Analysing Consumer And Business Markets

ANALYSING CONSUMER AND BUSINESS MARKETS  Overview MARKET CONSUMER BUSINESS 1. Definition of consumer 1. Definition of business market market 2. Types of consumers...

ANALYSING CONSUMER AND BUSINESS MARKETS  Overview MARKET CONSUMER BUSINESS 1. Definition of consumer 1. Definition of business market market 2. Types of consumers 2. Types of business 3. Factors influences customers consumer behaviour 3. Characteristics of buyer 4. Model of consumer 4. Types of buyingSystem behaviour of Buying & Selling 5. Buying decision process 5. The buying center 6. Types of buying 6. Buying decision process These topics are very important because they will prepare you with extensive knowledge on how consumers buy your company’s products as well as how you could make decision on buying other products for the company’s productions.  What is consumer market? A consumer market is made up of individuals and households A consumer market buys goods and services for personal consumption The buyers in the consumers market are end consumers  How many types of consumers in consumer market? 1. Demographics (male, female, young, old, etc) 2. Geographical areas (urban, sub-urban) 3. Cultures (Muslim, Buddhist, Hindu, etc) 4. Locations (internal, external) 5. Life cycle (single, married, divorced) 6. Needs hierarchies (Maslow) 7. Satisfaction (satisfied, dissatisfied, etc) 8. Decision making (routine, limited, extensive) What guides consumer to buy in a consumer market?  What factors influence consumer behaviour in the consumer market? 1. Cultural Factors (nationalities, religions, racial groups, social class and geographic regions) 2. Social Factors (reference Groups, family, roles and status) 3. Personal Factors (age and stage in the life cycle, occupation and economic circumstances, personality and self-concept, lifestyles and values) 4. Psychological ( Beliefs and attitudes, Perception) How Consumer Make Buying Decisions  What Hinder Consumer From Buying Our Products in the Consumer Market? What Hinder Consumers from Buying Our Products in the Consumer Market?  What is business market? A business market is made up of companies, organizations, sectors and industries A business market buys goods and services to be used to make other goods or to help with the production process The buyers in the consumers market are business and organization customers What are the types of business customers? Profit oriented Non-Profit oriented Private Government Industries  What are the characteristics of Business Market 1. Fewer producers, larger buyers 2. Close supplier-customer relationship 3. Professional purchasing (well trained purchasing staff) 4. Multiple buying influences (many involvement) 5. Multiple sales calls (longer decision, time consuming) 6. Derived demand (rely on consumer dd) 7. Inelastic demand (not sensitive towards price changes) 8. Fluctuating demand (changed as consumer dd changed) 9. Geographically concentrated buyers (reduce selling cost) 10.Direct purchasing (no middleman for complex goods)  How business customer buy? Straight re-buy – is when the purchasing department re-orders on a routine basis and chooses from suppliers on an approved lists. Modified re-buy – is when the buyer wants to modify product specifications, prices, delivery requirements, or other items. New Task – is when the purchaser buys a product or service for the first time.  What is System of Buying & Selling? Prime contractors – The government would seek bids from prime contractors, who assembled the package or system. The prime contractor would thus provide a turnkey solution, so-called because the buyer simply had to turn one key to get the job done. Second-tier contractors – The contractor who was awarded the contract would be responsible for bidding out and assembling the system’s subcomponents from second-tier contractors. Systems contracting – A single supplier provides the buyer with his or her entire requirements of maintenance, repair, and operating (MRO) supplies.  What is Buying Center? Who are they? All those individuals and groups who participate in the purchasing decision-making process They share some common goals and share the risks arising from the decisions 1. Initiators. 2. Influencers. 3. Gatekeepers. 4. Deciders. 5. Approvers. 6. Buyers. 7. Users. What are the roles of people in The Buying Center? How Business Customer Make Buying Decision? Business buying decision process Business buying decision process Business buying decision process How many types of Buyer – Seller Relationship in business market? Buyer-Seller Relationship Buyer-Seller Relationship  We should have a broad knowledge on how consumers and business responds towards our marketing programs. This is very crucial to help marketers in managing the marketing efforts of the organization Knowledge about who is consumer, what they buy, who buy, how they buy and what makes they buy is very important to marketers in understanding the consumer behavior as well as the behavior of the business customers.