The document discusses consumer behavior and its importance for marketing functions of firms. It covers topics like changes in delivery factors, defining consumer behavior, external and internal influences on consumer decision making, and different concepts in consumer behavior like the marketing concept. The document emphasizes the need to understand consumer behavior to develop effective marketing strategies.
32. CB AND MARKETING STRATEGY: UNDERSTANDING OF CB IS BASIS FOR MARKETING STARTEGY FORMULATION. INDIVIDUAL, FIRM , SOCIETY CONSUMER DECISION PROCESS PROBLEM RECOGNITION INFORMATION SEARCH ALTERNATIVE EVALUATION,PURCHASE,USE,EVALUATION . MARKET ANALYSIS COMPANY,COMPETITOR,CONDITIONS,CONSUMERS. MARKET SEGMENTATION IDENTIFY PRODUCT RELATED NEED SETS,GROUP CUSTOMERS WITH SIMILAR NEEDS,DESCRIBE EACH GROUP,SELECT THE ATTRACTIVE SEGMENTS TO TARGET . MARKETING STRATEGY PRODUCT,PRICING,DISTRIBUTION,PROMOTION,SERVICES(CRUX: TO ADD VALUE VIS A VIS COMPETITOR. ALSO CALLED AS TOTAL PRODUCT. HERE THE PRODUCT IS SEND IN TARGET MARKET FORMULATION OF MARKETING STRATEGY HERE.
33. EXTERNAL INFLUENCES CULTURE SUBCULTURE DEMOGRAPHICS SOCIAL STATUS REFERENCE GROUPS FAMILY MARKETING ACTIVITIES INTERNAL INFLUENCES PERCEPTION LEARNING MEMORY MOTIVES PERSONALITY EMOTIONS ATTITUDE SELF CONCEPT & LIFESTYLE DECISION PROCESS SITUATIONS PROBLEM RECOGNITION INFORMATION SEARCH ALTERNATIVE EVALUATION AND SELECTION OUTLET SELECTION AN PURCHASE POST PURCHASE PROCESS NEEDS DESIRE EXPERIENCES AND ACQUISITIONS EXPERIENCES AND ACQUISITIONS
34. SEGMENT SIZE SGMENT GROWTH COMPETITOR STRENGTH CUSTOMER SATISFACTION WITH EXISTING PRODUCT FIT WITH COMPANY IMAGE FIT WITH COMPANY OBJECTIVE FIT WITH COMPANY RESOURCES DISTRIBUTION AVALIABLE INVESTMENT REQUIRED STABILITY/PREDICTIBILITY COST TO SERVE SUSTAINABLE ADVANTAGE AVAILABLE COMMUNICATION CHANNEL AVAILABLE RISK OTHERS -------- --------- --------- ---------- -------- ----------- ---------- ----------- ----------- ------------ -------------- ----------- -------------- --------- -------- CRITERION SCORE SCORE ON A 1 TO 10 SCALE, WITH 10 BEING MOST FAVOURABLE. MARKET SEGMENT ATTRACTIVE WORKSHEET
38. REMEMBER THIS…….. CONSUMER DON`T PURCHASE QUARTER-INCH DRILL BITS BUT THE ABALITY TO CREATE QUARTER- INCH HOLES.
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42. PRICE: AMOUNT OF MONEY ONE MUST PAY TO OBTAIN THE RIGHT TO USE THE PRODUCT
43. EVERYTING THE CUSTOMER MUST SURRENDER IN ORDER TO RECEIVE THE BENEFITS OF OWING/USING THE PRODUCT.
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47. Example: HULLY CORPORATION $700 MILLION BICYCLE MANUFACTURE. LAUNCED BICYCLE $ 159 CROSS SPORT: A CROSS BETWEEN MOUNTAIN BIKE AND THIN FRAMED 10 SPEED BICYCLE. AFTER RESEARCH FOCUSED GROUP AND PRODUCT CONCEPT TEST(CONSUMER ACCEPTENCE). LAUNCHED THROUGH MASS DISTRIBUTION. KMART , TOYS ‘R’ US. BUT FLOPPED THIS NEEDED GOOD KNOWLEDGE SALES PERSON, DEMAND INDIVIDUAL SALES ATTENTION NOT MASS DISTRIBUTION.
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50. C . D PROCESS INTERVENCES BETWEEN THE MARKETING STRATEGY AND OUTCOME
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53. B. CREATING SATISFIED CUSTOMERS. OUR TOTAL PRODUCT COMPETITOR TOTAL PRODUCT CONSUMER DECISION PROCESS SUPERIOR VALUE EXPECTED SALES PERCEIVED VALUE DELIVERED CUSTOMER SATISFIED
54. A. NEED SATISFACTION . ACTUAL NEED FULLFILLMENT AND PERCEIVED NEED FULLFILLMENT. EXAMPLE: FOOD SUPPLYMENT. YOU BELIVE BUT NO DIRECT HEALTH EFFECT OR EVEN NEGETIVE B. INJURIOUS CONSUMPTION YOU FULLFILL ONE NEED BUT THIS EFFECT THEIR ABILITY TO FULLFILL OTHER. EXAMPLE: MOST AMERICANS LIFESTYLE NOW, CANNOT RETAIL WHEN RETIREMENT. RESULT: FINANCIAL DISTRESS, FAMILY STRESS, BANKRUPTCY, BY PASS MEDICAL, DENTAL CARE OR EVEN HOMELESSNESS.
55. 10 MILLION AMERICAN SUFFER FINANCIAL LOSS GAMBLING. 10 AND 80 MILLION ALCHOLIC AND CIGRETTE SMOKERS. EVERY YEAR 25000 DIE RESULT OF ALCHOLIC RELATED TRAFFIC ACCIDENT.
57. WHY DO CONSUMER CARE ABOUT SOME PRODUCTS,BRANDS AND NOT OTHERS. SOME ARE HIGHLY MOTIVATED TO SEEK INFORMATION OTHERS – NO INTEREST. SO ARROW/FOCUS TOWARDS UNDERSTANDING CONSUMER INVOLVEMENT
62. SO INVOLVEMENT COGNATIVE AFFECTIVE(this effect more on behaviour-> decision making)
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65. SO AS A MARKETER:::::::::: SEE FOCUS INVOLVEMENT OF CUSTOMERS. WHAT CUSTOMER CONSIDER TO BE PERSONALLY RELEVANT IS IT A PRODUCT, BRAND, AN OBJECT, A BEHAVIOUR, EVENT, SITUATION, ENVIRONMENT. SEE WHAT END KNOWLEDGE/BASES IS IMPORTANT FOR INVOLVEMENT:
78. 3.PLANNING DETERMING HOW TO SOLVE PROBLEM TO REACH A GOAL 4.DECIDING COMPARING ALTERNATIVES AND SELECTING THE BEST. 5.THINKING COGNITIVE ACTIVITY THAT OCCURS DURING ALL THESES PROCESSES( THINKING PROCESS OF ALL ABOVE: FUNCTION OF C. SYSTEM: TO INTERPRET, MAKE SENCE OF AND UNDERSTANDING SIGNIFICANT ASPECTS OF THEIR PERSONAL EXPERIENCES:
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85. INFORMATION SEARCH IN CONSUMER DECISION. WHAT EVALUATIVE CRITERIA ARE NEEDED WHAT SOLUTIONS EXITS WHAT IS THE PERFORMANCE OF EACH SOLUTION ON EACH EVALUATIVE CRITERIOR INFORMATION SEARCH TERMINATED CAN A DECISION BE MADE YES INFORMATION SEARCH CONTINUOUS NO
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87. AWARENESS SET IBM APPLE NEC TOSHIBA COMPAQ HP FUJITSU SONY EVOKED SET: IBM APPLE COMPAQ INERT SET TOSHIBA SONY HP NEC INEPT SET FUJISTU 1 ST PREFERENCE WILL BUY FROM THIS LOT HE WILL BUY FROM THIS SET IF EVOKED SET IS NOT AVAILABLE. TOTALLY NOT INTERESTED CRUX: MARKETER NOT ONLY TO TARGET AWARENESS SET BUT ALSO EVOKED & INERT SET
88. INFORMATION SOURCES FOR A PURCHASE DECISION INFORMATION SOURCES PASSIVELY ACQUIRED ACTIVELY ACQUIRED ACTIVELY ACQUIRED EXTERNAL INFORMATION INTERNAL INFORMATION PAST SEARCHES PERSONAL EXPERIENCES LOW INVOLVEMENT LEARNING INDEPENDENTGROUP , PERSONALCONTACT, MARKETER INFO, EXPERIMENTAL.