PowerPoint Presentation Copyright © 2020 by McGraw-Hill Education. All rights reserved. CHAPTER 1 CONSUMER BEHAVIOR AND MARKETING STRATEGY 1 1-2 PART I: INTRODUCTION 2 Define consumer behavior...

PowerPoint Presentation Copyright © 2020 by McGraw-Hill Education. All rights reserved. CHAPTER 1 CONSUMER BEHAVIOR AND MARKETING STRATEGY 1 1-2 PART I: INTRODUCTION 2 Define consumer behavior Summarize the applications of consumer behavior Explain how consumer behavior can be used to develop marketing strategy Explain the components that constitute a conceptual model of consumer behavior Discuss issues involving consumption meanings and firm attempts to influence them Learning Objectives L03 L05 L01 L04 L02 Consumer behavior is the 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 and the impacts that these processes have on the consumer and society. 1-4 Consumer Behavior and Marketing Strategy Michael Jung/Getty Images Intl St Clair/Blend Images LLC Shutterstock/yuttana Contributor Studio 4 Marketing Strategy Regulatory Policy Social Marketing Informed Individuals 1-5 Applications in Consumer Behavior Shutterstock/lovelyday12 5 USPCA Campaign Provides an Example of Social Marketing 1-6 Applications in Consumer Behavior YouTube Spotlight Shutterstock/Erik Lam Ingram Publishing 6 1-7 Marketing Strategy and Consumer Behavior 7 The Consumers The Company The Competitors The Conditions 1-8 Market Analysis Components Lightpoet © 123RF.com 8 Market segmentation is a portion of a larger market whose needs differ from the larger market. 1-9 Market Segmentation Purestock/SuperStock 9 Market Segmentation Involves Four Steps: Identifying Product-Related Need Sets Grouping Customers with Similar Need Sets Describing Each Group Selecting an Attractive Segment(s) to Serve 1-10 Market Segmentation 10 1-11 Market Segmentation 11 Marketing Strategy is the answer to the question: How will we provide superior customer value to our target market? This requires the formulation of a consistent marketing mix, which includes the Product Communications Price Distribution, and Service 1-12 Marketing Strategy 12 The consumer decision process intervenes between the marketing strategy, as implemented in the marketing mix, and the outcomes. The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase. 1-13 Consumer Decisions 13 Creating Satisfied Customers 1-14 Outcomes 14 Overall Conceptual Model of Consumer Behavior 1-15 The Nature of Consumer Behavior 15 External Influences Culture Demographics and social stratification Ethnic, religious, and regional subcultures Families and households Groups 1-16 The Nature of Consumer Behavior Lyn Topinka/U.S. Geological Survey William Ryall 2010 Rodrigo A Torres/Glow Images 16 Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes 1-17 The Nature of Consumer Behavior Bowie 15 123RF.com 17 Self-Concept and Lifestyle Self-concept is the totality of an individual’s thoughts and feelings about oneself. Lifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them. 1-18 The Nature of Consumer Behavior bernardbardo/123RF 18 Situations and Consumer Decisions Consumer decisions result from perceived problems and opportunities. Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior. This Geico ad is designed to Trigger Problem Recognition 1-19 Applications in Consumer Behavior © 2017 Geico 19 Consumption has meaning beyond satisfaction of minimum or basic consumer needs Symbolic needs Status Identity Group acceptance The Meaning of Consumption