Marketing
Strategy &
Consumer
Behavior
Unit 4
Planning a Marketing
Strategy
A plan that identifies how a company
expects to achieve its goals is known as a
strategy.
o Provides the clearest indication of whether it
understand the marketing concept
The company will begin its planning by
identifying potential customers and
studying their needs.
The Marketing
Concept…
Identifying Customer
Needs
Meeting customer needs are not easy:
o Customers are not sure of their needs or have
conflicting needs
o Customers typically have limited amounts of
money available
o The needs of individuals and groups can be
quite different
Satisfying Customer
Needs
Through marketing research, the business
gathers and analyzes consumer
information.
o It categorizes customers according to
characteristics, needs, and purchasing
behavior
o A group of similar consumers within a larger
market is known as a market segment
After identifying distinct market segments,
the business analyzes each one.
Market Segmentation
Once segments have been identified &
prioritized, the business selects which
ones it will focus its efforts.
o Those segments become the target market
A Target Market is a clearly segment of
the market to which a business
want to appeal.
4 Factors that Define
Target Markets
Geographic: describes a population in
terms of where people live
Demographics: describes a population in
terms of personal characteristics
Psychographics: describes a population
based on social and psychological
characteristics
Behavioral: based on the way customers
use, need, or want a product
Follow a Product—
Target Market Profile
Incorporating the
Marketing Mix
By combining the planning
of product, place, pricing,
and promotion, the
company has the best
opportunity to
develop a
satisfying,
competitive,
and profitable mix
Planning and the
Marketing Mix
Develop Products Distribution Decisions
Special features or Manufacturers
accessories must rely on
Offering services wholesalers and
before or after the retailers
sale
The use of the Order processing,
product product handling,
Additional benefits transportation, and
inventory control
Planning and the
Marketing
Price Products &
Mix
Services Plan Promotion
Most difficult Advertising
Supply and Personal selling
demand Sales promotion
Set objectives Visual display
How is price Publicity
presented to Choices based on
customers? objectives and
audience
Decision
1
• Need Recognition
2
• Search for Information
• Evaluation of
3 Alternatives
4
• Purchase Decision
5
• Assess Satisfaction
The Stages of a
Decision
Stage 1—Recognize
o Consumer recognizes that a need exists
Stage 2—Search
o The consumer becomes interested in finding a
solution
o Leads to identifying products/services that
relate to the need and sources of information
that can help the consumer make an effective
decision
The Stages of a
Decision
Stage 3—Evaluate
o Consumer gathers information and determines
if any one choice seems to be better, more
available, or more affordable than other
choices
Stage 4—Decide
o Consumer is comfortable with the evaluation, a
decision is made
o The decision will be to select one of the
available choices, gather more information, or
do nothing
The Stages of a
Decision
Stage 5—Assess
o Was the choice correct?
o Is the need satisfied?
o If the specific product satisfied the need, then
the decision will likely be repeated
Consumer Behavior
The study of consumers and how they
make decisions is called consumer
behavior
o Includes factors that influence how people
purchase and use products and services
Two types of consumers:
o Final
o Business
Types of Consumers
Final Consumers Business Consumers
Buy products or Buy goods and
services for services to resell or
personal use for use in
producing and
Traditional view of marketing other
a consumer goods or services
Goods for daily
operations
Products Sold to Both
Types of Consumers
Name at least one business consumer use
and one final consumer use for each of the
following items:
o Pencils o Bagels
o Balloons o Pesticide
o Rubber bands o Suitcase
o Radio o Blankets
o Sofa
o All-terrain vehicle
Consumer’s Wants
and Needs
A need is anything that you require to live
o The root of all human behavior
o Rise from a lack of something in the consumer
A want is a culturally defined way to fulfill
that need
o Hungry? You need food,
but you want a pizza
o Thirsty? You need to drink,
but you want a soda
Hierarchy of Needs
Maslow’s hierarchy of
needs illustrates the
progression people
follow in satisfying
needs
Everyone is Different
Marketers must realize that
people are at different levels on
the needs hierarchy
o Some focus on safety needs
while others, on esteem needs
What Motivates
Buyers?
Motivation is the set of positive or negative
factors that direct individual behavior
o Short-term and long-term motivation
Motivation is a major factor in your behavior
as a consumer.
o Buying motives: the reasons that you buy.
Three categories:
o Hedonic motives, rational motives, and patronage
motives
Hedonic Motives
Reasons to purchase based on feelings and
emotions
o Consumers wish to seek pleasure and avoid pain
o Forces of love, affection,
passion, and happiness bring
consumers pleasure
o Consumers want to avoid
emotions such as guilt, fear,
or anxiety
Such emotions often compel consumers to
acquire products that will help attain or avoid
these emotions
Rational Motives
Reasons to buy based on facts or logic
o Saving time or money
o obtaining the highest quality or greatest value
These motives are especially important for
many expensive purchases
o How do you decide to buy a
new computer?
o An automobile?
Patronage Motives
Based on loyalty
o Encourage customers to purchase from a
particular business or to buy a particular brand
Loyalty is influenced by positive previous
experiences or a close identification with
the product or business
Businesses encourage and
cultivate patronage motives so
that customers are less likely to
consider their competitors
