Consumer Behavior

CONSUMER BEHAVIOR

MKT310

Consumer Behavior

SOME DEFINITIONS

Marketing Marketing exchange Marketing strategies Marketing concept Marketing mix Consumer behavior

Consumer Behavior

Wise Words

“The purpose of a business is to create and keep a customer.” (Ted Leavitt)

“You don’t sell products -- you sell expectations.” (Charles Revson)

Consumer Behavior

BASES OF CONSUMER BEHAVIOR

Motivations Processes External Influences ‘Rules of Behavior’

Consumer Behavior

TYPES OF CONSUMER DECISIONS

Consume vs. save Categories to consumer Brands to consume How and where to shop Usage Disposal

Consumer Behavior

SEGMENTATION

Consumer Behavior

SEGMENTATION

ISSUES BASES PROFILE SEGMENTS SELECT TARGET SEGMENTS DEVELOP MARKETING STRATEGIES

Consumer Behavior

BASES FOR SEGMENTING A MARKET

Geographic Demographic Psychographic Behavioral

Consumer Behavior

SELECTING TARGET SEGMENTS

Can you identify? Is basis relevant? Are they interested? Market potential? Accessible? Stable?

Consumer Behavior

Database Segmentation

Create customer database Determine best customers:score by RFM Rank customers from best to worst Determine profitability cutoffs

Consumer Behavior

WAYS TO MASS CUSTOMIZE

Customize services around standard product Mass-produce item customizable to each

client Point-of-sale customization Modularize components to customize end

products