THARAKA DIAS MBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia), MSLIM
PsychologySociologyAnthropology(science of humanity)MarketingEconomics AOT - www.tharakadias.com 2
Because no longer can we take the customer/consumer forgranted.
Out of 11000 new productsintroduced by 77 companies, only 56%are present 5 years later.Only 8% of new product conceptsoffered by 112 leading companiesreached the market. Out of that 83%failed to meet marketing objectives. AOT - www.tharakadias.com 4
All managers must become respectanalysts of consumer motivation andbehaviour
No.Because cross - cultural styles, habits, tastes,prevents such standardisation.
The more successful a firm has been in thepast, the more likely is it to fail in the future.
Because people tend to repeat behaviour forwhich they have been rewarded.
“Please leave your values at the desk” - Paris hotel“Drop your trousers here for best results” -Bangkok laundry“The manager has personally passed all waterserved here” - Acapulco restaurant“Because of the impropriety of entertaining guestsof the opposite sex in the bedroom, it is suggestedthat the lobby be used for the purpose.” - ZurichhotelLadies are requested not to have children in thebar.”-bar.”- Norway bar AOT - www.tharakadias.com 9
“Come alive out of the grave” -Germany“Pepsi brings your ancestors backfrom the grave” - China AOT - www.tharakadias.com 10
Characteristics of Business Markets Sales in the business market far exceed sales in consumer markets.AOT - www.tharakadias.com 27
Characteristics of Business Markets Business markets differ from consumer markets in many ways. ▪ Marketing structure and demand ▪ Nature of the buying unit ▪ Types of decisions and the decision process AOT - www.tharakadias.com 28
Characteristics Compared to consumer markets: Marketing Business markets Structure and ▪ have fewer but larger Demand customers Nature of the Business customers ▪ are concentrated Buying Unit geographically Types of Demand is different Decisions and ▪ Derived demand the Decision ▪ Price inelastic Process ▪ Fluctuates more, and changes more quickly AOT - www.tharakadias.com 29
Characteristics Compared to consumer Marketing purchases: Structure and Business purchases Demand involve more buyers Nature of the in the decision Buying Unit process. Types of Purchasing efforts are Decisions and undertaken by the Decision professional buyers. Process AOT - www.tharakadias.com 30
Characteristics In comparison to consumer Marketing purchases: Structure and Business buyers face Demand more complex buying Nature of the decisions. Buying Unit The buying process is Types of more formalized. Decisions and Buyers and sellers the Decision work together closely and build long-term Process relationships. AOT - www.tharakadias.com 31
Major Types of Buying Situations Straight rebuy ▪ Reordering without modification Modified rebuy ▪ Requires modification to prior purchase New task ▪ First time purchase AOT - www.tharakadias.com 33
Systems Selling: Buying a packaged solution to a problem from a single seller. ▪ Convenience is a major benefit Often a key marketing strategy for businesses seeking to win and hold accounts. AOT - www.tharakadias.com 34
Participants in the Buying Decision ProcessUsers InfluencersBuyers Deciders Gatekeepers AOT - www.tharakadias.com 35
Emotions also play a role in business buying.Volvo stresses that the trucks’ benefits willmake “drivers a lot more possessive”. 7- 36
Major Influences onBusiness Buyer Behavior 7- 37
Eight Stages: Stage 6: Supplier Selection Stage 7: Order-Routine Specification ▪ Blanket contracts are often used for maintenance, repair and operating items. Stage 8: Performance Review AOT - www.tharakadias.com 46
Business Buying on theInternet E-procurement is growing rapidly. Reverse auctions account for much of the online purchasing activity. E-procurement offers many benefits: ▪ Access to new suppliers ▪ Lower purchasing costs ▪ Quicker order processing and delivery AOT - www.tharakadias.com 47
Institutional MarketsThe Background:Institutional marketsare often overlooked inB2B marketingThe Potential: Thismarket is somewhatrecession-resistant;great target for hardeconomic times AOT - www.tharakadias.com 48
Institutional MarketsTiming is Important:.For example, Augustis a good month forschools, but often apoor time for otherinstitutions due toworker vacations. AOT - www.tharakadias.com 49
Government Markets Most firms that sell to government buyers are not marketing-oriented. Some companies have separate government marketing departments. Much of government buying has migrated online. AOT - www.tharakadias.com 50