Consumer Behavior: Meeting Changes and Challenges CHAPTE R ONE
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ConsumerBehavior:
MeetingChanges and
Challenges
CHAPTER
ONE
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To Which Segment of Consumers Will This Ad
Appeal?
Chapter One Slide4
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A Segment of ConsumersWho are Environmentally
Concerned
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Consumer Behavior
• The behavior that consumers displayin searching for, purchasing, using,
evaluating, and disposing of productsand services that they expect willsatisfy their needs.
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Two Consumer Entities
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Development of theMarketing Concept
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Production Orientation
• From the 1850s to the late 1920s• Companies focus on production
capabilities• Consumer demand exceeded supply
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Sales Orientation
• From the 1930s to the mid 1950s• Focus on selling• Supply exceeded customer demand
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Marketing Concept
• 1950s to current - Focus on thecustomer!
•
Determine the needs and wants of specific target markets• Deliver satisfaction better than
competition
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Discussion Questions
1. What two companiesdo you believe grasp
and use the marketingconcept?2. Why do you believe
this?
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Societal Marketing Concept
• Considersconsumers’ long-
run best interest• Good corporate
citizenship
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The Marketing Concept
• ConsumerResearch
• Segmentation• Market
Targeting• Positioning
• Process of dividingthe market intosubsets of consumers with
common needs orcharacteristics
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Implementing theMarketingConcept
Chapter One Slide 13
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Discussion Questions
1. What products that you regularlypurchase are highly segmented?
2. What are the different segments?3. Why is segmentation useful to the
marketer for these products?
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The Marketing Concept
• ConsumerResearch
• Segmentation• Market
Targeting• Positioning
The selection of oneor more of thesegments identifiedto pursue
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Implementing theMarketingConcept
Chapter One Slide 15
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The Marketing Concept
• ConsumerResearch
• Segmentation• Market
Targeting• Positioning
• Developing a distinct imagefor the product in the mindof the consumer
• Successful positioningincludes:
– Communicating thebenefits of the product
– Communicating a uniqueselling proposition
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Implementing theMarketingConcept
Chapter One Slide 16
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The Marketing Mix
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Customer Value,Satisfaction, Trust, and
Retention
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Successful Relationships
• CustomerValue
• CustomerSatisfaction
• Customer Trust
• Customer
Retention
• Defined as the ratiobetween thecustomer’s perceivedbenefits and theresources used toobtain those benefits
•
Perceived value isrelative and subjective• Developing a value
proposition is criticalCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Value,Satisfaction,Trust, and Retention
Chapter One Slide 19
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Discussion Questions
• How doesMcDonald’s
create value forthe consumer?• How do they
communicate thisvalue?
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Successful Relationships
• CustomerValue
• CustomerSatisfaction
• Customer Trust
• Customer
Retention
• The individual'sperception of theperformance of theproduct or service inrelation to his or her
expectations.• Customer groups
based on loyaltyinclude loyalists,apostles, defectors,Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Value,Satisfaction,Trust, and Retention
Chapter One Slide 21
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Successful Relationships
• CustomerValue
• CustomerSatisfaction
•
Customer Trust• Customer
Retention
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• Establishing andmaintaining trustis essential.
• Trust is thefoundation formaintaining along-standingrelationship with
customers.
Value,Satisfaction,Trust, and Retention
Chapter One Slide 22
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Successful Relationships
• CustomerValue
• CustomerSatisfaction
•
Customer Trust• Customer
Retention
• The objective of providing value is toretain highly satisfied
customers.• Loyal customers are
key – They buy more
products – They are less price
sensitive – Servicing them is
cheaperCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Value,Satisfaction,Trust, and Retention
Chapter One Slide 23
T 10 R k d U S C i i
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Top 10 Ranked U.S. Companies inTerms of Consumers’ Trust and Respect
of Privacy
Table 1.2Top 10Companies
• American Express
• eBay• IBM• Amazon•
Johnson & Johnson• Hewlett-Packard• U.S. Postal
ServiceCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 26
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Customer Profitability-Focused Marketing
• Tracks costs andrevenues of individual
consumers• Categorizesthem into tiersbased onconsumptionbehavior
• A customerpyramid groupscustomers intofour tiersCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall 25Chapter One Slide
THE TRADITIONAL MARKETING VALUE- AND RETENTION-
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THE TRADITIONAL MARKETINGCONCEPT
VALUE- AND RETENTION-FOCUSED MARKETING
Make only what you can sell instead of trying to sell what you make.
Use technology that enables customersto customize what you make.
Do not focus on the product; focus onthe need that it satisfies.
Focus on the product’s perceived value,as well as the need that it satisfies.
Market products and services thatmatch customers’ needs better than
competitors’ offerings.
Utilize an understanding of customerneeds to develop offerings that
customers perceive as more valuablethan competitors’ offerings.
Research consumer needs andcharacteristics.
Research the levels of profit associatedwith various consumer needs andcharacteristics.
Understand the purchase behaviorprocess and the influences on consumerbehavior.
Understand consumer behavior inrelation to the company’s product.
Realize that each customer transactionis a discrete sale.
Make each customer transaction part of an ongoing relationship with thecustomer.
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Impact of DigitalTechnologies
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The Mobile Consumer
• Wireless MediaMessages willexpand as:
–
Flat-rate datatraffic increases – Screen image
quality isenhanced
– Consumer-userexperienceswith webapplicationsimprove
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Penetration of Internet Usage AmongMobile Subscribers in 16 Countries -
FIGURE 1.3
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Consumer Behavior IsInterdisciplinary
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