MOS 1021 Consumer Behaviour Chapter 1-10

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Management and Organizational Studies
Management and Organizational Studies 1021A/B
James O' Brien

Consumer BehaviourChapter 1 Marketing FundamentalsThe essence of marketing is discovering consumer insightsThe Essence of Marketing p5Marketing success is rooting in focusing on consumers and providing them with value through products and services that meet their needsChallenge crafting marketing programs that create a distinct image for the product setting it apart from the competition while also appearing to consumers needsMarketers ultimate objectives are torealize a profit forprofit sector generate revenue to fund their programs and run their operations nonprofit sectorFocusing on Consumer NeedsPrograms focus on consumer needs try to delight consumer and encourage customer loyaltyChallenge clearly determine these needs and understanding how they can best be met with meaningful marketing approaches Consumers do not always know what they want Consumers do not always want to articulate their feelings Consumers are unable to communicate and rationalize their preferredchoicesmarketers may become misguided in their observations and conclusionsReasearch difficult area to navigate requires Insight into where brand should be heading Flexibility and clarity of thought to discern good ideas from bad Take calculated risks on results that are not crystal clearCreating Customer ValueCreate customer loyalty by providing customers with products and services that have added value through1 pricing strategies2 product design3 service elementsCustomer value unique combination of benefits received by targeted buyers that includes quality price convenience ontime delivery and both beforesale and aftersale services Deliver value by managing each element of marketing mix productprice place promotion so that thsi value is evident to consumersAppealing to Target MarketsCannot satisfy everyones needMust use limited funds better to channel resources toward groups of consumers that are most interestedTarget market the specific group of existing and potential consumers to which a marketer targets its marketing efforts Geared to appeal to products specific target market each element ofmarketing mix appeals to characteristics of target groupCoordinating the Marketing MixMarketing mix the 4 Psproduct price place promotion1 Product all the attributes that make up a good a service or an ideaincluding product design features colour packaging warrantee and service levels2 Price expected retail shelf price and sale price of the product3 Place Distribution channels and retailers required to sell the product4 Promotion Communication tools needed to inform consumers about the product including advertising sales promotion public relationsdirect marketing and personal sellingDetermined by market research and constant evaluation of marketing programs to understand how marketing efforts can best meet consumer needsPick up on consumer preferences design marketing programs that coordinate each element of the marketing mix to meet specific target market needsThe Marketing Process p8Marketing process involves1 Identifying consumer needs2 Managing the marketing mix to meet these needs3 Realizing profitsThroughout cycle constatntly evaluate success of programs implement and recommend future changes to make programs more competitive and alluring to consumersMarketers are ultimately responsible for generating company profitsrevenues Manage all elements of marketing mix and using research to help generate profits or revenues for organizationMarketing process of planning goods services or ideas to meet consumer needs and organizational objectives It includes the conception of these products and the pricing promotion and distribution programs designed to make a profitObjectives of both buyers and sellers must be met for exchange to occurExchange the trade of things between buyers and sellers so that each benefitsWhat Can Be MarketedGood a product you can touch and own ie Adidas running shoes Red BullService a good that is intangible that you cannot touch ie therapy session watching a movieIdea a concept that typically looks for your support ie WWF Earth HourWhat Is a MarketMarket potential consumers with both the willingness and ability to buy Market buyer of product Target market buyer and user of product Consumers user of productThe Evolution of Business Philosophies p10Production orientation focusing organizational efforts of the manufacture of goods In the 1930s goods were in short supply and would sell regardless of quality consumer needs were not a prioritySales orientation focusing organizational efforts on selling as many products as possible 193060s industrial revolution production became more efficient products were in abundance Goals was to hardsell for profit consumer needs were not major considerationsMarketing orientation focusing organizational efforts to collect and use information about cusomers needs to create customer value After 1960s marketplace got more competitive businesses became more sophisticatedMarketing concept the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve organizational goals Share information collectedc about customers needs across departments and use it to create customer valueRelationship marketing while organizations create longterm links with customers employees suppliers and other partners to increase loyalty and customer retention In 1990s carefully uses information on customers to develop relationships and retain loyaltygreater profit Involves a personal ongoing relationship between an organizationand its customers that ofter starts before sale occurs lasts well beyong point when sale has concluded less expensive to service and maintain current customer than obtain new onesThe Progression of Marketing and Evolving AreasProgression in marketing thinking due to consumer expectations societal pressures technological changes and philosophy of doing businessLatest evolving areas1 Customer relationship management2 Experiential marketing3 Corporate social responsibilityCustomer Relationship Management
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