Buying Motives.pdf

Buying Motives  Buying Motives Marketers organize needs/wants into buying motives Buying motive: the reason/motivation for seeking out a product What is your motivation for buying products? Motives are/should be essential information to sales personnel Need to know (in short peri...

Buying Motives  Buying Motives Marketers organize needs/wants into buying motives Buying motive: the reason/motivation for seeking out a product What is your motivation for buying products? Motives are/should be essential information to sales personnel Need to know (in short period of time) why someone is purchasing items They can tailor the sales conversation to your motive/ask right question Buying motives are organized in pairs: 1. physical versus psychological 2. rational versus emotional 3. product versus patronage How do you answer the following question: Is there anything I can help you with? There is/are a better question(s) that will elicit better information If sales personnel understood marketing they would ask them…probably earn higher sales commissions Not waste time with browsers; focus on the customers who are rational, emotional, or want social needs fulfilled (high-priced products) Physical vs. Psychological “Are you here to make a physical or psychological purchase?” Motive Basis Examples Physical Physical Food, shelter, safety needs Subway, new condo, ADT security Psychological Social Distinction, prestige, recognition needs Apple cell phone, fancy sports car, Rolex A customer walks into a Honda dealership and states: “I’m looking to have my social needs fulfilled.” Are they in the right place? Salesperson: “You may want to try the Porsche or Mercedes dealerships across the street. We only sell rational cars here, not emotional ones.” Rational vs. Emotional “Can I help you make a rational purchase or are you tied up in your emotions and feelings today?” Motive Basis Examples Rational Logical Features, durability, dependability, price reasoning Buying a Toyota or Honda instead of Lamborghini Emotional Instinct, Popularity, adventure, thrill seeking impulse Product vs Patronage “Are you here for products or patronage? TVs and cell phones are on your left; coffee and magazines are on your right next to the couch.” Motive Basis Examples Product Features of Quality, design, brand, colour product Apple iPhone instead of Nokia Nikes instead of Skechers Patronage Features of Location, service, atmosphere (“I’m just the store Open 24 hrs, free delivery browsing”) Free coffee, water while you shop Green couch (TD Bank) Brand: Apple Features: text, email, surf web, GPS navigation, high-end camera, high-end quality product, sleek design, battery life Just a phone; no comparison between the two products Types of Purchases Fall into 4 categories based on how much time consumer spends on research Do you research products before you go shopping? Do you compare prices, quality, read consumer reports or ask members of your reference group? 1. Impulse purchase Made with little planning or research You didn’t leave home, drive 15 km to buy a pack of gum Found at cash register (magazines, chocolate bars) Types of Purchases 2. Routine Made quickly with no thought You are loyal to the brand, no research required You purchase the same one each week Types of Purchases 3. Limited An item you aren’t familiar with Want best one for your needs Research, consult Consumer Reports Evaluate pros/cons Purchase made with planning Types of Purchases 4. Extensive A major financial outlay Extensive research, planning Save for down payment (car, house), talk to bank, hire or interview a real estate agent New car: test drive several Used car: Mechanic inspection  Discussion If purchases are made on impulse do companies really need to market or promote them to consumers? Yes, because they still need to compete with others in the same industry Want to build your brand, stay top of mind with consumer Maybe you last saw an ad/commercial, made purchase based on that  Google What is a monopoly? Is Google a monopoly? What are the benefits of having this position?