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MARKETING MANAGEMENT PRESENTED ON BEHALF OF: INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA BY: PROF. HIMMAT G. ADISARE CORE T...
INTRODUCTION TO MARKETING MANAGEMENT Ref: Chapter 1 of Core Text
MARKETING MANAGEMENT: DEFINITIONS <ul><li>1. “Marketing is the creation and delivery of a standard of living”.   </li></ul...
THE SCOPE OF MARKETING <ul><li>Marketers are involved with marketing  ten   </li></ul><ul><li>types of entities: </li></ul...
A SIMPLE MARKETING SYSTEM INDUSTRY (A collection of sellers) MARKET (A collection of buyers) COMMUNICATION INFORMATION GOO...
STRUCTURE OF FLOWS IN A MODERN EXCHANGE ECONOMY RESOURCE MARKETS CONSUMER MARKETS INTERMEDIARY MARKETS MANUFACTURER MARKET...
MARKETING CONCEPTS-I <ul><li>There are  five  competing concepts under which organizations conduct marketing activities: <...
MARKETING CONCEPTS-I   <ul><li>The  SELLING CONCEPT  holds that consumers and businesses, will ordinarily not buy enough o...
MARKETING CONCEPTS-I <ul><li>The  SOCIETAL MARKETING  concept holds that the organization’s task is to determine the needs...
MARKETING CONCEPTS-II The Core Concepts of Marketing Needs Wants Demands Products Value Cost Satisfaction Exchanges Transa...
CUSTOMER RELATIONSHIPS Ref: Chapter 2 of Core Text
CREATING CUSTOMER VALUE AND SATISFACTION <ul><li>Customer delivered value:   the difference between total customer value a...
CREATING CUSTOMER VALUE AND SATISFACTION <ul><li>Example of Customer Delivered Value:   </li></ul><ul><li>a) Buyers percep...
CREATING CUSTOMER VALUE AND SATISFACTION  <ul><li>Customer Satisfaction:  Whether a customer is satisfied after purchase d...
THE NATURE OF HIGH PERFORMANCE BUSINESSES STAKEHOLDERS PROCESSES RESOURCES ORGANIZATION Set strategies to satisfy key stak...
MARKET-ORIENTED STRATEGIC PLANNING Ref: Chapter 4 of Core Text
STRATEGIC PLANNING: THE FOUR LEVELS <ul><li>Most large companies consist of   four  organizational levels: </li></ul><ul><...
THE STRATEGIC PLANNING, IMPLEMENTATION & CONTROL PROCESSES PLANNING IMPLEMENTING CONTROLLING Corporate Planning Division P...
DEFINING THE CORPORATE MISSION <ul><li>Peter Drucker’s Classic Questions: </li></ul><ul><li>1. What is our business? </li>...
GOOD MISSION STATEMENTS <ul><li>Good mission statements have  three  major characteristics: </li></ul><ul><li>1. They focu...
COMPETITIVE SCOPES OF A COMPANY <ul><li>Industry scope </li></ul><ul><li>Products and applications scope </li></ul><ul><li...
ESTABLISHING STRATEGIC BUSINESS UNITS <ul><li>Large companies normally manage different businesses, each requiring its own...
ASSIGNING RESOURCES TO SBUs (THE BCG GROWTH-SHARE MATRIX) <ul><li>The Boston Consulting Group (BCG), a leading management ...
THE BCG GROWTH-SHARE MATRIX   10% 0% 20% 1x 10x 0.1x STARS QUESTION MARKS CASH COWS DOGS RELATIVE MKT SHARE MKT GROWTH    ...
THE BCG MARIX (CONTD) <ul><li>QUESTION MARKS :  New businesses of the company in high growth-rate markets. </li></ul><ul><...
THE MARKETING PROCESS <ul><li>The Marketing Process consists of : </li></ul><ul><li>Analyzing Marketing Opportunities </li...
MARKETING ENVIRONMENT & SYSTEM Ref: Chapter 6 of Core Text
MARKETING ENVIRONMENT FACTORS <ul><li>DEMOGRAPHIC ENVIRONMENT </li></ul><ul><li>ECONOMIC ENVIRONMENT </li></ul><ul><li>NAT...
DEMOGRAPHIC ENVIRONMENT <ul><li>Worldwide Population Growth </li></ul><ul><li>Population Age Mix </li></ul><ul><li>Ethnic ...
ECONOMIC ENVIRONMENT <ul><li>Income Distribution </li></ul><ul><li>Subsistence economies </li></ul><ul><li>Raw-material-ex...
NATURAL ENVIRONMENT <ul><li>Shortage of Raw Materials </li></ul><ul><li>Increased Energy Costs </li></ul><ul><li>Increased...
TECHNOLOGICAL ENVIRONMENT <ul><li>Accelerating Pace of Technological Change </li></ul><ul><li>Unlimited Opportunities for ...
POLITICO-LEGAL ENVIRONMENT <ul><li>Legislation Regulating Business: </li></ul><ul><li>MRTP Act </li></ul><ul><li>PCBs </li...
SOCIO-CULTURAL ENVIRONMENT <ul><li>Persistence of Core Cultural Values: </li></ul><ul><li>Core beliefs </li></ul><ul><li>S...
ANALYZING CONSUMER BEHAVIOR Ref: Chapter 7 of Core Text
ANALYZING CONSUMER BEHAVIOR <ul><li>FACTORS INFLUENCING CONSUMER BEHAVIOR </li></ul><ul><li>BUYING ROLES </li></ul><ul><li...
FACTORS INFLUENCING CONSUMER BEHAVIOR <ul><li>CULTURAL FACTORS : </li></ul><ul><li>Culture </li></ul><ul><li>Sub-culture <...
FACTORS INFLUENCING CONSUMER BEHAVIOR(2) <ul><li>PERSONAL FACTORS </li></ul><ul><li>Age and Life-Cycle Stage </li></ul><ul...
FACTORS INFLUENCING CONSUMER BEHAVIOR (3) <ul><li>PSYCHOLOGICAL FACTORS </li></ul><ul><li>Motivation </li></ul><ul><li>Lea...
BUYING ROLES <ul><li>INITIATOR :  The first person to suggest the idea of buying. </li></ul><ul><li>INFLUENCER :  A person...
TYPES OF BUYING BEHAVIOR DEGREE OF INVOLVEMENT LOW HIGH DEGREE OF DIFFERENCES IN BRANDS HIGH LOW COMPLEX BUYING BEHAVIOR D...
TYPES OF BUYING BEHAVIOR <ul><li>COMPLEX BUYING BEHAVIOR :   High involvement, very expensive, infrequently purchased,very...
TYPES OF BUYING BEHAVIOR (CONTD) <ul><li>VARIETY SEEKING BUYING BEHAVIOR :   Low involvement, frequently purchased, inexpe...
THE BUYING DECISION PROCESS <ul><li>Problem/need Recognition </li></ul><ul><li>Information Search </li></ul><ul><li>Evalua...
PROBLEM/NEED RECOGNITION <ul><li>From Internal Stimuli: </li></ul><ul><li>Hunger </li></ul><ul><li>Thirst </li></ul><ul><l...
INFORMATION SEARCH <ul><li>From Personal Sources: </li></ul><ul><li>Family </li></ul><ul><li>Friends </li></ul><ul><li>Nei...
INFORMATION SEARCH (CONTD) <ul><li>From Commercial Sources: </li></ul><ul><li>Advertisements </li></ul><ul><li>Dealers </l...
INFORMATION SEARCH (CONTD) <ul><li>From Public Sources: </li></ul><ul><li>Mass Media </li></ul><ul><li>Chambers of Commerc...
EVALUATION OF ALTERNATIVES <ul><li>Successive Sets in Consumer Decision-Making: </li></ul><ul><li>Total Set </li></ul><ul>...
EVALUATION OF ALTERNATIVES  TOTAL SET AWARENESS SET CONSIDERATION SET CHOICE SET BUYING DECISION Ref: Chapter 7 of Core Text
PURCHASE DECISION <ul><li>Interfering Factors: </li></ul><ul><li>Attitudes of Others : Opposing and intense opinions of fa...
POSTPURCHASE BEHAVIOR <ul><li>Post purchase Satisfaction: </li></ul><ul><li>Keep the Product </li></ul><ul><li>Store the P...
BUSINESS MARKETS VERSUS CONSUMER MARKETS <ul><li>Business Markets: </li></ul><ul><li>Fewer Buyers </li></ul><ul><li>Larger...
MARKET SEGMENTATION Ref: Chapter 10 of Core Text
MARKET SEGMENTATION: VARIABLES <ul><li>Geographic Segmentation </li></ul><ul><li>Demographic Segmentation </li></ul><ul><l...
SEGMENTATION VARIABLES (CONTD) <ul><li>Geographic Segmentation: </li></ul><ul><li>By Nations </li></ul><ul><li>By Regions ...
SEGMENTATION VARIABLES (CONTD) <ul><li>Demographic Segmentation: </li></ul><ul><li>By Age </li></ul><ul><li>By Gender </li...
SEGMENTATION VARIABLES (CONTD) <ul><li>Psychographic Segmentation: </li></ul><ul><li>By Personality </li></ul><ul><li>By L...
SEGMENTATION VARIABLES (CONTD) <ul><li>Behavioral Segmentation: </li></ul><ul><li>By Usage Pattern </li></ul><ul><li>By Oc...
THANK YOU ALL FOR YOUR PARTICIPATION IN THIS PROGRAMME
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  1. 1. MARKETING MANAGEMENT PRESENTED ON BEHALF OF: INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA BY: PROF. HIMMAT G. ADISARE CORE TEXT: MARKETING MANAGEMENT BY PHILIP KOTLER (11 th Edition)
  2. 2. INTRODUCTION TO MARKETING MANAGEMENT Ref: Chapter 1 of Core Text
  3. 3. MARKETING MANAGEMENT: DEFINITIONS <ul><li>1. “Marketing is the creation and delivery of a standard of living”. </li></ul><ul><li>2. “Marketing is a managerial and societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value with others”. </li></ul>Ref: Chapter 1 of Core Text
  4. 4. THE SCOPE OF MARKETING <ul><li>Marketers are involved with marketing ten </li></ul><ul><li>types of entities: </li></ul><ul><ul><li>1. Physical Goods </li></ul></ul><ul><ul><li>2. Services </li></ul></ul><ul><li>3. Experiences </li></ul><ul><li>4. Events </li></ul><ul><li>5. Persons </li></ul><ul><li>6. Places </li></ul><ul><li>7. Properties </li></ul><ul><li>8. Organizations </li></ul><ul><li>9. Information </li></ul><ul><li>10. Ideas </li></ul>Ref: Chapter 1 of Core Text
  5. 5. A SIMPLE MARKETING SYSTEM INDUSTRY (A collection of sellers) MARKET (A collection of buyers) COMMUNICATION INFORMATION GOODS & SERVICES MONEY Ref: Chapter 1 of Core Text
  6. 6. STRUCTURE OF FLOWS IN A MODERN EXCHANGE ECONOMY RESOURCE MARKETS CONSUMER MARKETS INTERMEDIARY MARKETS MANUFACTURER MARKETS GOVERNMENT MARKETS MONEY RESOURCES MONEY RESOURCES MONEY MONEY GOODS & SERVICES GOODS & SERVICES TAXES & GOODS SERVICES & MONEY S&M TAXES & GOODS SERVICES TAXES S&M T&G
  7. 7. MARKETING CONCEPTS-I <ul><li>There are five competing concepts under which organizations conduct marketing activities: </li></ul><ul><li>The PRODUCTION CONCEPT holds that consumers will prefer products that are widely available and inexpensive. </li></ul><ul><li>The PRODUCT CONCEPT holds that consumers will favor those products that offer the most quality, performance, or innovative features. </li></ul><ul><li>(continued) </li></ul>Ref: Chapter 1 of Core Text
  8. 8. MARKETING CONCEPTS-I <ul><li>The SELLING CONCEPT holds that consumers and businesses, will ordinarily not buy enough of the organization’s products. The organization must therefore, undertake an aggressive selling and promotion effort. </li></ul><ul><li>The MARKETING CONCEPT holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets. </li></ul>(continued) Ref: Chapter 1 of Core Text
  9. 9. MARKETING CONCEPTS-I <ul><li>The SOCIETAL MARKETING concept holds that the organization’s task is to determine the needs, wants, and interests of the target markets and to deliver the desired satisfactions more effectively than competitors in a way that preserves the consumers’ and society’s well-being. </li></ul>Ref: Chapter 1 of Core Text
  10. 10. MARKETING CONCEPTS-II The Core Concepts of Marketing Needs Wants Demands Products Value Cost Satisfaction Exchanges Transactions Relationships Markets Marketing Marketers 1 2 3 4 5 6
  11. 11. CUSTOMER RELATIONSHIPS Ref: Chapter 2 of Core Text
  12. 12. CREATING CUSTOMER VALUE AND SATISFACTION <ul><li>Customer delivered value: the difference between total customer value and total customer cost. </li></ul><ul><li>Total customer value: the bundle of benefits customers expect from a given product or service. </li></ul><ul><li>Total customer cost: the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the product or service. </li></ul>(continued) Ref: Chapter 2 of Core Text
  13. 13. CREATING CUSTOMER VALUE AND SATISFACTION <ul><li>Example of Customer Delivered Value: </li></ul><ul><li>a) Buyers perception of offer’s worth = </li></ul><ul><li>Rs.2,00,000=00 </li></ul><ul><li>b) Company’s cost of manufacture = </li></ul><ul><li>Rs.1,40,000=00 </li></ul><ul><li>c) Company’s price = Rs.1,60,000=00 </li></ul><ul><li>1. Customer Delivered Value: = Rs.40,000=00 </li></ul><ul><li>2. Customer Delivered Value: = 1.25 (as a ratio) </li></ul>(continued) Ref: Chapter 2 of Core Text
  14. 14. CREATING CUSTOMER VALUE AND SATISFACTION <ul><li>Customer Satisfaction: Whether a customer is satisfied after purchase depends on the offer’s performance in relation to the buyer’s expectations. We may define it as: </li></ul><ul><li>“ Customer satisfaction or dissatisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to the person’s expectations”. </li></ul>Ref: Chapter 2 of Core Text
  15. 15. THE NATURE OF HIGH PERFORMANCE BUSINESSES STAKEHOLDERS PROCESSES RESOURCES ORGANIZATION Set strategies to satisfy key stakeholders … … by improving critical business processes … … and aligning resources and organization.
  16. 16. MARKET-ORIENTED STRATEGIC PLANNING Ref: Chapter 4 of Core Text
  17. 17. STRATEGIC PLANNING: THE FOUR LEVELS <ul><li>Most large companies consist of four organizational levels: </li></ul><ul><li>The Corporate level </li></ul><ul><li>The Division level </li></ul><ul><li>The Business Unit level </li></ul><ul><li>The Product level </li></ul>Ref: Chapter 4 of Core Text
  18. 18. THE STRATEGIC PLANNING, IMPLEMENTATION & CONTROL PROCESSES PLANNING IMPLEMENTING CONTROLLING Corporate Planning Division Planning Business Planning Product Planning Organizing Implementing Measuring Results Diagnosing Results Taking Corrective Action
  19. 19. DEFINING THE CORPORATE MISSION <ul><li>Peter Drucker’s Classic Questions: </li></ul><ul><li>1. What is our business? </li></ul><ul><li>2. Who is the customer? </li></ul><ul><li>3. What is value to the customer? </li></ul><ul><li>4. What will our business be? </li></ul><ul><li>5. What should our business be? </li></ul>Ref: Chapter 4 of core Text
  20. 20. GOOD MISSION STATEMENTS <ul><li>Good mission statements have three major characteristics: </li></ul><ul><li>1. They focus on limited number of goals. </li></ul><ul><li>2.They stress the major policies and values the company wants to honor. </li></ul><ul><li>3. They define the major competitive scopes within which the company will operate. </li></ul>Ref: Chapter 4 of Core Text
  21. 21. COMPETITIVE SCOPES OF A COMPANY <ul><li>Industry scope </li></ul><ul><li>Products and applications scope </li></ul><ul><li>Competence scope </li></ul><ul><li>Market segment scope </li></ul><ul><li>Vertical scope </li></ul><ul><li>Geographical scope </li></ul>Ref: Chapter 4 of Core Text
  22. 22. ESTABLISHING STRATEGIC BUSINESS UNITS <ul><li>Large companies normally manage different businesses, each requiring its own strategy. These are termed as Strategic Business Units (SBUs). An SBU has three characteristics: </li></ul><ul><li>It is a single business or a collection of related businesses that can be planned separately from the rest of the company. </li></ul><ul><li>It has its own set of competitors. </li></ul><ul><li>It has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit. </li></ul>Ref: Chapter 4 of Core Text
  23. 23. ASSIGNING RESOURCES TO SBUs (THE BCG GROWTH-SHARE MATRIX) <ul><li>The Boston Consulting Group (BCG), a leading management consulting firm, popularized the growth-share matrix. It is divided into four cells, each indicating a different type of business. The market-growth rate on the vertical axis indicates the annual growth rate of the market in which the business operates. The relative market share , measured on the horizontal axis, refers to the SBUs market share relative to that of the largest competitor in the segment. </li></ul>Ref: Chapter 4 of Core Text
  24. 24. THE BCG GROWTH-SHARE MATRIX 10% 0% 20% 1x 10x 0.1x STARS QUESTION MARKS CASH COWS DOGS RELATIVE MKT SHARE MKT GROWTH
  25. 25. THE BCG MARIX (CONTD) <ul><li>QUESTION MARKS : New businesses of the company in high growth-rate markets. </li></ul><ul><li>STARS : Successful Question-mark businesses become stars that gain market share and generate profits for the company. </li></ul><ul><li>CASH COWS: When market-growth rate slows down as competitors enter the segment, businesses that remain successful become Cash Cows. They fund Stars and new Question-mark businesses. </li></ul><ul><li>DOGS : These are businesses in decline and the company has the option to “harvest” or “divest”. </li></ul>
  26. 26. THE MARKETING PROCESS <ul><li>The Marketing Process consists of : </li></ul><ul><li>Analyzing Marketing Opportunities </li></ul><ul><li>Researching and Selecting Target Markets </li></ul><ul><li>Designing Marketing Opportunities </li></ul><ul><li>Planning Marketing Programs </li></ul><ul><li>Organizing, Implementing, and Controlling the Marketing Effort </li></ul>Ref: Chapter 4 of Core Text
  27. 27. MARKETING ENVIRONMENT & SYSTEM Ref: Chapter 6 of Core Text
  28. 28. MARKETING ENVIRONMENT FACTORS <ul><li>DEMOGRAPHIC ENVIRONMENT </li></ul><ul><li>ECONOMIC ENVIRONMENT </li></ul><ul><li>NATURAL ENVIRONMENT </li></ul><ul><li>TECHNOLOGICAL ENVIRONMENT </li></ul><ul><li>POLITICAL-LEGAL ENVIRONMENT </li></ul><ul><li>SOCIAL-CULTURAL ENVIRONMENT </li></ul>Ref: Chapter 6 of Core Text
  29. 29. DEMOGRAPHIC ENVIRONMENT <ul><li>Worldwide Population Growth </li></ul><ul><li>Population Age Mix </li></ul><ul><li>Ethnic Markets </li></ul><ul><li>Educational Groups </li></ul><ul><li>Household Patterns </li></ul><ul><li>Geographical Shifts in Population </li></ul><ul><li>Shift from Mass to Micromarkets </li></ul>Ref: Chapter 6 of Core Text
  30. 30. ECONOMIC ENVIRONMENT <ul><li>Income Distribution </li></ul><ul><li>Subsistence economies </li></ul><ul><li>Raw-material-exporting economies </li></ul><ul><li>Industrializing economies </li></ul><ul><li>Industrial economies </li></ul><ul><li>Savings, Debt, and Credit Availability </li></ul>Ref: Chapter 6 of Core Text
  31. 31. NATURAL ENVIRONMENT <ul><li>Shortage of Raw Materials </li></ul><ul><li>Increased Energy Costs </li></ul><ul><li>Increased Pollution Levels </li></ul><ul><li>Changing Role of Governments </li></ul>Ref: Chapter 6 of Core Text
  32. 32. TECHNOLOGICAL ENVIRONMENT <ul><li>Accelerating Pace of Technological Change </li></ul><ul><li>Unlimited Opportunities for Innovation </li></ul><ul><li>Varying R&D Budgets </li></ul><ul><li>Increased Regulation of Technological Change </li></ul>Ref: Chapter 6 of Core Text
  33. 33. POLITICO-LEGAL ENVIRONMENT <ul><li>Legislation Regulating Business: </li></ul><ul><li>MRTP Act </li></ul><ul><li>PCBs </li></ul><ul><li>FDA </li></ul><ul><li>Growth of Special Interest Groups </li></ul>Ref: Chapter 6 of Core Text
  34. 34. SOCIO-CULTURAL ENVIRONMENT <ul><li>Persistence of Core Cultural Values: </li></ul><ul><li>Core beliefs </li></ul><ul><li>Secondary beliefs </li></ul><ul><li>Existence of Subcultures </li></ul><ul><li>Shifts of Secondary Cultural Values Through Time </li></ul>Ref: Chapter 6 of Core Text
  35. 35. ANALYZING CONSUMER BEHAVIOR Ref: Chapter 7 of Core Text
  36. 36. ANALYZING CONSUMER BEHAVIOR <ul><li>FACTORS INFLUENCING CONSUMER BEHAVIOR </li></ul><ul><li>BUYING ROLES </li></ul><ul><li>TYPES OF BUYING BEHAVIOR </li></ul><ul><li>THE BUYING DECISION PROCESS </li></ul>Ref: Chapter 7 of Core Text
  37. 37. FACTORS INFLUENCING CONSUMER BEHAVIOR <ul><li>CULTURAL FACTORS : </li></ul><ul><li>Culture </li></ul><ul><li>Sub-culture </li></ul><ul><li>Social Class </li></ul><ul><li>SOCIAL FACTORS : </li></ul><ul><li>Reference groups </li></ul><ul><li>Family </li></ul><ul><li>Roles & statuses </li></ul>Ref: Chapter 7 of Core Text
  38. 38. FACTORS INFLUENCING CONSUMER BEHAVIOR(2) <ul><li>PERSONAL FACTORS </li></ul><ul><li>Age and Life-Cycle Stage </li></ul><ul><li>Occupation </li></ul><ul><li>Economic Circumstances </li></ul><ul><li>Lifestyle </li></ul><ul><li>Personality & Self-concept </li></ul>Ref: Chapter 7 of Core Text
  39. 39. FACTORS INFLUENCING CONSUMER BEHAVIOR (3) <ul><li>PSYCHOLOGICAL FACTORS </li></ul><ul><li>Motivation </li></ul><ul><li>Learning </li></ul><ul><li>Perception </li></ul><ul><li>Beliefs & Attitudes </li></ul>Ref: Chapter 7 of Core Text
  40. 40. BUYING ROLES <ul><li>INITIATOR : The first person to suggest the idea of buying. </li></ul><ul><li>INFLUENCER : A person whose views impact the buying decision. </li></ul><ul><li>DECIDER : The person who decides on what, when & where to buy the product or service. </li></ul><ul><li>BUYER : The actual purchaser. </li></ul><ul><li>USER : The person who uses/consumes the product or service. </li></ul>Ref: Chapter 7 of Core Text
  41. 41. TYPES OF BUYING BEHAVIOR DEGREE OF INVOLVEMENT LOW HIGH DEGREE OF DIFFERENCES IN BRANDS HIGH LOW COMPLEX BUYING BEHAVIOR DISSONANCE- REDUCING BUYING BEHAVIOR VARIETY- SEEKING BUYING BEHAVIOR HABITUAL BUYING BEHAVIOR
  42. 42. TYPES OF BUYING BEHAVIOR <ul><li>COMPLEX BUYING BEHAVIOR : High involvement, very expensive, infrequently purchased,very risky, self-expressive products (designer jewelry, custom-designed sports cars, housing). </li></ul><ul><li>DISSONANCE REDUCING BUYING BEHAVIOR : High involvement, expensive, infrequently purchased, self-expressive products (furniture, white goods, PCs). </li></ul>Ref: Chapter 7 of Core Text
  43. 43. TYPES OF BUYING BEHAVIOR (CONTD) <ul><li>VARIETY SEEKING BUYING BEHAVIOR : Low involvement, frequently purchased, inexpensive products (pastries, biscuits, snacks). </li></ul><ul><li>HABITUAL BUYING BEHAVIOR : Low involvement, frequently purchased, inexpensive products (sugar, salt, flour, commodities). </li></ul>Ref: Chapter 7 of Core Text
  44. 44. THE BUYING DECISION PROCESS <ul><li>Problem/need Recognition </li></ul><ul><li>Information Search </li></ul><ul><li>Evaluation Of Alternatives </li></ul><ul><li>Purchase Decision </li></ul><ul><li>Postpurchase Behavior </li></ul>Ref: Chapter 7 of Core Text
  45. 45. PROBLEM/NEED RECOGNITION <ul><li>From Internal Stimuli: </li></ul><ul><li>Hunger </li></ul><ul><li>Thirst </li></ul><ul><li>Fear </li></ul><ul><li>From External Stimuli: </li></ul><ul><li>Neighbor’s Purchases </li></ul><ul><li>Advertisements </li></ul><ul><li>Window Shopping </li></ul><ul><li>Newspapers & Magazines </li></ul>Ref: Chapter 7 of Core Text
  46. 46. INFORMATION SEARCH <ul><li>From Personal Sources: </li></ul><ul><li>Family </li></ul><ul><li>Friends </li></ul><ul><li>Neighbors </li></ul><ul><li>Acquaintances </li></ul><ul><li>From Commercial Sources: </li></ul><ul><li>Advertisements </li></ul><ul><li>Dealers </li></ul><ul><li>Salespersons </li></ul><ul><li>Packaging </li></ul><ul><li>Displays </li></ul>Ref: Chapter 7 of Core Text
  47. 47. INFORMATION SEARCH (CONTD) <ul><li>From Commercial Sources: </li></ul><ul><li>Advertisements </li></ul><ul><li>Dealers </li></ul><ul><li>Salespersons </li></ul><ul><li>Packaging </li></ul><ul><li>Displays </li></ul>Ref: Chapter 7 of Core Text
  48. 48. INFORMATION SEARCH (CONTD) <ul><li>From Public Sources: </li></ul><ul><li>Mass Media </li></ul><ul><li>Chambers of Commerce </li></ul><ul><li>Consumer Rating Magazines </li></ul><ul><li>From Experiential Sources: </li></ul><ul><li>Handling the Product </li></ul><ul><li>Examining the Product </li></ul><ul><li>Using the Product </li></ul>Ref: Chapter 7 of Core Text
  49. 49. EVALUATION OF ALTERNATIVES <ul><li>Successive Sets in Consumer Decision-Making: </li></ul><ul><li>Total Set </li></ul><ul><li>Awareness Set </li></ul><ul><li>Consideration Set </li></ul><ul><li>Choice Set </li></ul><ul><li>Buying Decision </li></ul><ul><li>(continued) </li></ul>Ref: Chapter 7 of Core Text
  50. 50. EVALUATION OF ALTERNATIVES TOTAL SET AWARENESS SET CONSIDERATION SET CHOICE SET BUYING DECISION Ref: Chapter 7 of Core Text
  51. 51. PURCHASE DECISION <ul><li>Interfering Factors: </li></ul><ul><li>Attitudes of Others : Opposing and intense opinions of family members, close friends and acquaintances </li></ul><ul><li>Unanticipated situational factors : Changes in income, job transfer, loss of employment, change of priority e.g. sudden payment of educational fees etc. </li></ul>Ref: Chapter 7 of Core Text
  52. 52. POSTPURCHASE BEHAVIOR <ul><li>Post purchase Satisfaction: </li></ul><ul><li>Keep the Product </li></ul><ul><li>Store the Product </li></ul><ul><li>Convert to a Second Use </li></ul><ul><li>Post purchase Dissatisfaction: </li></ul><ul><li>Try to return the product/take legal recourse </li></ul><ul><li>Rent it </li></ul><ul><li>Get rid of it/Throw it </li></ul>Ref: Chapter 7 of Core Text
  53. 53. BUSINESS MARKETS VERSUS CONSUMER MARKETS <ul><li>Business Markets: </li></ul><ul><li>Fewer Buyers </li></ul><ul><li>Larger Buyers </li></ul><ul><li>Close Supplier-Customer Relationship </li></ul><ul><li>Geographically Concentrated Buyers </li></ul><ul><li>Inelastic Demand </li></ul><ul><li>Derived Demand </li></ul><ul><li>Professional Purchasing </li></ul><ul><li>Multiple Buying Influences </li></ul><ul><li>Direct Purchasing </li></ul><ul><li>Reciprocity </li></ul><ul><li>Leasing </li></ul>Ref: Chapter 8 of Core Text
  54. 54. MARKET SEGMENTATION Ref: Chapter 10 of Core Text
  55. 55. MARKET SEGMENTATION: VARIABLES <ul><li>Geographic Segmentation </li></ul><ul><li>Demographic Segmentation </li></ul><ul><li>Psychographic Segmentation </li></ul><ul><li>Behavioral Segmentation </li></ul>Ref: Chapter 10 of Core Text
  56. 56. SEGMENTATION VARIABLES (CONTD) <ul><li>Geographic Segmentation: </li></ul><ul><li>By Nations </li></ul><ul><li>By Regions </li></ul><ul><li>By States </li></ul><ul><li>By Cities </li></ul><ul><li>By Localities </li></ul>Ref: Chapter 10 of Core Text
  57. 57. SEGMENTATION VARIABLES (CONTD) <ul><li>Demographic Segmentation: </li></ul><ul><li>By Age </li></ul><ul><li>By Gender </li></ul><ul><li>By Income </li></ul><ul><li>By Education Level </li></ul><ul><li>By Religion/Race </li></ul><ul><li>By Nationality </li></ul>Ref: Chapter 10 of Core Text
  58. 58. SEGMENTATION VARIABLES (CONTD) <ul><li>Psychographic Segmentation: </li></ul><ul><li>By Personality </li></ul><ul><li>By Lifestyle </li></ul><ul><li>By Social Class </li></ul>Ref: Chapter 10 of Core Text
  59. 59. SEGMENTATION VARIABLES (CONTD) <ul><li>Behavioral Segmentation: </li></ul><ul><li>By Usage Pattern </li></ul><ul><li>By Occasion </li></ul><ul><li>By Loyalty Factor </li></ul><ul><li>By Attitude Towards The Product </li></ul>Ref: Chapter 10 of Core Text
  60. 60. THANK YOU ALL FOR YOUR PARTICIPATION IN THIS PROGRAMME
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