* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download “Understanding Consumers”
Brand loyalty wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Darknet market wikipedia , lookup
Grey market wikipedia , lookup
Social media marketing wikipedia , lookup
Marketing research wikipedia , lookup
Marketing plan wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Online shopping wikipedia , lookup
Product placement wikipedia , lookup
Viral marketing wikipedia , lookup
Planned obsolescence wikipedia , lookup
Digital marketing wikipedia , lookup
Market analysis wikipedia , lookup
Service parts pricing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Marketing communications wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Price discrimination wikipedia , lookup
Visual merchandising wikipedia , lookup
First-mover advantage wikipedia , lookup
Direct marketing wikipedia , lookup
Street marketing wikipedia , lookup
Product lifecycle wikipedia , lookup
Perfect competition wikipedia , lookup
Food marketing wikipedia , lookup
Supermarket wikipedia , lookup
Youth marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Multicultural marketing wikipedia , lookup
Consumer behaviour wikipedia , lookup
Pricing strategies wikipedia , lookup
Market penetration wikipedia , lookup
Market segmentation wikipedia , lookup
Target audience wikipedia , lookup
Advertising campaign wikipedia , lookup
Green marketing wikipedia , lookup
Global marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Neuromarketing wikipedia , lookup
Target market wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Marketing strategy wikipedia , lookup
Unit 2 “Understanding Consumers” Consumer Behavior Buying Motives Influences on the Consumer Decision Making Segmentation Why Do People Buy Products? • To satisfy their individual wants and needs. •To enjoy the benefits that products offer. Consumer Behavior: The study of consumers and how they make buying decisions. • People make product decisions every day. • Marketers spend millions of dollars to uncover the reasons behind these decisions. Successful marketers consider: What makes or forces or influences customers to buy? How, Where, When & Why they make those choices. 5 Reasons You Buy (Buying Motives) 1. Physical – food, sleep, water, shelter, air 2. Psychological (mental): • Security (physical safety & economic security) • Social ( friends, love, belonging) • Esteem (respect and recognition) 3. Emotional – feelings (pleasure, excitement) 4. Rational – facts (convenience, performance) 5. Patronage – loyalty to a product or business What Influences YOU in Decision-Making? External Internal Marketing Product Price Place Promotion Decision-Making Process: 1) problem recognition; 2) information search; 3) alternative evaluation; 4) purchase; and 5) post-purchase evaluation. Buyer’s Remorse – 2nd thoughts about expensive purchase. 3 Types of Decision-Making 1. ________________ – purchased frequently with little thought; over time becomes a habit; little to no time to communicate to customers. 2. _______________ – requires more time and is usually more expensive; some time to give information. 3. _____________________ - requires going through all five stages; very expensive or life changing; plenty of time/opportunity to communicate to customers. Market Segmentation • Market – all potential customers a company would like to serve. • Mass Marketing – try to appeal to the entire market; “one size fits all”. • Segmentation– ID smaller group(s) whose members share 1+ characteristics (variables). • Target Marketing – focus time, money, and effort on segment that wants to & is able to buy. • “Mass” vs “Target” Pros and Cons? Pros and Cons Mass Marketing Target Marketing • Simpler (1) strategy • More difficult strategy (multiple markets) • Reaches more people • Better focus of company’s • Reaches a lot who won’t buy product. – Time • Hopes that the right – Effort consumers get message – Money Concentrates on just those people likely to buy. 5 Segmentation Variables 1. Geographic – dividing consumers into markets based on where they live. 2. Demographic – age, gender, race, income, and educational level; measurable statistics. 3. Psychographics – peoples’ social class, lifestyles & personalities (Baby Boomer, active, etc). 4. Product Usage – how consumers use the product and how often . 5. Benefits Derived – value or satisfaction consumers receive from a product. How do these variables help a business? Questions for a Good Market Segment Are there enough customers to be worthwhile? Would they buy the product? Can they afford to buy the product? Can they be reached by promotion/distribution? Market Potential –total revenue that can be gotten from a market segment. Market Share – % of the total market that each company or product controls. Marketing Intelligence – process of gathering competitive marketing information. Competition – rivalry between 2+ businesses for the consumers’ spending money. Types of Competition • Direct – sells product within same category • Indirect – sells product outside of category (Delta vs United; Delta Airlines vs Amtrak Trains) • Price Competition – sales & discounts, etc. • Non-Price Competition – focus is on quality, brand, location, or service. Consumers Benefit From Competition • • • • • •