Understanding Marketing Processes and Consumer Behaviour 12 1

Understanding Marketing Processes and Consumer Behaviour 12 -1

Why? What’s New in the News? 1 -2

Learning Objectives 1. 2. 3. 4. 5. Explain the concept of marketing. Explain the purpose of a marketing plan and identify the four components of the marketing mix. Explain market segmentation and show it is used in target marketing. Explain the purpose and value of market research. Describe the key factors that influence the consumer buying process. 12 -3

The Marketing Planning and executing the pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy both buyers’ and sellers’ objectives. Providing Value and Satisfaction • Value = comparison of benefits versus costs Consumer, industrial and service level What is Marketing? Marketing concept: The idea that the whole firm is directed toward serving present and potential customers at a profit. 12 -4

Relationship Marketing A type of marketing that emphasizes lasting relationships with customers and suppliers Stronger relationships can result in greater long-term customer satisfaction and client retention 12 -5

Marketing Plan A detailed, focused strategy for gearing the marketing mix to meet consumer needs and wants Product Price Place Promotion Marketing Mix 12 -6

Activity: Determine basic design and specs of product/service Strategy: Offering a product/service idea that satisfies the buyers’ needs Product differentiation ◦ Creating a product that has a point of difference and a competitive edge than existing products on the market ◦ may involve changing existing products by responding to trends or adding new products Product Strategy 12 -7

Product Positioning “Stand Out from the Crowd” How you want your product or service (yourself) to be perceived by the customer (potential employer) What is your point of difference (POD) Create an image or identity in mind of the customer Branding Product Strategy 12 -8

Activity: Determine how much a consumer will pay Strategy Choosing the right price to attract consumers, meet the firm’s profit goals and provide value ◦ Price = total value consumers willing to give Consumer’s perception of value and quality ◦ Price must consider all costs operation and administration marketing research advertising Pricing Strategy 12 -9

Activity: Determine where and when the product will be available Strategy: ◦ Product accessibility ◦ Getting the product to the right place at the right time Choice of sales outlets Physical transportation Channels of distribution Place (Distribution Strategy) 12 -10

Activity: Determine the visibility and image of the product Strategy: ◦ Choosing the right method of communicating information about the product ◦ Build consumer awareness, communicate product differentiation, create a need for the product advertising personal selling sales promotions public relations Promotion Strategy 12 -11

Target Market and Segmentation Target market ◦ A group of potential customers who have similar wants and needs Market segmentation ◦ Dividing a consumer market into categories ◦ selecting specific market segment(s) to pursue Positioning ◦ Process of fixing, adapting and communicating the product to specific segments 12 -12

CONSUMER PROFILE ü Search for common traits between consumers üGeographic region üCustomer demographics üMulti-cultural marketing üCustomer psychographics üProduct-use variables Identifying Market Segments 12 -13

A systematic study of consumer needs ◦ Focuses on the marketing mix elements ◦ Leads to more effective marketing ◦ Increases the accuracy and effectiveness of market segmentation Focus Groups - Observation Market Research 12 -14

The study of the process by which customers come to purchase and consume a product or service ◦ Influenced by Psychological factors Personal factors Social factors Cultural factors CB answers the question WHY? Consumer Behaviour 12 -15

The Consumer Buying Process Choosing a College & Selecting a Program 12 -16