Your SlideShare is downloading. ×
0
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Module 3 Identifying & Selecting Market
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Module 3 Identifying & Selecting Market

1,954

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,954
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
57
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Identifying and selecting Market
    • After going through this module, you will be able to:
      • Understand Consumer Buying Behavior and Consumer Decision Making Process
      • Understand Business Market and Buying Decision Process
      • Understand Segmentation to Consumer Markets and Business Market
      • Understand Targeting and Position
  • 2. Consumer Buying Behavior
    • Consumer Buying Behavior refers to the buying behavior of final consumer – individuals & house holds who buy goods & services for personal consumption. All of these final consumers combine to make up the consumer market.
    • They vary tremendously in age, income, education level, & tastes.
    • They also buy an incredible variety of goods & services.
    • How these diverse consumers connect with other & with other elements of the world around them impacts their choices among various products, services, & companies.
  • 3. Model of Consumer Behavior
    • Consumers make many buying decisions every day.
    • It is not easy to learn about whys of CBB.
    • Most large companies do research on consumer buying decisions in great detail to answer questions about What consumers buy, where they buy, how & when they buy, why they buy.
  • 4. Model of Consumer Behavior
    • Often many consumers themselves don’t know exactly what influences their purchases.
    • 95% of the thought, emotion, & learning occur in the unconscious mind.
    • The challenging question to marketer is:
    • How do consumers respond to various marketing efforts the company might use?
  • 5. Model of Consumer Behavior
    • Marketing stimuli consist of the 4 P’s. Other stimuli includes major forces & events in the buyer’s Environment: Economic, Technological, Political, & Cultural.
    • Marketers wants to understand how the stimuli are changed into responses.
  • 6. Model of Consumer Behavior Marketing & other Stimuli Marketing Other Product Economic Price Technological Place Political Promotion Cultural Buyer’s Black Box Buyer Buyer character- decision istics process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
  • 7. Characteristics Affecting CB
    • Consumer purchases are influenced strongly by: Culture, Social, Personal, and Psychological Characteristics
    Psychological Motivation Perception Learning Beliefs & Attitudes Personal Age & life- cycle stage Occupation Economic Situation Lifestyle Personality & Self-concept Social Reference groups Family Roles & Status Buyer Culture Culture Subculture Social Class
  • 8. Characteristics Affecting CB CULTURE
    • Culture: The set of basic values, perceptions, wants, & behaviors learned by a member of society from family & other important institutions
    • Subculture: A group of people with shared value systems based on common life experiences & situations
    • Social Class: Relatively permanent & ordered divisions in a society similar values, interests, & behaviors
  • 9. Characteristics Affecting CB SOCIAL FACTORS
    • Group: Two or more people who interact to accomplish individual or mutual goals
    • Family: It can strongly influence Buyer Behavior. Marketers are interested in the roles & influence of husband, wife, & children in the purchase of different products & services
    • Roles & Status: A person belongs to many groups-family, clubs, organizations
  • 10. Characteristics Affecting CB PERSONAL FACTORS
    • Age & Family Life-Cycle Stage: People change the goods & services they buy over their lifetimes. Tastes in food, clothes, furniture & recreation are often are related .
    • Buying is also shaped by the stage of the family life cycle – the stages through which families might pass as they mature over time.
    • Marketers often define their target markets in terms of life-cycle stage & develop appropriate products & marketing plans for each stage.
  • 11. PERSONAL FACTORS
    • Occupation: A person’s occupation affects the goods & services bought. Blue-collar workers tend to buy more rugged work cloths, whereas executives buy more business suits.
    • Marketers try to identify the occupational groups that have an above-average interest in their products & services.
    • A company can even specialize in making products needed by a given occupational group
  • 12. PERSONAL FACTORS
    • Economic Situation: A person’s economic situation will affect product choice.
    • Marketers of income-sensitive goods watch trends in personal income, savings, & interest rates.
    • If economic indicators points to a recession, marketers can take steps to redesign, reposition, & reprise their products closely
  • 13. Life Style
    • People coming form the same subculture, social class, & occupation may have quite different lifestyles.
    • Lifestyle is a person’s pattern of living as expressed in his or her psychographics. It involves measuring consumers’ major AIO dimensions
    • Activities (work, hobbies, shopping, sport, social events)
    • Interests (food, fashion, family, recreation)
    • Opinions (about themselves, social issues, business, products)
    • Life style captures something more than the person’s social class or personality.
  • 14. Personality and self-concept
    • Personality: Each person’s distinct personality influences his or her buying behavior.
    • Personality is the unique psychological characteristics that lead to relatively consistent & lasting responses to one’s own environment.
    • Personality is usually described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability & aggressiveness
  • 15. Psychological Factors
    • Motivation: A person has many needs at a time, some are Biological, arising from states of tension such as hunger, thirst, or discomfort.
    • Others are Psychological, arising from the need for recognition, esteem, or belonging.
    • A need becomes a motive when it is aroused to a sufficient level of intensity
    • A motive (or drive ) need is sufficiently pressing to direct the person to seek satisfaction of the need
  • 16. Psychological Factors Physiological Needs (Hunger, Thirst) Safety Needs (Security, Protection) Social Needs (Sense of Belonging, Love) Esteem Needs (Self-esteem, recognition, Status) (Self-development & realization) Self- Actualization Needs
  • 17. Psychological Factors
    • Perception: A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation
    • All of us learn by the flow of information through our five senses: sight, hearing, smell, touch, & tastes
    • Perception is a process by which people select, organize, & interpret information to form a meaningful picture of the world
  • 18. Psychological Factors
    • Learning: when people act they learn.
    • Learning describes changes in an individual’s behavior arising from experience
    • Learning theorists say that most human behavior is learned.
    • Learning occurs through the interplay of drives, stimuli, cues, responses, & reinforcement
    • Changes in an individual’s behavior arishing from experience
  • 19. Psychological Factors
    • Beliefs & Attitudes: through doing & learning, people acquire beliefs & attitudes
    • These, in turn, influence their buying behavior
    • A Beliefs is a descriptive thought that a person holds about something
    • Attitudes: A person’s consistently favorable or unfavorable evaluations, feelings, & tendencies toward an object or idea
    • Attitudes are difficult to change
    • People have attitudes regarding religion, politics, clothes, music, food, and almost everything else.
  • 20. Types of Buying Decision Behavior
    • Complex Buying Behavior: CBB in situations characterized by high consumer involvement in a purchase & significant perceived differences among brands
    • Dissonance-Reducing Buying Behavior: CBB in situations characterized by high involvement but few perceived differences among brands
    • Habitual Buying Behavior: CBB in situations characterized by low consumer involvement & few significant perceived brand differences
    • Variety-Seeking Buying Behavior: CBB buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.
  • 21. Four Types of Buying Decision Behavior Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Buying Behavior Habitual Buying Behavior High Involvement Low Involvement Significant Differences Between Brands Few Differences Between Brands
  • 22. Consumer Decision Making
    • Why consumer marketing difficult?
    • The mix of the people is constantly changing
    • Not only is it difficult to anticipate what marketing program will work, but what worked yesterday may not work today – or tomorrow
    • Another changing is understanding how consumers make decisions
  • 23. The consumer Buying-Decision Process
    • Need recognition: The consumer is moved to action by a need or desire
    • Identification of alternatives: The consumer identifies alternative products & brands & collects information about them
    • Evaluation of alternatives: The consumer weighs the pros & cons of the alternatives identified
    • Decisions: The consumer decides to buy or not to buy & makes other decisions related to the purchase
    • Post purchase behavior: The consumer seeks reassurance that the choice made was the correct one
  • 24. The consumer Buying-Decision Process Need Recognition Evaluation of Alternatives Information Search Purchase Decision Post-purchase Behavior
  • 25. The consumer Buying-Decision Process SOCIAL & GROUP FORCES Culture Subculture Social Class Reference Group Family & Households PSYCHOLOGICAL FORCES Motivation Perception Learning Personality Attitude SITUATIONAL FACTORS When Where Why Conditions Under which Consumers buy INFORMATION Commercial Sources Social Sources CONSUMER BUYING-DECOSION PROCESS Need Recognition Identification of Alternatives Evaluation of Alternatives Purchase & Related Decisions Post-purchase Behavior
  • 26. The consumer Buying-Decision Process
    • Need Recognition: The first stage of the buyer decision process, in which the consumer recognizes a problem
    • Information Search: The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search
    • Alternative Evaluation: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set
  • 27. The consumer Buying-Decision Process
    • Purchase Decision: The buyer’s decision about which brand to purchase
    • Post-purchase Behavior: The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
  • 28. The consumer Buying-Decision Process – Possible Variations
    • The consumer can withdraw at any stage prior to the actual purchase if the need diminishes or no satisfactory alternative are available
    • The stages usually are of different lengths, may overlap, & some may even be skipped
    • The consumer is often involved in several different buying decisions simultaneously, & the out come of one can affect the others
  • 29. Importance of Business Buying
    • Companies are making less & buying more: Toyota annually buys $15 billion worth of parts, materials & services from US suppliers for use in its production both in US & overseas. When outside suppliers become this significant, buying becomes a prime strategic issue
    • Firms are under intense quality & time pressures: To reduce reworking costs & improve efficiency, firms cannot tolerate defective parts and supplies
    • Firms are concentrating their purchases: To get what they need, companies are dealing with fewer suppliers but are developing long-term “partnering” relationships with them.
  • 30. Nature & Scope of Business Market
    • Business market consists of all individuals & organizations that buy goods & services for one or more of the following purposes:
    • To make other goods & services: Dell buys microprocessors to make computers, & Henredon buys wood to make furniture
    • To resell to other business users or consumers: ReCellular, Inc., buys used cellular phones & wireless equipment to refurbish & sell to business customers
    • To conduct the organization’s operations: The university of Vermont buys office supplies & computer software for use in the registrar’s office
    • So, any good or service purchased for a reason other than personal or consumption is part of Business Market, and each buyer within this market is termed as a Business user.

×