1. Understanding Marketing Processes and Consumer Behavior

7/24/2019 1. Understanding Marketing Processes and Consumer Behavior

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UnderstandingMarketingProcesses

and Consumer

Behavior


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What Is Marketing?

Process of planning andeecuting theconception! pricing!promotion anddistri"ution of ideas!goods and services to

create echanges thatsatisf# individual andorgani$ational

o"%ectives


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What Is a MarketingPlan?

&etailed strateg# forfocusing marketing

e'orts on consumerneeds and (ants


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Who )re MarketingManagers?

Manager (ho plans andimplements the marketingactivities that result in the

transfer of products orservices from producer to

consumer


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Marketing: Providing Valueand Satisfaction

Value and Benefits

Valueis the relative comparison of

a products benefits versus its costs

Benefitsinclude the functions of

the product and the emotional

satisfaction associated with

owning, experiencing orpossessing it


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Marketing: Providing Valueand Satisfaction

Value and Utility

Utilityis the ability of a product to satisfy

a human want or need !our "inds#

Time Utility

Place Utility

Ownership Utility

Form Utility


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What Is *elationship

Marketing?

Marketingstrateg# that

emphasi$eslastingrelationships (ith

customers andsuppliers


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Marketing: Goods, Servicesand Ideas

Consumer goodsare

products purchased by

consumers for personal use

Industrial goodsare

products used by companies

to produce other products

Servicesare intangibleproducts that can be

purchased


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Te Marketing !nvironment

!"ternal environmentis the combination of

outside factors that influence mar"eting programs

by posing opportunities and threats!ive

environmental factors# PoliticalLegal Environment

SocialCultural Environment

Technological Environment Economic Environment

Competitive Environments


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Com#etitive !nvironment

Su$stitute #roductsdiffer from

those of competitors but can fill

the same need


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Brand com#etitionoccurs

between similar products


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International com#etition

matches domestic products

against foreign products eg(apal vs )ipton


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What Is the Marketing Mi+or the ,-our P.s/0?

Com"ination ofproduct!pricing!promotion anddistri"ution+place0strategies usedto marketproducts


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%at Is a Product&

* #roductis a good, service oridea designed to fill a consumer

need or want


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%at Is a Product&

Product differentiationis the

creation of a product feature

or product image that differs

enough from competingproducts to attract consumers

+ow do they differentiate themselves


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%at Is Pricing&

Pricingis the process of selecting thebest price at which to sell a product

-rices must support a variety of costs

-rices must be competitive

Low- and high-price strategies can be

effective in different situations


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%at Is 'istri$ution (Place)&

'istri$utionis part of the

mar"eting mix concerned with

getting products from producers to

consumers

.ecisions about warehousing, inventory

control and transportation options

.ecisions about channels


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%at Is Promotion&

Promotion is the techni/ues for

communicating information about

products (here are different

promotional tools eg

dvertising

Personal Selling Sales Promotions

Pu!lic "elations


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%at Is Target Marketing andMarket Segmentation&

Target marketsare groupsof people with similar wantsand needs

Market segmentationisthe process of dividing amar"et into categories ofcustomer types


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Identifying Market Segments

#eographic varia!lesare

geographical units eg provinces,

cities etc

$emographic varia!lesare

characteristics of populations eg

*ge, 0ender, ducation, ncome,ccupation, arital tatus, -arental

tatus etc


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Identifying Market Segments

Psychographic varia!lesareconsumer characteristics such aslifestyles, personality andattitudes

%ehavioral varia!lesareconsumer characteristics basedon the use of a product, benefits

sought from it, reasons for itspurchase and brand loyalty (oothpaste with#

7hiteners

!luoride

outh !reshener

edicaments


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What Is Brand 1o#alt#?

Pattern of regularconsumer purchasing

"ased on satisfaction(ith a product


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What Is Marketing*esearch?

Stud# of consumerneeds and (ants andthe (a#s in (hich

sellers can "est meetthem


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Te *esearc Process

tudy the current situation

elect a research method

8ollect data9 Secondary datais already available

from previous research

9 Primary datais collected through newresearch

*naly:e the data

-repare a report


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*esearc Metods

+$servationinvolves watching andrecording consumer behavior

Surveyuses a /uestionnaire which serves

as the basis of interviews


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*esearc Metods

ocus grou#involves a small gathering ofpeople who are presented with an issue and

as"ed to discuss it in depth

!"#erimentation compares the responses

of the same or similar people under different

circumstances under a controlled

environment


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What Is ConsumerBehavior?

Stud# of the decisionprocess "# (hich people

"u# and consumeproducts

I fl C


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Influences on ConsumerBeavior

Psycological influences#individuals motivations,perceptions and attitudes

Personal influences: lifestyle,personality and economic status

Social influences# family, opinionleaders and reference groups

Cultural influences# culture,subculture and social class


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Consumer Buying Beavior

1. Understanding Marketing Processes and Consumer Behavior

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