schiffman cb09 ppt 01
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consumer behaviourTRANSCRIPT
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Consumer Behavior,Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter 1
Consumer Behavior:Its Origins and
Strategic Applications
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Chapter Outline
Overview of Consumer Behavior
The Marketing Concept
The Marketing Mix and Relationships Digital Technologies
Societal Marketing Concept
A Simplified Model of ConsumerDecision Making
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Consumer Behavior
The behavior that consumers display in
searching for, purchasing, using,
evaluating, and disposing of products
and services that they expect will satisfy
their needs.
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Customers Search for Products
weblink
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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.
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Organizational Consumer
A business, government agency, or other
institution (profit or nonprofit) that buys
the goods, services, and/or equipment
necessary for the organization tofunction.
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Government Buying
weblink
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Development of the Marketing
ConceptProduction
Concept
Selling Concept
Product Concept
Marketing
Concept
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The Production Concept
Assumes that consumers are
interested primarily in product
availability at low prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
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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
Tendency toward Marketing Myopia
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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
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The Marketing Concept
Assumes that to be successful, a
company must determine the needs
and wants of specific target markets
and deliver the desired satisfactionsbetter than the competition
Marketing objectives:
Make what you can sell
Focus on buyers needs
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Discussion Question
What two companies do you believe
grasp and use the marketing concept?
Why do you believe this?
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
The process and
tools used to study
consumer behavior
Two perspectives:
Positivist approach Interpretivist
approach
Implement ing the
Market ing Concept
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weblink
http://www.acrwebsite.org/http://www.acrwebsite.org/ -
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
Process of dividing
the market into
subsets of
consumers with
common needs orcharacteristics
Implement ing the
Market ing Concept
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Segmentation Used
by Sports Illustrated
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Discussion Question
What products that you regularly
purchase are highly segmented?
What are the different segments?
Why is segmentation useful to the
marketer for these products?
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
The selection of one
or more of the
segments to pursue
Implement ing the
Market ing Concept
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
Developing a distinct image
for the product in the mindof the consumer
Successful positioning
includes:
Communicating thebenefits of the product
Communicating a unique
selling proposition
Implement ing the
Market ing Concept
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This product is
positioned asa solution to
facial redness.
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The Marketing Mix
Product
Price
Place Promotion
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Successful Relationships
CustomerValue
CustomerSatisfaction
CustomerRetention
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Successful Relationships
Customer
Value
Customer
Satisfaction
CustomerRetention
Defined as the ratio between
the customers perceivedbenefits and the resources
used to obtain those
benefits
Perceived value is relativeand subjective
Developing a value
proposition is critical
Value, Satisfactio n ,
and Retent ion
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Discussion Question
How does McDonalds create value for
the consumer?
How do they communicate this value?
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Successful Relationships
Customer
Value
Customer
Satisfaction
CustomerRetention
The individual's perception of
the performance of the productor service in relation to his or
her expectations.
Customers identified based on
loyalty include loyalists,apostles, defectors, terrorists,
hostages, and mercenaries
Value, Satisfactio n ,
and Retent ion
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Successful Relationships
Customer
Value
CustomerSatisfaction
CustomerRetention
The objective of providing value
is to retain highly satisfiedcustomers.
Loyal customers are key
They buy more products
They are less price sensitive
They pay less attention tocompetitors advertising
Servicing them is cheaper
They spread positive word of
mouth
Value, Satisfactio n ,
and Retent ion
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Customer Profitability-Focused
Marketing
Tracks costs and revenues of
individual consumers
Categorizes them into tiers based on
consumption behavior
A customer pyramid groups customers
into four tiers
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Customer Profitability-Focused
Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
T diti l M k ti C t V V l
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Traditional Marketing Concept Vs. Value
and Retention Focused Marketing
Table 1-2
Traditional Marketing
Concept
Value and Retention
Focused Marketing
Make only what you can sell instead
of trying to sell what you make
Use technology that enables
customers to customize what
you make
Do not focus on the product; focus on
the need that it satisfies
Focus on the products
perceived value, as well as the
need that it satisfies
Market products and services thatmatch customers needs better than
competitors offerings
Utilize an understanding ofcustomer needs to develop
offerings that customers
perceive as more valuable than
competitors offerings
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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 instantaneous
and goes beyond the PC.
Marketers must offer more products and
services
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Societal Marketing Concept
Marketers adhere to principles of social
responsibility in the marketing of their
goods and services; that is, they must
endeavor to satisfy the needs andwants of their target markets in ways
that preserve and enhance the well-
being of consumers and society as awhole.
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Consumer Behavior Is
Interdisciplinary
Psychology
Sociology
Social psychology Anthropology
Economics
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A Simplified Model of Consumer
Decision MakingFigure 1-1