Your text for this subject…. Consumer Behaviour Implications for Marketing Strategy FIFTH EDITION By Quester & Neal Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-1 Consumer Behaviour (subject code) • Lecturer’s name • Contact details • Office hours … or by appointment Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-2 Welcome to Consumer Behaviour • Why study consumer behaviour (CB)? • What is consumer behaviour? • How does it affect marketing strategy? Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-3 The marketing car Marketing manager Advertising Consumer behaviour ‘the engine of marketing’ Market research Distribution Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-4 Consumer behaviour knowledge is the ‘engine’ of a marketing strategy Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-5 Subject objectives • Knowledge and understanding – – – Theories working model of CB Implications for strategic marketing decisions A focus on marketing decisions • Communication skills – Increase your skills in developing and presenting ideas orally and in writing Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-6 Assessment (example) • Final 2 hour exam – – 50% Includes an unseen case study (Min 45% required to pass course) • Mid semester test (date) • Tutorial participation • Tutorial material preparation • Tutorial case study 15% 10% 10% 15% 100% Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-7 Hint • When answering case studies and exam questions, think of the TEAS approach: T = Theory E = Explain the relevant theory A = Apply the theory S = Strategy Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-8 Reading • Consumer Behaviour Implications for Marketing Strategy Quester-Neal 5th edition • Communication skills handbook – Resource Centre Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-9 Course structure • Introduction • Consumer decision process • Internal influences • External influences • Organisational buying • Consumers and society Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-10 Chapter 1: Consumer behaviour and marketing strategy • Studying the consumer is important for marketers • Implications of consumer behaviour for marketing strategy • Components of a consumer behaviour audit • Relevance of consumer behaviour for non-profit organisations, government agencies or consumer groups • A working model of consumer behaviour Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-11 Understanding consumer behaviour Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-12 Consumer behaviour and marketing strategy • Positioning strategy • Market segmentation • New products • New market applications • Global marketing • Marketing mix • Consumerism • Non-profit marketing Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-13 Consumer behaviour is productperson-situation specific Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-14 Consumer behaviour is productperson-situation specific • Product specific • Person-individual • Situation Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-15 How consumer influences drive marketing decisions Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-16 Consumer influences • External influences • Internal influences • Situational influences • Decision-type influences Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-17 Marketing decisions At each stage in this course you will be required to consider the importance of consumer behaviour knowledge in the development of marketing strategy. Marketing decisions are based on: • Market segmentation • Product positioning • Marketing mix Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-18 Definitions of consumer behaviour • The dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives (American Marketing Association) • A discipline dealing with how and why consumers purchase (or don’t purchase) products and services. (Neal et al.) Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-19 Definitions of consumer behaviour (cont.) • Those behaviours performed by decision-making units in the purchase, usage and disposal of goods and services (Kotler & Levy) Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-20 Consumer lifestyle and consumer decisions Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-21 An overview of consumer behaviour • Consumers’ needs/attitudes influence consumption decisions • These are reflected in consumer choices • In turn, consumers respond to: – Reduce, maintain or enhance their lifestyle • Consumer lifestyle - a basis for understanding consumption Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-22 Consumer decision process Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-23 Consumer decision process • Consumers are problem solvers In a given situation the decision process involves: • Problem recognition • Information search • Evaluation and selection • Store choice and purchase • Postpurchase processes Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-24 Factors that determine and influence consumer lifestyles Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-25 Overall model of consumer behaviour Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-26 Multicultural positioning Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-27 Next lecture Chapter 2: Situational Influences Chapters 2, 3, 4, 5, 6 & 7 study the consumer decision process Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 1-28