Click to add text

Principles of Marketing Marketing Research links consumer

Ahmad Idrees

Contents

Topics discussed in these slides are:

Marketing Research Basics of Consumer Behaviour

– Buyer Decision Process

– Stimulus-Response Model

Marketing Research

.Definition

The planning, collection, and analysis of data relevant to market decision making

andcommunication of the results of this analysis to management.

Marketing Research

.

Marketing Research links consumer and public to the marketing manager through an exchange of information.

Why to Conduct Marketing Research

It helps in changing the marketing mix to match newly emerging patterns in competitive and consumer

It informs about new opportunities Provides important link to customers Helps reduce risk in decision making Helps managers to understand their customers

wants and needs so they can develop appropriate strategies.

Uses of Marketing Research

Measurement of Market Potential for Future Analysis of current market share Sales Analysis Product Testing Forecasting Study of Business Trends Study of Competitor's Products Study of Consumer's Purchase Intention etc.

Marketing Research Process

Problem Definition and Research Objectives Developing Research Plan Implementation Analysis and Reporting of Findings

Types of Research

PRIMARY ResearchPrimary Research is the process of gathering information directly from

individuals.Normally the person who obtains data is the researcher himself/herself. Otherwise, it can be done by hiring a third party.

It can be accomplished through various methods, including questionnaires, interviews ,telephone interviews and focus groups.

Types of Research

SECONDARY ResearchSecondary research is research that is carried out with already existing data. It

uses materials as books, magazines, journals, newspapers ,government publications among others.

In secondary research the researcher does not need to go in the field since all the information collected has been documented already.

Basics of Consumer Behaviour

Buyer Decision Process

Buyer decision process is the decision making proces undertaken by consumers in regard to a market transaction before, during, and after the purchase of a product or service.

More generally, decision making is the cognitive process of selecting a course of action from multiple alternatives/options.

Common examples include shopping and deciding what to eat.

Buyer Decision ProcessThere are 5 stages which a consumer often goes through when

he/she around their Purchase. These stages also exist because of normal human psychology.

These 5 stages are :

Problem/Need Recognition- This is the first stage in which the consumer recognizes that what is the problem or need and accordingly a consumer identifies the product which would be required by the consumer.

Information Search- In information search, the consumer searches about the product which would satisfy the need which has been recognized by the consumer in the stage previous to this one.

Buyer Decision ProcessEvaluation of Alternatives - In this stage, the consumer evaluates the different

alternatives that consumer finds during information search. The consumer has to evaluate and understand which product would be properly suited for the consumer.

Selection/ Purchase-In this stage the consumer purchases the product that he/she has selected.

Post Purchase Behavior/Evaluation-After the purchase ,the consumer might be satisfied or can go through post purchase dissonance in which the consumer feels that buying the other product would be better.

A company should really take care of it, taking care of post purchase dissonance will spread good words for the product and will also increases the chance of frequent repurchase.

Remember : The Laptop Purchase Exampe we discussed in the class.

Stimulus -Response ModelMarketing and other stimuli: A consumer is confronted with a stimulus in the

environment. This stimulus could be of two kinds;

a) One that is presented by the marketer through the marketing mix or the 4Ps, product, price, place and promotion;

product: attributes, features, appearance, packaging etc.

price: cost, value, esteem (prestige)

place: location and convenience, accessibility

promotion: advertising, sales promotion, personal selling, publicity, direct marketing.

b) The other that is presented by the environment, and could be economic, technological, political and cultural.

Buyer’s black box: The stimulus that is presented to the consumer by the marketer and the environment is then dealt with by the buyer’s black box. The buyer’s black box comprises two sub components, the buyer’s characteristics and the buyer decision process.

The Buyer’s characteristics influence how he or she perceives the stimuli; the decision-making process determines what buying behavior is undertaken.

Buyer’s Response

The buyer’s response outlines all of the decision points that need to be made on the part of the customer. This includes the following:

Product choice Brand choice Dealer choice Purchase timing Purchase amount/frequency

Diagram