McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

PART I: INTRODUCTIONPART I: INTRODUCTION

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CHAPTERCHAPTER 11

CONSUMER CONSUMER BEHAVIOR AND BEHAVIOR AND

MARKETING MARKETING STRATEGYSTRATEGY

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Consumer Behavior and Marketing Consumer Behavior and Marketing StrategyStrategy

Consumer behavior Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

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Applications of Consumer BehaviorApplications of Consumer Behavior

2.2. Marketing StrategyMarketing Strategy

4.4. Regulatory PolicyRegulatory Policy

6.6. Social MarketingSocial Marketing

8.8. Informed IndividualsInformed Individuals

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Applications of Consumer BehaviorApplications of Consumer Behavior

United Way Campaign United Way Campaign Provides an Example of Provides an Example of Social MarketingSocial Marketing

Courtesy United Way of Metropolitan Chicago

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Marketing Strategy and Consumer BehaviorMarketing Strategy and Consumer Behavior

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Market Analysis ComponentsMarket Analysis Components

2.2. The ConsumersThe Consumers

3.3. The CompanyThe Company

4.4. The CompetitorsThe Competitors

5.5. The ConditionsThe Conditions

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Market Segmentation

Market segmentationMarket segmentation is a portion of a larger market whose needs differ from the larger market.

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Market SegmentationMarket Segmentation

Market Segmentation Involves Four Steps:

3. Identifying Product-Related Need Sets

4. Grouping Customers with Similar Need Sets

5. Describing Each Group

6. Selecting an Attractive Segment(s) to Serve

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Market SegmentationMarket Segmentation

Market Segment Attractiveness WorksheetMarket Segment Attractiveness Worksheet

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Marketing StrategyMarketing Strategy

Marketing Strategy Marketing Strategy is the answer to the question: How will we provide superior customer value to our target market?

This requires the formulation of a consistent marketing marketing mixmix, which includes the

ProductProduct

PricePrice

CommunicationsCommunications

DistributionDistribution, and

ServicesServices

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Consumer DecisionsConsumer Decisions

The consumer decision process intervenes between the marketing strategymarketing strategy, as implemented in the marketing mixmarketing mix, and the outcomesoutcomes.

The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase.

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OutcomesOutcomes

2.2. Firm OutcomesFirm Outcomes

3.3. Individual OutcomesIndividual Outcomes

4.4. Society OutcomesSociety Outcomes

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OutcomesOutcomes

Creating Satisfied CustomersCreating Satisfied Customers

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The Nature of Consumer BehaviorThe Nature of Consumer BehaviorOverall Conceptual Model of Consumer BehaviorOverall Conceptual Model of Consumer Behavior

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The Nature of Consumer Behavior

External InfluencesExternal Influences

The following are the major external influences:

• Culture

• Demographics and social stratification

• Ethnic, religious, and regional subcultures

• Families and households

• Groups

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The Nature of Consumer Behavior

Internal InfluencesInternal Influences

Internal influences include:

• Perception

• Learning

• Memory

• Motives

• Personality

•Emotions

•Attitudes

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The Nature of Consumer Behavior

Self-Concept and LifestyleSelf-Concept and Lifestyle

Self-conceptSelf-concept is the totality of an individual’s thoughts and feelings about oneself.

LifestyleLifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.

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The Nature of Consumer Behavior

Situations and Consumer DecisionsSituations and Consumer Decisions

Consumer decisionsConsumer decisions result from perceived problems and opportunities.

Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior.consumer behavior.

Using Outdoor Media to Trigger Problem RecognitionUsing Outdoor Media to Trigger Problem Recognition

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