chapter 1 consumer behavior: its origins & strategic applications
TRANSCRIPT
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Session 1
Consumer Behavior: Its Origins & Strategic
Applications
Prepared by:
Prof. Nishant Agrawal
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Session Outline
• Overview of Consumer Behavior
• The Marketing Concept
• The Marketing Mix and Relationships
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Consumer BehaviorThe behavior that consumers display in searching for, purchasing,
using, evaluating, and disposing of products and services that they
expect will satisfy their needs.
•4W & H purchasing decision
•All Consumers are unique
Two type of CB :
1.Personal consumer
2.Organizational consumer
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Customers Search for Products
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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.
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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.
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Government Buying
weblink
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Three Stages of Marketing Evolution in the United States.
Product Orientation
Product Orientation Sales Orientation
Product Orientation
Other industries & organizations have progressed only to the sales-orientation stage
Many industries & organizations have progressed to the market-orientation stage
Late 1800s Early 1930s Mid – 1950s 1990s
Sales Orientation Market Orientation
Some industries & organizations remain at the product-orientation stage
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Development of the Marketing Concept
Production Concept
Production Concept
Selling ConceptSelling Concept
Product ConceptProduct Concept
Marketing Concept
Marketing Concept
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The Production Concept
• Assumes that consumers are interested primarily in
product availability at low prices
• Marketing objectives:
– Cheap, efficient production
– Easy distribution
– Market expansion
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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
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The Selling Concept
• Assumes that consumers are unlikely to buy a product
unless they are aggressively to do
• Marketing objectives:
–Sell, Sell, Sell
• Lack of concern for customer needs and satisfaction
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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
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Discussion Question
• What two companies do you believe grasp
and use the marketing concept?
• Why do you believe this?
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The Marketing Concept
• 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
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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?
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Two High-End Watches for Different Segments
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The Marketing Concept
• Segmentation• Targeting• Positioning
The selection of one or
more of the segments to
pursue.
Implementing the Marketing Concept
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Ryka produces sneakers that
meet the special needs of
women’s feet.
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The Marketing Concept
• 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 plan
Implementing the Marketing Concept
This product is positioned as a solution to
facial redness.
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The Marketing Mix
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End of Session 1