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Understanding consumer behavior as a foundation for your marketing craft
 

Understanding consumer behavior as a foundation for your marketing craft

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An “outside-the-box” exposition of the basics of consumer behavior. Offers marketers a perspective on the consumption value consumers seek from market offerings and the exchange resources they ...

An “outside-the-box” exposition of the basics of consumer behavior. Offers marketers a perspective on the consumption value consumers seek from market offerings and the exchange resources they have at their command. It also presents a debate on a fundamental question: Does marketing create consumer needs (or can it)? It challenges readers to choose a side and then reflect on how it will influence their every act as a marketer. And in turn their personal satisfaction from their creative work.

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    Understanding consumer behavior as a foundation for your marketing craft Understanding consumer behavior as a foundation for your marketing craft Presentation Transcript

    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers 1CONSUMER BEHAVIOR 2013-2015 Welcome to to Welcome the the Fascinating Fascinating World of of World Consumers Consumers © Open Mentis 2012 OpenMentis.com MYCBBOOK.COM Human Pursuit ofOpen Mentis 2012 in the World of Goods © Happiness MYCBBOOK.COM
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The New Age of Consumer EmpowermentCONSUMER BEHAVIOR 2013-2015 Arianna lives in Cincinnati, Ohio. Hear her rave about her new pair of shoes! These are no ordinary shoes. They are uniquely mine. With some priceless elements of my autobiography built into them. They are my signal to the world as to who I am. I wear them with spirit, glee, and pride. I designed them, myself! I had been dreaming of designing my own pair of shoes for some time. So, on the afternoon of November 22, 2011, I sat down at my laptop and launched Keds.com. The Keds design tab led me step-by-step through the process of creating the shoe I wanted. I had the option of choosing the basic style and then applying my own design and paint to the upper, lower, left and right quarters, tongue, sole, lining, laces, and even eyelets. I made these choices— giving shape to my needs and my tastes. Viola, I am now a co-creator ! © Open Mentis 2012 Welcome to the Consumer Age of Web 2.0 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1CONSUMER BEHAVIOR 2013-2015 INTRODUCTION Welcome to the Fascinating World of Consumers C h a p t e r O b j e c t i v e s 1. Define and 2. Five 3. Consumer Dissect Visions of the needs and Consumer Consumer wants Behavior 4. Five 6. The Resources purpose of All Humans Have business & of 5. Four marketing, and the power and Consumption limits of marketing Values to influence CB © Open Mentis 2012 Learn Apply Experience MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers We Are Consumers 24-7! Yes NoCONSUMER BEHAVIOR 2013-2015 • We are always consuming something. (like the clothes we are wearing) • We are sometimes planning future consumption • We are sometimes enjoying the memory of past consumption. Q. Is this person being a consumer at this moment? Can you think of any moments when you are © Open Mentis 2012 NOT being a Consumer? MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers Five VISIONS of CONSUMERCONSUMER BEHAVIOR 2013-2015 1. Consumer As Problem Solver 2. As Economic Creature 3. As a Computer 4. As a Shopper 5. As a Reveler © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers WHAT IS CONSUMER BEHAVIOR?CONSUMER BEHAVIOR 2013-2015 Consumer Behavior is the Mental and Physical Activities undertaken to Acquire and Consume the Products and Services so as to fulfill Needs and Wants. Physical Activity: Buying a product; preparing a product for consumption, etc.  Mental Activity: Evaluating a product in your mind © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers NEED and WANTCONSUMER BEHAVIOR 2013-2015 NEED: A Discomforting Human Condition WANT: A Desire for a Specific Product so as to Alleviate That Condition Note that we do not limits needs to basic survival, nor do we think of wants as luxuries. Nor do we confuse product with needs (as in “I need coffee, therefore coffee is my need!”). © Open Mentis 2012 Read in the chapter about the merits of this conception of needs and wants. MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers THREE ESSENTIALS ofCONSUMER BEHAVIOR 2013-2015 CONSUMER BEHAVIOR 1. Exchange. An interchange Five Resources: between two parties where  Money each receives value  Time 2. Resources. Something that  Physical energy others value  Knowledge & Skills  Social capital 3. Value. Sum total of all benefits USER we receive from a product U Utilitarian S Social E Ego-Identity R Recreation/ © Open Mentis 2012 Hedonic MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers V. A. L. U. E.CONSUMER BEHAVIOR 2013-2015 What consumers seek in marketplace exchanges 1. Utility 2. Social 3. Ego/identity 4. Recreation Review pages 12-13 and discuss © Open Mentis 2012 Which values does this kinetic dress offer consumers? (Kinetic dress, Vilkas, from xslab.net) MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers Five ResourcesCONSUMER BEHAVIOR 2013-2015  Money  Time  Physical energy  Knowledge & Skills  Social capital Review these on p. 11 and then Score yourself on each on a 10-point scale © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers DOES MARKETING CREATE A NEED?CONSUMER BEHAVIOR 2013-2015 Would Marketing Create a Need for these products? In every consumer? Review p. 14-15 and discuss: © Open Mentis 2012 Consumers who might want these products--from where do they learn/acquire these needs/wants? MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers DOES MARKETING CREATE A NEED?CONSUMER BEHAVIOR 2013-2015 1. What consumers really need (for survival) are just the basics YES (e.g., food, clothing, shelter). As to all other products, consumers come to believe they need them because marketers tell them so. 2. Marketers create new products. Until then, consumers manage with whatever is available. By creating new products, marketers created consumer needs for those products. 3. Marketers package products and create messages that lure consumers. By themselves, many of the products would not have attracted consumers. 4. Marketers flood the media with commercials and deals; exposed to a barrage of commercial messages day-in and day- out, it is natural for consumers to succumb © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers DOES MARKETING CREATE A NEED?CONSUMER BEHAVIOR 2013-2015 1. To limit consumer needs to basic survival is to limit NO consumers to mere biological beings. As social and psychological beings, their social and psychological needs are just as important. 2. Products are not needs, so creating products cannot equal creating needs. Products are solutions to needs, which must already exist in consumers. 3. Many products fail despite heavy marketing. Thus, not marketing but the product’s benefits (including social and psychological benefits) cause consumers to want them. 4. Consumers don’t really trust marketers anyway. Rather, their product choices are based on advice from independent sources and influence from peers. © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers DOES MARKETING CREATE A NEED?CONSUMER BEHAVIOR 2013-2015 1. To limit consumer needs to basic NO 1. What consumers really need (for YES survival) are just the basics (e.g., food, survival is to limit consumers to mere clothing, shelter). As to all other biological beings. As social and products, consumers come to believe psychological beings, their social and they need them because marketers tell psychological needs are just as them so. important. 2. Marketers create new products. Until 2. Products are not needs, so creating then, consumers manage with whatever products cannot equal creating needs. is available. By creating new products, Products are solutions to needs, which marketers created consumer needs for must already exist in consumers. those products. 3. Many products fail despite heavy 3. Marketers package products and marketing. Thus, not marketing but the create messages that lure consumers. By product’s benefits (including social and themselves, many of the products would psychological benefits) cause not have attracted consumers. consumers to want them. 4. Marketers flood the media with 4. Consumers don’t really trust commercials and deals; exposed to a marketers anyway. Rather, their product barrage of commercial messages day-in choices are based on advice from and day-out, it is natural for consumers independent sources and influence to succumb from peers. © Open Mentis 2012 Now, decide which side you are on and why? MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers DOES MARKETING CREATE A NEED? NO 1. To limit consumer needs to basic survival is to limit YES 1. What consumers really need (for survival) are just theCONSUMER BEHAVIOR 2013-2015 consumers to mere biological beings. As social and basics (e.g., food, clothing, shelter). As to all other psychological beings, their social and psychological products, consumers come to believe they need them needs are just as important. because marketers tell them so. 2. Products are not needs, so creating products cannot 2. Marketers create new products. Until then, equal creating needs. Products are solutions to needs, consumers manage with whatever is available. By which must already exist in consumers. creating new products, marketers created consumer needs for those products. 3. Many products fail despite heavy marketing. Thus, not marketing but the product’s benefits (including 3. Marketers package products and create messages social and psychological benefits) cause consumers to that lure consumers. By themselves, many of the want them. products would not have attracted consumers. 4. Consumers don’t really trust marketers anyway. 4. Marketers flood the media with commercials and Rather, their product choices are based on advice from deals; exposed to a barrage of commercial messages independent sources and influence from peers. day-in and day-out, it is natural for consumers to succumb Now, decide which side you are on and why? The side you choose will impact your entire life as a marketer, hugely. If you adopt the “Yes” perspective, the kind of marketing you will create and embrace will be materially different from the © Open Mentis 2012 one created under the “No” perspective. Also materially different will be your life satisfactions! MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers What is the purpose of business?CONSUMER BEHAVIOR 2013-2015 And of marketing? Closely read this topic on p. 18 Now, do you still believe that it is: • To Make Money • To create consumer needs • To mastermind the consumer mind Or you believe, instead, that it is: (Fill-in your answers below) …....................................................... ………………………………………… © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The Age of the Empowered ConsumerCONSUMER BEHAVIOR 2013-2015  The age of Co-creation & personalization  The age of the authentic experience  The age of collaborative consumption  The Age of the Consumer in the driver’s seat Review this rich material on p. 20-22 and then discuss: Which of these trends do you © Open Mentis 2012 personally find useful in your own firm? MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The age of Co-creation, personalizationCONSUMER BEHAVIOR 2013-2015 Z a z z l e Anything On Zazzle.com, you can customize 49 products: clothing (T-shirts, hoodies, hats, etc.), accessories (ties, necklaces, bags, etc.), cards and postage, office products, home products, art posters, and cases for your iPhones, iPads, Blackberrys, and Samsung Galaxy S. Prices are reasonable (hats: $14.95; men’s ties: $29.95; greeting cards: $2.95; iPad cases: $49.95 and up, etc.), and the customized items are shipped within 24 hours! © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The age of the consumer in the driver’s seatCONSUMER BEHAVIOR 2013-2015 Zaarly This U.S. company, launched in May 2011, is eBay in reverse. Consumers post what they want, when, Get it here, and how much they are willing to pay for it. Then other consumers (as well as conventional sellers) offer to fulfill get it now the consumers’ needs. The notable feature is the kinds and varieties of needs that you can post: baby-sitting services, a wedding singer, a chance to ride in a sports car, interior design advice, and the like. You can post your order on the Web and also on your mobile with an app; no need to tell it where you are—the “hyper-local” app already knows. Zaarly is a first, in that it is buyer- driven, and delivers in the “here and now” (e.g., want coffee delivered in an hour). The company boasts over 9.1 million posts in 200 U .S. cities (as of November 2011). And now its name is also a verb: its Web site offers a step-by-step guide, “How to Zaarly”! © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The age of empowermentCONSUMER BEHAVIOR 2013-2015 David vs. Goliath On October 1, 2011, Molly Katchpole, a 22-year old Roger Williams University student, posted a petition on Change.org against Bank of America’s proposed $5-a- month debit card fee. By the month’s end, more than 300,000 people had signed the petition. And more than 20,000 people had pledged to close their Bank of America checking accounts. On November 1, the Big Bank aborted the plan! © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers Tattoo as a metaphorCONSUMER BEHAVIOR 2013-2015 The Tattoo is Already Inside the Consumer To satisfy the consumer, you have to bring that tattoo out. Tattoo : Desire The desire to wear a shoe like this is already inside the consumer The PURPOSE of MARKETING is to help the consumer experience the proverbial © Open Mentis 2012 tattoo that is already within him/her. MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers The Art of Romancing the ConsumerCONSUMER BEHAVIOR 2013-2015 Maxwell House In July 2011, Maxwell House Canada opened its second Optimism Café in Toronto (the first was in Montreal), giving away a free cup of coffee throughout the month of July. As part of its Brew Some Good campaign, it launched its Is Your Cup Half Full or Half Empty Optimism campaign. It invited consumers to take an optimism break and post a video clip or a letter on its Web site. Among the posted videos was this one : A blind person sat on a sidewalk with a cardboard sign that read “I’m blind. Please help.” Passersby occasionally dropped a few small coins. Then a woman came by and wrote something on the other side of the cardboard. For the rest of the day, people came by and emptied their pockets of change. The woman had changed the sign to read: “It is a beautiful day. But I can’t see it!” © Open Mentis 2012 MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1CONSUMER BEHAVIOR 2013-2015 INTRODUCTION Welcome to the Fascinating World of Consumers Review your understanding of CB 1. How does the book define Consumer NEEDS and WANTS and how it differs from your everyday speech. Why defining these in this way is helpful to marketers? 2. Do you believe marketing creates consumer needs? Explain. Also articulate how your belief on this will impact your work as a marketer? 3. How are today’s consumers more empowered? 4. What five resources all humans have and how they are usable in exchange? 5. What four values consumers seek (USER). How does your product respond to consumer search for these values? 6. What is the purpose of business? And of marketing? What should it be? © Open Mentis 2012 Learn Apply Experience MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods
    • 1 INTRODUCTION Welcome to the Fascinating World of Consumers Source of Material:CONSUMER BEHAVIOR 2013-2015 CONSUMER BEHAVIOR Human Pursuit of Happiness in the World of Goods (by Ban Mittal, Ph.D.) ISBN: 978-0-979-1336-3-3 (Paperback: 978-0-979-1336-4-0) Open Mentis Publishers Ban Mittal, Ph. D. I welcome and will highly value your comments. PowerPoint by: Ban@mycbbook.com © Open Mentis 2012 Ban@myvaluespace.com www.mycbbook.com www.openmentis.com MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods