marketing environment, and consumer behaviour.ppt
TRANSCRIPT
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Scanning the Marketing Scanning the Marketing EnvironmentEnvironmentbyby
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KOTLER ON MARKETING
Today you have to run faster to stay in place.
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MICRO ENVIRONMENT FORCES
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The CompanySuppliersMarketing
IntermediariesCustomersCompetitorsPublics
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MACRO ENVIRONMENT FORCESDemographic
EnvironmentEconomic EnvironmentSocio Cultural
EnvironmentNatural EnvironmentTechnological
EnvironmentPolitical Environment
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Analyzing Consumer MarketsAnalyzing Consumer Marketsby by
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KOTLER ON MARKETING
The most important thing is to forecast where customers are moving, and be in front of them.
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THE BUYING DECISION PROCESS
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Problem Recognition May be triggered
internally or externally
Information SearchHeightened attention
(simply becoming more receptive)
Active information search (asking people)
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Evaluation of AlternativesIn evaluation, the consumer
sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this needCameras: Picture sharpness,
camera speed, size, priceHotel: Location, cleanliness,
atmosphere, pricePurchase Decision
Intervening factorsAttitude of othersConsumer reportsUnanticipated situational factors
THE BUYING DECISION PROCESS
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Post Purchase Use and Disposal Monitoring how buyers use and
dispose of the product can help to increase the frequency of purchase by Tying the act of replacing the
product to a certain holiday To provide better information as
to either When the product was first used
or would need to be replaced The current level of
performance
THE BUYING DECISION PROCESS
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High InvolvementHigh Involvement Low InvolvementLow InvolvementSignificant Differences Significant Differences between Brandsbetween Brands
Complex buying Complex buying behaviorbehavior
Variety-seeking buying Variety-seeking buying behaviorbehavior
Few Differences between Few Differences between BrandsBrands
Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior
Habitual buying Habitual buying behaviorbehavior
TYPES OF BUYING DECISION BEHAVIOUR
Buying behavior differs greatly for a tube of tooth paste, a tennis racket, financial services and a new car.
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High InvolvementHigh Involvement Low InvolvementLow Involvement
Significant Differences Significant Differences between Brandsbetween Brands
Complex buying Complex buying behaviorbehavior
Variety-seeking buying Variety-seeking buying behaviorbehavior
Few Differences between Few Differences between BrandsBrands
Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior
Habitual buying Habitual buying behaviorbehavior
TYPES OF BUYING DECISION BEHAVIOUR
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Consumers undertake complex buying behaviour when they are highly involved in a purchase and perceive significant differences among brands
Consumers may be highly involved when the product is expensive, risky, purchased infrequently and highly self expressive
Typically , the consumer has much to learn about the category and will pass through a learning process
Example : Car, Computer Implication: Should help buyers
learn about product class attributes. They may motivate sales people to influence the final brand choice.
COMPLEX BUYING BEHAVIOUR
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High InvolvementHigh Involvement Low InvolvementLow Involvement
Significant Differences Significant Differences between Brandsbetween Brands
Complex buying Complex buying behaviorbehavior
Variety-seeking buying Variety-seeking buying behaviorbehavior
Few Differences between Few Differences between BrandsBrands
Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior
Habitual buying Habitual buying behaviorbehavior
TYPES OF BUYING DECISION BEHAVIOUR
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DISSONANCE – REDUCING BUYING BEHAVIOR
• Consumers undertake dissonance reducing behaviour when they are highly involved in a purchase and perceive few differences among brands
• Consumers may be highly involved when the product is expensive, risky, purchased infrequently and highly self expressive
• Buyers may consider most brands (in a category) in a given price range to be the same. They may respond primarily to a good price or convenience.
• After the purchase, consumers might experience post purchase dissonance
• Example : carpet, medicine• Implication: Price / convenience element,
and counter dissonance .
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High InvolvementHigh Involvement Low InvolvementLow Involvement
Significant Differences Significant Differences between Brandsbetween Brands
Complex buying Complex buying behaviorbehavior
Variety-seeking buying Variety-seeking buying behaviorbehavior
Few Differences between Few Differences between BrandsBrands
Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior
Habitual buying Habitual buying behaviorbehavior
TYPES OF BUYING DECISION BEHAVIOUR
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HABITUAL BUYING BEHAVIOUR• Consumers undertake habitual buying
behaviour when they are not much involved in a purchase and perceive few differences among brands
• Consumers may be not be involved when the product is inexpensive, less risky, purchased frequently and so on.
• As buyers have little involvement, they simply go to the store and reach for a brand. If they keep on buying the same brand, its out of habit rather than strong brand loyalty.
• Consumer do not search extensively and passively receive information. Ad repetition creates brand familiarity rather than conviction.
• Example : salt, pulses, sugar, bread3-16
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HABITUAL BUYING BEHAVIOUR• Implication:
– Because of low involvement and few differences, marketers use price and sales promotion to stimulate product trial
– In advertising, ad copy should stress only few key points
– Visual symbols and imagery are more important as they can be remembered easily
– Television is more effective than print media because it is a low involvement medium suitable for passive learning
– Can also convert LOW involvement product in to one of HIGHER (or medium) Involvement.
• By linking the product to some involving issue (cavity)
• By linking to some personal situation (vitamins, calcium)
• Strong advertising to trigger strong emotions related to personal values
• Add important feature 3-17
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High InvolvementHigh Involvement Low InvolvementLow Involvement
Significant Differences Significant Differences between Brandsbetween Brands
Complex buying Complex buying behaviorbehavior
Variety-seeking Variety-seeking buying behaviorbuying behavior
Few Differences between Few Differences between BrandsBrands
Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior
Habitual buying Habitual buying behaviorbehavior
TYPES OF BUYING DECISION BEHAVIOUR
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VARIETY-SEEKING BUYING BEHAVIOUR
• Consumers undertake variety seeking buying behaviour when they are not much involved in a purchase and perceive high differences among brands
• Consumers may be not be involved when the product is inexpensive, less risky, purchased frequently and so on.
• Consumers often do a lot of brand switching. • Brand switching occurs for the sake of variety
rather than dissatisfaction. • Example : cookies, ice cream, candies,
restaurants• Implications:
– Market leader : Will try to encourage habitual buying bahaviour by dominating shelf space, various versions, avoiding out stock conditions, frequent reminder advertising.
– Market challenger: Lower prices, deals, coupons, free samples, advertising. 3-19
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VIDEO SESSION
Consumer Psychology in a recession
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QUIZ – NEXT SESSION
MCQs
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