Upload
kelsi-hartin
View
220
Download
1
Tags:
Embed Size (px)
Citation preview
Buyer Behavior
Professor S.J. Grant
Spring 2007
BUYER BEHAVIOR, MARKETING 3250
Outline
Introduction Goals of the course Requirements Grading Honor code My obligations About me
Introduction
This course is an overview of concepts of consumer behavior
Drawing from psychology, our study of behavior will emphasize an understanding of consumer learning, memory, preference, choice and attitudes
Goals of the Course
Introduce you to key concepts and theories underlying consumer behavior
Demonstrate how an understanding of consumer behavior drives marketing strategy
Requirements
Readings REQUIRED TEXT:
• Wayne D. Hoyer & Deborah J. MacInnis, Consumer Behavior, 4th ed., Houghton Mifflin, 2007.
• Arbinger Institute, Leadership and Self-Deception; Getting Out of the Box, Berrett-Koehler, 2002.
OPTIONAL TEXTS: • Dawn Iacobucci, ed., Kellogg on Marketing, John
Wiley & Sons, 2001.
Requirements
Group workStudents select groupsPeer evaluation is component of
overall grade (5%)Collaborative work has pedagogical
purpose
Grading
Grading will be based on evaluations of individual effort and team work
Positioning analysis# 10 %Case analysis# 10 %Quantitative analysis* 10 %Exam I* 15 %Exam II* 15 %Team project# 20 %Team dynamics# 5 %Class participation^ 15 %
# Team work * Individual effort^Preparation for class discussion may be done in teams
Grading
Assignments Positioning
analysis Case analysis Pricing analysis Team project
Readings Exercises Class discussion
Exams Midterm I Midterm II Final
Honor Code
Team work Duty to the team Conflict in the team Peer evaluation
Infractions and suspected violations are taken seriously Applies to attendance, course requirements,
preparation of assignments, exams
My Obligations
I will return assignments within one week of submission
I am available during office hours MW 2-3 pm and by appointment
I will return all student phone calls and emails within 24 hoursPhone: 303 492 5616Email:
About Me
Education University of Pennsylvania, BA Kellogg School of Management,
Northwestern University, MBA, PhD Experience
Northwestern University, lecturer Price Waterhouse Coopers LLP, consultant Philadelphia Inquirer, editor Boston Globe, reporter, editor
Professor S.J. Grant
Spring 2007
BUYER BEHAVIOR, MARKETING 3250
Review of Marketing Concepts
Outline
What is marketing? Review of marketing management
Analyzing the marketing environment & marketing opportunities
Aspects of strategy
Paradigm Shift
“Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.” (Theodore Levitt)
Historic Overview
Selling concept has been historically dominantWhatever was produced (crops,
livestock, goods) had to be sold at market
Industrial Revolution shifted production from home to factory, prompting focus to be on the marketing concept
Selling versus Marketing
Selling Concept
Selling & PromotingProducts
Profits through sales
volume
Customer needs
Profits through customer
satisfaction
Marketing Concept
Integrated Marketing
Selling versus Marketing
Selling conceptFocuses on selling what you can make
Marketing conceptFocuses on making what you can sell
Marketing Concept
Analyze Marketing Opportunities- Environmental Analysis- Competitive Analysis- Consumer Analysis
Implementation & Control
MarketingResearch
Select Target Markets- Segmentation - Targeting - Positioning
Formulate the Marketing Mix- Product - Promotion- Pricing - Distribution/Place
Marketing Management
Management of change, a necessary focus in a dynamic marketplaceSensitivity to external changes is key
in identifying opportunity• Competitors• Consumers
Sensitivity to internal changes is key in formulating a strategy
Marketing Management
How is marketing management distinct from plain old management? Customer focus
Customer focus “Customer is always right” Customer focus implies scrutinizing how
strategic motivations are relevant to the customer
Involves keeping a disciplined vision of how to create the kind of value the customer is willing to pay for
Marketing Management
In essence, marketing management is about value creation and value delivery
Choose the value
Provide the value
Communicate the value
Value Creation & Delivery
Choose the value
Provide the value
Communicate the value
Seg
men
tati
on
Targ
eti
ng
Posit
ion
ing
Pro
du
ct
Pri
cin
g
Sou
rcin
g
Dis
trib
uti
on
Sale
s f
orc
e
Sale
s p
rom
oti
on
Ad
vert
isin
g
Marketing Strategy
A coherent strategy informs every aspect of the marketing processAligns a firm’s strengths with what is
needed in marketplace – strategic fit• Given consumer demand• Given competition
Guides vision, directionDrives tactics
Core Competencies
3 dimensions of core competenciesOperational excellenceProduct leadershipCustomer intimacy
Co
mp
any
Tra
its
Disciplines
Operational Excellence
Sharpen distribution systemand provide no-hassleservice
Has strong, central authorityand a finite level ofempowerment
Maintain standard operatingprocedures
Acts predictably and believes“one size fits all”
Product Leadership
Nurture ideas, translatethem into products, andmarket them skillfully
Acts in an ad hoc, organic,loosely knit, andever-changing way
Reward individuals’innovative capacity andnew product success
Experiments and thinks “out-of-the-box”
Customer Intimacy
Provides solutionsand help customersrun their businesses
Pushes empowerment closeto customer contact
Measure the cost ofservice, maintainingcustomer loyalty
Is flexible and thinks“have it your way”
Core businessprocesses that...
Structure that...
Managementsystems that...
Culture that...
Source: M. Treacy and F. Wiersema The Discipline of Market Leaders Addison-Wesley: Reading MA, 1995
Which Discipline to Choose?
Operational Excellence
When practicing the operational excellence discipline, it is necessary to balance the need to respond to consumer and competitor changes in the marketplace A company must tradeoff consumer
heterogeneity, slowing demand and product proliferation if the core discipline is to be maintained
• Economies of scale, efficiency are crucial• Mass market is competitive space
Product Leadership
When practicing the product leadership discipline, the firm must be willing to cannibalize existing products, but the focus should be on providing consumers with a reason to “trade up” to the product innovation rather than “trade down” Product innovation must be constant Continual investment is necessary Requires partners’ cooperation
Customer Intimacy
When practicing the customer intimacy discipline, the firm aims to serve a small segment who pay a high premium Customer intimacy cannot be achieved on a
large scale The smaller the segment, the higher the
price charged, the higher the quality of the product or service
Choosing a Discipline
Operational Excellence
Product Leadership
Customer Intimacy
BIC GilletteBritish
Airways
Wal-Mart AppleAmerican Express
Toyota BMW Lexus