Ch 1 Intro

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COM 343
REVIEW
MARKETING is…
THE FACILITATION
OF AN EXCHANGE PROCESS WHERE EACH
PARTY BENEFITS.
The MARKETING MIX is…
THE ELEMENTS OF MARKETING
OVER WHICH
THE MARKETER HAS CONTROL –
PRODUCT
PRICE
PROMOTION
PLACE
CHAPTER ONE
CONSUMER BEHAVIOUR
KEY CONCEPTS
The
MARKETING CONCEPT
Is: A BUSINESS PHILOSOPHY which states that
TO BE MORE PROFITABLE (EFFECTIVE) AN ORGANIZATION
MUST SATISFY CONSUMER NEEDS AND WANTS.
Or
CUSTOMER SATISFACTION IS THE BASIS FOR
ORGANIZATIONAL SUCCESS
2
IMPLEMENTING THE MARKETING CONCEPT
IS
A WAY OF DOING BUSINESS
TO DO THIS SUCCESSFULLY A BUSINESS MUST…
1.
KNOW AND UNDERSTAND CONSUMERS
:COMPLETELY
2.
SATISFY THEIR NEEDS BY OFFERING HIGH
VALUE GOODS / SERVICES
3.
DESIGN AND RUN THE ORGANIZATION TO
SERVICE CUSTOMER NEEDS
4.
EVERY EMPLOYEE, NOT JUST THE MARKETING
DEPARTMENT IS RESPONSIBLE FOR CUSTOMER
SATISFACTION
3
DEFINING CONSUMER BEHAVIOUR:
“THE DYNAMIC INTERACTION OF
AFFECT AND COGNITION,
BEHAVIOUR AND ENVIRONMENTAL EVENTS BY
WHICH HUMAN BEINGS CONDUCT
THE EXCHANGE ASPECTS OF THEIR LIVES”
AMERICAN MARKETING ASSOCIATION
Huh?
CONSUMER BEHAVIOUR IS:
THE PROCESS OF
SELECTION, PURCHASE & DISPOSITION OF
GOODS, SERVICES &/OR IDEAS
BY PEOPLE
IN AN ATTEMPT TO ACHIEVE SATISFACTION.
4
MARKETING STRATEGY…
IS A PLAN DESIGNED TO INFLUENCE
EXCHANGES
(CONSUMER BEHAVIOUR)
TO ACHIEVE
ORGANIZATIONAL OBJECTIVES.
Thru
1.
Segmentation based on
Demographics
Age, Gender, Family Structure, Social Class,
Income & Ethnicity
Psychographics - Lifestyle
Geography
2.
Relationship Marketing
The process of creating, maintaining & enhancing strong,
value-laden relationships with consumers
3.
Database Marketing
The acquisition and manipulation of consumption related
data to enable the customizing of marketing plans to
optimize the exchange process.
5
Marketing Strategy
&
It’s Impact on Consumers
MARKETING STRATEGIES
&
SOCIETAL EFFECTS
THE COMBINED
CONSUMPTION BEHAVIOUR
OF MILLIONS
OF CONSUMERS
CAN AND DOES CHANGE
OUR SOCIETY AND CULTURE.
MAKING LIFE A LOT BETTER
6
THE PIZZA BUSINESS REACHED
OVER $ 10 BILLION U.S. LAST YEAR!
ONE SHARE POINT
IN THE SIX BILLION DOLLAR
BREAKFAST CEREAL BIZ
IS WORTH
$60,000,000.00 U.S.!
LESS THAN TEN YEARS AGO WHEN ASKED –
OVER 75% OF RESPONDENTS IN NORTH AMERICA SAID
THAT THE MICROWAVE OVEN WAS THE PRODUCT THAT
HAD THE MOST PROFOUND IMPACT ON THEIR LIVES.
(FOUND IN OVER 85% OF HOUSEHOLDS)
SECOND PLACE?
THE VCR
THIRD?
TELEPHONE ANSWERING MACHINE
7
AND TODAY?
Marketing & Culture
‘Pop’ Culture
Reflects the social and cultural values acquired by
consumers thru the ‘on-going’ exchange relationships
(entertainment, recreation, sports & their celebrities)
that become intrinsic to their lives.
We are what we buy?
The Meanings of Consumption
Consumption often addresses both functional & emotional
needs.
Self-concept attachment helps establish user’s identity.
Nostalgic attachment – product serves as a link to past self.
Interdependence – product is a part of the daily routine.
Passion – product elicits strong emotional feelings.
The Global Consumer
Pop Culture vs. Traditional (Ethnic) Culture
Pop Cultural homogenization is a principle by-product of
global economic growth.
8
The Virtual Consumer
By next year, ‘On-line’ consumption will exceed $ 184
billion (10% of all Retail sales) – $ 4,000 / household!
Marketing & Reality: Blurred
Boundaries
Reality avoidance ~ Addictive behaviour
Marketing Ethics & Public
Policy
Business Ethics The rules of conduct that
guide a firms actions in the marketplace, based
on societal norms.
Ethical Standards of Conduct
1.
2.
3.
4.
5.
Disclosure of all substantial risks associated
with a product or service.
Identification of added features that will
increase the cost.
Avoidance of false or misleading advertising.
Rejection of ‘high-pressure’ or misleading
sales tactics.
Prohibition of selling or fund raising under
the guise of market research (interviews).
9
Needs or Wants?

Manipulation?

Do marketers create artificial needs?

Are advertising & marketing necessary?
Public policy & Consumerism
The current societal trend is to protect the
consumer (voter) from exploitation by
business (campaign contributor)
10
The Dark Side
Addictive Consumption: The psychological &/or
physiological dependency for products or
services. (tobacco)
Compulsive Consumption: The process of
repetitive (often excessive) shopping to relieve
tension, anxiety, depression or boredom.
Consumed Consumers: People who are used or
exploited (willingly or not) for commercial gain in
the marketplace. (organs for money)
11
Illegal Activities
Consumers: Who’s perfect?
 91 % admit to lying regularly!
 33 % about their weight
 1 in 5 has snuck into a theatre.
Consumer theft “Shrinkage”: the loss of money
or inventory from shoplifting or employee theft.
Anti-consumption: The deliberate defacement or
mutilation of a product.
Culture Jamming: Defacing advertising materials
as a form of ‘political’ expression
12
The Study of Consumer Behaviour
Attracts an ever growing number of disciplines
and interest groups.
Knowledge is power.
See Fig. 1-2, pg. 32.
Two Perspectives On Research Paradigms
A Paradigm is a popular conceptual construct
(model) based on either:
Positivism: the scientific method based on
observable logic.
Or
Intrepretivism cultural relativism based
on subjective perceptions
13
ISSUES OF ETHICAL RESPONSIBILITY
QUESTION:
“ARE THERE ANY CONSUMER BEHAVIOURS THAT
YOU AS A MARKETER, WOULD PERSONALLY FEEL
UNCOMFORTABLE IN TRYING TO INFLUENCE?”
WHY? / WHY NOT?
WHAT COULD / SHOULD YOU DO IN SUCH A
CIRCUMSTANCE?
14
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