INTRODUCTION TO

CONSUMER BEHAVIOUR
DEFINITION

Consumer behaviour is the study of individuals,

groups, or organizations and all the activities
associated with the purchase, use and disposal of
goods and services, including the consumer's
emotional, mental and behavioural responses that
precede or follow these activities.
THE INFORMATION BASE FOR UNDERSTANDING
CONSUMER BEHAVIOUR
SECONDARY DATA
• CENSUS DATA (BIRTH RATE, AGE GROUPS)
• SYNDICATED SERVICES
• DATA BASE MARKETING
PRIMARY DATA
QUALITATIVE RESEARCH
(FOCUS GROUP INTERVIEWS)
(PROJECTIVE TECHNIQUES – MATERIALS WHICH INDUCE
SUBCONSCIOUS FEELINGS AND ATTITUDES)
SURVEY RESEARCH
EXPERIMENTAL RESEARCH (CAUSE AND EFFECT)
OBSERVATIONAL RESEARCH
 OBJECTIVE OF THE PRESENTATION
 THE PSYCHOLOGY OF HOW CONSUMERS THINK,
FEEL, REASON, AND SELECT BETWEEN DIFFERENT
ALTERNATIVES
 THE PSYCHOLOGY OF HOW THE CONSUMER IS
INFLUENCED BY HIS OR HER ENVIRONMENT (E.G.,
CULTURE, FAMILY, MEDIA)
 CONSUMERS INFORMATION PROCESSING ABILITIES
INFLUENCE ON DECISIONS TAKING AND THE
MARKETING OUTCOME
 PURCHASING BEHAVIOUR

PURCHASING BEHAVIOUR IS INFLUENCED BY A BROAD RANGE

OF FACTORS

o DEMOGRAPHIC FACTORS INCLUDE INCOME LEVEL,

LIFESTYLES, AGE, GENDER, OCCUPATION AND SOCIO-
ECONOMIC STATUS.
o PERSONALITY FACTORS INCLUDES KNOWLEDGE, THOUGHTS,
BEHAVIOUR , EMOTIONS AND FEELINGS.
o PSYCHOLOGICAL FACTORS INCLUDES SUCH AS INDIVIDUAL'S
MOTIVATION, ATTITUDES, PERSONAL VALUES AND
PERCETIONS
o SOCIAL IDENTITY FACTORS INCLUDE CULTURE, SUB-CULTURE
AND REFERENCE GROUPS.
o OTHER FACTORS THAT MAY AFFECT THE PURCHASE DECISION
INCLUDE THE ENVIRONMENT AND THE CONSUMER'S PRIOR
EXPERIENCE WITH THE BRAND.
 IMPORTANCE OF CONSUMER
BEHAVIOUR TO MARKETEERS
HELPS MAKING BETTER MARKETING CAMPAIGNS AND
MARKETING STRATEGIES.

EX- CONSUMERS ARE MORE RECEPTIVE TO FOOD

ADVERTISING WHEN THEY ARE HUNGRY.

• TO UNDERSTAND BUYING BEHAVIOUR OF CONSUMERS

• TO CREATE AND RETAIN CUSTOMERS
• ADVERTISING (CLASSICAL CONDITIONING)
• TO UNDERSTAND THE FACTORS INFLUENCING CONSUMERS
BUYING BEHAVIOUR (PRODUCT POSITIONING, IN STORE
STIMULI, PRODUCT TRIAL )
• TO PROVIDE TRAINING TO SALES EXECUTIVE TO
INFLUENCE CONSUMER TO BUY PRODUCT
 INFLUENCERS ON BUYING
DECISION
INDIVIDUALS HAVE BOTH A PERSONAL IDENTITY AND A SOCIAL
IDENTITY.

PERSONAL IDENTITY CONSISTS OF UNIQUE PERSONAL

CHARACTERISTICS SUCH AS ATTITUDE, KNOWLEDGE, OPINIONS,
ABILITIES, INTERESTS, ACTIVITIES AND HOBBIES.

SOCIAL IDENTITY CONSISTS OF THE INDIVIDUAL'S PERCEPTION OF

THE CENTRAL GROUPS TO WHICH AN INDIVIDUAL BELONGS - AGE
GROUP, A LIFESTYLE GROUP, RELIGIOUS GROUP, EDUCATIONAL
GROUP.

FACTORS EXERTING SOCIAL GROUPS INFLUENCE – (THE FACE TO

FACE GROUPS)
 PERSONS ATTITUDE TOWARDS THE GROUP
 NATURE OF THE GROUP
 NATURE OF THE PRODUCT.
MEMBERSHIP GROUPS –
PRIMARY FORMAL GROUP, SECONDARY INFORMAL GROUPS

• THE INITIATOR
THE PERSON WHO PROPOSES A BRAND (OR PRODUCT)
FOR CONSIDERATION (SOMETHING IN RETURN)
• THE INFLUENCER
SOMEONE WHO RECOMMENDS A GIVEN BRAND
• THE DECIDER
THE PERSON WHO MAKES THE ULTIMATE PURCHASE
DECISION
THE PURCHASER
• THE ONE WHO PHYSICALLY BUYS IT
THE USER
• THE PERSON WHO USES THE PRODUCT.
THE CONSUMER'S PURCHASE
DECISION PROCESS
 THE CONSUMER'S PURCHASE DECISION
PROCESS

PROBLEM RECOGNITION
THE FIRST STAGE OF THE PURCHASE DECISION PROCESS BEGINS WITH
PROBLEM RECOGNITION (NEED AROUSAL)

THIS IS WHEN THE CONSUMER IDENTIFIES A NEED, TYPICALLY

DEFINED AS THE DIFFERENCE BETWEEN THE CONSUMER'S CURRENT
STATE AND THEIR DESIRED OR IDEAL STATE.
EX- NEED FOR A CAR

 EXTENSIVE PROBLEM-SOLVING
MORE EXTENSIVE INFORMATION SEARCH AND EVALUATION OF
ALTERNATIVES. PURCHASES WITH HIGH SOCIAL VISIBILITY
E.G. FASHION, CARS, MOBILE PHONES.

 LIMITED PROBLEM-SOLVING
KNOWN FOR FAMILIAR PURCHASES, REGULAR PURCHASES AND
REEATED PURCHASES
 CONSUMERS BECOME AWARE OF A
PROBLEM IN A VARIETY OF WAYS
 WHEN A CONSUMER RUNS OUT OF STOCK OF A CONSUMABLE ITEM
E.G. RAN OUT OF MILK OR BREAD.
 WHEN A CONSUMER PURCHASES A PRODUCT ON A REGULAR BASIS E.G.
NEWSPAPER, JUICE, MAGAZINE.
 WHEN A CONSUMER IS NOT SATISFIED WITH THE CURRENT PRODUCT
OR SERVICE.
 NEW NEEDS OR WANTS
 LIFESTYLE CHANGES MAY TRIGGER THE IDENTIFICATION OF NEW NEEDS
E.G. THE ARRIVAL OF A BABY MAY PROMPT A CAR-SEAT FOR BABY.
 THE PURCHASE OF ONE PRODUCT MAY TRIGGER THE NEED FOR
ACCESSORIES AND RELATED RODUCTS - SPARE PARTS OR
COMPLEMENTARY GOODS AND SERVICES
 MARKETER-INDUCED PROBLEM RECOGNITION - WHEN MARKETING
ACTIVITY PERSUADES CONSUMERS OF A PROBLEM (USUALLY A
PROBLEM THAT THE CONSUMER DID NOT REALISE THEY HAD).
 WHEN CONSUMERS BECOME AWARE OF NEW, INNOVATIVE PRODUCTS
THAT OFFER A SUPERIOR MEANS OF FULFILLING A NEED.
 INFORMATION SEARCH
DURING THE INFORMATION SEARCH AND
EVALUATION STAGES, THE CONSUMER WORKS
THROUGH PROCESSES DESIGNED TO ARRIVE AT A
NUMBER OF BRANDS THAT REPRESENT VIABLE
PURCHASE ALTERNATIVES.

 STIMULUS EXPOSURE( NOTICE ADVERTISEMENT \

COMMENTS OF FRIENDS)
 PERCETION OF STIMULI (RELIABLE\ BELIEVABLE)
 MEMORY

 MAJOR INF. SEARCH FACTORS ARE RISK,

EXPERIENCE, GOALS, TIME, PRICE
EVALUATION OF ALTERNATIVES

FUNCTIONAL BENEFITS ARE THE TANGIBLE

OUTCOMES THAT CAN BE EXPERIENCED BY THE
CONSUMER SUCH AS TASTE OR PHYSICAL
APPEARANCE.
PSYCHO-SOCIAL BENEFITS ARE THE MORE
ABSTRACT OUTCOMES OR THE PERSONALITY-
RELATED ATTRIBUTES OF A BRAND, SUCH AS THE
SOCIAL CURRENCY THAT MIGHT ACCRUE FROM
WEARING AN EXPENSIVE SUIT, DESIGNER LABEL
OR DRIVING A 'HOT' CAR.
BRAND EVALUATION
(DESIRED BENEFITS AND BRAND
CHARACTERISTICS) (PLEASERABLE FEELING)
 PURCHASE DECISION
ONCE THE ALTERNATIVES HAVE BEEN
EVALUATED, THE CONSUMER FIRMS UP THEIR
RESOLVE TO PROCEED THROUGH TO THE ACTUAL
PURCHASE.
FOR EXAMPLE, THE CONSUMER MIGHT SAY TO
HERSELF, "YES, I WILL BUY BRAND X.“
THIS SELF INSTRUCTION TO MAKE A PURCHASE IS
KNOWN AS PURCHASE INTENT. PURCHASE
INTENTIONS ARE A STRONG, YET IMPERFECT
PREDICTOR OF SALES.
 PURCHASE \ NO PURCHASE

 DECISION TO BUY THE PRODUCT DELIVERING

HIGHEST LEVEL OF EXPECTED SATISFACTION
 POST-PURCHASE EVALUATION
FOLLOWING PURCHASE AND AFTER EXPERIENCING
THE PRODUCT OR SERVICE, THE CONSUMER
ENTERS THE FINAL STAGE, NAMELY POST-
PURCHASE EVALUATION.
THE CONSUMER'S PURCHASE AND POST-PURCHASE
ACTIVITIES HAVE THE POTENTIAL TO PROVIDE
IMPORTANT FEEDBACK TO MARKETERS.

PURCHASE VERSUS CONSUMING

SATISFACTION VERSUS DISSATISFACTION
POST PURCHASE DISSONANCE
Motivations and emotions
Maslow's five needs -
Physiological
basic levels of needs such as food, water and sleep

Safety
the need for physical safety, shelter and security

Belonging
the need for love, friendship and also a desire for group acceptance

Esteem
The need for status, recognition and self-respect

Self-actualization
The desire for self-fulfillment (e.g. personal growth, artistic expression)
 ROSSITER AND PERCY'S
PURCHASE EMOTIONS
Motivation Emotional Sequence

NEGATIVE

Problem removal Annoyance → Relief

Problem avoidance Fear → Relaxation

Mixed approach avoidance Conflict → Peace-of-mind

POSITIVE

Intellectual simulation Bored (or neutral) → Excited

Social approval/ conformity Apprehensive (or ashamed) → Flattered/

proud
 APPROACHES TO STUDY
CONSUMER BEHAVIOUR
 A MANAGERIAL APPROACH
CONSUMER BEHAVIOUR CAN BE OVERLOOKED BY
BOTH A MANAGERS PERSECTIVE AND CONSUMERS
PERSECTIVE.

 A HOLISTIC APPOACH (MACRO)

 A BALANCED VIEW WAY RECOGNIZES THAT

MARKETING STRATEGIES MUST BE BASED ON
CONSUMER NEEDS AND THAT IT IS MANAGERS
RESONSIBILITY TO SATISFY THOSE NEEDS AT A PROFIT
TO THE FIRM.
 PERCEPTION
• THE PERCEPTION PROCESS IS WHERE INDIVIDUALS RECEIVE,
ORGANIZE AND INTERPRET INFORMATION IN ORDER TO ATTRIBUTE
SOME MEANING.
• PERCEPTION INVOLVES THREE DISTINCT PROCESSES: SENSING
INFORMATION, SELECTING INFORMATION AND INTERPRETING
INFORMATION.
• SENSATION IS ALSO PART OF THE PERCEPTION PROCESS CREATING
SOME REACTION TOWARDS THE BRAND NAME, ADVERTISING AND
PACKAGING.
• THE PERCEPTION IS UNIQUELY INDIVIDUAL AND MAY DEPEND ON
INTERNAL AND EXTERNAL FACTORS SUCH AS EXPERIENCES,
ATTITUDE, EXPECTATIONS, NEEDS.
• EX- TWO CONSUMERS MAY PERCIEVE IDENTICAL ADV. PACKAGE,
PRODUCT VERY DIFFERENTLY.
PERCEPTUAL VIGILANCE – MOST RELEVENT TO THEIR NEEDS
PERCEPTUAL DEFENCE – CIGGERATE SMOKER AVOID ANTI SMOKING
ADV.
 EXPERIENCE
PRIOR EXPERIENCE - (CAR BRAND\ PAST
EXPERIENCE) POSITIVE\NEGETIVE

THE CONSUMER'S PRIOR EXPERIENCE WITH

THE CATEGORY, PRODUCT OR BRAND CAN
HAVE A MAJOR BEARING ON PURCHASE
DECISION-MAKING.
 CULTURE
CULTURE REFERS TO THE COMPLEXITY OF VALUES,
NORMS, CUSTOMS AND BELIEFS ESTABLISHED BY THE
SOCIETY.
(CULTUREL VALUES ARE LEARNED, GUIDED TO BEHAVIOUR
AND ARE PERMANENT,)

MC-DONALDS CAMPAIGN OVER YEARS INFLUENCING

CULTURE

1970- YOU DESERVE A BREAK TODAY

1980- MC- DONALDS AND YOU
1990- WE
2000- IT’S A GOOD TIME FOR THE GREAT TASTE OF MC-
DONALDS
(AS THE RESULT PEOPLE SAW THE COMPANY AS FRIENDLY
AND NURTURING.)
 SUBCULTURES
 SUBCULTURES MAY BE BASED ON AGE, GEOGRAPHIC,
RELIGIOUS, RACIAL, AND ETHNIC DIFFERENCES.
 MORE OFTEN, HOWEVER, A SUBCULTURE OCCURS WHEN
PEOPLE WITH SHARED INTERESTS FORM A GROUP WITH A
DISTINCTIVE IDENTITY (CONSUMER TRIBES).
 MEMBERS OF SUBCULTURES ARE SELF-SELECTED, AND SIGNAL
THEIR MEMBERSHIP STATUS BY ADOPTING BEHAVIOURS (E.G.
A DRESS CODE, HAIRSTYLE OR EVEN A UNIQUE WAY OF
SPEAKING).
 FOR EXAMPLE, WITHIN A GROUP THERE ARE NUMBER OF
SUB-GROUPS WITH COMMON INTERESTS – TASTE FOR MUSIC,
POLITICS, SPORTS, FASHION, TECHNOLOGY.
 LEVI’S PRINCIPLE – THINK GLOBALLY, BUT ACT LOCALLY
 SOCIAL CLASS
• Social class refers to relatively homogenous
divisions in a society, typically based on socio-
economic variables such as educational
attainment, income and occupation.
• Ranking of person – upper, middle,lower class
based on power status and prestige
• Social stratification (ranking resulting to resect
and prestige)
• Status symbols (possessions)
• Social mobility (movement)
 REFERENCE GROUPS
 A REFERENCE GROUP IS DEFINED AS "A GROUP WHOSE PRESUMED
PERSPECTIVES OR VALUES ARE BEING USED BY AN INDIVIDUAL AS THE
BASIS FOR HIS OR HER JUDGMENT, OPINIONS, AND ACTIONS."
 PRIMARY GROUPS: GROUPS, SUCH AS FAMILY, THAT EXERT A STRONG
INFLUENCE ON ATTITUDES AND BEHAVIOURS
 SECONDARY GROUPS: GROUPS SUCH AS CLUBS, SOCIETIES, SPORTS
TEAMS, POLITICAL PARTIES, RELIGIONS THAT ALIGN WITH A PERSON'S
IDEAS OR VALUES, BUT EXERT A LESS FUNDAMENTAL INFLUENCE ON THE
FORMATION OF ATTITUDES AND BEHAVIOURS
 ASPIRATIONAL GROUPS: GROUPS TO WHICH AN INDIVIDUAL DOES NOT
CURRENTLY BELONG, BUT POSSIBLY ASPIRES TO BECOME A MEMBER
BECAUSE THE GROUP POSSESSES CHARACTERISTICS WHICH ARE
ADMIRED.
OPINION LEADERS CAN ACT LIKE REFERENCE GROUPS IN THAT THEY
EXERT CONSIDERABLE SOCIAL INFLUENCE BECAUSE OF THEIR PRODUCT
KNOWLEDGE, EXPERTISE AND CREDIBILITY.
 FAMILY
AND LIFESTYLE
 THE FAMILY HAS A GREAT IMPACT ON THE
INDIVIDUAL BECAUSE HE LEARN FROM HIS
YOUNG AGE HOW TO ACT AS A CONSCIOUS
CONSUMER BY ACQUIRING THE SKILLS, VALUES
AND TRENDS OF HIS FAMILY ENVIRONMENT

 LIFESTYLE VARIABLES ARE DEFINED BY HOW

PEOLE SPEND THEIR TIME (ACTIVITIES, OPINIONS,
INTERESTS)
 PERSONAILTY
INDIVIDUALS PERSONALITY RERESENTS ANOTHER
SET OF CHARACTERISTICS THAT CONTRIBUTES TO
AN UNDERSTANDING OF CONSUMER BEHAVIOUR.

(SELF CONCEPT THEORIES - ACTUAL AND IDEAL SELF)

ACTUAL SELF - SELF IMAGE THAT INDIVIDUAL HAVE
BASED ON WHAT THEY THINK THEY ARE
(ROLES \ IDENTITIES INDIVIDUAL PLAY)
IDEAL SELF - A CONCEPT OF WHO THEY THINK THEY
WOULD LIKE TO BE
 THE GREATER THE DIFFERENCE BETWEEN ACTUAL
SELF AND IDEAL SELF LOWER THE SELF ESTEEM
 LOYALTY
BRAND LOYALTY REPRESENTS FAVOURABLE
ATTITUDE TOWARDS BRAND RESULTING
CONSISTENT PURCHASE
1. REVERSION
2. CONVERSION
3.VACILLATION
4.EXERIMENTATION
LOYALTY REDUCES RISK, BRAND LOYALS ARE
CONFIDENT
BRAND LOYALTY\STORE LOYALTY (SAVE TIME
AND EFFORT)
 SITUATIONAL DETERMINANTS

Situation determinants play an important role in

influencing the behavior of the consumer and are
factors independent of the individual and its
characteristics
Temporary conditions occuring in secific time and
place
 Consumption situation (lunch \ snacks)
 purchase situation (gift)
 Stimuli – physical, verbal, non verbal
communication that can influence consumer.
(color, taste, smell, sound, feel)
 CONSUMER DECISION STYLES
 Quality conscious/Perfectionist: Quality-consciousness is characterised by
a consumer’s search for the very best quality in products.
 Brand-conscious: Brand-consciousness is characterised by a tendency to
buy expensive, well-known brands or designer labels. Those who score
high on brand-consciousness tend to believe that the higher prices are an
indicator of
 Recreation-conscious:Recreational shopping is characterised by the
consumer’s engagement in the purchase process. THEY regard shopping
itself as a form of enjoyment.
 Price-conscious: A consumer who exhibits price-and-value consciousness.
Price-conscious shoppers carefully shop around seeking lower prices, sales
or discounts and are motivated by obtaining the best value for money
 Novelty/fashion-conscious: characterised by a consumer’s tendency to
seek out new products or new experiences for the sake of excitement
 Impulsive: Impulsive consumers are somewhat careless in making
purchase decisions
 Confused (by over-choice): characterised by a consumer’s confusion
caused by too many product choices
 Habitual / brand loyal: consumers have favourite brands or stores and
have formed habits in choosing, the purchase decision does not involve
much evaluation or shopping around
 DIFFERENT TYPES OF ONLINE
BEHAVIOUR
 "Directed Information-seekers"
belongs to the kind of users that primarily look for information of
the product or service and there is no guarantee that they could
be converted to online buyers.
 "Undirected Information-seekers“ are always the new comers of
the Internet. They are more likely to click through the web pages
and have more willing to interact with the online advertisement
designed by online marketers.
 "Directed Buyers" have a straightforward mind to purchase a
specific product or service online.
 "Bargain Hunters" are the price-sensitive users that always like to
find products from sales promotions. For these users, discount
could be a major attraction to convert them to purchase online.
 "Entertainment Seekers" are the online consumers that basically
seek anything involved with fun activities.
 RISK PERCEPTION \ TYPES OF
RISK
The consumer's perceptions of risk are
a major consideration in the pre-purchase stage of the
purchasing decision. Perceived risk is defined as "the
consumer's perceptions of the uncertainty and adverse
consequences of engaging in an activity".
• Financial Risk: the potential financial loss in the event of a
poor decision ( FOUR YEARS SAVING FOR CAR Purchase)
• Performance Risk (also known as functional risk): The idea
that a product or service will not perform as intended.
• Physical Risk: the potential for physical harm if something
goes wrong with a purchase ( car crash )
• Social Risk: the potential for loss of social status associated
with a purchase (may not meet social standard)
• Psychological Risk: the potential for a purchase to result in
a loss of self-esteem ( error- cheaper after a week)
 Typical risk-reduction strategies
used include
• ADVERTISING AND PROMOTIONAL MESSAGES: PAY CLOSER ATTENTION TO PRODUCT OR
BRAND RELATED PROMOTION INCLUDING ADVERTISING MESSAGES
• SHOPPING AROUND: COMPARING OFFERS AND PRICES, INSPECTING THE MERCHANDISE
• BUY KNOWN BRAND: USING A KNOWN, REPUTABLE BRAND AS AN INDICATOR OF QUALITY
MERCHANDISE
• BUY FROM REPUTABLE STORE: RELYING ON A REPUTABLE RETAIL OUTLET AS AN INDICATOR
OF QUALITY
• PRODUCT REVIEWS: READING INDEPENDENT REVIEWS IN MAIN MEDIA (E.G. NEWSPAPERS,
MAGAZINES)
• ONLINE PRODUCT REVIEWS OR CONSUMER-GENERATED TESTIMONIALS: READING ABOUT
THE EXPERIENCES OF OTHER CONSUMERS (E.G. AMAZON CUSTOMER REVIEWS)
• SAMPLING OR LIMITED-SCALE TRIAL: FREE TRIAL OR A 'TEST-DRIVE' PRIOR TO PURCHASE
• MANUFACTURER SPECIFICATIONS: READING INFORMATION PROVIDED BY MANUFACTURERS
E.G. BROCHURES OR SPECS
• REFERRALS: OBTAINING REFERRALS FROM FRIENDS OR RELATIVES
• SALES REPRESENTATIVES: TALKING TO SALES REPS IN RETAIL OUTLETS
• PRODUCT GUARANTEES: LOOKING FOR GUARANTEES OR WARRANTIES
 THE MARKETING CONCEPT AND THE
DISCIPLINE OF CONSUMER BEHAVIOUR:

1) THE PRODUCTION CONCEPT:

 The production concept assumes that consumers are
mostly interested in product availability at low prices; its
implicit marketing objectives are cheap, efficient product
and intensive distribution.

 It makes sense when consumer are more interested in

buying what’s available rather than wait for what they
really want.

 The main objective is to expand the market.

 2) THE PRODUCT CONCEPT

• The product concept assumes that consumers will buy the

product that offers them the highest quality, the best
performance, and the most features.
• It ensures the company to improve the quality of its
product and add new features.

• The product concept often leads to “marketing myopia”

that is focusing on the product rather than the customer
needs
 3) THE SELLING CONCEPT
• The assumption of the selling concept is that consumers
are unlikely to buy the product unless they are aggressively
persuaded to do so – mostly through “hard sell” approach.

• The problem in this concept is that it fails to satisfy a

customer.

• Promotion can be done through advertisement, sales

promotion and public relation.

• Today the selling concept is utilize be marketers of

unsought products – that is which people are not willing to
buy it (such as life insurance).
 4) THE MARKETING CONCEPT

• IT STARTED IN 1950’S WHEN SOME MARKETERS

REALIZED WE CAN SELL MORE PRODUCTS BY
DETERMINING WHAT CONSUMER WOULD BUY.
• CONSUMER NEED AND WANTS BECAME THE
FIRM’S PRIMARY FOCUS.
• THE MARKETERS SHOULD MAKE PRODUCT WHAT
CAN BE SOLD , INSTEAD OF WHAT IT HAS MADE.
EX- DIFFERENT MARKETERS PRODUCING SIMILAR
LINE OF PRODUCT (COCA-COLA)
 5) THE SOCIETAL MARKETING CONCEPT:

• Developing that product which benefits the

society. Doing marketing in such a way that it
helps you in increasing your production & also
giving benefits to society.
• The organization should determine the needs,
wants and interest of target markets and deliver
the desired satisfaction more effectively and
efficiently then do competitors in a way that
maintains or improves the customers and
society’s well being.
 IMPLEMENTING THE MARKETING
CONCEPTS
• TO IDENTIFY UNSATISFIED CONSUMER NEED,
COMPANIES HAVE TO ENGAGE IN EXTENSIVE
MARKETING RESEARCH. THE MARKETING
CONCEPT HIGHLIGHTS THE IMPORTANCE OF
CONSUMER RESEARCH.

• THE STRATEGIC TOOLS THAT ARE USED TO

IMPLEMENT THE MARKETING CONCEPT INCLUDE
-
SEGMENTATION, TARGETING, POSITIONING AND
THE MARKETING MIX.
 MARKET SEGMENTATION
 DIVIDING A MARKET INTO DISTINCT GROUPS OF
BUYERS WITH DIFFERENT NEEDS,
CHARACTERISTICS OR BEHAVIOR WHO MIGHT
REQUIRE SEPARATE PRODUCTS OR MARKETING
MIXES.
 MARKET CONSISTS OF BUYERS AND, BUYERS
DIFFER IN ONE OR MORE WAYS. THEY MAY
DIFFER IN THEIR WANTS, RESOURCES,
LOCATIONS, BUYING ATTITUDES, AND BUYING
PRACTICES.
 OFTEN DEENDS ON CONSUMER USE SITUATION
 EX- ( SNICKERS) NUTRITIONAL\ WEIGHT WATCH\
PARTY
 MARKET POSITIONING
Formulating competitive positioning for a product
and a detailed marketing mix. Developing a
distinct image for the product or service in the
mind of the consumer, that will differentiate with
the competitors.
MARKET POSITIONING
1. Special meal occasions
2. Family meals
3. Regular day to day meal (burgers\ sandwiches)
4. Snacks and quick meals
 MARKET TARGETING
The process of evaluating each market
segments attractiveness and selecting one or
more segments to enter.
 MARKETING MIX
THE MARKETING MIX CONSISTS OF A COMPANY’S SERVICE AND/OR
PRODUCT OFFERINGS TO CONSUMERS AND THE METHODS AND TOOLS IT
SELECTS TO ACCOMPLISH THE EXCHANGE. THE MARKETING MIX CONSISTS
OF FOUR ELEMENTS

• 1) THE PRODUCT OR SERVICE THAT IS THE FEATURES, DESIGNS, BRANDS,

AND PACKAGING OFFERED, ALONG WITH POST PURCHASE BENEFITS
SUCH AS WARRANTIES AND RETURN POLICIES.

• 2) THE PRICE – THE LIST PRICE, INCLUDING DISCOUNTS, ALLOWANCES,

AND PAYMENT METHODS. (PRICE EXPECTATION\ PRICE PERCEPTION)
(PRICE QUALITY RELATIONSHIP)

• 3) THE PLACE – THE DISTRIBUTION OF THE PRODUCT OR SERVICE

THROUGH SPECIFIC STORE AND NON STORE OUTLETS.

• 4) PROMOTION – THE ADVERTISING, SALES PROMOTION, PUBLIC

RELATIONS, AD SALES EFFORTS DESIGNED TO BUILD AWARENESS OF AND
DEMAND FOR THE PRODUCT OR SERVICE.
CURRENT TRENDS IN CONSUMER BEHAVIOUR -
CUSTOMER VALUE, SATISFACTION, AND
RETENTION

CUSTOMER VALUE:
CUSTOMER VALUE IS DEFINED AS THE RATIO BETWEEN
THE CUSTOMERS’S PERCEIVED BENEFITS (ECONOMIC,
FUNCTIONAL AND PSYCHOLOGICAL) AND THE
RESOURCES (MONETARY, TIME, EFFORT,
PSYCHOLOGICAL) USED TO OBTAIN THOSE BENEFITS.
EXAMPLE: MCDONALD’S CORPORATION TO DELIVER
THE COMPANY’S FOUR CORE STANDARDS; QUALITY,
SERVICE, CLEANLINESS, AND VALUE.
(CONSUMER BUYING SHOE AND SOCKS FROM
DIFFERENT BRANDS)
CUSTOMER SATISFACTION:
CUSTOMER SATISFACTION IS THE INDIVIDUAL’S
PERCEPTION OF THE PERFORMANCE OF THE
PRODUCT OR SERVICE IN RELATION TO HIS OR
HER EXPECTATIONS.

LEVELS OF CUSTOMER SATISFACTION WITH THE PRODUCT OR

SERVICE LINKS WITH THE CUSTOMERS FURTHER BEHAVIOUR –

 LOYALISTS A WHO KEEPS PURCHASING, THEY ARE

SATISFIED COMPLETELY.
 APOSTLES A WHOSE EXPERIENCES EXCEED THEIR
EXPECTATIONS AND WHO PROVIDE VERY
POSITIVE WORD OF MOUTH ABOUT THE COMPANY
TO OTHERS.
 DEFECTORS A WHO FEEL NEUTRAL OR MERELY
SATISFIED AND ARE LIKELY TO STOP DOING
BUSINESS WITH THE COMPANY.
CUSTOMER RETENTION:
• Customer retention makes it in the best interest
of customers to stay with the company rather
than switch to another firm.
• Loyal customers buy more products.
• Loyal customers are less prices sensitive and pay
less attention to competitor’s advertising.
• Servicing existing customers, who are familiar
with the firm’s offerings and processes, is
cheaper.
• Loyal customers spread positive word of mouth
and refer other customer.