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Consumer Behavior

and Marketing Strategy

APPLICATIONS OF CONSUMER BEHAVIOR

APPLICATIONS OF CONSUMER BEHAVIOR

Marketing Strategy

Regulatory Policy

Social Marketing

Informed Individuals

strategies and tactics

implement policies designed to protect and aid consumers.

application of marketing strategies and tactics to alter or create

behaviors that have a positive effect on the targeted

MARKETING STRATEGY

AND CONSUMER BEHAVIOR

individual and societal impacts may not be in the best interests of the individual or society, the development and applica-

tion of consumer behavior knowledge has many ethical implications.

MARKET ANALYSIS COMPONENTS

The Company

The Competitors

The Consumers

The Conditions

It is not possible to anticipate and react to customers’ needs and desires without a complete understanding of consumer behavior. Discovering customers’ needs is a complex process, but it can often be accomplished by marketing research.

Marketing skills would include new-product development capabilities, channel strength, advertising abilities, service capabilities, marketing research abilities, market and consumer knowledge, and so forth.

The state of the economy, the physical environment, government regulations, and technological developments affect consumer needs and expectations as well as company and competitor capabilities.

MARKET SEGMENTATION

Product-Related Need Sets

Customers with Similar Need Sets

Description of Each Group

Attractive Segment(s) to Serve

MARKETING STRATEGY

The Product

Communications

Price

Distribution

Organizations approach market segmentation with a set of current and potential capabilities.

The next step is to group consumers with similar need sets. For example, the need for mod-

erately priced, fun, sporty automobiles appears to exist in many young single individuals, young couples with no children, and middle-aged couples whose children have left home.

Once consumers with similar need sets are identifi ed, they should be described in terms of

their demographics, lifestyles, and media usage.

Once we are sure we have a thorough understanding of each segment, we must select our

target market

A product is anything a consumer acquires or might acquire to meet a perceived need.

Consumers are generally buying need satisfaction, not physical product attributes.

Price is the amount of money one must pay to obtain the right to use the product. One can

buy ownership of a product or, for many products, limited usage rights

Marketing communications include advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products.

Distribution, having the product available where target customers can buy it, is essential

to success.