Topic 1 Flashcards
What is a consumer
A consumer is a person who buys goods and all services
Need
A need is something a person requires in order to survive
Desire
A desire is a strong wish to have something that is not crucial to survive
Maslow’s hierarchy of needs
Physiological or physical needs Safety and security needs Social needs Need for ego or self esteem need for self actualization
Consumer rights
A consumer has the right to be provided with basic needs, to choose, to safety, too accurate information, to be heard or object to something, to have products and services repaired or reimbursed, to consumer education, to a healthy environment, to quality, to fair prices and to courteous treatment
Consumer responsibility
To be informed, prompt payment, be honest, guard against damage of goods, use the proper channels for complaints, to be polite and courtiers and act respectfully, to drop a budget and stick to it, to preserve the natural heritage
Impulsive decisions
A choice made quickly and on this photo of the moment and little attention is given to possible consequences
Habitual decision
To take the same decision it is a decision you do not have to think about because you do so much
Emotional/intuitive decisions
This is an emotional decision based on instant rather than on facts
Rational decision
A decision that is well thought through at the alternatives have been considered
Rational decision making process of consumers
Identify problem or Aim
Look for possible solutions or alternative (information)
Consider the pros and cons of each alternative or evaluate alternatives
Choose the alternative that offers the best solution
Evaluate the outcome and except responsibility for your decision
Sustainable consumption
Sustainable consumption is the way people utilise the resources to satisfy their basic needs and at the same time to take precautions so that the environment and natural resources are not damaged or depleted
Principles of sustainability
Reduce reuse recycle
Sustainable consumer choice
Use biodegradable products
Make good buying decisions e.g. buying organic products
Grow your own vegetables and herbs to avoid use of pesticides
Use solar energy where possible
Good buying habits
Choose products that carry SABS seal quality
Compare the same products from different brands,
compared the price of the same product and Different stores,
compare shops E.G.security, service, the righty and parking,
shop at shops with a good reputation,
be aware of any additional costs
make sure of the guarantee of a product
, when necessary read terms and conditions,
Check shops policy regarding return of goods,
be Careful that bargains don’t mislead you
Don’t spend money on a product just because it’s a bargain,
buy locally and become part of the proudly South African campaign,
choose organic when possible,
avoid packaged and processed foods,
note the expiry date on food
Psychological Factors that influence customers buying habits
Motivation and the needs, personality, perception, knowledge, values, attitudes and lifestyle
Motivation and needs (psyc factor)
The needs that have to be met
Needs at a lower level will be need to be met first
Personality (psyc factor)
Unique characteristics determain personal decisions
Perception (psyc factor)
The way something is perceived-a mental impression
Perception can lead to a buying action
Knowledge (psyc factor)
The consumer is introduced to and made aware of the availability of goods and services through media
Can have a positive or negative impact on a consumers decision
Values (psyc factor)
A persons values are their principles or standards of conduct
Values determine behavior, direction and choices
Attitudes (psyc factor)
Consumers buying decisions are determined by their values, preferences , tastes and interests
Positive= will shop their again Negative = will not shop again
Lifestyle (psyc factor)
Your lifestyle is determined by your activities
SOCIO CULTURAL FACTORS
Personal Reference group Family Social status Culture
Personal (socio cultural)
Buying decisions are influenced by E.G.age, gender,occupation and financial status
Reference group (socio-– cultural factors)
This is the group whose norms and values you would like to live by, E.G celebrities are often our role models, so we will be influenced to buy the same brands that they wear
Family (social cultural factors)
Children off and follow their parents example, E.G.F are parents work and regularly by junk food, it will have an impact on the children’s buying decisions
Social status (social cultural factors)
People are born into a particular position (standing, or class) in society. This social position depends on the financial status, occupation, education, and the material possessions
Culture (social cultural factors)
We are cold and rain panache and because of all variety of cultural groups. Find decisions of different cultural groups are influenced by religion, rules and traditions. With in these groups, there are some cultures (groups within a larger or national culture) each some culture has its own values, ideas and attitudes. The buying decision of every member of the group is influenced by it
Economic factors
Income, credit facilities, price
Economic factors definition
The countries are commonly also influences the consumers buying decisions. In times of prosperity, consumers tend to buy more and more luxurious products, well in weaker economic times then buy more selectively
Income (economic factors)
Income your own financial position determines how much money you are going to spend. After expenses E.G.insurance, medical aid, taxes and debts are paid, the consumer will know how much money there is left to spend
Credit facilities (economic factors
Credit is a way of buying goods without having to pay cash. Examples of credit purchases our credit cards, purchases on clothing accounts, consumer cards and higher purchase/lay– by transactions.This can lead to impulsive purchases. I can see my could buy products that he or she cannot afford
Price (economic factors)
Cheapest substitute products are bought more easily. The greater risk is if an expensive product was a poor choice glasses then greater
Elite/high income definition
This group of and buys expensive cars and eveningwear. Expensive cars such as porche and BMW, and expensive clothes sold in Boutique, reflect this target
Middle income definition
The largest percentage of. Products on the market is aimed at this group. Checkers and Woolworths reflect this Target group
Low income definition
This group by is mainly essential in cheaper items. Do you have us with affordable products with like this target group such as pep stores.
Types of dealers
Direct and indirect
Flea markets and street vendor’s
Fleamarket and Street benders.
Goods are sold on pavements.
Sales are on a cash basis only.
Goods are relatively inexpensive because there are no extra costs involved.
As a consumer you should check the quality of the product yourself.
Products range from clothing to Food to furniture.
Clothing items sold to the flea market or street vendor are most likely to be: manufactured in bulk, surplus goods or rejects, unique handmade items and secondhand clothing.
Some flea market sell imitation/fake brands
Types of directs dealers
Fleamarket and street Vendors, secondhand shop
Types of indirect dealers
General dealers, convenience stores (cafes), specialty stores, department stores, wholesalers, hypermarkets, supermarkets, factory shops/manufactures outlets, online shopping, mail order
General dealers
General dealers are found in small towns,
the shop is off and managed by the owner.
A variety of products are sold, E.G.milk, bread, sweets, groceries, medicine and household items
Convenience stores (cafes)
Smaller stores that are open seven days a week.
Longer hours than a supermarket maybe even 24 hours a day – which is why the prices are higher.
A variety of products are sold, E.G.milk, bread, fast food, a range of small of groceries.
Consumers shop here when supermarkets are closed.
Often located in petrol stations
Specialty stores
These shops specialise in one product. Good quality products offered. Service is good. Often found in shopping centres. Prices are high.
Department stores
Includes Edgars and, Woolworths
Why brightly of products eat out you got the clothing department with children’s ladies and men’s clothing, food, shoes, beauty products and linen departments
A variety of services, either G.help and advice and trying on clothes – clothing alterations, accessing specific sizes and colours that he’s also Available.
Accounts and exchange or refund facilities are available
Goods are usually expensive because the shop requires a large number of employees and Attractive show rooms
Each type of department store provides for the needs of its target market
Wholesalers
Macro is in example of wholesaler
It is the link between the manufacturer and retailer.
Products are sold in bulk at low prices.
Products are packaged in smaller quantities and sold to consume is it a bigger profit
Advantages of a hypermarkets
Convenience of one-stop shopping. Self service system to compare goods and prices. Is in a shopping centre which also has Intertainment restaurants and other shops. Prices are usually lower than in smaller shops
Hypermarkets
The largest of all types of shops. If a righty of products are offered for sale. Usually near main roots/freeways.Often sell food at reduced prices. Certain products can be purchased in bulk eat out you lots sugar and flour.All means of payment (cash, cheque, debit and credit cards)
Supermarkets
If you righty of the products are offered for sale in separate divisions. Most supermarkets belong to a large chain.
It is larger than the convenience store bit smaller than the hypermarket
Factory shops/manufacturers outlets
Factory shops trade in a surplus of textile goods. Some of the text a good movie damaged or inferior and labelled as Surplus not perfect also soiled.
Factory shops usually do not take return on clothes all sales are cash and final.
He was services available.
Factory shops are usually located in industrial areas, Weather rent is low
Online Shopping
This is called e-commerce. To go to the stores website, select the items and pay with a credit card. Goods are delivered to the consumer.
It is convenient method of purchase it saves time.
First make some enquiries about companies reputation before making any purchases
Mail order
For people in small towns in the countryside, you have to drive far to do the shopping, or who cannot find what they’re looking for locally, mail order is still very convenient.
Catalogues are sent to prospective customers, who can make the selection in the comfort of their own home.
Extra money must be paid for postage and packaging and this can make items more expensive.
However there are disadvantages to buying by mail order
Difficult to determine colour fit finish and quality and it is expensive and is a nuisance to return
Evaluation of outlet
Righty, quality, price, safety and hygiene standards
Variety in the evaluation of outlet
The greater the variety, the wider the consumers choice. The target markets needs determine the variety of products
Quality in the evaluation of outlets
Quality remains intact where products so quickly and do not remain on shelves (fast turnover).
Note the sell by date, best by date and use before date of fresh produce
With clothing and household furniture, the quality is measured by the fabric, construction and workmanship.
Price does not necessarily the time quality.
If the shop has a high turnover, quality products can be sold at a reduced price
Price in the evaluation of outlets
Price is determined by the production cost, transportation cost, maintenance of equipment and overhead costs as well as profits. It is consumers responsibility to compare different prices of the same product, so that he/she can get the greatest amount and the best quality at the lowest price
Safety and hygiene standards in the evaluation of outlets
Safety and hygiene standards for food I established by law.
Shops and areas where perishable food is sold, must be very clean.
Meet must be covered, kept cold and Away from flies.
Employees to work with food should wear gloves.
Floors, shelves, refrigerators and freezers must be clean.
Need to be on the lookout for signs of spoilage E.G.swollen cans
Products with the expiry date has passed, should be removed from the shelves. Frozen products should be frozen solid and not softer lumpy.
Secure parking provided nearest shop.
I’m trying to say for people and we have wheelchairs.
Good lighting in the shop.
Shelves must be study.
Floors must be level nonslip
Types of full service restaurant
Fine dining restaurants. Specialty restaurants
Fine dining restaurants
Several different courses are served. The decor is of a higher standard. Which is a well trained. Waiters were formal uniforms. Dishes are attractive and potions or smaller.
Specialty restaurants
Specialise in specific cuisine e.g. Chinese, Indian or African dishes. Further to expensive price range
Family restaurants
The atmosphere is informal. Child friendly. Not many table decorations. Fixed menu, fix prices and special menus for children. Examples: spur, and Wimpy
Quick service ( fast food) restaurant
First service. No tableservice. Examples: KFC, McDonald’s and steers
Factors to consider in choosing a restaurant
Purpose, menu, price, service and atmosphere (and Ambience)
Purpose and choosing a restaurant
The occasion will determine what kind of restaurant the consumer will choose
Menu in choosing a restaurant
Yes sure the menu makes provision for everyone,E.G.chicken and meat on the menu of a seafood restaurant.
Find out if the restaurant caters for special needs, E.G.people with allergies or vegetarian
Price when choosing a restaurant
The prices are high in a fancy restaurant because of the overhead costs and decor. Quick service restaurant to the forest turnover, so they can make provision for cheaper dishes
Service and atmosphere. When choosing a restaurant
Good customer service but staff, E.G.being polite and helpful, will attract customers.
They call and tableware (cutlery and crockery) must match the type of restaurant to create the specific atmosphere
Evaluating restaurants
Variety, quality, price, atmosphere and service, hygiene
Variety when evaluating restaurants
Does the restaurant cater for all tastes and needs?
Do family restaurants had children’s menus?
Quality when evaluating restaurants
Are all the ingredients fresh?
All the leftovers thrown away?
Is the food served tastefully?
Are the portion sufficient?
Price when evaluating restaurants
Does the restaurant make provision for. Different price ranges
Are the prices appropriate for the type of restaurant?
Service and atmosphere when evaluating a restaurant
Does the staff provide good customer service?
Are the waiter is well trained, do they know the menu and provide good service?
Are there enough menus for everyone, and are the man is clean and in good condition?
Does the decor and cutlery much for specific type of restaurant and create atmosphere?
Hygiene when evaluating a restaurant
Do you herself in Waitrose have a neat appearance?
Is the restaurant clean?
Are the tablecloths, napkins and tables were clean?
Is the food preparation area clean and hygienic ?
Restaurant etiquette
Arrive time for your reservation.
If there is a host and/or hostess wait until he/she sits down before you take a seat.
Unfold the napkin and place it on your lap at the waiter does not do it for you .
Be polite to the waiter at all times.
Food is served from left and removed from the right.
Wait until everybody is food has been served, so that everyone can start eating at the same time.
use serving spoons or forks to dish of food, never your own.
Hold the wineglass by the system.
Do you not lean on the table with your Elbows.
Do not blow a new food, let’s cooldown.
Do not blow your nose at table.
Taste the food before simply adding season.
Do not stretch over the table, ask the person closest to you to pass but you need.
When a meal with more than one course is served, use the cutlery in your place settings from outside to inside.
Your side plate is served on your left.
Take small bites slowly.
Do not let your knife.
Two with your mouth closed and do not talk with a mouthful of food.
Place your knife and fork side-by-side on your plate when you have finished eating.
If your plate in front of you when you have finished eating, I do not pushIt away, the waiter will come and fetch it.
The person responsible for paying the bill should add a tip (usually at least 10% of the bill) for the waiter.
Switch off your cell phone or put it on vibrate / silent.
Purpose of marketing
The purpose of marketing is to introduce a good product or service to the consumer.
Marketing attempts to reach all potential customers/clients . By constantly reminding them that the product/service exists, to inform them where they can Buy it and what price they can expect to pay for it.
If a business is to grow, marketing needs to be done.
The difference between marketing and sales
Marketing focuses on the customers needs and provide the appropriate product a realistic price was sales form part of the marketing campaign, during which the salesperson convinces the customer to buy the product
Marketing strategies for consumer products
Determine target market.
Determine the market segment.
determine psychographic segmentation.
Target market
The target market is a specific group of consumers at which marketing/promotion is aimed. This group usually has a need for product and can afford it.
Market segmentation
Market segmentation is a large group of people who are divided into smaller groups with the same needs and desires.
It is divided into two groups geographic segmentation and demographic segmentation
Geographic segmentation
The area in which the consumer lives, as well as the number of people living there can give a ninety-year of how many products should be manufactured.
Climate determines the sales of products such as air-conditioners and Solar heaters
Demographic segmentation
Refers to the people who live in a specific area.
Includes culture, religion, age, gender, education, income
Psychographic segmentation
Refers to a consumers lifestyle segmentation. The consumers must be taken into consideration attitudes, interests, opinions, lifestyle. These aspects change regularly which make a difficult to determine the target markets psychographic profile
The 5p marketing mix model
Product/service. Place/distribution. Price. Promotion. Persons.
Marketing mix
Refers to the activities that are designed to improve the flow of goods, services and ideas from the producers to the consumers and satisfy consumer needs to cheapest the marketing mix must be developed according to the needs of the chosen target market
5p product/service
Products you select must be appropriate, profitable and marketable. Product must meet consumers needs.
Product must be better than other products of its kind.
Quality has to be appropriate for purpose.
SABS seal gives consumers confidence.
Labels must provide sufficient information
Product must provide specific Specifications to provide consistent quality and consumer satisfaction.
A brand must create an image of what can be expected
5p place
This includes the place where the product is manufactured, where the product will be sold and strategies regarding storage and Delivery. Convenience, safety and accessibility must be taken into consideration.
Price 5p
Priced must compare well with competitors price.
Selling price must include production costs plus profit.
Future competitors equals higher price.
Fixed prices for staple foods E.G.milk.
Different types of discounts are offered offered.
Cash discount – if consumers account is paid in advance.
Seasonal discount – at the end of season the prices of surplus stock are reduced.
Bulk Discount – discount has offered if large quantities are bought
5p promotion/advertising
Advertising, personal sales and promotional sales consumers are: informed about products
made aware of products
stimulated to become interested in products persuaded to buy products. Determine the medium that will be best suited for target group
5p persons
Consumer who marketing is directed.
Consumer revise the products.
Be aware of their needs.
Good customer service is important to hold on to your customers
Types of businesses
Wholesaler, retailer, brand shop, mail order, electronic marketing, informal sector
Retailer
The link between the producer in the consumer.
Goods are sold To the consumer in smaller quantities
Stocks a variety of products
Brand shop
Cells only its own products E.G.Mercedes-Benz
Electronic marketing
Television and Internet marketing are popular. Any products can be marketed via Internet. Called in comments. Go to stores website and select items. It is convenient
Informal sector
Businesses that are not registered. It’s often sold on pavements. Brights your goods are sold. Cash basis only. Relatively inexpensive. Spaza shops operate from peoples homes shabeens sell alcohol
The AIDA model
Attention interest desire action
Attention
Attract attention by you making use of colour illustrations and slogans
Interest
Arouse the consumers curiosity
Desire
The consumer feels he cannot cope without the product
Action
The consumer buys the product
Communication channels for marketing
Media, packaging, radio/television/Internet, mail marketing
Media marketing
Newspaper – advertises for special offers.
Magazines – women’s or men’s magazines
Marketing packaging
Information on the packaging, E.G.it’s a sure information even a recipe, can convince the consumer to buy the product
Mail marketing
Precious, pamphlets and junk mail I placed in postboxes
Other examples of communication channels for marketing
Coupons, buy one get one free offers, shopping bags there in the shops name, advertise on some cars, taxis, buses and trains, advertising on billboards/boards, product demonstrations in stores, competitions
Influence of marketing and promotion on consumer behaviour
Packaging, labelling,Advertisements
How packaging influences consumer behaviour
Packaging could persuade someone to choose your product if it looks better making use of colour design and visible packaging will draw more attention and sales.
Functions of packaging
Protects product, extends the shelflife, includes the Appearance. Provides information. Marketing channel(advertising medium) for the product facilitates display. Facilitates storage, handling and transportation of the product
Impact of packaging on environmental issues
Take your own shopping bag to avoid Unnecessary use of plastic bags. Please package and the possible.
Its packaging sparingly.
Information on labels
Rand name of the product. Name of product. List of ingredients (most to least) shelf life/best before date/expiry date. Storage instructions. Name and address of manufacturer. Instructions for use of preparation. Mass/volume. Barcode. Grade/quality. Allergens. Warnings E.G.contains allergens
Things a successful advertisement should do
Attract attention, arouse the consumers curiosity/interest, the square of the product or service, sway the consumer to buy the product, which is the target market, illicit emotions to convey the message,
Advertising techniques
Characters, humour, famous people, testimonials, promotional gifts, pain, instruction
Shop layout
Compromises the floor plan other shop and buy products are placed in the shop
Shop display
Is the way products are arranged on the shelves are in windows
Purpose of store layouts and display
Attract consumers colour, music or fragrances. Encourage consumers to make impulsive purchases
General techniques For storelayout and display
Greatest possible exposure-Putting essentials at the back of the store so that you can see all the other products will you walk through
Products with high mark ups and impulse purchases are displayed in key positions where all consumers have to pass such as cash registers
Regularly change the store layouts of the consumers have to walk to the store and search for items which leads to impulsive purchases
Place related items together
Place essential items high or low on cells, expensive and Donna such items at eyelevel and toys lower down at Childs eye level
Play specials on the ends of rows and shells by consumers will past more slowly
