Understanding Marketing Processes and Consumer Behaviour

1. Understanding Marketing Processes and Consumer Behaviour

2. Why? What’s New in the News?

3. Explain the concept of marketing. • Explain the purpose of a marketing plan and identify the four components of the marketing mix. • Explain market segmentation and show how it is used in target marketing. • Explain the purpose and value of market research. • Describe the key factors that influence the consumer buying process. Learning Objectives

4. Providing Value and Satisfaction • Value = comparison of benefits versus costs • Consumer, industrial and service level The Marketing Plan Planning and executing thepricing, promotion and distribution ofideas, goods, services to create exchanges thatsatisfy both buyers’ and sellers’ objectives. Marketing concept: The idea that the whole firm is directed toward serving present and potential customers at a profit. What is Marketing?

5. A type of marketing that emphasizes lasting relationships with customers and suppliers • Stronger relationships can result in greater long-term customer satisfaction and client retention Relationship Marketing

6. A detailed, focused strategy for gearing the marketing mix to meet consumer needs and wants Marketing Mix Marketing Plan

7. Activity: Determine basic design and specs of product/service Strategy: • Offering a product/service idea that satisfies the buyers’ needs • Product differentiation • Creating a product that has a point of difference and a competitive edge than existing products on the market • may involve changing existing products by responding to trends or adding new products Product Strategy

8. Product Positioning “Stand Out from the Crowd” • How you want your product or service (yourself) to be perceived by the customer (potential employer) • What is your point of difference (POD) • Create an image or identity in mind of the customer Branding Product Strategy

9. Activity: Determine how much a consumer will pay Strategy • Choosing the right price to attract consumers, meet the firm’s profit goals and provide value • Price = total value consumers willing to give • Consumer’s perception of value and quality • Price must consider all costs • operation and administration • marketing research • advertising Pricing Strategy

10. Activity: Determine where and when the product will be available Strategy: • Product accessibility • Getting the product to the right place at the right time • Choice of sales outlets • Physical transportation • Channels of distribution Place (Distribution Strategy)

11. Activity: Determine the visibility and image of the product Strategy: • Choosing the right method of communicating information about the product • Build consumer awareness, communicate product differentiation, create a need for the product • advertising • personal selling • sales promotions • public relations Promotion Strategy

12. Target market • A group of potential customers who have similar wants and needs • Market segmentation • Dividing a consumer market into categories • selecting specific market segment(s) to pursue • Positioning • Process of fixing, adapting and communicating the product to specific segments Target Market and Segmentation

13. CONSUMER PROFILE • Search for common traits between consumers • Geographicregion • Customerdemographics • Multi-cultural marketing • Customerpsychographics • Product-usevariables Identifying Market Segments

14. A systematic study of consumer needs • Focuses on the marketing mix elements • Leads to more effective marketing • Increases the accuracy and effectiveness of market segmentation Focus Groups - Observation Market Research

15. The study of the process by which customers come to purchase and consume a product or service • Influenced by • Psychological factors • Personal factors • Social factors • Cultural factors CB answers the question WHY? Consumer Behaviour

16. The Consumer Buying Process Choosing a College & Selecting a Program