Buyers Behavior: Marketing Strategy and Consumer Behavior

What is consumer behavior?

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

How does this help marketers?

1. better segment and target consumers

2. design products and services

3. anticipate consumer reactions

4. build a loyal brand

Marketing

The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers clients partners and society at large

Marketing Strategy

process for allowing a company to target limited resources on the best opportunities to deliver excellent customer experiences, drive sales, and achieve a sustainable competitive advantage in the marketplace

A marketing strategy includes

the 4 P’s

The 4 p’s include

1. product

2. place

3. promotion

4. price

The 4 p’s create what?

value

Value proposition

the firm’s communication of the unique value of its product to its consumers

What four utilities fall under value?

1. form

2. time

3. place

4. ownership

customer value =

benefits - costs

Marketing and value establishes

needs, wants, and desires

The marketing mix includes

1. product

2. price

3. communications

4. distribution

5. services

Product

creating value through offerings that satisfy consumer needs

Price

capturing value through monetary exchange

Place

delivering the value proposition to target audiences

Needs

most basic concept: food, water, shelter, clothing

Wants

• form human needs take shape

• shaped by culture and individual personality

• ex: brand, flavor, features

Desire

products with benefits that add the most value and satisfaction

Customer value benefits

• functionality

• emotional

• life changing

Customer value costs

• monetary

• inconvenience

Market Segmentation

process of breaking down large groups into smaller groups based on meaningful characteristics and shared needs

What are the four steps of marketing segmentation?

1. identifying product related need sets

2. grouping customers with similar need sets

3. describing each group

4. selecting an attractive segment(s) to serve

Consumer decision process

1. need recognition

2. information search

3. alternative evaluation

4. purchase and consumption

5. post purchase

Market analysis components

1. consumers

2. company

3. competitors

4. conditions

outcomes include

• firm

• individual

• society

firm outcomes include

• product position

• sales and profits

• customer satisfaction

Nature of consumer behavior

1. external influences

2. internal influences

3. self concept

4. lifestyle

5. consumer decision process

external influences include

1. culture

2. demographics

3. social stratification

4. ethnic, religious, and regional subcultures

5. families and households

6. groups

Internal influences include

1. perception

2. learning

3. memory

4. motives

5. personality

6. emotions

7. attitudes

Self-concept

the totality of an individuals thoughts and feelings about oneself

lifestyle

how one lives, including the products one buys, how one used the,, what one thinks about them, and how one feels about them