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Market Research& Consumer BehaviourPart I Marketing BasicsMunich Business School (MBS)Market Research and Consumer Behaviour - Instructor Sven J. MattenFall / Winter - 2005 / 2006A Simple Marketing SystemMarket Research & Consumer BehaviourChart 2 - Sven J. Matten 2005 / 2006Structure of Flows in a Modern Exchange EconomyMarket Research & Consumer BehaviourChart 3 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThe Four P Components of the Marketing MixChart 4 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourMarketing-Mix StrategyChart 5 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourContrasts Between the Sales Concept and the Marketing ConceptChart 6 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourOld Economy New EconomyOrganize by product unitsFocus on profitable transactionsLook primarily at financial scorecardFocus on shareholdersMarketing does the marketingBuild brands through advertisingFocus on customer acquisitionNo customer satisfaction measurementOverpromise, underdeliverOrganize by customer segmentsFocus on customer lifetime valueLook also at marketing scorecardFocus on stakeholdersEveryone does the marketingBuild brands through behaviorFocus on customer retention and growthMeasure customer satisfaction and retention rateUnderpromise, overdeliverChart 7 - Sven J. Matten 2005 / 2006Old Economy vs. New EconomyMarket Research & Consumer BehaviourMass Marketing vs. One-to-One MarketingMass Marketing One-to-One MarketingAverage customerCustomer anonymityStandard productMass productionMass distributionMass advertisingMass promotionOne-way messageEconomies of scaleShare of marketAll customersCustomer attractionIndividual customerCustomer profileCustomized market offeringCustomized productionIndividualized distributionIndividualized messageIndividualized incentivesTwo-way messagesEconomies of scopeShare of customerProfitable customersCustomer retentionChart 8 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourTools for Tracking and Measuring Customer SatisfactionComplaint and suggestion systems:Customer satisfaction surveys:A customer-centered organization makes it easy for customers to register suggestions and complaints. Some customer-centered companies-P&G, General Electric, Whirlpoolestablish hot lines with toll-free numbers. Companies are also using Web sites and e-mail for quick, two-way communication.Studies show that although customers are dissatisfied with one out of every four purchases, less than 5 percent will complain. Most customers will buy less or switch suppliers. Responsive companies measure customer satisfaction directly by conducting periodic surveys. While collecting customer satisfaction data, it is also useful to ask additional questions to measure repurchase intention and to measure the likelihood or willingness to recommend the company and brand to others.Chart 9 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThe Generic Value ChainChart 10 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourLevi Strausss Value-Delivery NetworkChart 11 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThe Strategic-Planning, Implementation, and Control ProcessChart 12 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourProduct-Oriented versus Market-Oriented Definitions of a BusinessCompany Product Definition Market DefinitionMissouri-Pacific RailroadWe run a railroad We are a people-and-goods moverXerox We make copying equipmentWe help improve office productivityStandard Oil We sell gasoline We supply energyColumbia Pictures We make movies We market entertainmentEncyclopaedia We sell encyclopedias We distribute InformationCarrier We make air conditioners and furnacesWe provide climate control in the homeChart 13 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThe Boston Consulting Groups Growth-Share MatrixChart 14 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThree Intensive Growth Strategies: Ansoffs Product-Market Expansion GridChart 15 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourFactors Influencing Company Marketing StrategyChart 16 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourThe Marketing Research ProcessChart 17 - Sven J. Matten 2005 / 2006Market Research & Consumer Behaviour1. Upper Uppers(less than 1%)The social elite who live on inherited wealth. They give large sums to charity, run the debutante balls, maintain more than one home, and send their children to the finest schools. They are a market for jewelry, antiques, homes, and vacations. They often buy and dress conservatively. Although small as a group, they serve as a reference group to the extent that their consumption decisions are imitated by the other social classes.2. Lower Uppers(about 2%)Persons, usually from the middle class, who have earned high income or wealth through exceptional ability in the professions or business. They tend to be active in social and civic affairs and to buy the symbols of status for themselves and their children. They include the nouveau riche, whose pattern of conspicuous consumption is designed to impress those below them.Chart 18 - Sven J. Matten 2005 / 2006Characteristics of Major U.S. Social ClassesMarket Research & Consumer BehaviourStages in the Family Life Cycle1. Bachelor stage: Young, single, not living at homeFew financial burdens. Fashion opinion leaders. Recreation oriented. Buy: basic home equipment, furniture, cars, equipment for the mating game； vacations.2. Newly married couples: Young, no childrenHighest purchase rate and highest average purchase of durables: cars, appliances, furniture, vacations.3. Full nest I: Youngest child under sixHome purchasing at peak. Liquid assets low. Interested in new products, advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sleds, skates.4. Full nest II: Youngest child six or overFinancial position better. Less influenced by advertising. Buy larger-size packages, multiple-unit deals. Buy: many foods, cleaning materials, bicycles, music lessons, pianos.Chart 19 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourChart 20 - Sven J. Matten 2005 / 2006MaslowsHierarchy of NeedsMarket Research & Consumer BehaviourFour Types of Buying Behavior High Involvement Low InvolvementSignificant Differences between BrandsComplex buying behaviorVariety-seeking buying behaviorFew Differences between BrandsDissonance-reducing buying behaviorHabitual buying behaviorChart 21 - Sven J. Matten 2005 / 2006Steps Between Evaluation of Alternatives and a purchase decisionMarket Research & Consumer BehaviourChart 22 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourHow Customers Dispose of Products Chart 23 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourMajor Influences on Industrial Buying BehaviorChart 24 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourFive Forces Determining Segment Structural AttractivenessChart 25 - Sven J. Matten 2005 / 2006Market Research & Consumer BehaviourA Competitors Expansion PlansChart 26 - Sven J. Matte