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Chapter 2:
Consumer Behavior & theMarketing Manager
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Managerial Application Areas
of Consumer Behavior:
Product ositioning and Product
Differentiation
nvironmental Analysis
Market esearch
Marketing- ix Development
egmentation of the Marketplace
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Product PositioningInfluencing how consumers perceive a
brands characteristics relative to those of
competitive offerings
Goal: influence demand by creating a
product with specific characteristics and a
clear image
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Product Differentiation
Consumers perceive meaningful differences
between a brand and its competitors
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Specific Positioning
Market Leaders
No mention of competitors
Competitive Positioning
Non-market leaders
Positioned in relation to market leader
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Perceptual Map
Simple Preparation
Involved Preparation
Healthy Unhealthy
Beef
Pork
Tuna
Chicken
Turkey
Fresh Fish
Bacon
Hot Dogs
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Environmental Analysis
The assessment of
the external forces
that act upon thefirm and its
customers, and that
create threats and
opportunities
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Components of the External
Environment
Demographic
Economic
Natural
Technological
Political
Cultural
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Demographics
The study of population changes and
subcultural values of various demographic
groups based on such factors as age, sex,
income, education, ethnicity, and geography
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Economic Environment Three Major Contributions of Behavioral
Economists:
Consumer sector of the economy canstrongly influence the course of the
aggregate economy Factors that influence the decision of
families to buy or save
Methodology for making predictions ofaggregate economic activities based uponconsumer surveys
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Natural Environment
Raw materials available
Pollution
Disease
Expansion of desert
regions around the globe
Weather phenomena
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Political Environment
Laws, regulations impact consumers.
Politically important national or internationaldevelopments.
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Cultural Environment
Customs
Values
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MARKET RESEARCH
Applied consumer research
Designed to provide management with
information about consumer behavior
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Product
Promotion
Pricing
Distribution
Marketing-Mix Development
The development and coordination ofactivities involving the:
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New Product Development Idea generation
Concept testing
Product development
Market testing
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Advertising and Personal
Selling Implications
Sales Promotion
Applications
Public Relations
Promotional Strategy
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Price Changes How will consumers react when companies
raise or lower the price of a product?
Principles of perception can be applied toanalyze if consumers will notice a
difference in price and if so, what effect it
has
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Product Distribution
Impacted by
understanding how
consumers make
their purchasing
decisions
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Market Segmentation
Subdividing the market
into distinct subsets of
customers
Similar needs and wants
Reached with a different
marketing mix
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Four Classifications of
Segmentation Variables:
Characteristics of the Person
Situation Geography
Culture and Subculture
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Characteristics of the Person Demographic Characteristics
Behavioral Segmentation
Benefit Segmentation
Usage Behavior
Psychographic and Personality
Characteristics
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Consumer Situations
Temporary environmental factors
Form the context within which a consumer
activity occurs
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Geographic Segmentation
Region
Census blocks
Size of cities and counties
Population density
Climate
Geodemographics: thecombination of geography
and demographics
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Culture and Subculture
Culture is the way of life of the people of a
society
Subculture is a subdivision of a national
culture and is based on some unifying
characteristic, such as social status ornationality
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Segmenting Industrial MarketsDifferent segmenting
variables are used to
classify companiesinto segments
including the North
American Industry
Classification System(NAICS).
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Solving Managerial Problems
. . . is a four-step process:
1. Gather information and identify the
problem/opportunity
2. Identify the relevant consumer behavior
concepts and how they apply to the
problem
3. Develop a managerial strategy
4. Summarize the managerial
recommendations