Principles Of Marketing PDF

Principles Of Marketing Thursday, September 5, 2024 8:06 AM Chapter 5 Learning objectives 5.1 Decision making process overview Consumer buying behaviour - The process, thinking, factors, and actions associated with purchase decisions Consumer VS Buyer/Shopper - Consumers are those who con...

Principles Of Marketing Thursday, September 5, 2024 8:06 AM Chapter 5 Learning objectives 5.1 Decision making process overview Consumer buying behaviour - The process, thinking, factors, and actions associated with purchase decisions Consumer VS Buyer/Shopper - Consumers are those who consume the products whereas buyer./shopper are the on who are directly involved in the exchange Decision process 1. Need identified 2. Search for options 3. Evaluate options 4. Make decisions 5. Post decision analysis Identifying the need - Need is a sense of dissatisfaction or the feeling that something is missing - The feeling of satisfaction changes quickly like when your hungry - Needs can be both functional and psychological Evaluate the options - Decision making options can be classified in 3 ways ○ Decision set ○ Evoked set § Even those we are aware of we don’t necessarily make real options ○ Universal set § We weren't aware of all options Evaluating alternatives - Some products are difficult to evaluate in online contexts (makeup genius- "virtual makeover") - Heuristics: in order to simplify the decision- making process, shortcuts called heurist employed by consumers - Marketers can use these to make their product an easier choice nes tics are Evaluating alternatives - Some products are difficult to evaluate in online contexts (makeup genius- "virtual makeover") - Heuristics: in order to simplify the decision- making process, shortcuts called heurist employed by consumers - Marketers can use these to make their product an easier choice Choosing an option - At a certain point, action must be taken based on the previous steps - Goal of the process is to actually make a decision Evaluate your decision - After our decision we evaluate whether or not it was the right one - This not only impacts the satisfaction of the need but it can call into doubt or reaffirm decision making ability in general 5.2 different types of decisions Types of decisions - Extended - Limited - Habitual Extended problem solving - Initiated by a motive that is central to self concept - Consumer feels that eventual decision carries a fair degree of risk - Example: selecting the right college - High involvement Extensive/ High level involvement - Personal, social, and economic significance - High level of involvement ○ Expensive ○ Image ○ Bought frequently (eg car purchase) Limited problem solving - Not as motivated to search for information or to evaluate rigorously - Simple decision rules to choose (eg selecting the right hoodie) Habitual decision making - Choices made with little to no conscious effort (eg selecting the right toothpaste) ○ Many purchase decisions are so routine we may not realize we've made them - Consumers must be convinced to "unfreeze" their former habit and replace it with a one (eg crest expanding the category to oral care) - If I am buying the same brand repeatedly, does this mean it is just a habit or is it bran loyalty? ○ This depends. For example when you are buying lotion, if out of habit you pick aveeno and it is out of stock are you buying a different brand or are you going t tics are m our a new nd to  - Consumers must be convinced to "unfreeze" their former habit and replace it with a one (eg crest expanding the category to oral care) - If I am buying the same brand repeatedly, does this mean it is just a habit or is it bran loyalty? ○ This depends. For example when you are buying lotion, if out of habit you pick aveeno and it is out of stock are you buying a different brand or are you going t another store to buy the brand you like? 5.3 situational factors that drive decision making Situational Influence - Purchase task: gift or for self - Social surroundings: other who may be present - Physical surroundings - Temporal effects: time of day or amount of time - Antecedent states: mood ○ Eg: "at this price, I am buying five. Four as gifts and one for me Situational factors - Temporal state ○ Temporal referring to time this factor is based on the time of day and or your mindset when shopping - Purchase state ○ Comfortable VS confused? Not all shopping experiences are the same - Shopping situation ○ The nature of a retail space can have an impact on your decision making proces - Antecedent state ○ Before we begin the decision making process, what conditions are we in? - Social factors ○ factors such as if we are in a group plays a role in your decision making process 5.4 internal and external factors Internal factors - Personality ○ Defining characteristics, enduring traits - Motivation ○ What inspires us to act - Values ○ What we feel has worth in the world - Beliefs ○ What we think is true - Lifestyle ○ Approach to how you spend your life - Perception a new nd to ss s  - Beliefs ○ What we think is true - Lifestyle ○ Approach to how you spend your life - Perception ○ How we interpret our sensory inputs - Attitude ○ A learned predisposition § Cognitive § Affective § Behavioural Personal influence - Word of mouth - Viral marketing ( tik tok) Rational perspective - Are our purchases rational? Why do people buy the newest iphone? - Are you buying roses on valentines day that are marked higher or after valentines da when they are discounted? Emotional perspective Purchase momentum - Consumers buying beyond needs (buying more toilet paper than you need) External factors - Culture - Reference groups and opinion leaders - Life stage Chapter 6 Learning Objectives 6.1 Components of the business buying market 6.2 business buying decisions differs from the consumer buying decision 6.3 key components of marketing communications in the business market Components of the business buying market - Business to consumer (B2C)- marketing that involves organizations targeting individu ay uals 6.2 business buying decisions differs from the consumer buying decision 6.3 key components of marketing communications in the business market Components of the business buying market - Business to consumer (B2C)- marketing that involves organizations targeting individu with their marketing efforts - Consumer to consumer (C2C)- marketing that involves individual consumers interacti with one another as vendors and buyers - Business to business (B2B)- marketing products and services to large institutions and organizations rather than individual consumers and households Characteristics of business products - Size of buy - Frequency of buy - After sales service - Timelines - Vendor restrictions 1. Exclusivity 2. Confidentiality 3. Ethical restrictions 4. Reciprocity Key players In the business decision making process - User/consumer - Initiator - Buyers - Influencers - Gatekeepers/procurement - Decider/approver - Other divisions/locations - Additional interested parties ○ Shareholders ○ Activist groups ○ Industry bodies Business buying decision VS Consumer Buying - Identify the characteristics of need ○ Derived demand demand for most business buying is driven not by what the organization itself consumes but what the end of consumers consume - Identify the characteristics of search ○ Internal search: tapping into the global knowledge and existing supply vendors other divisions or geographic offices ○ External search: many of the same characteristics of a consumer search, but ce criteria may guide the external search, including recommendations from existin uals ing d of ertain ng  organization itself consumes but what the end of consumers consume - Identify the characteristics of search ○ Internal search: tapping into the global knowledge and existing supply vendors other divisions or geographic offices ○ External search: many of the same characteristics of a consumer search, but ce criteria may guide the external search, including recommendations from existin suppliers, guidance from consultants, and available industry sources - Identify the components of decision making ○ Ultimately, a decisions has to be made, but there are some unique dynamics to business buying process: 1. Responsibility 2. Authority 3. Accountability 4. Alignment/ verification - Assess the post decision analysis ○ The analysis is more complex and important that in the consumer process - Components of b2b and consumer marketing communications that are different 1. Trade shows 2. Trade journals 3. Sales calls 4. Cold calls/ emails (prospecting) 5. Industry events  of ertain ng o the