Consumer Behavior and Marketing Intro

Consumer and Marketing Introduction

• Marketing involves exploring, creating, and delivering value to satisfy a target market's needs at a profit
• Marketing identifies unfulfilled needs and desires, "fishing" for the need and then arousing it
• Marketing focuses on consumer buying habits, like Venus selling larger razor packs during Easter for warm-weather prep
• Key strategy areas include Price, Product Innovation, Place (distribution), and Promotion (communication)
• Advertising attempts to persuade people to buy products or services

Consumer Behavior

• Consumer behavior includes the behaviors and patterns consumers follow before making a purchase
• It starts with need/desire, then the purchase transaction, and ends with post-purchase behaviors
• Marketing and advertising attempt to impact consumer behavior

Global Trends: Attention Economy

• Companies compete for consumer attention due to the many available options
• Cognitive overload is a major barrier, leading to multitasking which reduces productivity/retention
• Multiple screens reduce attention, thus hurting campaigns
• People don't trust big companies due to scandals, nor do they trust the media because of fake news
• There is trust in family, friends, research journals, and normal people's reviews
• Reviews are important, with people focusing on the negatives
• Fake reviews reduce trust

Consumer Empowerment & Narcissism

• Social media empowers consumers to threaten companies, making firms scared of bad reviews
• Consumer narcissism includes the need to feel special and appreciated, exclusivity, early access, customizable products, and secret knowledge

Building Brand Relationships

• Secret knowledge is demonstrated by In-n-Out's secret menu, pop-up stores and printing faces on cappuccinos
• Building relationships involves loyalty programs, advocacy marketing and influencers (bloggers, TikTokers), and CRM

Content Marketing

• Content in marketing isn't brand information, but brands should facilitate relevant product information
• Interaction forces attention, like voting for an M&M flavor, or Starbucks asking for new coffee flavors
• Small brands can use social media for customer engagement

Trends: Immediacy & Omnichannel

• Amazon and Netflix satisfy desires immediately
• Logging screens cause stress if not fast enough, comparable to horror movies
• Retail stores answering immediately is essential, and being faster is more important than being better
• Omnichannel consistency is important as inconsistency makes brands seem unreliable
• Controversy can work (Nike) or fail (Gillette)

Marketing Process: Key Steps

• Understand the marketplace plus customer needs and wants
• Consumers may not even realize they have certain needs
• "Miopia" is when a brand doesn't evolve, an example of which is Google adding Gemini to compete with ChatGPT

Marketing Concepts

• Selling = profits through volume, marketing = satisfying needs, which leads to demand
• Construct an integrated marketing program
• Build relationships and create delight by engaging customers

Customer Value

• Exchange information with customers, which helps the company
• Customer share is the portion of customer spending a company gets in its product categories
• Coca-cola sees customer "share in stomach" as how much of what you consume is cocacola
• Capture value by targeting customers willing to pay more and stay loyal
• If customers can't spend as much, loyalty matters

Marketing Process: Environmental Forces

• Understand the environmental forces impacting a company's ability to serve its customers
• Marketing environment encompasses all actors and forces outside of marketing that affect management's ability to build relationships with target customers
• The Microenvironment consists of company, suppliers, competitors, clients, close factors
• Marketing Intermediaries, Competitors, Publics, Customers and Suppliers
• Macro environment consists of larger societal factors, such as trends and macro-effects impacting the microenvironment
• An example of this is political forces, such as boycotts due to world conflicts
• Demographic forces such as Japan's aging impacts product sales, including LGBTQ

Natural & Technological Forces

• Natural forces like climate change reduce coffee bean production, increasing prices
• This forces are related to Environmental sustainability
• Technological forces such as AI are also a dramatic force, changing rapidly
• New products, opportunities, and safety concerns are major consideration in this area
• Economic forces, such as wages and economic crises, reduce flexible demand product sales.
• This is related to available income
• Cultural forces, such as matcha consumption instead of coffee in Japan also impacts product choices

Market Effort & SWOT Analysis

• Marketing analysis can be analyzed with SWOT Analysis
• Strengths provide an advantage over competitors
• Weaknesses give a disadvantage relative to competitors
• Opportunities are elements in a company's external environment to increase profits
• Threats endanger integrity and business profitability

PEST & 5 C's Tools

• PEST tool considers Political, Economical (costs, prices, consumer behaviors), Social (ethics, society, trends), and Technological (advances in AI) factors
• 5 C's include Company, Collaborators, Customers, Competitors, and Climate
• Company: Products, competitive advantages, goals, and brand
• Collaborators: Partners, suppliers, distributors, service providers, and content relationships
• Customers: Target audiences, motivations, and behaviors
• Competitors: Established, emerging, strategies, and capability gaps
• Climate: Laws, behavioral trends, and technologies

Customer Insights

• Insights are fresh, deep understandings of customer needs and wants
• This is important but difficult because needs and buying motives are not obvious
• Customers can't always tell why and what they want
• Insight involves better information and use of existing information

Marketing Information & Insights

• Companies form customer insight teams that include all functional areas, collect information from diverse sources, and use insights to create more value for customers
• Obtaining these insights involves assessing information needs and developing needed information
• This includes internal databases, marketing intelligence, and research
• Analyzing and using information is key

Marketing Information Needs (MIS)

• MIS provides info to company managers/partners such as suppliers and agencies
• Internal data, such as consumer information from company networks used by marketers
• Competitive marketing intelligence involves systematic collection/analysis of public info about consumers, competitors, and the marketing environment

Marketing Research

• Begins with defining the problem and research objectives
• This involves developing a research plan for collecting information
• Next, implement the research plan by collecting and analyzing data
• Interpret and report the findings
• Qualitative focuses on hypothesis development (Reasons for lost profits or success)
• Quantitative qualifies hypothesis (Which reasons are important/frequent?)

Research Decisions

• Primary research is needed when deciding what action is needed
• No decision = no research, unless a business decision must be made from it (e.g., new product launch?)
• First, study previous research and information
• Before actual research, hold conversations with decision-makers/experts, analyze secondary data and always double-check research
• Do not use low-credibility sources to close a business debate
• Always search for customer insights which build or kill hypotheses impartially

Business Questions

• Differences exist between business and research questions. A Business question "will I make money?"
• A good research question asks, what do the consumers think such as are consumers buying more with this campaign?

Types of Research

• Exploratory research: Discover ideas and new knowledge areas (flexible, versatile) through interviews, pilot studies, and secondary sources.
• Descriptive research: Describe market characteristics through formal hypothesis and observations (Surveys, panel data, and observational data)
• Casual: Identify causal relationships manipulation of independent parameters(Experiments)
• The source of existing data
• Specific research approaches, methods, and instruments for data gathering
• Types of Data:(information already in existence)
• Information gathered for specific purposes
• Secondary Data:
• Primary Data:

Gathering Data: Advantages, Disadvantages

• Secondary data has the advantages of lowering the cost, obtained quickly
• Secondary data cannot be collected otherwise
• Secondary data has the disadvantages (might not be)Relevant, Accurate, Current, impartial
• Approaches to research
• Contact methods
• Sampling plan
• Instruments
• Qualitative uses smaller samples, doesn't feature statistics Generated hypotheses
• Verbatims of consumers
• Interviews for focus
• The project developed at the beginning or later on, in order to understand better the output of segments

Research Design

• Design: target group Recruitment specifications: the best people at the right time
• Frequent analysis of Methodologies

Qualitative Methodologies

• Ethnography: Enables observations of: Occasions of usage Habits of consciousness
• Options: Home visits, in stores,mobile visits
• Interviews and in depths
• More to understand of what to do
• Discussion of focus group
• Analysis with the process of interaction
• Brainstorming
• Made up by people
• The analysis has the detail

Research Details

• The should match real world social
• Social classes must do work
• The technique should in general

Data Analysis

• Business, research questions
• Data from prior
• Sample from experts, and samples from units
• In General
• The analysis has detail

Presenting Information Visually

• The data should have diagrams, graphs, or data with matrices
• Conclusions: take away and assessment in question
• Data Collection

Primary Data Collection

• Analyze CRM is an easy system; manage data
• Detailed insight that they have
• Actions/Results need to be recognized
• Pie chart has advantages
• One line data
• Linear chart can show trend
• The lines need to be shown where there is more to compare so it is easy

Info To Analyze

• Consumption (CCI) is the use per person
• GDP is used, so the products are not degraded when calculated.
• Deep interviews is important.

Recommendations

• Needs to be just to be analysed
• Results will need action
• Do not lunch on people
• Get some things to do.

Consummation & Behavior

• Understand the markets side and all products
• Consumer Behavior

Culture & Characteristics

• Understanding culture will always drive
• The knowledge and habit of family

Process Of Making Decisions

• Know the consumer the brand
• Process: understanding
• Not stopping after purchase
• The analysis will see through everything

Marketing Motivation

• It will make people feel and work
• "It will push your buttons"
• To give them the want
• Make a "why"
• To satisfy the needs by cultural
• Set a goal of what will be done
• Make decisions.
• Don't limit goals

Feelings

• See it as a person
• Is is a psychological
• The way that you act, the person you think

Personaily

• Social
• Know the norms

Traits & Innovation

• A desire
• Uniqueness and novelty