\CONSUMER BEHAVIOUR

Basic concepts and definition

Objectives:

By the end of this lesson you will be able to:

Explain why marketing managers should understand consumer behavior

Define and explain basic concepts in the study of consumer behavior.

Introduction

Why is it difficult to market any product to consumers?

The reason is simple: Consumers are complex and constantly changing.

Not only is it difficult to figure what marketing program will work but also what worked yesterday may not work today.

Thus marketers must constantly improve their understanding of customers. Understanding consumer behavior and knowing your customers is never simple. Customers may say one thing but do another. They may not be in touch with their deeper motivation. They may respond to last minute influences. Some companies like Kenya Airways, Equity Bank, Microsoft, Coca-Cola e.t.c have stood to profit from understanding how and why their customers buy.

On the other hand not understanding your customer’s motivations, needs and preferences can hurt. In Kenya, companies like Elliott’s and Sang Yong Motors failed. Consider also the case of Kodak when it introduced its Advantage camera and proudly marketed it as a high-tech product but to a generation (usually referred to as middle-aged baby comers) for which the bells and whistles of new technology had lost their appeal. It was a costly bust.

Basic definitions and concepts

Marketing: Just to remind ourselves we can say that marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and business. The aim of all marketing is to meet and satisfy target customer needs and wants.

Activity: Students to write on their own more definitions of marketing

Consumers Behavior: At the beginning we attempted to explain the field of consumer behavior