05/26/22 11:52 Prof. U.M. Amin, CMS, JMI University, New Delh i 1 Marketing Management MBA CP 205
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Marketing ManagementMBA CP 205
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Learning Objectives:
• Know how consumer characteristics influence buying decisions.• Know how consumers make purchasing decisions.• Know how marketers analyze consumer decision-making behavior.• Know what is the business market, and how it differs from the consumer market.• Know who participates in the business-to-business buying process.• Know how business buyers make their decisions.
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Factors influencing Consumer Behavior
Classification and Analysis of Markets
Cultural FactorsCultural Factors
Social FactorsSocial Factors
Personal FactorsPersonal Factors
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Culture
“Culture is the distinct way of life of a group of people and their complete design for living.”
“Culture refers to a set of values, ideas, artifacts and other meaningful symbols
that help individuals communicate, interpret, and evaluate as
members of society.”
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Sub-Cultures
NationalitiesNationalities
ReligionsReligions
Regional groupsRegional groups
Geographic regionsGeographic regions
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Social Classes
Classification and Analysis of Markets
Upper uppersLower uppersUpper middlesMiddle class
Working classUpper lowersLower lowers
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Characteristics of Social classes• Within a class, people tend to behave alike.
• Social class conveys perceptions of inferior or superior
position.
• Class may be indicated by a cluster of variables (occupation, income, wealth and value
orientation).
• Class designation is mobile over time.
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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ReferenceGroups
StatusesSocialRoles
Family
Social Factors
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Reference Groups
Membership groups
Membership groups
Primary groupsPrimary groups
Secondary groups
Secondary groups
Aspirational groupsAspirational groups
Dissociative groupsDissociative groups
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Personal factors
Classification and Analysis of Markets
Personality
Wealth
Selfconcept
Occupation
Lifecyclestage
Lifestyle
Values
Age
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Family Lifecycle
Classification and Analysis of Markets
Behavior changesaccording to life cycle stage
• Family• Psychological• Critical life events
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Brand Personality
Classification and Analysis of Markets
SinceritySincerity
ExcitementExcitement
CompetenceCompetence
SophisticationSophistication
RuggednessRuggedness
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Model of Consumer behavior
MarketingStimuli
ProductPricePlacePromotion
OtherStimuli
EconomicTechnologicalPoliticalCultural
Consumers’Characteristics
CulturalSocialPersonal
Buyer’s decision processProblem recognitionInformation searchEvaluation of AlternativesPurchase decisionPost purchase evaluation
Buyer’s decisionsProduct choiceBrand choiceDealer choicePurchase timingPurchase amount
Classification and Analysis of Markets
ConsumersPsychology
MotivationPerceptionLearningMemory
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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• Consumer decision making comes about as an attempt to solve consumer problems.• No one buys a product unless one has a problem, a need or a want.• The CDP Model represents a roadmap of consumers’ minds that we as marketers can use to help us guide Product mix, communication and Marketing Strategies.• It captures activities that occur when decisions are made and depicts how consumers think, evaluate and act.
The Consumer decision Process
Classification and Analysis of Markets
04/11/23 23:21 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Stages of Consumer Decision Process Model
Need Recognition or Problem solving
Search for Information
Pre-Purchase Evaluation of alternatives
Purchase
Consumption
Post-Consumption Evaluation
Divestment
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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• Need Recognition: Need or problem recognition occurs when the consumer senses a difference between what he or she perceives to be ideal versus the actual state of affairs.
• Search for Information: Environmental influences and Individual differences are sources for search for information.
• Search can be from two sources: Internal and External . Internal search is from the memory. External search is influenced by Marketer and Non-Marketer dominated Stimuli.
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Pre-Purchase Evaluation of alternatives:
• Consumers compare, contrast and select from various products or services.• Different Consumers employ different criteria.• Evaluation of choices influenced by both individual & Environmental influences.• Attributes on which evaluations based may be salient or determinant. • Salient attributes include price, quality and reliability etc. Determinant attributes include style and finish etc.
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Purchase:
• The consumers after deciding whether to purchase or not, move through two stages. • In the first phase they choose the form of retailing and choice of retailers. For example, Electronic sale, Internet based marketing or direct marketing.• During the second phase, consumers make in store choices. Astute retailers manage the overall attributes and image of the store to ensure satisfying experience for the consumer.
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Consumption and Post consumption Evaluation:
• Consumption may be immediate or delayed.• How consumers use the products affects how satisfied they are with the purchases and determines whether they will make repurchase.• How carefully consumers use or maintain the product determines how long the product will last and when will the repurchase be made.• During post consumption evaluation stage, consumers experience satisfaction or dissatisfaction.
Classification and Analysis of
Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Business Buying Behavior
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Organizational Buying
It is the decision making process by which formal organizations establish the need
for purchased products and services and identify, evaluate and chose
among alternative brands and suppliers.
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Characteristics of Business Markets
Classification and Analysis of Markets
• Fewer, larger buyers• Close supplier-
customer relationships• Professional purchasing• Many buying influences• Multiple sales calls
• Derived demand• Inelastic demand• Fluctuating demand• Geographically
concentrated buyers• Direct purchasing
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Buying Situations
Straight RebuyStraight Rebuy
Modified RebuyModified Rebuy
New TasksNew Tasks
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Systems Buying and Selling
Classification and Analysis of Markets
Turnkey solution desired;
Bids solicited
PrimeContractors
Second-tierContractors
System subcomponents
assembled
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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The Buying centre
InitiatorsInitiators
UsersUsers
InfluencersInfluencers
DecidersDeciders
ApproversApprovers
BuyersBuyers
GatekeepersGatekeepers
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Of Concern to Business Marketers
• Who are the major decision participants?
• What decisions do they influence?
• What is their level of influence?
• What evaluation criteria do they use?
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Sales Strategies
Classification and Analysis of Markets
Small Sellers
Large Sellers
Key Buying Influencers
MultilevelIn-depthSelling
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Types of Business Customers
Price-oriented
Strategic-value
Gold-standard
Solution-oriented
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Handling Price-Oriented Customers
Limit Quantity Purchased
Limit Quantity Purchased
Allow no refundsAllow no refunds
Make no adjustmentsMake no adjustments
Provide no servicesProvide no services
Classification and Analysis of Markets
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Purchasing Orientations
Buying
Procurement
Supply Chain Management
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Product Related Purchasing Processes (Value/risk)
Routine ProductsRoutine Products
Leverage ProductsLeverage Products
Strategic ProductsStrategic Products
Bottleneck ProductsBottleneck Products
Classification and Analysis of Markets
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Buy Grid Framework
Classification and Analysis of Markets
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• The proposals received from vendors as per laid down specifications are scrutinized based on:
Past reputation. Efficiency, durability and maintainability of the product. Delivery period Terms of payment Price Guarantees offered After sales service
• Formal purchase orders are placed on selected vendor after negotiations.
Classification and Analysis of Markets
04/11/23 23:22 Prof. U.M. Amin, CMS, JMI University, New Delhi
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Recap:
• How consumer characteristics influence buying decisions.• How consumers make purchasing decisions.• How marketers analyze consumer decision-making behavior.• What is the business market, and how it differs from the consumer market.• Who participates in the business-to-business buying process.• How business buyers make their decisions.
Classification and Analysis of Markets