers. Loyal customers are key They buy more products They are less price sensitive They pay less attention to competitors advertising Servicing them is cheaper They spread positive word of mouth
Traditional Marketing Concept Vs. Value and Retention Focused Marketing Table 1-2
Traditional Marketing Concept
Make only what you can sell instead of trying to sell what you make
Do not focus on the product; focus on Focus on the products the need that it satisfies perceived value, as well as the need that it satisfies Market products and services that match customers needs better than competitors offerings Utilize an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors offerings
Ethical issues
Conflict Business ethics: Rules of conduct Do marketers manipulate consumers?
Do marketers create artificial needs? Are advertising and marketing necessary? Do marketers promise miracles?