CONSUMER BEHAVIOR Building Marketing Strategy Eighth Edition HAWKINS  BEST  CONEY Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Consumer Behavior and Marketing Strategy CHAPTER ONE Consumer Behavior and Marketing Strategy Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Marketing Strategy and Consumer Behavior 1-1 Outcomes Individual Firm Society Consumer decision process Problem Recognition Information Search Alternative Evaluation Purchase Use Evaluation Marketing strategy Product, Price, Distribution, Promotion, Service Marketing segmentation Identify product-related need sets Group Customers with similar need sets Describe each group Select attractive segment(s) to target Marketing analysis Company Competitors Conditions Consumers Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Market Segment Attractiveness Worksheet 1-2 Criterion Score* Segment size _______ Segment growth rate _______ Competitor strength _______ Customer satisfaction with existing products _______ Fit with company image _______ Fit with company objectives _______ Fit with company resources _______ Distribution available _______ Investment required _______ Stability/predictability _______ Cost to serve _______ Sustainable advantage available _______ Communications channels available _______ Risk _______ Other (_______________) _______ *Score on a 1 to 10 scale, with 10 being most favorable.

Creating Satisfied Customers 1-3 Our total product Consumer decision process Superior value expected Perceived value delivered Customer satisfaction Sales Competitors’ total product Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Consumer Behavior is Product—Person—Situation Specific 1-4 Personal characteristics Consumer behavior Product characteristics Marketing strategy Consumption situation Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Overall Model of Consumer Behavior 1-5 EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities Experiences and Acquisitions SITUATIONS Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Postpurchase Processes SELF-CONCEPT and LIFESTYLE Needs Desires INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes Experiences and Acquisitions Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.