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A discipline dealing with how and why consumers purchase (or dont purchase) products and services.(Neal et al.)
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Those behaviours performed by decision making units in the purchase, usage and disposal of goods and services
(Kotler & Levy)
Marketing decisions
It is important to have an understanding of consumer behavior before the development of marketing strategy.
Marketing decisions are based on: Market segmentation Product positioning Marketing mix
Product specific Depends on the nature of the product Person-individual Different customers behave differently due to needs, personalities and values Situation Buying behaviour is dependent on the given situation
Market segmentation New products New market applications Global marketing Marketing mix Consumerism Non-profit marketing
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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
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Customer value is the difference between all the benefits derived from a total product and all the costs of acquiring those benefits. Providing superior customer value requires the organization to do a better job of anticipating and reacting to customer needs than the competition does
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The total product is presented to the target market, which is consistently engaged in processing information and making decisions designed to maintain or enhance its lifestyle or performance.
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Step 5. Outcomes
Society the cumulative effect of the marketing process affects economic growth, pollution, social problems. Firm reaction of the target market to the total product produces an image of the product/brand/organization. Individual the process results in some level of need satisfaction, financial expenditure, attitude development/change, and/or behavioral changes.
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The consumer decision process intervenes between the marketing strategy, as implemented in the marketing mix, and the outcomes. The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase.
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