consumer behaviour and marketing
DESCRIPTION
TRANSCRIPT
CONSUMER BEHAVIOUR• Behaviors that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services.
• Focused on how an individual consumers or households make decisions to spend their available resources ( Time, Money, Effort ) on consumption related items.
• Study of When, Why, How and Where people do or do not buy a product.
• A blend of psychology, Sociology, Social anthropology and economics.
CONSUMER BEHAVIOUR AND MARKETING
• Marketing is the art and science of influencing consumer behaviour.
• Every aspect of marketing is tied to consumer behaviour.• Marketer need to understand the psychology of the
consumers.• Customer value is the difference between all the benefits
derived from a total product and all the costs of acquiring those benefits.
• Customer value requires the organisation to do a better job of anticipating and reacting to customer needs than the competitor.
• Buying behaviour includes Recognition of the problem (need to be met)search for informationconsideration of alternativespurchase, consumption, disposal • Marketers must be aware of the buying process
and consumer influences to be effective in appealing to, and meeting consumer needs
• Marketers should also aim to create value in the mind of the consumer by understanding what the consumer values
MARKET SEGMENTATION
• Finding out what kind of consumers with different needs exist.
• Consumers grouped according to their similar needs and characteristics.
• These market segments are described in terms of demographic, geographic location and media preferences.
TARGETING
• Preferred segment based on ability to meet the needs of this group.
• Choice depends on• How well the segment is served by other
manufacturers ?• How large is the segment• Do the organisation has the strength to appeal
to a particular group of consumers.
POSITIONING
• How consumers perceive your product in relation to others in the market
• Achieved through understanding the customers and applying relevant marketing mix strategies
MARKETING STRATEGY
• How an organisation will provide superior customer value to a target market
• This requires the formulation of consistent marketing mix which includes
ProductPricePromotionsPlaceService
THE PRODUCT• Product is anything a consumer acquires or
might acquire to meet a perceived need• Consumers generally buy for need satisfaction
not for physical product attributes.
PRICE
• Price is the amount of money paid to obtain the right to use the product.
• Price sometimes serves as a signals of quality.
PROMOTION
• Marketing promotions includes advertising, sales force, public relations packaging and any other signals that the firm provides about itself and the product.
DISTRIBUTION
• Distribution means having the product available where target customers can buy it. This is essential to the product’s success.
• Good channel decision requires a sound knowledge of where target customers shop for the product.
CONSUMER BEHAVIOUR AND ADVERTISING
Factors affecting consumer behavior
• Cultural and social influences– Culture– Social Class– Reference groups– Family– Demographics– Geography
• Psychological influences – Perception– Learning– Motives– Attitudes– Lifestyles
Cultural and social influences
• Culture
– Based on norms and values• Norms – boundaries a culture establishes for behavior• Values - broad preferences concerning appropriate
courses of action or outcomes
– Directly influences buying behavior
Cultural and social influences
• Social Class– Determined by factors like income , wealth,
education, occupation, family prestige, value of home, and neighborhood
– It is assumed that people in one class buy different products for different reasons.
Cultural and social influences
• Reference Groups
– Collection of people used as a guide for behavior in specific situations.
– Reference groups have three functions• They provide information• They serve as comparison• They offer guidance
Cultural and social influences
• Family– Family consists of two or more people who are
related by blood, marriage or adoption and live in the same household.
– Family helps develop a lifestyle (how you spend time and money and the kinds of activities you value)
Cultural and social influences
• Demographics– Are statistical, personal, social and economic
characteristics of a population including • Age• Gender• Education• Income• Occupation• Race/ ethnicity
Cultural and social influences
• Geographic location
– Difference in buying behavior exists between different regions
– Buying behavior also differs urban areas and rural areas.
Psychological Influences
• Perception– The process by which we receive information
through our five senses and assign meaning to it.• 3 sets of influences shape perception
– The physical characteristics of the stimuli– The relationship of the stimuli to the surroundings– The person’s state of mind.
• Some stimuli are selected over others• Selective perception
– Screening out some information that does not interest us and retaining that information that interests us.
Psychological Influences
• Selective exposure– Seeking information that is in line with our beliefs, values,
experiences, biases, attitudes.
• Selective distortion– Changing the meaning of information that is conflicting with
our beliefs
• Selective retention– The process we go through to retain information
Psychological Influences
A little exercise
Activity - Perception
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Activity - Perception
• Write down the ads which you remember.
• Write the reason for remembering every add.
• Discuss in class.
Psychological Influences• Learning– Perceptions lead to learning– We learn something that we perceive and attach
meaning to it.– Cognitive learning
• Perception -> Problem solving -> Insight
– Behavioral conditioning• Classic conditioning
– Pairing one stimulus with another that already is associated with a response
– e.g. associating sound of bell with end of school day
• Operant conditioning– Voluntary occurrences of behavior that are then rewarded ,
ignored or punished.
When you use a mobile while you drive, your head is somewhere else
Psychological Influences
• Motivation and Needs– Motive
• An internal force that forces you to behave in a particular way. • Advertisers study buying motives.
– Need• Basic forces that motivate us to do something• Primary needs: requirements to maintain life• Secondary: Acquired needs in response to our culture and
environment.• Needs change over time.
When did you last buy and why?
Psychological Influences
• Attitudes– A learned feeling you hold towards an object, a person
or an idea that leads to a particular behavior.
– Attitudes are resistant to change.
– Attitudes are learned, hence can be changed or replaced.
– Attitudes may be positive or negative, weak or strong.
Psychological Influence
• Lifestyle
– The way a person spends his time and money and the activities he likes to perform.
Role of consumer Behavior in Advertising
• Advertisements play an essential role in creating an image of a product in the minds of consumers.
• Advertising is basically a type of communication.• It attempts to persuade potential customers to purchase or
consume a product or service.• It is designed in such a way that it creates and reinforces
brand image and brand loyalty. • Advertisements must be catchy and communicate relevant
information to consumers.
Contd…
• Understanding the needs of the consumer is really important when it comes to creating the right advertisement for the right audience.
• Advertising is usually important for triggering the first time purchase of the product.
• it is only through advertisements; individuals are able to connect with your brand.
• Identify your target audience. The advertisement in some way must touch the hearts of the end-users for them to buy the product.
• The advertisement must show what the product is all about. It should, in a way give some kind of information about its price, benefits, usage, availability.
• Mercedes, I phone advertisement ought to be classy for people to recognize these products as status symbols.
• Advertisements meant for younger people (college goers, young professionals) ought to be colourful and trendy for them to be able to relate themselves with the product.
• Advertisements for insurance plans, medical benefits, hospitals ought to be sensible as they convey much serious information and target a mature segment of individuals altogether.