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Chapter 1

Consumer behaviour Defined as activities people undertake when obtaining, consuming and disposing of products and services. “why people buy” Includes 3 primary activities: Obtaining – activities leading up to and including the purcase or receipt of a product Consuming – how, where, when and under what circumstances consumers use products. Disposing – how consumers get rid of products and packaging |

3 Methological approaches of studying consumer behavour:
Observation
Interviews and surveys
experementation

Traditional research methods
Focus groups
Surveys
Choice modeling
Observation

Psychopshysiological methods
Biofeedback
Facial coding
Eye tracking
Vocal analysis

The Underlying principles of consumer behaviour (Exam)
(mottos for some of the most successful organisations)

The consumer is sovereign
Products and services are accepted or rejected to the extent that they are percieved as relevant to needs and lifestyles. It is easier for a firm to change its marketing programs to fit the prefrances of consumers than to expect consumers to change their prefreances and needs. eg. Macdonalds offer quick and affordable fast food and addapts its menu to suit cultural or national needs.

The consumer is global
Consumer today have access to global television and the internet and buys the same brands from the same retailers for the same reasons all over the world. eg. consumers buys coke from Spars and Shell garages all over the world Consumers are different; consumers are alike

marketers look for goups/ segments of people with similar needs while recognising the differences between groups/ segments. eg. Mercedes identify consumers with a need for luxury vehicles , they are different from those with a need for heavy duty trucks. Mercedes manufactures both. The consumer has rights

To safety, information, redress, choice, enjoyment and protection. eg. Cigarette companies have to place warnings on their packaging so consumers can make infomed choices and know that while they are enjoying the product they are not safe or protected in terms of health risks

Marketing segmmentation
Spanning demographic characterisitcs and geographical bounderies. Consumers analyst focus on similaritis within groups of consumers, while recognising the differences between groups.

Intermarket segmentation
When segments exsist across national bounderies

Chapter 2

What is marketing strategy?
A decisive allocation of resources (capital, technology, and people) in a particular direction, n customer centric organisations, the direction in which resources should be commited is determined by consumers

Consumer Centricity Creating a positive consumer experience at the point of sale and post sale. This approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience. Customer centric organisation a strategic commitment to focus every resource of the firm on serving and delighting profitable customers. Characterisitcs of such organisations include the following: shared vision and values cross functional integration system wide simultaneous trainng Customer based metricsOLE-object |

Market aggregration or mass marketing
occurs when organisations choose to market and sell the same product or service to all customers (opposite of market segmentation) Consumers in this market wand functional benefits and the lowest possible prices.

Consumer characterisitics

Criteria for choosing segments
Measurability – ability to obtan information about size, nature, behaviour of marketing segment. Consumers must behave in similar ways but those behaviours must be directly measurable Accessibility – degree to which segments can be reached, either though tarket advertising or communication programs. Sustainability – refers to the size of the...
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