MCS 2600 Chapter Summaries.docx

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University of Guelph
Marketing and Consumer Studies
MCS 2600
Karen A.Gough

MCS2600 CHAPTER SUMMARIESConsumer Behavior Chapter 1Meeting Changes and Challenges 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 needsIt focuses on how individual consumers and families or households make decisions to spend their available resources time money effort personal consumer buys goods and services for his or her own use for the use of the household or as a gift for a friend Buy for final use end users organized consumer includes profit and notforprofit businesses government agencies local state and national and institutions eg schools hospitals and prisons all of which must buy products equipment and services in order to run their organizationsThe marketing concept grew from three different philosophical business orientationsproduct orientation1850s1920s focused on perfecting the production capabilities of the companysales orientation1930smid 1950s focused on selling more of what the manufacturing department was able to producemarketing orientationmid 1950snow focuses on putting the consumer first marketing concept in order to be successful a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition A satisfactory profit is envisioned as an appropriate reward for satisfying consumers needs not as a right of simply being in business societal marketing concept suggests that consumers may on occasion respond to their immediate needs or wants while overlooking what is in effect in their own longrun best interest or the best interest of their family neighbours country region entire planet market segmentation the process of dividing a market into subsets of consumers with common needs or characteristics market targeting the selection of one or more of the segments identified for the company to pursuepositioning refers to the development of a distinct image for the product or service in the mind of the consumer an image that will differentiate the offering from competing ones and faithfully communicate to the target audience that the particular product or service will fulfill their needs better than the competing brands marketing mix consists of a companys service andor product offerings to consumers and the methods and tools it selects to accomplish the exchange The Four Ps product price place promotion customer value can be thought of as the ratio between the customers perceived benefits economic functional and psychological and the resources monetary time effort psychological used to obtain those benefits customer satisfaction the individual customers perception of the performance of the product or service in relation to his or her expectations Loyal customersbuy more productsare less price sensitive and pay less attention to competitors advertisingservicing existing customers who are familiar with the companys offerings and processes is cheaperspread positive word of mouth and refer other customers narrowcasting a method that enables marketers to develop and deliver more customized messages to increasingly smaller market segments on an ongoing basis consumer decision making can be viewed as three distinct but interlocking stages the input stage the process stage and the output stageChapter 3Market Segmentation and Strategic MarketingMass Marketing Offering the same product and marketing mix to all consumers Market Segmentation The opposite of mass marketing The process of dividing a potential market into distinct subsets of consumers with a common need or characteristic and selecting one or more segments to target with a specially designed marketing mix Market segmentation and targeting process1 The identification of distinct segments within a given market or population2 Evaluation of each segments marketing potential 3 Selection of the segments to be targeted 4 Creation of the marketing mix product price place and promotion Criteria for Effective TargetingIdentifiable Divide the market into separate segments on the basis of common or shared needs or characteristics that are relevant to the product or service Sizeable A segment must consist of enough consumers to make targeting it profitableStable
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