PART I: INTRODUCTIONPART I: INTRODUCTION

CHAPTERCHAPTER 11

CONSUMER CONSUMER BEHAVIOR AND BEHAVIOR AND

MARKETING MARKETING STRATEGYSTRATEGY

Consumer Behavior In The News…Consumer Behavior In The News…

Segmenting the Automobile MarketSegmenting the Automobile Market

J.D. Powers Examined Car-Buyer Segments.J.D. Powers Examined Car-Buyer Segments.

Can You Predict the Market for Each Brand?Can You Predict the Market for Each Brand?

Honda CivicHonda Civic

Honda AccordHonda Accord

Toyota Sienna Mini VanToyota Sienna Mini Van

Cadillac STSCadillac STS

Lexus LS 430Lexus LS 430

Source: D. Kiley, “Sexy or Sensible?” Business Week, January 16, 2006, p. 60-61.

Consumer Behavior In The News…Consumer Behavior In The News…

Segmenting the Automobile MarketSegmenting the Automobile Market

J.D. Powers Examined Car-Buyer Segments.J.D. Powers Examined Car-Buyer Segments.

Can You Predict the Market for Each Brand?Can You Predict the Market for Each Brand?

Honda Civic – Honda Civic – “teenage terror”“teenage terror”

Honda Accord – Honda Accord – “recent MBA grad”“recent MBA grad”

Toyota Sienna Mini Van – Toyota Sienna Mini Van – “suburban mom”“suburban mom”

Cadillac STS – Cadillac STS – “mid-career executive”“mid-career executive”

Lexus LS 430 – Lexus LS 430 – “titan of industry”“titan of industry”

Source: D. Kiley, “Sexy or Sensible?” Business Week, January 16, 2006, p. 60-61.

Consumer Behavior and Marketing Consumer Behavior and Marketing StrategyStrategy

Consumer behavior Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Applications of Consumer BehaviorApplications of Consumer Behavior

1.1. Marketing StrategyMarketing Strategy

2.2. Regulatory PolicyRegulatory Policy

3.3. Social MarketingSocial Marketing

4.4. Informed IndividualsInformed Individuals

Marketing Strategy and Consumer BehaviorMarketing Strategy and Consumer Behavior

Market Segmentation

Market segmentationMarket segmentation is a portion of a larger market whose needs differ from the larger market.

Market SegmentationMarket Segmentation

Market Segmentation Involves Four Steps:

1. Identifying Product-Related Need Sets

2. Grouping Customers with Similar Need Sets

3. Describing Each Group

4. Selecting an Attractive Segment(s) to Serve

Market SegmentationMarket Segmentation

Market Segment Attractiveness WorksheetMarket Segment Attractiveness Worksheet

Marketing StrategyMarketing Strategy

Marketing Strategy Marketing Strategy is the answer to the question: How will we provide superior customer value to our target market?

This requires the formulation of a consistent marketing mixmarketing mix, which includes the

1.1. ProductProduct

2.2. PricePrice

3.3. CommunicationsCommunications

4.4. DistributionDistribution, and

5.5. ServicesServices

Which Super Bowl Ads have an Effective Communication Strategy?

1. With whom, do we want to communicate?2. What effect do we want our communications to

have on the target audience?3. What message will achieve the desired effect on our

audience?4. What means and media should be used to reach the

target audience?5. When should we communicate with the target

audience? http://www.time.com/time/specials/packages/article/0,28804,1874549_1874552,00.html

Video Application

The following Video Clip demonstrates The following Video Clip demonstrates how Staples uses the marketing mix to how Staples uses the marketing mix to create and deliver its brand promise.create and deliver its brand promise.

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OutcomesOutcomes

Creating Satisfied CustomersCreating Satisfied Customers

The Nature of Consumer BehaviorThe Nature of Consumer Behavior

Overall Conceptual Model of Consumer BehaviorOverall Conceptual Model of Consumer Behavior

The Nature of Consumer Behavior

External InfluencesExternal Influences

The following are the major external influences:

• Culture

• Demographics and social stratification

• Ethnic, religious, and regional subcultures

• Families and households

• Groups

The Nature of Consumer Behavior

Internal InfluencesInternal Influences

Internal influences include:

• Perception

• Learning

• Memory

• Motives

• Personality

•Emotions

•Attitudes

The Nature of Consumer Behavior

Self-Concept and LifestyleSelf-Concept and Lifestyle

Self-conceptSelf-concept is the totality of an individual’s thoughts and feelings about oneself.

LifestyleLifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.

The Nature of Consumer Behavior

Situations and Consumer DecisionsSituations and Consumer Decisions

Consumer decisionsConsumer decisions result from perceived problems and opportunities.

Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior.consumer behavior.

Using Outdoor Media to Trigger Problem RecognitionUsing Outdoor Media to Trigger Problem Recognition