introduction to consumer behaviour

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Introductory concept for consumer behaviour

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Presentation Transcript

Slide 1: 

INTRODUCTION TO CONSUMER BEHAVIOUR

Consumer Behaviour : 

Consumer Behaviour The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

Customers Search for Products : 

Customers Search for Products weblink

Personal Consumer : 

Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

Organizational Consumer : 

Organizational Consumer A business (profit or for-nonprofit), government agencies, or other institution that buys the goods, services, and/or equipment necessary for the organization to function.

Difference between consumers and customers : 

Difference between consumers and customers Customer – Person is either a household or an organisational unit who plays the role in the completion of a transaction with a marketer or an entity Who is a consumer?

Development of the Marketing Concept : 

Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept

The Production Concept : 

The Production Concept Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: Cheap, efficient production Intensive distribution Market expansion

The Product Concept : 

The Product Concept Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives: Quality improvement Addition of features

The Selling Concept : 

The Selling Concept Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Marketing objectives: Sell, sell, sell Lack of concern for customer needs and satisfaction

The Marketing Concept : 

The Marketing Concept Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Marketing objectives: Make what you can sell Focus on buyer’s needs

Implementing the Marketing Concept : 

Implementing the Marketing Concept Consumer Research Segmentation Targeting Positioning The process and tools used to study consumer behavior.

The Marketing Concept : 

The Marketing Concept Consumer Research Segmentation Targeting Positioning Process of dividing the market into subsets of consumers with common needs or characteristics Implementing the Marketing Concept

The Marketing Concept : 

The Marketing Concept Consumer Research Segmentation Targeting Positioning The selection of one or more of the segments to pursue Implementing the Marketing Concept

The Marketing Concept : 

The Marketing Concept Consumer Research Segmentation Targeting Positioning Developing a distinct image for the product in the mind of the consumer Successful positioning includes: Communicating the benefits of the product Communicating a unique selling proposition Implementing the Marketing Concept

The Marketing Mix : 

The Marketing Mix Company’s service or product offerings to consumers and the methods and tools it selects to accomplish the exchange. Four elements of Marketing Mix Product Price Place Promotion

Successful Relationships : 

Successful Relationships Customer Value Customer Satisfaction Customer Retention

Successful Relationships : 

Successful Relationships Customer Value Customer Satisfaction Customer Retention Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits Perceived value is relative and subjective Developing a value proposition is critical Value, Satisfaction, and Retention

Successful Relationships : 

Successful Relationships 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. Value, Satisfaction, and Retention

Successful Relationships : 

Successful Relationships 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 Value, Satisfaction, and Retention

Traditional Marketing Concept Vs. Value and Retention Focused Marketing : 

Traditional Marketing Concept Vs. Value and Retention Focused Marketing

Marketing Ethics & Social Responsibility : 

Marketing Ethics & Social Responsibility

Societal Marketing Concept : 

Societal Marketing Concept Marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.

Societal Marketing Concept : 

Societal Marketing Concept Should be on a long-term perspective Establishment of code of ethics Organisational effectiveness = marketing ethics + social responsibility

Slide 25: 

THANK YOU