Marketing Management: Key Concepts, Strategies and Consumer Behavior

Consumer Decision-Making and Marketing Foundations

Consumer decision-making involves an evaluation of the difference between brand beliefs and purchase behavior, classified by high and low involvement and brand differences. The main types are:

• Complex buying behavior (high involvement, significant brand differences)
• Dissonance-reducing buying behavior (high involvement, few brand differences)
• Variety-seeking buying behavior (low involvement, significant brand differences)
• Habitual buying behavior (low involvement, few brand differences)

The buying decision process includes problem recognition (the want-have gap, needs), information gathering (internal and external sources, attributes, reactions), definition of market and interest (purchase function, marketing plan, campaigns, sales process), design of customer relationships, and evaluation, satisfaction and purchase.

Post-Purchase Behavior and Loyalty

Customer retention depends on repeat purchases and loyalty, which are shaped by quality, value, experience and popularity. Consumers may reject or cancel purchases based on awareness, importance, difference, and relevance.

Market Segmentation, Targeting and Positioning

Segmentation Process

Effective segmentation requires defining the market, identifying attributes, researching perceptions, determining combined attributes and developing a positioning concept. Segmentation criteria include:

• Demographic and geographic variables
• Behavioral variables: usage, benefits sought, knowledge, occasion, loyalty status
• Psychographic variables: activities, interests, opinions, personality, attitudes and values

Targeting and Positioning Strategies

Targeting strategies include undifferentiated (mass), differentiated, concentrated (niche) and micromarketing (individual or local) approaches. Selecting a strategy depends on company resources, product variability, product life cycle, market variability and competitive strategies.

Value Proposition and Customer Relationships

Marketing satisfies needs, wants and demands. A strong value proposition creates customer value by understanding the market, designing strategy, delivering value and building profitable customer relationships.

Marketing orientations include production, product, selling, marketing and societal marketing concepts.

Strategic Planning and the Marketing Mix

Strategic planning involves developing and maintaining a strategy that fits organizational goals, supports objectives, and includes business portfolio analysis and detailed marketing plans.

• 4Ps: Product, Place, Promotion, Price
• 5Cs: Customer, Company, Competitors, Collaborators, Context

Profit growth strategies include market penetration, market development, product development and diversification.

Marketing Environment

Microenvironment

Includes the company, suppliers, marketing intermediaries, competitors, customers and publics.

Macroenvironment

Includes demographic, economic, natural, technological, cultural, political and social forces.

Buyer Roles and Adoption

Buying roles include initiator, influencer, decider, buyer and user. The adoption process moves through awareness, interest, evaluation, trial and adoption. Innovators, early adopters, early majority, late majority and laggards describe adoption categories.

Adoption rates depend on relative advantage, compatibility, complexity, divisibility, communicability, and perceived cost, risk, uncertainty and social appropriateness.