Introduction: The Impact of the Digital Revolution on Consumer Behavior
Opening Vignette
Objectives of One-to-One Marketing
To attain customers Sell them more products Make a profit
Digital Revolution in the Marketplace
Allows customization of products, services, and promotional messages like never before Enhances relationships with customers more effectively and efficiently
Changes in the Business Environment
Access to Increased customer patterns consumer power and preferences Access to Evolution to other information -Web connection More products and PDAs services HDTV Interactive and instant exchanges Mobile phones
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.
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.
Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
Development of the Marketing Concept
Production Concept
Product Concept Selling Concept Marketing Concept
The Production Concept
Assumes that consumers are interested primarily in product availability at low prices Marketing objectives:
Cheap, efficient production Intensive distribution Market expansion
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
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
The Marketing Concept
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 Marketing objectives: Profits through customer satisfaction
Business Leaders Who Understood Consumer Behavior
Alfred Sloan, General Motors Colonel Sanders, KFC Ray Kroc, McDonalds
The Marketing Concept
A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.
IMPLEMENTATION OF MARKETING CONCEPT Consumer Research Segmentation Targeting Positioning
Consumer Research
The process and tools used to study consumer behavior. Two perspectives:
Positivist approach Interpretivist approach
Segmentation, Targeting, and Positioning
Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics Targeting: selecting one or more of the segments . Positioning: developing a distinct image for the product in the mind of the consumer.
Successful Positioning
Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product
The Marketing Mix
Product Price Place Promotion
Successful Relationships
Customer Value
Customer Retention
Customer Satisfaction
Societal Marketing Concept
A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.
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.
External Influence
Input
Firms Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution
Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture
Need Recognition Process Prepurchase Search Evaluation of Alternatives
Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience
Output
Purchase 1. Trial 2. Repeat purchase Postpurchase Evaluation
Figure 1-1: A Model of Consumer Decision Making
