Marketing Management Session 11

1,610
-1

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,610
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Video icon links to video snippet on Hasbro’s meeting the inventory needs of its retail customers.
  • Marketing Management Session 11

    1. 1. Analyzing Consumer Markets
    2. 2. What Influences Consumer Behavior? <ul><li>Cultural factors </li></ul><ul><li>Social factors </li></ul><ul><li>Personal factors </li></ul>
    3. 3. Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.
    4. 4. Subcultures <ul><li>Nationalities </li></ul><ul><li>Religions </li></ul><ul><li>Racial groups </li></ul><ul><li>Geographic regions </li></ul><ul><li>Special interests </li></ul>
    5. 5. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
    6. 6. Characteristics of Social Classes <ul><li>Within a class, people tend to behave alike. </li></ul><ul><li>Social class conveys perceptions of inferior or superior position. </li></ul><ul><li>Class may be indicated by a cluster of variables (occupation, income, wealth). </li></ul><ul><li>Class designation is mobile over time. </li></ul>
    7. 7. Social Factors Reference groups Social roles Statuses Family
    8. 8. Reference Groups <ul><li>Membership </li></ul><ul><li>Primary </li></ul><ul><li>Secondary </li></ul><ul><li>Aspirational </li></ul><ul><li>Dissociative </li></ul>
    9. 9. Family <ul><li>Family of Orientation </li></ul><ul><ul><li>Religion </li></ul></ul><ul><ul><li>Politics </li></ul></ul><ul><ul><li>Economics </li></ul></ul><ul><li>Family of Procreation </li></ul><ul><ul><li>Everyday buying behavior </li></ul></ul>
    10. 10. Personal Factors <ul><li>Age </li></ul><ul><li>Life cycle stage </li></ul><ul><li>Occupation </li></ul><ul><li>Wealth </li></ul><ul><li>Personality </li></ul><ul><li>Values </li></ul><ul><li>Lifestyle </li></ul><ul><li>Self-concept </li></ul>
    11. 11. Brand Personality <ul><li>Sincerity </li></ul><ul><li>Excitement </li></ul><ul><li>Competence </li></ul><ul><li>Sophistication </li></ul><ul><li>Ruggedness </li></ul>
    12. 12. Key Psychological Processes <ul><li>Motivation </li></ul><ul><li>Perception </li></ul><ul><li>Learning </li></ul><ul><li>Memory </li></ul>
    13. 13. Motivation <ul><li>Freud’s theory </li></ul><ul><li>Maslow’s hierarchy of needs </li></ul><ul><li>Herzberg’s two-factor theory </li></ul>
    14. 14. Perception <ul><li>Selective attention </li></ul><ul><li>Selective retention </li></ul><ul><li>Selective distortion </li></ul><ul><li>Subliminal perception </li></ul>
    15. 15. Consumer Buying Process <ul><li>Problem recognition </li></ul><ul><li>Information search </li></ul><ul><li>Evaluation </li></ul><ul><li>Purchase decision </li></ul><ul><li>Postpurchase behavior </li></ul>
    16. 16. Sources of Information <ul><li>Personal </li></ul><ul><li>Commercial </li></ul><ul><li>Public </li></ul><ul><li>Experiential </li></ul>
    17. 17. Organizational Buying Decision-making process by which formal organizations establish the need for purchased products and services, and identify evaluate, and choose among alternative brands and suppliers.
    18. 18. Characteristics of Business Markets <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purchasing </li></ul><ul><li>Many buying influences </li></ul><ul><li>Multiple sales calls </li></ul><ul><li>Derived demand </li></ul><ul><li>Inelastic demand </li></ul><ul><li>Fluctuating demand </li></ul><ul><li>Geographically concentrated buyers </li></ul><ul><li>Direct purchasing </li></ul>
    19. 19. Buying Situation <ul><li>Straight rebuy </li></ul><ul><li>Modified rebuy </li></ul><ul><li>New task </li></ul>
    20. 20. The Buying Center <ul><li>Initiators </li></ul><ul><li>Users </li></ul><ul><li>Influencers </li></ul><ul><li>Deciders </li></ul><ul><li>Approvers </li></ul><ul><li>Buyers </li></ul><ul><li>Gatekeepers </li></ul>
    21. 21. Of Concern to Business Marketers <ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they influence? </li></ul><ul><li>What is their level of influence? </li></ul><ul><li>What evaluation criteria do they use? </li></ul>
    22. 22. Types of Business Customers <ul><li>Price-oriented </li></ul><ul><li>Solution-oriented </li></ul><ul><li>Gold-standard </li></ul><ul><li>Strategic-value </li></ul>
    23. 23. Handling Price-Oriented Customers <ul><li>Limit quantity purchased </li></ul><ul><li>Allow no refunds </li></ul><ul><li>Make no adjustments </li></ul><ul><li>Provide no services </li></ul>
    24. 24. Purchasing Orientations <ul><li>Buying </li></ul><ul><li>Procurement </li></ul><ul><li>Supply chain management </li></ul>
    25. 25. Product-Related Purchasing Processes <ul><li>Routine products </li></ul><ul><li>Leverage products </li></ul><ul><li>Strategic products </li></ul><ul><li>Bottleneck products </li></ul>
    26. 26. Methods of e-Procurement <ul><li>Websites organized using vertical hubs </li></ul><ul><li>Websites organized using functional hubs </li></ul><ul><li>Direct extranet links to major suppliers </li></ul><ul><li>Buying alliances </li></ul><ul><li>Company buying sites </li></ul>
    27. 27. Forms of Electronic Marketplaces <ul><li>Catalog sites </li></ul><ul><li>Vertical markets </li></ul><ul><li>Pure play auction sites </li></ul><ul><li>Spot markets </li></ul><ul><li>Private exchanges </li></ul><ul><li>Barter markets </li></ul><ul><li>Buying alliances </li></ul>
    28. 28. Assessing Customer Value <ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul><ul><li>Focus-group value assessment </li></ul><ul><li>Direct survey questions </li></ul><ul><li>Conjoint analysis </li></ul><ul><li>Benchmarks </li></ul><ul><li>Compositional approach </li></ul><ul><li>Importance ratings </li></ul>
    29. 29. Order Routine Specification and Inventory <ul><li>Stockless purchase plans </li></ul><ul><li>Vendor-managed inventory </li></ul><ul><li>Continuous replenishment </li></ul>
    30. 30. Desirable Outcomes of a B2B transaction: OTIFNE <ul><li>On time </li></ul><ul><li>In full </li></ul><ul><li>No error </li></ul>
    31. 31. Establishing Corporate Credibility <ul><li>Expertise </li></ul><ul><li>Trustworthiness </li></ul><ul><li>Likeability </li></ul>
    32. 32. Factors Affecting Buyer-Supplier Relationships <ul><li>Availability of alternatives </li></ul><ul><li>Importance of supply </li></ul><ul><li>Complexity of supply </li></ul><ul><li>Supply market dynamism </li></ul>
    33. 33. Categories of Buyer-Seller Relationships <ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>Contractual transaction </li></ul><ul><li>Customer supply </li></ul><ul><li>Cooperative systems </li></ul><ul><li>Collaborative </li></ul><ul><li>Mutually adaptive </li></ul><ul><li>Customer is king </li></ul>
    34. 34. Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.
    35. 35. Analyzing Business Markets
    36. 36. CISCO Targets Businesses
    37. 37. What is Organizational Buying? <ul><li>Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers. </li></ul>
    38. 38. Top Business Marketing Challenges <ul><li>Expand understanding of customer needs </li></ul><ul><li>Compete globally as China and India reshape markets </li></ul><ul><li>Master analytical tools and improve quantitative skills </li></ul><ul><li>Reinstate innovation as an engine of growth </li></ul><ul><li>Create new organizational models and linkages </li></ul>
    39. 39. Characteristics of Business Markets <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purchasing </li></ul><ul><li>Many buying influences </li></ul><ul><li>Multiple sales calls </li></ul><ul><li>Derived demand </li></ul><ul><li>Inelastic demand </li></ul><ul><li>Fluctuating demand </li></ul><ul><li>Geographically concentrated buyers </li></ul><ul><li>Direct purchasing </li></ul>
    40. 40. Buying Situation Straight rebuy Modified rebuy New task
    41. 41. Systems Buying and Selling Turnkey solution desired; bids solicited Prime contractors Second-tier contractors System subcomponents assembled
    42. 42. The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers
    43. 43. Of Concern to Business Marketers <ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they influence? </li></ul><ul><li>What is their level of influence? </li></ul><ul><li>What evaluation criteria do they use? </li></ul>
    44. 44. Sales Strategies Small Sellers Large Sellers Key Buying Influencers Multilevel In-depth Selling
    45. 45. Stages in the Buying Process: Buyphases <ul><li>Problem recognition </li></ul><ul><li>General need description </li></ul><ul><li>Product specification </li></ul><ul><li>Supplier search </li></ul><ul><li>Proposal solicitation </li></ul><ul><li>Supplier selection </li></ul><ul><li>Order-routine specification </li></ul><ul><li>Performance review </li></ul>
    46. 46. Forms of Electronic Marketplaces
    47. 47. Methods of e-Procurement <ul><li>Websites organized using vertical hubs </li></ul><ul><li>Websites organized using functional hubs </li></ul><ul><li>Direct extranet links to major suppliers </li></ul><ul><li>Buying alliances </li></ul><ul><li>Company buying sites </li></ul>
    48. 48. Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services
    49. 49. Methods for Researching Customer Value <ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul><ul><li>Focus-group value assessment </li></ul><ul><li>Direct survey questions </li></ul><ul><li>Conjoint analysis </li></ul><ul><li>Benchmarks </li></ul><ul><li>Compositional approach </li></ul><ul><li>Importance ratings </li></ul>
    50. 50. Order Routine Specification Stockless purchase plans Vendor-managed inventory Continuous replenishment
    51. 51. Establishing Corporate Trust and Credibility Expertise Likeability Trustworthiness
    52. 52. Factors Affecting Buyer-Supplier Relationships Availability of alternatives Supply market dynamism Complexity of supply Importance of supply
    53. 53. Categories of Buyer-Seller Relationships <ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>Contractual transaction </li></ul><ul><li>Customer supply </li></ul><ul><li>Cooperative systems </li></ul><ul><li>Collaborative </li></ul><ul><li>Mutually adaptive </li></ul><ul><li>Customer is king </li></ul>
    54. 54. What is Opportunism? <ul><li>Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract. </li></ul>
    55. 55. Marketing of Farm Output from Rural Areas <ul><li>Contract Farming – Pepsi </li></ul><ul><li>Procuring from Cooperatives – Amul </li></ul><ul><li>Use ICT for procurement – ITC </li></ul>
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×