7/25/2019 2) Managerial Applications
1/25
Consumer BehaviorJohn C. MowenMichael S. Minor
7/25/2019 2) Managerial Applications
2/25
Ten Concepts to Learn P!MS Pro"uct positioning
Pro"uct"i#erentiation
lements o$ theconsumer
environment Behavioral
economics
CB an" marketingresearch
CB an" the marketingmi% The ases o$
segmentation
Behavioralsegmentaiton Managerial
applications anal'sis
7/25/2019 2) Managerial Applications
3/25
(pplication (reas o$Consumer Behavior:
P!MS nvironmental (nal'sis
Market !esearch
Segmentation o$ the Marketplace
Pro"uct Positioning an" Pro"uct)i#erentiation
Marketing*Mi% )evelopment
7/25/2019 2) Managerial Applications
4/25
Pro"uct Positioning . . .
. . . is in+uencing how consumersperceive a ran",s characteristics
relative to those o$ competitiveo#erings
-oal is to in+uence "eman" ' creating
a pro"uct with specic characteristics/i.e. ran" attriutes0 an" a clear imagethat "i#erentiate it $rom competitors
7/25/2019 2) Managerial Applications
5/25
Specic Positioning
positioning a ran" ase" creating linkagesetween ran" an" ke' attriutes an"enets. .g.1 acceleration o$ auto1 reliailit'o$ auto
Competitive Positioning positioning a ran" in relation to competitors.
.g.1 Suuran is larger than an %pe"ition
Ps'chological Positioning positioning a ran" ase" upon "ominant
personalit' characteristic o$ target market.
.g.1 e uil" e%citement.
7/25/2019 2) Managerial Applications
6/25
Pro"uct )i#erentiation . . .
. . . is the process o$ manipulatingthe marketing mi% so as to positiona pro"uct in a manner that allowsconsumers to perceive meaning$ul"i#erences etween a ran" an"its competitors
7/25/2019 2) Managerial Applications
7/25
nvironmental
(nal'sis . . .
. . . is theassessment o$ thee%ternal $orcesthat act upon therm an" its
customers1 an"that create threatsan" opportunities
7/25/2019 2) Managerial Applications
8/25
The 3atural
nvironment . . .. . . inclu"es the t'peso$ raw materialsavailale1 pollution1
consumer $ear o$contracting "ea"l'"iseases1 the e%pansiono$ "esert regions
aroun" the gloe1 an"various weatherphenomena1 such ashurricanes or "rought
7/25/2019 2) Managerial Applications
9/25
Components o$ the %ternal
nvironment
)emographic
conomic
3atural
Technological
Political
Cultural
7/25/2019 2) Managerial Applications
10/25
The conomicnvironment Set o$ $actors involving monetar'1 natural1 an"human resources that in+uencerms4consumers.
Behavioral economics: stu"' o$ economic"ecisions ma"e ' in"ivi"ual consumers an" theehavioral "eterminants o$ those "ecisions.
5 Ma6or Contriutions o$ Behavioral conomists: 7riginate" an" "ocumente" the i"ea that the
consumer sector o$ the econom' can strongl'in+uence the course o$ the aggregate econom'
8nvestigate" what $actors in+uence the "ecision o$$amilies to u' or save
)evelope" a metho"olog' $or making pre"ictions o$economic activities ase" upon consumer surve's
7/25/2019 2) Managerial Applications
11/25
The Technological
nvironment-oal is to anticipatewhat changes inthe technologicalenvironment willoccur an" howthese will in+uencethe li$est'le an"
consumptionpatterns o$consumers
7/25/2019 2) Managerial Applications
12/25
M(!9T !S(!C . . .
. . . is applie" consumer research"esigne" to provi"e managementwith in$ormation on $actors thatimpact consumers, ac;uisition1
consumption1 an" "isposition o$goo"s1 services1 an" i"eas
7/25/2019 2) Managerial Applications
13/25
Pro"uct
Promotion
Pricing
)istriution
Marketing-Mix Development .. . . involves the development andcoordination of activities involving the:
7/25/2019 2) Managerial Applications
14/25
("vertising
Personal Selling
Sales Promotion(pplications
Pulic !elations
Promotional Strateg'
7/25/2019 2) Managerial Applications
15/25
Price Changes
Pre"icting the likel' impact o$ pricechanges on consumers is an
important consumer ehavior area. ow will consumers react when
companies raise or lower the price o$ apro"uct>%ample: lowinvolvement "ecision/e.g.1 purchase so$t"rink01 must usee%tensive "istriution.
7/25/2019 2) Managerial Applications
17/25
Market Segmentation . . .
. . . involvessu"ivi"ing themarket place into"istinct susets o$customers havingsimilar nee"s an"wants1 each o$ which
can e reache" witha "i#erent marketingmi%
7/25/2019 2) Managerial Applications
18/25
?our Classications o$Segmentation @ariales: Characteristics o$ the Person
3ature o$ the Situation in hich thePro"uct or Service Ma' BePurchase"
-eograph' Culture an" Suculture ("opte" '
the Consumer
7/25/2019 2) Managerial Applications
19/25
Characteristics o$ the
Person )emographic Characteristics
Behavioral Segmentation:priceelasticit'1 enets sought1 usagerate1 ran" lo'alt'
Benet Segmentation Ps'chographic an" Personalit'
Characteristics
7/25/2019 2) Managerial Applications
20/25
)emographics is . . .
. . . the stu"' o$ population changes an"sucultural values o$ various "emographic groupsase" on such $actors as age1 se%1 income1
e"ucation1 ethnicit'1 an" geograph'.Examples of demographic variables:
age1 se%1 income1 ethnicit'1 nationalit'1 househol"si=e1 marital status1 religion1 e"ucation1 occupation1
7/25/2019 2) Managerial Applications
21/25
ConsumerSituations . . .
. . . consist o$ the temporar'environmental $actors that $orm theconte%t within which a consumeractivit' occurs at a particular time an"
placeT'pes o$ situations: social1 ph'sical1task "enition1 time.
7/25/2019 2) Managerial Applications
22/25
-eographic Segmentation
Can inclu"e region1si=e o$ cities an"counties1 censuslocks1 population"ensit'1 an"climate
-eo"emographicsis the cominationo$ geograph' an""emographics
7/25/2019 2) Managerial Applications
23/25
Culture an" Suculture
Culture is the wa' o$ li$e o$ the
people o$ a societ'
Suculture is a su"ivision o$ a
national culture an" is ase" onsome uni$'ing characteristic1 suchas social status or nationalit'
7/25/2019 2) Managerial Applications
24/25
Segmenting 8n"ustrial
Markets )i#erent segmenting
variales are use" to
classi$' companies intosegments inclu"ing the3orth (merican8n"ustr' Classication
S'stem 3(8CS0.)evelope" as part o$3(?T( in A.2D**2*"igit co"es.
7/25/2019 2) Managerial Applications
25/25
Solving Managerial
Prolems . .. . . is a three*step process:
-ather in$ormation an" i"enti$' the
prolem4opportunit' 8"enti$' the relevant consumer
ehavior concepts an" how the'appl' to the prolem
)evelop a managerial strateg' 'i"enti$'ing the managerialimplications o$ each consumerconcept.