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4 - 1
Chapter
Chapter
4
4
Analyzing
Analyzing
Consumer
Consumer
Behavior
Behavior
4 - 2
Key Learning Points
Key Learning Points
Concept & activity of market segmentation
Concept & activity of market segmentation
Segmentation implementation issues
Segmentation implementation issues
Understanding consumer motives for
Understanding consumer motives for
buying behavior
buying behavior
Understanding how consumers make
Understanding how consumers make
purchase decisions
purchase decisions
Importance of understanding where and
Importance of understanding where and
when consumers buy
when consumers buy
Implications for global and technology
Implications for global and technology
-
-
based markets
based markets
4 - 3
Customer Analysis
Customer Analysis
Customer analysis addresses five
Customer analysis addresses five
questions:
questions:
–
–
Who are the current and potential
Who are the current and potential
customers for the product or service?
customers for the product or service?
–
–
Why do they buy?
Why do they buy?
–
–
How do they make purchasing
How do they make purchasing
decisions?
decisions?
–
–
Where do they buy the product or
Where do they buy the product or
service (what channels are used)?
service (what channels are used)?
–
–
When do they buy?
When do they buy?
4 - 4
Customer Analysis
Customer Analysis
Customer analysis should include:
Customer analysis should include:
–
–
Current customers
Current customers
–
–
Competitors
Competitors
’
’
customers
customers
•
•
Helps understand why competitors
Helps understand why competitors
’
’
products are being bought.
products are being bought.
–
–
Former customers
Former customers
•
•
Helps to understand weaknesses of your
Helps to understand weaknesses of your
product or service.
product or service.
–
–
Nonusers
Nonusers
•
•
Helps understand how to expand the market.
Helps understand how to expand the market.
4 - 5
Who Are the Customers?
Who Are the Customers?
Market segmentation is the key
Market segmentation is the key
–
–
Breaks mass markets into groups with
Breaks mass markets into groups with
unique buying habits.
unique buying habits.
–
–
Segments are useful when:
Segments are useful when:
•
•
People in different segments behave
People in different segments behave
differently toward the product.
differently toward the product.
•
•
Different marketing elements (price, etc.)
Different marketing elements (price, etc.)
can be used to effectively reach different
can be used to effectively reach different
segments.
segments.
–
–
The segmentation process makes use
The segmentation process makes use
of both primary and secondary data.
of both primary and secondary data.
4 - 6
Who Are the Customers?
Who Are the Customers?
Benefits of market segmentation
Benefits of market segmentation
–
–
More efficient than mass marketing.
More efficient than mass marketing.
•
•
Less money is wasted on low
Less money is wasted on low
probability contacts.
probability contacts.
–
–
More effective than mass
More effective than mass
marketing.
marketing.
•
•
Every aspect of the marketing mix can
Every aspect of the marketing mix can
be customized to appeal to the needs
be customized to appeal to the needs
of each segment.
of each segment.
4 - 7
Who Are the Customers?
Who Are the Customers?
Single
Single
-
-
customer segments make
customer segments make
sense in certain circumstances:
sense in certain circumstances:
–
–
Number of customers is small.
Number of customers is small.
–
–
Companies try to create perception that
Companies try to create perception that
individuals are treated as a unique
individuals are treated as a unique
group using:
group using:
•
•
One
One
-
-
to
to
-
-
one marketing, by means of
one marketing, by means of
individualized communications.
individualized communications.
•
•
Mass customization, via personalized
Mass customization, via personalized
products and services.
products and services.
4 - 8
1.
1.
What particular database fields
What particular database fields
would casino marketers use in
would casino marketers use in
developing one
developing one
-
-
to
to
-
-
one marketing
one marketing
appeals?
appeals?
2.
2.
Can you think of an example of a
Can you think of an example of a
product or service that offers
product or service that offers
consumers mass customization
consumers mass customization
opportunities? Explain.
opportunities? Explain.
Discussion Questions
Using one
Using one
-
-
to
to
-
-
one marketing
one marketing
effectively requires that marketers
effectively requires that marketers
have access to extensive databases.
have access to extensive databases.
4 - 9
Product & Service
Product & Service
Decisions
Decisions
Key Decisions
Key Decisions
Who Are the Customers?
Who Are the Customers?
Geographic and Psychographic
Geographic and Psychographic
Variables
Variables
Region
Region
City or
City or
metro size
metro size
Density
Density
Climate
Climate
4 - 9
Lifestyle
Lifestyle
Personality
Personality
4 - 10
Product & Service
Product & Service
Decisions
Decisions
Key Decisions
Key Decisions
Who Are the Customers?
Who Are the Customers?
Demographic Variables
Demographic Variables
Age
Age
Family size
Family size
Family life cycle
Family life cycle
Gender
Gender
Income
Income
Occupation
Occupation
4 - 10
Education
Education
Religion
Religion
Race
Race
Generation
Generation
Nationality
Nationality
Social class
Social class
[...]... activity: “You are where you live” 4 - 22 Who Are the Customers? Marketing Research Implications: Developing Target Markets – Parsimony must be considered – Selected segmentation scheme must statistically explain differences in purchasing behavior or other key variables • Behavior = f (segmentation variables) 4 - 23 Who Are the Customers? Marketing Research Implications: Developing Target Markets – Other... Do Customers Buy? Steps in the purchase decision process – Need recognition: Maslow’s Hierarchy of Needs • Physiological • Safety • Social • Ego • Self-actualization 4 - 26 Product & Service DecisionsMarketing managers must managers must translate product features into benefits The Goodyear web page provides an excellent example of this premise in practice 4 - 27 How Do Consumers Make Purchase Decisions?... determined? How do customers combine prior information to make choices? 4 - 31 How Do Consumers Make Purchase Decisions? Postpurchase Behavior – Consumers form expectations about the product prior to usage • Marketing communications influence expectations – Consumers evaluate product during and after consumption – Future purchases are highly dependent on postpurchase evaluation 4 - 32 How Do Consumers Make... Cultural values are transmitted via religion, education, and family 4 - 34 Figure 4-9: Elements of Culture 4 - 35 Product & Service “Cultural differences are Decisions particularly important in a global marketing context The biggest issue facing companies wanting to market products in other countries is the fact that significant differences in culture can affect the way customers respond to the product . than mass
More effective than mass
marketing.
marketing.
•
•
Every aspect of the marketing mix can
Every aspect of the marketing mix can
be customized. product.
differently toward the product.
•
•
Different marketing elements (price, etc.)
Different marketing elements (price, etc.)
can be used to effectively