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Consumer Behavior theory and marketing strategy

Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas. consumer behavior implications for marketing strategy | download free ppt
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Published Date:09-03-2017
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Consumer BehaviorWhat is Consumer Behavior? Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.“MEET THE NEW CONSUMER and smile when you do because she is your boss. It may not be the person you thought you knew. Instead of choosing from what you have to offer, she tells you what she wants. You figure it out how to give it to her.” -FortuneEditorUnderstanding and adapting to consumer A new product motivation and behavior is not an option– it must satisfy becomes a necessity for competitive survival consumer needs, not the needs and expectations of management. The advice to footwear salesmen should be „Don‟t sell shoes – sell lovely feet‟ Marketers must contend with small changing segments of highly selective buyers intent on receiving genuine value at the lowest price•Factors that move an economy from Production-driven to Market- driven Dominant forces shaping Consumer Research •Level of sophistication with which human behavior is understood in psychology and other behavioral sciencesDevelopment of the Marketing Concept Production Concept Product Concept Selling Concept Marketing ConceptThe Production Concept Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: • Cheap, efficient production • Intensive distribution • Market expansionThe 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 MyopiaThe 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 satisfactionThe 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 satisfactionUnderstanding consumer Understanding consumer behaviour will help you behaviour will help you become better marketers as become better marketers as it is the foundation for Why Study Consumer it is the foundation for Behavior?Segmenting markets  Segmenting markets Positioning products  Positioning products Developing an appropriate  Developing an appropriate marketing marketingUnderstanding consumer Knowledge of consumer behaviour will help you behaviour is essential for non- become better marketers as profit organizations it is the foundation for Why study Consumer Segmenting markets Non profits have different Behavior? customers to please Donors, Positioning products users, volunteers, general Developing an appropriate public, government marketingUnderstanding consumer Public serv behaviour ice initiatiwill ves ha help ve you to be based on an understanding of consumer become better marketers as behaviour it is the foundation for Canada‟s largest advertiser is the federal Why study Consumer Segmenting markets government Behavior? Positioning products Most government initiatives (e.g., antismoking campaigns) need a Developing an appropriate knowledge of consumer behaviour to marketing succeedUnderstanding consumer behaviour will help you become better marketers as it is the foundation for Better understanding of our Why study Consumer Segmenting markets own consumption behaviour Behavior? Positioning products Developing an appropriate marketingFactors influencing consumer behavior • Cultural • Social • Personal • PsychologicalI. Cultural factors Culture and societal environment: Culture is crucial when it comes to understanding the needs and behaviors of an individual. Throughout his existence, an individual will be influenced by his family, his friends, his cultural environment or society that will “teach” him values, preferences as well as common behaviors to their own culture. For a brand, it is important to understand and take into account the cultural factors inherent to each market or to each situation in order to adapt its product and its marketing strategy. As these will play a role in the perception, habits, behavior or expectations of consumers.Sub-cultures : A society is composed of several sub-cultures in which people can identify. Subcultures are groups of people who share the same values ​​based on a common experience or a similar lifestyle in general. Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the individual, etc.. The subcultures are often considered by the brands for the segmentation of a market in order to adapt a product or a communication strategy to the values ​​or the specific needs of this segment Social classes: Social classes are defined as groups more or less homogenous and ranked against each other according to a form of social hierarchy. Even if it‟s very large groups, we usually find similar values​​, lifestyles, interests and behaviors in individuals belonging to the same social class. We often assume three general categories among social classes : lower class, middle class and upper class. People from different social classes tend to have different desires and consumption patterns. Disparities resulting from the difference in their purchasing power, but not only. According to some researchers, behavior and buying habits would also be a way of identification and belonging to its social class.