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  • 12-12-06
  • 12-12-06
  • 12-12-06 We can already see, that teens, 18 - 24 year olds are more like to arrive earlier - so our challenge is how to we use that time to generate sales?
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • 12-12-06
  • Transcript

    • 1. Consumer Behavior: Its Origins andStrategic Applications 1-1
    • 2. Consumer BehaviorThe behavior that consumers display insearching for, purchasing, using,evaluating, and disposing of productsand services that they expect will satisfytheir needs. 1-2
    • 3. Customer Behaviour con’t…People do not buy products--- they buy benefitsOne product can have different benefits for different people – a watch to a time keeper – watch as a birthday gift 3 1-3
    • 4. Relevance of Studying consumer Behavior Consumers source or source of information: Is it the traditional source, or is it the new technology supported source such as the Internet, website or combination of all?• Consumers perception about the manufacturers: What does a consumer think about the product, its producer and what kind of perception he holds about the competitor producer and his products.• Consumers way of using and consuming the products and services: The marketer today is keen to study the ways and styles used by the consumer to use and consume the products. So that the marketer can learn himself as well as educate the consumer on the correct usage. Thus it is a two way process where the marketers learn about the consumer habit, usage pattern s and other consumption peculiarities and then educate him as to how to bring about improvement in them to draw better satisfaction from the products or services on the offer. 1-4
    • 5. • Consumers source of buying: The buying source of the consumers, their frequency of buying, and their reasons for buying are all enigmas that a marketer wants to understand and solve.• Consumers adaptability to changing faces of technology: How far is the consumer today able to keep pace with the ever changing technology? How far and how he has the new technology affected the buying decisions and buying habits of the modern consumer?• Comprehensive research into consumer behavior: The study of consumer behavior has to be more than simple researching into the buying habits of a consumer. The comprehensive research on consumer behavior has to be a dynamic process that must pace with the change in the behavior of the consumer and his buying habits, hit decision making and his response to decision influencers. 1-5
    • 6. Personal ConsumerThe individual who buys goods andservices for his or her own use, forhousehold use, for the use of a familymember, or for a friend. 1-6
    • 7. Organizational ConsumerA business, government agency, or otherinstitution (profit or nonprofit) that buysthe goods, services, and/or equipmentnecessary for the organization tofunction. 1-7
    • 8. Model of Consumer BehaviorStimulus Response Model – Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses. – Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses. 8 1-8
    • 9. Characteristics Affecting Consumer BehaviorKey Factors Culture SubcultureCultural – PunjabiSocial – Gujarati – RajasthaniPersonal – MarathiPsychological Social Class 9 1-9
    • 10. Characteristics Affecting Consumer BehaviorKey Factors Reference GroupsCultural – MembershipSocial – Aspirational groups – Opinion leadersPersonal FamilyPsychological – Children can influence Roles and Status 10 1 - 10
    • 11. Characteristics Affecting Consumer BehaviorKey Factors Age and life cycle OccupationCultural Economic situation LifestyleSocial – Activities, interests, and opinionsPersonal – Lifestyle segmentationPsychological Personality and self-concept 11 1 - 11
    • 12. Characteristics Affecting Consumer Behavior motives Motivation – Needs provideKey Factors for consumer behavior – Motivation research – Maslow’s hierarchy ofCultural needs PerceptionSocial – Selective attention,Personal selective distortion, selective retentionPsychological Learning – Drives, stimuli, cues, responses and reinforcement Beliefs and attitudes 12 1 - 12
    • 13. Characteristics Affecting Consumer BehaviorMaslow’s Hierarchy of Needs Self-actualization Esteem Needs Social Needs Safety Needs Physiological Needs 13 1 - 13
    • 14. Evolution of Marketing Thinking Consumer Behaviour14 1 - 14
    • 15. Evolution of Marketing Thinking Marketing has evolved through five stages: – in the product-focus stage, emphasis is on producing more and better products – at the sales-orientation stage, focus shift to selling, moving product from warehouse to customer – at the customer-interest stage, emphasis shifts to the customer and the satisfaction of needs – the customer-service stage places emphasis on customer service as well as good products – the customer-relationship stage sees a much longer-term focus on building relationships with customers 15 1 - 15
    • 16. The Production Concept• Assumes that consumers are interested primarily in product availability at low prices• Marketing objectives: – Cheap, efficient production – Intensive distribution – Market expansion 1 - 16
    • 17. 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 1 - 17
    • 18. 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 1 - 18
    • 19. 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 1 - 19
    • 20. The Marketing ConceptImplementing theMarketing Concept• Consumer • The process and Research tools used to study• Segmentation consumer behavior• Targeting • Two perspectives:• Positioning – Positivist approach – Interpretivist approach 1 - 20
    • 21. The Marketing ConceptImplementing theMarketing Concept• Consumer • Process of dividing Research the market into• Segmentation subsets of• Targeting consumers with common needs or• Positioning characteristics 1 - 21
    • 22. The Marketing ConceptImplementing theMarketing Concept• Consumer The selection of one Research or more of the• Segmentation segments to pursue• Targeting• Positioning 1 - 22
    • 23. The Marketing ConceptImplementing theMarketing Concept• Consumer • Developing a distinct image Research for the product in the mind of the consumer• Segmentation • Successful positioning• Targeting includes:• Positioning – Communicating the benefits of the product – Communicating a unique selling proposition 1 - 23
    • 24. This product is positioned as a solution to facial redness. 1 - 24
    • 25. Successful Relationships Customer Customer Value Retention Customer Satisfaction 1 - 25
    • 26. Successful RelationshipsValue, Satisfaction,and Retention • Defined as the ratio between• Customer the customer’s supposed Value benefits and the resources• Customer used to obtain those Satisfaction benefits • Perceived value is relative• Customer and subjective Retention • Developing a value proposition is critical 1 - 26
    • 27. Successful RelationshipsValue, Satisfaction,and Retention• Customer • The individuals perception of the performance of the product Value or service in relation to his or• Customer her expectations. Satisfaction • Customers identified based on• Customer loyalty include loyalists, apostles, defectors, terrorists, Retention hostages, and mercenaries 1 - 27
    • 28. Successful RelationshipsValue, Satisfaction,and Retention • The objective of providing value• Customer is to retain highly satisfied Value customers.• Customer • Loyal customers are key Satisfaction – They buy more products• Customer – They are less price sensitive Retention – They pay less attention to competitors’ advertising – Servicing them is cheaper – They spread positive word of mouth 1 - 28
    • 29. Customer Profitability-Focused Marketing• Follows costs and revenues of individual consumers• Categorizes them into tiers based on consumption behavior• A customer pyramid groups customers into four tiers 1 - 29
    • 30. Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead 1 - 30
    • 31. Traditional Marketing Concept Vs. Value and Retention Focused Marketing Table 1-2 Traditional Marketing Value and Retention Concept Focused MarketingMake only what you can sell instead Use technology that enablesof trying to sell what you make customers to customize what you makeDo not focus on the product; focus on Focus on the product’sthe need that it satisfies perceived value, as well as the need that it satisfiesMarket products and services that Utilize an understanding ofmatch customers’ needs better than customer needs to developcompetitors’ offerings offerings that customers perceive as more valuable than competitors’ offerings 1 - 31
    • 32. Impact of Digital Technologies• Consumers have more power and access to information• Marketers can gather more information about consumers• The exchange between marketer and customers is interactive and immediate and goes beyond the PC.• Marketers must offer more products and services 1 - 32
    • 33. Customers Search for Products weblink 1 - 33
    • 34. Consumer Behavior Is Interdisciplinary• Psychology ( It involved the study of consumer as an individual. The study found that every individual consumer has a complex set of deep seated motives which drive him towards specific buying behavior and socially acceptable decision.• Sociology : It studied the influences of society on the individual by close family groups as well as by the social order and the social classes he represents. 1 - 34
    • 35. • Cultural Anthropology: It studied the individual in relaation to the influences of culture and society he belonged to. It shows the individual behavior as an outcome of the cultural infleuence wielded on him by society over many generations and modified by the sucessive development inn socieety in its historical jourey. • Economics: The study of human behavior in this discipline is based on the understanding that the economic behavior is a fundamental component of human nature. The propagators of this thought process belived that all human being by nature behave economically. That is all human beings have a vested interest of expecting a gerater utility return on their scared resource. These resourcueus are time, effort and moneyCopyright 2007 by Prentice Hall 1 - 35
    • 36. A Model of Consumer Decision Making Sociocultural Environment External Influence Firm’s Marketing Efforts 1. Family 1. Product 2. Informal sources 2. PromotionInput 3. Other noncommercial 3. Price sources 4. Place (Channels of distribution) 4. Social class 5. People 5. Subculture and culture Consumer Decision Making Psychological Field Need 1. Motivation Recognition 2. Perception 3. Learning Prepurchase 4. PersonalityProcess Search 5. Attitudes Evaluation of Alternatives Experience Purchase Post-Decision Behavior 1. TrialOutput 2. Repeat purchase Postpurchase Evaluation 1 - 36
    • 37. Cinemas... 37 1 - 37
    • 38. THE CINEMA LANDSCAPEFact: Movie Theatres can currently be classified into 2 types: •The Foreign Model: •Smart, Re-furnished, Smaller Halls/ Multiplexes. •Focus on technology, décor, the consumer. •Tickets priced Rs.80/- to Rs. 100/- •Emphasis on the movie experience. •Owner has control over the canteen. •The Desi Model: •Older Theatres, strategically located. •Part of a city’s culture. •Suffer from an “edifice-complex” - mammoth sizes. •Usually have a strong canteen operator. •Dual canteens addressing Balcony & Stalls. •Tickets are priced at Rs. 50/- to Rs. 70/- and Rs. 20/- to Rs. 30/- 1 - 38
    • 39. THE CINEMA LANDSCAPEFact: Foreign Model can be further classified into 2types: •Multiplex Only: •Presence of 3 - 5 movie screens •Consumer gets a choice of movies and options of various time slots •Mall cum Multiplex •Presence of 3-5 movie screens within a shopping mall •Shopping mall with all leading brands Eating & Drinking - McDonald’s, Domino’s, Barista Shopping - Colorplus, Benetton, Reebok •Consumer has the choice of - Eating and Drinking, shopping, hanging out in addition to movie watching 1 - 39
    • 40. Lets understand the Cinema Consumer….. “Broad movie-going behaviour” 1 - 40
    • 41. How Often Do We Go To The Movies? One in three go to the movies once a month or more frequentlyOnce a week or more often 4 10 Heavy Several times a month 6 Twice a month 11 24 Medium Once a month 13 Once every 2 or 3 months 27 27 Light Once or twice a year 23 39 Very Light Less often 17 0% 50% 100% 1 - 41
    • 42. How Does Movie Behaviour Differ By Age? Teens and 18-24 year olds the biggest supporters of the cinema channelInfrequent % 2 17 12 11 17 29 29 23 23 27 29 23 26 27 48 40 33 26 25 24 23 19 17 16 17 Frequent 10 4 4 All 14+ 14-17 18-24 25-34 35-49 50+ Several x/mth plus 1/2 per month 2-3 mths 1-2 yrs Less Often 1 - 42
    • 43. So Why Go To The Movies? Movies = The Big Escape Two broad drivers: Getting out of The Movie the house with Experience my friends • Teens • TeensEscaping With My Friends Escaping Into The Big Screen 1 - 43
    • 44. ... Plus It’s A Practical Option Easy Permissible Convenient No Hassles– allowed to – cinema complexes – everyone likes it are everywhere– everyone can – wear what you – close to public want transport/home – familiar process/ know what to expect 1 - 44
    • 45. Who Do They Go To The Movies With? Under 18’s going with “the group” Over 18’s going with their partner 14-17 18-24 (50)% (101)% Self 5 2 2Opportunity: Partner 32 9 3 Focus on 7 socialising Family 21 6 5aspect of brand and movies 1-2 friends 21 24 27 3-5 friends 13 32 2 20 58 2 29 More than 5 friends 7 26 7 0% 50% 100% 45 1 - 45
    • 46. What Do They Do Before The Movies? 1 in 2 doing some activity before the movies. Mcd is a key gathering place for teens. Combining movies and dinner is popular with adults. 14-17 18-24 (50)% (101)% Did something 50 73 56 McDonalds 9 Opportunity: 35 8 14 Relocate sales to 41 14Other fast food 5 Concessions 6 6 Video games 6 19 10 Shopping 9 15 9Restaurant/Cafe 22 11 26 Pub/Bar 4 - 6 0% 50% 100% 46 1 - 46
    • 47. When They Get To The Cinema Most arrive in time to see everything, even the slides. Teens more likely to gather very early. 14-17 18-24 (50) (101) % %Early, to hang out with friends 10 25 11 10-15 mins before the show 56 48 54 78 As show began 22 26 20 Previews started 8 1 15 Movie started 1 - 1 0% 50% 100% 47 1 - 47
    • 48. Key Consumer InsightsMovie going is a popular past time amongst all consumersTeens and young adults are the heaviest usersThe movie experience is all about ‘escape’Movie going is a social occasion, that involves other activities and peopleConcessions are an integral part of the movie experience 48 1 - 48
    • 49. Coca-Cola Cinema strategy... 1 - 49
    • 50. The New Cinema Strategy Taking your Key Business Drivers …... VOLUME TRAFFIC ENTERTAINMENT ..and building a Business Plan which leverages the strength of the Coca-ColaSystem Refreshing Promoting Entertaining Movie Movie Movie goers going goers • Driving incidence • Building an • Promotional through association programs which promotional between Coca- relates Coca Cola programs and Cola brands and and Movie going operational the movie excellence experience 1 - 50
    • 51. Step 1: Persuading Consumers to PurchaseRefreshing Promoting Entertaining Movie Movie Movie goers going goers 1 - 51
    • 52. Refreshing Movie GoersObjective Driving VolumeStrategy Marketing Plan Operational ExcellenceResources • Merchandising • Service / Equipment • Promotions • Staff Training • Promotional AllowanceOutcome • Consumer Research • Post Evaluation Drive Gross Profit 1 - 52
    • 53. Step 2: Driving TrafficRefreshing Promoting Entertaining Movie Movie Movie goers going goers 1 - 53
    • 54. Promote Movie GoingObjective Drive TrafficStrategy Total Circuit Competitive Zones • Cross Promotions • Sponsorship Properties • Loyalty ProgramsResources • Promotional AllowanceOutcome • Cinema Tickets Drive Admission Revenue 1 - 54
    • 55. Step 3: Enhance The ExperienceRefreshing Promoting Entertaining Movie Movie Movie goers going goers 1 - 55
    • 56. Entertaining Movie GoersObjective: Build Coca-Cola brand preference Enhance the movie going experienceStrategy: Utilise cinema channel as a media - screen advertising - billboardResources: Media fund Creative development fund Consumer researchOutcomes: Increase consumer satisfaction 1 - 56
    • 57. Entertaining Movie GoersObjective: Build Coca-Cola brand preference Enhance the movie going experienceStrategy: Utilise cinema channel as a media - screen advertising - billboardResources: Media fund Creative development fund Consumer researchOutcomes: Increase consumer satisfaction 1 - 57
    • 58. SummaryUnderstand Consumer Cinema Going behaviorUnderstand Consumer NeedsUnderstand Consumer Purchase BehaviorFocus Marketing efforts on the Key Profit Drivers: – Refreshing Movie Goers – Promoting Movie Going – Entertaining Movie Goers 58 1 - 58
    • 59. Eight Roles in the Family Decision-Making ProcessROLE DESCRIPTIONInfluencers Family member(s) who provide information to other members about a product or serviceGatekeepers Family member(s) who control the flow of information about a product or service into the familyDeciders Family member(s) with the power to decided by one or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or serviceBuyers Family member(s) who make the actual purchase of a particular product or servicePreparers Family member(s) who transform the product into a form suitable for consumption by other family membersUsers Family member(s) who use or consume a particular product or serviceMaintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service 1 - 59
    • 60. Thanking You 1 - 60

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