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Key Notions on Consumption Key Notions on Consumption

Key Notions on Consumption - PowerPoint Presentation

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Key Notions on Consumption - PPT Presentation

Situating consumption in a historical perspective Understanding the successive adaptations of the market research approach The 1950s From Scarcity to Abundance High growth in purchasing power Numerous new products marketed ID: 754479

products consumption product marketing consumption products marketing product consumer pleasure market approach consommation consequences modes consommateur production one

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Slide1

Key Notions on Consumption

Situating consumption in a historical perspective

Understanding the successive adaptations of the market research approachSlide2

The 1950s : From Scarcity to Abundance

High growth in purchasing power

Numerous new products marketed

Sociologists refer to this period as the beginning of the «consumer society»Slide3

1.2.1 les faits marquants de la consommation

What is Consumer Society?

It is not a society in which needs are artificially created, they pre-exist

Satisfying such needs is part of a commercial exchangeSlide4

Consequences for the Marketing Approach

Intensification of competition

A fierce competitive market approach:

Priority given to keeping

market share

A

B

D

C

ASlide5

1.2.1 les faits marquants de la consommation

The 1960s : Abundance is challenged

Customers

purchase goods for

pleasure and to demonstrate their purchasing power

(ostentatious purchasing)

Beginning of mass d

istributionThe equipment of households reaches saturation pointSlide6

Consequences for the Marketing ApproachDevelopment of a «distributor’s marketing approach» to take into account consumers’ expectations AND department managers’ objectives

Immaterial expectations: developing service activitiesSlide7

The 1970s: Dreams crumble1973 and 1979 oil shocks are combined with a major economic recessionShift from ostentatious consumption to more personal consumption

The market for household goods is saturatedSlide8

Consequences for the Marketing ApproachRevival

of the market for household goods based on:

Technological innovation

(Colour TV…)More women in work

, hence the need for new household appliances (the toaster,

etc)Adaptation of products to the different family members (radio sets for young people)End of standard identical products for all. Products now launched to suit different types of clients: Market segmentationSlide9

1.2.1 les faits marquants de la consommation

The 1980’s: The Triumph of Individualism

To escape reality and their own worries, consumers adopt an even more self-centred attitude: Priority is given to one’s needs and expectations

Economic stakeholders associate consumption with imaginary representations

The 1980s are characterised by hyper-individualismSlide10

Product ranges are increasingly diversified to meet this need for individualism (Limited car series) Consumers are faced with a «hyper choice» and can no longer differentiate productsThe Gulf War challenges the excessiveness of this hyper-individualistic consumption model

Consequences for the Marketing ApproachSlide11

The 1990s, 2000s, 2010s ...

Over these three decades several transversal trends have emerged in our society.Slide12

The replacement of traditional social groups by tribe phenomena (1)The splitting of consumption (2)

The search for pleasure through consumption (3)Slide13

The Emergence of Tribes (1)

A tribe is a group of people who share experiences and/or emotions:

Any individual can belong to several tribes

Tribes are difficult to identity and to quantify

A tribe justifies a

Marketing o

ffer

based on the value of the link.Slide14

The splitting of consumption modes (2) Traditional consumption

Split consumption

Product range

Income structure

Each product is intended for a target

defined in terms of income

It is now difficult to define a link product/individuals .

Purchases are driven by the values each individual associates with the product.

Income structure

Product rangeSlide15

Since the year 2000, the splitting of consumption has become radicalised.It is known as ‘bipolar consumption’.

The consumer is the arbitrator between the values

of

usage and hedonism he associates with each

product

(Do I buy a car for the pleasure of driving or just for transport?)

The associated values are personal.

Over-invested

pleasure

products:The

customer

is prepared

to pay a high price for emotional satisfaction.

Basic

products

:The customer is prepared to pay for their functional value

at a minimum priceSlide16

Consequences for the Marketing Approach : Bipolar consumption no longer allows commercial targets to be definedDesign of a dual product line for the same customer, according to his consumption mood (in search of functionality or pleasure).

« Fun products » are meant to provide the consumer with emotion

The

price

is a key element for functional productsSlide17

In Search of Emotions (3)An appetite for immediate happinessWorry about an uncertain future

Sense of emergency in time management

3 sources of emotions can be associated with the product

Tribal marketing (As seen above)Sensory marketing

The «re-enchantment of the offer».Slide18

1.2.1

Highlights

in

Consumption

Sensory Marketing

Intended to reinforce the sensory dimension of products: delicate flavours, subtle tastes, warm colours, soft lighting, evocative aspect and touch...

2/3Slide19

The Re-enchantment of the OfferIntended to reinforce the imaginary content associated with the productTheatrical setting in shops: Dramatised setting around products in retail outlets

Addition of meaning

Extension of the pleasure of purchase through emotions thanks to the web, Facebook pages…Slide20

After the Year 2000The consumer becomes an «entrepreneur».Slide21

The consumer-entrepreneurUndertakes some of his professional commitments in his private life

Manages his domestic universe with professional methods

Is both a buyer, voter, citizen, environmentalist, etc…

Manages his time…Slide22

Impact on the marketing strategy: The «entrepreneur» customer wants to be regarded as a person :

Role of the Internet in the customisation of the offer or how to create a «tailored mass offer» by means of various options based on a main offer

1/3Slide23

After 2008The recession again engenders changes in consumer trends Slide24

Pleasure is no longer as much associated with consumption

Consumption is still bipolar but arbitration priorities are modified:

Consumption becomes a way to get one’s identity recognised by others and to turn one’s moral and ethical precepts into action

Consumers are now looking for self-achievement

4 modes of expression of such self-achievement may be distinguished:

Source : CREDOC

CAHIER DE RECHERCHE N°268DÉCEMBRE 2009Département « Consommation »

dirigé par Pascale HEBE

LSlide25

4 Modes of Self-achievementConsumption with commitment

(ethical, responsible and sustainable consumption)

Functional consumption

(Use of products for a life experience rather than to possess a product)

Co-production of the offer

(Consumer participation in creating the value of the offer)Dematerialised consumption(digital consumption)Slide26

Various modes of consumption with commitmentFood purchases direct from the producerFair tradeReconsideration of the use of cleaning products

Attention paid to sustainable development

Alternative means of transport

Théma http://www.thema-sa.fr/site/thema.php?page=actualites_article&id_article=46Slide27

Functional ConsumptionSelf-achievement implies the use of one’s free time in constraint-free activities likely to lead to personal realization

Using a product is more important than owning it

For 76% of French consumers, paying the lowest price is most important.

This is a favourite among the youngest customers

, the

proportion reaching 87% among customers aged 20-24 Buying on Groupon, Le Bon Coin, rentals on Zylock, etc…

TNS Word panel

study

,

Le Figaro

03/09

Etude MegaSnapshots d'OMG Nov. 2008Slide28

CoproductionThe reconciliation citizen/consumer involves consumer’s empowerment in the consumption processTechnology is the lever for such involvement, in particular the web 2.0, because it allows interaction.Slide29

Examples of co-production:Suggestions to manufacturersdanonetevous.com

Choice of a product :

La Fraise.com :select a T-shirt

myfab.com : co-production of objects

mymajorcompany.com : co-production of musicians

reseau-amap.org:networking and commitment in favour of farm producersSlide30

Dematerialised consumptionThis concerns Either immaterial products consumed exclusively via the Internet

(Music, video, press, books).

Or services around products that cannot be dematerialised

(cinema tickets, drive-through purchasing, etc)It is fostered by:

Widespread

access to Internet (Public wifi)The development of smartphones and tablets.Slide31

For further readingHistoire de la consommation à travers les 50 ans de CarrefourSynthèse sur l’évolution du consommateur, exemples de produits symboliques des décennies

L’évolution de la démarche marketing en fonction du consommateur

Article de marketing magazine

N°163 - 28/11/2012 Slide32

BibliographyMermet G.

Francoscopie 2013

Ed Larousse

Rochefort R., Le consommateur entrepreneur

, Ed Odile Jacob,1999

Rochefort R., Le bon consommateur et le mauvais citoyen, Ed Odile Jacob,2007http://www.credoc.fr/publications/www.altema.fr