logging in or signing up Consumer Behaviour rohanimwhtim Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1078 Category: Others/ Misc License: All Rights Reserved Like it (0) Dislike it (0) Added: July 14, 2010 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: asinmilan (8 month(s) ago) nc ppt.. Saving..... Post Reply Close Saving..... Edit Comment Close By: etikyalaanilkumar (8 month(s) ago) nice presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: archana.anuragi (9 month(s) ago) please send this ppt archana_anuragi@yahoo.com Saving..... 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See all Premium member Presentation Transcript Chapter 1 Consumer Behavior: Its Origins and Strategic Applications : Copyright 2007 by Prentice Hall Chapter 1 Consumer Behavior: Its Origins and Strategic Applications Chapter Outline : Copyright 2007 by Prentice Hall Chapter Outline Overview of Consumer Behavior The Marketing Concept The Marketing Mix and Relationships Digital Technologies Societal Marketing Concept A Simplified Model of Consumer Decision Making Consumer Behavior : Copyright 2007 by Prentice Hall Consumer Behavior 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 : Copyright 2007 by Prentice Hall Customers Search for Products weblink Personal Consumer : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function. Government Buying : Copyright 2007 by Prentice Hall Government Buying weblink Development of the Marketing Concept : Copyright 2007 by Prentice Hall Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept The Production Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Tendency toward Marketing Myopia The Selling Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Discussion Question : Copyright 2007 by Prentice Hall Discussion Question What two companies do you believe grasp and use the marketing concept? Why do you believe this? The Marketing Concept : Copyright 2007 by Prentice Hall The Marketing Concept Consumer Research Segmentation Targeting Positioning The process and tools used to study consumer behavior Two perspectives: Positivist approach Interpretivist approach Implementing the Marketing Concept Slide 15: Copyright 2007 by Prentice Hall weblink The Marketing Concept : Copyright 2007 by Prentice Hall 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 Segmentation Used by Sports Illustrated : Segmentation Used by Sports Illustrated Discussion Question : Copyright 2007 by Prentice Hall 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? The Marketing Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Slide 21: This product is positioned as a solution to facial redness. The Marketing Mix : Copyright 2007 by Prentice Hall The Marketing Mix Product Price Place Promotion Successful Relationships : Copyright 2007 by Prentice Hall Successful Relationships Customer Value Customer Satisfaction Customer Retention Successful Relationships : Copyright 2007 by Prentice Hall 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 Discussion Question : Copyright 2007 by Prentice Hall Discussion Question How does McDonald’s create value for the consumer? How do they communicate this value? Successful Relationships : Copyright 2007 by Prentice Hall 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. Customers identified based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries Value, Satisfaction, and Retention Successful Relationships : Copyright 2007 by Prentice Hall 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 Customer Profitability-Focused Marketing : Copyright 2007 by Prentice Hall Customer Profitability-Focused Marketing Tracks costs and revenues of individual consumers Categorizes them into tiers based on consumption behavior A customer pyramid groups customers into four tiers Customer Profitability-Focused Marketing : Copyright 2007 by Prentice Hall Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead Traditional Marketing Concept Vs. Value and Retention Focused MarketingTable 1-2 : Copyright 2007 by Prentice Hall Traditional Marketing Concept Vs. Value and Retention Focused MarketingTable 1-2 Impact of Digital Technologies : Copyright 2007 by Prentice Hall Impact of Digital Technologies Consumers have more power and access to information Marketers can gather more information about consumers The exchange between marketer and customers is interactive and instantaneous and goes beyond the PC. Marketers must offer more products and services Societal Marketing Concept : Copyright 2007 by Prentice Hall 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. Consumer Behavior Is Interdisciplinary : Copyright 2007 by Prentice Hall Consumer Behavior Is Interdisciplinary Psychology Sociology Social psychology Anthropology Economics A Simplified Model of Consumer Decision Making – Figure 1-1 : Copyright 2007 by Prentice Hall A Simplified Model of Consumer Decision Making – Figure 1-1 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Consumer Behaviour rohanimwhtim Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1078 Category: Others/ Misc License: All Rights Reserved Like it (0) Dislike it (0) Added: July 14, 2010 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: asinmilan (8 month(s) ago) nc ppt.. Saving..... Post Reply Close Saving..... Edit Comment Close By: etikyalaanilkumar (8 month(s) ago) nice presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: archana.anuragi (9 month(s) ago) please send this ppt archana_anuragi@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close By: luxkhemra (9 month(s) ago) I would like to read this presentation, So please send me the file of presentation to my email: luxkhemra@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close By: apurva.kushwaha (10 month(s) ago) pls send me at apurva.kushwaha@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript Chapter 1 Consumer Behavior: Its Origins and Strategic Applications : Copyright 2007 by Prentice Hall Chapter 1 Consumer Behavior: Its Origins and Strategic Applications Chapter Outline : Copyright 2007 by Prentice Hall Chapter Outline Overview of Consumer Behavior The Marketing Concept The Marketing Mix and Relationships Digital Technologies Societal Marketing Concept A Simplified Model of Consumer Decision Making Consumer Behavior : Copyright 2007 by Prentice Hall Consumer Behavior 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 : Copyright 2007 by Prentice Hall Customers Search for Products weblink Personal Consumer : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function. Government Buying : Copyright 2007 by Prentice Hall Government Buying weblink Development of the Marketing Concept : Copyright 2007 by Prentice Hall Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept The Production Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Tendency toward Marketing Myopia The Selling Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Discussion Question : Copyright 2007 by Prentice Hall Discussion Question What two companies do you believe grasp and use the marketing concept? Why do you believe this? The Marketing Concept : Copyright 2007 by Prentice Hall The Marketing Concept Consumer Research Segmentation Targeting Positioning The process and tools used to study consumer behavior Two perspectives: Positivist approach Interpretivist approach Implementing the Marketing Concept Slide 15: Copyright 2007 by Prentice Hall weblink The Marketing Concept : Copyright 2007 by Prentice Hall 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 Segmentation Used by Sports Illustrated : Segmentation Used by Sports Illustrated Discussion Question : Copyright 2007 by Prentice Hall 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? The Marketing Concept : Copyright 2007 by Prentice Hall 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 : Copyright 2007 by Prentice Hall 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 Slide 21: This product is positioned as a solution to facial redness. The Marketing Mix : Copyright 2007 by Prentice Hall The Marketing Mix Product Price Place Promotion Successful Relationships : Copyright 2007 by Prentice Hall Successful Relationships Customer Value Customer Satisfaction Customer Retention Successful Relationships : Copyright 2007 by Prentice Hall 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 Discussion Question : Copyright 2007 by Prentice Hall Discussion Question How does McDonald’s create value for the consumer? How do they communicate this value? Successful Relationships : Copyright 2007 by Prentice Hall 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. Customers identified based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries Value, Satisfaction, and Retention Successful Relationships : Copyright 2007 by Prentice Hall 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 Customer Profitability-Focused Marketing : Copyright 2007 by Prentice Hall Customer Profitability-Focused Marketing Tracks costs and revenues of individual consumers Categorizes them into tiers based on consumption behavior A customer pyramid groups customers into four tiers Customer Profitability-Focused Marketing : Copyright 2007 by Prentice Hall Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead Traditional Marketing Concept Vs. Value and Retention Focused MarketingTable 1-2 : Copyright 2007 by Prentice Hall Traditional Marketing Concept Vs. Value and Retention Focused MarketingTable 1-2 Impact of Digital Technologies : Copyright 2007 by Prentice Hall Impact of Digital Technologies Consumers have more power and access to information Marketers can gather more information about consumers The exchange between marketer and customers is interactive and instantaneous and goes beyond the PC. Marketers must offer more products and services Societal Marketing Concept : Copyright 2007 by Prentice Hall 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. Consumer Behavior Is Interdisciplinary : Copyright 2007 by Prentice Hall Consumer Behavior Is Interdisciplinary Psychology Sociology Social psychology Anthropology Economics A Simplified Model of Consumer Decision Making – Figure 1-1 : Copyright 2007 by Prentice Hall A Simplified Model of Consumer Decision Making – Figure 1-1