Transcript The consumer market

Chapter 5
Understanding the
Consumer Market
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–1
The consumer market
• Ultimate consumers who buy
goods and services for their own
personal or household use.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–2
Population
• People constitute a market.
• Marketers analyse the population
and its geographic and
demographic distribution as the
first steps to understanding the
consumer market.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–3
The consumer market
Geographic distribution—frequently
divided into rural, urban and suburban.
Demographics—the vital statistics that
describe a population. In particular:
–
Age.
– Gender.
– Family life cycle.
–
Education.
– Income
distribution.
– Ethnicity.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–4
Relevance of
consumer demographics
• Infant market (0–4 yrs).
• Child market (5–12 yrs).
• Teenage market (13–16 & 17–20).
• Young adult/Young family market
(21–39).
• Middle-aged market (40–55).
• Mature-age market (55–65).
• Over 65s.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–5
Family life cycle
• Family life cycle will determine the
•
•
•
•
•
purchase behaviour of individuals and their
reason for purchasing.
Single parent and two-parent families.
Young couples with no children.
Family (usually 2 adults, 2 young children).
Family with teenagers.
Multicultural (or mixed) family.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–6
Consumers go through a five-stage
buying decision process
•
•
Stage 1—Need recognition, when an unsatisfied need
(motive) creates tension or discomfort in the consumer.
Stage 2—Identification of alternatives, including both
products and brands.
• Stage 3—Evaluation of alternatives, including
•
establishing criteria by which to make the evaluation.
Stage 4—Purchase decision, which is actually a series of
decisions, including the actual purchase.
• Stage 5—Post-purchase behaviour, or cognitive
dissonance.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–7
Social influences
• Culture.
• Changing gender roles.
• Social class.
• Reference groups.
• Families and other households.
– Core values, attitudes and beliefs.
– The family as a buying unit.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–8
Psychological influences
• Buying motives:
–
Buyer recognises motives for purchase.
– Buyer aware of reason for purchase but
does not admit it to themselves.
– Buyer does not know the real motivating
factor.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–9
Motivation
• Behaviour is stimulated by a need.
• Motives trigger behaviour to satisfy need.
• Two broad categories of motivation:
1 Biogenic needs (need for food and bodily comfort).
2 Psychogenic needs (need for affection and selfrespect).
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–10
Maslow’s hierarchy of needs
SELF-ACTUALISATION
Need for self-fulfilment
ESTEEM
Needs for self-respect,
reputation, prestige and status
BELONGING AND LOVE
Needs for affection, belonging
to a group, and acceptance
SAFETY
Needs for security, protection and order
PHYSIOLOGICAL
Needs for food, drink, sex and shelter
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–11
Perception
Perception: the process whereby we receive
stimuli (information) through our five senses, we
recognise this information and we then assign a
meaning to it.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–12
Perception
•
The limitations to perception are due to our selective
approach to stimuli:
– Selective exposure. We perceive only part of what we
are exposed to.
– Selective distortion. We alter stimuli based on our
attitudes and beliefs.
– Selective retention. We retain only part of what we
selectively perceive.
– Selective action. We act upon part of what we retain.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–13
Learning
• Learning. Changes in behaviour resulting from
observation and previous experience.
• Learning occurs when a person:
– Responds to stimuli.
– Is rewarded for the correct response.
– Is penalised for the incorrect response.
– Repeats a response.
– Forms a habitual response.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–14
Attitudes and beliefs
• Attitude. A person’s enduring tendency to
evaluate, feel about or act in relation to some
object or idea.
• Attitudes are formed by the information
individuals acquire through their learning
experiences and influenced by personality traits.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–15
Situational influences
Temporary forces associated with the immediate
purchase environment that affect behaviour.
•
When consumers buy—the time influence (day, week,
season).
•
Where consumers buy—the place where a decision is
made (home, point of purchase).
•
How consumers buy—the way in which consumers
buy (bulk etc.).
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
5–16