PrinciplesofMarketing.

CourseCode:304.002.301

ConsumerBehaviour

–PartOnePeterNightscalesMEd,MBA.ThesepowerpointsarethepropertyofPeterNightscalesandaresubjecttoCopyright.(2014)Duplication,copyingofanyofthematerialinanyformcanonlybeundertakenwiththewrittenpermissionoftheauthor.PeterNightscalesMEd,MBA.PrinciplesofMarketing.

CourseCode:304.002.301

TheMarketingConceptTheprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goodsandservicestocreateexchangesthatsatisfyindividualandorganizationalobjectivesSatisfactionwithanexchangedependsonsatisfactionwithconsumptionofproductandtheexchangeofmoneyConsumersexpectmore

fromtheirbrands.Consumershavespecificandsometimesdifferentwantsbutalmosteverytime,nomatterwhattheirindividualwantsare,theyinsiston‘valueformoney!’‘Valueformoney’isfeelingthatwhatyouhavepurchasedwasworththemoneyyoupaidforit!Igota‘good’deal!Consumersexpectmore

fromtheirbrands.“Thedecisionprocessandphysicalactivitythatindividualsorgroupsofindividualsororganisation’sengageinwhen:EvaluatingAcquiringUsing,orDisposingofgoodsandservicestheyexpectwillsatisfytheirneeds”SchiffmanBednallWatsonKanuk(1997)WhatisConsumerBehaviour?

ConsumerBehaviourKnowledge

is….. the“Engine”ofaMarketingStrategy.TheMarketingCarMarketresearchMarketingmanagerConsumerbehaviour“Theengineofmarketing”AdvertisingDistributionWhyStudyConsumerBehaviour?ConsumerBehaviordeterminestheEconomicHealthofanation,researchanddevelopmentandsometimes,evengovernmentpolicies!Consumerbehaviourdetermineseveryone’seconomichealth:Theindividual’sdecisionsasaconsumerdeterminestheireconomichealthbymakingmoreeffectiveconsumptiondecisionswhileavoidingdeceptivepracticesharmfultothemPublicpolicyleadersandsocialcommentatorsstudyconsumerbehaviourtoalleviateover-consumptionandunder-consumptionbyeducatingconsumersaboutproblemsandprovidingassistance.Understandingconsumers’needstoformulatepublicpolicyandpredictingbehaviouralchangesthatfollow!Studyingconsumerbehaviour

helpsformulatepublicpolicyInterestratesWarninglabelsEconomicsSocialWelfareFamilyPlanningGovernmentRegulationsGovernmentProtectionandEducationProtectionfromCompetitiveMarketsWhystudyConsumerBehaviour?ConsumerbehaviourdeterminesthesuccessofmarketingprogramsMarketingcanbeusedtoinfluencebrandchoiceandpurchase,whilede-marketingcaninfluencepeopletostopharmfulconsumption‘TheCustomerisKing’:OrganizationinfluencedbyconsumerneedsandwantsWhystudyConsumerBehaviour?Organizationsthatarecustomer-centricusea‘totalmarketing’approachtofocustheirresourcesonsatisfyingcustomers‘TotalMarketing’istheprocessoftransformingorchanginganorganizationtohavewhatpeoplewillbuy!EnablessmarterconsumersMakesbetterstrategicmarketingdecisionsAssistswithpositioningstrategiesIntroducesnewproductsandservicesToseehowconsumershavechangedToseehowmarketshavechangedBehaviouralanalyseshelpstotailorofferingstodiverseconsumermarketsButreally-whystudyit?ConsumersaresmarterConsumershavemorechoicesConsumersaremoredemandingWhobuyswhat?Whoconsumesit?Whatisbought?Whatisthe‘decision’process?Whyissomethingbought?Whenissomethingbought?Whereissomethingbought?Howoftenissomethingboughtorconsumed?ConsumerBehaviourResearcherstrytofindout:TheConsumerMarketConsumersarepeoplewhobuyoruseproducts/servicestosatisfyneedsandwantsThreetypesexist:ThosewhopurchasetheproductThosewhopayfortheproductThosewhousetheproduct

ConsumersDefined What’sthedifferenceandwhyisthedifferenceimportant?Thosewhopurchasetheproduct-

mayhaveonlythemselvesandtheirownneedsandpreferencestothinkabout.Theycanbuywhattheywant,whentheywantit.Iftheyarebuyingforanotherperson,theremayevenbeconflictingrequirementsthatneedtobemanaged.ConsumersDefinedThosewhopayfortheproduct–maynotactuallyseetheimportanceoftheproducttheyarepayingforandmayalsonotfullyunderstandwhyitisbeingpurchased.Theirmainconcernmightbegettingthecheapestpossibleproductwithlittleornoconcernforthequality.ConsumersDefinedThosewhousetheproduct-maynotknoworcareaboutthepriceorthequalityoftheproduct.Theymaynotevenunderstandtheprocessofgettingtheproduct!Theymightonlywanttoknowthatitisavailablewhentheyrequireit.ConsumersDefinedConsumersDefinedRemember–Thekeythingswewanttofindoutaboutourselected‘marketsegment.’Doconsumersknowabouttheproduct?–Doorwilltheysuetheproduct?Dotheyorwilltheypurchasetheproduct?Behaviour?Thiswilldriveour‘MarketMix.’The4P’s!ConsumersDefinedWhatdoconsumerslookforwhenpurch