Copyright Atomic Dog Publishing, 2003 Work Groups and Teams Chapter 14.
Copyright Atomic Dog Publishing, 2002 Chapter 1 Consumer Behavior & Marketing Management.
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Transcript of Copyright Atomic Dog Publishing, 2002 Chapter 1 Consumer Behavior & Marketing Management.
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights Consumer benefits Total product concept Market segmentation and
segmentation strategies Positioning Consumer decision-making Engel, Kollat, and Blackwell (EKB)
Model
Copyright Atomic Dog Publishing, 2002
Course Objectives Better understand why people do what they
do in the marketplace when they do it Better understand yourself as a shopper,
buyer, and consumer Improve yourself as a shopper, buyer, and
consumer Improve your current/future job performance Better understand marketer communications
and behaviors in the marketplace
Copyright Atomic Dog Publishing, 2002
Consumer Benefits People do not buy products or
services, they buy benefits Hence we make purchases not for
the products themselves, but for the benefits of the problems they solve or the opportunities they offer e.g., “always late” so a watch helps
solve problem; has stopwatch feature so now can keep track of “work out” times
Copyright Atomic Dog Publishing, 2002
Consumer Benefits Consumers seek
bundles of types of benefits:
Tangible benefits: e.g., a watch keeps good time; has leather band
Intangible benefits: e.g., the “reliability” reputation of the watch manufacturer; the image of the watch wearer
Copyright Atomic Dog Publishing, 2002
The Total Product Concept Total product: refers to the sum of benefits
offered by a product, service, outlet, etc. Basic core: bundle of utilitarian benefits (e.g., design,
features, etc.) Accessory ring: added-value benefits with no
apparent extra cost (e.g., store reputation, manufacturer prestige, convenient location, etc.)
Psychological ring: benefits resulting from the consumer’s feelings associated with owning/using the product (e.g., belonging, youthful, powerful, sexy, etc.)
Time: products/service “give” or “take” time; this can be “good” or “bad” (e.g., fast food versus conventional restaurant)
Copyright Atomic Dog Publishing, 2002
Market Segmentation
Market segmentation is the study of the marketplace in order to discover already existing viable groups of consumers who are similar or homogeneous in their approaches to choosing and/or consuming goods and services.
Copyright Atomic Dog Publishing, 2002
Segment Bounding Segment bounding is a means by which
marketers differentiate among consumers and among market segments Determine the “descriptors” of the
consumers/units in the segment (e.g., demographics, psychographics, benefits sought, product usage rate, type of retail outlet, etc.)
Determine specific “geographic location” of segment
Bound segments in “time” to ensure that all data is relevant and up to date for the time of use.
Copyright Atomic Dog Publishing, 2002
Segment Viability Four factors are
used to assess segment viability. Viable segments are: Of sufficient size Measurable Differentiated Reachable
Copyright Atomic Dog Publishing, 2002
Segmentation Strategies Mass marketing (undifferentiated
marketing): offering the same product to the entire consumer population
Concentrated marketing (focused or niche marketing): selecting one market segment, even though the product may also appeal to others
Differentiated marketing: selecting two or more different segments
Copyright Atomic Dog Publishing, 2002
Segmentation in the Global Marketplace There are two approaches to market
segmentation Localization: treating each country as a
separate market and seeking consumer segments accordingly
Intermarket segmentation (also called “standardization”): selecting groups of consumers who exhibit similar consumption behavior across different countries
Marketers emphasize similarities rather than differences across country markets
Copyright Atomic Dog Publishing, 2002
Consumer Benefits and Product Positioning Product positioning is the placement of a product,
service, outlet, etc. in the mind of the consumer There are five ways used to position products,
services, outlets, etc. On perceived benefits On image On attributes Against competitors Combination of two or more of the above
Repositioning: shifting position in the consumer’s mind through changes in important product, price, distribution, and promotional and/or personal selling benefits.
Copyright Atomic Dog Publishing, 2002
The Consumer Decision-Making Process A consumer decision
model is a means of describing the processes that consumers go through before, during, and after making a purchase (choice).
A model shows the causes or antecedents of a particular behavior and each of its results or consequences.
Copyright Atomic Dog Publishing, 2002
Engel, Kollat, and Blackwell (EKB) Model The EKB model is comprehensive and
shows the components of decision making and the relationships and interactions among them.
The five distinct parts of consumer decision making presented are: Input, information processing, a decision
process, decision process variables, and external influences
Copyright Atomic Dog Publishing, 2002
Input
Input includes all kinds of stimuli from our contact with the world around us: Our experiences, contact with others Marketer-controlled stimuli (e.g.,
advertising, store display, demonstrations) Other stimuli (e.g., personal recollections,
conversations with friends) External search
Copyright Atomic Dog Publishing, 2002
Information Processing Stimuli are processed
into meaningful information
Five methods of information processing: Exposure Attention Comprehension Yielding Retention
Copyright Atomic Dog Publishing, 2002
Decision Process It is triggered at any time during
information processing It consists of five steps:
Problem recognition Search Alternative evaluation Choice Outcomes (post-purchase evaluation and
behavior)
Copyright Atomic Dog Publishing, 2002
Decision Process Variables Those individual qualities that make
people/consumers unique. Decision process variables include
Motives Beliefs Attitudes Lifestyles Intentions Evaluative criteria Normative compliance and informational influence Other aspects of self