Chapter 1

Consumers have unique needs and
wants.
Marketing is all about understanding
and anticipating consumer needs and
developing solutions for those unique
needs.
All marketing decisions/strategies
inevitably are based on assumptions
or knowledge of consumer behavior.
Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.
Introduction
11
Decisions based on sound knowledge

and research are more likely to
successful than decisions based
solely on hunches, assumptions or
intuition.
The objective of this course is to
increase your understanding of
consumer behavior to help you
become a more effective marketing
manager.
reserved.
Introduction
12
Successful marketing decisions require:a. Extensive information of consumer behavior

b. Need to collect information about specific
consumers involved.
c. Consumer behavior is a complex,
multidimensional process. E.g. Bournvita
d. Marketing practices designed to influence
consumer behavior involve ethical issues
that affect the firm , the individual and
society at large. E.g. Coke in China
reserved.
Introduction
13
reserved.
Marketing
Strategy
and
Consumer
Behavior
14
The Consumers
The Company
The Competitors
The Conditions
reserved.
Market Analysis Components
15
Market
segmentation
is a portion of a
larger market
whose needs
differ from the
larger market.
reserved.
Market Segmentation
16
Market Segmentation Involves Four

Steps:
Identifying Product-Related Need Sets
Grouping Customers with Similar Need
Sets
reserved.
Market Segmentation
Describing Each Group

Selecting an Attractive Segment(s) to
17
reserved.
Market Segmentation
18
Marketing Strategy is the answer to the

question: How will we provide superior
customer value to our target market?
This requires the formulation of a consistent
marketing mix, which includes the
Product
Communications
reserved.
Marketing Strategy
Price
Distribution
Services
19
The following Video Clip shows how

digital signage (the communications
element) keeps the marketing
message fresh!
reserved.
Video Application
110
111
reserved.
The consumer decision process intervenes

between the marketing strategy, as
implemented in the marketing mix, and the
outcomes.
The firm can succeed only if consumers see a
need that its product can solve, become aware
of the product and its capabilities, decide that
it is the best available solution, proceed to buy
it, and become satisfied with the result of the
purchase.
reserved.
Consumer Decisions
112
Firm Outcomes
Individual Outcomes
Society Outcomes
reserved.
Outcomes
113
Creating Satisfied Customers
reserved.
Outcomes
Pella Windows on Creating Satisfied

Customers through Quality
YouTube Spotlight
114
Consumer behavior is
the study of individuals,
groups, or organizations
and the processes they
use to select, secure,
use, and dispose of
products, services,
experiences, or ideas to
satisfy needs and the
impacts that these
processes have on the
consumer and society.
reserved.
Consumer Behavior and Marketing

Strategy
115
Marketing Strategy
Regulatory Policy
Social Marketing
reserved.
Applications in Consumer Behavior
Informed Individuals
116
Social Marketing:
Is the application of marketing
strategies and tactics to alter and
create behaviors that have a positive
influence on the targeted individuals
or society at large.
reserved.
Applications in Consumer
Behavior
117
Consumer Behavior deals with issues

related to consumption behaviors.
Consumption behavior is influenced
by individual and environmental
determinants. The following diagram
depicts these influences
reserved.
The Nature of Consumer

Behavior
118
Overall Conceptual Model of Consumer

Behavior
reserved.

Behavior
119
External Influences
Culture
Demographics and
social stratification
Ethnic, religious, and
regional subcultures
Families and
households
Groups
reserved.
The Nature of Consumer Behavior
120
Internal Influences
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
reserved.
121
Self-Concept and
Lifestyle
Self-concept is the
totality of an individuals
thoughts and feelings
about oneself.
Lifestyle is how one
lives, including the
products one buys, how
one uses them, what
one thinks about them,
reserved.
122
Situations and
Consumer
Decisions
Consumer decisions
result from
perceived problems
and opportunities.
Consumer problems
arise in specific
situations and the
nature of the
situation influences
the resulting
reserved.
Using Outdoor Media to Trigger Problem

Recognition
123
The Consumer Behavior is interdisciplinary. It borrows

Psychology (the study of the individual: individual
determinants in buying behavior),
Sociology (the study of groups: group dynamics in buying
behavior),
Social psychology (the study of how an individual
operates in group/groups and its effects on buying
behavior),
Anthropology (the influence of society on the individual:
cultural and cross-cultural issues in buying behavior),
Economics (income and purchasing power).
reserved.

Behavior
124
Consumer behavior is dynamic and

interacting.
As a field of study it is descriptive and also
analytical/ interpretive. It is descriptive as
it explains consumer decision making. It is
analytical/ interpretive, as it objective is
also to predict Consumer Behavior.
reserved.

Behavior
125
Consumption has meaning beyond

satisfaction of minimum or basic
consumer needs
Symbolic needs
Status
Identity
Group acceptance
reserved.
The Meaning of Consumption
126

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Chapter 1

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Consumers have unique needs and

Decisions based on sound knowledge

Successful marketing decisions require:a. Extensive information of consumer behavior

Market Analysis Components

Market Segmentation Involves Four

Describing Each Group

Marketing Strategy is the answer to the

The following Video Clip shows how

The consumer decision process intervenes

Creating Satisfied Customers

Pella Windows on Creating Satisfied

Consumer Behavior and Marketing

Applications in Consumer Behavior

Consumer Behavior deals with issues

The Nature of Consumer

Overall Conceptual Model of Consumer

The Nature of Consumer

The Nature of Consumer Behavior

The Nature of Consumer Behavior

The Nature of Consumer Behavior

The Nature of Consumer Behavior

Using Outdoor Media to Trigger Problem

The Consumer Behavior is interdisciplinary. It borrows

The Nature of Consumer

Consumer behavior is dynamic and

The Nature of Consumer

Consumption has meaning beyond

The Meaning of Consumption

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