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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