company logo chapter 2 continued. 2.3 the consumer market everyone has a unique blend of...
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2.3 The Consumer Market
everyone has a unique blend of personality, values, beliefs, physical features, history, etc.
if marketers are to be successful, they need to understand their potential customers to anticipate or influence their needs and wants
marketers create consumer profiles of the kind of people most likely to be attracted to a product
it turns out that groups of people who are attracted to one product are often attracted to others
2.3 The Consumer Market
then they attempt to combine consumers into cohorts, groups with similar characteristics called consumer segments ex: teenagers, baby boomers, boarders, etc.
these are further divided into primary (most likely consumers) market and secondary (occasional consumers) market
most marketing is aimed at primary market
Example
Let’s take for example a cup of coffee at Starbucks.
Who would be attracted to this product? (i.e. age group, gender, etc.)
Who would you consider the primary market and who would be the secondary?
2.3 The Consumer Market
Psychographics system for measuring consumers beliefs,
opinions and interests looks to recognize patterns so that
marketing mix can be done more effectively
ex: people who are interested in exercise likely value low fat foods
2.3 The Consumer Market
Geographics marketing based on patterns based on
where people live ex: rural consumers have different needs
(snow removal, grass cutting) than apartment dwellers in the inner city (may not even need a car)
2.4 Consumer Motivation
Motivation is the biological, emotional, rational and/or social force that initiates and directs behaviors
since buying is a behaviour, marketers need to understand motivation
biological forces are linked to our most basic needs for survival these need to be satisfied first
2.4 Consumer Motivation
emotional forces include love, sympathy, joy, anger, fear, etc. can either motivate the consumer positively
(like love) or negatively (like fear) most purchases mix of positive and negative
rational forces are often in conflict with emotional ones rational forces deal with logic ex: cost, convenience, safety, needs
2.4 Consumer Motivation
societal forces are caused by other people friends, family and society in general celebrity endorsements are an example
motivational theories are used to explain human behavior
Thorndike’s Law of Effect consumers are motivated to buy products that
produce positive events and reduce negative events
most purchases are influenced by both
2.4 Consumer Motivation
Maslow’s Hierarchy of Needs consumers respond to motivation according to
levels of needs in this order: physiological safety/security affiliation esteem
if these needs are met, the person may then be motivated by growth needs
2.4 Consumer Motivation
Alderfer’s ERG Theory He modified Maslow’s theory to include only
three levels of human needs: Existence
All physical and psychological needs necessary for survival
Relatedness All needs for personal relationships
Growth Need to be productive, self fulfillment
2.5 The Buying Decision
the buying process occurs in response to a need or want, for example
1. MP3 player breaks
2. decisions made on what to buy
3. search made for products available
4. decision among products is made
5. MP3 player purchased
6. purchase is evaluated
2.5 The Buying Decision
but the buying process only works for large purchases made occasionally does not work for impulse purchases also does not work for product purchases
where brand is not important
in these last two cases, the retailer may significantly influence the purchase
see the Lee Valley item on page 72, read it now and answer the 2 questions at the bottom of page 73
2.6 Industrial/Institutional
the Industrial/Institutional consumer purchases for a business
purchase criteria are almost entirely rational what is the cost/profit margin? will the customer buy it? can it be shipped to me on time?
tenders may be used in purchases here and pricing is critical