Understanding Marketing Processes and Consumer Behaviorhttp://www.slideshare.net/Subjectmaterial

Chapter 11

2

QUIZ

1. WHAT IS THE PRODUCT OF YOUR COMPANY

2. HOW WOULD YOU MAKE PEOPLE BUY/USE YOUR PRODUCT

3. WHAT METHOD OF FOLLOWING WILL YOU USE AND WHY

DISTRIBUTION ADVERTISING/ PROMOTION PRICING

Sr.Chapter Chapter HeadingNo.No.

1. 3 Understanding the Global context of business (031012)2. 4 Conducting Business Ethically and Responsibly (250212)3. 6 Organizing the Business Enterprise (030312)4. 7 Understanding Entrepreneurship and Small Business

(100312)5. 8 Managing Human Resources (240312)6. 9 Understanding Employee Motivating, Satisfying &

Leadership (310312)

7. 11 Understanding Marketing Processes and Consumer Behavior (140412)

8. 16 Managing Quality and Productivity9. 17 Managing Information Systems and Communication

Technology10. 19 Understanding Money and Banking11. 20 Intermediate Term and Lease Financing

Course Outline

FINAL PROJECT

GENERATE REVENUE Submit

GROUP NAMES Business case with timelines

Discuss details registrations

Marks Distribution

50 Terminal Examination20 Mid Term Examination15 Quizzes15 Final Assignment

1. WHAT IS MARKETING

2. TARGET MARKETING AND MARKETING SEGMENTATION

3. MARKETING RESEARCH

4. UNDERSTANDING CONSUMBER BEHAVIOR

5. ORGANIZATIONAL MARKETING AND BUYING BEHAVIOR

6. THE INTERNATIONAL MARKETING MIX

7. SMALL BUSINESS AND THE MARKETING MIX

TOC

WHAT IS MARKETING

The process of planning and executing

the conception, pricing, promotion, and distribution

of ideas, goods and services

to create exchanges that satisfy individual and organizational objectives

Definitions Consumer Goods:

Products purchased by consumers for personal use Industrial Goods

Products purchased by companies to produce other products

Services: Intangible products, such as time, expertise, or an

activity, that can be purchased Marketing Plan

Detailed and focused strategy for gearing marketing efforts to meet consumer needs and wants

The Marketing Environment

Customer

Technology

GlobalSocial

CompetitiveEconomic

Elements in the Marketing MixProduct

Marketing

Program

Place

Promotion

Buy at Computer

s ‘R Us

Price

The Marketing Mix Marketing Mix:

The combination of product, pricing, promotion and distribution strategies used to market products

Product: Good, service or idea that is marketed to fill

consumer needs and wants Product differentiation:

Creation of a product or product image that differs enough from existing products to attract customers

Pricing Strategy

Choosing the right price to attract consumers and meet the firm’s profit goals

Price = total value consumers willing to give May be low price strategy (salt) or high price

strategy (mink coat) Price must consider all costs

operation and administration marketing research advertising

Promotion Strategy

Choosing the right method of communicating information about the product

advertising personal selling sales promotions public relations

Place (Distribution Strategy)

The part of the marketing mix concerned with getting the product from producer to buyer Choice of sales outlets Physical transportation Channels of distribution

TARGET MARKET AND MARKET SEGMENTATION

Target Market: A group of people having similar

needs and wants and that can be expected to show interests in the same products

Market Segmentation Process of dividing a market into

categories of customer types and selecting specific segments to pursue

Identifying market segments

In identifying market segments, researchers must look at several different influences on consumer behavior Geographic Variables Demographic Variables Pshycho-graphic Variables

Life styles, opinions, interests and attitudes Product-use Variables;

party wear, casual, athletic shoes

17

MARKETING RESEARCH

The study of consumer needs and wants and the ways in which sellers can best meet them

18

The Research Process

Study theCurrent

Situation

Select a ResearchMethod

Focus Group

Survey

Observation

Experimentation

Collect Data

Use SecondaryData

Use Primary

Data

Analyze Data

Prepare Reports

Make Recommendations

The Research Process

RESEARCH METHODS1. Observation

Market research technique that involves simply watching and recording consumer behavior

2. Surveys Market research technique using a questionnaire that is

either mailed to individuals or used as the basis of interviews

3. Focus Groups Market research technique in which a group of people is

gathered, presented with an issue, and asked to discuss it in depth

4. Experimentation Market research technique that attempts to compare

the responses of the some of similar people under different circumstances

Marketing Factors

Product

Price

Place

Promotion

Purchase Process

Personal & Environment

alFactors

Psychological

Cultural

Social

Personal

ProblemRecognition

InformationSeeking

Evaluation ofAlternatives

PurchaseDecision

Post-EvaluationPurchase

UNDERSTANDING CONSUMER BEHAVIOR

UNDERSTANDING CONSUMER BEHAVIOR

Consumer behavior: Various facets of the decision making process by

which customers come to purchase and consumer products

Brand loyalty: Process of regular consumer purchasing based on

satisfaction with a product Purchase decision:

Rational motives: Reasons of purchasing a product that are based on a logical evaluation of product attributes

Emotional motives: Reasons of purchasing a product that are based on non objective factors

22

ORGANZATIONAL MARKETING AND BUYING BEHAVIOR

Organizational Markets Industrial markets Reseller markets Institutional markets

Organizational buying behavior Specialized buyers

Trained in the buyer seller relationships Company specialists Experts about the products

Differences in decision making Developing product specifications Evaluating alternatives Making post purchase evaluations

ORGANZATIONAL MARKETING AND BUYING BEHAVIOR

International Marketing Mix

Products may require substantial change before they can be marketed to different countries

Pricing requires consideration of product manufacturing costs, transportation and delivery

Promotion must accommodate cultural differences and social traditions

Distribution may involve cooperation with other international firms and adherence to foreign packaging and labelling legislation

Small Business Marketing Mix

Care must be taken to: offer products to markets substantial

enough to support the organization do a complete analysis of costs prior to

setting prices develop a comprehensive promotional

program using more than personal selling

lower cost options: publicity, associated events

choose a location that will attract and retain customers