MOS 1021 Consumer Behaviour Unit Summary

42 Pages
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Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 1021A/B
Professor
James O' Brian

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Description
MOS 1021 Consumer Behaviour Unit Chapter NotesChapter 1 LG Example 2008The essence of marketing is discovering consumer insightsYou must be relevant and engaging enough for consumers to choose your product or serviceCreate awareness and hype for new productsPrompt support from retailersEncourage consumers to gather informationexperience and buy the productDesign with the target market in mindBeat competitors to marketMarketing Mix o Product features technology name etc o Price competition price plans etc o PlaceDistribution Retailers stores etc o Promotion create buzz in the marketPique consumer interest and encourage purchaseStand out by considering target markets social interests activitiesmedia habitsTypes of Promotion o Public relations publicity o TV Advertising commercials during shows commonly watched by target market o PrintBased Advertising posters to catch attention of target market o Online Advertising banner ads search engine ads email microsite o Pointofsale Material displaysUnderstand and deliver on consumer needsConsumers are busy in their worlds and not in our worldsKeep a watchful eye on competitionNever lose sight of your consumer or you may miss your window of opportunityThe Essence of Marketing Target CustomersFocus on Consumer Needs o Delight the consumer and encourage customer loyalty o Clearly determine needs o Understand how to best meet needs o ChallengesConsumers do not know what they wantConsumers do not want to articulate their feelingsConsumers are unable to communicaterationalize choicesResearch results are often unclearMarketers may not ask the right questionsTarget markets are hard to findextract feedback from ie childrendoctorsCreate Consumer Value o Develop customer loyalty o Unique combination of benefitsQuality product designPriceConveniencePunctual deliveryBefore and after sale service o Requires careful management of the marketing mix to make value evident to consumersAppealing to Target Markets o Cannot satisfy everyones needs with a single product o With limited funds it is better to channel resources towards groups who are most interested in buying o Target market specific group of existingpotential consumers to which a marketer targets its effortsCoordinate the Marketing Mix o Make sure that each appeals to distinct characteristics of the target market o Marketers need to know what makes their consumers tick o Market researchconstant evaluation of marketing program o Over time marketers gather extensive info on target market to identify purchase motivation based on behavioural and psychological motivation o Marketers define target market by likes dislikes motivation interests and concernsThe Marketing ProcessRequires marketers to pay attention to detailApply strategic analyticalcreativethinking skills3 Steps o Identify consumer needs o Manage the marketing mix to meet needs o Realize profitsConstantly evaluating success o Implementingrecommending changes to make marketing programs more competitivealluringMarketing programs are designed to generate company revenueNeed to manage ALL elements of the marketing mixMarketing process of planning products to meet consumer needs and organizational goalsObjectives of both buyersellermust be met for an exchange to happenExamples of nonmonetary exchanges o Volunteering service in exchange for need to support a cause o Providing referrals in exchange for discounts etcWhat Can Be MarketedGoods tangible o Eg Red Bull electronics furniture food etcServices intangible o Eg Doctors massage therapists movie theatres etcIdeas intangible o Eg Earth Hour LiveStrong etcHMV ExampleEvolve focus to reflect buying habits of changing marketExpand product base What is a MarketPotential consumers who have both the ability and willingness to buyMarket target market and consumers are different but sometimes overlapping categories o FischerPrice exampleMarket is parents willingable to buyTarget market includes parents and children must focus efforts on bothConsumers are children ultimate usersMarketers need to make sure needs of consumerstarget market are metThe Evolution of Business PhilosophiesProduction Orientation before 1930s o Focused on manufacturing o Goods were in short supply and sold regardless of quality o Consumer needs not a prioritySales Orientation 19301960 o Focus on selling as much as possiblemaking profit o Products in abundance o Consumer needs not a priorityMarketing Orientation 19601990 o Marketing Concept Focus on idea that organizations should satisfy needs of consumersas well as meet organizational goals o Due to increased competition o Focus on collecting info on customer needs sharing info creating customer valueRelationship Marketing 1990present o Focus on building longterm relationships lifetime value of customers o Offer better services deliver consistent product quality o Customer retentionongoing customer satisfaction o Gather info to develop relationshipretain loyalty o Personalbegins before a salecontinues after a saleThe Progression of MarketingEvolving AreasCustomer Relationship Management o Less expensive to servicemaintain current customers o Systematicactive company approach to managingretaining satisfied customers o Efficientlyaccurately identify elements that lead to satisfied customers o Facilitated by computer software that tracks customer choices preference complaintsallows marketers to customize o Permeates organization which implements policies processesstrategies o Phone callsemails to keep in touch with customers implement customer incentives o Value of specific customers over their lifetimewhat offers are most suited to their stage in life ie pregnancy through parenthood o Store designExperiential Marketing o Marketers create opportunities for consumers to interact with their brand o Create occasion for a few consumers to interact personally with brandspread word o Word of mouth awarenesspublicity o Free sampling
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