unit 3 MKIS and Buyer behavior.pptx

7/25/2019 unit 3 MKIS and Buyer behavior.pptx

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Marketing Informationsystem and Buyers

BehaviorUnit 3


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Marketing Informationsystem

Meaning and defnition: (MKIS)

It is the mechanism for providing decision

making information and data to the marketing

decision maker. It provides a continuous flow

of information about prices, advertisings,

sales, competition and distribution. It is the

major tool for scanning and monitoring the

external environmental forces.


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According to PhlipKotler:

"A marketing information system consists of

people, equipment, and procedure to gather, sort,analyze, evaluate and distribute needed timely and

accurate information to marketing decision makers."

Key concept: ( Features )

It is made up of people like managers, supervisors,

sales persons etc.

It is equipment based like computer etc.

It is a continuous process

It provides valuable information.


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Importance or relevance ofMKIS

ital for day to operation

!btained information of "ational and international

markets

#atisfying the needs and wants of the customers $ncouraging to non price competition % differentiation,

image, services and promotion &

$nvironmental monitoring and scanning

'arketing planning

'arketing program building

$valuation and control


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Components of MKIS

All organizations irrespective of their size and

nature of operation need information to take correct

and timely decisions. (he source of information

lies in the marketing environment. )omponents ofmarket information system are given below.

Internal record system

'arketing intelligence system *ecision support system

'arketing +esearch


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1. Internal Records system:It is very importance source of information. (he major internal records

used by the 'I# are customer-s orders and complaints, invoices, sales

reports and marketing research reports.$very organization maintains an internal database about current and past

result like as roduct quality/price/packaging/distribution/promotion etc .

. Invoices: (hey are major sources of information. It contains name of

customers, location, products, quantity price including discount, total

sales value etc.. Sales reports: #ales reports are regularly submitted by the field sales

staffs to the company.

. Marketing research reports: revious marketing research reposts can be

a valuable source of information on future problems. (hey are targeted at

solving a particular marketing problem. It generates a variety of data and

information that are stored in the 'I# for future use .

. Other miscellaneous: Internal records !inancial statements udit

reports etc.


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#.Marketing IntelligenceSystem:

(his system provides information about

every day happenings in the marketingenvironment. It is a set of procedures and

sources used by managers to obtain every day

information about pertinent developments inthe marketing environment.

#ources: 'arketing 'anagers / #ales force /

'iddlemen / #pecialists / !utsourcing /'arketing information units/ "ews papers /

'agazines / rivate intelligence agencies etc.


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3.Decision support system (DSS) or Analytical system: !rganization develops marketing decision support system to help their

marketing managers make better decisions. It does not collect information. 0ut

it stores, analysis, the collected information. It is a set of statistical ormathematical tools and decision models. (his system has three components1

$ata %ank1 )omputers are used for data storage. It is the store house for all

the collected information from internal reports, research, intelligence, etc.

Statistical %ank: % 'ethod 0ank & It has methods bank for analyzing data

which range from simple procedures to sophisticated statistical tools likemultiple regression, factor analysis etc.

Model %ank: (hey consists of various models that facilitate decision making

models define the interrelationship between different variables help decision

maker to understand and control marketing problems like game theory,

differential calculus etc. In today-s context the *## function is handled by a computer experts with the

help of a powerful computer and relevant software.


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4. Marketing Research system:

It is a systematic inquiry undertakes to helpresolve specific marketing problems. It should

be systematic, objective, informative, problem

based and decision making. It is a function

which links the consumers, and public to the

marketer through information. (he purpose of

marketing research is to generate information

that helps the business executive the takeappropriate and timely decision.


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It is a systematic and objective search for and analysis of

information relevant to the identification and solution of any

problems in the field of marketing. It is the process of

generating information that helps the business executives totake the timely decision. #cientific methods are used in

marketing research for gathering, analysis of information to

achieve objectives.

reas o! &esearch:'. roduct research ( developing products, and testing research &

#. dvertising research ( +esearch for setting advertising

objectives, copy testing, 'edia search &

. Sales research ( sales analysis, distribution analysis, #alesforce performance, #ales potential analysis, #ales forecasting &

*. Motivation and attitude o! consumers research etc


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+epalese Marketing in!ormation system

The deelopment1 rior to economic liberalization of the 2345s.

The lead organi!ation1 In 2346, #urya "epal began conducting market

research to better understand the needs and problems of the smokers.

"urrent users1 In the late 45s 7orkha 0rewery also conducted several

research on generating profiles of beer consumers. (oday this companyhas been able to capture more than 35 percent of the beer market of

"epal. 'ost of the private bank and hospitals also have effective

information system.

#ro$ing importance o% marketing in%ormation in marketing

agencies.

&pen 'conomy1 #ince 2335s the protected economic regime of "epal

has been gradually replace by an open economy.


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oreign layers: In the 2335s many multinational companieswere established in nepal under joint venture and licensing.

)urrently most of the medium and large manufacturing and

service companies have developed their information systems.

"ompetition* "epalese business firms compete with

multinational companies who have effective and update

information system.

+e$ ,rand %ailures1 'any new brands brought into the

"epalese market have failed to gain consumer-s acceptance.

ine cigarette, #ingha beer, %)7&0lack beer % 7orkha-s & etc.

'-pansion o% Market Area1 "epalese business houses are also

engaged in collecting information about the export markets

through market research and marketing intelligence.


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Buyer Behaviors Analysis ( Consumer ehavior)

%uyer %ehavior:

"oncept1

A buyer is any one who might buy a given product. (hey

are either an individual or an institutional. A buyer is some one

who is potentially willing and able to buy products offered by

the marketer. )onsumers create demand for the products.'arketers must know their customers %8)&.

9uman behavior is a very complex process. 0ehavior is

the responses of the market toward the firm:s offer. It refers to

any actions a consumer takes toward a product or actions aconsumer takes toward a product or brand. (he action may be

negative or positive. 0uyer behavior is a series of activities of

customers related to products.


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0uyer behavior relates to the purchase

behavior of individuals and groups, and

organizations who buy products to meet theirneeds and solve problems.

)onsumer behavior / !rganizational buying

behavior % business org. social institutions, andgovernment &

It is the study o% ho$ indiiduals and groups

make their decisions to use their resources interms o% time money and e%%orts.


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According to hilip /otler ;0uying behavior is the

decision processes and acts of customers involved in

buying and using products.;

0uyer is stimulated by marketing mix as well as $#(.

(hey are influenced by culture, social, personal and

psychological variables. ariables determine a person:s

wants a behavior. "ultural aria,les1 +eligion / #ocial / 7roups /


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"onclusion1 0uyer behavior consists of the

activities that the people engage in when

selecting, purchasing, and using products andservices so as to satisfy needs and desires. It is

the mental emotional and physical actions of

consumers. It is the process to find out the

customers want in a product and then to offer

them that product. =hile studying buyer

behavior we should consider answering the

following six !:s.


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!ccupants1 =hat rofession>

!bjects1 =hat they buy>

!ccasions 1 =hen they buy it> !rganization1 =hich organization>

!bjectives1 =hat purpose> =hy they buy it>

!perations1 9ow they use it >

)onsumer behavior as a process of

Acquisition, )onsumption, and *isposition.


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Importance of Buyer Behavior:

+eed identi!ication: (he study of buying behavior enables marketer to rightly

assess the actual need of the consumer and identify the best way of satisfying

them.

,!!icient use o! resources: 0y understanding buyer behavior organizations

can make efficient use of marketing resources. (he goal of marketing is to

understand, meet and satisfy target customer:s need and wants.

Selection o! market segments: It is an important variable for market

segmentation. 0y understanding buyer behavior organization can effectively

segment the market. roduct positioning: 0uyer behavior helps an organization to study how

buyers perceive different brand of product sold in the market. It describes how

an organization:s product differs from its competitors.

Marketing mi- development: 0y understanding buyers behavior organization

can develop marketing mix. It helps to develop appropriate marketing mixes. &educe uncertainty: (he study of consumer behavior helps to market to

reduce the uncertainty that may affect marketing programmed and enables of

firm to anticipate the effects of its marketing decision.


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Consumer Buying process

Stages o! consumers uying process:

Consumers are the decision maker regarding the purchase ofgoods and services that can provide current and futuresatisfaction Consumers face several !uying decisions every day "rational consumer usually follo#s certain process #hile !uying

products #hich are given !elo#:1. Problems or Need Recognition:

$he !uying process starts #hen the consumer recogni%es a need&eed can !e activated through internal and e'ternal sourcesInternal stimulus or sources such as hunger( thirsts( shelter etc

)'ternal stimulus such as advertisement #indo# display etc$here are di*erent types of pro!lems such as routine pro!lems()mergency pro!lems+sickness and accident etc ,( -lanningpro!lems + !uying car( home( seeking education etc , )volvingpro!lems + neither are e'pected nor demand immediate solution ,


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0. In%ormation Search:

After need recognition consumers search information

about products. It focuses on availability of brands,

product, features, seller:s characteristics, warranties

prices etc. Information search by consumers can be

either passive or Active.

assive Search : It is not related to a problem or needjust consumers are found to go through a variety of

information while watchig television or browsing

through internet or looking through news papers etc.

ctive Search: )onsumers undertake active search

% pre?purchase search & when they have a problems to

solve.


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Internal search1 revious experiences about

product.

$xternal search1 ersonal sources, friends,family, relatives, associates.

'arket sources1 Advertising, sales forces,

middlemen, packaging etc.ublic sources1 (. / +adio / news papers and

internet / consumer interest group/ 7ovt. etc.

$xperiential19andling/examining/testing the product by

consumer.


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3. 'aluation o% alternaties:

!nce the information of alternative products is gathered they

are properly evaluated to find out the best product that can

satisfy the consumer to a great extent. (he evaluation criteriamay be product attributes, brand utility price etc.

. urchase decision*

After evaluation alternatives they make the purchase decision.

urchase decision is influenced by payment method,warranties, delivery after sales services and installation.

Social in!luences: !amily !riends etc.

Situational !actors: Income e-pected dealer terms

roduct availaility etc.urchase intension: Social in!luences and situational

in!luences


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/. ost purchase evaluation:

(he consumer continues to make evaluation after the

purchase has been made. #atisfied consumerscontinue to purchase and develop brand loyalty. 0ut

dissatisfied customers stop purchasing the product.

2. roduct disposal:

*isposal of products by consumers after use is and

important post purchase decision. (hey can

permanent dispose and temporary disposal.

ermanent1 sell it / exchange it or trade it / give itaway / throw it way.

(emporarily1 +ent it / loan it / free change.


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Factors a!!ecting consumers uying ehavior

process: (Determinants)

"# ,conomic !actors1 @evel of income % )onsumer-s personal or

family income&

#aving and @iquid assets *ebt, credit availability

Attitude toward spending

$conomic conditions


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. ersonal Factors:

Age1 8ong person is fashion conscious in the

choice of the products while middle aged person isstatus conscious. 8oung is more risk taker and

visit departmental store than old.

#ender1


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. sychological Factors:

Motiation1 It is a reasons for behavior so it

reflects why an individual does something. erception1 A consumer buys clothes not only

to hide nakedness or keep warm but also to

enhance the self image, status and prestige. earning

Attitude4 ,elie% % attitude will be changed

through promotional activities etc.& ersonality


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*. Socio5cultural %actors

Reference groups influences

Family influences , family life cycle influence

Roles and status

Social class ( level of income, Psychological)

Culture and su culture

family life cycle influence ( different ages,

married , unmarried, you couple, older couple

etc.

!o"er income, middle, and high income


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6usiness or &rgani!ational 6uying ,ehaior

Concepts:

Actually it refers to the buying behavior oforganizations so they buy products of resell, business

use, or to make other products. It consists businesshouses, industries, retailers, government and non

government organization.

All formal organization manufacturing, business

firms, intermediaries, government, educational and

social institutions purchase goods and services and

other ideas for their operations


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Features o! Organi0ational uying ehavior


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&rgani!ational ,uying process1

ro,lems recognition1 It is start from diminishing inventory

levels of raw materials, parts, spares and supplies

reparing product speci%ication1 *etails specifications are

prepared by a technical committee of an organization.

Supplier search1 use of news papers, internet etc

roposal solicitation1 (he purchasing manager solicitsproposals from potential suppliers or the product or services

regarding quality, price etc and may be applied formal

bidding, quotation, contracting etc

Supplier selection and purchase* (he purchase committeecarefully evaluates the proposals submitted by potential

suppliers in terms of price, delivery capability, quality and

other technical capabilities.


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Factors determining organi0ational uying ehavior

. ,nvironmental !actors: ( ,S1 ) 'conomic %actors1 (he general economic condition of

a country affects the level of demand, consumption,

investment and saving. (herefore any change in the

economic condition of a country affecting consumers

demand for organizational products.

Technological %actors1 (echnological changes in the

production process directly influences organizationalbuying decisions. (he use of internet and e?commerce

has revolutionized the supplier search and order

process.


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olitical4legal %actors1 olitical stability enhance

investment climate and also increase the level of

demand for products and services. )hange in thegovernment also influences the organizational

markets. (he organizational buying is also

influenced by the law and other regulatory

provisions imposed by the government.

Social responsi,ility %actors1 ollution

consciousness brings new requirement of

production, transportation, and packagingtechnology


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B# $rgani%ational !actors&

Buying b!ectives: different organization has

different buying objectives. 0usiness firms focusquality and government organization focus on lowest

bidders for purchase.

6uying olicies1 !rganizing buying policies favoring

reciprocity principle will narrow down the range ofsuppliers.

rocedures1 0uying procedures in the organizational

market various across organizations. (he government

market requires sealed bids and tender for every largepurchse.

Structures


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C# Interpersonal !actors:

Authority1 In most of the public sector buying situation

in "epal the purchase committees only recommendswhile the board of directors or )$! has the final decisive

power.

Interests: #ince the purchase committee has several

individuals from the key departments they might havetheir own interests influencing the organizational buying.

Status1 (he buying group may be represented by

personnel working at different levels of organizational

hierarchy. (he status of the staff may also play key role. ersuasieness power of individuals to influence the

organizational buying varies across individuals.


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$. Individual !actors:

Age1 8oung buyers tend to favor building relationship with new

suppliers. As people grow older they tend to maintain relationship

with established suppliers. Income1 In most of the government buying the technical group

and decision makers receives financial incentives from suppliers.

'ducation

7o, position1 In "epal the top executive has the final authority inmost of the organizational buying decisions.

ersonality1 Individual who consider themselves as tough are

expected to engage in hard bargaining while those with flexibleB

personality are likely to be soft on the purchases deal.

Risk taking1 @ow risk takers tend to favor doing business with

established suppliers while high risk takers constantly search for

new sources of supply.


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$. 2ross3 cultural Factors1

rance1 nowledge of


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Important 4uestions

2. *efine consumer behavior. *iscuss some of

the key factors that affects the buyer-s

behavior.

6. )ompare and contrast between consumer and

business markets.

C. *escribe the major component of marketing

information system.

unit 3 MKIS and Buyer behavior.pptx

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