Marketing management-by-philip-kotler-719-slides-1234238345990514-2 untitled7-7


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Marketing management-by-philip-kotler-719-slides-1234238345990514-2 untitled7-7

  1. 1. Chapter 7Analyzing ConsumerMarkets and Buyer Behaviorby PowerPoint by Milton M. Pressley University of New Orleans 1-187
  2. 2. Kotler onMarketingThe most important thing is to forecast where customers are moving, and be in front of them. 1-188
  3. 3. Chapter ObjectivesIn this chapter, we focus on two questions: How do the buyers’ characteristics – cultural, social, personal, and psychological – influence buying behavior? How does the buyer make purchasing decisions? 1-189
  4. 4. Influencing Buyer Behavior Consumer BehaviorCultural Factors Culture Subcultures Diversity marketing Social class 1-190
  5. 5. Influencing Buyer Behavior Social Factors Reference Groups Reference groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups Opinion leader 1-191
  6. 6. Table 7.1: Characteristics of Major U.S. Social Classes1. Upper Uppers The social elite who live on inherited wealth. They (less than 1%) give large sums to charity, run the debutante balls, maintain more than one home, and send their children to the finest schools. They are a market for jewelry, antiques, homes, and vacations. They often buy and dress conservatively. Although small as a group, they serve as a reference group to the extent that their consumption decisions are imitated by the other social classes.2. Lower Uppers Persons, usually from the middle class, who have (about 2%) earned high income or wealth through exceptional ability in the professions or business. They tend to be active in social and civic affairs and to buy the symbols of status for themselves and their children. They include the nouveau riche, whose pattern of conspicuous consumption is designed to impress those below them. See text for complete table 1-192
  7. 7. Influencing Buyer Behavior Secondary groups Aspirational groups Dissociative groups Opinion leader 1-193
  8. 8. Influencing Buyer Behavior Family Family of orientation Family of procreation Roles and Statuses Role Status 1-194
  9. 9. With the “graying” of the American populace,marketers have begun to shift images andcultural references in advertising from thingsthat are relevant to the twenty-somethings to twenty-images of active seniors, and soundtracksfrom the sixties and seventies. Can youidentify any particularad campaigns that fitthis pattern? 1-195
  10. 10. Influencing Buyer Behavior Personal Factors Age and Stage in the Life Cycle Family life cycle Occupation and Economic Circumstances 1-196
  11. 11. In recent years, many organizations have“provided” televisions with limited programmingaccess for use in K-12 classrooms. Do these K-entities have a moral obligation to avoid overtmarketing to their captive audiences, or is this avalid tool for introducing offerings to futureconsumers? What should theresponsibilities of the educatorsbe in these situations? 1-197
  12. 12. Table 7.2: Stages in the Family Life Cycle1. Bachelor stage: Few financial burdens. Fashion opinionYoung, single, not living leaders. Recreation oriented. Buy: basic homeat home equipment, furniture, cars, equipment for the mating game; vacations.2. Newly married Highest purchase rate and highest averagecouples: purchase of durables: cars, appliances,Young, no children furniture, vacations.3. Full nest I: Home purchasing at peak. Liquid assets low.Youngest child under Interested in new products, advertisedsix products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sleds, skates.4. Full nest II: Financial position better. Less influenced byYoungest child six or advertising. Buy larger-size packages, larger-over multiple- multiple-unit deals. Buy: many foods, cleaning materials, bicycles, music lessons, pianos. See text for complete table 1-198
  13. 13. Figure 7.2: The VALS segmentation system: An 8-part typologyGroups with HighResources1. Actualizers2. Fulfilleds3. Achievers4. ExperiencersGroups with LowerResources1. Believers2. Strivers3. Makers4. Strugglers 1-199
  14. 14. SRI Consulting Business Intelligence’s Web site 1-200
  15. 15. Influencing Buyer Behavior Personality and Self-Concept Self- Personality Brand personality Sincerity Excitement Competence Sophistication Ruggedness Self- Self-concept Person’s actual self-concept self- Ideal self-concept self- Others’ self-concept self- 1-201
  16. 16. Influencing Buyer Behavior Psychological Factors Motivation Motive Freud’s Theory Laddering Projective techniques 1-202
  17. 17. Influencing Buyer Behavior Ernest Dichter’s research found: Consumers resist prunes because prunes are wrinkled looking and remind people of old age. Men smoke cigars as an adult version of thumb sucking. Women prefer vegetable shortening to animal fats because the latter arouse a sense of guilt over killing animals. Women don’t trust cake mixes unless they require adding an egg, because this helps them feel they are giving “birth.” 1-203
  18. 18. Influencing Buyer Behavior Maslow’s Theory Figure 7.3: Maslow’s Hierarchy of Needs 1-204
  19. 19. Influencing Buyer Behavior Herzberg’s Theory Dissatisfiers Satisfiers 1-205
  20. 20. Influencing Buyer Behavior Perception Selective attention People are more likely to notice stimuli than relate to a current need People are more likely to notice stimuli than they anticipate People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli Selective distortion Selective retention 1-206
  21. 21. Influencing Buyer Behavior Learning Drive Cues Discrimination Beliefs and Attitudes Belief Spreading activation Attitude 1-207
  22. 22. The purchase of a product from a Company Aturns out to be a positive experience. You arelooking for a loosely related product, which is alsooffered by Company A. Do you assume that youwill again have a positive experience withCompany A’s offering, or do youlook for the “best of breed,”regardless of whichcompany offers it? 1-208
  23. 23. The Buying Decision Process Buying Roles Initiator Influencer Decider Buyer User Buying behavior 1-209
  24. 24. Table 7.3: Four Types of Buying Behavior High Involvement Low InvolvementSignificant Differences Complex buying Variety- Variety-seekingbetween Brands behavior buying behaviorFew Differences between Dissonance- Dissonance-reducing Habitual buyingBrands buying behavior behavior 1-210
  25. 25. The Buying Decision Process Complex Buying Behavior Dissonance- Dissonance-Reducing Buyer Behavior Habitual Buying Behavior Variety- Variety-Seeking Buying Behavior 1-211
  26. 26. Stages in the Buying Decision ProcessHow marketers learn about the stages: Introspective method Retrospective method Prospective method Prescriptive methodUnderstanding by mapping the customer’s Consumption system Customer activity cycle Customer scenarioMetamarketMetamediaries 1-212
  27. 27. The home page shows the variety ofservices this Web company offers those shoppingfor a car. 1-213
  28. 28. Stages of the Buying Decision ProcessProblem recognitionInformation search Personal sources Figure 7.4: Commercial sources Five-Stage Model of the Public sources Consumer Buying Experiential sources Process 1-214
  29. 29. Figure 7.5: Successive Sets Involved in Customer Decision Making 1-215
  30. 30. The Buying Decision Process Evaluation of Alternatives Potential Attributes of interest Cameras Hotels Mouthwash Tires Brand beliefs Brand image 1-216
  31. 31. Table 7.4: A Consumer’s Brand Beliefs about ComputersComputer Attribute Memory Graphics Size and Capacity Capability Weight Price A 10 8 6 4 B 8 9 8 3 C 6 8 10 5 D 4 3 7 8 1-217
  32. 32. The Buying Decision Process Strategies designed to stimulate interest in a computer Redesign the computer Alter beliefs about the brand Alter beliefs about competitors’ brands Alter the importance weights Call attention to neglected attributes Shift the buyer’s ideas 1-218
  33. 33. The Buying Decision Process Purchase Decision Figure 7.6: Steps Between Evaluation of Alternatives and a purchase decision 1-219
  34. 34. The Buying Decision Process Informediaries Consumer Reports Zagats Unanticipated situational factors Perceived risk Brand decision Vendor decision Quantity decision Timing decision Payment- Payment-method decision 1-220
  35. 35. The Buying Decision Process Postpurchase Behavior Postpurchase Satisfaction Disappointed Satisfied Delighted Postpurchase Actions Postpurchase Use and Disposal 1-221
  36. 36. Figure 7.7: How Customers Dispose of Products 1-222
  37. 37. The Buying Decision Process Other Models of the Buying Decision Process Health Model Stages of Change Model Precontemplation Contemplation Preparation Action Maintenance Customer Activity Cycle Model Pre, during and post phases 1-223
  38. 38. Figure 7.8:Activity cyclefor IBMcustomers inthe globalelectronicnetworkingcapabilitymarket space 1-224
  39. 39. Figure 7.9:Value addsfor IBMcustomers inthe globalelectronicnetworkingcapabilitymarket space 1-225
  40. 40. Chapter 8Analyzing Business Marketsand Business BuyingBehaviorby PowerPoint by Milton M. Pressley University of New Orleans 1-226
  41. 41. Kotler onMarketingMany businesses are wisely turning their suppliers and distributors into valued partners. 1-227
  42. 42. Chapter ObjectivesIn this chapter, we focus on six questions: What is the business market, and how does it differ from the consumer market? What buying situations do organizational buyers face? Who participates in the business buying process? What are the major influences on organizational buyers? How do business buyers make their decisions? How do institutions and government agencies do their buying? 1-228
  43. 43. What is Organizational Buying? Organizational buyingThe business market versus the consumermarket Business market Fewer buyers Larger buyers Close supplier-customer relationship supplier- Geographically concentrated buyers 1-229
  44. 44. What is Organizational Buying? Derived demand Inelastic demand Fluctuating demand Professional purchasing 1-230
  45. 45. Blue Shield of California’s mylifepath 1-231
  46. 46. What is Organizational Buying? Several buying influences Multiple sales calls Directed purchasing Reciprocity Leasing 1-232
  47. 47. If you were tasked with marketing aproduct or service to an organization,would you attempt to initially contact thepurchasing department, or potential department,users of your company’s offerings? Why?Would the product youwere selling make adifference? Why? 1-233
  48. 48. What is Organizational Buying? Buying Situations Straight rebuy Modified rebuy New Task Systems Buying and Selling Systems buying Turnkey solution Systems selling 1-234
  49. 49. What are some of the benefits to anorganization that can be derivedfrom a single source solution, or a solution,systems buying arrangement with aprime contractor? What are some ofthe potential pitfalls? Whatcan the company do toprotect itself fromthese hazards? 1-235
  50. 50. Participants in the Business Buying Process The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers Key buying influencers Multilevel in-depth selling in- 1-236
  51. 51. Figure 8-1: Major Influences on Industrial Buying Behavior 1-237
  52. 52. Major Influences on Buying DecisionsEnvironmental FactorsOrganizational Factors Purchasing- Purchasing-Department Upgrading Cross- Cross-Functional Roles Centralized Purchasing Decentralized Purchasing of Small-Ticket Small- Items Internet Purchasing 1-238
  53. 53. The e-hub home page offers buyers and e-sellers of plastics a marketplace plus news andinformation 1-239
  54. 54. Covisint’s Web site offers both services andinformation 1-240
  55. 55. Major Influences on Buying Decisions Other Organizational Factors Long- Long-Term Contracts Vendor- Vendor-managed inventory Continuous replenishment programs Purchasing- Purchasing-Performance Evaluation and Buyers’ Professional Development Improved Supply Chain Management Lean Production Just-in- Just-in-time 1-241
  56. 56. Major Influences on Buying DecisionsInterpersonal and Individual FactorsCultural Factors France Germany Japan Korea Latin America 1-242
  57. 57. The Purchasing/Procurement Process Incentive to purchaseThree Company Purchasing Orientations Buying Orientation Commoditization Multisourcing Procurement Orientation Materials requirement planning (MRP) Supply Chain Management Orientation 1-243
  58. 58. The Purchasing/Procurement ProcessTypes of Purchasing Processes Routine products Leverage products Strategic products Bottleneck products 1-244
  59. 59. The Purchasing/Procurement Process Stages in the Buying Process Problem Recognition General Need Description and Product Specification Product value analysis Supplier Search Vertical hubs Functional hubs Direct external links to major suppliers Buying alliances Company buying sites Request for proposals (RFPs) 1-245
  60. 60. Table 8.1: Buygrid Framework: Major Stages (Buyphases) of theIndustrial Buying Process in Relation to Major Buying Situations (Buyclasses) Buyclasses New Modified Straight Task Rebuy Rebuy 1. Problem recognition Yes Maybe No 2. General need description Yes Maybe No 3. Product specification Yes Yes YesBuyphases 4. Supplier search Yes Maybe No 5. Proposal solicitation Yes Maybe No 6. Supplier selection Yes Maybe No 7. Order-routine specification Order- Yes Maybe No 8. Performance review Yes Yes Yes 1-246
  61. 61. The Purchasing/Procurement ProcessGeneral Need Description andProduct Specification Product value analysisSupplier Search Vertical hubs Functional hubs Direct extranet links to major suppliers Buying alliances Company buying sites Request for proposals (RFPs) 1-247
  62. 62. The Purchasing/ Procurement ProcessProposal SolicitationSupplier Selection 1-248
  63. 63. Table 8-2: An Example of Vendor AnalysisAttributes Rating Scale Importance Poor Fair Good Excellent Weights (1) (2) (3) (4)Price .30 xSupplier reputation .20 xProduct reliability .30 xService reliability .10 xSupplier Flexibility .10 xTotal score: .30(4) + .20(3) + .30(4) + .10(2) + .10(3) = 3.5 1-249
  64. 64. The Purchasing/ Procurement Process Customer value assessment Routine- Routine-order products Procedural- Procedural-problem products Political- Political-problem productsOrder-Order-Routine Specification Blanket contract Stockless purchase plansPerformance Review Buyflow map 1-250
  65. 65. Figure 8-2: Major Influences on Industrial Buying Behavior 1-251
  66. 66. Institutional andGovernment MarketsInstitutional market 1-252