1. 1 The Consumer Market Determining customer needs

2. 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. 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. 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. 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. 6 What are consumer promotions? Consumer promotions are sales strategies that encourage customers to buy a product or service.

7. 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. 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