The impact of the digital revolution on consumer behaviorPresentation Transcript
Chapter 1 Introduction: The Impact of the Digital Revolution on Consumer Behavior
Objectives of One-to-One Marketing
To attain customers
Sell them more products
Make a profit
Digital Revolution in the Marketplace
Allows customization of products, services, and promotional messages like never before
Enhances relationships with customers more effectively and efficiently
Changes in the Business Environment
Increased consumer power
Access to information
More products and services
Interactive and instant exchanges
Access to customer patterns and preferences
Evolution to other -Web connection
The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
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.
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept
The Production Concept
Assumes that consumers are interested primarily in product availability at low prices
Cheap, efficient production
The Product Concept
Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features
Addition of features
Tendency toward Marketing Myopia
The Selling Concept
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
Sell, sell, sell
Lack of concern for customer needs and satisfaction
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
Profits through customer satisfaction
Can you name companies that are working on marketing concept?
The Marketing Concept
A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.
Implementing the Marketing Concept
The process and tools used to study consumer behavior.
Positivist approach: objective and empirical, seeks cause behaviour, studies are generalized to larger audience.
Interpretivist approach: qualitative based on small sample, tries to look out for common patterns of operative values across consumption situation.
Segmentation, Targeting, and Positioning
Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics
Targeting: selecting one ore more of the segments to pursue
Positioning: developing a distinct image for the product in the mind of the consumer
Communicating the benefits of the product, rather than its features
Communicating a Unique Selling Proposition for the product
The Marketing Mix
Successful Relationships Customer Value Customer Satisfaction Customer Retention
Types of Customers on Satisfaction
Loyalists : keep purchasing the brand
Apostles : provide word of mouth
Defectors: neutral with brand and stop buying
Terrorists: negative experience and negative WOM
Hostages: not happy still buy product
Mercenaries: very satisfied, no real loyalty.
Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead
Societal Marketing Concept
A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.
The Societal Marketing Concept
All companies prosper when society prospers.
Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision.
Requires all marketers adhere to principles of social responsibility.
Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Output Process Input External Influence Consumer Decision Making Post-Decision Behavior Postpurchase Evaluation Purchase 1. Trial 2. Repeat purchase Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Figure 1-1 : A Model of Consumer Decision Making