Transcript Consumer Behavior/Building Mktg Strategy
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Welcome!
Consumer Behavior and Marketing Strategy
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Why Study Consumer Behavior?
What is it?
Why is it useful?
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What is Consumer Behavior?
80% of new products fail to meet financial expectations!!!!
Study of individuals, groups, or organizations and the processes used to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on consumers and society.
Answers the question of WHY?
Are managers telepathic? Do decisions regarding the 4 P’s just come to them?
What are some commonly asked questions regarding consumer’s behavior?
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Commonly asked questions:
Product related:
What do they think of the product?
What do they think of competitor’s product?
How do you use the product?
What is their A ad /A product ?
Lifestyle related :
What are your hopes/dreams?
What is your place in the world? (role)
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Applications of Consumer Behavior
Marketing strategy: MANAGERIAL RELEVANCE
Use common sense/ Look at successes and failures.
Regulatory Policy: Warning Labels/ Nutrition Labeling
Social Marketing/ TRUTH ads
Drug Use
HIV prevention
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1-1 Marketing Strategy and Consumer Behavior (Goal is creating and Reinforcing Customer Value) Outcomes
Individual Firm Society
Consumer decision process
Problem Recognition Information Search Alternative Evaluation Purchase Use Evaluation
Marketing strategy
Product, Price, Distribution, Promotion, Service
Marketing segmentation
Identify product-related need sets Group Customers with similar need sets Describe each group Select attractive segment(s) to target
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Marketing analysis
Company Competitors Conditions Consumers
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
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Describe the Need Set
Market Segment Attractiveness Worksheet 1-2 Criterion
Segment size Segment growth rate Competitor strength Customer satisfaction with existing products Fit with company image Fit with company objectives Fit with company resources Distribution available Investment required Stability/predictability Cost to serve Sustainable advantage available Communications channels available Risk Other (_______________) *Score on a 1 to 10 scale, with 10 being most favorable.
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Score*
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Creating Satisfied Customers 1-3
Our total Product Physical Prod + Experience Competitors’ total product Consumer decision process Superior value expected Sales Perceived value delivered Customer satisfaction
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
1-4 Consumer Behavior is Product—Person—Situation Specific Personal characteristics Product characteristics Consumer behavior Marketing strategy Consumption situation
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Overall Model of Consumer Behavior 1-5 EXTERNAL INFLUENCES
Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities
INTERNAL INFLUENCES
Perception Learning Memory Motives Personality Emotions Attitudes
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Experiences and Acquisitions SELF-CONCEPT and LIFESTYLE Needs Desires Experiences and Acquisitions SITUATIONS
Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Postpurchase Processes
SITUATIONS
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.