To stay in business by a-rac0ng and retaining customers To benefit from understanding consumer problems To establish compe00ve advantage because it

Transcription

1 By Miss Timy Tan

2 To stay in business by a-rac0ng and retaining customers To benefit from understanding consumer problems To establish compe00ve advantage because it is interes0ng!

3 Because no longer can we take the customer/ consumer for granted Out of new products introduced by 77 companies, only 56% are present 5 years later. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives.

4 Provide value and customer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services. Create a competitive advantage Understand how customers view their products versus their competitors products. Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive affect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.) Product decisions also shape life for the consumer. How can simple decisions be so important? Why do marketers spend millions of dollars to uncover the reasons behind these decisions?

5 Individuals or groups acquiring, using and disposing of products, services, ideas, or experiences Includes search for informa0on and actual purchase Includes an understanding of consumer thoughts, feelings, and ac0ons

6 NO! cross - cultural styles, habits, tastes, prevents such standardisation.

7 Please leave your values at the desk - Paris hotel Drop your trousers here for best results - Bangkok laundry The manager has personally passed all water served here Acapulco restaurant Ladies are requested not to have children in the bar. - Norway bar Pepsi brings your ancestors back from the grave China Come alive out of the grave - Germany

8 Consumer Behavior Analysis In order to analyze consumers, marketers need answers to the following questions: 1. Who Buys? v What is their demographic, geographic, psychographic or behavioral orientation? 2. What is Bought? v Is it a core product, augmented product, service, etc. 3. Why is the Purchase Made? v Influences on purchasing family, culture, friends, marketers, age, social status, etc.

9 Consumer Behavior Analysis In order to analyze consumers, marketers need answers to the following questions: 4. How Often is the Purchase Made? v Frequency of purchase, number of purchases, etc. 5. Where is the Purchase Made? v Location, convenience, online, offline, etc. 6. When is the Purchase Made? v Time, season, occasion, etc. 7. How is the Purchase Made? v Decision making process

10 Motives Attitudes Business Needs Perception Consumer Purchase Decision Personality Learning Family Economic

11 Culture Social Personal Psychological Buyer

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13 Culture is the most basic determinant of a person s wants and behavior Culture includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society. Subculture Groups of people with shared value systems based on common life experiences. North Indian Consumers African American Consumers Asian American Consumers Mature Consumers Social Class People within a social class tend to exhibit similar buying behavior. Occupation Income Education Wealth

14 Groups Membership Reference Family Husband, wife, kids Influencer, buyer, user Social Factors Roles and Status

15 Persons within a given social class tend to behave alike Social class is hierarchical Social class is not measured by single variable Social class is continuous

16 Six classes: upper- upper, lower- upper, upper- middle, lower- middle, working class, lower class. Two- category social class Blue and white collar. Nine category- - lower- lower, lower- middle, lower- upper middle- lower, middle- middle, middle- upper, upper lower, upper- middle, upper- upper class.

17 Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests

18 Motivation Beliefs and Attitudes Psychological Factors Perception Learning

19 BECAUSE OF THOUGHT Pratical Rational Factual WITHOUT THOUGHT Impractical Irrational Emotional TO BE POPULAR Conspicuous Consumption Snob Effect Bandwagon Effect TO SATISFY Economic Psychological Sociological Need- (for a reason) Wants- (desire)

20 TO SAVE Time, Money, Energy, Space TO IMPROVE Customer relations Employee relations Image, Status Earning / income Performance TO REDUCE Risk / Investment Expenses Competition Worry Trouble TO PROTECT Investment Self / Family Employees Property Money TO INCREASE Sales / Profit Satisfaction Confidence Convenience Pleasure production TO MAKE Money Satisfied customers Good Impressions

21 Self! Actualization! (Self-development)! Esteem Needs! (self-esteem, status)! Social Needs! (sense of belonging, love)!! Safety Needs! (security, protection)! Physiological Needs! (hunger, thirst)!

22 ACTIVITY A LEADING INDIAN TV COMPANY IN THE COUNTRY IS FINDING IT VERY DIFFICULT TO MAINTAIN THEIR MARKET SHARE. ITS SALES ARE GOING DOWN. THEY HAVE HIRED YOU TO SOLVE THE PROBLEM. MAKE TWO PRESENTATIONS IN NEXT 10 MINUTES WITH TWO DIFFERENT PERSPECTIVES TO SOLVE THE PROBLEM.