Download Understanding Marketing and Consumer Behavior

Fourth Edition
PART 4 . . . . . . . . . . . . . . . . . . . . . . . .
Understanding Principles of Marketing
Copyright ©2003 Prentice Hall, Inc.
Chapter 10
Understanding Marketing
Processes and Consumer
Behavior
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10 - 2
“In our factory, we make
lipstick. In our advertising,
we sell hope.”
~ Charles Revson
Revlon Cosmetics
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Key Topics
Definition of marketing
The external marketing environment
Segmentation and target marketing
The consumer buying process
Organizational markets and buying behavior
Consumer and industrial products
Branding and packaging
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What Is Marketing?
“Planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual
and organizational objectives”
OR
Finding a need and filling it!
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The Influence of Marketing
Permeates Everyday Life
Goods
Consumer
Industrial
Services
Ideas
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Relationship marketing
emphasizes lasting
relationships with
customers and suppliers
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The External Environment
Shapes Marketing Programs
Political
& Legal
Environment
Competitive
Environment
The Firm & It's Marketing Plan
 Plans
 Strategies
Social &
Economic
Cultural
 Decisions
Environment
Environment
Technological
Environment
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The Competitive Environment
Drives Marketing Decisions
Substitute product competition
Brand competition
International competition
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Marketing Mix
The “Four P’s”
roduct
ricing
lace
(Distribution)
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romotion
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The Promotional Mix
Advertising
Sales
Promotions
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Personal
Selling
Public
Relations
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Market Segmentation & Target Marketing
Market Segmentation
Dividing a market into
customer categories
Target Marketing
Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products
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10 - 11
Identifying Market Segments
Geographic Demographic
Variables
Variables
Psychographic
Variables
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Consumer Behavior
Why do
consumers
purchase and
consume
products?
Psychological Influences
Personal Influences
Social Influences
Cultural Influences
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The Consumer Buying Process
Personal & Environmental Factors
Psychological
Problem
Recognition
Personal
Information
Seeking
Social
Evaluation of
Alternatives
Purchase
Decision
Cultural
Postpurchase
Evaluation
Marketing Factors
Product
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Pricing
Promotion
Place
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Organizational Markets
Industrial
Market
Reseller
Market
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Government &
Institutional Market
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Organizational Buying Behavior
Differences in buyers
Professionals
Specialists
Experts
Differences in buyer/seller relationships
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Product Features and Benefits
Features
Tangible and intangible
qualities that a company
builds into its products
Benefits
The results of using
those products
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10 - 17
Classifying Products
Consumer
Industrial
Convenience Goods
Expense Items
Shopping Goods
Capital Items
Specialty Goods
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Product Offerings
Product Line
A group of similar products, intended for similar
buyers, who will use them in similar ways.
Product Mix
The total group of products that a company offers
for sale.
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Developing New Products
The New Product Development Process
Product Mortality Rates
Strategy of introducing new products to respond
quickly to customer or market changes
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10 - 20
Creating Product Brands
Branding
Using symbols to communicate the qualities
of a given product to create loyal consumers
Types of Brands:
National Brands
Licensed Brands
Private Brands
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10 - 21
The World’s 10 Most Valuable Brands
1. Coca Cola
6. Intel
2. Microsoft
7. Disney
3. IBM
8. Ford
4. GE
9. McDonald’s
5. Nokia
10.AT&T
Source: “The Best Global Brands,” BusinessWeek, August 6, 2001
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The Future of Top Brands
Gaining Value…
Losing Value…
Starbucks
+32%
Xerox
-38%
Samsung
+22%
Amazon.com -31%
Financial Times +14%
Yahoo!
-31%
GE
+11%
Duracell
-30%
Guinness
+11%
Ford
-17%
Source: “The Best Global Brands,” BusinessWeek, August 6, 2001
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Product Packaging
Attracts consumers
Displays brand name
Protects contents
Supplies information
Communicates features
and benefits
Provides features and
benefits (e.g. easy pour
spout)
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The International Marketing Mix
PRODUCTS
PRICING
PROMOTION
DISTRIBUTION
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Small Business and the Marketing Mix
Products
Pricing
Promotion
Distribution
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Chapter Review
Define marketing
Describe the forces of the external marketing
environment
Explain market segmentation and target
marketing
Describe the consumer buying process
Discuss the organizational market categories
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Chapter Review
Define product and distinguish between
consumer and industrial products
Explain the importance of branding and
packaging
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