A Brief Intro to Consumer Marketing

1
A Brief Intro toConsumer Marketing
2
A Model of Buyer Behavior
Buyers Characteristics
Buyers Decision Process
Marketing Stimuli The Four Ps
Other Stimuli Economic Technology Political Cultur
al
Buyers Decisions Product choice Brand
choice Dealer choice Purchase timing Purchase
amount
3
Buyers Characteristics - Cultural

• Culture
• most fundamental determinant of a persons wants
  and behavior.
• Subculture
• nationalities, religions, racial groups, and
  geographical regions.
• Social Class
• income, occupation, education, area of
  residence.

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Buyers Characteristics - Social

• Reference Groups
• all groups having a direct or indirect influence
  on persons attitudes or behavior.
• Family
• single most important consumer-buying
  organization in society
• family of orientation vs. family of procreation.
• Roles Statuses

5
Buyers Characteristics - Personal

• Age Life Cycle Stage
• Occupation
• Economic Circumstances
• Lifestyle
• Personality Self-Concept

6
Buyers Characteristics - Psychological

• Motivation
• Biogenic needs
• needs arising from physiological states of
  tension such as hunger, thirst, discomfort.
• Psychogenic needs
• needs arising from psychological states of
  tension such as the need for recognition, esteem,
  or belonging.

7
Buyers Characteristics - Psychological

• Perception
• The process by which an individual selects,
  organizes, and interprets information inputs to
  create a meaningful picture of the world.
• Types of Selective Perception
• Selective Attention
• Selective Distortion
• Selective Retention

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Buyers Characteristics - Psychological

• Learning
• changes in an individuals behavior arising from
  experience.
• Beliefs
• descriptive thoughts that a person holds about
  some object/issue.
• Attitudes
• relatively enduring un/favorable evaluations,
  emotional feelings, and action tendencies toward
  some object/issue.

9
Psychographics According to VALS

• VALS Values and Lifestyles Framework.
• Intended to yield insights into
• why people believe/behave as they do, and
• how internal values attitudes are expressed
  externally.
• Primarily based upon consumers orientations and
  level of resources.

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VALS Higher Resources Groups

• Actualizers
• successful, sophisticated, active, take-charge
  types
• cultivated tastes for upscale, niche-oriented
  products
• generally status-oriented
• Achievers
• successful, career/work oriented
• prefer established, prestige products to impress
  peers
• status-oriented

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VALS Higher Resources Groups

• Fulfilleds
• mature, satisfied, comfortable, reflective
• prefer durability, functionality, value in
  products
• principle oriented
• Experiencers
• young, enthusiastic, impulsive, rebellious
• high proportion of income spent on clothing, fast
  food, music, movies, video.
• Action oriented

12
VALS Lower Resources Groups

• Believers
• conservative, conventional, traditional
• favor familiar products established brands
• principle oriented
• Strivers
• uncertain, insecure, approval-seeking
• prefer stylish products to emulate purchases of
  those with greater resources
• status oriented

13
VALS Lower Resources Groups

• Makers
• practical, self-sufficient, traditional,
  family-oriented.
• Prefer practical, functional products
• action oriented
• Strugglers
• typically elderly, resigned, passive, concerned
• cautious consumers who are loyal to favorite
  brands
• status oriented

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Types of Buying Behavior

• Significant Differences Between Brands
• High involvement complex buying behavior
• Low involvement variety-seeking buying behavior
• Few Differences Between Brands
• High involvement dissonance-reducing behavior
• Low involvement habitual buying behavior

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Consumer Purchase Decision Process

• Problem Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Postpurchase Behavior

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A Brief IntroBusiness-to-Business (B2B) Marketing
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What Is Business Marketing?

• Those activities that facilitate exchanges
  involving products and customers in business
  markets
• A business transaction between
• a professional seller (representing a selling
  company) and
• a professional buyer (representing a buying
  company)
• Activities in which goods or services are sold
  for any use other than personal consumption
• Note It is not the nature of the product it is
  the nature of the transaction.

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B2B versus B2C Marketing
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Characteristics of Business Demand

• Derived Demand
• Inelastic Demand
• Fluctuating Demand
• Joint Demand

• Derived demand says that demand for a business
  product is linked to demand for a consumer good.
• This means consumer demand affects business
  marketing up a vast network of channels.

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Classifying Business Goods Services

• 3 Main Categories of Products
• Entering Goods
• Become part of the finished product
• Cost assigned to the manufacturing process
• Foundation Goods
• Capital Items
• Typically depreciated over time
• Facilitating Products
• Support organizational operations
• Handled as overhead expenses

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Classifying Business Goods Services

• Entering Goods
• Raw Materials
• Farm products natural products
• Only processed as necessary for handling
  transport
• Require extensive processing
• Manufactured Materials Parts
• Any product that has undergone extensive
  processing prior to purchase
• Component Materials require additional processing
• Component Parts generally do not require
  additional processing

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Classifying Business Goods Services

• Foundation Goods
• Installations
• Major long-term investment items
• Buildings, land, fixed equipment, etc.
• Accessory Equipment
• Less expensive short-lived
• Not considered part of fixed plant
• Portable tools, PCs, etc.

23
Classifying Business Goods Services

• Facilitating Products
• Supplies
• Any supplies necessary to maintain the
  organizations operations
• Services
• Maintenance Repair support
• Advisory support
• Logistical support

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Categories of B2B Customers

• Commercial enterprises
• Indirect channel members and facilitators
• OEMs (original equipment manufacturers)
• Users customers
• Governmental organizations
• Institutions

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Major Uses of B2B Products

• For additional production (e.g., components are
  combined into subassemblies and become part of
  the finished product)
• For use in operations, but not part of the
  finished product
• For resale

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Steps in the Business Buying Process

• Recognizing the need
• Developing product specifications
• Soliciting bids from potential suppliers
• Making the purchase decision
• Issuing the contract
• Inspecting delivered goods for quality
• Evaluating vendor performance

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Types of Business Buying Situations

• New-task buy
• Business buying situation that is new and very
  different from anything that the buyer has faced
  previously.
• Straight rebuy
• Most common type of business buying situation
  buyer purchases a part, material, or service
  routinely, with little thought going into buying
  process.
• Modified rebuy
• Reevaluation of alternatives necessary because
  buying requirements have changed such that
  relatively routine buy or purchase no longer is
  routine.

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Examples of Products Purchased Using the Buy-Class
Modified Rebuy
New Buy
Straight Rebuy
Vehicles
Consulting Services
Office Supplies
Installations
Pure routine
Complete negotiation
Electrical Components
Electricity Gas/Water
Computer Systems
Moon Shot Insurance
Bulk Chemicals
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Insurance for the Apollo 11 Moonshot
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Buygrid Analysis Framework
Straight Rebuy
Modified Rebuy
New Buy
Need Recognition
Develop Product Specifications
Complexity of Buying Situation
Solicit Bids
Make Purchase Decision
Issue the Contract
Inspect Goods for Quality
Evaluate Vendor Performance
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Buygrid Analysis Framework
Straight Rebuy
Modified Rebuy
New Buy
Need Recognition
Develop Product Specifications
Creeping Commitment
Solicit Bids
Make Purchase Decision
Issue the Contract
Inspect Goods for Quality
Evaluate Vendor Performance