Transcript Hugo van Zyl

Consumer behavior
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Hugo van Zyl
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Representative – SA Druggist, Knoll, Roche
Product and Brand Manager - Roche
Senior Marketing and Sales Manager – AstraZeneca
General Manager – Bausch & Lomb
• Director – Knowledge Warehouse
• Managing Director – Hugo van Zyl & Associates
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Housekeeping
• Cell phones switched off.
• Being on time is a matter of choice
• Lecture structure
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10min – Quiz on previous week’s lecture
50min lecture
10min break
50min lecture
(Points to count for semester mark)
• Text book – Customer behavior – SAF perspective
– Cant, Brink, Brijball
• Juta
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Lecture program
Week
Chapter - topic
16th July
Chapter 1 – Introduction, Chapter 2 – Creating market value for customers
23rd July
Chapter 3 – Market characteristics, Chapter 4 – Culture / Subculture
30th July
Chapter 5 – Reference groups and social class, Chapter 6 Personal characteristics
6th Aug
Break
13th Aug
Chapter 7 – Customer perception and Learning, Chapter 8 – Customer motivation
20th Aug
Chapter 9 – Customer attitudes, Chapter 10 – Personality and Self concept
27th Aug
Test week, Chapters 1-7
3rd Sept
Chapter 11 - Market segmentation, Chapter 12 – Decision making process
10th Sept
Chapter 13 – Family decision making, Chapter 14 – Organizational Buying behavior
17th Sept
Chapter 15 – Customer loyalty, Chapter 16 – Building relationship with customers
24th Sept
Chapter 27 – E commerce
1st Oct
Revision
8th Oct
Revision
15th Oct
Revision
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Introduction
Creating Value for customers
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Defining Customer behavior
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Importance of customer behavior
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Application of this knowledge
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Role of CB in Marketing Strategy
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Component of Market analysis
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Market segmentation
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Marketing Strategy
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Customer decisions
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Outcomes
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Nature of Customer behavior
Hugo van Zyl
083 629-2069
[email protected]
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Marketing 1B
Consumer behavior
Definition of value
Measuring value
Marketing implications
Customer behavior
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
• Definition
– Study of Groups, individuals and organizations and the processes they
use to select, secure, use and dispose of products, services,
experiences or ideas to satisfy needs and the impact these processes
have on the consumer and society. – Hawkins et al
• Types of Customers
– Consumers – end user
– Business customers – Plays a role in the end purchase
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
• Three roles of Customers
– Selector
– Payer
– Consumer
• Levels of Activities
– Mental – Cognitive process involved in selecting info and making
decisions
– Physical – Visiting the shop, picking up a brochure, asking your friends
for advice
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Importance of Customer Behavior
• Customer Retention
– Satisfaction of the customers needs over a long period to ensure
customer loyalty and retention
• “Marketing Concept”
– Product orientation
– Sales orientation
– Marketing orientation
• Needs of society
– Triple bottom line accounting
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Application of this knowledge
• Marketing Strategy
– Differentiation from Competition / Alternatives
– Customer value = Benefit > Cost involved
– By Satisfying the correct needs we add value
Market
analysis
Market
Segmentation
•Environment
(Macro)
•Demographic
•Organizatio
n (Micro)
•Customers
•Sociegraphic
•Psychographic
s
•Competitors
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Marketing
Strategy
Outcomes
Customer
decisions
Customer behavior
Components of Market analysis
• Customers
– The be able to re-act to customer needs we need to understand them
first
– Market research, Focus groups etc.
• The Organization
– Understanding its own capabilities
– SWOT analysis
• Competitors
– Due to fast changing marketplace
– SWOT of Competitors
• Environment
– Macro (External) factors that can influence
– PESTLE analysis
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Market Segmentation
• Definition – Part of a larger market, and is made up of groups or individuals whose
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needs and wants are very similar.
Must be measurable
Must be large enough
Must be accessible
Must be actionable
Must be differentiable
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Market targeting – Selecting and focusing on a specific section of the total market
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Positioning – The competitive advantage that the organization will aim to achieve.
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Price, exclusivity, Geographic position etc.
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Benefits of Segmentation
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Focus all efforts on customer need satisfaction
Identifies un-explored markets
Clarifies needs for different or separate market offerings
Guides the allocation of marketing resources
Disadvantages of Segmentation
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Process is expensive
Limited coverage achieved – validity of segmentation data…..
Excessive market offerings or product variations is dangerous and costly
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Marketing Strategy
• Product
– Customer buys the physical material or service and the “need” satisfaction that
accompanies it.
– Balance the benefit of one size fits all to customization in order to satisfy needs.
• Promotion
– Advertising, Selling, Sales promo, PR, Direct selling, Sponsorship
– All in essence various forms of communication.
• Price
– The money that the customer is “happy” to exchange for the product
– Not the cost of the product – this is more intangible
• Place
– Right product, at the right place at the right time.
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Customer decisions
• Need awareness
– Recognize that you need something - hunger
• Info search
– Gather info on what will satisfy the need – Menu of Mr. Delivery
• Evaluate alternatives
– Way up the positives and negatives of various solutions – Feel like pizza or
Burger?
• Purchase decision
– Decide on a solution based on perceived risk – how much money is sushi going
to cost?
• Post purchase evaluation
– I shouldn’t have had that second burger now I will have to go to Gym twice…
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Outcomes
• Organizational outcomes
– Product position
– Sales
– Customer satisfaction
• Individual outcomes
– Need satisfaction
• Societal outcomes
– Economic outcomes
– Environmental outcomes
Hugo van Zyl
083 629-2069
[email protected]
Marketing 1B
Consumer behavior
Customer behavior
Nature of Customer behavior
External
influenc
es
Market
Characteristic
s
Custome
r
Internal
influenc
es
Hugo van Zyl
083 629-2069
[email protected]
Personal
characteristi
cs
Marketing 1B
Consumer behavior
Decision
making