Lecture 1:

Lecture 1:

1. CONSUMER BEHAVIOUR

   • DEFINITION: The behaviour that consumers display in searching for, using, evaluating, and disposing of products and services that they expect will satisfy their needs

2. MARKETING CONCEPT

   • 1. Consumer Research - The process and tools used to study consumer behaviour
   • 4. Segmentation - Process of dividing the market into subsets of consumers with common needs or characteristis
     • SEGMENTATION
       • WHY NECESSARY?
         • Consumers needs differ (shaped by life experiences, environment, culture, education etc.
         • Companies can differentiate their products to provide the benefits that segments desire and compete better
         • Helps identify media that is targeted to that segment for their advertising
       • Can be based on consumers demographics, product usage, geography, lifestyle and other characteristics and needs
       • TWO BASED APPROACH
         • 1. CONSUMER ROOTED BASES
           • Demographics
             • E.G Age, Gender, Marrital status, Occupation
           • Geodemographic
             • Geography & Demographics. People who live close to one another are similar
           • Personality Traits
             • Not often identified as can be guarded/not concious
             • E.G Consumer innovators - open minded, will try new things
           • Lifestyles
             • Psychographics, Values. Includes activities, interests, opinions.
           • Sociocultural
             • Socio = Family life-cycle, social class
             • Cultural = Cultural values, cross cultural affiliations
         • 2. CONSUMPTION-SPECIFIC BASES
           • Usage Rate
             • Heavy, Light, Nonusers.ALSO Level of awareness and involvement
           • Usage Situation
             • WHEN given product is used.E.G Valentines day, special occasions.
           • Benefit Segmentation
             • What benefits does the consumer seek?
           • Perceived Brand Loyalty
             • Attitude towards a brand, Behaviour (how often they purchase the brand), Frequency award programmes
           • Brand Relationship
             • Can be active or passive.Commitment, sense of loyalty, expectations, confidence
   • 2. Market Targeting - The selection of one or more of the segments identified to pursue
   • 3. Positioning - Developing a distinct image for the product in the mind of the consumer
     • Communicating the BENEFITS of the product
     • Communicating a USP