September 12 Class Notes/Readings - MOS
Why study consumer behaviour?
– Nothing drives the economy more than consumer spending
– Humans = consumers
Understanding CB is critical to marketing which begins and ends with the
– From determining consumer needs/wants and providing satisfaction
What is CB, what drives CB?
– What, when, where, how, why they buy
– Easy to design a marketing strategy... if only all consumers responded the
same way, at all times
– However, this is far from being the case.
– Even same individual consumer can behave inconsistently
– External and internal factors change what consumers need and want ex:
marriage, having children, change in technology
Goals of Studying CB
– Understand and predict consumer behaviour, recognize how it is shaped by
– Integrating theories/concepts from psych, soci, anthroplogy, geography,
econ and stats
Understanding CB at individual level, group level
Understanding of consumers. Essential in every aspect of marketing
Produce management, advertising, market research, purchasing, logistics, HR
management Chapter 1 – Marketing: Creating and Capturing Customer Value
What does marketing mean to me?
Marketing: Satisfying customer's needs.
Marketing: the process of planning, managing and executing the conception,
pricing, promotion, and distribution of ideas, goods, services, organizations and
events to create and maintain relationships that will satisfy individual needs and
organizational objectives (profit, market share, brand strength etc).
“Marking really is manipulation – just spelled differently.”
Marketing is one of many on a wheel surrounding management.
– If a business fails to evolve, they die. Example: why Apple is thriving and
RIM is dying.
The Marketing Process
1. Understand the marketplace and customer needs, wants demands
2. Design a customer-driven marketing strategy – who will we serve? How will
we be different
3. Construct an integrated marketing program that delivers superior value.
Marketing mix, product, price, place, promotion
4. Build profitable relationships and create customer delight – Are we actually
creating value? Are our customers satisfied?
5. Capture value from customers in return. Capture value from customers to
create profits and customer equity – the financial value and gain by
delivering good value to its customers. Customer lifetime value – increased
shares, share of customer, customer equity (total combined customer
lifetime values of all of a company’s customers)
Requirements for Marketing to Occur
1. Two or more parties with unsatisfied needs
2. Desire and ability to satisfy these needs – the money
3. A way for the parties to communicate
4. Something to exchange
Understanding the Marketplace and Customer Needs
Needs – states of deprivation
– Physical – food, clothing, warmth, safety
– Social – belonging and affection
– Individual – knowledge and self-expression
– Form that needs take
What do companies actually sell?
Marketing myopia – management's failure to recognize the scope of its busine