copyright © 2006 pearson education canada inc. 12-1 chapter 12 understanding marketing processes...
TRANSCRIPT
12-1
Copyright © 2006 Pearson Education Canada Inc.
Chapter 12
Understanding Marketing Processes and Consumer Behaviour
12-2 Copyright © 2006 Pearson Education Canada Inc.
Learning Objectives
Explain the concept of marketingExplain the purpose of a marketing plan and identify the four components of the marketing mixExplain market segmentation and show how it is used in target marketingExplain the purpose and value of market research
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Learning Objectives
Describe the key factors that influence the consumer buying process.Describe the international and small business marketing mixes.
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Marketing
Marketing Planning and executing the development,
pricing, promotion, and distribution of ideas, goods, and services
Value Relative comparison of a product’s benefits
versus its costs
Utility Ability of a product to satisfy a human want
or need
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Goods, Services, and Ideas
Consumer goods Products purchased by individuals for their
personal use
Industrial goods Products purchased by companies to use
directly or indirectly to produce other products
Services Intangible products, such as time, expertise,
or an activity that can be purchased
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Relationship Marketing
A type of marketing that emphasizes lasting relationships with customers and suppliers Stronger relationships can result in
greater long-term customer satisfaction and client retention
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The Marketing Mix
Marketing mix The combination of product, pricing,
promotion, and place (distribution) strategies used in marketing a product Also known as the four P’s of marketing
Marketing plan A detailed strategy for gearing the marketing
mix to meet consumer needs and wants
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Choosing the Marketing Mix
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ProductProduct
PromotionPromotion
PricePrice
PlacePlace
The basicThe basicdesign of design of
the productthe product
How much How much consumer consumer
payspays
Where andWhere andwhen the when the product isproduct is
ProductProductimage andimage andvisibilityvisibility
CustomerCustomerSatisfactionSatisfaction
Business Business
ProfitabilityProfitability
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Product Product A good, service, or idea that satisfies the
buyers’ needs and demands
Product differentiation The creation of a product or product image
that differs enough from existing products on the market to attract consumers
Mass customization Providing thousands of customers with
exactly the products they want Dell Computers
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Price
Price Choosing the right price to meet the firm’s
profit objectives and buyers’ purchasing objectives
May be low price strategy (salt) or high price strategy (mink coat)
Price must consider all costs operation and administration marketing research advertising
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Promotion
Choosing the right method of selling the product to the consumer Promotional tools
Advertising
Personal selling
Sales promotions
Publicity
Public relations
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Place (Distribution)
The part of the marketing mix concerned with getting products from producer to buyer Physical transportation Choice of sales outlets
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Target Market and Segmentation
Target market A group of potential customers who have
similar wants and needs
Segmentation Dividing a consumer market into
categories Selecting specific market segment(s) to
pursue
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Identifying Market Segments• Search for common traits Search for common traits or behaviours that or behaviours that will affect the purchasing decisionwill affect the purchasing decision•Geographic variablesGeographic variables•Country, region, neighbourhoodCountry, region, neighbourhood
•Demographic variablesDemographic variables•Age, income, gender, ethnic background, marital Age, income, gender, ethnic background, marital
•Psychographic variablesPsychographic variables•Psychological traits that a group has in common Psychological traits that a group has in common (motives, attitudes, activities, opinions)(motives, attitudes, activities, opinions)
•Product-use variablesProduct-use variables•How a group member uses a good (athletic, casual)How a group member uses a good (athletic, casual)
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Geographic Variables
Area of residence affects product consumption Rainfall and umbrellas Snowfall and snowmobiles or snow
blowers Hot summers and backyard pools
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Demographic Variables
AgeAge
IncomeIncome
OccupationsOccupations
EducationEducation
GenderGender
Family SizeFamily Size
Marital StatusMarital Status
EthnicityEthnicity
ReligionReligion LanguageLanguage
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Psychographic Variables
Psychological traitsPsychological traits::AttitudesAttitudesInterests and hobbiesInterests and hobbiesOpinionsOpinionsMotivationsMotivationsActivitiesActivities
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Behavioural Variables
Occasion for useBenefits soughtReasons for purchasing Loyalty level
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Market Research
The systematic study of what buyers need and how best to meet those needs Focuses on the marketing mix
elements Leads to more effective marketing Increases the accuracy and
effectiveness of market segmentation
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The Research ProcessStudy theCurrent
Situation
Experim entation
Observation
Survey
Focus Group
Select aResearch
M ethod
UsePrim ary
Data
UseSecondary
Data
Collect Data
M akeRecom mendations
PrepareReport
Analyze Data
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Observation
Viewing or monitoring human behaviourUseful for cases where actions occur automatically without thinking Grocery shopping
May be human observation or technological Supermarket scanners
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Survey
Administration of a questionnaire, a list of questions, to prospective buyers Relies on a reliable random sample Administered in person, via phone, mail,
or the internet Key issues include choosing appropriate
questions and ensuring honest answers
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Focus GroupA small discussion group of prospective customers or product usersAllows in-depth discussion of complex or subjective issues regarding products or servicesUsually a blind research study where participants do not know who the sponsor of the group isResearchers analyze the results by searching for common themes in participants’ feedback
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Experimentation
A controlled research design allows the determination of how consumers react to specific situations or appealsThe situations can be manipulated to compare responses to such things as shelf placement of products, package colours and design, advertising strategyVery costly
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Consumer Behaviour
The study of the processes by which customers come to purchase and consume a product or serviceInfluenced by Psychological factors Personal factors Social factors Cultural factors
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The Consumer Purchase Process
Post-PurchaseEvaluation
PurchaseDecision
Evaluationof
Alternatives
Inform ationSeeking
ProblemRecognition
Marketing FactorsMarketing Factors
ProductProduct
PricePrice
PlacePlace
PromotionPromotion
Purchase ProcessPurchase ProcessPersonal & Personal &
EnvironmentalEnvironmentalFactorsFactors
PsychologicalPsychological
CulturalCultural
SocialSocial
PersonalPersonal
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The Consumer Buying Process
Problem/need recognition Consumer becomes aware of a problem or
need May be automatic (the need for food or sleep) Due to a lifestyle change (new parents,
retirement)
Information seeking The information search may be long and
detailed, or short and limited Buying a car versus buying a candy bar
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The Consumer Buying Process
Evaluation of Alternatives Products are compared to identify the best
choice
Purchase Decision choice may be made based upon rational or
emotional motivations Rational motives include cost, quality,
usefulness Emotional motives include fear, sociability,
aesthetics, imitation of others
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Post-Purchase Evaluation
Marketers must market after the sale to ensure satisfaction & reduce purchase anxietyPurchase anxiety (buyer’s remorse) is fear on the part of purchasers that they have purchased the wrong product (especially crucial for expensive purchases)
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International Marketing Mix
Products may require substantial change before they can be marketed to different countriesPricing requires consideration of product manufacturing costs, transportation and deliveryPromotion must accommodate cultural differences and social traditionsDistribution may involve cooperation with other international firms and adherence to foreign packaging and labelling legislation
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Small Business Marketing Mix
Care must be taken to: Offer products to markets substantial
enough to support the organization Do a complete analysis of costs prior to
setting prices Develop a comprehensive promotional
program using more than personal selling
Choose a location that will attract and retain customers