© 2009 south-western, cengage learningmarketing 1 chapter 6 marketing starts with customers...

© 2009 South-Western, Cengage LearningMARKETINGMARKETING

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Chapter 6

MARKETING STARTS MARKETING STARTS WITH CUSTOMERSWITH CUSTOMERS

6-1 Understanding Consumer Behavior

6-2 What Motivates Buyers?

6-3 Influencing Consumer Decisions

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Focus Questions:Is the advertising

appealing to children, parents, or both? In what ways?

What is appealing about the product that would influence parents to purchase Dimetapp Cold & Allergy rather than another brand of medication?

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UNDERSTANDING CONSUMER BEHAVIOR

GOALSGOALSDescribe the importance of

understanding consumer behavior.Demonstrate an understanding of

consumers’ wants and needs.

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Consumer Behavior

Marketing Begins with Customers

Marketing Concept states:Must be responsive to consumers.

Consumer Behavior: the study of consumers and how they make decisions.

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Consumer Behavior

Successful business continually:

consider customers’ wants and needs

as they

plan & implement their marketing strategies.

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Consumer Behavior

Final consumersBuy products/services for personal use.

Business consumersBuy goods/services to produce and market

other goods/services or for resale.

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Consumers’ Wants and Needs

All consumers have wants and needs.

Want: an unfulfilled desire.Pizza, BMW, Vacation to France

Hair Highlights, Super Bowl Tickets

Need: anything you require to live.Nutritious Food, Sleep, Shelter from

Weather, Air to Breathe, Clean Water.

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Maslow’s Hierarchy of NeedsPage 158

Esteem (respect and recognition)

Social (friends, love, belonging)

Security (physical safety and economic security)

Physiological (food, sleep, water, shelter, air)

Self-Actualization (to realize your potential)

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Different People, Different Levels

Marketers must realize that people are at different levels on the hierarchy of needs.

Maslow’s Hierarchy of needs illustrates the progression people follow in satisfying their needs.

Marketers must understand consumer needs

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WHAT MOTIVATESBUYERS?

GOALSGOALSDistinguish the types of buying motives.Describe the five steps of the consumer

decision-making process.

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Motivation

Motivation: the set of positive or negative factors that direct individual behavior.

Buying Motives: the reason that you buy.Your decisions to spend money on products

and services are influenced by buying motives.

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3 Categories of Buying Motives

1) Emotional motives: reasons to purchase based to feelings, beliefs, or attitudes.

Forces of love, affection, guilt, fear, or passion often compel consumers to buy.

Hallmark Cards & Gifts – Love, Affection

Security Systems – Fear

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3 Categories of Buying Motives

2) Rational motives: reasons to buy based on facts or logic.

Factors of Rational: Saving time or money; Obtaining highest quality or greatest value.

Important for Expensive Purchases.

Business consumers try to avoid emotional.

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3 Categories of Buying Motives

3) Patronage motives: based on loyalty.Encourage consumers to purchase from a particular business or particular brand.

Loyalty is influenced by positive previous experiences or close identification with the product or business.

Low prices, high quality, friendly staff, great customer service, convenient location

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Customer Decision-Making Process

Buying Behavior: The decision process and actions of consumers as they buy.

Consumer Decision-Making Process: the process by which consumers collect and analyze information to make choices among alternatives.

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The ConsumerDecision-Making Process

Problem Recognition

Problem Recognition

Information Search

Information Search

Alternative Evaluation

Alternative Evaluation

PurchasePurchase

Postpurchase Evaluation

Postpurchase Evaluation

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Customer Decision-Making Process

Problem Recognition – Recognize a need, desire, or problem. How urgent is it? Time?

Information Search Common Problem - relatively easy to identifyNew Problem - more difficult to find information

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Customer Decision-Making Process

Alternative Evaluation – review information gathered and determine which is best.

Purchase – what product, what price, payment method, how to receive product.

Post-Purchase Evaluation – did it meet the need or solve the problem? Satisfied?

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INFLUENCINGCONSUMER DECISIONS

GOALSGOALSDescribe important influences on the

consumer decision-making process.Explain how consumers and

businesses use each of the three types of decision making.

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Influences on Buying Decisions

Many internal and external factors influence purchase decisions.

Two important factors are:Individual characteristicsCultural and social environment

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Individual Characteristics

Personal Identity: the characteristics & character that make a person unique.

Major influence on buying decisions

4 Important Factors:

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Personal Identity

1) Personality: an enduring pattern of emotions and behaviors that define an individual.

1) Attitude: a frame of mind developed from a person’s values, beliefs and feelings.

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Personal Identity

Self-Concept: an individual’s belief about his or her identity, image, and capabilities.

Lifestyle: the way a person lives as reflected by material goods, activities, and relationships.

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Personal Identity

2) Gender - Clothes, Grooming, Relationships, Activities, etc.

3) Ethnicity - Ancestry, Country of Origin, Language, Traditions

4) Age - type of products/services

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Cultural and Social Environment

Culture: the history, beliefs, customs & traditions of a group.

Strong Influence on: Values and Behaviors

Activities & Relationships, shared by people over many generations.

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Cultural and Social Environment

Social Environment: groups and organizations that people live and interact with on regular basis.

Community, Neighborhood, Social or Business Organization, Church

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Cultural and Social Environment

Reference Group: group of people or an organization that an individual admires, identifies with, and wants to be a part of.

Clubs, Social Organizations, Business Groups

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Types of Decision-Making

Consumers spend varying amounts of time and consider different factors when making decisions.

3 Types of Decision Making:

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Types of Decision-Making

1. Routine Decision Making

Purchase made frequentlyDo not require much thoughtFamiliar with product/brand

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Types of Decision-Making

2. Limited Decision Making

More time to consider decisionMaybe more expensive productMaybe purchase less frequentlyRoutine product is unavailable

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Types of Decision-Making

3. Extensive Decision Making

Go through all 5 D.M. StepsExpensive (home, car, vacation)Evaluate alternatives extensively

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Marketers’ Response

Marketers need to understand how customers make decisions so that they can provide customers with the right amount of info to convince consumers to purchase their product.

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Marketers’ Response

Marketers want the opportunity to explain the benefits of their products and to demonstrate how they can satisfy consumer needs.

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Marketers’ Response

Determine whether: Consumer considers alternatives

Have opportunity to explain their products and benefits

Consumer is brand loyalMake product available, remind

customer of the value of product