Schiffman CB10 PPT 01 Amended

8/2/2019 Schiffman CB10 PPT 01 Amended

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ConsumerBehavior:

MeetingChanges and

Challenges

CHAPTER

ONE



To Which Segment of Consumers Will This Ad

Appeal?

Chapter One Slide4

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall



A Segment of ConsumersWho are Environmentally

Concerned

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide5



Consumer Behavior

• The behavior that consumers displayin searching for, purchasing, using,

evaluating, and disposing of productsand services that they expect willsatisfy their needs.

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 4Chapter One Slide

http://www.google.com/prdhp?hl=en&tab=wf



Two Consumer Entities




Development of theMarketing Concept




Production Orientation

• From the 1850s to the late 1920s• Companies focus on production

capabilities• Consumer demand exceeded supply




Sales Orientation

• From the 1930s to the mid 1950s• Focus on selling• Supply exceeded customer demand




Marketing Concept

• 1950s to current - Focus on thecustomer!

•

Determine the needs and wants of specific target markets• Deliver satisfaction better than

competition




Discussion Questions

1. What two companiesdo you believe grasp

and use the marketingconcept?2. Why do you believe

this?




Societal Marketing Concept

• Considersconsumers’ long-

run best interest• Good corporate

citizenship


http://promomagazine.com/othertactics/causecht08.3.pdf



The Marketing Concept

• ConsumerResearch

• Segmentation• Market

Targeting• Positioning

• Process of dividingthe market intosubsets of consumers with

common needs orcharacteristics


Implementing theMarketingConcept

Chapter One Slide 13




1. What products that you regularlypurchase are highly segmented?

2. What are the different segments?3. Why is segmentation useful to the

marketer for these products?








The selection of oneor more of thesegments identifiedto pursue










• Developing a distinct imagefor the product in the mindof the consumer

• Successful positioningincludes:

– Communicating thebenefits of the product

– Communicating a uniqueselling proposition






The Marketing Mix


l



Customer Value,Satisfaction, Trust, and

Retention




Successful Relationships

• CustomerValue

• CustomerSatisfaction

• Customer Trust

• Customer

Retention

• Defined as the ratiobetween thecustomer’s perceivedbenefits and theresources used toobtain those benefits

•

Perceived value isrelative and subjective• Developing a value

proposition is criticalCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Value,Satisfaction,Trust, and Retention





• How doesMcDonald’s

create value forthe consumer?• How do they

communicate thisvalue?





• CustomerValue


• Customer Trust

• Customer

Retention

• The individual'sperception of theperformance of theproduct or service inrelation to his or her

expectations.• Customer groups

based on loyaltyinclude loyalists,apostles, defectors,Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall






• CustomerValue


•

Customer Trust• Customer

Retention


• Establishing andmaintaining trustis essential.

• Trust is thefoundation formaintaining along-standingrelationship with

customers.






• CustomerValue


•

Customer Trust• Customer

Retention

• The objective of providing value is toretain highly satisfied

customers.• Loyal customers are

key – They buy more

products – They are less price

sensitive – Servicing them is

cheaperCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall



T 10 R k d U S C i i



Top 10 Ranked U.S. Companies inTerms of Consumers’ Trust and Respect

of Privacy

Table 1.2Top 10Companies

• American Express

• eBay• IBM• Amazon•

Johnson & Johnson• Hewlett-Packard• U.S. Postal

ServiceCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 26



Customer Profitability-Focused Marketing

• Tracks costs andrevenues of individual

consumers• Categorizesthem into tiersbased onconsumptionbehavior

• A customerpyramid groupscustomers intofour tiersCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall 25Chapter One Slide

THE TRADITIONAL MARKETING VALUE- AND RETENTION-



Copyright 2010 Pearson Education, Inc. publishing as Prentice HallChapter One Slide 26

THE TRADITIONAL MARKETINGCONCEPT

VALUE- AND RETENTION-FOCUSED MARKETING

Make only what you can sell instead of trying to sell what you make.

Use technology that enables customersto customize what you make.

Do not focus on the product; focus onthe need that it satisfies.

Focus on the product’s perceived value,as well as the need that it satisfies.

Market products and services thatmatch customers’ needs better than

competitors’ offerings.

Utilize an understanding of customerneeds to develop offerings that

customers perceive as more valuablethan competitors’ offerings.

Research consumer needs andcharacteristics.

Research the levels of profit associatedwith various consumer needs andcharacteristics.

Understand the purchase behaviorprocess and the influences on consumerbehavior.

Understand consumer behavior inrelation to the company’s product.

Realize that each customer transactionis a discrete sale.

Make each customer transaction part of an ongoing relationship with thecustomer.



Impact of DigitalTechnologies




The Mobile Consumer

• Wireless MediaMessages willexpand as:

–

Flat-rate datatraffic increases – Screen image

quality isenhanced

– Consumer-userexperienceswith webapplicationsimprove


Penetration of Internet Usage AmongMobile Subscribers in 16 Countries -

FIGURE 1.3

http://www.marketingcharts.com/



Consumer Behavior IsInterdisciplinary




A Simple Model of Consumer DecisionMaking - Figure 1.4

C ight 2010 P Ed ti I b li hi g P ti H ll

Schiffman CB10 PPT 01 Amended

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