1 The Consumer Market Determining customer needs

2 What is a consumer? A consumer is an individual or entity that uses goods and services. Most of the time we think of consumers as individuals but consumers can be schools, business, or other entities.

3 Consumer Decision Steps 1.Recognize a need - A buyer must have a need Needs come from: Internal stimuli such as human feelings (hunger) External stimuli such as events, trends, and advertising 2.Search for Information - People seek information about products Sources include - Friends, family, coworkers, advertising, salespeople, displays, internet, examining a product, and trying a product.

4 Consumer Decision Steps 3. Evaluate the Alternatives - Good alternatives make the decision process difficult. Consumers Some gather little information Some spend days gathering information 4.Make the purchase – YOU HAVE REACHED A DECISION!! Cash – Check Credit Card – Debit Card

5 Consumer Decision Steps 5. Experience Post-purchase Reaction – Most forgotten step by marketers Satisfied Customers expectations are met Unsatisfied customers may return products or may discontinue service

6 What are consumer promotions? Consumer promotions are sales strategies that encourage customers to buy a product or service.

7 What makes consumers buy products? Coupons – Certificates that entitle customers to discounts on products or services. Premiums – Low cost or free items given to consumer. CO-OPs give members benefits like this. Deals – Short term price reductions Incentives – High price products earned or given away through contest, sweepstakes, and rebates. Product Samples – A free trial sample

8 What makes consumers buy products? Sponsorship – Paying a fee for the right to promote itself/product/services at a location, event, or on a person Product Placement – Using brand- name product in a movie, television show, sporting event, or even in a commercial for another product Loyalty Marketing Programs – Frequent buyer programs reward customers for patronizing a company. Point of Purchase Displays – Displays designed primarily by manufactures to hold and display their products