organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
CHAPTER 1 4 Why study consumer behavior?
• Consumer behavior theory provides the
manager with the proper questions to ask • Marketing practice designed to influence consumer behavior influences the firm, the individual, and society • All marketing decisions and regulations are based on assumptions about consumer behavior
CHAPTER 1 5 Applications of Consumer Behavior
• Marketing Strategy • To satisfy target consumer needs • Regulatory Policy • To protect consumers • Social Marketing • To help consumers • Informed Individuals • To better understand how societies function
CHAPTER 1 6 Marketing Strategy & Consumer Behavior • What is Customer Value?
The difference between all the benefits derived from a total
product and all the costs of acquiring those benefits.
• What is required of a firm to provide superior customer value?
It must do a better job of anticipating and reacting to customer
needs than the competition does.
• What role does consumer behavior play in creating superior
customer value?
An understanding of consumer behavior is the basis for
marketing strategy formulation, and the consumer’s reaction to this marketing strategy ultimately determines the firms success or failure. CHAPTER 1 7 Marketing Strategy & Consumer Behavior
CHAPTER 1 8 Market Analysis Components
• The Consumers • The Company • The Competitors • The Conditions
CHAPTER 1 9 Market Segmentation • Market Segment: a portion of a larger market whose needs differ somewhat from the larger market. • Four steps to segmentation: • Identify product-related need sets • Group customers with similar need sets • Describe each group • Select an attractive segment(s) to serve
CHAPTER 1 10 Market Segmentation • What is market segmentation? Market segmentation involves aggregating prospective buyers into groups that: 1. have common needs 2. will respond similarly to marketing actions
• Why segment the market?
Market segmentation links market needs to an organization’s marketing programs.
• When does an organization segment the market?
When the potential increase in profits as a result of segmenting outweigh the costs of segmenting. CHAPTER 1 11 Market Segment Attractiveness
CHAPTER 1 12 Marketing Strategy • How will we provide superior customer value to our target market? • Marketing Mix • The Product • Communications • Price • Distribution • Service
