1. Marketing Strategy & Consumer Behavior Unit 4

2. Planning a Marketing Strategy  A plan that identifies how a company expects to achieve its goals is known as a strategy. o Provides the clearest indication of whether it understand the marketing concept  The company will begin its planning by identifying potential customers and studying their needs.

3. The Marketing Concept…

4. Identifying Customer Needs  Meeting customer needs are not easy: o Customers are not sure of their needs or have conflicting needs o Customers typically have limited amounts of money available o The needs of individuals and groups can be quite different

5. Satisfying Customer Needs  Through marketing research, the business gathers and analyzes consumer information. o It categorizes customers according to characteristics, needs, and purchasing behavior o A group of similar consumers within a larger market is known as a market segment  After identifying distinct market segments, the business analyzes each one.

6. Market Segmentation  Once segments have been identified & prioritized, the business selects which ones it will focus its efforts. o Those segments become the target market  A Target Market is a clearly segment of the market to which a business want to appeal.

8. 4 Factors that Define Target Markets  Geographic: describes a population in terms of where people live  Demographics: describes a population in terms of personal characteristics  Psychographics: describes a population based on social and psychological characteristics  Behavioral: based on the way customers use, need, or want a product

9. Follow a Product—Target Market Profile

11. Incorporating the Marketing Mix  By combining the planning of product, place, pricing, and promotion, the company has the best opportunity to develop a satisfying, competitive, and profitable mix

12. Planning and the Marketing Mix Develop ProductsDistribution Decisions  Special features or accessories  Offering services before or after the sale  The use of the product  Additional benefits  Manufacturers must rely on wholesalers and retailers  Order processing, product handling, transportation, and inventory control

13. Planning and the Marketing Mix Price Products & ServicesPlan Promotion  Most difficult  Supply and demand  Set objectives  How is price presented to customers?  Advertising  Personal selling  Sales promotion  Visual display  Publicity  Choices based on objectives and audience

15. The Stages of a Decision 1 Need Recognition 2 Search for Information 3 Evaluation of Alternatives 4 Purchase Decision 5 Assess Satisfaction

16. The Stages of a Decision  Stage 1—Recognize o Consumer recognizes that a need exists  Stage 2—Search o The consumer becomes interested in finding a solution o Leads to identifying products/services that relate to the need and sources of information that can help the consumer make an effective decision

17. The Stages of a Decision  Stage 3—Evaluate o Consumer gathers information and determines if any one choice seems to be better, more available, or more affordable than other choices  Stage 4—Decide o Consumer is comfortable with the evaluation, a decision is made o The decision will be to select one of the available choices, gather more information, or do nothing

18. The Stages of a Decision  Stage 5—Assess o Was the choice correct? o Is the need satisfied? o If the specific product satisfied the need, then the decision will likely be repeated

20. Consumer Behavior  The study of consumers and how they make decisions is called consumer behavior o Includes factors that influence how people purchase and use products and services  Two types of consumers: o Final o Business

21. Types of Consumers Final ConsumersBusiness Consumers  Buy products or services for personal use  Traditional view of a consumer  Buy goods and services to resell or for use in producing and marketing other goods or services  Goods for daily operations

22. Products Sold to Both Types of Consumers  Name at least one business consumer use and one final consumer use for each of the following items: o Pencils o Balloons o Rubber bands o Radio o Sofa o All-terrain vehicle o Bagels o Pesticide o Suitcase o Blankets

23. Consumer’s Wants and Needs  A need is anything that you require to live o The root of all human behavior o Rise from a lack of something in the consumer  A want is a culturally defined way to fulfill that need o Hungry? You need food, but you want a pizza o Thirsty? You need to drink, but you want a soda

24. Hierarchy of Needs  Maslow’s hierarchy of needs illustrates the progression people follow in satisfying needs

25. Everyone is Different  Marketers must realize that people are at different levels on the needs hierarchy o Some focus on safety needs while others, on esteem needs

27. What Motivates Buyers?  Motivation is the set of positive or negative factors that direct individual behavior o Short-term and long-term motivation  Motivation is a major factor in your behavior as a consumer. o Buying motives : the reasons that you buy.  Three categories: o Hedonic motives, rational motives, and patronage motives

28. Hedonic Motives  Reasons to purchase based on feelings and emotions o Consumers wish to seek pleasure and avoid pain o Forces of love, affection, passion, and happiness bring consumers pleasure o Consumers want to avoid emotions such as guilt, fear, or anxiety  Such emotions often compel consumers to acquire products that will help attain or avoid these emotions

29. Rational Motives  Reasons to buy based on facts or logic o Saving time or money o obtaining the highest quality or greatest value  These motives are especially important for many expensive purchases o How do you decide to buy a new computer? o An automobile?

30. Patronage Motives  Based on loyalty o Encourage customers to purchase from a particular business or to buy a particular brand  Loyalty is influenced by positive previous experiences or a close identification with the product or business  Businesses encourage and cultivate patronage motives so that customers are less likely to consider their competitors