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Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 01

CHAPTER

01

Consumer Behavior and
Marketing Strategy

McGraw-Hill/Irwin

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.


PART I: INTRODUCTION

1-2


Learning Objectives

Define consumer behavior


L01
L01
Summarize the applications of consumer behavior

L02
L02

Explain how consumer behavior can be used to develop marketing strategy

L03
L03
Explain the components that constitute a conceptual model of consumer behavior

L04
L04
Discuss issues involving consumption meanings and firm attempts to influence them

L05
L05

1-3


Consumer Behavior In The News…
Target Marketing. Just Your Average Triathlete?



Can you predict the demographics of the average triathlete?



Income:



Age:




Gender:



Marital Status:

Source: N. Zmuda, “Forget Golf,” Advertising Age, October 10, 2011, p. 8.

1-4


Consumer Behavior In The News…
Target Marketing. Just Your AverageTriathlete?





Demographics of the average triathlete?



Income: $126,000



Age: 38 Years Old



Gender: 60% Male



Marital Status: 63% Married

Key Target Market: Higher income corporate executives who spend heavily on the
sport.

Source: N. Zmuda, “Forget Golf,” Advertising Age, October 10, 2011, p. 8.

1-5


Consumer Behavior and Marketing Strategy

Consumer behavior is the study of individuals, groups,
or organizations and the processes they use to select,
secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society.

1-6


Applications in Consumer Behavior

1.

Marketing Strategy

2.

Regulatory Policy

3.

Social Marketing

4.

Informed Individuals

1-7


Applications in Consumer Behavior

United Way Campaign Provides an Example
of Social Marketing

Courtesy United Way of Metropolitan Chicago

1-8


Marketing Strategy and Consumer Behavior

1-9


Market Analysis Components

1.

The Consumers

2.

The Company

3.

The Competitors

4.

The Conditions

1-10


Market Segmentation

Market segmentation is a portion of a
larger market whose needs differ from the
larger market.

1-11


Market Segmentation

Market Segmentation Involves Four Steps:

1.

Identifying Product-Related Need Sets

2.

Grouping Customers with Similar Need Sets

3.

Describing Each Group

4.

Selecting an Attractive Segment(s) to Serve

1-12


Market Segmentation

1-13


Marketing Strategy



Marketing Strategy is the answer to the question: How will we provide superior customer
value to our target market?



This requires the formulation of a consistent marketing mix, which includes the

1.

Product

2.

Communications

3.

Price

4.

Distribution, and

5.

Services

1-14


Video Application

The following Video Clip shows how digital signage (the
communications element) keeps the marketing message fresh!

1-15


1-16


Consumer Decisions

The consumer decision process intervenes between the marketing strategy, as
implemented in the marketing mix, and the outcomes.
The firm can succeed only if consumers see a need that its product can solve, become
aware of the product and its capabilities, decide that it is the best available solution, proceed
to buy it, and become satisfied with the result of the purchase.

1-17


Outcomes

1.

Firm Outcomes

2.

Individual Outcomes

3.

Society Outcomes

1-18


Outcomes

Creating Satisfied Customers

Pella Windows on Creating Satisfied Customers through Quality

YouTube Spotlight

1-19


The Nature of Consumer Behavior
Overall Conceptual Model of Consumer Behavior

1-20


The Nature of Consumer Behavior

External Influences



Culture



Demographics and social stratification



Ethnic, religious, and regional subcultures



Families and households



Groups

1-21


The Nature of Consumer Behavior

Internal Influences



Perception



Learning



Memory



Motives



Personality



Emotions



Attitudes

1-22


The Nature of Consumer Behavior

Self-Concept and Lifestyle

Self-concept is the totality of an individual’s thoughts
and feelings about oneself.
Lifestyle is how one lives, including the products one
buys, how one uses them, what one thinks about them,
and how one feels about them.

1-23


The Nature of Consumer Behavior

Situations and Consumer Decisions
Consumer decisions result from perceived
problems and opportunities.
Consumer problems arise in specific
situations and the nature of the situation
influences the resulting consumer behavior.

Using Outdoor Media to Trigger Problem Recognition

1-24


The Meaning of Consumption



Consumption has meaning beyond satisfaction of minimum or basic consumer
needs



Symbolic needs



Status



Identity



Group acceptance

1-25


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