Chapter 6 PowerPoint - Garnet Valley School District

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CHAPTER
6
MARKETING STARTS
WITH CUSTOMERS
6-1 Understanding Consumer Behavior
6-2 What Motivates Buyers?
6-3 Influencing Consumer Decisions
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©WYETH
Focus Questions:
 Is the advertising
appealing to children,
parents, or both? In what
ways?
 What is appealing about
the product that would
influence parents to
purchase Dimetapp Cold
& Allergy rather than
another brand of
medication?
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6-1
UNDERSTANDING
CONSUMER BEHAVIOR
GOALS
Describe the importance of
understanding consumer behavior.
Demonstrate an understanding of
consumers’ wants and needs.
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6-1
UNDERSTANDING
CONSUMER BEHAVIOR
Activity
Marketing Matters page 156
 3 Things
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Consumer Behavior
 Consumer Behavior: The study of
consumers and how they make decisions.
 Marketing begins with customers
 Marketers must be responsive to their customers
 Successful businesses are those that continually
consider customers wants and needs
 Understanding customers is not easy
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Consumer Behavior
Why it is important to understand
consumer behavior
 Consumer behavior provides insights into
why consumers buy certain products and
how they use them, which marketers can
use in developing a marketing strategy
There are 2 types of consumers of
interest to marketers
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Consumer Behavior
Final consumers
Business consumers
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Consumer Behavior
Final Consumer- buy products or
services for personal use
 Someone who enters a store, purchases a
product, and uses it
 Ex. Notebook
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Consumer Behavior
 Business Consumer- buys goods and services
to produce and market other goods and services
 Ex- the manufacturer of the notebook
 The manufacturer buys the glue, ink, wire and other materials
to produce the notebook.
 Ex- Businesses also buy products that are used in
daily operations such as paper, pencils, computers
 Even though it consumes the products as part of its
operations, it is still like a business consumer
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Consumer Behavior
Activity
 Come up with 3 products final consumers buy
and 3 product business consumers buy….
 Difference & similarities between the two?
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Consumers’ Wants and Needs
All consumers have wants and needs
 Want- an unfilled desire
 Pizza, BMW, Vacation, Tickets
 Need- anything you require to live
 Nutritious food, a good nights sleep, shelter, air,
water
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Maslow’s Hierarchy of Needs
Abraham Maslow – psychologist
identified five areas of needs people
have.
His work on the motivation theory has
helped marketers immensely in their
study of needs.
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Maslow’s Hierarchy of Needs
Self-Actualization
(to realize your potential)
Esteem
(respect and recognition)
Social
(friends, love, belonging)
Security
(physical safety and economic security)
Physiological
(food, sleep, water, shelter, air)
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Maslow’s Hierarchy of Needs
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6-2
WHAT MOTIVATES
BUYERS?
GOALS
Distinguish the types of buying motives.
Describe the five steps of the consumer
decision-making process.
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Motivation
 Motivation – is the set of positive and negative factors
that direct individual behavior
 All of our actions are influenced by motivation
 People have short and long term motivation
 Short term example- wanting to sleep for a few more hours
 Long term- Getting an ‘A’ for course over the semester
 Buying motives- the reason people buy
 There are 3 categories of buying motives that drive
consumers to purchase products
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Motivation
Emotional motives
Rational motives
Patronage motives
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Motivation
 Emotional Motives - reasons to purchase
based on feelings, beliefs, or attitudes.
 Forces of love, affection, guilt, fear, or passion often
compel consumers to buy
 Emotional Motives can be very strong
 EX- Hallmark – encourages you to buy greeting cards, or for an event such
as Mothers day, an illness, or a birthday
 Fear is also an emotional motivator
 Ex- people buy security systems for their homes or cars
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Motivation
Rational motives - are reasons to buy
based on facts or logic
 Includes factors such as saving time and
money or obtaining the highest quality or
greatest value.
 Ex- expensive things such as a house, car,
or college
Final Customer vs. Business Customer
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Motivation
Patronage Motives - based on loyalty
 Purchase from a particular business or buy a
particular brand
 Loyalty is influenced by positive previous
experiences
 Consumers develop loyalty for many reasons
 Low prices, high quality, friendly staff, or customer
service
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The Consumer
Decision-Making Process
 Buying Behavior- is the decision process and actions of
consumers as they buy services and products
 Marketers know it is advantageous to understand the process
customers go through when selecting goods or services.
 Customers go through five steps when making a purchase
decision
 Consumer Decision Making Process – is the process
by which customers collect and analyze information to
make choices among alternatives
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The Consumer
Decision-Making Process
Postpurchase
Evaluation
Purchase
Alternative
Evaluation
Information
Search
Problem
Recognition
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Assess Satisfaction
The Consumer
Decision-Making Process
Make a Decision
Purchase
Alternative
Evaluation
Information
Search
Problem
Recognition
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Postpurchase
Evaluation
Evaluate Choices
Identify Alternatives
Recognize a Need
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6-3
INFLUENCING
CONSUMER DECISIONS
GOALS
Describe important influences on the
consumer decision-making process.
Explain how consumers and businesses
use each of the three types of decision
making.
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Influences on Buying Decisions
 Knowing what influences a customer’s buying decision
is a key part of implementing the marketing concept
 By understanding what motivates and influences
customer purchases, businesses are able to provide the
products and services at the right place and time
 Many internal and external factors influence purchase
decisions
 Two very important factors are individual
characteristics and the cultural and social
environment
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Influences on Buying Decisions
Individual characteristics
Cultural and social environment
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Influences on Buying Decisions
Individual characteristics
 Personal identity is the characteristics and
character that make a person unique
 Important factors that make up personal
identity are personality, gender, ethnicity,
and age
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Individual Characteristics
 Personality-is an enduring pattern of emotions
and behaviors that define an individual
 The first individual characteristic that influences
buying behavior
 How would you describe your personality?
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Individual Characteristics
 Personalities influence buying decisions
because everyone has individual preferences
based on attitude, self concept, and lifestyle
choices
 Attitude- a frame of mind developed from a personal
values
 Self concept- an individuals beliefs about his or her
identity, image, and capabilities
 Lifestyle- the way a person lives as reflected by
material goods, activities, and relationships
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Individual Characteristics
 Gender – influences many decisions and
actions
 Dress, grooming, social relationships and activities,
family roles, and career choices are different for men
and women
 Marketers identify differences in the product and
service choice of each gender
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Individual Characteristics
 Ethnicity
 A set of characteristics uniting a group based on
ancestry, a country of origin, language, and
traditions is know as ethnicity
 Some individuals have a strong ethnic
identification and demonstrate it in many lifestyle
choices including dress, social activities, and
food choices, among other factors.
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Individual Characteristics
 Age – has a major influence on consumer
behavior.
 The age of a person generally indicate the types
of products and services he/she will be
interested in
 This evidence can easily be seen in television
shows, movies, and magazines
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Influences on Buying Decisions
Cultural and social environment – 2nd
important influence on buying decisions
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Cultural and Social Environment
Culture – is the history, beliefs,
customs, and traditions of a group.
 A group has a strong influence on values
and behaviors
 Traditionally, culture has been defined by
the activities, relationships, and institutions
shared by a group of people over a
generations.
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Cultural and Social Environment
 Some of the strongest influences on
individuals choices and behaviors are drawn
from a person’s reference groups.
 Reference group is a group of people or an
organization that an individual admires,
identifies with, and wants to be part of.
 Clubs, Social groups or civic organizations
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Types of Decision-Making
Routine decision making
Limited decision making
Extensive decision making
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Types of Decision-Making
 Routine decision making - used for
purchases that are made frequently and do
not require much thought
 For routine purchases the consumer is familiar with
the products available, often chooses the same
brand repeatedly, or can make an easy
substitution if the usual choice is not available
 Foods and snacks, personal supplies, and
basic necessities are most often purchased using
routine decision making
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Types of Decision-Making
 Limited decision making
 Takes more time than routine decision making
 Ex. - When you go to the mall and buy a pair of
jeans, you might try on several styles, compare
prices, and feel the fabric of a few selections before
making a final decision
 You will usually identify and complete a reasonable
comparison and evaluate a few alternatives before
making a decision
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Types of Decision-Making
 Extensive decision making
 Occurs when a consumer methodically goes
through all 5 steps of the decision making process
 Normally, it is used with expensive purchases like
a car, home, or vacation
 Consumers spend time and effort evaluating
alternatives and arriving at a decision
 Business use when a purchase has not been
made before or when it involves a large investment
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Marketers’ Response
If the consumer considers alternatives
If the consumer is brand loyal
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