marketing environment, and consumer behaviour.ppt

Scanning the Marketing Scanning the Marketing EnvironmentEnvironmentbyby

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

MACRO ENVIRONMENT FORCESDemographic

EnvironmentEconomic EnvironmentSocio Cultural

EnvironmentNatural EnvironmentTechnological

EnvironmentPolitical Environment

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Analyzing Consumer MarketsAnalyzing Consumer Marketsby by

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)

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


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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


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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







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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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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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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

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




Variety-seeking Variety-seeking buying behaviorbuying behavior





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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

VIDEO SESSION

Consumer Psychology in a recession

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QUIZ – NEXT SESSION

MCQs

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marketing environment, and consumer behaviour.ppt

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