CHAPTER

CONSUMER BEHAVIOR AND MARKETING STRATEGY

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Consumer Behavior and Marketing Strategy

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.

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Consumer Behavior In The News

Segmenting the Automobile Market J.D. Powers Examined Car-Buyer Segments. CarCan You Predict the Market for Each Brand? Honda Ci i H d Civic Honda Accord Toyota Sienna Mini Van Cadillac STS Lexus LS 430
Source: D. Kiley, Sexy or Sensible? Business Week, January 16, 2006, p. 60-61.

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Consumer Behavior In The News

Segmenting the Automobile Market J.D. Powers Examined Car-Buyer Segments. CarCan You Predict the Market for Each Brand? Honda Civic t H d Ci i teenage t terror Honda Accord recent MBA grad Toyota Sienna Mini Van suburban mom Cadillac STS mid-career executive midLexus LS 430 titan of industry
Source: D. Kiley, Sexy or Sensible? Business Week, January 16, 2006, p. 60-61.

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Applications of Consumer Behavior

1. Marketing Strategy

2. R 2 Regulatory Policy l t P li

3. Social Marketing

4. Informed Individuals
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Applications of Consumer Behavior

Social marketing is applying marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole. For example

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Marketing Strategy and Consumer Behavior

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Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market.

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Market Segmentation
Market Segmentation Involves Four Steps:
1. Identifying Product-Related Need Sets 2. Grouping C t 2 G i Customers with Si il N d S t ith Similar Need Sets 3. Describing Each Group 4. Selecting an Attractive Segment(s) to Serve

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Marketing Strategy
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 mix,
1. Product 2. Price 3. Communications 4. Distribution and Distribution, 5. Services

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Consumer Decisions
The consumer decision process intervenes between the marketing strategy as implemented in the strategy, marketing mix and the outcomes mix, 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.

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Outcomes

Creating Satisfied Customers

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The Nature of Consumer Behavior

Overall Conceptual Model of Consumer Behavior

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The Nature of Consumer Behavior

External Influences
The following are the major external influences: C lt Culture
Demographics and social stratification Ethnic, religious, and regional subcultures Families and households Groups

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The Nature of Consumer Behavior

Internal Influences
Internal influences include: Perception
Learning Memory Motives Personality Emotions Attitudes
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The Nature of Consumer Behavior

SelfSelf-Concept and Lifestyle
SelfSelf-concept is the totality of an individuals 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.

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The Nature of Consumer Behavior

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.

Using Outdoor Media to Trigger Problem Recognition

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