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Overview of Value Based Marketing (Ch.1)

Understand the influences on consumer behavior in value based marketing and learn how to connect with both left brain and right brain thinking through the power of storytelling.

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Overview of Value Based Marketing (Ch.1)

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  1. Value Based Marketing Professor Dave Beaty, Docbeaty@2btassociates.com The Power of Brands in Value Based Markets (Chs. 13 & 14) Value Based Marketing in B2B Industrial Markets (Ch. 5) Targeting Value Based Markets (Ch. 9) Value Based Marketing and Customer Value (Ch. 4) Formulating Value Based Marketing Plans (Chs.. 2, 3, 7 & 15) Overview of Value Based Marketing (Ch.1)

  2. Session 4 Understanding Consumer Behaviour in Value Based Marketing

  3. Why are Value Based Marketers concerned about consumer VALUES? Behaviour Attitudes Values South African Grown South African Made

  4. 3 WaysValue Based Marketers Try to UNDERSTAND How Consumers BEHAVE • By assessing their opinions, attitudes and how they value a firm’s products and services • To investigate what satisfies buyers, Value BasedMarketers examine the main factors that influence: the what,where, when and how consumers buy • By gaining a deeper understanding of the factors that affect buying behaviour, Value Basedmarketers are in a better position to predict how consumers will respond to marketing strategies

  5. So what are the Possible Influences on Consumer Behaviour

  6. External Situational Influences on the Buying Decision Process

  7. Perception Motives Lifestyle Psychological Influences Left Brain/Right Brain Self-Concept Attitudes Values Psychological & Social Influences on the Buying Decision Process

  8. Buyer Behaviour is influenced by your “Perception” of the product or service

  9. Perception Motives Lifestyle Psychological Influences Left Brain/Right Brain Self-Concept Attitudes Values Psychological & Social Influences on the Buying Decision Process

  10. Internal Motives and Needs that Create the Energy for Consumers to Buy • Physiological needs (thirst, hunger, etc.) • Safety needs • Social needs • Fear • Success • Things Consumers value in their lives

  11. Perception Motives Lifestyle Psychological Influences Self-Concept Left Brain/Right Brain Attitudes Values Psychological & Social Influences on the Buying Decision Process

  12. Strategic Marketing and Left Brain/ Right Brain Consumer Decision-Making

  13. Left Brain/Right Brain Questions • YOU’RE AT A PARK THAT HAS SEVERAL TRAILS, ONE OF WHICH YOU ENJOYED HIKING TWO YEARS AGO. YOU ARE MORE LIKELY TO: • SET OUT ON A NEW TRAIL TO DISCOVER NEW VISTAS (a) • FOLLOW THE SAME PATH YOU HIKED BEFORE, SO YOU CAN EXPERIENCE IT AGAIN. (B) • YOU’RE SUPERVISING CHILDREN ON A PLAYDATE IN A CROWDED PARK. YOUR APPROACH IS TO: • KEEP AN EYE ON THEM AND INTERVENE ONLY WHEN NECESSARY. (A) • GIVE THEM RULES ABOUT STAYING WITHIN CERTAIN PARAMETERS, THEN CAREFULLY ENFORCE THOSE RULES.(B) • YOU’RE AT A MUSEUM, STANDING IN FRONT OF A PAINTING THAT HAS THOUSANDS OF TINY DOTS OF COLOR THAT TOGETHER CREATE A LARGER IMAGE. YOUR FIRST INSTINCT IS TO: • MOVE CLOSER TO THE PAINTING TO ADMIRE THE DETAILS IN THE DOT PATTERN. (B) • TAKE A FEW STEPS BACK TO ENJOY THE FULL VIEW. (A) • WHICH ARE YOU MORE LIKELY TO DOWNLOAD AS THE NEXT APP ON YOUR SMARTPHONE? • A WORD GAME (B). • A PHOTOGRAPHY APP THAT LETS YOU ADD FILTERS TO YOUR SELFIES.(A) • (B) As a left-brainer, you tend to be a logical, cognitive thinker who looks for efficiency in life and makes rational, research-based decisions. • (A) As a right –brainer, your rely on creativity, emotion, innovative and intuitive reasoning 

  14. In Value Based Marketing, always remember the following: People remember how you made them feel, not always the information you gave them! Value Based Marketing is about tailoring Marketing Strategies to connect with both Left Brain and Right Brain Thinking Storytelling connects to customers’ Right Brain Thinking Value BasedMarketers know the power of Storytelling Marketers craft and integrate stories into the design and execution of their marketing strategies

  15. Some Examples of how Value Based Marketers use Stories to connect with Consumers’ Right Brain Thinking • Find stories related to their products or services and train sales staff to tell stories during sales negotiations • Use stories about their products or services to strengthen brand identity in the marketplace • Use stories in their advertising campaigns • Use storytelling for product marketing and promotional campaigns Source: Christie, P. 2009. Ever Leader a Storyteller. Midrand: KR Publishing

  16. Nedbank Inspirational Service (you TUBE)

  17. http://www.youtube.com/watch_popup?v=Hzgzim5m7oU&vq=medium

  18. Perception Motives Lifestyle Psychological Influences Self-Concept Learning Attitudes Values Psychological Influences on the Buying Decision Process

  19. Perception Motives Lifestyle Psychological Influences Self-Concept Learning Attitudes Values Psychological Influences on the Buying Decision Process • Factors that in part determine people’s general behaviour, thus influencing their behaviour as consumers • Operate on buyers internally, but are acted on by outside forces

  20. Self-Concept and Lifestyles • Self-Concept • View of one’s self • Can be positive or negative • Lifestyles • Individual’s pattern of living expressed through activities, interests and opinions

  21. Self Perception

  22. Social Influences on the Buying Decision Process The forces other people & factors that exert on one’s buying behaviour

  23. Social Influences The influence of Family and Work Roles Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons

  24. Social Influences (continued) • Reference group • Any group that positively or negatively affects a person’s values, attitudes or behaviour • Types of reference groups • Membership: an individual actually belongs • Aspirational: an individual aspires to belong • Disassociative: an individual does not want to belong • Opinion leaders • A reference group member who provides information about a specific sphere that interests reference group participants

  25. Social Influences on the Buying Decision Process • Digital Networks (read “Branding in the Digital Age” - Text) • Blogs (TheFoodSociety) • Wikis (Wikipedia) • Social Networks Social Networks Social network interfaces such as Facebook and Twitter allow consumers to create relationships with other individuals or groups in an online context, revealing connections that are otherwise hidden.

  26. Social Influences

  27. Social Influences

  28. VIDEO Shoppers bare all: What really influences retail purchase decisions? Factors influencing retail purchase decisions.

  29. Steps Consumers take in making a Purchasing Decision

  30. Step 1 Problem Recognition • Buyers generally make decisions about when to buy when they are driven to fulfill a need that is not currently satisfied. • Fast or Slow: Depends on the intensity of their need • Some consumers are unaware of their problems or needs – so Value BasedMarketers use sales personnel, advertising and packaging to help trigger recognition of such needs or problems

  31. Search for Information InternalSearch External Search Step 2. How do Buyers Search for Information?

  32. Information Search • Internal search • Buyers search their memories for information about products that might solve their problem • If they cannot retrieve information from memory, they then perform an external search • External search • Buyers seek information from outside source • May focus on communication with friends or relatives • Can involve comparison between brands • Independent sources such as Choice magazine (http://www.choice.com.au), Social Media, Google, etc.

  33. Step 3:How do Buyers Evaluate Alternatives? • Evoked set • They investigate a number of different brands views as alternatives for possible purchase • They assign a greater value to a brand they have heard of - than to one they have not • Evaluative criteria • What are the Objective and subjective characteristics that are important to a buyer – e.g. size, weight and dimensions of a laptop computer

  34. Step 4 - The Buyer’s Decision to Purchase • Buyer chooses the product or brand to be bought • Buyer chooses the seller • Buyer negotiates the terms of the transaction • Buyer makes the purchase – or terminates the process

  35. Step 5 - Post-Purchase Evaluation After their purchase, buyers usually evaluate the product and ask themselves the following questions: • Does its actual performance and/or quality standard meet my expectations? Buyers Remorse (Cognitive dissonance) • There could be doubts shortly after a purchase about whether the decision was the right one

  36. DiscussionQuestion • Have you ever experienced “Buyer’s Remorse” or heard of someone who experienced “Buyer’s Remorse”? • Describe what happened? • How did you or the person get over it (or did you)?

  37. WHAT IS IMPULSE BUYING? Purchases made immediately and solely on a “spur of the moment” - not planned!

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