Understanding Consumer Behavior for Effective Marketing Strategy

1. Chapter 1 Consumer Behavior and Marketing Strategy

2. The Nature of Consumer Behavior • Consumer behavior is the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impact that these processes have on consumer and society.

3. Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that expect will satisfy their needs.

4. The acts , processes and social relationships exhibited by individuals, groups and organizations in the obtainment, use of and consequent experience with products, services, and other resources.

5. Application of consumer Behavior • Marketing Strategy • Regulatory Policy • Social Marketing • Informed Individuals

6. Marketing Strategy and Consumer Behavior Outcomes Individual Firm Society Consumer decision process Problem recognition Information search Alternative evaluation Purchase Use Evaluation Marketing Strategy Product, Price, Place, Promotion

7. Market segmentation Identify product related need sets Group customers with similar need sets Describe each group Select alternative segment(s) to select Market analysis Company, Competitors Conditions Consumers

8. Market Analysis components • The consumers • The Company • The Competitors • The Condition

9. The Competitors • If we are successful. Which firms will be hurt? • Of those firm that are injured, which have the capability to respond? • How are they likely to respond? • Is our strategy robust enough to withstand the likely action of our competitors, or do we need additional contingency plans

10. Market segmentation • Product related need sets • Consumer with similar need sets • Description of Each group • Attractive segment (s) to serve

11. Marketing Strategy • The products • Promotion/ Communication • Price • Place/ Distribution

12. Communications • With whom, exactly, do we want to communicate? • What effects do we want our communication to have on the target audience? • What message will achieve the desired effects on our audience? • What means and media should we use to reach the target audience? • When should we communicate with the target audience?

13. Consumer decision • Problem recognition • Information search • Alternative evaluation • Purchase • Use • Evaluatoin

14. Outcomes • Firms outcomes • Individual outcomes • Society outcomes

15. Firm outcomes • Product position • Sales • Customer satisfaction

16. Individual outcomes • Need satisfaction • Injurious consumption

17. Society outcomes • Economic outcomes • Physical environment outcomes • Social walfare

18. The Nature of Consumer Behavior External Influence Culture Subculture Demographics Social status Reference group Family Marketing activity Decision process Situations Problem recognition Information search Alternative evaluation Purchase Post purchase behavior Experience and Acqusition Self Concept & Lifestyle Internal Influence Perception Learning Memory Motives Personality Emotions Attitude Experience and Acqusition