chapter 1 mkt344
DESCRIPTION
marketingTRANSCRIPT
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Chapter 1
Consumer Behavior:
Its Origins and
Strategic Applications
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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"
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#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"
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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"
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Development of the Marketing
ConceptProduction
Concept
Selling Concept
Product Concept
Marketing
Concept
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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
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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
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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
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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
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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
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The )ar*eting Concept
Consumer
.esearch
Segmentation
Targeting
#ositioning
The selection of one
or more of the
segments to pursue
Implementing the
Marketing Concept
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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
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The )ar*eting )i
#roduct
#rice
#lace #romotion
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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
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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
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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
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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
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C"#tomer $rofita%ilit&-'oc"#e(
Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
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Traditional )ar*eting Concept 0s" 0alue
and .etention 4ocused )ar*eting
Traditional )ar*etingConcept
0alue and .etention4ocused )ar*eting
)a*e only !hat you can sell instead
of trying to sell !hat you ma*e
5se technology that enables
customers to customi$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
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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
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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"
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A Simplified )odel of Consumer
/ecision )a*ing