AB219 Marketing Unit Three Tonight’s Focus: Consumer and Business Buyer Behavior.

AB219 Marketing Unit Three

Tonight’s Focus:

Consumer and Business Buyer Behavior

What do I have to do this week?

• Reading: Chapter 5.

• Discussion: Toyota & Consumer

Buying Influences

• Career Development Activity (same format & requirements as discussions)

• U3 Quiz: “untimed” quiz

Complete by Tuesday @ 11:59 pm. (weekly deadline)

Discussion Requirement - Setting Up 2 APA Styled Reference Sources

• Website would be structured as follows:

Ghirardelli Chocolate (2011). Ghirardelli.com. Retrieved from http://www.ghirardelli.com/about/history

• Look at the “Referencing in APA Guide,“ in doc sharing, as a guide to setting up different types of reference sources.

• Look at the “Citing in APA Guide,” in doc sharing, as a guide to citing within your assignments & projects.

• You can also simply do a Google search on how to setup a particular reference type in APA format.

U2 Powerpoint Assignment

• How hard did you find it?

• What suggestions do you have to make it clearer on what has to be done?

• Please note that late submissions are under the late policy, out of fairness to all classmates, but better to get most points than none!

Grades & Work DeadlinesWhen are your Grades Posted/Work Graded?• By Sunday Evening after Unit closes!!!!!!!!!!!

• Click on the individual grades to see my comments. (Particularly for the Assignments, Research Projects & Discussions)

When is your Unit Work Due? • Weekly Deadline: Tuesdays @ 11:59 pm EST. • If no documented Life or personal emergency … late policy will apply. (this policy is strictly followed out

of fairness for entire class!)

What if I have a Problem or Emergency?• If an emergency or major problem comes up…………contact me! • If deadline is missed, get in touch with me as soon as possible to discuss it.

External Marketing Environment

• Microenvironmental actors that include:- The organization itself

- Suppliers

- Marketing Intermediaries

- Competitors

- Publics

- Customers

• Macroenvironmental Forces that inlclude:- Demographic environment- Economic environment- Natural environment- Technological environment- Political environment- Cultural environment

TOMS Shoes & External Environment

Marketing Mix & Macro/Micro environment

Review of Unit Two

• How did it go? Questions or concerns?

• Instructor suggestions for Unit 3

• Questions

Consumer Behavior

The buying behavior of people who purchase products for

personal or household use and not for business purposes.

We study consumer behavior in order to:• understand the major influences on what, where, when and how

consumers buy• be in a better position to develop marketing strategies

Influences on Consumer Behavior

• Four Factors: 1) Cultural, 2) Social 3) Personal

& 4) Psychological.

• Figure 5.2, in ebook, exemplifies these influences.

Culture

• Single broadest determinant of consumer behavior

• Accumulation of values, knowledge, beliefs, customs, objects, and concepts that characterizes a society

• INCLUDES Culture, Subculture and Social Class.

Subcultures

• Groups of individuals whose values and behavior patterns are similar

• Can be based on a number of factors, including- Geography

- Demographic characteristics

- Common experiences and history

Social Classes• Open groups of individuals with similar social rank

-Three most important factors: Education, Occupation, and Income

-Upper

-Middle

-Working

-Lower

Social InfluencesINCLUDES THE FOLLOWING:

• Reference Groups-Groups that we do or don’t want to be associated with-Opinion leaders are important in this influence grouping-Online social networking is increasingly being used to identify one’s reference group

• Family- Strong influences, particularly in early years

• Roles and Status- Where one sees or is placed in the group hierarchy

Personal Influences

INCLUDES THE FOLLOWING:

• Age and life cycle stage• Occupation• Economic situation• Lifestyle• Personality and self-concept

Think about the changes in consumption that take place as these personal influences change in a person’s life.

Psychological Factors – Motivation Factors

• Self actualization• Esteem• Social• Safety• Physiological

Psychological influences - Perception

• Selective Exposure

• Selective Distortion

• Selective Retention

Psychological Influences - Learning

• Change in behavior resulting from experience & information

• Begins with-Drive or Need-Cue- can be turned on by any sense-Response-Reinforcement-Generalization

Psychological Influences - Beliefs and Attitudes

• Beliefs-Descriptive and objective thought about something-Based on knowledge, opinion or faith-Does not carry emotional baggage that an attitude does

• Attitudes-Hard Direction to Change, but do-able- A belief linked to an emotion

A Few Other Consumer Behavior Concepts to Learn

• Consumer Buying Decision Process • Stages in the Consumer Adoption Process• Consumer Adoption Categories• What are the differences between Consumer &

Organizational Buying Behavior?

Consumer Decision Process 1. Problem Recognition

2. Information SearchInternalExternal

3. Evaluation of Alternativesconsideration setevaluative criteria

4. Purchase

5. Post Purchase EvaluationCognitive Dissonance

Stages in Consumer Adoption Process

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption

Adopter Categories – “Diffusion”

• Innovators• Early Adopters• Early Majority• Late Majority• Laggards

• One Note: You can fall into different categories depending on the product we are talking about.

Organizational Buying Behavior

• Different from consumer buying-Purchases are used to produce goods or services-Used to resell or rent to consumers

• Fewer buyers, but larger

• Process is more complex and involves more people than the consumer buying process

• Buying situations-New-task purchases-Straight rebuy-Modified rebuy

What do I have to do this week?

• Reading: Chapter 5.

• Discussion: Toyota & Consumer

Buying Influences

• Career Development Activity (same format & requirements as discussions)

• U3 Quiz: “untimed” quiz

Complete by Tuesday @ 11:59 pm. (weekly deadline)

Any Questions?

Thank you for attending!

See you next week .... Same Place, Same Time!