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Introduction: The Impact of
the Digital Revolution on
Consumer Behavior
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Opening
Vignette
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Objectives of One-to-One
Marketing
To attain customers
Sell them more products
Make a profit
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Digital Revolution in the
Marketplace
Allows customization of products, services,
and promotional messages like never before Enhances
relationships with customers
more effectively and efficiently
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Changes in the Business Environment
Increased
consumer power
Access toinformation
More products and
services Interactive and
instant exchanges
Access to
customer patterns
and preferences Evolution to other
-Web connection
PDAsHDTV
Mobile phones
http://www.tivo.com/
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The behavior that consumers display
in searching for, purchasing, using,evaluating, and disposing of
products
and services that they expect will
satisfy their needs.
Consumer Behavior
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Personal ConsumerThe individual who buys goods and
services for his or her own use, for
household use, for the use of a familymember, or for a
friend.
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Organizational Consumer
A business, government agency, or
other institution (profit or nonprofit)
that buys the goods, services, and/or
equipment necessary for the
organization to function.
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Development of the Marketing
ConceptProduction
Concept
Selling Concept
Product Concept
Marketing
Concept
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The Production Concept
Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
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The Product Concept
Assumes that consumers will buy the
product that offers them the highest quality,
the best performance, and the most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia
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The Selling Concept
Assumes that consumers are unlikely to buy
a product unless they are aggressively
persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and
satisfaction
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The Marketing Concept
Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver thedesired
satisfactionsbetter than the
competition
Marketing objectives:Profits through customer satisfaction
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Business Leaders Who Understood
Consumer Behavior
Alfred Sloan, General Motors Colonel Sanders, KFC
Ray Kroc, McDonalds
http://www.gm.com/company/corp_info/historyhttp://www.mcdonalds.com/http://www.kfc.com/
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The Marketing ConceptA consumer-oriented philosophy that
suggests that satisfaction of consumer
needs provides the focus for productdevelopment and marketing
strategy to
enable the firm to meet its own
organizational goals.
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Implementing the Marketing
Concept
Consumer Research
Segmentation
Targeting
Positioning
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Consumer Research
The process and tools used to study
consumer behavior.
Two perspectives:Positivist approach
Interpretivist approach
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Segmentation, Targeting, and
Positioning Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
Targeting: selecting one ore more of the
segments to pursue
Positioning: developing a distinct image forthe product in the
mind of the consumer
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Successful Positioning
Communicating the
benefits of the
product, rather than
its features
Communicating a
Unique Selling
Proposition for the
product
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The Marketing Mix
Product
Price
Place
Promotion
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Successful Relationships
CustomerValue
CustomerSatisfaction
CustomerRetention
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Types of Customers
Loyalists
Apostles Defectors
Terrorists
Hostages Mercenaries
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Customer Profitability-Focused
Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
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Societal Marketing Concept
A revision of the traditional marketing
concept that suggests that marketers adhere
to principles of social responsibility in themarketing of their
goods and services; that
is, they must endeavor to satisfy the needs
and wants of their target markets in waysthat preserve and
enhance the well-being of
consumers and society as a whole.
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The Societal Marketing Concept
All companies prosper when society
prospers.
Companies, as well as individuals, would bebetter off if social
responsibility was an
integral component of every marketing
decision.
Requires all marketers adhere to
principles of social responsibility.
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Firms Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment1. Family2. Informal sources3. Other
noncommercial
sources
4. Social class5. Subculture and culture
Output
Process
Input
ExternalInfluence
Postpurchase Evaluation
Purchase
1. Trial
2. Repeat purchase
Need
Recognition
Prepurchase
Search
Evaluation of
Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Figure 1-1:
A Model of
Consumer
Decision
Making
