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Chapter 1 - ICB Consumer Behaviour and Tech

1) The document discusses the evolution of marketing concepts from the production concept to the current marketing concept. It explains key aspects like customer satisfaction, customer value, and customer retention that are central to the marketing concept. 2) Technology is changing how customers behave by influencing what, how, when, and where they purchase. Developments like websites, online purchasing, mobile technology, social media, and digital marketing are altering customer purchase journeys and engagement. 3) The marketing concept now considers societal well-being in addition to business objectives, demonstrating how the concept has adapted to changing times. Technology is a major driver of changes in customer behavior relevant for marketers.

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lingesh war
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35 views

Chapter 1 - ICB Consumer Behaviour and Tech

1) The document discusses the evolution of marketing concepts from the production concept to the current marketing concept. It explains key aspects like customer satisfaction, customer value, and customer retention that are central to the marketing concept. 2) Technology is changing how customers behave by influencing what, how, when, and where they purchase. Developments like websites, online purchasing, mobile technology, social media, and digital marketing are altering customer purchase journeys and engagement. 3) The marketing concept now considers societal well-being in addition to business objectives, demonstrating how the concept has adapted to changing times. Technology is a major driver of changes in customer behavior relevant for marketers.

Uploaded by

lingesh war
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 34

Consumer

Behaviour
and
Technology
Chapter 1

Lecturer: Chandana
Fonseka
What are Marketers Main
Responsibilities?
Customers always purchase what
they believe as 'good' upon
comparison

Therefore, marketers have to offer


something valuable to customers

How can marketers do this?


Let us refer to the marketing
definition
A company which follows the
Marketing Concept is called
MARKETING ORIENTED
COMPANY
Note 1
The definition of Marketing has
been derived from the Marketing
Concept
The Evolution of Marketing Concept
The current Marketing Concept
emerged in 1960's.
Prior to that, many other concepts were
supporting businesses.

Current
Marketing
? ?
Concept
(1960s)
Once upon a time the man
was a self-satisfied

He had limited needs


and was not depending on
others

However, with the civilization,


the situation started changing.
His needs started expanding,
and couldn’t supply for
himself, thus he learned to
depend on others
‘Exchange’

The man started exchanging


things with others so that he
could satisfy his unsatisfied
needs (This is called BARTER
SYSTEM)

• Product <> Product


• Product <> Service
• Service <> Service
Barter System failed due to its
Note 2 practical difficulties
T
R
A
N
S Product /
Money A
With the C Service
T
introduction of I
MONEY O
N
Exchange Buyer /
converted to Seller
Customer
TRANSACTION

Demand Supply
Page 7

Demand & Supply Behaviour

1 - Production Concept:

Focus more on more


production and delivery
Demand

- Large production
Supply
- Heavy distribution
TIME
Demand & Supply Behaviour Page 8

1 - Production
Concept:
Focus more
and more on
production and
delivery 2 - Product Concept:

Demand Focus on offering high


quality with differentiation
Supply

TIME
Page 8

Demand & Supply Behaviour

1 - Production 2 - Product
Concept:
Focus on more
Concept:
Focus on 3 – Selling Concept:
and more offering high
production and quality with
delivery differentiation
Aggressively advertise and
Demand use personal selling to
promote products
Supply Competition

TIME
Page 9

Demand & Supply Behaviour


3 – Selling
Concept:
Aggressively Supply 4– Marketing Concept:
1 - Production 2 - Product advertise and use Satisfying consumers'
Concept: Concept: personal selling to
Focus on more Focus on needs, creating value
promote products
and more offering high and retaining them better
production and quality with
delivery differentiation
than competitors
Demand

Demand

Supply

TIME
Note 3
Q1 – The initial business concept was:
a. Product concept
b. Production concept

Q2 – Product quality improvements and differentiation was


focused in:
Quick a. Product concept
Questions b. Production concept

Q3 – Marketing concept highlights:


a. Importance of satisfying customers better than
competitors
b. Not to focus on customer expectations and satisfy them
Q4 – What is marketing myopia?
a. Becoming too much customer focused
b. Becoming too much market oriented
c. Becoming too much product oriented
Quick
Questions Q5 – What is the biggest mistake done in the product
concept:
a. Customer was not consulted
b. Shareholders were not consulted
Marketing Concept

Satisfying consumers' needs, creating value and retaining


them better than competitors

Marketing was defined as a


“management process responsible
for identifying, anticipating and
satisfying customer
requirements profitably"
Marketing Concept:

Satisfying consumers' needs, creating value and


retaining them better than competitors

03 important areas highlighted in the Marketing Concept:

- Customer Satisfaction
- Customer Retention
- Customer Value
Page 20

Customer Value
Customer value is the ratio between customers’ perceived
benefits and the resources they spend to obtain those perceived
benefits.

Customer Value = Benefits / Resources

Benefits : Resources:
Economic, Functional, Monetary, time, effort
and Psychological
Biscuits
Sales were
dropped
Biscuit manufacturers
acknowledged that prices
have skyrocketed beyond the
reach of many people. A mere
100 gram packet of ordinary
biscuits sold at Rs. 20 - Rs.30
is now priced above Rs 100/-
Page 20

Customer Satisfaction
Customer satisfaction refers to customers’ perceptions of the
performance (I.e. experiences) of the product or service in
relation to their expectations

Experience
Expectation
Customers Satisfaction creates
LOYAL CUSTOMERS

Stay with the Positive word of


brand/product mouth

Purchase large Less price


quantities sensitive

Do not shift to
competitor
brands/products
Page 20

Customer Retention
Customer retention involves turning individual consumer
transactions into long-term customer relationships by making it in
the best interests of customers to stay with the company rather
than switch to another firm
Has the Marketing
Concept
Changed??
Societal Marketing
Concept
A premise that requires marketers to
fulfill the needs of the target
audience in ways that improve,
preserve, and enhance society’s
well-being, while also meeting
their business objectives

Societal Marketing Concept is not a totally new concept. But it is


a modification done to the Marketing Concept
TECHNOLOGY AND
CUSTOMERS
Technology is changing the way customers behave
influencing multiple ways:

• What they purchase?


• How they purchase?
• How much they purchase?
• How they pay for purchases?
• When will they purchase?
• From where they purchase
• Etc.
TECHNOLOGY AND CUSTOMERS

Web-sites Online purchasing Mobile technology Social media Digital marketing Customer
and subscriptions engagements
Web sites are common

Millions of websites for customers to


explore, search and collect
information and purchase products
Online Purchasing Online purchasing behaviour is increasing in SL

https://fcms.kln.ac.lk/dep/dmm/index.php/news/301-
digital-outlook-sri-lanka-2022-annual-market-insight-
report
Social Media
The number of social media users in Sri
Lanka at the start of 2022 was equivalent
to 38.1 percent of the total population
Customer Engagements
The End

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