1. intro to cb
DESCRIPTION
....TRANSCRIPT
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Consumer Behavior: Meeting Changes and
Challenges
CHAPTERONE
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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.
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Two Consumer Entities
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Development of the Marketing 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
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 6 Chapter One Slide
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Marketing Concept
• 1950s to current - Focus on the customer!• Determine the needs and wants of specific
target markets• Deliver satisfaction better than competition
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 7 Chapter One Slide
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Discussion Questions
1. What two companies do you believe grasp and use the marketing concept?
2. Why do you believe this?
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Societal Marketing Concept
• Considers consumers’ long-run best interest
• Good corporate citizenship
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The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• The process and tools used to study consumer behavior
Embracing the Marketing Concept
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The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• Process of dividing the market into subsets of consumers with common needs or characteristics
Implementing the Marketing Concept
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Discussion Questions
1. What products that you regularly purchase are highly segmented?
2. What are the different segments?3. Why is segmentation useful to the marketer
for these products?
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 12 Chapter One Slide
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The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
The selection of one or more of the segments identified to pursue
Implementing the Marketing Concept
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The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• Developing a distinct image for the product in the mind of the consumer
• Successful positioning includes:– Communicating the benefits
of the product– Communicating a unique
selling proposition
Implementing the Marketing Concept
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The Marketing Mix
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Customer Value, Satisfaction, Trust, and Retention
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Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
• Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits
• Perceived value is relative and subjective
• Developing a value proposition is critical
Value, Satisfaction, Trust, and Retention
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Discussion Questions
• How does McDonald’s create value for the consumer?
• How do they communicate this value?
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Successful Relationships
• Customer Value
• Customer Satisfaction
• Customer Trust• Customer
Retention
• The individual's perception of the performance of the product or service in relation to his or her expectations.
• Customer groups based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
Value, Satisfaction, Trust, and Retention
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Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
• Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a long-standing relationship with customers.
Value, Satisfaction, Trust, and Retention
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Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
• The objective of providing value is to retain highly satisfied customers.
• Loyal customers are key– They buy more products– They are less price
sensitive– Servicing them is cheaper– They spread positive
word of mouth
Value, Satisfaction, Trust, and Retention
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Top 10 Ranked Indian Companies in Terms of Consumers’ Trust and Respect of Privacy
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Customer Profitability-Focused Marketing
• Tracks costs and revenues of individual consumers
• Categorizes them into tiers based on consumption behavior
• A customer pyramid groups customers into four tiers
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 23 Chapter One Slide
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Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide24
THE 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 product’s 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 develop offerings that customers perceive as more valuable than competitors’ offerings.
Research consumer needs and characteristics. Research the levels of profit associated with various consumer needs and characteristics.
Understand the purchase behavior process and the influences on consumer behavior.
Understand consumer behavior in relation to the company’s product.
Realize that each customer transaction is a discrete sale.
Make each customer transaction part of an ongoing relationship with the customer.
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Impact of Digital Technologies
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 25 Chapter One Slide
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The Mobile Consumer
• Wireless Media Messages will expand as:– Flat-rate data traffic
increases– Screen image
quality is enhanced– Consumer-user
experiences with web applications improve
26 Chapter One Slide
Penetration of Internet Usage Among Mobile Subscribers in 16 Countries - FIGURE 1.3
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Consumer Behavior Is Interdisciplinary
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 27 Chapter One Slide
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A Simple Model of Consumer Decision Making - Figure 1.4
Chapter One Slide28Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall