Chap 11 understanding marketing processes and consumer behavior

Chapter 11

Understanding Marketing Processes and
Consumer Behavior
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QUIZ
1. WHAT IS THE PRODUCT OF YOUR
COMPANY
2. HOW WOULD YOU MAKE PEOPLE
BUY/USE YOUR PRODUCT
3. WHAT METHOD OF FOLLOWING
WILL YOU USE AND WHY
 DISTRIBUTION
 ADVERTISING/ PROMOTION
 PRICING 2

Sr. Chapter Chapter Heading
No.No.
1. 3 Understanding the Global context of business (031012)
2. 4 Conducting Business Ethically and Responsibly (250212)
3. 6 Organizing the Business Enterprise (030312)
4. 7 Understanding Entrepreneurship and Small Business (100312)
5. 8 Managing Human Resources (240312)
6. 9 Understanding Employee Motivating, Satisfying & Leadership (310312)
7. 11 Understanding Marketing Processes and Consumer Behavior (140412)
8. 16 Managing Quality and Productivity
9. 17 Managing Information Systems and Communication Technology
10. 19 Understanding Money and Banking
11. 20 Intermediate Term and Lease Financing

FINAL PROJECT
 GENERATE REVENUE
 Submit
 GROUP NAMES
 Business case with timelines
 Discuss details
 registrations

Marks Distribution
50 Terminal Examination
20 Mid Term Examination
15 Quizzes
15 Final Assignment

1. WHAT IS MARKETING
2. TARGET MARKETING AND MARKETING
SEGMENTATION
3. MARKETING RESEARCH
4. UNDERSTANDING CONSUMBER BEHAVIOR
5. ORGANIZATIONAL MARKETING AND BUYING
BEHAVIOR
6. THE INTERNATIONAL MARKETING MIX
7. SMALL BUSINESS AND THE MARKETING MIX

WHAT IS MARKETING
 The process of planning and executing
 the conception, pricing, promotion, and
distribution
 of ideas, goods and services

 to create exchanges that satisfy
individual and organizational objectives

Definitions
 Consumer Goods:
 Products purchased by consumers for personal use
 Industrial Goods
 Products purchased by companies to produce other
products
 Services:
 Intangible products, such as time, expertise, or an
activity, that can be purchased
 Marketing Plan
 Detailed and focused strategy for gearing marketing
efforts to meet consumer needs and wants

The Marketing Environment

Economic
Competitive Technology

Customer

Social
Global

Elements in the Marketing Mix
Product Place

Marketing
Program
Buy at
Computers
‘R Us

Price Promotion

The Marketing Mix
 Marketing Mix:
 The combination of product, pricing, promotion and
distribution strategies used to market products
 Product:
 Good, service or idea that is marketed to fill consumer
needs and wants
 Product differentiation:
 Creation of a product or product image that differs
enough from existing products to attract customers

Pricing Strategy
 Choosing the right price to attract consumers and
meet the firm’s profit goals
 Price = total value consumers willing to give
 May be low price strategy (salt) or high price strategy (mink
coat)
 Price must consider all costs
 operation and administration
 marketing research
 advertising

Promotion Strategy
 Choosing the right method of communicating
information about the product
 advertising
 personal selling
 sales promotions
 public relations

Place (Distribution Strategy)
 The part of the marketing mix
concerned with getting the product
from producer to buyer
 Choice of sales outlets
 Physical transportation
 Channels of distribution

TARGET MARKET AND
MARKET SEGMENTATION
 Target Market:
 A group of people having similar needs and
wants and that can be expected to show
interests in the same products
 Market Segmentation
 Process of dividing a market into categories
of customer types and selecting specific
segments to pursue

Identifying market segments
 In identifying market segments,
researchers must look at several different
influences on consumer behavior
 Geographic Variables
 Demographic Variables
 Pshycho-graphic Variables
 Life styles, opinions, interests and attitudes
 Product-use Variables;
 party wear, casual, athletic shoes

MARKETING RESEARCH
 The study of consumer needs and wants
and the ways in which sellers can best
meet them

17

The
Research
Process

Study the Select a Make
Collect Analyze Prepare
Current Research Recomme
Data Data Reports
Situation Method ndations

Use Use
Focus Observatio Experimen
Survey Secondary Primary
Group n tation
Data Data

18

RESEARCH METHODS
1. Observation
 Market research technique that involves simply watching and
recording consumer behavior
2. Surveys
 Market research technique using a questionnaire that is either
mailed to individuals or used as the basis of interviews
3. Focus Groups
 Market research technique in which a group of people is
gathered, presented with an issue, and asked to discuss it in
depth
4. Experimentation
 Market research technique that attempts to compare the
responses of the some of similar people under different
circumstances

UNDERSTANDING CONSUMER BEHAVIOR
Personal &
Purchase Environmental
Marketing
Process Factors
Factors

Problem
Product Recognition

Psychological
Information
Seeking

Price Personal
Evaluation of
Alternatives

Social
Place
Purchase
Decision
Cultural
Promotion Post-
Evaluation
Purchase

UNDERSTANDING CONSUMER
BEHAVIOR
 Consumer behavior:
 Various facets of the decision making process by which
customers come to purchase and consumer products
 Brand loyalty:
 Process of regular consumer purchasing based on
satisfaction with a product
 Purchase decision:
 Rational motives: Reasons of purchasing a product that are
based on a logical evaluation of product attributes
 Emotional motives: Reasons of purchasing a product that are
based on non objective factors

ORGANZATIONAL MARKETING
AND BUYING BEHAVIOR
 Organizational Markets
 Industrial markets
 Reseller markets
 Institutional markets
 Organizational buying behavior
 Specialized buyers
 Trained in the buyer seller relationships
 Company specialists
 Experts about the products
22

ORGANZATIONAL MARKETING
AND BUYING BEHAVIOR
 Differences in decision making
 Developing product specifications
 Evaluating alternatives
 Making post purchase evaluations

International Marketing Mix
 Products may require substantial change before they
can be marketed to different countries
 Pricing requires consideration of product
manufacturing costs, transportation and delivery
 Promotion must accommodate cultural differences
and social traditions
 Distribution may involve cooperation with other
international firms and adherence to foreign
packaging and labelling legislation

Small Business Marketing Mix
 Care must be taken to:
 offer products to markets substantial
enough to support the organization
 do a complete analysis of costs prior to
setting prices
 develop a comprehensive promotional
program using more than personal selling
 lower cost options: publicity, associated events
 choose a location that will attract and retain
customers

Chap 11 understanding marketing processes and consumer behavior

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