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ADPRAC 3

Consumer Behavior and Marketing Research

Adrienne A. Zacarias, M.S.


BFA Major in Advertising Arts M.S. Major in Advertising

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ADPRAC 3
Consumer Behavior & Marketing Research 3 units 3 hours a week (lecture) 4th absence FA (2 late=1 absence) Attendance checked first 15 minutes of 1st hour. Beyond first hour, considered absent NOTEBOOK required

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Teaching Methods
Lecture Demonstration Class discussions Individual and Group Activities Research Actual production

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GRADING SYSTEM
Attendance Exercises & Quizzes Prelim Requirement Final Requirement T OTAL 10% 50% 20% 20% 100%

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R-E-S-P-E-C-T
Respect yourself and others will respect you. Confucius

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McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1

Introduction to Consumer Behavior and Marketing Strategy

McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Why do we need to study consumer behavior?


marketing strategy

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Three Elements for Marketing Strategy

Introduction
The marketing concept suggests an organization should satisfy consumer needs and wants in order to make a profit
Need to understand customers Must stay close to customers

Past problems with marketing concept


The concept was not implemented in the entire organization and viewed more as a marketing task
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Introduction cont.
Shift of focus to better serve consumers for three major reasons
Dramatic success of Japanese companies
Focus on providing consumers value-laden products Superior quality and lower prices of Japanese products Increased consumer interest in world markets

Dramatic increase in the quality of consumer and marketing research


Use of technology to identify and know customers personally Ability to track consumer reactions
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Introduction cont.
Shift of focus to better serve consumers for three major reasons
Development of the Internet as a marketing tool
E-marketing potential Increased importance of consumer behavior research Ability to conduct marketing research studies

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What is Consumer Behavior?

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What is Consumer Behavior?


The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives Involves:
thoughts and feelings people experience actions they perform in the consumption processes
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What is Consumer Behavior? cont.


Includes all things in the environment that influence thoughts, feelings, and actions
Comments from other consumers Advertisements Price information Packaging Product appearance etc.

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Consumer Behavior
Is Dynamic

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Consumer Behavior is Dynamic


Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing Requires ongoing consumer research and analysis of important trends Makes development of marketing strategies difficult and exciting
Shorter product life-cycle increases importance of constant innovation

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www.idea-sandbox.com

Product Life Cycle

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Consumer Behavior
Involves Interactions & Exchanges

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Consumer Behavior Involves Interactions


Interaction among peoples thinking, feelings and actions, and the environment Marketers need to understand
What products and brands mean to consumers What consumers must do to purchase and use them What influences shopping, purchase, and consumption

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Consumer Behavior Involves Exchanges


Exchange between people involves giving up of something of value and receiving something in return Role of marketing in society is to help create exchanges by formulating and implementing marketing strategies

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Major Approaches
To Consumer Behavior

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Approaches to the Study of Consumer Behavior

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Major Approaches to Studying Consumer Behavior


Interpretive
Based on theories and methods from cultural anthropology Objective is to understand consumption and its meanings Methods of study involve
Long interviews Focus groups

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Major Approaches to Studying Consumer Behavior cont.


Traditional
Based on theories and methods from cognitive, social, and behavioral psychology, and sociology Objective is to develop theories and methods to explain consumer decision making and behavior Methods of study involve
Experiments Surveys

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Major Approaches to Studying Consumer Behavior cont.


Marketing science
Based on theories and methods from economics and statistics Objective is to develop and test mathematical models to predict the impact of marketing strategies on consumer choice and behavior This method of study has become popular in the consumer packaged goods industry since it can handle large scanner data sets

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Uses of Consumer Behavior

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Uses of Consumer Behavior Research


Three groups use knowledge about consumer behavior and consumer behavior research
1. Marketing organizations
Businesses attempting to sell products Organizations that seek exchanges with consumers

2. Government and political organizations


Major concern is monitoring and regulating exchanges between marketing organizations and consumers

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Uses of Consumer Behavior Research cont.


Three groups use knowledge about consumer behavior and consumer behavior research
3. Consumers
Includes consumers and organizational buyers who exchange resources for various goods and services Interest in making exchanges that help them achieve their goals and the understanding of their own behavior

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Consumer Behaviors Role in Marketing Strategy


Marketing strategy
Design, implementation, and control of a plan to influence exchanges to achieve organizational objectives In consumer markets, manufacturers, retail stores, catalog retailers, e-tailers and other direct marketers
Increase chances of favorable thoughts and feelings of particular products, services and brands among consumers Increase chances of trial and purchase
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Consumer Behaviors Role in Marketing Strategy cont.


Marketing strategy
Developed by companies that make funds available for purchase to
Increase chances of usage of services offered by consumers

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Consumer Behaviors Role in Marketing Strategy cont.


Marketing strategies involve developing and presenting marketing stimuli directed at selected target markets to influence
What they think How they feel What they do

Essence of marketing strategy is to understand markets, develop and implement superior strategies to attract and hold them profitably
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Consumer Behaviors Role in Marketing Strategy cont.


Powerful force on consumers and society at large
The power of marketing and the ability of consumer research and analysis to yield insight into consumer behavior should not be discounted or misused

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Summary
The marketing concept was defined and past problems were discussed The aspects of consumer behavior were presented Three major approaches to consumer behavior research were exhibited The groups that use knowledge about consumer behavior and research were identified The role of consumer behavior in a marketing strategy was discussed
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www.themarketingstudent.com

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Baby Boomers The Baby Boomer generation are those born between 1947 and 1963. Gen X The members of Gen X, the children of the Baby Boomers, are those born between 1964 and 1984 Gen Y The newest generation, Gen Y, is made up of those born between 1985 and 2005.

www.suite101.com

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A Look At How Gen Y Communicates


by David Fallarme

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Boomers

Boomers had it pretty simple back in their youth. Want to connect with your friends? Write them a letter, give them a call or go and see them.

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Gen X

Gen X-ers had a little more fun. They couldve emailed each other over 28.8 or used their pagers to send 1-sentence messages back and forth.

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Gen Y

To an outsider, it can be a confusing to understand how Gen Y uses those channels just to talk to each other. After all, Boomers just had three channels and they made friends just fine.

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Branded: A Day In The Life of Gen Y


by David Fallarme
The author was very intrigued at letting brands tell the story of your life. Heres what a random day in my life looks like, told through the eyes of brands:

0900. Good morning, Dave.

0930. The costume

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1047. Rise and shine

1105. Whats going on in the world?

1247. Lets do lunch

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1442. Youre on

1807. Refuel and reconnect

2028. Productivity

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2345. Y halo thar, internets!

0108. Power down

Its amazing at how much of your daily life is comprised of interacting with or talking about brandsand how you become self-conscious of publicly associating yourself with certain brands.

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Make your own brand timeline


1. Good Morning, ______________. 2. The Costume 3. Rise and Shine 4. Whats Going on in the World? 5. Lets Do Lunch! 6. Youre on 7. Refuel and Reconnect 8. Productivity 9. Y, Halo Thar Internets! 10.Power Down
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