Diversity of consumer behaviour ppt

Chapter 1 Introduction to Consumer Behaviour Copyright © 2006 Pearson Education Canada Inc. Opening Vignettes ◼ Tim Horton’s started in 1964 • Merged with Wendy’s in 1999 • Has operations in several states in the US • Mercedes Who is likely to be the typical buyer of Smart? Copyright © 2006 Pearson Education Canada Inc. 1-2 Consumer Behaviour The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Copyright © 2006 Pearson Education Canada Inc. 1-3 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. Copyright © 2006 Pearson Education Canada Inc. 1-4 Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept Copyright © 2006 Pearson Education Canada Inc. 1-5 The Production Concept ◼ Assumes that consumers are interested primarily in product availability at low prices ◼ Marketing objectives: – Cheap, efficient production – Intensive distribution – Market expansion Copyright © 2006 Pearson Education Canada Inc. 1-6 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 Copyright © 2006 Pearson Education Canada Inc. 1-7 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 Copyright © 2006 Pearson Education Canada Inc. 1-8 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: – Profits through customer satisfaction Copyright © 2006 Pearson Education Canada Inc. 1-9 Business Leaders Who Understood Consumer Behaviour ◼ Alfred Sloan, General Motors ◼ Colonel Sanders, KFC ◼ Ray Kroc, McDonald’s Copyright © 2006 Pearson Education Canada Inc. 1-10 Implementing the Marketing Concept ◼ Consumer Research ◼ Segmentation ◼ Targeting ◼ Positioning Copyright © 2006 Pearson Education Canada Inc. 1-11 Segmentation, Targeting, and Positioning ◼ Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics ◼ Targeting: selecting one ore more of the segments to pursue ◼ Positioning: developing a distinct image for the product in the mind of the consumer Copyright © 2006 Pearson Education Canada Inc. 1-12 Successful Positioning ◼ Communicating the benefits of the product, rather than its features ◼ Communicating a Unique Selling Proposition for the product Copyright © 2006 Pearson Education Canada Inc. 1-13 The Marketing Mix ◼ Product ◼ Price ◼ Place ◼ Promotion Copyright © 2006 Pearson Education Canada Inc. 1-14 The Societal Marketing Concept ◼ All companies prosper when society prospers. ◼ Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision. ◼ Requires all marketers adhere to principles of social responsibility. Copyright © 2006 Pearson Education Canada Inc. 1-15 Digital Revolution in the Marketplace ◼ Allows customization of products, services, and promotional messages like never before ◼ Enhances relationships with customers more effectively and efficiently ◼ Has increased the power of customers and given them access to more information Copyright © 2006 Pearson Education Canada Inc. 1-16 Digital Revolution in the Marketplace - Continued ◼ The exchange between consumers and marketers has become more interactive ◼ May affect the way marketing is done Copyright © 2006 Pearson Education Canada Inc. 1-17 Changes brought on by the digital revolution ◼ Changes in segmentation strategies ◼ Re-evaluation of promotional budgets – reduced impact of television? – More internet-based promotion? ◼ Integrated marketing becomes critical – Using off-line promotions to drive consumers to company’s website (and vice-a-versa) Copyright © 2006 Pearson Education Canada Inc. 1-18 » Continued Changes brought on by the digital revolution - continued ◼ Revamping distribution systems – Direct distribution becomes more of an option ◼ Pricing methods may need to be reevaluated – Comparison shopping made easier ◼ Consumer research methods may change – How do you measure web-based promotions? Copyright © 2006 Pearson Education Canada Inc. 1-19 Why study consumer behaviour? ◼ Understanding consumer behaviour will help you become better marketers as it is the foundation for ▪ Segmenting markets ▪ Positioning products ▪ Developing an appropriate marketing ▪ continued Copyright © 2006 Pearson Education Canada Inc.