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Introduction: The Impact of the Digital Revolution on Consumer Behavior

Introduction: The Impact of the Digital Revolution on Consumer Behavior. Opening Vignette. Objectives of One-to-One Marketing. To attain customers Sell them more products Make a profit. Digital Revolution in the Marketplace.

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Introduction: The Impact of the Digital Revolution on Consumer Behavior

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  1. Introduction: The Impact of the Digital Revolution on Consumer Behavior www.assignmentpoint.com

  2. OpeningVignette www.assignmentpoint.com

  3. Objectives of One-to-One Marketing • To attain customers • Sell them more products • Make a profit www.assignmentpoint.com

  4. Digital Revolution in the Marketplace • Allows customization of products, services, and promotional messages like never before • Enhances relationships with customers more effectively and efficiently www.assignmentpoint.com

  5. Increased consumer power Access to information More products and services Interactive and instant exchanges Access to customer patterns and preferences Evolution to other -Web connection PDAs HDTV Mobile phones Changes in the Business Environment www.assignmentpoint.com

  6. Consumer Behavior The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. www.assignmentpoint.com

  7. Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. www.assignmentpoint.com

  8. Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function. www.assignmentpoint.com

  9. Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept www.assignmentpoint.com

  10. The Production Concept • Assumes that consumers are interested primarily in product availability at low prices • Marketing objectives: • Cheap, efficient production • Intensive distribution • Market expansion www.assignmentpoint.com

  11. The Product Concept • Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features • Marketing objectives: • Quality improvement • Addition of features • Tendency toward Marketing Myopia www.assignmentpoint.com

  12. The Selling Concept • Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so • Marketing objectives: • Sell, sell, sell • Lack of concern for customer needs and satisfaction www.assignmentpoint.com

  13. The Marketing Concept • Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition • Marketing objectives: • Profits through customer satisfaction www.assignmentpoint.com

  14. Business Leaders Who Understood Consumer Behavior • Alfred Sloan, General Motors • Colonel Sanders, KFC • Ray Kroc, McDonald’s www.assignmentpoint.com

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  16. The Marketing Concept A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals. www.assignmentpoint.com

  17. Implementing the Marketing Concept • Consumer Research • Segmentation • Targeting • Positioning www.assignmentpoint.com

  18. Consumer Research • The process and tools used to study consumer behavior. • Two perspectives: • Positivist approach • Interpretivist approach www.assignmentpoint.com

  19. Segmentation, Targeting, and Positioning • Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics • Targeting: selecting one ore more of the segments to pursue • Positioning: developing a distinct image for the product in the mind of the consumer www.assignmentpoint.com

  20. Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product Successful Positioning www.assignmentpoint.com

  21. The Marketing Mix • Product • Price • Place • Promotion www.assignmentpoint.com

  22. Successful Relationships Customer Value Customer Retention Customer Satisfaction www.assignmentpoint.com

  23. Loyalists Apostles Defectors Terrorists Hostages Mercenaries Types of Customers www.assignmentpoint.com

  24. Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead www.assignmentpoint.com

  25. Societal Marketing Concept A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole. www.assignmentpoint.com

  26. The Societal Marketing Concept • All companies prosper when society prospers. • Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision. • Requires all marketers adhere to principles of social responsibility. www.assignmentpoint.com

  27. Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Input External Influence Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Process Consumer Decision Making Experience Figure 1-1: A Model of Consumer Decision Making Purchase 1. Trial 2. Repeat purchase Post-Decision Behavior Output Postpurchase Evaluation www.assignmentpoint.com

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