1. Copyright © 2015 Pearson Education CONSUMER BEHAVIOUR MRKT 405 Aysun ŞABANLI Let’s get connect: @AysunKafasi @AysunSabanli Aysun Sabanli Mail: Aysun.sabanli@gmail.com

2. Copyright © 2015 Pearson Education Get the Credits Easily – I will be helping you Mid – term 25% Final35% Quiz10% Homework10% Project15% Participation 5% The Book: 10th Edition Consumer Behaviour Leon G.Schiffman, Leslie Lazar Kanuk Pearson

3. Copyright © 2015 Pearson Education Pro-active: Please participate Let’s question everything Twit of the day: Let’s creat our own community Mentions: @AysunKafasi @AysunSabanli @EMUofficial Hashtag: #MRKT405

4. Copyright © 2015 Pearson Education Forget about MARKETING

5. Copyright © 2015 Pearson EducationSlide 5 of 26 How we will work: We will learn theories but we will focus more on business practices We will analyse different social groups and segments Discuss around case studies Build up marketing strategies focusing on different segments We will talk about our observations regarding human behaviour.

6. Copyright © 2015 Pearson Education Chapter 1 Consumer Behavior: Meeting Changes and Challenges

7. Copyright © 2015 Pearson EducationSlide 7 of 26 Chapter 1 Learning Objectives 1.1 To understand the evolution of the marketing concept, the most prominent tools used to implement marketing strategies. 1.2 To Understand How New Technologies Are Enabling Marketers to Better Satisfy the Needs and Wants of Consumers. 1.3 To understand consumer behavior as an interdisciplinary area, consumer decision-making, and the structure of this book. 1.4 To understand the interrelationships among customer value, satisfaction, and retention, and technology’s revolutionary role in designing effective retention measures and strategies. 1.5 Marketing Oriented Business Requirements: 1.6 To Understand the Makeup and Composition of a Model of Consumer Behavior.

8. Copyright © 2015 Pearson EducationSlide 8 of 26 Learning Objective 1.1 1.1 To understand the evolution of the marketing concept, the most prominent tools used to implement marketing strategies.

9. Copyright © 2015 Pearson Education Question: What is marketing do you think?

10. Copyright © 2015 Pearson EducationSlide 10 of 26 Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept

11. Production Orientation From the 1850s to the late 1920s Companies focus on production capabilities Consumer demand exceeded supply Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 11 Production Orientation Product ConceptSales OrientationMarketing Concept Chapter One Slide

12. Product Orientation Companies focus on highest quality and adding up features Companies believes their product is unique and offers distinctive benefits. Companies focus on product development, and competitors instead of market needs. Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 12 Production Orientation Product ConceptSales OrientationMarketing Concept Chapter One Slide

13. Sales Orientation From the 1930s to the mid 1950s Focus on selling Supply exceeded customer demand Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 13Chapter One Slide Production Orientation Product ConceptSales OrientationMarketing Concept

14. 1950s to current - Focus on the customer! Determine the needs and wants of specific target markets Deliver satisfaction better than competition Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 14Chapter One Slide Production Orientation Product ConceptSales OrientationMarketing Concept

15. Defined Copyright © 2015 Pearson EducationSlide 15 of 26 The essence of marketing consists of satisfying consumers’ needs, creating value, and retaining customers. Marketing Concept

16. How does Classico’s ad relate to the marketing concept? Marketing Concept Application

17. Defined Copyright © 2015 Pearson EducationSlide 17 of 26 Marketing Concept Marketing Management is the Art and Science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Kotler Definition

18. 1.2 To Understand How New Technologies Are Enabling Marketers to Better Satisfy the Needs and Wants of Consumers. Learning Objective 1.2

19. Consumers Have Embraced Technology

20. New Era Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall “Peep Culture Era” Hal Niedzviecki “Excessive sharing: Sharing private information. And asking for approval from the people who has exposed to peep”.

21. New Era Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Virtual Selves “Network Culture” Beth Coleman Real Selves

22. New Marketing Era The new responsibility of marketing is to the build real relationship with the customers. The one and only focus is HUMAN.

25. Impact of Digital Technologies Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 25 Marketers More products and services through customization Instantaneous exchanges Collect and analyze data Consumers Power Information Computers, phones, PDA, GPS, smart TV Chapter One Slide

26. How does technology affect the Marketing Mix? Provide examples: Interactive and communication channels Customizing products and promotional messages Better prices and distribution Discussion Question

27. 1.3 To understand consumer behavior as an interdisciplinary area, consumer decision- making, and the structure of this book. Learning Objective 1.3

28. Consumer Behavior The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 28Chapter One Slide

29. Two Consumer Entities Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 29 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. 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. Chapter One Slide

30. How can a car help express its owners’ characteristics?

31. Consumer Behavior Is Interdisciplinary Psychology Sociology Social psychology Anthropology Economics Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 31Chapter One Slide

32. 1.5 Marketing Oriented Business Requirements: Learning Objective 1.5

33. Copyright © 2015 Pearson EducationSlide 33 of 26 Consumer Research Market Segmentation, Targeting and Positioning The Marketing Mix (4 Ps) – Product or service – Price – Place – Promotion Marketing Concept Requirements

34. The Marketing Concept Consumer Research Segmentation Market Targeting Positioning The process and tools used to study consumer behavior Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Embracing the Marketing Concept Chapter One Slide34

35. The Marketing Concept Consumer Research Segmentation Market Targeting Positioning Process of dividing the market into subsets of consumers with common needs or characteristics Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Implementing the Marketing Concept Chapter One Slide35

36. Discussion Questions 1.What products that you regularly purchase are highly segmented? 2.What are the different segments? 3.Why is segmentation useful to the marketer for these products? Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 36Chapter One Slide

37. The Marketing Concept Consumer Research Segmentation Market Targeting Positioning The selection of one or more of the segments identified to pursue Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Implementing the Marketing Concept Chapter One Slide37

38. The Marketing Concept Consumer Research Segmentation Market Targeting Positioning Developing a distinct image for the product in the mind of the consumer Successful positioning includes: – Communicating the benefits of the product – Communicating a unique selling proposition Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Implementing the Marketing Concept Chapter One Slide38

39. The Marketing Mix ProductPrice PlacePromotion Marketing Mix Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 39Chapter One Slide

40. 1.4 To understand the interrelationships among customer value, satisfaction, and retention, and technology’s revolutionary role in designing effective retention measures and strategies. Learning Objective 1.4 Successful Relationships Customer value High level of customer satisfaction Customer retention

41. Successful Relationships Customer Value Customer Satisfaction Customer Retention Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits Perceived value is relative and subjective Developing a value proposition is critical Value, Satisfaction, and Retention

42. Discussion Questions How does McDonald’s create value for the consumer? How do they communicate this value?

43. Successful Relationships Customer Value Customer Satisfaction Customer Retention The individual's perception of the performance of the product or service in relation to his or her expectations. Customer groups based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries Value, Satisfaction, and Retention

44. Successful Relationships Customer Value Customer Satisfaction Customer Retention The objective of providing value is to retain highly satisfied customers. Loyal customers are key – They buy more products – They are less price sensitive – Servicing them is cheaper – They spread positive word of mouth Value, Satisfaction, and Retention

45. Customer Profitability-Focused Marketing Tracks costs and revenues of individual consumers Categorizes them into tiers based on consumption behavior A customer pyramid groups customers into four tiers PlatinumGoldIronLead

46. Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 46 THE TRADITIONAL MARKETING CONCEPTVALUE- AND RETENTION-FOCUSED MARKETING Make only what you can sell instead of trying to sell what you make. Use technology that enables customers to customize what you make. Do not focus on the product; focus on the need that it satisfies. Focus on the product’s perceived value, as well as the need that it satisfies. Market products and services that match customers’ needs better than competitors’ offerings. Utilize an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors’ offerings. Research consumer needs and characteristics.Research the levels of profit associated with various consumer needs and characteristics. Understand the purchase behavior process and the influences on consumer behavior. Understand consumer behavior in relation to the company’s product. Realize that each customer transaction is a discrete sale. Make each customer transaction part of an ongoing relationship with the customer.

47. For Discussion: Provide two examples where brands used technology to engage consumers/enhance customer relationships. Provide two examples where technology was used to add value to the consumer. Technology and Customer Relationships

48. 1.6 To Understand the Makeup and Composition of a Model of Consumer Behavior. Learning Objective 1.6

49. Copyright © 2015 Pearson EducationSlide 49 of 26 Consumer Decision Making

50. Copyright © 2015 Pearson EducationSlide 50 of 26 THANK YOU