A marketer must have a clear

understanding of his consumer and

their behavior
It is only through under standing
consumer and their behavior

Difference between consumer and

buyer
Consumer

Buyer

Consumer are
purchase of goods and
services for immediate
use of consumption
He is the ultimate user
of product

Buyer is the person

who buys goods either
fot resale / for use in
production / for use of
sumbody else

Consumer and customer

consumer

Consumer is used to
represent situations
where a product can
be directly consumed.

customer
Is a one who purchase
a product/ service
either for his own
consumption/ for
other.
He is a person who
regularly buys a
particular product /
buy regularly from a
particular shop
No need to directly
consumed

 Consumer for food

and drugs but
customer in case of
garments, durables
car etc

Institutional buyer and ultimate

consumers

Consumer behavior/ consumer

buying behavior
Consumer behavior is a study of why
people buy. It is the behavior of the
consumers @ the time of buying/
using goods / services

 In the words of
Walters and Paul,
consumer behavior is
the process whereby
individuals decide
what , when, where,
how and from whom
to purchase goods
and services

Consumer behavior and buyer

behavior
Consumer behavior
Behavior of ultimate
consumers (individual
consumers)
Less rational
Dominant role
It is influenced by
demographic
characteristics such as
age, income,

Buyer behavior
Behavior of industrial
customer
(organizational
customer)
More rational/ sensible
Small roll of emotional
and non-rational
It is influencedNumber
of employees, sale of
volume

Characteristics of consumer
behavior
It is a process
It comprises of both mental and physical
activities
It is the integral part of human behavior
It is very complex and dynamic
It is influenced by internal factors and
external factors
It starts before buying goes even after
buying
It involves both physical and social process

NEED / IMPORTANCE OF STUDY OF

CONSUMER BEHAVIOUR
To formulate effective marketing strategy
Detailed study on upcoming group of consumers is essential for
any firm
The growth of consumer protection movement has created an
urgent need
Consumer tats and preference are ever changing
To framing suitable pricing policies
To select suitable distribution channels
Marketer should first study the needs of consumers and then tri
to satisfy them. (way to win Competition)
Rapid technological advancement compels the marketers study
consumer behavior
To minimize market failures
For effective market segmentation and target marketing

 Study of consumer
behavior is essential
to implement the
marketing concept

Types of consumer
Behaviour

Complex consumer
behavior
Dissonance reducing
buying behavior
Varity seeking buying
behavior
Habitual buying
behavior

BUYING
MOTIVES

A BUYING
MOTIVE IS
THE
REASONS
WHY
BUYERS
BUY

MOTIVE
IT IS NOT A AUTOMATIC
RESPONSE TO A
STIMULAS

Desire to purchase a
chicken biriyani

INSTINCT
PRE-PROGRAMMED
RESPONSES WHICH
ARE INBOURN IN THE
INDIVIDUAL AND ARE
INVOLUNTARY

Hunger

TYPES OF BUYING
MOTIVES

Product and
Patronage motives
Emotional and
rational motives
Inherent and learned
motives
Psychological and
social buying motives

PRODUCT
MOTIVES

It refers to those
influence and reasons
which make the
consumer buy a
certain product in
preference to another
Primary product
motive
Selective product
motives

PATRONAGE
MOTIVE

THESE ARE
THOSE
MOTIVES
WHICH
DETERMINE
WHERE / FROM
WHOME WHOM
PRODECTS ARE
PURCHASED

KEY PATRONAGE
MOTIVES
Price
Location
Quality
Variety
Services
Personality of the
owner and salesmen

EMOTIONAL
MOTIVES

WHEN A
CONSUMER
DECIDES TO
BUY
WITHOUT
MUCH
LOGICAL
THINKING

Romance motives
Affection motives
Social acceptance
motives
Vanity motive
Recreation and
relaxation motives
Curiosity motive
Emulate motives
Comfert and
convenience motive

RATIONAL
MOTIVES

When a
buyer
decides to
Buy after
careful
consideratio
n / logical
thinking,

Monetary gain
Efficiency in operation
and use
Dependability motives

INHARENT MOTIVES

THESE ARE THOSE

WHICH COME FROM
THE PSYCOLOGICAL /
BASIC NEEDS

LEARNED MOTIVES

THESE ARE THOSE

WHICH ARE ACQUIRED
/ LEARNED BY A
CONSUMER FROM
THE ENVIRONMENT
AND EDUCATION

PSYCOLOGICAL BUYING
MOTIVES

SOCIAL BUYING
MOTIVES

ARE THOSE MOTIVES

WHICH ARE DRIVEN BY
INTERNAL
PSYCOLOGICAL
PROCESS LIKE
Learning, perception
and attitude

ARE THOSE MOTIVES

WHICH ARE
INFLUENCED BY THE
SOCIETY IN WHICH
CONSUMERS LIVE

CONSUMER BUYING PROCESS/

CONSUMER DECISION PROCESS

According to
Robinson, Faris
and Wind

1. Recognition of
an unsatisfied
need
2. Identification
of alternatives
3. Evaluation of
alternatives
4. Purchase
decision
5. Post purchase
behavior

FACTORS
INFLUENCING
CONSUMER
BEHAVIOUR

/ BUYING
DECISION /
DETERMINANTS
OF CONSUMER
BEHAVIOUR

 1) PSYCHOLOGICAL
FACTORS
2) CULTURAL FACTORS
FACTORS
3)SOCIAL FACTORS
INFLUENCING
4)PERSONAL FACTORS
CONSUMER
BEHAVIOUR
5)ECONOMIC
/ BUYING
FACTORS
DECISION /
6)ENVIRONMENTAL
DETERMINANTS
FACTORS
OF CONSUMER
BEHAVIOUR

PSYCOLOGICAL
FACTORS

CONSUMER
NEEDS AND
MOTIVATION
S

PSYCOLOGICAL
FACTORS

2.
Perception

PERCEPTION

PERCEPTION

PERCEPTION

2. PERCEPTION
It means how we see the
world surrounding us

PSYCOLOGICAL
FACTORS

3.
Learning
4.
Beliefs
and
attitude
s

II CULTURAL
FACTORS

1.CULTURE
2.SUB-CULTURE
3.SOCIAL
CLASS

III SOCIAL FACTORS

1.REFEREN
CE
GROUP
2.ROLE
AND
STATUS
3.FAMILY

IV PERSONAL
FACTORS

1. AGE
2. FAMILY LIFE CYCLE
3. OCCUPATION AND
ECONOMIC STATUS
4. LIFE STYLE
5. PERSOMALITY
6. SELF-IMAGE

V ECONOMIC FACTORS

PERSONAL
INCOME
FAMILY
INCOME
INCOME
EXPECTATIO
NS
SAVINGS
LIQUDITY
POSITION
CONSUMER
CREDIT

VI ENVIRONMENTAL FACTORS

POLITICAL
SITUATION
LEGAL FORCES
TECHNOLOGICAL
ADVANCEMENT
ETHICAL
CONSIDERATION
S

CONSUMER DELIGHT

4 Cs To satisfy customer
CUSTOMER
VALUE/CUSTOMER
SOLUTION
COST
CONVINIENCE
COMMUNICATION

MARKET SEGMENTATION IS THE PROCESS OF

DIVIDING A MARKET INTO DIFFERENT GROUPS OF
CONSUMERS HAVING SIMILAR NEEDS /
CHERACTERISTICS

MARKET SEGMENT

IT IS A MEANING FUL
GROUPING OF
BUYERS HAVING
SIMILAR WANTS AND
CHARECTERISTICS.

MARKET SEGMENTATION
PROCESS
Establish overall
strategy/ objective
Decide the basis for
segmenting market
Select segmentation
variable
Profile the segment
Evaluate segment
attractiveness
Select segments/
target market

OBJECTIVES OF
SEGMENTATION

To understand the needs,

Wants, desires, buying habits
of consumers
To formulate marketing
programme for each
consumer group according to
their nature
To develop new products
according to consumers
changing needs
To expand market and market
share
To provide satisfaction to
consumers
To make the marketing
policies and strategies
consumer oriented

MARKET
SEGMENTATION

PRODUCT
DIFFERENTIATION

Consumer oriented
Focus on grouping of
customers
Attempt to match the
supply with demand
Aims at increasing
sales

Product oriented
Focus on product
differences to attract
buyers
Attempt to match the
demand with supply
Aims at facing intense
competition
-large market

Concentrates on
limited market
It helps to increase
sales

It helps to win the

competition

CRITERIA FOR
SUCCESSFUL
SEGMENTATION
HOMOGENEITY

MEASURABILIT
Y
SUBSTANTIABI
LITY
ACCESSIBILITY
PROFITABILITY
RESPONSIVEN
ESS
GROWTH
POTENTIAL

NEED/ IMPORTENCE/
ADVANTAGES/
BENEFITS OF MARKET
SEGMENTATION

ADVANTAGES TO FIRM
Increase sales volume
To prepare effective
marketing plan
Enable to take decisions
To understand the needs
of consumers
Helps to win competition
Make best use of
resources
Achieves marketing
goals
Expand markets
Specialized marketing
Creates innovations
Higher market share

ADVANTAGES TO
CONSUMERS

Consumer
oriented
Quality
product
@reasonable
price
Other
benefits

REASONS FOR THE DEVELOPMENT OF MARKET SEGMENTATION

Customer oriented market

Rapid change in technology
Adoption of cost reducing
technique
Implementation of market
programmed and marketing
mix
Introduction for new product
Cut-throat competition in
the market

PATTERNS OF SEGMENTATION / SEGMENTATION

STRATEGIES / MARKET COVERAGE

Undifferentia
ted
marketing
Differentiate
d marketing
Concentrated
marketing
Customized /
Personalized
marketing

METHODS / BASES OF MARKET SEGMENTATION

METHODS / BASES
OF MARKET
SEGMENTATION

DEMOGRAPHIC
SEGMENTATION
PSYCHOGRAPHI
C
SEGMENTATION
GEOGRAPHIC
SEGMENTATION
BEHAVIOURAL
SEGMENTATION

METHODS / BASES
OF MARKET
SEGMENTATION

1 DEMOGRAPHIC
SEGMENTATION
a) Age
b)Gender
c) Family life cycle
d)Religion
e) Income
f) Occupation
g)Family size
h)education

GEOGRAPHIC
SEGMENTATION

a)Area
b)Climate
c)Populatio
n density

3.
BEHAVIOURAL SEGMENTATION
a) Attitude
b) Product
segmentation
c) Occasion
segmentation
d) Benefit
segmentation
e) Volume
segmentation
f) Loyalty
segmentation

PSYCHOGRAPHIC
SEGMENTATION
A) Life style
B) Personalit
y
C) Social
class

High cost of
LIMITATIONS
production OF MARKET
SEGMENTATIONS
Heavy Advertising
expenses
More working capital
and storage
expenses
Administration
expenses
Choosing
appropriate
segmentation base is
not easy
Difficult to get skilled
and experienced
marketing
researchers for
measuring

A TARGET MARKET IS GROUP OF

CUSTOMERS @WHOME THE ENTIRE
MARKETING EFFERTS ARE DIRECTED
SEGMENTATION IS THE 1ST STEP IN TARGET
MARKETING

APPROACHES FOR SELECTING TARGET

MARKETS / TARGET MARKETING STARATAGIES

Total market
approaches
Concentratio
n approach
Multisegment
approach

ADVANTAGES OF TARGET CUSTOMERS

HELPS TO USE MARKETING
OPPORTUNITIES
TO DEVELOP LOYAL
CUSTOMERS
HELPS TO EXPAND THE
MARKET SHARE
POSIBLE TO BUILD UP
COMPANY IMAGE
IT SUTABLE IN CASE OF
SERVICES
A FIRM CAN NOT GO THE
ENTIRE MARKET, IT CAN
PUT ALL OF ITS EFFORTS
ON ONE OR MORE
SEGMENTS SELECTED

STEPS IN TARGET
MARKETING

Market segmentation
Market targeting
Design the marketing
mix
Product positioning

PRODUCT POSITIONING
The act of creating an image about a
product /brand in the consumers` mind is
know as positioning
Term 1st introduced by Al Ries and Jack
Trout
Kotler- positioning is the act of designing
the company`s offer and image so that it
occupies a distinct and valued place in the
target consumers` minds

STEPS IN PRODUCT POSITIONING

1) IDENTIFYING POTENTIAL
COMPETITIVE ADVANTAGES
2) IDENTIFING THE CONSUMERS
POSITIONS
3) CHOOSING THE RIGHT COMPETITIVE
ADVANTAGES
4) COMMUNICATING THE COMPETITIVE
ADVANTAGES
5) MONITORING THE POSITIONING
STRATEGY

ELEMENTS OF POSITIONING

The
The
The
The

product
company
competitors
consumer

TECHNIQUE OF PRODUCT POSITIONING /

STRATEGIES OF PRODUCT POSITIONING /
APPROCHES TO PRODUCT POSITIONING
POSITIONING BY CORPORATE IDENTITY
BRAND ENDORSEMENT
PRODUCT ATTRIBUTES AND BENEFITS
USE, OCCATION, AND TIME
PRICE AND QUALITY
PRODUCT CATEGORY
PRODUCT USER
COMPETITOR
SYMBOLS

PRODUCT
POSITIONING
Art of place in mind
Product differentiation
is important and
necessary
It is not done
well..
It is based on product
features, benefits /
needs, specific usage
occasions, competitors
product

MARKET
SEGMENTATION
Grouping of customers
It has no relation with
market segmentation
The purpose of market
seg. Will be defeated
It must be considered
cost of product,
administrative cost,
promotion cost etc

Repositioning