1 what is cb and its relevance in marketing

8/3/2019 1 What is CB and Its Relevance in Marketing

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Global Consumer Behavior

What is Consumer Behavior and itsRelevance in Marketing


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Slide 2

What is Consumer Behavior?

The study of the processesinvolved when individuals

or groups select, purchase,use, or dispose ofproducts, services, ideas,or experiences to satisfyneeds and desires


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Slide 3

Consumer Behavior is a Process


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Slide 4

Actors in Consumer Behavior

Consumer: A person who identifies a need ordesire, makes a purchase, and then disposes ofthe product

Purchaser vs. user vs. influencer Organization/group as consumer


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Slide 5

Discussion

People play different roles and their consumptionbehaviors may differ, depending on the particular rolethey are playing. State whether you agree or disagree

with this perspective, giving examples from yourpersonal life.


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Slide 6

Consumers Impact on Marketing

Understanding consumer behavior is goodbusiness

Understanding people/organizations to satisfyconsumers needs

Knowledge and data about customers

Help to define the market

Identify threats/opportunities to a brand


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GCBSlide 7

Marketing Concept

Assumes that to be successful, a company

must determine the needs and wants ofspecific target markets and deliver thedesired satisfactions better than the

competitionMarketing objectives:

+ Make what you can sell+ Focus on buyers needs


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Consumer Research

Segmentation

Targeting

Positioning

Slide 8

Implementing the MarketingConcept

The process and tools used to study consumerbehaviorTwo perspectives: Positivist approach Interpretivist approach

Process of dividing the market into subsets ofconsumers with common needs or characteristics

The selection of one or more of the segments topursue

Developing a distinct image for the product in the

mind of the consumerSuccessful positioning includes:

Communicating the benefits of the product

Communicating a unique selling proposition


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Segmenting Consumers:Demographics

Statistics that measureobservable aspects of apopulation, such as

Age

Gender

Family structure

Social class/income

Race/ethnicity

Geography


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Segmenting Consumers: Lifestyles

Psychographics

The way we feelabout ourselves

The things we value The things we do in

our spare time


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Tapping into Consumer Lifestyles

Relationship marketing: interact withcustomers regularly; give them reasons tomaintain a bond with the company

Database marketing: tracking specificconsumers buying habits and craftingproducts and messages tailored preciselyto peoples wants


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Slide 13

Customer

Value

Customer

Satisfaction

CustomerRetention

Successful Relationships

Defined as the ratio betweenthe customers perceivedbenefits and the resourcesused to obtain those benefits

Perceived value is relative andsubjective

Developing a value propositionis critical

The individual's perception ofthe performance of the productor service in relation to his orher expectations.

Customers identified based onloyalty include loyalists,apostles, defectors, terrorists,hostages, and mercenaries

The objective ofproviding value is toretain highly satisfiedcustomers.

Loyal customers are key

They buy moreproducts

They are less pricesensitive

They pay lessattention tocompetitorsadvertising

Servicing them ischeaper

They spread positiveword of mouth


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Slide 14

Tracks costs and revenues of individual consumers

Categorizes them into tiers based on consumption behavior

A customer pyramid groups customers into four tiers

Customer Profitability Focused Marketing

Tier 1: Platinum

Tier 2: Gold

Tier 3: Iron

Tier 4: Lead


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Traditional Marketing Concept vs.Value and Retention Focused

Marketing

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 that

match customers needs better

than competitors offerings

Utilize an understanding of

customer needs to developofferings that customers perceiveas more valuable than competitorsofferings


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Slide 16

The Global Consumer

People united by commondevotion to:

Brand name consumergoods

Movie stars

Celebrities

Leisure activities

Pressure to understandsimilarities and differencesof customers in various

countries


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Popular Culture

Music

Movies

Sports

Books

Celebrities

Entertainment

Marketers influencepreferences for movieand music heroes,

fashions, food, anddecorating choices.


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Consumer-Generated Content

When everydaypeople voice theiropinions aboutproducts, brands, and

companies on blogs,podcasts, and socialnetworking sites suchas Facebook


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Slide 19

Virtual Consumption

Impact of the Web on consumer behavior

24/7 shopping without leaving home

Instantaneous access to news

Handheld devices & wireless communications

C2C e-commerce

Virtual brand communities.

Consumer chat rooms

Wired Americans spend

Less time with friends/family

Less time shopping in stores More time working at home after hours

But, many report that e-mail strengthens family ties


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The Meaning of Consumption

People often buy products not for what they do,but for what they mean

Consumers can develop relationships withbrands:

Self-ConceptAttachment

Nostalgic Attachment

Interdependence Love


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Do Marketers Create ArtificialNeeds?

Need: a basicbiological motive

Want: one way thatsociety has taught usthat the need can besatisfied

Objective of marketing: create awareness thatneeds exist, not to create needs

versus


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Specific Needs and BuyingBehavior

NEED FOR ACHIEVEMENT

Value personal accomplishment

Place a premium on productsthat signify success (luxury

brands, technology products)

NEED FOR AFFILIATION

Want to be with other people

Focus on products that are usedin groups (alcoholic

beverages, sports bars)

NEED FOR POWER

Control ones environment

Focus on products that allow

them to have mastery oversurroundings (muscle cars,loud boom-boxes)

NEED FOR UNIQUENESS

Assert ones individual identity

Enjoy products that focus on

their unique character(perfumes, clothing)


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An Appeal to Ones Need forSafety

1 what is cb and its relevance in marketing

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