40473280 Consumer Behaviour and Marketing Strategy Peter Olson Chapter 010 2

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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Transcript of 40473280 Consumer Behaviour and Marketing Strategy Peter Olson Chapter 010 2

Page 1: 40473280 Consumer Behaviour and Marketing Strategy Peter Olson Chapter 010 2

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: 40473280 Consumer Behaviour and Marketing Strategy Peter Olson Chapter 010 2

Influencing Consumer Behaviors

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter 10

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• Approaches to influencing overt consumer behavior– Obtain information about consumers’ affect,

cognition, and behaviors– Place marketing mix stimuli in the environment– Influence consumers’ affect and cognitions– Influence overt consumer behaviors– Consumer research data, sales, and market

share data

Consumer Behavior Influence Strategies

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Approaches to Influencing Overt Consumer Behaviors

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• Influencing overt consumer behavior critical

• Strategies influencing it:– Affective

• Marketing mix elements are designed to influence consumers’ affective responses in order to influence overt consumer behaviors

– Cognitive• Marketing mix elements are designed to influence

consumers’ cognitions in order to influence consumer behaviors

Consumer Behavior Influence Strategies cont.

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– Behavioral• Marketing mix elements are designed to influence

consumers’ overt behaviors somewhat directly

– Combined• Marketing mix elements are designed to influence

some combination of consumers’ affect, cognitions, and behaviors in order to influence other consumer behaviors

Consumer Behavior Influence Strategies cont.

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Strategies Designed to Influence Overt Consumer Behaviors

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Sales Promotion• An action focused marketing event whose

purpose is to have a direct impact on the behavior of a firm’s customers– Trade promotion

• Used to push products through the channel to consumers

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Sales Promotion cont.– Consumer promotion

• Persuade consumers to purchase products and visit retail outlets

• Influence the probability of purchase or other desired behaviors without necessarily changing prepurchase consumer attitudes about a brand

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Sales Promotion cont.– Types of consumer promotions

• Sampling• Price deals• Bonus packs• Rebates and refunds• Sweepstakes and contests• Premiums• Coupons

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Sales Promotion cont.• Four aspects of behavior that promotions

are designed to affect– Purchase probability– Purchase quantity– Purchase timing– Purchase location

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Purchase Probability• Consumer promotions are designed to

increase the probability that consumers will purchase a particular brand or combination of products– Subgoals of consumer promotions

• Get consumer to try a new product• Position a brand or company in the minds of

consumers• Obtain a brand switch• Develop brand loyalty

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Purchase Quantity• Design of consumer promotion influences

purchase of a brand

• Design is used to influence the number or size of units purchased

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Promotion Effects on Consumer Behavior

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Social Marketing• End goal is to benefit the target audience or

the broader society

• Concerned with influencing and changing consumers’ overt behavior– Increasing desired behaviors– Decreasing undesired behaviors

• Also used to influence affect and cognitions as an intermediate step

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A Strategic Model for Influencing Consumer Behaviors

• Marketing managers develop strategies to accomplish particular objectives– focus on influencing consumers’ affect,

cognitions, and behaviors– involve both long-term and short-term strategies

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Steps in Developing Consumer Behavior Influence Strategies

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Measure Current Levels of Consumer Affect, Cognition, and Behavior

• Methods used to measure overt behaviors– Information contact– Store contact– Product contact– Transaction– Funds access– Consumption and disposition– Communication

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Measure Current Levels of Consumer Affect, Cognition, and Behavior cont.

• Scanner cable method

• Two reasons to start strategy development– provide baseline data for determining the

effectiveness of the influence strategy– help to identify opportunities and threats in the

market

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Examples of Methods - Measure Overt Consumer Behavior

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Measure Strategic Effects• Why influence strategies fail

– Faulty objectives– Faulty strategy– Faulty implementation– Faulty measurement– Unanticipated competitive reactions or

consumer changes– Combination

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A Strategic Model for Influencing Consumer Behaviors- Marketing implications

• Need to influence consumers’ overt behavior to achieve organizational objectives

• Useful to follow a sequential process for developing successful strategies that allows success or failure to be measure

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Summary• Approaches to consumer behavior influence

strategies were discussed

• Strategies designed to influence overt consumer behaviors were demonstrated

• Sales promotion and social marketing were reviewed as areas that focus on overt consumer behaviors

• A strategic model for influencing consumer behaviors was presented