The Consumer Market Determining customer needs 1 What

The Consumer Market Determining customer needs 1

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. 2

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. 3

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 4

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 5

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

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 7

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 brandname 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 8