1. Consumer Behavior CONSUMER BEHAVIOR MKT310

2. Consumer Behavior SOME DEFINITIONS l Marketing l Marketing exchange l Marketing strategies l Marketing concept l Marketing mix l Consumer behavior

3. Consumer Behavior Wise Words l “The purpose of a business is to create and keep a customer.” (Ted Leavitt) l “You don’t sell products -- you sell expectations.” (Charles Revson)

4. Consumer Behavior BASES OF CONSUMER BEHAVIOR l Motivations l Processes l External Influences l ‘Rules of Behavior’

5. Consumer Behavior TYPES OF CONSUMER DECISIONS l Consume vs. save l Categories to consumer l Brands to consume l How and where to shop l Usage l Disposal

6. Consumer Behavior SEGMENTATION

7. Consumer Behavior SEGMENTATION l ISSUES l BASES l PROFILE SEGMENTS l SELECT TARGET SEGMENTS l DEVELOP MARKETING STRATEGIES

8. Consumer Behavior BASES FOR SEGMENTING A MARKET l Geographic l Demographic l Psychographic l Behavioral

9. Consumer Behavior SELECTING TARGET SEGMENTS l Can you identify? Is basis relevant? l Are they interested? l Market potential? l Accessible? l Stable?

10. Consumer Behavior Database Segmentation l Create customer database l Determine best customers:score by RFM l Rank customers from best to worst l Determine profitability cutoffs

11. Consumer Behavior WAYS TO MASS CUSTOMIZE l Customize services around standard product l Mass-produce item customizable to each client l Point-of-sale customization l Modularize components to customize end products