1-1 Chapter 1 Introduction: Consumer rule

1-2 Objectives of One-to-One Marketing To attain customers Sell them more products Make a profit

1-3 Digital Revolution in the Marketplace Allows customization of products, services, and promotional messages like never before Enhances relationships with customers more effectively and efficiently

1-4 The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Consumer Behavior

1-5 Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

1-6 Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

1-7 Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept

1-8 The Production Concept Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: –Cheap, efficient production –Intensive distribution –Market expansion

1-9 The Product Concept Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives: –Quality improvement –Addition of features Tendency toward Marketing Myopia

1-10 The Selling Concept Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Marketing objectives: –Sell, sell, sell Lack of concern for customer needs and satisfaction

1-11 The Marketing Concept Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Marketing objectives: –Profits through customer satisfaction

1-12 The Marketing Concept A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.

1-13 Implementing the Marketing Concept Consumer Research Segmentation Targeting Positioning

1-14 Consumer Research The process and tools used to study consumer behavior. Two perspectives: –Qualitative research –Quantitative research

1-15 Segmentation, Targeting, and Positioning Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics Targeting: selecting one ore more of the segments to pursue Positioning: developing a distinct image for the product in the mind of the consumer

1-16 Successful Positioning Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product

1-17 The Marketing Mix Product: features, brands and packaging Price: list price, discounts, allowances. Place: distribution through specific store Promotion: advt; sales promotion, public relation, demands,

1-18 Successful Relationships Customer Value Customer Satisfaction Customer Retention

1-19 Customer value It can be thought of as the ratio between the consumers perceived benefits and the resources use to obtain those benefits.

1-20 Customer satisfaction It is the individual consumer’s perception of the product or services in relation to his/her expectation.

1-21 Customer retention The strategy designed to make it in the best interest of customer to stay with a company rather than switch to another company. Why???? 1. loyal customer buy more products 2.they are less price sensitive 3.product offer to loyal customer are more cheaper 4. they have positive word of mouth

1-22 Types of Customers Loyalists Apostles Defectors Terrorists Hostages Mercenaries

1-23 Societal Marketing Concept A revision of the traditional marketing concept that suggests that marketers touch to principles of social responsibility in the marketing of their goods and services; that is, they must make an effort to satisfy the needs and wants of their target markets in ways that preserve and enhance the well- being of consumers and society as a whole.

1-24 The Societal Marketing Concept All companies prosper when society prospers. Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision. Requires all marketers adhere to principles of social responsibility.

1-25 Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Output Process Input External Influence Consumer Decision Making Post-Decision Behavior Postpurchase Evaluation Purchase 1. Trial 2. Repeat purchase Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Figure 1-1: A Model of Consumer Decision Making