03-Jan-19

Lecture 1: Introduction to
consumer behaviour and
marketing strategy
DINH Tien Minh, Ph.D

Learning Outcomes
• Review the basic concepts of marketing
• Understand the concept of consumer behavior and situational
influences which may impact each stage of the decision
making process for the consumer;
• Understand the internal influences on consumer decision
making;
• Understand the external influences on consumer behavior
including family, household, social class and culture;
• Understand the importance and application of consumer
behavior to marketing strategy.

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BASIC MARKETING
CONCEPTS IN CB
• What is the marketing?
• Marketing is a process by which companies create value
for customers and build strong customer relationships to
capture value from customers in return

BASIC MARKETING
CONCEPTS IN CB

All Those
Bicycles!

More than Selling and Advertising

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Analyze Needs

Predict Wants

Estimate Demand

Predict When

Determine Where

Estimate Price

Decide Promotion

Estimate Competition

Provide Service

BASIC MARKETING
CONCEPTS IN CB
• What is the marketing process?

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BASIC MARKETING
CONCEPTS IN CB
• What is the marketing process?
• R --> STP Strategy --> Marketing mix Tactics --> I --> C

BASIC MARKETING
CONCEPTS IN CB
Product

Price Ads
Marketing Mix
Sales
Place
promotion
Personal Press
Promotion
selling conference
Direct
Event
Marketing
Charity/
PR
Sponsor

Crisis

Evaluation

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BASIC MARKETING
CONCEPTS IN CB
• Need: describes
Self basic human
Maslow’s Hierarchy
Actualization
(Self-development)
requirement
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

BASIC MARKETING
CONCEPTS IN CB
• States of deprivation

Needs • Physical—food, clothing, warmth, safety

Wants • Form that needs take as they are shaped by

Demands • Wants backed by buying power

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BASIC MARKETING
CONCEPTS IN CB
• Products: Anything that can be offered to someone to
satisfy a need or want.
• Tangible and intangible products
• Value: The consumer’s assessments of the product’s
overall capacity to satisfy their needs.
– Benefits/costs

BASIC MARKETING
CONCEPTS IN CB
• Customer expectations: are based on past buying
experiences, the opinions of friends, supplier
information and promises.
• Highly satisfied customer make repeat purchases, less
price sensitive, remain customers longer, and talk
favorably to others about the company and its products
(positive WOM).
• Customer # Consumer

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BASIC MARKETING
CONCEPTS IN CB
• Satisfaction: The extent to which a product’s perceived
performance matches a buyer’s expectations.
• If the product’s performance falls short of expectation, the
buyer is dissatisfied. If performance matches or exceeds
expectations, the buyer is satisfied or delighted.

BASIC MARKETING
CONCEPTS IN CB
• Customer Value and Satisfaction
• Expectations
Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low

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BASIC MARKETING
CONCEPTS IN CB
• Value proposition: Set of
benefits or values a
company promises to
deliver to customers to
satisfy their needs

BASIC CONCEPTS OF CB
Definition: Consumer behavior is the
actions a person takes in purchasing and
using products and services, including the
psychological and social processes that
come before and after these actions.

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BASIC CONCEPTS OF CB
Model of Consumer Behavior

Source: Philip Kotler & Gary Amstrong, 2014

BASIC CONCEPTS OF CB

Source: Philip Kotler & Gary Amstrong, 2014

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BASIC CONCEPTS OF CB
Colgate Ad
How can marketers
change attitudes?

BASIC CONCEPTS OF CB

Pierce Brosnan
for Omega
Why use a celebrity
spokesperson?

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BASIC CONCEPTS OF CB
• Buyer Decision Making Process

Source: Philip Kotler & Gary Amstrong, 2014

BASIC CONCEPTS OF CB
Adoption process is the mental process an
individual goes through from first learning
about an innovation to final regular use.
• Buyer Decision Process for New Products:

Awareness Interest Evaluation Trial Adoption

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CB IN MARKETING PROCESS

THANK YOU

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