Introduction to Consumer Behavior

Concept unveiled

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.

Consumer behavior is a process

In Primal stages, the field is referred to as Buying Behavior On-going process It also involves exchange
Exchange is the act of obtaining a desired object from someone by offering something in return

Consumer Behavior involves..

Defining Consumer..

A person who identifies a need or a desire, makes a purchase and then disposes a product during the three stages in the consumption process.

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

Designing a Customer-Driven Marketing Strategy

Production concept

Product concept

Selling concept

Marketing concept

Societal concept

Marketing Management Orientations

Production concept is the idea that consumers will favor products that are available or highly affordable

Usually in case of Companies with: Low labor cost High production efficiency Mass distribution
Production

concept in some cases can also lead to market myopia Example: Lenovo- Chinese PC brand

Marketing Management Orientations

Product concept is the idea that consumers will favor products that offer the most quality, performance, and innovative features. Organization should therefore devote its energy to making continuous product improvements. Focusing only on companys product can also lead to marketing myopia Example:

Marketing Management Orientations

Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort Typically in case of unsought goods- those that buyers normally do not think of buying. Orientation assumes that consumers will either not buy or not buy enough of the organization's products unless the organization makes a substantial effort to stimulate their (consumers) interest in its products. Example: Insurance, Blood donations etc.

Marketing Management Orientations

Marketing concept is the idea that achieving organizational goals depends on: knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Under marketing concept, customer focus and value are the paths to sales and profits

Example: Head & Shoulders Shampoo

Marketing Management Orientations

Societal marketing concept holds that a company should devise marketing strategies that deliver value to customer in a way that maintains or improves both the consumers and societys well-being Emphasis on social responsibility and suggests that for a company to only focus on exchange relationship with customers might not be suitable in order to sustain long term success. Examples: Body Shop Ariel (P&G) British American Tobacco company

Implementing the Marketing Concept

Consumer Research Segmentation Targeting Positioning

The Marketing Mix

Product Price Place Promotion

Perspectives on Consumer Research

Market Segmentation Strategies

The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

Variables for market Segmentation

Category

Variables

Demographics

Age, gender, social class, occupation, income, religion, stage in life, ethnic group, purchaser vs. user

Geographic
Psychographic Behavioral

Region, country differences Self concept, personality, lifestyle Brand loyalty, usage extent, usage situation, benefits desired

Target Marketing

defining the market and the tactics used to reach that market
Step by step procedure involving
Defining the relevant market Analyzing the needs and the characteristics of the potential customers Identify the bases for segmenting the market Define and describe the market segments Analyze competitors positions Evaluate market segments Select market segments Finalize the Marketing Mix

Relationship Marketing

Input

Firms Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution

Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture

External Influence

Need Recognition Process Prepurchase Search Evaluation of Alternatives

Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience

Output

Purchase 1. Trial 2. Repeat purchase Postpurchase Evaluation

Figure 1-1: A Model of Consumer Decision Making