Ch - 1(Intrroduction) consumer business.ppt

Consumer Behavior &
Technology
Ch # 01
Teacher: Ms. Yasra Aslam
Subject: Consumer Behavior
Book: Consumer Behavior
By: Leon Schiffman, Joseph Wisenblit & S. Ramesh Kumar
Teacher: Yasra Aslam 1-1

Text Book
 By:
 Leon G. Schiffman.
Joseh Wisenblit. S.
Ramesh Kumar
 12th edition
 Pearson Publication

Teacher: Yasra Aslam
Consumer Behaviour
The behaviour that consumers
display in searching for,
purchasing, using, evaluating,
and disposing of products and
services that they expect will
satisfy their needs.
1-3

Personal Consumer
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.
1-4

Example (video)

To Which Segment of Consumers Will
This Ad Appeal?

Two consumer Entities
1-7

Influence on Consumer Behavior
Internal Factors External Factors
Personality Reference Group
Life Style Family
Age Culture
Gender Economy
Life Cycle

Development of the Marketing
Concept
Production
Concept
Selling Concept
Product Concept
Marketing
Concept
1-9

The Production Concept
 Assumes that consumers are interested
primarily in product availability at
low prices
 Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
1-10

The Product Concept
 From the 1850s to the late 1920s
 Assumes that consumers will buy the
product that offers them the highest quality,
the best performance, and the most features
– Quality improvement
– Addition of features
 Tendency toward Marketing Myopia
1-11

The Selling Concept
 From the 1930s to the mid 1950s
 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
1-12

The Marketing Concept
 1950s to current - Focus on the customer
 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
1-13

Discussion
 What two companies do you believe
grasp and use the marketing concept?
 Why do you believe this?

Implementing the Marketing
Concept
Consumer Research
Segmentation
Targeting
Positioning
1-15

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
1-16

Discussion Questions
What products that you regularly
purchase are highly segmented?
What are the different segments?
Why is segmentation useful to the
marketer for these products?

Challenge for Positioning
Statement
 Products
Services

Tips for Creating a Positioning
Statement
 When writing and evaluating your positioning statement, keep
the following tips in mind:
 Keep it brief.
 Make it unique and memorable.
 It's true to your business' core values.
 It includes a credible promise of what the brand delivers to
consumers.
 It communicates how your business is different from the
competition.
 It's clear enough for use as a guideline to evaluate whether or
not business decisions align with the brand.

Evaluate your Brand Positioning
Statement
 Before you sign off on what you’ve
written, ask yourself the following
questions:
 Will it help inform your marketing
decisions?
 Does it effectively differentiate your
brand?
 Is it believable?
 Is it flexible enough to allow for growth
over time? (In other words, does it
position your brand for long-term
success?)
 Does it paint a clear mental image?
 Does it speak directly to your core
audience?
 Is it consistent, across all aspects
of your brand?
 Does it motivate your audience?
 Is it easily understood?
 Will it stand up to your
competitors?
 Is it unique? (Is it different from
your competitors’brand
positioning?)
 Is it memorable?
 Can you OWN it?

There are four required essentials to
establishing rock-solid brand positioning:
 Your audience: Who is your demographic? What are their pain
points.
 Your market: What is your market category? And, how does your
brand better relate to your audience, in comparison to your
competition?
 Your brand promise: Think back to your audience’s pain points
and then ask yourself, how does your brand solve those
problems? In the eyes of your audience, what are the greatest
benefits your brand offers?
 Your evidence: What irrefutable evidence can you offer to
demonstrate that your brand delivers on its promise?

Successful Positioning
Communicating the benefits of
the product, rather than its
features
Communicating a Unique Selling
Proposition for the product
1-22

How can you power a planet,
hungry for electricity without
damaging it?
1-23

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.
1-25

The Marketing Mix
Product
Price
Place
Promotion
1-27

Technology Benefits Consumers &
Marketers
 Allows customization of products, services, and
promotional messages like never before
 Enhances relationships with customers more effectively and
efficiently
 Click-to-call-ad
 E.g. hotel paid to Google when u call.
1-28

Value Exchange

More Precise Targeting
 Revamping distribution systems
– Direct distribution becomes more of an option (online
shopping)
 Pricing methods may need to be re-
evaluated
– Comparison shopping made easier
 Consumer research methods may change
– How do you measure web-based promotions?

Interactive Communication Channel
TV cable Boxes (two way
communication between consumer
& broadcaster.
Audi (most memorable road rip
story)
Netflix. PTCL Smart TV

Consumer decision % wise
Consumer point of view (trust) Percentage
Information source abt products & services 90 %
Online posts 70%
Company advertising 14%
Search online 80%
Fig Information
5.3 trillion Online ads per year
400 million Tweets per day
144,000 hr video Upload in YouTube per day
4.75 billion information content Share in face book per day

Interactive Communication
Channels
 Changes in segmentation strategies
 Re-evaluation of promotional budgets
– Reduced impact of television?
– More internet-based promotion?
 Integrated marketing becomes critical
– Using off-line promotions to drive consumers
to company’s website (and vice-a-versa)

Cont..,
 Cross Screen Marketing: the practice of carrying out an integrated
campaign across different “screens” (tablet, mobile, computer,
television, etc.) It's time for marketers to break out of what is
comfortable and address the behaviors of their audience.
 E.G. All brand ads

Customer Value, Satisfaction &
Retention
 Customer Value;
– Defined as the ratio between the customer’s perceived
benefits and the resources used to obtain those benefits.
 Customer Satisfaction:
– The individual's perception of the performance of the
product or service in relation to his or her expectations.

Cont..,
 Retention:
– The objective of providing value is to retain highly
satisfied customers.
– They buy more products
– They are less price sensitive
– Loyal customer
– They spread positive word of mouth
– Low customer turn over
– Make employee job easier

Discussion Questions
1-37
 How does McDonald’s create value for the
consumer?
 How do they communicate this value?

Customer Loyalty & Satisfaction
 The Loyalist
 The Defectors
 The Terrorist
 The Hostages
 The Mercenaries

1-39
Marketing Mix
Sociocultural influences
Communication Sources
Decision making process
Psychological Influences
Learning
Purchases
Post-Purchase evaluation
Re-Purchase
Trust & Loyalty
No- re- purchase
No-purchase
Input
Process
Output
A Model of Consumer Decision-Making

Ch - 1(Intrroduction) consumer business.ppt

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