1. People as Consumers
What you should learn from this module: To place consumption in the context of human behaviour The positivist and interpretivist approaches to its study The concept of real cost The production orientation and the marketing concept
1.1 1.2 1.3 1.4 1.5 1.6 Introduction Buyers, Customers and Consumers Consumer Behaviour The Consumer Environment and the Consuming Society The Consumer and the Market Place Markets and Marketing
Consumer behaviour is an integral part of our daily lives. The psychological and social processes involved in buying and consuming goods and services form the subject matter of this text. The objective positivist approach to studying cause and effect in consumer behaviour (as in any other kind of behaviour), will be combined with the interpretivist emphasis on trying to understand the emotional, non-rational aspects of the process. The environment which the consumer operates in, including the nature of the market place for goods and services, also needs to be considered. Finally, the change from a production orientation to a marketing concept has been instrumental in fostering the study of consumer behaviour over recent decades.
2. Market Segmentation
What you should learn from this module: The effect of the marketing concept on segmentation The origins and importance of segmentation
The contribution of segmentation to marketing The different forms of segmentation The particular importance of psychological segmentation
2.1 2.2 2.3 2.4 2.5 2.6 Introduction: The Origin of Segmented Markets Geographic Segmentation Demographic Segmentation Psychological Segmentation Segmentation by Usage Segmentation by Benefit
Market segmentation began when producers realised they could no longer sell whatever they produced, but had to begin competing for business. The best market conditions for successful segmentation seem to depend on three factors: the identifiability, accessibility and size of a prospective segment. Five forms of segmentation were identified as being particularly important: geographic, demographic, psychological, plus segmentation by use and benefit. A great deal of work has been done on psychological segmentation, producing various attempts at classifying consumers according to personality factors.
3. New Products and Innovations
What you should learn from this module: The factors involved in introducing new products to the market The effects of personal influence factors on success How new products and innovations are diffused How and why new products and innovations are adopted
3.1 3.2 3.3 3.4 3.5 3.6 Introduction Developing New Products The Product Life-Cycle The Effects of Personal Influence The Diffusion of New Products and Innovations The Adoption of New Products and Innovations
Thousands of new products are marketed every year in supermarkets alone and most of them fail. Because of declining birth rates, shortening lead times on the profitability of new products and intensified global competition, innovation is now regarded as a crucial function
of all organisations. Levitt's total product concept is a useful model for marketers in thinking about the benefits of the product they are introducing. Successful innovation seems to imply some far-reaching social change in the life of the consumer, or in the relationship between the consumer and the producer of goods or services. Every new product seems to go through a five-stage life cycle from its introduction to its inevitable decline. By the latter stage, replacement products should, rationally, be in the process of development. However, because of the influence of non-rational psychological processes within organisations, this does not always occur. Personal influence is often exerted on the...