3/6/2020

Chapter one

Case 1: “Introducing disposable

baby diapers in Japan by P&G”

Case 3: “TROPICANA’S PACKAGING

REDESIGN”

Case 2: “Introducing Detergent

in Brazil by Unilever”

1
 3/6/2020

Now…. Big Take-away

• Marketing cannot be driven only by the
product, or the competition, or the channel
What goes on in your mind….what can
we infer from those examples?? • Marketing is about understanding the
consumer’s side:

• In other words, it is important to understand

Consumer Behavior!

Consumer Behavior is a blend of certain disciplines

rather than an unique one…It blends

Psychology (study of individual behavior)

Before defining consumer
Sociology (study of social behavior)
behavior….. Socio-psychology (relation between people and
group)

Anthropology (study of human, past and present)

Economics (studies the production, distribution, and

consumption of goods and services)

What is Consumer Behavior? Changing habits and shifting pattern

More Simply CB is a discipline which studies:

• What products people do or do not buy?

• When people do or do not buy products?
• How and how much people do buy products?
• Where people do buy products?
• Why people do or do not buy products?

2
 3/6/2020

Changing habits and shifting pattern Changing habits and shifting pattern

Changing habits and shifting pattern

Changing habits and shifting pattern

Changing habits and shifting pattern

It tries to……….

• Understand how consumers make a purchase

decision
• The influence of family, friends, groups on
consumer while making purchase decision.

3
 3/6/2020

Some Important facts regarding the knowledge of

Commercial firms
Consumer Behavior:

consumers are more receptive to food

advertising when they are hungry, therefore, to
1.Commercial firms, non profit organization and schedule snack advertisements late in the
regulatory agencies require extensive information on afternoon.
Consumer Behavior

Commercial firms Regulatory agency

By understanding that new products are usually initially Accutane, a near miracle cure for acne, was introduced.
adopted by a few consumers and only spread later, and Unfortunately, Accutane resulted in severe birth defects if
taken by pregnant women
then only gradually, to the rest of the population…thus..

The Federal Drug Administration (FDA) took the step of

 companies that introduce new products must be well requiring that very graphic pictures of deformed babies be
financed so that they can stay afloat until their products shown on the medicine containers
become a commercial success and
 it is important to please initial customers, since they will
in turn influence many subsequent customers’ brand
choices.

Regulatory agency 2.CB theory provide the manager with proper question
to ask:
Maggi noodles have been at the center of a controversy since
laboratory tests on two dozen packets in Uttar Pradesh found
• What they think of our products and those of our
lead nearly seven times the permissible limits and excess
competitors?
levels of monosodium glutamate (MSG), a food additive.
• What they think of possible movements in our product?
• How they use our products?
• What attitudes they have about our products and our
advertising?
• What they feel about their roles in the family and
society?

4
 3/6/2020

Some Important facts regarding the knowledge of

Consumer Behavior:

3. Consumer Behavior is a complex multidimensional

process.

4. Marketing practice designed to influence consumer

behavior, influence the firm, individual, society.

Marketing Strategy & Consumer Behavior

Application Platform of CB
• What is Customer Value?

1. Marketing strategy The difference between all the benefits derived from a total
 To satisfy target consumer needs product and all the costs of acquiring those benefits.

2. Regulatory policy • What is required of a firm to provide superior customer

value?
 To protect consumers
It must do a better job of anticipating and reacting to
3. Social marketing customer needs than the competition does.
 To help consumers

4. Informed Individual • What role does consumer behavior play in creating superior
customer value?
 To better understand how
societies function An understanding of consumer behavior is the basis for
marketing strategy formulation, and the consumer’s
reaction to this marketing strategy ultimately determines the
firms success or failure.

Marketing Strategy & Consumer

Market Analysis Components
Behavior

• The Consumers
• The Company
• The Competitors
• The Conditions

5
 3/6/2020

Market Segmentation

• Market Segment: a portion of a larger market

whose needs differ somewhat from the larger
market.

• Four steps to segmentation:

– Identify product-related need sets
– Group customers with similar need sets
– Describe each group
– Select an attractive segment(s) to serve

6
 3/6/2020

Market Segment Attractiveness

Marketing Strategy

• How will we provide superior customer value to

our target market?

• Marketing Mix
– The Product
– Communications
– Price
– Distribution
– Service

Consumer Decision-Making
Process
Need Recognition

Information Search
Cultural, Social,
Individual and
Psychological Evaluation
Factors of Alternatives
affect
all steps Purchase

Postpurchase
Behavior

7
 3/6/2020

Need recognition Nature of need recognition

• Actual state: the way an individual feel at the

present time/at the current situation
• Out of stock
• Dissatisfaction
• Desired state: the way an individual wants to
• New needs and wants be felt/wants to feel at the present time
• Related products
• Marketers induced problems • Inconsistency between actual state and
desired state results in need recognition

Outcomes
Types of problems
• Firm:
• Active problem: consumers are aware/will – Product positioning
aware in course of time
– Sales
• Inactive problem : consumers are not aware
about the problems – Customer Satisfaction
• Marketers task is easy for active problem. • Individual:
Here is to convince customers that our brand – Need Satisfaction
is superior – Injurious Consumption
• In contrast, in inactive problem marketers • Society:
have to convince consumers that they have a
problem and that the marketers brand is – Economic
superior. This is much more difficult task. – Physical Environment
– Social Welfare

Overall Model Of Consumer Behavior

Creating Satisfied Customers