Transcript The Consumer

THE CONSUMER
Part 1:
Needs & Wants, Consumer Demand, Product Life Cycles
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The Consumer
A consumer is the person who uses
the product.
A customer is the person who buys
the product.
• Wouldn’t this be the same person?
Some examples when they are
not?
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The Consumer
In the case of a parent or guardian of
a child, the parent is considered a
gatekeeper—a person who oversees
the care of another.
• Marketers attempt to appeal to
the gatekeeper as well as the
consumer. Why?
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•Who is the Customer?
•Who is the Consumer?
• Who is the Gatekeeper?
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Another Scenario: Customer vs Consumer
Who is the
Customer?
the he fit in
Where
does
Who
is this?
PRODUCT
“the Marketing Mix”?
(Derrick Rose)
Customer
the Fans...
...and...the
Consumer is...
(consumers)
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Consumer Behaviour
Consumer behaviour is based on how the marketing mix interacts
with the psychology of the Buyer. Buyer psychology includes their
own culture, attitude, previous learning, and personal perceptions.
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It all comes down to:
Needs and Wants
self-actualization/fulfillment
esteem
belonging
safety
physiological
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Maslow’s Heirarchy of Needs
Needs and Wants
In our society, most people do not
have difficulty satisfying needs.
Wants are items not necessary
for survival, but add pleasure and
comfort to our lives.
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Needs and Wants
In places with poverty, war, or
oppression basic needs may
not be met. Marketing focuses
on meeting needs.
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Needs and Wants
In developed countries,
demand is more driven by
wants. Marketing presents
alternatives, and helps
customers set up value
equations for each.
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Consumer Demand
Consumer demand changes
based on economic shifts and
availability of new products.
economy is
is in
stable
economy
a slump
unemployment
unemployment
down
up
demandfor
forgoods
goods&and
services
UP
demand
services
DOWN
people
buy
things
they
want
people
willwill
only
buy
things
they
need
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Consumer Demand
Demand also changes based on wants,
needs, or changes in perceived value.
Marketers need to make decisions
based on:
• educated guess, research, historic
trends
Former Marketing Market Guru
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Consumer Demand
Demand changes as retailers
enter/exit the marketplace.
• Too many sellers of a product = 
demand
• As some close, less product available
=  demand
Misreading a market
can mean disaster >
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Humour Break
Actual Consumer labels
> On a Sears hairdryer: Do not use while sleeping.
> On a bag of Fritos: You could be a winner! No purchase necessary.
Details inside.
> On a bar of Dial soap: Directions: Use like regular soap.
> On Boot's children's cough medicine: "Do not drive a car or operate
machinery after taking this medication."
> On Nytol sleep aid: Warning: May cause drowsiness.
> On an Airline packet of peanuts: "Instructions: Open packet, eat nuts."
> On a child's Superman costume: "Wearing of this garment does not
enable you to fly.“
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Consumer Demand
Understanding fluctuations in consumer
demand is essential to marketing. Because
of this, marketers also use
product life-cycle models
to predict the life of new products.
• no product can be in demand forever
see http://www.crazyfads.com/
• trends, technology and lifestyles change,
affect consumer demand
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The traditional PLC consists of four stages
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Nontraditional Product
Life Cycles
These include: Fads, Trends,
Niche Markets, and Seasonal
Markets.
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Nontraditional Product Life Cycles
Fads
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Nontraditional Product Life Cycles
Fads
A product which is extremely
popular for a very brief period of
time, and loses popularity just as
quickly.
Rubik’s cube, Cabbage Patch Kids,
tamagotchi, Pet rock…(you researched this already)
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Nontraditional Product Life Cycles
Fads
Fads are unpredictable, and highrisk. Companies try to get out of
the market just as the fad peaks.
If they wait too long, they get
stuck with excess inventory.
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Nontraditional Product Life Cycles
Trends
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Nontraditional Product Life Cycles
Trends
A trend has a more lasting effect on
the market than a fad. A trend is
usually a movement towards a style of
product.
Organic foods, Beanie babies, the
Simpsons, cell phones
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Nontraditional Product Life Cycles
Niche Markets
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Nontraditional Product Life Cycles
Niche Markets
A small section of the market dominated
by a small group of products that meet
real, but unique needs and wants.
Short growth, level maturity, limited
competition.
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Great Niche Market Entrepreneurs:
Alex Tew: The Million Dollar Homepage.
This website was conceived in 2005 by Alex Tew, a college student from Wiltshire, England. The
purpose of the website was to raise money for his college education. The home page consists of a
million pixels arranged in a 1000 × 1000 pixel grid; the image-based links on it were sold for $1 per
pixel in 10 × 10 blocks.
Alex’s ultimate goal was to sell all of the pixels in the image, thus generating a million dollars of
income. He achieved that goal on January 11, 2006, when the final 1000 pixels were put up for
auction on eBay. http://www.milliondollarhomepage.com
Marla Cilley: FlyLady
Who knew being a professional nag could be so profitable? Marla Cilley, “FlyLady” makes millions
by nagging her approximately 550,000 e-mail subscribers known as “Flybabies”, to do things such
as get up and get dressed for work, polish their sink, get their nails done, cook dinner and yes…go
to bed! In 2010, sales of Marla’s nag business reached 4 million. Marla’s website: http://flylady.net
Sami Bayrakci: SomethingStore
Do you like surprises? SomethingStore is a website launched in October 2007, that will send you
“something”, randomly selected from thousands of products in their diverse inventory, for $10 (free
shipping in the US), and you will discover what your something is when you receive it.
http://www.somethingstore.com
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Nontraditional Product Life Cycles
Seasonal Markets
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Nontraditional Product Life Cycles
Seasonal Markets
Consumer demand changes and is
effected by the weather. Marketers
anticipate periods of high and low
demand, and work to create offseason opportunities.
Ice cream parlours, resorts, lawn mowers,
snow shovels, ice skates
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Joke Break
TEACHER: Why are you late?
WEBSTER: Because of the sign.
TEACHER: What sign?
WEBSTER: The one that says, "School
Ahead, Go Slow."
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Another Joke Break
Why don't cats play poker in
the jungle?
Too many cheetahs
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ACTIVITY
My Fives
At your tables, try to identify five
specific products which follow each of
the non-traditional PLCs. (The ones
presented in class do not count!)
PRIZES FOR
BEST TABLE!
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ASSIGNMENT (for Marks)
Part 1:
Needs & Wants, Consumer Demand, Product Life Cycles
a) Go to the Course Web page, Unit 2 and copy the questions
for this PPT into a blank Word file. Transfer your own
answers under each question, put your name at the top of
the file.
b) Add the notes from the “My Fives” Activity to the end of
the above questions/answers.
c) For a mark, save your completed file using the following
file name: FirstName_Lastname_Consumer_P1.doc
d) Drag the file into the correct folder (by day and period)
into the Drop-Off>ROBINSON folder.
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