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A Brief Intro to Consumer Marketing


Title: Opportunity Analysis, Market Segmentation & Market Targeting Author: CCBA Last modified by: CCBA Created Date: 9/23/2004 8:39:04 PM Document presentation format – PowerPoint PPT presentation

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Title: A Brief Intro to Consumer Marketing

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

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

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

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.

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

Buyers Characteristics - Psychological
  • Learning
  • changes in an individuals behavior arising from
  • 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.

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
  • Primarily based upon consumers orientations and
    level of resources.

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

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

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

VALS Lower Resources Groups
  • Makers
  • practical, self-sufficient, traditional,
  • Prefer practical, functional products
  • action oriented
  • Strugglers
  • typically elderly, resigned, passive, concerned
  • cautious consumers who are loyal to favorite
  • status oriented

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

Consumer Purchase Decision Process
  1. Problem Recognition
  2. Information Search
  3. Evaluation of Alternatives
  4. Purchase Decision
  5. Postpurchase Behavior

A Brief IntroBusiness-to-Business (B2B) Marketing
What Is Business Marketing?
  • Those activities that facilitate exchanges
    involving products and customers in business
  • A business transaction between
  • a professional seller (representing a selling
    company) and
  • a professional buyer (representing a buying
  • 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.

B2B versus B2C Marketing
Characteristic B2B Market B2C Market
Sales volume Greater Smaller
Purchase volume Greater Smaller
Number of buyers Fewer Many
Size of individual buyers Larger Smaller
Location of buyers Concentrated Diffuse
Buyer-seller relationship Closer More Impersonal
Nature of channel More direct Less direct
Buying influences Multiple Single/Multiple
Type of negotiations More complex Simpler
Use of reciprocity Yes No
Use of leasing Greater Less
Key promotion method Personal Selling Advertising
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.

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

Classifying Business Goods Services
  • Entering Goods
  • Raw Materials
  • Farm products natural products
  • Only processed as necessary for handling
  • 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

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.

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

Categories of B2B Customers
  • Commercial enterprises
  • Indirect channel members and facilitators
  • OEMs (original equipment manufacturers)
  • Users customers
  • Governmental organizations
  • Institutions

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

Steps in the Business Buying Process
  1. Recognizing the need
  2. Developing product specifications
  3. Soliciting bids from potential suppliers
  4. Making the purchase decision
  5. Issuing the contract
  6. Inspecting delivered goods for quality
  7. Evaluating vendor performance

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

Examples of Products Purchased Using the Buy-Class
Modified Rebuy
New Buy
Straight Rebuy
Consulting Services
Office Supplies
Pure routine
Complete negotiation
Electrical Components
Electricity Gas/Water
Computer Systems
Moon Shot Insurance
Bulk Chemicals
Insurance for the Apollo 11 Moonshot
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
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
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