2 consumer behavior & marketing

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Consumer Behavior

& Marketing



Concepts to Learn Product positioning

Product differentiation

Elements of theconsumerenvironment

Behavioraleconomics

CB and marketingresearch

CB and the marketingmix

The bases of segmentation

Behavioral segmentation Managerial applications

analysis



A pplication A reas of Consumer

Behavior

Environmental A nalysis

Market Research

Segmentation of the Marketplace

Product Positioning and Product

Differentiation Marketing-Mix Development



Product Positioning . .. . . is influencing how consumersperceive a brands characteristics

relative to those of competitiveofferings

Goal is to influence demand by creatinga product with specific characteristics(i.e. brand attributes) and a clear imagethat differentiate it from competitors



Specific Positioning positioning a brand based creating linkages

between brand and key attributes and benefits.E.g., acceleration of auto, reliability of auto

Competitive Positioning positioning a brand in relation to competitors. E.g., Coke and Pepsi

Psychological Positioning positioning a brand based upon dominant

personality characteristic of target market. E.g., A complete Man



Product Differentiation . . .

. . . is the process of manipulating the

marketing mix so as to position aproduct in a manner that allowsconsumers to perceive meaningfuldifferences between a brand and itscompetitors



The Natural Environment . . .

. . . includes the types of raw materials available,

pollution, consumer fear of contracting deadly diseases,and various weatherphenomena, such asdrought, etc.



Components of the External

Environment

Demographic

Economic

Natural

Technological

Political

Cultural



M A

RKET RESE A

RCH . . .

. . . is applied consumer researchdesigned to provide management withinformation on factors that impact consumers acquisition, consumption,and disposition of goods, services, andideas



Product

Promotion

Pricing

Distribution (Place)

Marketing-Mix Development. . . involves the development andcoordination of activities involving the:



A dvertising

Personal Selling

Sales Promotion

Public Relations

Promotional Strategy



Price Changes (Price Sensitivity)Predicting the likely impact of pricechanges on consumers is an important

consumer behavior area. How will consumers react when companies raise

or lower the price of a product?

Principles of perception can be applied to analyzeif consumers will notice a difference in price and if so, what effect it has



Product Distribution . . .. . . will be impactedby understanding how

consumers make theirpurchasing decisions.

Example: low

involvement decision(e.g., purchase soft drink), must useextensive distribution.



Market Segmentation . . .. . . involvessubdividing the

market place intodistinct subsets of customers havingsimilar needs andwants, each of whichcan be reached with adifferent marketingmix



Four Classifications of

Segmentation Variables

Characteristics of the Person

Nature of the Situation in Which theProduct or Service May Be Purchased

Geography

Culture and Subculture A dopted bythe Consumer



Characteristics of the Person

Demographic Characteristics

Behavioral Segmentation:priceelasticity, benefits sought, usagerate, brand loyalty

Benefit Segmentation Psychographic and Personality

Characteristics



Demographics is . . .

. . . the study of population changes andsubcultural values of various demographic

groups based on such factors as age, sex,income, education, ethnicity, and geography.

Examples of demographic variables:

age, sex, income, ethnicity, nationality,

household size, marital status, religion,education, occupation,



Consumer Situations . . .

. . . consist of the temporaryenvironmental factors that form thecontext within which a consumer activityoccurs at a particular time and place

Types of situations: social, physical,task definition, time.



Geographic Segmentation

Can include region,size of cities and

counties, censusblocks, populationdensity, and climate

Geo-demographics

is the combinationof geography anddemographics



Culture and Subculture

Culture is the way of life of the people

of a society

Subculture is a subdivision of a national

culture and is based on some unifyingcharacteristic, such as social status ornationality



Solving Managerial Problems . .. . . is a three-step process:

Gather information and identify the

problem/opportunity Identify the relevant consumer behavior

concepts and how they apply to theproblem

Develop a managerial strategy byidentifying the managerial implications of each consumer concept.

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