1. MARKETING STARTS WITH CUSTOMERS
CHAPTER 06
4/27/2017
CHAPTER 6
MARKETING STARTS WITH CUSTOMERS
6-1 Understanding Consumer Behavior
6-2 What Motivates Buyers?
6-3 Influencing Consumer Decisions
Chapter 6
MARKETING

2. Chapter 6 Focus Questions:
Is the advertising appealing to children, parents, or both? In what ways?
What is appealing about the product that would influence parents to purchase Dimetapp Cold & Allergy rather than another brand of medication?
©WYETH
Chapter 6

3. UNDERSTANDING CONSUMER BEHAVIOR
6-1
UNDERSTANDING CONSUMER BEHAVIOR
GOALS
Describe the importance of understanding consumer behavior.
Demonstrate an understanding of consumers’ wants and needs.
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4. UNDERSTANDING CONSUMER BEHAVIOR
6-1
UNDERSTANDING CONSUMER BEHAVIOR
Activity
Marketing Matters page 156
3 Things
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5. Consumer Behavior
Consumer Behavior: The study of consumers and how they make decisions.
Marketing begins with customers
Marketers must be responsive to their customers
Successful businesses are those that continually consider customers wants and needs
Understanding customers is not easy
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6. Consumer Behavior Why it is important to understand consumer behavior
Consumer behavior provides insights into why consumers buy certain products and how they use them, which marketers can use in developing a marketing strategy
There are 2 types of consumers of interest to marketers
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7. Consumer Behavior
Final consumers
Business consumers
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8. Consumer Behavior
Final Consumer- buy products or services for personal use
Someone who enters a store, purchases a product, and uses it
Ex. Notebook
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9. Consumer Behavior
Business Consumer- buys goods and services to produce and market other goods and services
Ex- the manufacturer of the notebook
The manufacturer buys the glue, ink, wire and other materials to produce the notebook.
Ex- Businesses also buy products that are used in daily operations such as paper, pencils, computers
Even though it consumes the products as part of its operations, it is still like a business consumer
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10. Consumer Behavior Activity
Come up with 3 products final consumers buy and 3 product business consumers buy….
Difference & similarities between the two?
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11. Consumers’ Wants and Needs
All consumers have wants and needs
Want- an unfilled desire
Pizza, BMW, Vacation, Tickets
Need- anything you require to live
Nutritious food, a good nights sleep, shelter, air, water
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12. Maslow’s Hierarchy of Needs
Abraham Maslow – psychologist identified five areas of needs people have.
His work on the motivation theory has helped marketers immensely in their study of needs.
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13. Maslow’s Hierarchy of Needs
Self-Actualization
(to realize your potential)
Esteem
(respect and recognition)
Social
(friends, love, belonging)
Security
(physical safety and economic security)
Physiological
(food, sleep, water, shelter, air)
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14. Maslow’s Hierarchy of Needs
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15. 6-2 WHAT MOTIVATES BUYERS? GOALS
Distinguish the types of buying motives.
Describe the five steps of the consumer decision-making process.
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16. Motivation
Motivation – is the set of positive and negative factors that direct individual behavior
All of our actions are influenced by motivation
People have short and long term motivation
Short term example- wanting to sleep for a few more hours
Long term- Getting an ‘A’ for course over the semester
Buying motives- the reason people buy
There are 3 categories of buying motives that drive consumers to purchase products
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17. Motivation Emotional motives Rational motives Patronage motives
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18. Motivation
Emotional Motives - reasons to purchase based on feelings, beliefs, or attitudes.
Forces of love, affection, guilt, fear, or passion often compel consumers to buy
Emotional Motives can be very strong
EX- Hallmark – encourages you to buy greeting cards, or for an event such as Mothers day, an illness, or a birthday
Fear is also an emotional motivator
Ex- people buy security systems for their homes or cars
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19. Motivation
Rational motives - are reasons to buy based on facts or logic
Includes factors such as saving time and money or obtaining the highest quality or greatest value.
Ex- expensive things such as a house, car, or college
Final Customer vs. Business Customer
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20. Motivation Patronage Motives - based on loyalty
Purchase from a particular business or buy a particular brand
Loyalty is influenced by positive previous experiences
Consumers develop loyalty for many reasons
Low prices, high quality, friendly staff, or customer service
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21. The Consumer Decision-Making Process
Buying Behavior- is the decision process and actions of consumers as they buy services and products
Marketers know it is advantageous to understand the process customers go through when selecting goods or services.
Customers go through five steps when making a purchase decision
Consumer Decision Making Process – is the process by which customers collect and analyze information to make choices among alternatives
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22. The Consumer Decision-Making Process
Postpurchase Evaluation
Purchase
Alternative Evaluation
Information Search
Problem Recognition
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23. The Consumer Decision-Making Process
Assess Satisfaction
The Consumer Decision-Making Process
Postpurchase Evaluation
Purchase
Make a Decision
Alternative Evaluation
Evaluate Choices
Information Search
Identify Alternatives
Problem Recognition
Recognize a Need
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24. INFLUENCING CONSUMER DECISIONS
6-3
INFLUENCING CONSUMER DECISIONS
GOALS
Describe important influences on the consumer decision-making process.
Explain how consumers and businesses use each of the three types of decision making.
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25. Influences on Buying Decisions
Knowing what influences a customer’s buying decision is a key part of implementing the marketing concept
By understanding what motivates and influences customer purchases, businesses are able to provide the products and services at the right place and time
Many internal and external factors influence purchase decisions
Two very important factors are individual characteristics and the cultural and social environment
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26. Influences on Buying Decisions
Individual characteristics
Cultural and social environment
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27. Influences on Buying Decisions
Individual characteristics
Personal identity is the characteristics and character that make a person unique
Important factors that make up personal identity are personality, gender, ethnicity, and age
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28. Individual Characteristics
Personality-is an enduring pattern of emotions and behaviors that define an individual
The first individual characteristic that influences buying behavior
How would you describe your personality?
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29. Individual Characteristics
Personalities influence buying decisions because everyone has individual preferences based on attitude, self concept, and lifestyle choices
Attitude- a frame of mind developed from a personal values
Self concept- an individuals beliefs about his or her identity, image, and capabilities
Lifestyle- the way a person lives as reflected by material goods, activities, and relationships
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30. Individual Characteristics
Gender – influences many decisions and actions
Dress, grooming, social relationships and activities, family roles, and career choices are different for men and women
Marketers identify differences in the product and service choice of each gender
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31. Individual Characteristics
Ethnicity
A set of characteristics uniting a group based on ancestry, a country of origin, language, and traditions is know as ethnicity
Some individuals have a strong ethnic identification and demonstrate it in many lifestyle choices including dress, social activities, and food choices, among other factors.
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32. Individual Characteristics
Age – has a major influence on consumer behavior.
The age of a person generally indicate the types of products and services he/she will be interested in
This evidence can easily be seen in television shows, movies, and magazines
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33. Influences on Buying Decisions
Cultural and social environment – 2nd important influence on buying decisions
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34. Cultural and Social Environment
Culture – is the history, beliefs, customs, and traditions of a group.
A group has a strong influence on values and behaviors
Traditionally, culture has been defined by the activities, relationships, and institutions shared by a group of people over a generations.
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35. Cultural and Social Environment
Some of the strongest influences on individuals choices and behaviors are drawn from a person’s reference groups.
Reference group is a group of people or an organization that an individual admires, identifies with, and wants to be part of.
Clubs, Social groups or civic organizations
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36. Types of Decision-Making
Routine decision making
Limited decision making
Extensive decision making
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37. Types of Decision-Making
Routine decision making - used for purchases that are made frequently and do not require much thought
For routine purchases the consumer is familiar with the products available, often chooses the same brand repeatedly, or can make an easy substitution if the usual choice is not available
Foods and snacks, personal supplies, and basic necessities are most often purchased using routine decision making
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38. Types of Decision-Making
Limited decision making
Takes more time than routine decision making
Ex. - When you go to the mall and buy a pair of jeans, you might try on several styles, compare prices, and feel the fabric of a few selections before making a final decision
You will usually identify and complete a reasonable comparison and evaluate a few alternatives before making a decision
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39. Types of Decision-Making
Extensive decision making
Occurs when a consumer methodically goes through all 5 steps of the decision making process
Normally, it is used with expensive purchases like a car, home, or vacation
Consumers spend time and effort evaluating alternatives and arriving at a decision
Business use when a purchase has not been made before or when it involves a large investment
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40. Marketers’ Response If the consumer considers alternatives
If the consumer is brand loyal
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