1ST SLIDE - American Heritage Online dictionary

Momay: defines demographic as

- Good day everyone! I’m Rose Mary - “the characteristics of human
Quiambao the leader of group 1 and populations and population segments,
we will be discussing Module 5 with especially when used to identify
the title Understand Consumer and consumer markets.”
Business Markets. - Although it is impossible for a
marketer to react to the particular
ND
2 SLIDE profile of a single consumer, it is
- We start with the desired learning possible to identify factors that tend
outcomes that we should be able to to influence most consumers in
know at the end of this discussion. predictable ways.
(read the 5 desired learning outcomes) - For example, the needs of men
and women are different in
rd
3 SLIDE perspective to cosmetics;
Momay: - a low-income person would be
We could now start; I will be much greater when considering a
discussing internal forces that could new automobile as opposed to a
affect consumer choices. These is loaf of bread;
considered as the most difficult factor - A young individual may
to understand because no two people purchase products differently
make a decision in exactly the same with an old individual
way. As individuals, we have inherited  There are 2 reasons that could be helpful
and learned a great many behavioral in order to understand demographics of
tendencies: some controllable, some the target market
are beyond our control. - First is knowing the personal
characteristics using broad
th
demographic studies
4 SLIDE
- Once a company has this data, the
Next are the examples of internal forces
company can develop well-defined
first is Personal characterics these are
strategies about how to reach each
the age, profession, occupation, the
population.
lifestyle and gender of an individual
 - In other words, demographics tells * A person in the middle class makes his
companies exactly how to market and buying decisions based on utility.
develop their brands so people in the However, someone from the upper
class would want style, design and
demographic environment will
special features while making a
respond. purchase.
- For instance, if people in the * Education affects how people view
demographic environment tend to be things around them.
busy, young workers, then a company * The more educated a person is, the
might promote the quick use and higher the level of discretion he will
convenience available with the employ in making purchases.
product. People’s preferences can change with
education. Every customer is well
 Another reason is these personal informed in this era. However, the
characteristics like age, income and more educated ones take more time
education play a critical role in before deciding a purchase.
consumer decision.
 Consumer behavior is affected as these
factors change. You can observe a
change in the consumer behavior of
someone who has grown richer or more 5th SLIDE
educated. Another example of internal forces is
 As people grow, their needs change. the life cycle stage or the age.
Similar changes come to their buying Marketers recognize that families
decision making patterns. With age, operate as units in terms of buying
our health needs change and so do behavior
many other needs. Age brings changes  The emotional and intellectual stages
to people’s lifestyle and with it their you pass through from childhood to
your retirement years as a member of
needs and personal values are also
a family are called the family life
affected. cycle.
* Income is a very important factor that  In each stage, you face challenges in
affects the buying decisions and your family life that allow you to
consumer behavior of people. build or gain new skills.
* Across different income levels, the  Gaining these skills helps you work
difference in product choices and through the changes that nearly
buying patterns can easily be seen. every family goes through.
 * The occupation of an individual
Nicoleih Salazar, will
plays a significant role in influencing be the next reporter
his/her buying decision.
* An individual’s nature of job has a
direct influence on the products and
brands he picks for himself/herself.
* marketers identify target groups
based on an individual’s position in
an organization.

7th SLIDE
Leih:
6th SLIDE Psychological Attributes is the process
 The fourth internal force is the that involves on how our thoughts,
lifestyle of an individual. beliefs, feelings, and perceptions
 Each consumer don’t experience influence how we buy and relate to
the same lifestyle. goods and services.
 It refers to the target market’s One formal definition of the field
pattern or living in the world describes it as "the study of
combined with his or her individuals, groups, or organizations
psychographics (such as a set of and the processes they use to select,
attitudes, opinions, aspirations, and secure, use, and dispose of products,
interests). services, experiences, or ideas to
satisfy needs and the impacts that
 Lastly the gender roles, Out of the these processes have on the consumer
many aspects that can influence a and society.
customer’s decision-making
behavior, one of the major factors is  Next is Motivation
gender.  A motive is the inner drive or
 Men and women approach shopping pressure to take action to satisfy a
with different motives, perspectives, need. A highly motivated person is a
and considerations. very goal-oriented individual.
Whether goals are positive or
negative, some individuals tend to
have a high level of goal orientation,
 while others tend to have a lower human intimacy, and family.
level of goal orientation. They involve a person’s
 For motivation to be useful in interaction with others and the
marketing practice, it is helpful for need to feel accepted by social
marketing managers to understand groups, large or small.
how motivation plays into a specific o Self – esteem is the 4th level. It
purchasing situation includes the need to feel good
 what triggers consumers to set goals, about oneself, to be respected
take action, and solve their need- and valued by others, and to have
based problems. a positive self-image.
o Self – actualization is the 5 th and
8th SLIDE the highest level in Maslow’s
Leih: needs hierarchy this is the need
 Here’s the table of Contemporary humans feel to reach their full
theory of motivation potential and to accomplish all
 1st theory is the Maslow’s Heirarchy that they can with their talents
of needs theory and abilities.
 Maslow developed a model that
have five different elements of  In this theory the marketing
human needs. These needs relate to implication is when an individual is
one another other in a “need not focused on the wants of his or
hierarchy,” with basic survival- her self not until he or she had the
oriented needs at the lower levels of basic necessity.
the hierarchy, building up to higher
emotional needs associated with Marketing implications
love, self-esteem, and self- - are changes in sales or other
fulfillment. results that can be expected from
o Physiological is the 1st level of a particular strategy.
this theory it focuses on the basic - For instance, a plan to
drives like hunger and thirst. communicate more openly with
o 2nd is the safety, and security customers has marketing
needs imply a continued implications of increased
fulfillment of physiological customer satisfaction.
needs, as well as the absence of - Marketing implications can be
the threat of physical harm positive or negative.
o Love/Social is the 3
rd
in the Another Theory is the Herzberg’s Two
theory. Love encompasses the -factor theory argues that there are two
needs for belonging, friendship, factors that an organization can adjust
 to influence motivation in the - needs concern our basic material
workplace. requirements for living.
1st factor is the Motivators, the - These include what Maslow
presence of motivators causes categorized as physiological
employees to work harder. They are needs (such as air, food, water,
found within the actual job itself. and shelter) and safety-related
 2nd factor is the Hygiene the abse nce needs (such as health, secure
of hygiene will cause employees to employment, and property).
work less hard. Hygiene factors are o Relatedness
not present in the actual job itself but - needs have to do with the
surround the job. importance of maintaining
Its marketing implication is Satisfying interpersonal relationships.
hygiene factors does not create a loyal - These needs are based in social
employee or customer. For a company interactions with others and align
to really create satisfied employees it with
is important to focus on motivators. - Maslow’s levels of
love/belonging-related needs
(such as friendship, family, and
sexual intimacy) and esteem-
related needs (gaining the respect
of others).

o Growth
 needs describe our intrinsic desire
for personal development.
 These needs align with the other
Next theory is the Alderfer’s ERG portion of Maslow’s esteem-related
Theory needs (self-esteem, self-confidence,
Clayton Paul Alderfer is an American and achievement) and self-
psychologist who developed Maslow’s actualization needs (such as
hierarchy of needs into a theory of his morality, creativity, problem-
own. solving, and discovery).
Alderfer’s ERG theory suggests that
there are three groups of core needs:
o Existence
 Its marketing implication is People achieve something in what you do.
need a sense of belonging and social For example, if you are a lawyer it
interaction. is the need to win cases and be
 Creating a relationship with the recognized, if you are a painter it is
customers extends the customers’ the need to paint a famous painting.
satisfaction with the product. - It is the need that drives a person
to work and even struggle for the
objective that he wants to achieve.
- People who possess high
achievement needs are people
who always work to excel by
particularly avoiding low reward
low-risk situations and difficult to
achieve high-risk situations

2. The need for power is the desire

within a person to hold control and
authority over another person and
influence and change their decision in
accordance with his own needs or
desires.
- The need to enhance their self-
 The last theory is the McClelland’s esteem and reputation drives these
Achievement Motivation Theory people and they desire their views
explains the process of motivation by and ideas to be accepted and
breaking down what and how needs implemented over the views and
are and how they have to be ideas over others.
approached. 3. The need for affiliation is the urge of a
 David McClelland was an American person to have interpersonal and social
Psychologist who developed his relationships with others or a particular
theory of needs or Achievement set of people. They seek to work in
Theory of Motivation which revolves groups by creating friendly and lasting
around three important aspects, relationships and has the urge to be
namely, Achievement, Power And liked by others. They tend to like
Affiliation. collaborating with others to competing
1. The need for achievement as the with them and usually avoids high-risk
name itself suggests is the urge to situations and uncertainty
  Now let’s talk about Perception,
 The marketing implication is people are inundated with the
Companies can be successful information.
targeting one of three basic  So people use the process of
needs. perception in order to help them
manage the flow of the environment
 Perception is the system to organize
and also interpret in order for the
information to be useful in the
environment.
Mary Jane Sigrid
Martinez will report the
9th SLIDE External factors that
Leih:
 Next is the attitude it is defined as
shape consumer choices
learned predisposition to respond to
an object or class of objects in a
consistently favorable or unfavorable
way.
 There are key points from the
definition
* First is that a predisposition
consumer has attitude toward a
product or service.
* For example, consumers might
be skeptical about the value of a
new type of technology. Or they
might hold a negative opinion
about a particular brand due to
past experiences.
* Second is, Attitudes can be
general, meaning they are present
in all consumer groups, or they
might vary among different
groups.
th
10 SLIDE
Leih:
 13th SLIDE
Sig:
 Nonverbal communication is a
11th SLIDE means of communication through
Sig: the use of facial expressions, eye
 Besides the internal factors, behavior, gestures or any other
external factors also influence body language
consumer behavior.  One type of these is the positive
 These factors are not individualistic nonverbal communication during a
and are external to the individual. presentation.
 Eye must be focus on the audience
12th SLIDE or sometimes on the card you are
Sig: holding or the notes
 First factor under external is the  Make sure that the contact to your
cultural factor audience is okay
 Culture is a primary driver of  Don’t forget ko smile in order for
consumer behavior because it your audience that you have
teaches values and product willingly talk to them
preferences and, in turn, affects  Steady breathing, if nervous do not
perceptions and attitudes. give much tension the your
audience.
Marketers need to be aware of culture  Moving closer to the one whom you
for two reasons: are talking gives meaning that you
 First is the that knowing the culture have your 100% attention
of the target market is very
important when doing an Another type is the negative nonverbal
marketing strategy communication, during a presentation
 Second is that when you fail to you should avoid doing stuttering,
understand the cultural norms may swaying, looking at your watch,
have a negative effect on the fidgeting
product’s acceptance
 These are time-sensitive and interact
with both internal and external factors
14th SLIDE to affect change in the consumer.
Sig: Because they are situational, they are
While culture affects people in many difficult, if not impossible, for the
ways, here are the 3 factors that are marketer to control.
particularly relevant in consumer However, it is possible to mitigate
behavior: their effects with a good marketing
1. First is the language, this is a strategy.
essential in cultural building block.
It is the most important to 17th SLIDE
understand and making sure that the Sig:
words are being understood  Let’s proceed, here are the situational
correctly. factors
2. Second is the cultural values, these  First is the physical surroundings,
are principles that are shared by a people are profoundly affected with
society. In US, the obligation to the the physical surroundings.
family is often limited to an  physical factors such as a store’s
individual’s immediate family. buying locations, layout, music,
lighting, and even smells.
15th SLIDE
 Companies try to make the physical
Sig:
factors in which consumers shop as
3. Lastly, the nonverbal
favorable as possible.
communication, Americans and
 If they can’t, they utilize other tactics
Western Europeans place a high
such as discounts.
value on time and view it in discrete
blocks of hours, days, and weeks.  Second, the personal circumstances, an
As a result, they focus on individual’s behavior is filtered
scheduling and getting as much through the use of his or her
done in a given period as possible. immediate personal circumstances.
Latin Americans and Asians, on the  Lastly, the time this is a critical factor
other hand, view time as much more that affects individual throughout the
flexible and less discrete. process.
 For many people, time is a resource to
16th SLIDE be used, spent, or wasted and, for these
Sig: people, the issue is not always the best
Let us now talk about Sitiuational price but, rather, the best service
Factors
 Angelica Quito will report a family with adolescents, launching
the children, and a family in later life.
the Social Factors that
affect consumer behavior 20th SLIDE
Fhaye:
 Another group is the social class, in
18th SLIDE every society people are
Fhaye: knowledgeable of what their social
 Let’s now talk about the Social status is but when explaining the
factors that affect the consumer social class system to someone who
buying behavior. does not belong to the group is quiet
 We all know that humans are social challenging.
beings meaning they cannot live  Most of the people, already know
alone. Every individual seeks about social status in their early age.
communication and as people who Family, school, friends and media
move through life they are being have contributed to it.
affected by different social factors  There are 2 factors that drive social
these includes like family, the social status
class and many other  First, success-driven factor have the
greatest effect on the social status
19th SLIDE that includes the education, income
Fhaye: and occupation of an individual.
 First is the family, it is a group of  Second, is Innate factors but they do
individual that are important in the not result from anything the
buying group because they individual has done but rather the
influence the consumer buying characteristics of the individual that
process. Family is consist of two or were inherited from birth.
more people living together with a
relation to birth, marriage or 21st SLIDE
adoption Fhaye:
Household life cycle or the HLC is a  Next is the consumer decision –
series of stages through which making process, everyday people
a family may pass over time. make various of consumer
Typical stages in family development decisions. From the time that they
include the periods of a single young get up in the bed through the food
adult, a newly married couple, that they will intake up until the
a family with young children, activities before going to bed,
 people are choosing products as a consumer decision –
result of a decision making process.
 It has a vital role with the marketers making process
that are trying to create an effective
marketing strategy.

22st SLIDE
Fhaye:
 The first process is the problem
recognition
 In every purchase decision made
by an individual is connected
with a problem or need that
drives the consumer decision-
making process
 These problems or needs are the
result of the differences between 23nd SLIDE (Nikka)
a person’s real and preferred  The next in the process is the search
states. for information
 After recognizing the problem and
Here are the reasons why marketers the action is required, people will
need to understand problem gather information in order to choose
recognition: the best decision.
 First, it is important to know  Information sources has 2 types:
about the problems and needs of  First type is the internal information
the target market in order to source, all of the information are
create value-added products.
being stored in the memory of an
 Second, it is an key element of an individual.
effective marketing strategy  This type is always the 1st place that
specially in terms of people consider for the information
communication. They are like their past experiences,
predicated on a good knowledge conversation, research, their
of problem recognition triggers. preexisting beliefs are create in each
individual’s internal database that is
Nikka Macabante will attached from them once the problem
continue to report the is recognized
 Second type is the external
information sources, these includes
 the independent groups they are the  Attitude-based choice involves the
one who can stand and operate on use of general attitudes, summary
their own another is the personal impressions, intuitions, or heuristics,
associations like our friends and and no attribute-by-attribute
family. External sources like comparisons are made at the time
marketer-created information and of choice.
experiences. Every organization’s
marketing communications 26th SLIDE (nikka)
represents one source among several  The last perspective will be the
external information source option. attribute – based choice these is the
th
24 SLIDE (nikka) most prevalent approach to the
product decisions, these attribute are
 Next in the process is the Evaluation products features or the benefits
of alternatives, consumers make being considered to the specific
products choices primarily from the 3 problem towards the purchase
perspective decision
 1st perspective is the emotion, their
decisions are based on attitudes
towards the product or based on the Ara Canlas will be the next
attributes that is included on the
product and depending on the reporter
situation. 27th SLIDE (ara)
 Years have passed these is the only  Product choice design is the end
factor that consumers began to result after evaluating product
developed. From there marketing alternatives is intended purchase
communication use the products to option.
target people with the use of images  Until the actual purchase is done, it
and words that could convey the is still an option because different
emotional connection. events could happen up until the
final purchase decision
25th SLIDE (nikka)  Physical Surroundings could affect
 Another perspective is the attitude – consumers decision making process.
based choice From the physical store colors to its
 Consumers regularly use their beliefs employees these may affect the
and values to direct their assessment, purchase decision. So consumers
they use products and brands where respond to the physical environment.
they use the existing attitudes.  Social Circumstances is the
communication at the time when
 purchase is being done. Doing channels of distribution where the
shopping is a social activity where consumer will do the purchase. For
people are influenced by the example, with this time of
communication during the purchase pandemic consumers are more
time. Trying out clothes alone is capable of doing e-commerce
different when you do shopping with because as the government have
a friend, sometimes you may like it announce we should not be going
but your friend does not like it. outside if we are not buying
 Another is time, it is the amount of essential goods.
time that an individual take for a  3rd is the question “how much”
purchase. Product purchase can be choosing the specific quantity that
done and affected by time pressure. will be bought some stores
The consumer is less willing to wait provides consumers an options of
for the best alternatives and more how much would they purchase. If
likely to purchase the acceptable the consumer has high income he
solutions. or she more likely to buy a greater
 State of mind, it is when a amount than the middle class
consumer’s state of mind during the earner.
th
time of purchase. Their moods on 29 SLIDE (ara)
the time of purchase could influence  The 4th is the question “when” it is
the decision. People in good mood the timing of the purchase where
most likely to browse and look but consumers make a difference in
when consumers are in their bad the final purchase price. Car
mood they are less tolerant and have dealers occasionally offers better
the chance to do impulse and deal usually at the end of the
compulsive purchase. month in order for them to meet
th
28 SLIDE (ara) the monthly quotas
 The final purchase decision is not a  Lastly the question “where” it is
single decision; rather the the mode of payment when the
consumer confront on 5 important final purchase has been done.
decision Selecting a mode of payment have
 1st decision is the question “what”. impact with the decision making
What would they select to the process of a consumer.
products or what brand is better.
Product feature may include in the
decision making process. Pauline Catacutan will be
 2nd is the question “where”. the last reporter
Choosing the right and convenient
30th SLIDE (pau) may vary considerably across
 Post – purchase assessment is being products.
done once the purchase is complete  For example while bicycles tend to be
and the buyer begin to analyze and given away, this is not true of
evaluate their decisions. Their phonograph records which are usually
attitudes change as they experience thrown away or stored. At present
and use the product that they have little is known about the factors that
been bought. influence the disposition choice made
 There are 4 critical characteristics of by the consumer.
post – purchase assessment  Last characteristics is the
 1st is the dissonance Businesses products,Post-purchase behavior is the
should consider reducing dissonance, final stage in the consumer decision
by anticipating some of the reasons process when the customer assesses
behind the regret and reassuring about whether he is satisfied or dissatisfied
these factors, through features / with a purchase.
benefits lists or customer stories and  How the customer feels about a
testimonials. purchase will significantly influence
 After purchase, a customer whether he will purchase the product
onboarding program can help the again or consider other products
customer feel more confident about within the brand repertoire.
the purchase by explaining about how  A customer will also be able to
to enjoy or use the product and giving influence the purchase decision of
a sense of belonging in a community. others because he will likely feel
 2 characteristic is the product use and
nd
compelled to share his feelings about
non-use, in the product use the the purchase.
marketers uses innovativeness,
regional variations and product 31th SLIDE (pau)
recalls. marketers need to understand  These will be the 2nd to the last slide of
how consumers use their products. the module and in this slide we will talk
Product nonuse occurs when a about, Organizational buying:
consumer actively acquires a product marketing to a business
that is not used or used only restricted  A lot of consumers believe that
to its potential use. marketing is focused on the ultimate
 The 3 characteristic is the product
rd
users of the product. This is at least in
disposition. There are various part to the fact that most people
alternatives for disposing of a product. experience marketing as a consumer.
In addition, the method of disposition
 Many companies sells products that end people while in B2C there are few
up as components in a finished people sometimes just one, it is
products. directly involved in the purchase
 For example, Lenovo, they provide IT making
solutions to companies worldwide. Its  For the 5th is the complexity of
product is not a component of another supply chain in B2B there is a
product but rather it help a business run direct from the supplier and to the
better. manufacturer while in B2C the
products move through the channel
32th SLIDE (pau) to reach the end consumer
 In this last slide of the module, I  Lastly the demand for products in
will be discussing the difference B2B the demand is derived from
between business and consumer the consumer and changes with the
markets consumer’s demand while in B2C
 They have 6 differences that affect Consumer perceptions about their
marketing strategy and tactics own needs mitigated by
 1st is when it comes with the environmental factors and
relationship with the customer, in marketing stimuli
Business to Business investing to
another company could maintain
personal relationship while in
business to market it is impersonal,
it exist through electronic
communication.
 The 2nd is the number and size of
customer in the B2B there are few
but larger customers while in B2C
has more customers but they only
buy a small quantity
 The 3rd is the geographic
concentration, in B2B suppliers are
located strategically by the buyers
while in B2C we could see them
anywhere.
 For the 4th one is the complexity of
buying chain in B2B there is a
complex process that could take a
long time and it involves more