Consumer Behavior

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					Principles of Marketing
The Course Objectives
       Module 1 (Day 1)
         • Marketing Definition
             • STP, Principle of Real World Mktg.
       Module 2 (Day 2 & 3)
         • Marketing Tools
             • From Online Marketing to Direct Marketing
       Module 3 (Day 4)
         • Marketing Program – Workshop
             • Learn How To Design a Marketing Program
         Today’s Objectives

   What is marketing?
   STP
   The Marketing Mix
   Principles of real world marketing
   Exercise
         What is Marketing?
   It is not just “selling and advertising”; It is the process
    by which companies create value for customers and
    build strong customer relationships in order to
    capture value from customers in return.

   “The Whole Firm Taken From A Customer
    Perspective” Peter Drucker

     What Marketing Does?
 Reach customers
 Motivate Them To Buy

 Use

 AND REBUY The product
   What Marketers Do?

    Reach customers
    Motivate Them To Buy

    Use

    AND REBUY The product

Marketers Should March To The Drums Of
             The Customers
          STP (Segmentation, Targeting
1. Identify bases       Target marketing
   for segmenting                          Market positioning
   the market.        3. Develop measure
                         of segment        5. Develop
2. Develop               attractiveness    positioning
   segment profiles                        (differentiation) for
                      4. Select target     target segments.
                                           6. Develop a
                                           marketing mix for
                                           each segment.
1. Market segmentation

   Dividing a market into smaller groups
    of buyers distinct needs,
    characteristics, or behavior who might
    require separate products or
    marketing mixes
Market segmentation
   Buyers differ in
      Wants
      Resources
      Locations
      Buying attitudes
      Buying practices
   Through market segmentation,
    companies divide large, heterogeneous
    (different) markets into smaller segments
    that can be reached more efficiently and
    effectively with products and services that
    match their unique needs
Geographic segmentation

 Dividing a market into different
  geographical units such as nations,
  states, regions, counties, cities or
 Al-wasset classifieds (maadi)
Demographic segmentation
 Dividing the market into groups based
  on demographic variables such as age,
  gender, family size, family life cycle,
  income, occupation, education, religion,
  race and nationality
 Most popular because our needs, wants
  and usage rates depend on the
Age and life cycle
 Dividing a market into different age and
  life cycle groups
 Kids (corn flakes), adults, magazines
  (teen stuff)
Gender segmentation
 Dividing a market into different
  groups based on gender
 Clothing, cosmetics, perfumes
    Income segmentation

 Dividing the market into different
  income groups
 Cars, financial services
   Dividing a market into different groups
    based on social class, lifestyle or
    personality characteristics
Behavioral segmentation
 Dividing  a market into groups
  based on consumer knowledge,
  attitude, use, or response to a
 Occasion segmentation
           the market into groups
   Dividing
   according to occasions when
   buyers get the idea to buy
 Behavioral segmentation
 Benefit   sought segmentation
   Dividingthe market into groups
   according to the different benefits
   that consumers seek from the
   product (detergent)
Using multiple segmentation
   Using multiple segmentation bases in
    an effort to identify smaller, better
    defined target groups
Requirements for effective
 Measurable
 Accessible

 Differentiable (segment is unique)

 Actionable (can perform marketing
  mix to reach this segment)
1. Identify bases
   for segmenting       Target marketing
   the market.                             Market positioning
                      3. Develop measure
2. Develop               of segment        5. Develop
   segment profiles      attractiveness    positioning
                                           (differentiation) for
                      4. Select target     target segments.
                                           6. Develop a
                                           marketing mix for
                                           each segment.
Target marketing

   The process of evaluating each
    market segment’s attractiveness and
    selecting one or more segments to
Evaluating market segments
 Segment size
 Growth

 Segment attractiveness

 Company objectives and resources

 Competitors

 Buying power

 Supplier power
          Selecting target market
   Target market
       A set of buyers sharing common needs or
        characteristics that the company decides to
             Targeting Strategies

Undifferentiated Strategy   Concentrated (niche)    Differentiation Strategy
One marketing mix for the                           Two marketing mix and 2
whole market                One marketing mix and   different segment
                            one segment

       Chipsy               BMW
1. Identify bases
   for segmenting       Target marketing
   the market.                             Market positioning
                      3. Develop measure
2. Develop               of segment        5. Develop
   segment profiles      attractiveness    positioning
                                           (differentiation) for
                      4. Select target     target segments.
                                           6. Develop a
                                           marketing mix for
                                           each segment.
Product positioning

   The way that product is defined by
    consumers on important attributes -
    the place the product occupies in
    consumer’s minds relative to
    competing products
          Perceptual Positioning Map for
                         Stylish, prestigious, distinctive

                                                  Mercedes 400SE
                    Volvo 850R
                                  •               •      Porsche 914   •
                                      TM3     TM2
                  Chrysler LHS    •           • Lexus LS400
        Buick Park Avenue •
            Oldsmobile L35 •                  •Jeep Grand Cherokee
                                       • Acura Integra
                        Honda Accord •
Staid,                                   • Ford Saturn SC2 •
                                                Taurus             Fun,
conservative,                                                              sporty,
older                Nissan Sentra    •                                      fast

           Plymouth Voyager   •               • Honda Civic   TM1
             Dodge Caravan    •
                                              Dodge Neon•

                     Geo Metro    •
                          Kia Sephia      •
                       Practical, common, economical
Developing the marketing
   Marketing mix: the set of controllable
    tactical marketing tools: product,
    price, place and promotion that the
    firm blends to produce the response it
    wants in the target market
Principles of Real
World Marketing
Principles of Real World
 Your Customers Aren’t Listening To
 Everybody Else Is Shouting At Your
 The Rest Of Your Organization thinks
  you are crazy BUT
 You Cant execute your program
  without the rest of the company
Principles of Real World
 The More You Give; The More You Get
 Being Good Is Never Good Enough;
  You Have To Be Better
 Marketing Should Be The Most Creative
  and Most Logical Part Of Your Business
 Everything Is Marketing
Integrated Marketing
Communications (IMC)
   The concept under which a company
    carefully integrates and coordinates
    its many communications channels to
    deliver a clear, consistent, and
    compelling message about the
    organization and its products
Marketing communications mix
- promotion mix
   The mix of
     Advertising
     Personal selling
     Sales promotion
     Public relations
     Direct Marketing

   That the company uses
a. Advertising
 Any paid form of non-personal
  presentation and promotion of ideas,
  goods, or services
 Advertising tools
     Print (newspapers, magazines)
     TV
     Radio
     Outdoor
     Online
1. Setting advertising
 A specific communication task to be
  accomplished with a specific target
  audience during a specific period of
 Objectives
     Informative (new product category)
     Persuading (when competition
      increases, comparative advertising,
      comparative advertising AUDI ad)
     Reminding (coca cola, Pepsi)
2. Developing advertising strategy
        a. Creating advertising messages
   Message execution
     Slice of life: one or more “typical” people
      using the product in a normal setting.
      Samna and Oil ads)
     Lifestyle: how a product fits in with a
      particular lifestyle. Nescafe
     Fantasy: creates fantasy around the
      product or its use. Galaxy (girl in the big
      chair), 7up tropical
     Musical: one or more people or cartoon
      characters singing about the product.
   Message execution
     Technical expertise: shows the
      company’s expertise in making the
      product. Chipsy
     Scientific evidence: presents surveys
      or scientific evidence that the brand is
      better or better liked than one or more
      other brands. Crest and the egg ad
     Testimonial evidence or endorsement
      Highly believable or likeable source
      endorsing the product –Celebrity-
      Nancy Agram
        2. Developing advertising strategy
             b. Selecting advertising media

   Deciding on reach, frequency
     Reach: measure of the percentage of people in
      the target market who are exposed to the ad
      campaign during a given period of time
     Frequency: measure of how many times the
      average person in the target market is
      exposed to the message
Choose Your Media Type

   Question
       How to choose the best medium?
   Answer
       Whatever Works for your campaign and
        reaches your target market
        • Primary Medium
        • Secondary Medium
        • Spread your budget equally on more than
          one medium
             Profiles of major media types
Medium       Advantages                                          Limitations
Print -       Flexibility; timeliness; good local market         Short life; poor production
Newspaper     coverage; broad acceptability; believability       quality

Television    Good mass-market coverage; low cost per            High absolute cost; high clutter;
              exposure; combines sight, sound, and motion;       less audience selectivity
              appealing to the senses
Radio         Good local acceptance; high geographic and         Audio only; low attention (“half
              demographic selectivity; low cost                  heard”); fragmented audiences

Print -       High geographic and demographic selectivity;       high cost; no guarantee of
              credibility and prestige; quality production;      position
Magazine      long life; good pass-along
Outdoor       Flexibility; high repeat exposure; low cost; low   Little audience selectivity;
              message competition; good positional               creative limitations
Online        High selectivity; low cost; immediacy;             Small, demographically skewed
              interactive capabilities                           audience; low impact; audience
                                                                 controls exposure
Print Advertising (Newspapers,
   Most Advertisers budget more for print than any other
   Works mainly to promote sales promotions
   Anatomy:
      Headline
      Sub headline
      Copy – choose the font that serves the message
      Visual
      Caption
      Trademark
      Signature
      Slogan

   Each Team chooses a print ad from the
    newspaper or magazine and analyze it

   Used When You Need To Evoke
    Emotions – surprise, anxiety,
    excitement, happiness, …

 Rely On Sounds – choose cool sound
  effect, interesting voice, catchy
  musical phrase, …
 Choose One Strong Idea
 Talk To Your Market Right Away – i.e.
  if you want to advertise for salon’s
  service; start right away with ex. :”not
  another bad hair day”
Outdoor – Billboards,
Banners and Signs
   It must be read in a hurry
   It is geographically specific
   It directs people to your business location
   Placing it in front of competitor location IS
    SMART 
   Design should include 2 main sections: 1-
    Header to catch attention from far, 2-
    essential information
Outdoor – Billboards,
Banners and Signs
   Forms:
     Vinyl
     Hand Painted
     Wood
     Metal
     Light Boxes
     Electronic Display
Online Advertising
   Types:
     Website = company brochure
     Banner Ads = billboard where you use
      your logo, one simple message and
      max. couple lines of body copy

       N.B
        • Refresh Your Content Regularly
        • Deliver fascinating and attractive content
Other Forms of Indirect

   Point Of Purchase POP
     Flags
     Danglers
     Roll ups & pop ups

   Word Of Mouth
     Virtual WOM
     Face To Face
b. Sales promotion

   Short-term incentives to encourage
    the purchase or sale of a product or
Major sales promotion tools for
   Sample: a small amount of a product
    offered to customers for trial. (perfumes)
   Coupon: certificate that gives buyers a
    saving when they purchase a specified
   Price off (cents-off deal): reduced price
    that is marked by the producer directly on
    the label or package. (10 instead of 12)
   Premiums: prizes, gifts consumers receive
    when purchasing products. (shampoo with
    shower gel, vodafone)
Major sales promotion tools for
consumers (cont’d)
   Contests and sweepstakes
     Contests: solve questions and you win
      something (who would win the million)
     Sweepstakes: depend on luck

   Bonus packs: additional or extra
    number of items is placed in a special
    product package (3 with price of 2,
Major sales promotion tools for
 Discount: a straight reduction in price
  on purchases during a stated period
  of time
 Allowances: promotional money paid
  by manufacturers to retailers in return
  for an agreement to feature the
  manufacturer's products in some way
c. Public relations
   Building good relations with the company’s
    various publics by obtaining favorable
    publicity, building up a good “corporate
    image”, and handling or heading off
    unfavorable rumors, stories, and events
   It is unpaid advertising
   PR tools
       Press releases
       Sponsorships (Mc Donald’s and the hospital
       Special events (Vodafone and the charity
d. Personal selling

 Personal presentation by the firm’s
  sales force for the purpose of making
  sales and building customer
 Personal selling tools
     Personal presentation
     Trade shows (exhibitions and fairs.
      Le marche)
e. Direct marketing

 Direct communications with carefully
  targeted individual consumers-the use
  of telephone, mail, fax, e-mail, the
  internet, and other tools to
  communicate directly with specific
 Direct marketing
     Sending catalogues
     Telemarketing
Push strategy

 A promotion strategy that calls for
  using the sales force and trade
  promotion to push the product through
 The producer promotes the product to
  wholesalers, the wholesalers promote
  to retailers, and the retailers promote
  to consumers
Pull strategy

 A promotion strategy that calls for
  spending a lot on advertising and
  consumer promotion to build up
  consumer demand.
 If the strategy is successful,
  consumers will ask their retailers for
  the product, the retailers will ask the
  wholesalers, and the wholesalers will
  ask the producers
Push Vs Pull strategy
1. Affordable method

   Setting the promotion budget at a
    level management thinks the
    company can afford
2. Percentage of sales
   Setting the promotion budget at a
    certain percentage of current or
    forecasted sales or as a percentage of
    unit sales price
3. Competitive-parity method

 Setting the promotion budget to match
  competitors’ outlays
 Get Data from reports such as PARC
     Mobinil and Vodafone
     Pepsi and coca cola
4. Objective and task
   Developing the promotion budget by
     Defining specific objectives
     Determining the tasks that must be
      preformed to achieve these objectives
     Estimating the costs of performing
      these tasks
   The sum of these costs is the
    proposed promotion budget

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