Chapter 2 continued
Company
LOGO
2.3 The Consumer Market
 everyone has a unique blend of personality,
values, beliefs, physical features, history, etc.
 if marketers are to be successful, they need
to understand their potential customers to
anticipate or influence their needs and wants
 marketers create consumer profiles of the
kind of people most likely to be attracted to a
product
 it turns out that groups of people who are
attracted to one product are often attracted to
others
2.3 The Consumer Market
 then they attempt to combine
consumers into cohorts, groups with
similar characteristics called
consumer segments

ex: teenagers, baby boomers, boarders,
etc.
 these are further divided into primary
(most likely consumers) market and
secondary (occasional consumers)
market
 most marketing is aimed at primary
market
Example
 Let’s take for example a cup of coffee at
Starbucks.
 Who would be attracted to this product?
(i.e. age group, gender, etc.)
 Who would you consider the primary
market and who would be the secondary?
2.3 The Consumer Market
 Psychographics



system for measuring consumers beliefs,
opinions and interests
looks to recognize patterns so that
marketing mix can be done more
effectively
ex: people who are interested in exercise
likely value low fat foods
2.3 The Consumer Market
 Geographics


marketing based on patterns based on
where people live
ex: rural consumers have different needs
(snow removal, grass cutting) than
apartment dwellers in the inner city (may
not even need a car)
2.4 Consumer Motivation
 Motivation is the biological, emotional,
rational and/or social force that initiates
and directs behaviors
 since buying is a behaviour, marketers
need to understand motivation
 biological forces are linked to our most
basic needs for survival

these need to be satisfied first
2.4 Consumer Motivation
emotional forces include love, sympathy,
joy, anger, fear, etc.


can either motivate the consumer positively
(like love) or negatively (like fear)
most purchases mix of positive and negative
rational forces are often in conflict with
emotional ones


rational forces deal with logic
ex: cost, convenience, safety, needs
2.4 Consumer Motivation
societal forces are caused by other people


friends, family and society in general
celebrity endorsements are an example
motivational theories are used to explain
human behavior
Thorndike’s Law of Effect


consumers are motivated to buy products that
produce positive events and reduce negative
events
most purchases are influenced by both
2.4 Consumer Motivation
 Maslow’s Hierarchy of Needs

consumers respond to motivation according to
levels of needs in this order:
 physiological
 safety/security
 affiliation
 esteem

if these needs are met, the person may then
be motivated by growth needs
2.4 Consumer Motivation
 Alderfer’s ERG Theory

He modified Maslow’s theory to include only
three levels of human needs:
 Existence

All physical and psychological needs necessary for
survival
 Relatedness

All needs for personal relationships
 Growth

Need to be productive, self fulfillment
2.5 The Buying Decision

1.
2.
3.
4.
5.
6.
the buying process occurs in response
to a need or want, for example
MP3 player breaks
decisions made on what to buy
search made for products available
decision among products is made
MP3 player purchased
purchase is evaluated
2.5 The Buying Decision
 but the buying process only works for
large purchases made occasionally


does not work for impulse purchases
also does not work for product purchases
where brand is not important
 in these last two cases, the retailer may
significantly influence the purchase
 see the Lee Valley item on page 72, read
it now and answer the 2 questions at the
bottom of page 73
2.6 Industrial/Institutional
 the Industrial/Institutional consumer
purchases for a business
 purchase criteria are almost entirely
rational



what is the cost/profit margin?
will the customer buy it?
can it be shipped to me on time?
 tenders may be used in purchases here
and pricing is critical
Chapter 2 Review Questions
 Do Page 78 #1, 2, 4, 5