Relationship between consumer behavior and marketing concept
The field of consumer behavior is rooted in the marketing concept, . a) An exchange with a consumer is part of a customer relationship, not just a transaction. . behavior as an academic discipline and the marketing concept. Describe the interrelationship between consumer behavior and the marketing concept. The study of consumer behavior, which is concerned with the manner in . Marketing and consumer behavior are related because understanding the is going to need a much different marketing strategy than a campaign used to sell.
Chapter 1 introduces the reader to the study of consumer behavior as an interdisciplinary science, the reasons for the development of consumer behavior as an academic discipline and an applied science, and it introduces a simplified model of consumer decision-making. Chapter 2 examines the methodology of consumer research, including the assumptions underlying qualitative and quantitative research approaches. Chapter 3 discusses the process of market segmentation, including the demographic, sociocultural, and psychographic bases for segmenting markets.
Chapter 4 discusses how individuals are motivated. Chapter 5 examines the impact of individual personality characteristics on consumer behavior.
Chapter 6 explores consumer perception. Chapter 7 examines how consumers learn. Chapter 8 discusses consumer attitudes. Chapter 9 concludes Part 2 with an examination of the communications process and consumer persuasion.
Chapter 10 focuses on consumers as members of society, subject to varying external influences on their buying behavior, such as their group and family memberships. Chapter 11 looks at social class.
Chapters 12 and 13 examine the broad cultural and specific subcultural groups to which members of society belong. The importance of cross-cultural consumer research to international marketing is explored in Chapter Describe the interrelationship between consumer behavior as an academic discipline and the marketing concept.
The term consumer behavior refers to the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study of how individuals make consumption-related decisions. The key assumption underlying the marketing concept is that a company must determine the needs and wants of specific target markets, and deliver the desired satisfaction better than the competition.
The marketing concept is based on the premise that a marketer should make what they can sell, instead of trying to sell what they have made. Describe the interrelationship between consumer research, market segmentation and targeting, and the development of the marketing mix for the manufacturer of high definition TV sets.
Consumer research describes the process and tools used to study consumer behavior. Broadly speaking, there are two theoretical perspectives that guide the development of consumer research methodology: Three elements for creating a strategic framework for discovering and analyzing those needs are market segmentation, market targeting, and positioning.
Because most companies have limited resources, few companies can pursue all of the segments identified for the company to pursue. Market targeting is selecting one or more of the segments identified for the company to pursue. Because many companies have adopted the marketing concept, the marketplace is filled with many products and services claiming to satisfy consumer needs.
Positioning is developing a distinct image for the product or service in the mind of the consumer, an image that will differentiate the offering from competing ones and squarely communicate to consumers that the particular product or service will fulfill their needs better than competing brands.
Product, price, place, and promotion are the elements that make up this mix. In answering this question, students need to think about the need or want for a high definition TV set. What segment also has the resources to purchase a high definition TV?
The societal marketing concept requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole. The societal marketing concept advocates a long-term perspective, recognizing that all companies would be better off in a stronger, healthier society, and that companies that incorporate ethical behavior and social responsibility in all of their business dealings attract and maintain loyal consumer support over the long term.
Ethical and socially responsible practices are simply good business, resulting not only in a favorable image, but ultimately in increased sales. Discuss the interrelationships among customer expectations and satisfaction, perceived value, and customer retention. Why is customer retention essential? Customers whose experiences match expectations will be satisfied and customers whose expectations are exceeded will be very satisfied or delighted.
The overall objective of providing value to customers continuously and more effectively than to competition is to have and to retain highly satisfied customers. This is called customer retention.
The purpose of customer retention is to make it the best interest of customers to stay with the company rather than switch to another firm. The reason that customer retention is essential is that in almost all business situations, it is more expensive to win new customers than to keep existing ones.
Discuss the role of social and behavioral sciences in developing the consumer decision-making model. Consumer behavior was a relatively new field of study in the mid- to lates.
Because it had no history or body of research of its own, marketing theorists borrowed heavily from concepts developed in other scientific disciplines. These disciplines were psychology the study of the individualsociology the study of groupssocial psychology the study of how an individual operates in groupsanthropology the influence of society on the individualand economics.
Many early theories concerning consumer behavior were based on economic theory on the notion that individuals act rationally to maximize their benefits satisfactions in the purchase of goods and services. Later research discovered that consumers are just as likely to purchase impulsively and to be influenced not only by family, friends, advertisers, and role models, but also by mood, situation, and emotion.
All of these factors combine to form a comprehensive model of consumer behavior that reflects both the cognitive and emotional aspects of consumer decision-making.
Apply each of the two models depicted in Table i. You may want to incorporate into your answer the experiences that you and your peers have had in selecting cellular communication providers. Students are free to create with this discussion question. Students should, however, observe the differences between the two approaches outlined in Table While using the traditional marketing concept is a useful and correct approach see featuresit does not incorporate modern technology the way the value and retention concept does.
Interactivity is also important to the value and retention model. One way to make this exercise fun is to bring ads from cellular phone services to class. Ask students if they can identify the approaches being used. Next, ask them to change the approach observed to the other approach using information found in Table This will aid students in learning the advantages and disadvantages of both concepts.
What Is the Relationship between Marketing and Consumer Behavior?
How would you apply the concepts of providing value and customer satisfaction and retention to designing and marketing effective online banking? They should especially take notice of the use of information technology, databases, interactive communications, and usage of satisfaction surveys.
Students might also wish to be aware of the introductory remarks to the chapter on the digital revolution and how this revolution might apply to the exercise.
Perceived value is relative and subjective. Citibank would need to develop a value proposition unique selling proposition for its service. What ideas do students have for doing this? Consumers often differ drastically with respect to the degree of satisfaction obtained.
What are the factors that would ensure customer satisfaction with online banking security, speed, accuracy, etc. Lastly, students should carefully analyze customer retention. What types of customers would the bank most like to have? How could the bank retain these customers with their online banking service? Locate two examples e. Thus, the restructured definition of the marketing concept calls on marketers to fulfill the needs of the target audience in ways that improve society as a whole, while fulfilling the objectives of the organization.
A serious deterrent to widespread implementation of the societal marketing concept is the short-term orientation embraced by most business executives in their drive for increased market share and quick profits. Students should be clear as to why examples fit the pro and con approaches.
Open the discussion with a clear definition of what the societal marketing concept is see above. Next, match this concept to the supplied advertisements or articles. Conclude the discussion with comments on the applicability of the concept to modern business.
Apply each of the concepts featured in the section describing the development of the marketing concept to manufacturing and marketing high-definition TVs. Note that if the discussion is to be extended to the societal marketing concept review material is found in Exercise 2 above. Before students make their application have them read Table for additional business views toward the concepts.
The company has a significant presence in the U. Is this form of advertising ethical? Why or why not? CPA professionals do not see themselves as neon sign merchants nor do they believe that the average citizen has complaints with their preparation practices or guarantees.
When does innuendo and appearance become unethical? This should be an interesting issue for the students to discuss. It will also be a good way to introduce the concept of a code of ethics.
See the exercise below for more work on a code of ethics. The company is often cited as an example of how to do things right with respect to relations with customers and the public. The complainants cite lower priced private labels and store brands as illustrations of frustrations with JNJ.
Describe the interrelationship between consumer behavior and the marketing concept | eugeniachew28
The Credo itself can be the discussion in this question. Next, students must carefully think about the scenario that has been presented. How could the company use its commitment to quality as an answer?
- Describe the interrelationship between consumer behavior and the marketing concept
- Consumer Behaviour - chapter 1
- Describe the interrelationship between consumer behaviour and the marketing concept
How could the company comment without disparaging the competition? How can the company focus on value see Table for additional information? Take the two to three best responses and read them in class. An additional aid is to download the JNJ Credo and prepare it as a handout.
Small Group Projects S. Project 3 Who designed the chicken sandwich? Cathy is also known for his unique approach to the fast food business.
Once this is done, decide which of the two concepts displayed in Table most appropriately describe the marketing approach of this company. Be sure to justify your decision. Retention may take longer. By making the attempt, however, students will appreciate the chapter comments more fully.
After the list is complete, the second assignment sounds easy. Students should, however, observe that Chick-fil-A matches both of the two concepts rather well. The astute student will see that Chick-fil-A may still have some way to go with respect to technological application to the business, databases, and customer segmentation. Just because a company emphasizes value does not mean that it fulfills the right-hand side of Table Does any other fast food company do a better job? Project 4 Nike is not just for males.
This shoe giant, as can be seen by Case One and the opening comments to the chapter, has made great strides in market segmentation, customization, and customer relationship development. The result is that Nike is also a premier female shoe company. Your group assignment is split your team and analyze Nike. To do this, one team should review the Nike. The second team should analyze the Nike Goddess Web site at Nike.
The two teams should now match their findings and write a summary report. What has Nike learned about market segments and market targets? How do the two Web sites assist Nike in its marketing efforts? Case One and the opening comments to the chapter supply additional information about the company. If you would like to add additional comparison criteria, feel free to do so.
Be sure to ask students what they have learned about consumer behavior from the Nike Web sites. In nutshell marketing puts the customer in positive frame of mind with respect to the product. Next is the stage for selling. Selling involves showing the product to the targeted and willing customer the product on offer to suit his requirement and overcoming his objections to finally close the deal.
Accrual concept states that expenses and incomes are recognised only for the period they relate not when the actually paid or received. The matching concept is an extension of the accrual concept.
It states that the expenses and incomes incurred in the same accounting period must to match against each other that is revenue recognize for this accounting period must be match against expense recognize for the same accounting period.
What is the consumer behavior explain with suitable examples and a flow chart the concept of Marketing process? Consumer behavior is the study of the way consumers respond to or utilize a particular product.
The analysis of consumer behavior has become mandatory to marketing strategy. I…t enables for manufacturers and merchandisers to better direct marketing to a particular group.