exercise 2
mely1999
MARChapter1.pptx
Chapter 1: buying, having, and being
Dr. Jennifer Houston MAR4035
Consumer behavior: People in the marketplace
Demographics are the descriptive characteristics of a population, such as age, gender, income, or occupation
We can also look at the social influence of product consumption by analyzing consumption communities, such as social media groups
Marketers can use information on demographic and consumption community preferences to engage in market segmentation strategies
Targeting a brands products, services, and ideas to specific groups of consumers whose lifestyles make them the most likely buyers
The sellers hope to be rewarded with brand loyalty, or a bond between their products and the target market
Consumer behavior concerns the products and services we buy and use, and the ways these fit into our lives
Marketers may find it useful to categorize buyers/consumers in order to understand and compare the buying trends of different groups
What is consumer behavior?
Consumer behavior is an ongoing process
Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs or desires
Consumer
A consumer is a person, organization, or business who identifies a need or desire and makes a purchase
The Exchange
A transaction in which two or more organizations or people give and receive something of value
Seller or Influencer
A seller is a person, organization, or business who has goods and services available for exchange An influencer is someone who recommends certain products to target markets on behalf of a seller
How do we divide customers into groups?
Though demographics are a simple way of categorizing consumers, consumer demographics can have a major impact on product choices
Some of the most important demographic groups include:
Age
Gender
Family structure
Social class and income
Race and ethnicity
Geography
Lifestyles
Our society is evolving from a mass culture where everyone shares similar preferences into a diverse culture
This evolution comes from an increase in the number of options available to consumers
Marketers typically identify heavy users, and use the 80/20 rule: 20% of users (consumers) account for 80% of sales
How do we divide customers into groups?
Once consumer groups have been identified or established, marketers can engage in relationship marketing by interacting with customers and maintaining bonds with these groups
Database marketing is a specific way of tracking consumers’ buying habits and using this information to tailor products to the target market
The collection and analysis of extremely large data sets is called Big Data
The internet provides a large volume of user information at quick velocities that allow sellers to make quick product decisions
User-generated content and Web 2.0
Marketers carefully define customer segments and listen to people in their markets as never before
Many marketers realize that a key to success is building relationships between brands and customers that will last a lifetime
Marketing’s impact on consumers
Popular culture – the music, movies, sports, books, celebrities, and other forms of entertainment the mass market produces and consumes – is both a product of and an inspiration for marketers
Some marketing campaigns utilize spokescharacters (such as the GEICO gecko) that are central characters in our pop culture and are more easily identifiable than real people of importance
Marketer's filter much of what we learn about the world, whether through the affluence they depict in magazines, the roles actors play in commercials, or the products celebrities endorse
Marketing's impact on consumers
Relationships with products and the people, organizations, and businesses that provide them help individuals perform in their roles in their everyday lives
Self-concept attachment – the product helps to establish the user’s identity
Nostalgic attachment – the product serves as a link with a past self
Interdependence – the product is a part of the user’s daily routine
Love – the product elicits emotional bonds of warmth, passion, or other strong emotion
Role theory takes the view that much of consumer behavior resembles actions in a play, and consumers seek the lines, props, and costumes necessary to act in their roles
What does it mean to consume?
People often buy products not for what they do, but for what they mean
This meaning is carefully crafted by brand images that people can connect and identify with
What does it mean to consume?
A need is something a person must have to live or achieve a goal
A want is a specific manifestation of a need that personal and cultural factors determine
The choices a person makes in selecting a good or service to satisfy a want or need differs from person to person (a topic for later in the course)
A happy consumer is going to have their needs and wants satisfied
What is the difference between needing something and wanting it?
The global “always-on” consumer
A significant tool for the “always-on” consumer and the aspiring seller is the variety of social media platforms that are a part of many people's daily lives
Lifelogs, autonomous vehicles, M2M (machine-to-machine communication), artificial intelligence, robot companions, and even sexbots are dramatically changing many industries to become more tech-focused and reliant
Consumers have instant access to things that previous generations couldn’t even dream of
Research shows that by 2030, three out of five humans will live in megacities with populations of over 10 million and with access to countless options to satisfy wants and needs
Consumer behavior as a field of study
Consumer researchers work everywhere consumers are!
Manufacturers, retailers, marketing research firms, governments, non-profit organizations (NPOs)
Consumer researchers work with every type of product or service you can think of
Consumer behavior is interdisciplinary, extending beyond the fields of marketing & business and into areas like psychology, cognition, literature, and sociology
Consumer researchers look at our world as a paradigm
Positivism vs. interpretivism/modernism vs. postmodernism
The field of consumer behavior encompasses many things, from simple purchases to complex buying decisions
Consumer trends: keep ahead to keep up
Important trends that may impact marketing strategies soon consist of:
Moving toward a sharing economy
A consumer focus on authenticity and personalization
Blurring of gender roles
Diversity and multiculturalism
Social shopping
Income inequality
Healthy and ethical living
Simplification of our lives
Interconnection and the Internet of Things
A need for anonymity of our data and online choices
Consumer trends are underlying values that drive consumers toward certain products and services and away from others
Experiential purchases provide greater happiness and satisfaction because they allow us to connect with others
