Download Marketing Begins with Customers

MARKETING BEGINS
WITH CUSTOMERS
6.1 Understanding Consumer Behavior
6.2 What Motivates Buyers?
6.3 Types Of Decision-Making
© South-Western Publishing
UNDERSTANDING
CONSUMER BEHAVIOR
GOALS for Lesson 6.1
Describe the importance of
understanding consumer behavior.
Demonstrate and understanding of
consumer wants and needs.
© South-Western Publishing
Consumer Behavior
Important for marketers to understand
consumers (needs and wants) and their
buying behavior
 Final Consumers – buys a product or
service for personal use
 Business Consumers – buys goods and
services to produce and market other goods
and services or for resale
© South-Western Publishing
Consumers’
Wants and Needs
A want is an unfulfilled desire.
A need is anything you require to live.
 Abraham Maslow’s Hierarchy of Needs
 Different People, Different Levels
© South-Western Publishing
Maslow’s Hierarchy of Needs
identified five areas of needs and the
progression people follow in satisfying
needs.
Five Areas - physiological, security, social,
esteem, self-actualization
© South-Western Publishing
Maslow’s Hierarchy of Needs
Self-Actualization (to realize your potential)
Esteem (respect and recognition)
Social (friends, love, belonging)
Security (physical safety and economic security)
Physiological (food, sleep, water, shelter, air)
© South-Western Publishing
Different People, Different
Levels
Marketers must understand each individuals
need no matter what level
 House – provides shelter from weather
 House – safe neighborhood provides security
 House – in a neighborhood with lots of families
might satisfy social needs
 House – well maintained could provide self-esteem
 House – designed and built by the owner might
provide self-actualization
© South-Western Publishing
Group Activity
Illustrate Maslow’s Hierarchy of
Needs, then label, explain and
provide examples for each level.
Then explain why it is important for
marketing firms and businesses to
understand the levels of consumer’s
needs and wants.
© South-Western Publishing
WHAT MOTIVATES
BUYERS?
GOALS for Lesson 6.2
Distinguish between different buying
motives.
Describe the five steps of the consumer
decision-making process.
© South-Western Publishing
Buying Motives
Emotional motives
Rational motives
Patronage motives
© South-Western Publishing
Emotional Motives
Reasons to purchase based on feelings,
beliefs, or attitudes (love and affection,
guilt, fear, passion)
Hallmark Cards – love and affection
Security Systems – fear of being robbed
© South-Western Publishing
Rational Motives
Reasons to buy based on facts or logic
 saving money
 durability
 saving time
© South-Western Publishing
Patronage Motives
Reasons to buy based on loyalty
 low prices, high quality, friendly staff, great
customer service, convenient location
 people become loyal to a product or service
 business encourage patronage motives,
helps lower competition
© South-Western Publishing
Buying Behavior
The decision processes and actions of
consumers as they buy and use services and
products
Consumer Decision Making Process
 Problem Recognition
 Information Search
 Evaluation of Alternatives
 Purchase
 Post Purchase Evaluation
© South-Western Publishing
The
DecisionMaking
Process
Postpurchase
Evaluation
Purchase
Alternative
Evaluation
Information
Search
Problem
Recognition
© South-Western Publishing
Problem Recognition
The consumer must recognize a need,
want or desire
Example – You want to be able to play
golf, so you recognize the need to find
an instructor
© South-Western Publishing
Information Search
The consumer must then gather
information
Example – ask friends or family, go to
the local golf course, check the
newspaper
© South-Western Publishing
Alternative Evaluation
Evaluate the various alternatives to
determine which is best. (summarize,
compare, rank)
Example – who can you afford or what
hours are available
© South-Western Publishing
Purchase
Decide and make the purchase
Example – You decide to take lessons
at the local driving range, instead of the
golf course. You call and schedule a
lesson.
© South-Western Publishing
Post Purchase Evaluation
The consumer judges the satisfaction or
dissatisfaction with the product or
service.
Example – You have had a few lessons
and you can consistently hit the ball in
the air with all your clubs, so you are
satisfied with your improvement.
© South-Western Publishing
TYPES OF
DECISION-MAKING
GOALS for Lesson 6.3
Describe the influences on the
consumer decision-making process.
Explain how consumers and businesses
use routine, limited, and extensive
decision-making.
© South-Western Publishing
Influences on the Consumer
Decision-Making Process
Personality
Social class
Cultural environment
Reference groups
© South-Western Publishing
Personality
A well defined, enduring pattern of
behavior that influences buying
decisions, everyone has their own
preferences.
Sports car vs. pick up truck vs. sedan
© South-Western Publishing
Social Class
The lifestyle, values, and beliefs that are
common to a group of people.
 Income level
 Neighborhood
Examples – brand differences (Rolex vs.
Fossil)
© South-Western Publishing
Cultural Environment
A set of beliefs or attitudes that are
passed on from generation to
generation.
Examples -
© South-Western Publishing
Reference Groups
Groups or organizations from which you
take your values and attitudes.
 Strong influence on buying behavior
 Church groups, fraternities, work groups,
civic organizations, peer groups
Examples - clothes
© South-Western Publishing
Types of
Decision-Making
Routine decision-making
Limited decision-making
Extensive decision-making
© South-Western Publishing
Routine Decision-Making
Used for purchases that are made
frequently and do not require much
thought
 Familiar with the product
 Same brand
 Easy substitution
 Final Consumers and Business Consumers
use Routine Decision-Making
© South-Western Publishing
Limited Decision-Making
Takes more time, often is associated
with a product that is more expensive or
purchased less frequently.
 Jeans – try on, color, compare price, styles
 Office equipment, furniture
© South-Western Publishing
Extensive Decision-Making
Happens when the consumer
methodically goes through all five-steps
of the decision-making process
 New car
 New mainframe computer system
 New delivery trucks
© South-Western Publishing
The
DecisionMaking
Process
Postpurchase
Evaluation
Purchase
Alternative
Evaluation
Information
Search
Problem
Recognition
© South-Western Publishing
Marketers’ Response
If the consumer considers alternatives
 The opportunity to explain the benefits of
their product or service
If the consumer is brand-loyal
 Will work to insure the product is always
available and at the price you expect
© South-Western Publishing