Aim of Business

The business of business is getting and keeping customers Peter Drucker.

Selling

Everyone lives by selling something, whatever be ones right to it R.L. Stevenson

Marketing

The business of Marketing is to meet and satisfy target customers needs and wants.

Consumer Behaviour
The field of Consumer Behaviour studies how individuals, groups, and organisations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Individual Consumer
I am large I contain multitudes I contradict myself
Walt Whitman

Understanding..
Understanding consumer behaviour or knowing customers is not easy. But, all -- large to medium to small organisations -- stand to benefit from understanding how and why their customers buy.

Goals of CB
Dependent Variable (macro level) A strategy to market products, services, ideas, and experiences that fit in with the everyday lives of the consumers.

Goals of CB
Independent Variables
Consumer Decision process Consumer Purchase process Consumer Consumption process Consumer Perception process Consumer Learning process Environmental Influences on the consumer Marketing firms Offerings & Activity levels

Goals of CB (Micro level)

Dependent Variable: Consumer Decision process Independent Variables
Types of purchase Involvement levels Willingness for Info search Thought processes (attitude, perceptions, ) Emotional processes (personality) Characteristics( demographics, lifestyle) External environment ( culture, subculture, family, reference groups, marketing organisations)

Basic Functions
Businesses have only two basic functions: Innovation, and Marketing
Peter Drucker

DIG Model
Demand-first Innovation and Growth
Erich Joachimsthaler: Hidden in Plain Sight Customer-advantage, find the demand-ecosystem by finding out how the product or service fits into the everyday lives of the consumers.

Four Types of Consumer Behaviour

High Involvement Decision making
Decision Process Complex Decision making Hierarchy of effects Beliefs Evaluation Behaviour Theory Cognitive Learning Decision Process Brand Loyalty Hierarchy of effects (Beliefs) (Evaluation) Behaviour Theory Instrumental Conditioning

Low Involvement
Decision Process Limited Decision making Hierarchy of effects Beliefs Behaviour Evaluation Theory Passive Learning Decision Process Inertia Hierarchy of effects Beliefs Behaviour (Evaluation) Theory Classical Conditioning

(Conscious)

Habit

( Unconscious Decision making)

Internet Usage

Country or Region

Internet Users, Latest Data

Penetration (% Population)

% of World Users

Broadband Subscribers

Broadband Penetration

United States China Japan Germany India United Kingdom

210,575,287 162,000,000 86,300,000 50,426,117 42,000,000 37,600,000

69.7 % 12.3 % 67.1 % 61.1 % 3.7 % 62.3 %

18.0 % 13.8 % 7.4 % 4.3 % 3.6 % 3.2 %

58,136,577 35,300,000 25,755,080 14,085,232 2,100,000 12,993,354

19.3 % 2.7 % 20.0 % 17.1 % 0.2 % 21.5 %

2 3 4 5 6

7
8 9 1 0

Brazil
Korea (South) France Italy

39,140,000
34,120,000 32,925,953 31,481,928

21.0 %
66.5 % 53.7 % 52.9 %

3.3 %
2.9 % 2.8 % 2.7 %

5,846,000
14,042,728 12,699,000 8,638,873

3.1 %
27.4 % 20.7 % 14.5 %

1 1
1 2 1 3 1 4 1 5 1 6 1 7 1

Russia
Mexico Canada Indonesia Spain Vietnam Turkey Australia

28,000,000
22,700,000 22,000,000 20,000,000 19,765,033 16,511,849 16,000,000 15,085,600

19.5 %
21.3 % 67.8 % 8.9 % 43.9 % 19.4 % 21.1 % 71.9 %

2.4 %
1.9 % 1.9 % 1.7 % 1.7 % 1.4 % 1.4 % 1.3 %

1,200,000
3,728,150 7,675,533 n/a 6,654,881 n/a 2,773,685 3,939,288

0.8 %
3.5 % 23.7 % 0.3 % 14.8 % n/a % 3.7 % 18.8 %

Demographics of Web Use(US)

Demographic 1996 Online characteristi users cs Males Females Average Household income 62% 38% $62,700 2001 Online users 49% 51% $49,800 2006 Online users 51% 49% <$40,000 Incidence in US Population 49% 51% $40,816

Adults 18-49
Adults 50+

88%
12%

76%
24%

63%
37%

Trends
Transumers Infolust Uber Premium Hygienia Connecting lifestyles, Participative lifestyles, Eco- lifestyles Facebook, Twitter,Gather, Digg, Myspace, Orkut Instant Messaging: Meebo, AIM, Yahoo messenger, Live Messnger, Google Talk Mobile Web Exploding TV iPod, iTunes, iPhones Blogging Youtube

Clinical Psychology
Studies the individual within the framework of childhood frustrations and conflicts. Adult behavior is largely shaped by the manner in which these conflicts are resolved. Various theories of personality have been developed, the most famous of which is Sigmund Freuds. Freud emphasized the need to channel basic drives (the id) into socially approved outlets through the superego, resulting in repression of these desires. The ego is the mediator of the conflict between unrestrained needs and social constraints.

contributions
methodological contributions in the development of projective techniques and depth interviews. provided insights into consumer motivations, particularly if there are deep-seated, repressed, or unconscious motives.

Experimental psychology
Has contributed to the development of learning theories. A brand (stimulus) is purchased (response). If the consumer is satisfied, a positive association is developed (reinforcement) and the consumer is likely to repeat the response. Learning theories provide insights into the development of habit. They have been used in advertising to demonstrate that repetitive messages can strengthen the connection between the advertising symbols and the product.

Social psychology
Studies the individual in a group environment. The emphasis is on the development of needs, attitudes, and perceptions. A more cognitive view of consumer behavior, viewing it as problem solving rather than as a series of connections between stimulus and response. These views are important in consumer behavior since they provide a basis for studying consumer decision making and measuring the components of the decision process such as attitude formation and perceptions.

Sociology
Much of what we buy is influenced by group norms and values. Studies the nature of groups, the individuals role within a group, and the norms and values developed by groups. Understanding of communications within and between groups. Concepts of opinion leadership and diffusion of new ideas and innovations. A framework for better understanding group decision making.

Cultural Anthropology
Studies the beliefs, values, and customs that regulate the behavior of members of a particular society. Provides a framework for determining how cultural values influence buying decisions. Study of subcultures Insights into the implications of international marketing

Intuitive Mind
The intuitive mind is a sacred gift; and the rational mind is a faithful servant. We have created a society that honours the servant, and has forgotten the gift
Albert Einstein

Marketing
Marketing typically is the task of Creating Promoting and Delivering Goods and Services to Consumers and Businesses.

Definition of Mktg
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.
American Marketing Association

Ten Entities Marketed

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Goods Services Experiences Events Persons Places Properties Organisations Information Ideas

Product
Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns

Price
List Price Discounts Allowances Payment Period Credit Terms

Physical Distribution
Channels Coverage Assortments Location Inventory Transport

Promotion
Sales Promotion Advertising Sales Force Public Relations Direct Marketing