Directory UMM :Data Elmu:ppt:
Chapter 1
Consumer Behavior &
Marketing Management
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
Consumer benefits
Total product concept
Market segmentation and
segmentation strategies
Positioning
Consumer decision-making
Engel, Kollat, and Blackwell (EKB)
Model
Copyright Atomic Dog Publishing, 2002
Course Objectives
Better understand why people do what they
do in the marketplace when they do it
Better understand yourself as a shopper,
buyer, and consumer
Improve yourself as a shopper, buyer, and
consumer
Improve your current/future job performance
Better understand marketer communications
and behaviors in the marketplace
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
People do not buy products or
services, they buy benefits
Hence we make purchases not for
the products themselves, but for the
benefits of the problems they solve
or the opportunities they offer
e.g., “always late” so a watch helps
solve problem; has stopwatch feature so
now can keep track of “work out” times
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
Consumers seek
bundles of types of
benefits:
Tangible benefits: e.g.,
a watch keeps good
time; has leather band
Intangible benefits:
e.g., the “reliability”
reputation of the
watch manufacturer;
the image of the
watch wearer
Copyright Atomic Dog Publishing, 2002
The Total Product Concept
Total product: refers to the sum of benefits
offered by a product, service, outlet, etc.
Basic core: bundle of utilitarian benefits (e.g., design,
features, etc.)
Accessory ring: added-value benefits with no
apparent extra cost (e.g., store reputation,
manufacturer prestige, convenient location, etc.)
Psychological ring: benefits resulting from the
consumer’s feelings associated with owning/using
the product (e.g., belonging, youthful, powerful,
sexy, etc.)
Time: products/service “give” or “take” time; this can
be “good” or “bad” (e.g., fast food versus
conventional restaurant)
Copyright Atomic Dog Publishing, 2002
Market Segmentation
Market segmentation is the study
of the marketplace in order to
discover already existing viable
groups of consumers who are
similar or homogeneous in their
approaches to choosing and/or
consuming goods and services.
Copyright Atomic Dog Publishing, 2002
Segment Bounding
Segment bounding is a means by which
marketers differentiate among consumers
and among market segments
Determine the “descriptors” of the
consumers/units in the segment (e.g.,
demographics, psychographics, benefits sought,
product usage rate, type of retail outlet, etc.)
Determine specific “geographic location” of
segment
Bound segments in “time” to ensure that all data
is relevant and up to date for the time of use.
Copyright Atomic Dog Publishing, 2002
Segment Viability
Four factors are
used to assess
segment viability.
Viable segments
are:
Of sufficient size
Measurable
Differentiated
Reachable
Copyright Atomic Dog Publishing, 2002
Segmentation Strategies
Mass marketing (undifferentiated
marketing): offering the same product to
the entire consumer population
Concentrated marketing (focused or
niche marketing): selecting one market
segment, even though the product may
also appeal to others
Differentiated marketing: selecting two
or more different segments
Copyright Atomic Dog Publishing, 2002
Segmentation in the
Global Marketplace
There are two approaches to market
segmentation
Localization: treating each country as a
separate market and seeking consumer
segments accordingly
Intermarket segmentation (also called
“standardization”): selecting groups of
consumers who exhibit similar consumption
behavior across different countries
Marketers emphasize similarities rather than
differences across country markets
Copyright Atomic Dog Publishing, 2002
Consumer Benefits and
Product Positioning
Product positioning is the placement of a product,
service, outlet, etc. in the mind of the consumer
There are five ways used to position products,
services, outlets, etc.
On perceived benefits
On image
On attributes
Against competitors
Combination of two or more of the above
Repositioning: shifting position in the consumer’s
mind through changes in important product, price,
distribution, and promotional and/or personal selling
benefits.
Copyright Atomic Dog Publishing, 2002
The Consumer DecisionMaking Process
A consumer decision
model is a means of
describing the processes
that consumers go
through before, during,
and after making a
purchase (choice).
A model shows the
causes or antecedents
of a particular behavior
and each of its results or
consequences.
Copyright Atomic Dog Publishing, 2002
Engel, Kollat, and
Blackwell (EKB) Model
The EKB model is comprehensive and
shows the components of decision
making and the relationships and
interactions among them.
The five distinct parts of consumer
decision making presented are:
Input, information processing, a decision
process, decision process variables, and
external influences
Copyright Atomic Dog Publishing, 2002
Input
Input includes all kinds of stimuli from
our contact with the world around us:
Our experiences, contact with others
Marketer-controlled stimuli (e.g.,
advertising, store display,
demonstrations)
Other stimuli (e.g., personal recollections,
conversations with friends)
External search
Copyright Atomic Dog Publishing, 2002
Information Processing
Stimuli are processed
into meaningful
information
Five methods of
information processing:
Exposure
Attention
Comprehension
Yielding
Retention
Copyright Atomic Dog Publishing, 2002
Decision Process
It is triggered at any time during
information processing
It consists of five steps:
Problem recognition
Search
Alternative evaluation
Choice
Outcomes (post-purchase evaluation and
behavior)
Copyright Atomic Dog Publishing, 2002
Decision Process Variables
Those individual qualities that make
people/consumers unique.
Decision process variables include
Motives
Beliefs
Attitudes
Lifestyles
Intentions
Evaluative criteria
Normative compliance and informational influence
Other aspects of self
Copyright Atomic Dog Publishing, 2002
External Influences
Such influences are
called “Circles of
Social Influence.”
They are: culture,
sub-culture (coculture), social
class, reference
groups, and family
or household
influences
Copyright Atomic Dog Publishing, 2002
Consumer Behavior &
Marketing Management
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
Consumer benefits
Total product concept
Market segmentation and
segmentation strategies
Positioning
Consumer decision-making
Engel, Kollat, and Blackwell (EKB)
Model
Copyright Atomic Dog Publishing, 2002
Course Objectives
Better understand why people do what they
do in the marketplace when they do it
Better understand yourself as a shopper,
buyer, and consumer
Improve yourself as a shopper, buyer, and
consumer
Improve your current/future job performance
Better understand marketer communications
and behaviors in the marketplace
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
People do not buy products or
services, they buy benefits
Hence we make purchases not for
the products themselves, but for the
benefits of the problems they solve
or the opportunities they offer
e.g., “always late” so a watch helps
solve problem; has stopwatch feature so
now can keep track of “work out” times
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
Consumers seek
bundles of types of
benefits:
Tangible benefits: e.g.,
a watch keeps good
time; has leather band
Intangible benefits:
e.g., the “reliability”
reputation of the
watch manufacturer;
the image of the
watch wearer
Copyright Atomic Dog Publishing, 2002
The Total Product Concept
Total product: refers to the sum of benefits
offered by a product, service, outlet, etc.
Basic core: bundle of utilitarian benefits (e.g., design,
features, etc.)
Accessory ring: added-value benefits with no
apparent extra cost (e.g., store reputation,
manufacturer prestige, convenient location, etc.)
Psychological ring: benefits resulting from the
consumer’s feelings associated with owning/using
the product (e.g., belonging, youthful, powerful,
sexy, etc.)
Time: products/service “give” or “take” time; this can
be “good” or “bad” (e.g., fast food versus
conventional restaurant)
Copyright Atomic Dog Publishing, 2002
Market Segmentation
Market segmentation is the study
of the marketplace in order to
discover already existing viable
groups of consumers who are
similar or homogeneous in their
approaches to choosing and/or
consuming goods and services.
Copyright Atomic Dog Publishing, 2002
Segment Bounding
Segment bounding is a means by which
marketers differentiate among consumers
and among market segments
Determine the “descriptors” of the
consumers/units in the segment (e.g.,
demographics, psychographics, benefits sought,
product usage rate, type of retail outlet, etc.)
Determine specific “geographic location” of
segment
Bound segments in “time” to ensure that all data
is relevant and up to date for the time of use.
Copyright Atomic Dog Publishing, 2002
Segment Viability
Four factors are
used to assess
segment viability.
Viable segments
are:
Of sufficient size
Measurable
Differentiated
Reachable
Copyright Atomic Dog Publishing, 2002
Segmentation Strategies
Mass marketing (undifferentiated
marketing): offering the same product to
the entire consumer population
Concentrated marketing (focused or
niche marketing): selecting one market
segment, even though the product may
also appeal to others
Differentiated marketing: selecting two
or more different segments
Copyright Atomic Dog Publishing, 2002
Segmentation in the
Global Marketplace
There are two approaches to market
segmentation
Localization: treating each country as a
separate market and seeking consumer
segments accordingly
Intermarket segmentation (also called
“standardization”): selecting groups of
consumers who exhibit similar consumption
behavior across different countries
Marketers emphasize similarities rather than
differences across country markets
Copyright Atomic Dog Publishing, 2002
Consumer Benefits and
Product Positioning
Product positioning is the placement of a product,
service, outlet, etc. in the mind of the consumer
There are five ways used to position products,
services, outlets, etc.
On perceived benefits
On image
On attributes
Against competitors
Combination of two or more of the above
Repositioning: shifting position in the consumer’s
mind through changes in important product, price,
distribution, and promotional and/or personal selling
benefits.
Copyright Atomic Dog Publishing, 2002
The Consumer DecisionMaking Process
A consumer decision
model is a means of
describing the processes
that consumers go
through before, during,
and after making a
purchase (choice).
A model shows the
causes or antecedents
of a particular behavior
and each of its results or
consequences.
Copyright Atomic Dog Publishing, 2002
Engel, Kollat, and
Blackwell (EKB) Model
The EKB model is comprehensive and
shows the components of decision
making and the relationships and
interactions among them.
The five distinct parts of consumer
decision making presented are:
Input, information processing, a decision
process, decision process variables, and
external influences
Copyright Atomic Dog Publishing, 2002
Input
Input includes all kinds of stimuli from
our contact with the world around us:
Our experiences, contact with others
Marketer-controlled stimuli (e.g.,
advertising, store display,
demonstrations)
Other stimuli (e.g., personal recollections,
conversations with friends)
External search
Copyright Atomic Dog Publishing, 2002
Information Processing
Stimuli are processed
into meaningful
information
Five methods of
information processing:
Exposure
Attention
Comprehension
Yielding
Retention
Copyright Atomic Dog Publishing, 2002
Decision Process
It is triggered at any time during
information processing
It consists of five steps:
Problem recognition
Search
Alternative evaluation
Choice
Outcomes (post-purchase evaluation and
behavior)
Copyright Atomic Dog Publishing, 2002
Decision Process Variables
Those individual qualities that make
people/consumers unique.
Decision process variables include
Motives
Beliefs
Attitudes
Lifestyles
Intentions
Evaluative criteria
Normative compliance and informational influence
Other aspects of self
Copyright Atomic Dog Publishing, 2002
External Influences
Such influences are
called “Circles of
Social Influence.”
They are: culture,
sub-culture (coculture), social
class, reference
groups, and family
or household
influences
Copyright Atomic Dog Publishing, 2002