7/17/2019 Chapter 1 mkt344

1/22

1 - 1

Chapter 1

Consumer Behavior:

Its Origins and

Strategic Applications

7/17/2019 Chapter 1 mkt344

2/22

1 - 2

Consumer Behavior

The behavior that consumers display in

searching for, purchasing, using,

evaluating, and disposing of products

and services that they epect !ill satisfy

their needs"

7/17/2019 Chapter 1 mkt344

3/22

1 - 3

#ersonal Consumer

The individual !ho buys goods and

services for his or her o!n use, for

household use, for the use of a family

member, or for a friend"

7/17/2019 Chapter 1 mkt344

4/22

1 - 4

Organi$ational Consumer

A business, government agency, or other

institution %profit or nonprofit& that buys

the goods, services, and'or e(uipment

necessary for the organi$ation to

function"

7/17/2019 Chapter 1 mkt344

5/22

1 - 5

Development of the Marketing

ConceptProduction

Concept

Selling Concept

Product Concept

Marketing

Concept

7/17/2019 Chapter 1 mkt344

6/22

1 - 6

The #roduction Concept

Assumes that consumers are

interested primarily in product

availability at lo! prices

)ar*eting ob+ectives:

Cheap, efficient production

Intensive distribution

)ar*et epansion

7/17/2019 Chapter 1 mkt344

7/22

1 - 7

The #roduct Concept

Assumes that consumers !ill buy the

product that offers them the highest

(uality, the best performance, and the

most features

)ar*eting ob+ectives:

uality improvement

Addition of features

Tendency to!ard )ar*eting )yopia

7/17/2019 Chapter 1 mkt344

8/22

1 - 8

The Selling Concept

Assumes that consumers are unli*ely

to buy a product unless they are

aggressively persuaded to do so

)ar*eting ob+ectives:

Sell, sell, sell

-ac* of concern for customer needs

and satisfaction

7/17/2019 Chapter 1 mkt344

9/22

1 -

The )ar*eting Concept

Assumes that to be successful, a

company must determine the needs

and !ants of specific target mar*ets

and deliver the desired satisfactions

better than the competition

7/17/2019 Chapter 1 mkt344

10/22

1 - 1!

The )ar*eting Concept

Consumer

.esearch

Segmentation

Targeting

#ositioning

#rocess of dividing

the mar*et into

subsets of

consumers !ith

common needs orcharacteristics

Implementing the

Marketing Concept

7/17/2019 Chapter 1 mkt344

11/22

1 - 11

The )ar*eting Concept

Consumer

.esearch

Segmentation

Targeting

#ositioning

The selection of one

or more of the

segments to pursue

Implementing the

Marketing Concept

7/17/2019 Chapter 1 mkt344

12/221 - 12

The )ar*eting Concept

Consumer

.esearch

Segmentation

Targeting

#ositioning

/eveloping a distinct image

for the product in the mind

of the consumer

Successful positioning

includes:

Communicating the

benefits of the product

Communicating a uni(ue

selling proposition

Implementing the

Marketing Concept

7/17/2019 Chapter 1 mkt344

13/221 - 13

The )ar*eting )i

#roduct

#rice

#lace #romotion

7/17/2019 Chapter 1 mkt344

14/221 - 14

Successful .elationships

Customer

0alue

Customer

Satisfaction

Customer.etention

/efined as the ratio bet!een

the customers perceivedbenefits and the resources

used to obtain those

benefits

#erceived value is relativeand sub+ective

/eveloping a value

proposition is critical

Value, Satisfaction,

and Retention

7/17/2019 Chapter 1 mkt344

15/221 - 15

Successful .elationships

Customer

0alue

Customer

Satisfaction

Customer.etention

The individual2s perception of

the performance of the productor service in relation to his or

her epectations"

Customers identified based on

loyalty include loyalists,apostles, defectors, terrorists,

hostages, and mercenaries

Value, Satisfaction,

and Retention

7/17/2019 Chapter 1 mkt344

16/221 - 16

Successful .elationships

Customer0alue

CustomerSatisfaction

Customer.etention

The ob+ective of providing value

is to retain highly satisfiedcustomers"

-oyal customers are *ey

They buy more products

They are less price sensitive They pay less attention to

competitors advertising

Servicing them is cheaper

They spread positive !ord ofmouth

Value, Satisfaction,

and Retention

7/17/2019 Chapter 1 mkt344

17/221 - 17

Customer #rofitability34ocused

)ar*eting

Trac*s costs and revenues of

individual consumers

Categori$es them into tiers based on

consumption behavior

A customer pyramid groups customers

into four tiers

7/17/2019 Chapter 1 mkt344

18/221 - 18

C"#tomer $rofita%ilit&-'oc"#e(

Marketing

Tier 1: Platinum

Tier 2: Gold

Tier 3: Iron

Tier 4: Lead

7/17/2019 Chapter 1 mkt344

19/221 - 1

Traditional )ar*eting Concept 0s" 0alue

and .etention 4ocused )ar*eting

Traditional )ar*etingConcept

0alue and .etention4ocused )ar*eting

)a*e only !hat you can sell instead

of trying to sell !hat you ma*e

5se technology that enables

customers to customi$e !hat

you ma*e

/o not focus on the product6 focus on

the need that it satisfies

4ocus on the products

perceived value, as !ell as the

need that it satisfies

)ar*et products and services thatmatch customers needs better than

competitors offerings

5tili$e an understanding ofcustomer needs to develop

offerings that customersperceive as more valuable than

competitors offerings

7/17/2019 Chapter 1 mkt344

20/221 - 2!

Impact of /igital Technologies

Consumers have more po!er and access to

information

)ar*eters can gather more information about

consumers The echange bet!een mar*eter and

customers is interactive and instantaneous

and goes beyond the #C"

)ar*eters must offer more products and

services

7/17/2019 Chapter 1 mkt344

21/221 - 21

Societal )ar*eting Concept

)ar*eters adhere to principles of social

responsibility in the mar*eting of their

goods and services6 that is, they must

endeavor to satisfy the needs and!ants of their target mar*ets in !ays

that preserve and enhance the !ell3

being of consumers and society as a!hole"

7/17/2019 Chapter 1 mkt344

22/22

A Simplified )odel of Consumer

/ecision )a*ing