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Chapter 2 continued

2.3 The Consumer Market

everyone has a unique blend of personality, values, beliefs, physical features, history, etc.

if marketers are to be successful, they need to understand their potential customers to anticipate or influence their needs and wants

marketers create consumer profiles of the kind of people most likely to be attracted to a product

it turns out that groups of people who are attracted to one product are often attracted to others

2.3 The Consumer Market

then they attempt to combine consumers into cohorts, groups with similar characteristics called consumer segments ex: teenagers, baby boomers, boarders, etc.

these are further divided into primary (most likely consumers) market and secondary (occasional consumers) market

most marketing is aimed at primary market

Example

Let’s take for example a cup of coffee at Starbucks.

Who would be attracted to this product? (i.e. age group, gender, etc.)

Who would you consider the primary market and who would be the secondary?

2.3 The Consumer Market

Psychographics system for measuring consumers beliefs,

opinions and interests looks to recognize patterns so that

marketing mix can be done more effectively

ex: people who are interested in exercise likely value low fat foods

2.3 The Consumer Market

Geographics marketing based on patterns based on

where people live ex: rural consumers have different needs

(snow removal, grass cutting) than apartment dwellers in the inner city (may not even need a car)

2.4 Consumer Motivation

Motivation is the biological, emotional, rational and/or social force that initiates and directs behaviors

since buying is a behaviour, marketers need to understand motivation

biological forces are linked to our most basic needs for survival these need to be satisfied first

2.4 Consumer Motivation

emotional forces include love, sympathy, joy, anger, fear, etc. can either motivate the consumer positively

(like love) or negatively (like fear) most purchases mix of positive and negative

rational forces are often in conflict with emotional ones rational forces deal with logic ex: cost, convenience, safety, needs

2.4 Consumer Motivation

societal forces are caused by other people friends, family and society in general celebrity endorsements are an example

motivational theories are used to explain human behavior

Thorndike’s Law of Effect consumers are motivated to buy products that

produce positive events and reduce negative events

most purchases are influenced by both

2.4 Consumer Motivation

Maslow’s Hierarchy of Needs consumers respond to motivation according to

levels of needs in this order: physiological safety/security affiliation esteem

if these needs are met, the person may then be motivated by growth needs

2.4 Consumer Motivation

Alderfer’s ERG Theory He modified Maslow’s theory to include only

three levels of human needs: Existence

All physical and psychological needs necessary for survival

Relatedness All needs for personal relationships

Growth Need to be productive, self fulfillment

2.5 The Buying Decision

the buying process occurs in response to a need or want, for example

1. MP3 player breaks

2. decisions made on what to buy

3. search made for products available

4. decision among products is made

5. MP3 player purchased

6. purchase is evaluated

2.5 The Buying Decision

but the buying process only works for large purchases made occasionally does not work for impulse purchases also does not work for product purchases

where brand is not important

in these last two cases, the retailer may significantly influence the purchase

see the Lee Valley item on page 72, read it now and answer the 2 questions at the bottom of page 73

2.6 Industrial/Institutional

the Industrial/Institutional consumer purchases for a business

purchase criteria are almost entirely rational what is the cost/profit margin? will the customer buy it? can it be shipped to me on time?

tenders may be used in purchases here and pricing is critical

Chapter 2 Review Questions

Do Page 78 #1, 2, 4, 5