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Lecture notes - Consumer Marketing
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All Consumer Marketing (Msc Marketing) lecture notes together in one convenient document. It also contains worked out examples discussed in class.
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Consumer marketing .................................................................................................................... 1
Session 1: Introduction to consumer marketing ................................................................................. 2
Session 2: Understanding consumers ............................................................................................... 4
Session 3: Consumer attention, perception and memory ................................................................... 7
Session 4: Consumer behavior refresher ..........................................................................................11
Session 5: The art of choosing .........................................................................................................15
Session 6: Guestlecture AH and Midterm review...............................................................................20
Session 7: Price promotions ............................................................................................................22
Session 8: Influence & persuasion ...................................................................................................27
Session 9: Ethics of marketing .........................................................................................................31
Session 10: Customer loyalty ..........................................................................................................34
Session 11: Consumer happiness ...................................................................................................38
Session 12: Consumer Marketing Final Review .................................................................................41
,Session 1: Introduction to consumer marketing
Mini case – Milkshake
Where is the problem? Reasons for lower demand:
• Competitor – alternatives?
• Customers - satisfied?
• Seasonality?
• Previous (communication/ads)? à Demographics?
• Product availability?
• Product variability?
• Product quality?
• Trends (healthy)?
• Brands?
• Others are using it (social proof)
• Trustworthiness (seller, in secondary markets).
What is your number one goal in this problem? To understand our customers better, because we
want to know the needs of the customer.
“Somewhere between 75 and 85 % of all new products launched into the market don’t succeed
financially.” Why? The reason is they don’t target a job that people are trying to get done.
Jobs to be done (JTBD) is a simple framework that puts emphasis on the “why” behind what a
customer is doing. It focuses on identifying enduring consumer needs to develop products that
have a lasting impact. It gives a unit of focus, the job the customer is looking to do, to build
measurable ways of looking at the success that do not change over time. The products need to
meet the metrics important to the customers. You are not trying to just solve the consumer
problem. You are first trying to figure out what the right problem is. Good products do not sell
themselves. Good innovations solve problems that formerly had only inadequate solutions or no
solution.
• “Job” is shorthand for what an individual really seeks to accomplish in a given
circumstance.
• “Job” is defined as the progress that a person is trying to make in a particular
circumstance.
• People hire a product to get a job done. The term “hire” expresses the fact that
customers use a product until the task is completed.
• The product or product category does not play a role in completing the customer job.
Customers judge solutions by how well they get the job done. Solutions are always
temporary as consumers switch product categories when another one does the job
better.
• The circumstances are more important than customer characteristics or product
attributes.
• Jobs are never simply about function – they have powerful social and emotional
dimensions.
Applying JIBD to the mini caseà Customers think that they know what they want, but what are
they actually doing. Is there something cheap and easy that you can do? Think about consumer
behavior à Increase the size or they started to make the straws a little bit smaller, it’s harder to
drink the milkshake.
2
,Relevant customer needs are often latent needs à What is crucial for purchase decisions is
often not the needs that customers are aware of and mention when asked, but rather latent
needs unconscious or hard to articulate wished, desires, dreams, fears etc.
The job of a body wash (AXE)à If it’s cleaning everybody can compete, but why do they buy AXE?
• Functional needs: cleaning.
• Emotional needs: feel good about yourself.
• Social needs: self-confidence.
It is a combination of needs that you have to focus on.
Advantage of the JTBD logic for customer needs:
- It shifts the perspective to the customer.
- It frees the view on your real competitors.
- It has predictive power as it is solution-free.
Why are they hire my product for?
Questions you can ask to uncover jobs your customers need help with? Think of usage,
demographic question, needs or when do you use it, when is the last time you used the product.
1. What progress is the person trying to achieve? What are the functional, social and
emotional dimensions of the desired profess?
2. What are the circumstances of the struggle? Who when, where, while doing that?
3. What obstacles are getting in the way of the person making that progress? What tasks do
people want to avoid? Where do you see nonconsumption?
4. Are consumers making do with imperfect solutions through compensating behavior? Are
they buying and using a product that imperfectly performs the jobs? Are they cobbling
together a workaround solution involving multiple products? Are they doing nothing at all
to solve the dilemma (e.g. where do you see the nonconsumption)?
5. How would they define what ‘quality’ means for a better solution, and what trade-ofs are
they willing to make?
Takeways:
• Jobs-to-be-Done is a simple framework that puts emphasis on the “why” behind what a
customer is doing. It focuses on identifying enduring consumer needs to develop
products that have a lasting impact.
• It gives a unit of focus — the job the customer is looking to do — to build measurable
ways of looking at success that do not change over time. The products need to meet the
metrics important to the customers.
• You are not trying to just solve a consumer problem. You are first trying to figure out what
the right problem is.
• Good products do not sell themselves.
3
, Session 2: Understanding consumers
DMU (decision making unit) is people/person who makes the decision. DMP is the decision-
making process (triggers). So, in summary, the DMU involves the group of individuals
responsible for making purchasing decisions, while DMP is the specific product or service that
they are considering for purchase.
Key thoughts consumer behavior exercise:
1. A mundane product or service costing less than €10 à Automated process, because you
buy it every time (no energy for it). Price matters: lower prices à less value. Products are
quite similar. We buy it often, so there is a pain in paying the price. Functional needs.
2. A product or service costing over €100 that, the customer feels, reveals something about
the kind of person they are à Social and Emotional needs. Brands important: trust you
know what to expect, quality is proven, experience (distinguish), value, availability.
The AIDA model, tracing the customer
journey through awareness, interest,
desire and action, is one of the best-
known used marketing frameworks.
Marketeers often find AIDA valuable as it
helps in planning our marketing
communication strategy, whether
consciously or subconsciously. Diferent
advertisement strategies are applied at
each stage of the funnel to efectively
guide potential customers through the process. To keep prospects moving through the funnel,
you might adjust the product slightly or implement promotions and loyalty programs, but these
tactics are not suitable for the awareness stage. Instead, you need to identify and address any
bottlenecks in the funnel.
• Awareness: your prospects (potential customer) become aware of the existence of your
product or service for the first time. Marketing tactics:
o Ads with emotions: Use emotions to leave a lasting impression (e.g., funny,
touching, or inspiring ads).
o Social media campaigns: Viral posts or challenges to capture attention.
o Influencer marketing: Collaborate with influencers to reach new audiences.
o Display ads: Place ads on websites with large trafic to increase visibility.
o Event sponsorship: Associate your brand with popular events or charitable
causes.
• Interest: your prospect becomes interested in learning more about your product or
service. Marketing tactics:
o Blog post or articles: Content that ofers solutions to problems your product
solves.
o How to video’s: Educational videos showing how to use your product.
o E-books or whitepapers: In-depth information about your product or a relevant
industry
o Social media engagement: Share polls, questions, and informative posts that
engage your target audience.
o Newsletters: Send valuable information and updates to keep customers
interested.
• Desire: your prospect develops a hankering or a preference to purchase your product.
o Product demonstrations: Live or recorded demos showing your product in action.
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