Business Essentials 9e Ebert/Griffin Marketing Processes and Consumer Behavior chapter eleven.
1 CHAPTER 11 Understanding Marketing Processes and consumer behavior Reference: Ebert & Griffin...
Transcript of 1 CHAPTER 11 Understanding Marketing Processes and consumer behavior Reference: Ebert & Griffin...
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CHAPTER 11Understanding
Marketing Processes and consumer
behaviorReference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall
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WHAT IS MARKETING?
Marketing (التسويق) is defined as the process of:
Planning and executing the conception (idea) ( مفهوم وتنفيذ having an idea for a product) (تخطيطor service and making it a reality)
Pricing (setting a price consumers will pay)Promotion (الترقيه) (advertising the product to tell
people about it)Distribution (توزيع) (placing the product in stores
where people will see it – and want to buy it) Of ideas, goods, and services to create exchanges
that satisfy individual (buying and selling) (تبادالت)(people) and organizational (company) objectives.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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PROVIDING VALUEAND SATISFACTION (1)
What attracts buyers to one product and not another?
Value (القيمه) compares a product’s benefits with its costs
A satisfied buyer believes the benefits gained from purchasing the product (الفاءدات)are greater than the cost of purchasing the product (satisfied buyer = Benefits>Cost)
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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PROVIDING VALUEAND SATISFACTION (2)
Satisfaction (or utility) is the ability of a product to satisfy a human want or need
Marketing tries to provide four forms of satisfaction or utility:
1. Time – when is the product purchased2. Place – where is the product purchased3. Ownership – the terms of sale of the product4. Form – the features of the product
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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MARKETING: GOODS, SERVICES, AND IDEAS
The marketing of products can be divided into four main categories:
1. Consumer goods2. Industrial (الصناعية) goods3. Services4. Ideas
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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GOODS1. Consumer goods are products that we buy for personal use
( الشخصي :(استعمالExample: Cars, Telephones, Clothes, Medicines Companies that sell products to consumers for personal use are
engaged in consumer marketing2. Industrial goods are products used by companies to produce
other products: Example: Aluminum, Plastic, Steel Construction equipment ( معدات(البناء
Companies that sell products to other manufacturers are engaged in industrial marketing
3. Services are intangible ( المعنوية goods (things you (الحاجةcannot see and touch) such as:Example: Time with a lawyer, Expertise of a financial planner,
Insurance for your car, hairdresser, gym Companies that sell services are engaged in service marketing
4. Marketers also promoted ideas such as:Example: Driving safely, health problems caused by smoking, keep
Bahrain tidy.Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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RELATIONSHIP (العالقة) MARKETING
Marketing sometimes focuses on one purchase – we need or want the product, and we go and buy it. This is a single transaction ( معاملة.one purchase from one company – (واحدة
Relationship marketing tries to build long-lasting relationships with customers - to keep the customer coming back again and again so that there are many transactions – many purchases from the same company…..(Example: centerpoint card, Jawad loyalty card, sky wards card, gifts)
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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THE MARKETING ENVIRONMENT
Marketing programs of companies can be influenced (تأثر) by the company’s external environment ( الخارجية things –(البيئةoutside the company that can influence the marketing program
Sometimes these outside factors can be opportunities(الفرص) (good things) and sometimes they can be threats (التهديدات) (bad things)
These external factors are: – Political-legal, – Social-cultural, – technological, – economic, – competitive environments.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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EXTERNAL FACTORS INFLUENCING MARKETING (1)
1. Political and Legal Environment ( والقانونية السياسية :(البيئةGovernment regulations can influence a company’s business:
A law banning smoking cigarettes in malls and restaurants would influence tobacco companies.
A law banning using mobile phones in cars would influence mobile phone providers.
2. Social and Cultural Environment ( والثقافيه االجتماعية :(البيئةValues, beliefs and ideas ( واألفكار والمعتقدات of (القيمconsumers influence what they buy:
Today, more people want to join fitness clubs to keep good health – so more fitness clubs have opened
More women drive cars – so car manufacturers have made the interiors of cars more pleasing to women
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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EXTERNAL FACTORS INFLUENCING MARKETING (2)
3. Technological Environment ( تكنولوجيه :(بيئةNew technologies affect how products are marketed New products are available such as the satellite dish, internet
shopping. A new product – the CD – can make an old product – the audiotape
– obsolete (الباليه)
4. Economic Environment ( االقتصادية :(البيئةThe economic conditions in a country influence the way consumers buy goods
If the economic conditions in the country are good (high employment, low inflation) – consumers spend money
If the economic conditions in the country are not good (high unemployment, high inflation) – consumers do not spend money.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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EXTERNAL FACTORS INFLUENCING MARKETING (3)
5. Competitive Environment ( بيئة:(تنافسيةA marketing program tries to make one product seem more attractive (جذاب) than another product. The goal of the marketer is to make the consumer spend his or her money on their company’s product – not on a similar product produced by another company – a competitor.
The consumer has money to purchase one item – so BHS is going to try to make their products seem more attractive so that the consumer spends money in BHS – not in Debenhams
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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THE MARKETING MIX
When marketing managers plan their marketing campaigns, they rely on the “Four P’s” of marketing:
Product, Pricing, Promotion, Place ( والمكان والترويج والتسعير (المنتجات
(P 255 / 4th & P 294 / 5th)
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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Marketing Mix Product
Marketing begins with a product – a good, service, or idea designed to fill a consumer need (or want!)
Product differentiation ( المنتجات بين describes the way (المفاضلهmanufacturers try to make the image or features (ميزات) of their product appear different – and better – than other similar products Example: Manufacturers of cars may advertise their products in a way that
makes them seem safer, faster, or better designed than other makes of cars.
Pricing
Pricing a product is selecting the most appropriate (مناسب) price at which to sell it. The product must be priced high enough that the company making the
product will make a profit. The product cannot be priced too high – if it is too high, consumers will not buy it. A “middle” price has to be found – one that makes a profit for the manufacturer and is also acceptable to the consumer.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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MARKETING MIX
PlacePlace refers to the distribution(توزيع) of the product – placing the product for sale in the proper outlet – perhaps a retail store. Products must be transported from the manufacturer to the
retail store – by plane, by road, by rail. Products may also have to be stored in a warehouse before
being sold and the correct inventory has to be decided. Promotion (الترقيه)
is the way in which manufacturers communicate information about their products to consumers. Examples: Advertising, Personal Selling, Sales Promotions, and
Public Relations
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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CHOOSINGTHE MARKETING MIX
Product – The basic design of the product+Price – How much the consumer will pay+Place – Where and when the product is
available+Promotion – Product image and visibility=Customer satisfaction and business profitability
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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Promotion: ADVERTISING
Advertising (االعالن) is any paid non-personal communication used to identify a product. To advertise products, companies use:
NewspapersMagazinesTVRadioBillboardsInternet Web Sites
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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Promotion: PERSONAL SELLING
This is person-to-person selling – the sales representative of one company visits the purchasing agent or another company to inform the purchasing agent about the product
Personal selling to consumers is done through sales clerks in stores, insurance salesmen for car and home insurance, and real estate agents when buying land or houses
These are used to encourage consumers to buy products – they are used to “promote” sales
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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Promotion: PUBLIC RELATIONS ( العامة (العالقات
Public relations are used to build goodwill and a favorable attitude ( إيجابي موقف وبناء النية towards (وحسنthe company or product.
Companies hope that by building goodwill towards their company, consumers will buy more of their products
Companies such as Batelco sponsor sports teams ( رعايه فيالرياضية to help young people become involved in sporting (الفرق
activities.
McDonald’s funds “Ronald McDonald Houses” – houses where the parents of sick children can stay at no cost while their children are in the hospital in a different city from where their own home is located.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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TARGET MARKETING AND MARKET SEGMENTATION
All people do not want or need the same products and services, therefore we target market ( التسويق .(هدف
Target marketing – groups of people with similar wants and needs.
Identifying the target market is usually the first step in developing a marketing strategy ( تسويق استراتيجية .(وضع
Example: Clothes – we all need clothes – but we want different types of clothes – teenagers want different clothes from their parents. Teenagers are one target market; parents are another.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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MARKET SEGMENTATION ( السوق (تجزئة
This refers to taking a target market – teenagers – and dividing (تقسيم) the total market into customer types or “segments”.
Clothing manufacturers make different types of clothes to appeal to the tastes of different types of teenagers.
Cars are another good example – there are many different types of cars from a small Honda Civic to a large Range Rover. They are all cars – but very different types of cars – and they attract different types of customers.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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UNDERSTANDINGCONSUMER BEHAVIOR
What makes us buy one product and not buy another?
Why do we buy a Nokia phone and not an Eriksson phone?
Consumer behavior ( المستهلك is (سلوكthe study of the decision process by which customers come to purchase and consume products
(P 261 / 4th & P 299 / 5th)
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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INFLUENCES ONCONSUMER BEHAVIOR (1)
What influences (تأثيرات) our behavior when we buy a product?
Is it our own motivations, abilities, and attitudes – the need to impress others by
driving a large, expensive car? (Psychological influences ( التأثيرات((النفسية
Is it our lifestyle – a mother with three young children will find it easier to drive the
children in a jeep instead of a small car. (Personal influences ( التأثيرات((الشخصيه
Is it the opinion of our family and friends who recommend a certain car because they have had good experience with that car? (Social influences ( التأثيرات((االجتماعية
Is it because all of our family and friends own similar cars – and we want to “fit” into the group? (Cultural influences ( الثقافيه ((التأثيرات
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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Brand Loyalty and THE CONSUMERBUYING PROCESS
Brand Loyalty (( والء التجارية means that consumers regularly ((العالمهpurchase the same products because they are satisfied with the performance of the product.
Marketers study the consumer buying process ( المستهلك شراء to (عمليةfind out what influences a consumer:
From the time the consumer decides he or she needs a product
To the time the consumer buys the product
Until the time the consumer uses (or consumes) the product
Imagine you decide to buy a new mobile phone. What would interest marketers in how you made your decision as to which mobile phone to buy?
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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The Consumer Buying Process[1]
1. Problem/need recognition ( / الحاجة المشكلةاالعتراف the first step where the consumer :(الى
recognizes a problem or need. Example: after exercise, you may realize that you are thirsty (need to buy water).
2. Information seeking ( المعلومات عن :(البحثthe second step is to search for information, not always extensive search, but in major purchases (like buying a car) most people seek information from personal sources, public sources, and experiences.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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The Consumer Buying Process[2]3. Evaluation of alternatives ( البدائل by :(تقييم
analyzing product attributes (color, price, quality) you can will compare products before deciding which one best meets your record.
4. Purchase decision ( الشراء ”buy“ :(قرارdecisions are based on rational motives, and emotional motives. Rational motives ( الرشيد reasons for :(دوافع
purchasing a product that are based on a logical evaluation of product attributes. (cost, quality, usefulness)
Emotional motives ( عاطفيه Reasons for :(دوافعpurchasing a product that are based on nonobjective factors.
(sociability, imitation of others).Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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5. Post purchase evaluation ( التقييم شراء :(بعد
what the consumer feel after the sale is important. Marketers want the customers to be happy after buying the product so they can buy them again.
consumers do not want to go through complex decisions process for every purchase, they often repurchase products they have used and like.
unsatisfied consumer are not likely to buy the product again, and they will more broadcast their bad experience rather than satisfied consumers.
The Consumer Buying Process[3]
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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WHAT IS A PRODUCT?
When consumers purchase a product – ideas, goods, or services – they actually purchase much more than the product itself.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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PRODUCT FEATURES and Benefits
Product features (ميزات) are the qualities that a company builds in to its products.
Product benefits (الفاءدات) are what use of the product gives you
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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VALUE PACKAGE ( قيمة(الصفقة
Today’s consumer sees a product as a “bundle” or “group” of attributes (الصفات) (features and benefits) that together form the “value package”
Buyers expect to receive products with greater value – products with more features and benefits at a reasonable cost
Some of these possible attributes for the purchase of a personal computer are listed on the next side
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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PERSONAL COMPUTERVALUE PACKAGE
Choices in monitors, keyboards, and processing capabilities
Choices in colourAttractive software packagesAttractive pricesFast deliveryWarranties (guarantees)Technical supportPrestige of owning a “state-of-the-art” computer
system
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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CLASSIFYING (تصنيف)GOODS & SERVICES
One way to classify products (to put them into groups) is according to expected buyers.
There are two groups of buyers:
Buyers of consumer products ( المنتجات(االستهالكيه
Buyers of industrial products ( المنتجات(الصناعية
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
32
CLASSIFYINGCONSUMER PRODUCTS
Consumer products are usually divided into three groups:
Convenience (راحة) Goods & Convenience Services
Shopping Goods and Shopping Services
Specialty (التخصص) Goods and Specialty Services
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
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CONVENIENCE GOODSAND CONVENIENCE SERVICES
These convenience (easy) products and services are purchased and consumed often
They are inexpensive, purchased often (sometimes daily) and with little thought: groceries and newspapers and take-away foods
Consumers will buy these goods at the first available store which sells them
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
34
SHOPPING GOODSAND SHOPPING SERVICES
These are products and services which cost more money and are purchased less often
These are goods such as TVs, CD players, washing machines, home furniture and services such as car insurance.
Consumers “comparison shop ( مقارنة for these products – they look at ”(متجرdifferent brand names and go to different stores to get the best value for their money.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
35
SPECIALTY GOODSAND SPECIALTY SERVICES
These are goods and services which consumers view as extremely important purchases.
They are products which are purchased rarely and are usually very special to the consumer. They are expensive products and services such as: wedding dresses, gold jewelry, and services like wedding receptions at hotels.
Before shopping for these goods or services, consumers usually know exactly the type of product they want – and will accept no other product. Consumers will spend a great deal of time and a lot of money to get the exact product they want.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
36
CLASSIFYINGINDUSTRIAL PRODUCTS
Industrial products are divided into two types:
Expense items and capital items
These two items are divided by cost and how they will be used
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
37
EXPENSE ITEMS Expense items are materials and services that are
consumed quickly and regularly (within one year) by firms which produce other products or services.
Soft drink manufacturers such as Pepsi buy aluminum cans – the company makes Pepsi but needs to buy cans to hold the drink. The company’s product is not cans – it is Pepsi. The cans are an expense incurred to make and sell the Pepsi.
The expense item is used up in producing the product the company sells – the cans are used up when selling the soft drink Pepsi.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
38
CAPITAL ITEMS Capital items are permanent (دائم) (long-lasting) and
expensive items which will be used by the company for many years.
These capital goods include buildings (offices and factories), fixed equipment (shelving and freezers in a grocery store, baking ovens in a bakery, the equipment which makes the Pepsi drink in the factory) and accessory equipment (busses in the National Transportation Company, computers in NBOB’s office building, aircraft at Gulf Air).
Capital services may include food services for employees and building and equipment maintenance.
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
39
THE PRODUCT MIX
The product mix is the group of products a company makes available for sale – consumer products, industrial products, or both.
The textbook uses the example of the Black & Decker company.
This company makes toasters, kettles, vacuum cleaners, and electric drills – a variety of different products made by the same company.
(P 267 / 4th & P 306 / 5th)
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall
40
PRODUCT LINES
Many companies begin business selling one product only
Over time, they find that the one product does not fill the needs of every consumer – and so they introduce other similar products to meet the needs of different consumers…..
Reference: Ebert & Griffin (2007). "Business Essentials" Pearson,
Prentice Hall