2

The Role of Consumer

Behavior in the
Marketing Process

Under Armour Protects Its House

Under Armour Protects Its House

Keys to Under Armours success

Niche markets
Strong product positioning
Unique brand identity
Strong brand reputation

Marketing and Promotions Process Model

Opportunity
analysis

Identifying
markets

Product
decisions
Promotional
decisions

Competitive
analysis

Target
marketing

Market
segmentation

Pricing
decisions

Channel-ofdistribution
decisions
Selecting a
target market

Advertising
Direct
marketing
Interactive
marketing
Sales
promotion
Publicity
and public
relations
Personal
selling

Positioning
through
marketing
strategies

Promotion
to final
buyer

Internet/
Interactive

Ultimate
consumer
Consumers
Businesses

Promotion
to trade

Resellers
Purchase

Marketing to a Lifestyle

The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation

Select market to target

Position through marketing strategies

A Product for Every Market Segment

The Marketing Segmentation Process

Find ways to group consumers
according to their needs
Find ways to group marketing actions
available to the organization
Develop a market/product grid to relate the market
segments to the firms products and actions
Select the product segments toward which the
firm will direct its marketing actions

Take marketing actions to reach target segments

What do NASCAR, Coors, and Unilever know?

Bases for Segmentation

Psychographic

Demographic

Customer
Characteristics
Socioeconomic

Geographic

Behavior

Usage

Outlet Type

Buying
Situation
Awareness

Benefits

Geographic Marketing

Demographic Segmentation

Psychographic Segmentation

Dividing the market on the basis of

Personality
Values
Lifestyle

VALS lifestyle segmentation

Eight lifestyles with distinctive attitudes,
behaviors, and decision-making patterns
Combined with estimate of the resources
on which the consumer can draw

Behavioristic Segmentation

Usage
Buying
Responses

Loyalties

Benefit Segmentation

PRIZM Cluster Profiles

HIGH

LOW

Test Your Knowledge

The key factor in communicating information about
a brand and differentiating it from competitors is:

A) Its perceived price differential

B) Its integrated promotional strategy
C) The market positioning strategy assigned
it by the manufacturer
D) Its distribution intensity
E) The benefits the brand offers

Selecting a Target Market

Determine how many
segments to enter
Undifferentiated, Differentiated
Concentrated

Determine which segments

have the greatest potential

Market Positioning
Fitting the product or service to one or more
segments of the broad market in such a way
as to set it apart from the competition

Developing a Positioning Strategy

What position do
we have now?
Does our creative
strategy
match it?

What position do
we want to own?

The
Position
Do we have the
tenacity to stay
with it?

From whom
must we win this
position?
Do we have the
money to do the
job?

Positioning Strategies
How should
we position?

Attributes and Benefits?

Price or Quality?
Use or Application?

Product Class?
Product User?

Competitor?
Cultural Symbols?

Positioning by Use or Application

Developing a Positioning Platform

1.

Identify the competitors

2.

Assess perceptions of them

3.

Determine their positions

4.

Analyze consumer preferences

5.

Make the positioning decision

6.

Monitor the position

Making the Positioning Decision

Is the current
position strategy
working?

Is the segmentation
strategy
appropriate?

The
Checklist

How strong is the

competition?

Are there sufficient

resources to
communicate the
position?

Advertising Develops Brand Image

Branding and Product Names

Brand names often communicate
attributes and meaning
Safeguard
I Cant Believe Its Not Butter!
Easy-Off
Arrid
Spic and Span

Branding and Packaging Are Linked

Product Decisions
BRANDING

Brand
name
communicates
attributes
and
meaning

Advertising
creates and
maintains
brand
equity

PACKAGING

Has become
increasingly
important

Often
customers
first
exposure to
product

A Package is More than a Container

Pricing Decisions
What consumers give
up to purchase a
product or service

Factors the firm must

consider

Costs

Demand

Price Variable

Time

Mental activity

Competition

Perceived value

Behavioral effort

Relating Price to Ads and Promotion

Pricing
Considerations

Price must be consistent with

perceptions of the product
Higher prices communicate higher
product quality
Lower prices reflect bargain or
value perceptions
Price, advertising and distribution be
unified in
identifying product position
A product positioned as high quality
while carrying a lower price than
competitors will confuse customers

When Price is Not an Issue

Distribution Channel Decisions

Selecting

Distribution
Channel
Decisions

Managing

Motivating

Distribution Intermediaries
Brokers

Distribution
Channel
Intermediaries

Distributors

Wholesalers

Retailers

Promotional Strategy: Push or Pull?

Push Policy

Pull Policy

Producer

Producer

Wholesaler

Wholesaler

Retailer

Retailer

Consumer

Consumer

Information Flow

Test Your Knowledge

An ad in a publication aimed at veterinarians explains
why they should recommend Eukanuba cat food to the
owners of the cats they treat. This is an example of:
A) Consumer advertising
B) A promotional pull strategy
C) A harvesting strategy
D) A consumer promotion
E) A promotional push strategy