Final - Consumer + Marketing Flashcards
Definition of
** Consumer**
- a person
- who purchases goods + services
- for personal use.
Consumer needs and wants
What is a need
something basic you need to survive
Eg: Food, Clothes, Shelter
Consumer needs and wants
What is a ** want**
something you desire
eg: You would like to have a new handbag or car
what is a Hierarchy
- A system
- where people or things
- are ranked
- one above the other
- according to status or importance
Maslow’s Hierarchy of Needs
- It is a theory of human motivation
- that has five basic levels of human needs
- which are ranked from low to high levels of needs.
- Our lower-level needs need to be satisfied first before our higher needs can emerge.
Maslow’s Hierarchy of Needs
Describing each level:
Level 1 = Water, food and shelter to survive.
Level 2 = Need to feel safe and protected.
Level 3 = Fulfilled → love and kindness in a certain social or religious group → feel accepted.
Level 4 = Confidence and reputation.
Level 5 = Reaching your full potential by learning from
others and growing.
Maslow’s Hierarchy of Needs - level 1
Physiological needs
These are basic things we need for survival
(eg water, food, shelter, air, basic clothing)
Maslow’s Hierarchy of Needs - level 2
Safety and Security needs
The need to feel safe and protected.
Physical and psychological safety in the form of stability, routine, health and the availability of healthcare and control of our environment and our lives
(eg locks, burglar bars/ a stable job, savings account, education)
Maslow’s Hierarchy of Needs - level 3
Love + Belonging
Needs of being loved, getting affection, feeling accepted and sense of belonging - good human relationships with our families or other people
eg friendship, family, sense of connection
Maslow’s Hierarchy of Needs - level 4
Self-esteem needs
Our need for respect and appreciation from ourselves or others.
These are separated into our self- esteem needs : self- confidence etc
And the need for status recognition from others, appreciation and respect and our needs that relate to our reputation.
(eg. Passing a grade, getting a certificate; making a sports team; reputation - cars, houses, jewellery)
Maslow’s Hierarchy of Needs - level 5
Self-actualisation needs
It’s the drive to become the best version of oneself and to achieve one’s highest potential in various areas of life.
(eg. Golf lessons, piano lessons, training, home- study classes )
Consumer rights and responsibilities
What is The Bill of Rights?
The Bill of Rights is a document that sets the basic
rights of every person, including the rights of a
consumer when buying products.
Consumer Protection Act Number 68 of 2008.
Gives consumers protection
Example: Refunds and internet delivery
Consumer rights and responsibilities
Consumer RIGHTS ?
(8)
- The right to satisfy basic needs
- The right to safety
- The right to information
- The right to choice
- The right to representation
- The right to redress
- The right to consumer education
- The right to a healthy
environment
Consumer rights and responsibilities
Consumer RESPONSIBILITIES ?
Every right comes with a responsibility
→ consumers MUST do their part.
Take responsibility for your actions and
know what your obligations are.
AIDA - model
Attention
Interest
Desire
Action
AIDA - Attention
A = Attention
Catches the eye
Draws attention
Use colour, illustrations, catch-phrases, music, humor, text to draw attention
Consumer rights and responsibilities
AIDA - Interest
I = Interest
Interest created – draws in consumer
E.g. stressing advantages or new qualities of product
Consumer rights and responsibilities
AIDA - Desire
D = Desire
Desiring product
Convince consumer the product will satisfy need or want
E.g. using images or text to emphasise status
Consumer rights and responsibilities
AIDA - Action
A = Action
Consumer acts – buys product or service
Use action words like: “Buy NOW” or “Do not wait” .
Advertisement must inform consumer where product / service can be bought.
AIM TARGET MARKETING
Aim: Identify target market
TARGET MARKET?
Specific group of people which have a need or
want for a specific product or service.
What is
MARKET SEGMENTATION
Group of consumers divided into smaller groups with
the **same needs and wants ** for products and services.
**Aim: **To understand the specific needs of a group of
consumers.
Find specific groups who’s needs can be satisfied.
**The Aim of: **
Market Segmentation
To understand the specific needs of a group of
consumers.
5 Types of market segmentation
1. Geographical segmentation
2. Demographycal segmentation
3. Psychographic segmentation
4. Behaviour segmentation
5. Benefit segmentation
5 Types of market segmentation
1. Geographical segmentation
1. Geographical segmentation
* Where does consumer live
* How many people live in this area?
* Approximate amount of products that need to be
bought.
* Climate and weather
*Enough clients?
5 Types of market segmentation
2. Demographycal segmentation
2. Demographycal segmentation
* Actual consumer E.g. age, sex, income, culture, beliefs.
5 Types of market segmentation
3. Psychographic segmentation
3. Psychographic segmentation
* How people think and act
* Lifestyle, social class, interests and status.
* Advertisements become more effective as they speak directly to the consumer’s values and desires.
* E.g.: Someone concerned about status, might be
* influences by exotic and luxury advertising.
5 Types of market segmentation
4. Behaviour segmentation
4. Behaviour segmentation
Behavioral Segmentation: Groups customers by how they interact with the product (e.g., frequency of purchase, brand loyalty).
- How often is it used?
- Loyalty regarding product
- Price sensitivity
- Will consumer buy product?
5 Types of market segmentation
5. Benefit segmentation
5. Benefit segmentation
Benefit Segmentation: Groups customers by the specific benefits they seek from the product (e.g., whitening in toothpaste, durability in phones).
- Needs and wants of potential consumers.
- E.g.: health conscious, keeps an eye on weight,
active, social butterfly, etc.
