marketing management session 11
DESCRIPTION
TRANSCRIPT
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Analyzing
Consumer Markets
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What Influences Consumer Behavior?
Cultural factors Social factors Personal factors
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Culture
The fundamental determinant of a person’s wants and behaviors
acquired through socializationprocesses with family
and other key institutions.
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Subcultures
Nationalities Religions Racial groups Geographic regions Special interests
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Social Classes
Upper uppersLower uppersUpper middlesMiddle class
Working classUpper lowersLower lowers
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Characteristics of Social Classes
Within a class, people tend to behave alike.
Social class conveys perceptions of inferior or superior position.
Class may be indicated by a cluster of variables (occupation, income, wealth).
Class designation is mobile over time.
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Social Factors
Referencegroups
Social roles
Statuses
Family
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Reference Groups
Membership Primary Secondary Aspirational Dissociative
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Family
Family of OrientationReligionPoliticsEconomics
Family of ProcreationEveryday buying behavior
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Personal Factors
Age Life cycle stage Occupation Wealth
Personality Values Lifestyle Self-concept
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Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness
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Key Psychological Processes
Motivation Perception Learning Memory
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Motivation
Freud’s theory Maslow’s hierarchy of needs Herzberg’s two-factor theory
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Perception
Selective attention Selective retention Selective distortion Subliminal perception
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Consumer Buying Process
Problem recognition Information search Evaluation Purchase decision Postpurchase behavior
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Sources of Information
Personal Commercial Public Experiential
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Organizational Buying
Decision-making process by whichformal organizations establish theneed for purchased products and
services, and identifyevaluate, and choose among
alternative brands and suppliers.
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Characteristics of Business Markets Fewer, larger buyers Close supplier-
customer relationships Professional
purchasing Many buying influences Multiple sales calls
Derived demand Inelastic demand Fluctuating demand Geographically
concentrated buyers Direct purchasing
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Buying Situation
Straight rebuy Modified rebuy New task
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The Buying Center
Initiators Users Influencers Deciders Approvers Buyers Gatekeepers
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Of Concern to Business Marketers
Who are the major decision participants? What decisions do they influence? What is their level of influence? What evaluation criteria do they use?
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Types of Business Customers
Price-oriented Solution-oriented
Gold-standard Strategic-value
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Handling Price-Oriented Customers
Limit quantity purchased Allow no refunds Make no adjustments Provide no services
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Purchasing Orientations
Buying Procurement Supply chain management
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Product-Related Purchasing Processes
Routine products Leverage products Strategic products Bottleneck products
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Methods of e-Procurement
Websites organized using vertical hubs Websites organized using functional hubs Direct extranet links to major suppliers Buying alliances Company buying sites
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Forms of Electronic Marketplaces
Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances
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Assessing Customer Value
Internal engineering assessment
Field value-in-use assessment
Focus-group value assessment
Direct survey questions
Conjoint analysis Benchmarks Compositional
approach Importance ratings
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Order Routine Specification and Inventory Stockless purchase plans Vendor-managed inventory Continuous replenishment
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Desirable Outcomes of a B2B transaction: OTIFNE
On time In full No error
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Establishing Corporate Credibility
Expertise Trustworthiness Likeability
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Factors Affecting Buyer-Supplier Relationships Availability of alternatives Importance of supply Complexity of supply Supply market dynamism
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Categories of Buyer-Seller Relationships
Basic buying and selling
Bare bones Contractual
transaction Customer supply
Cooperative systems Collaborative Mutually adaptive Customer is king
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Opportunism
Some form of cheating orundersupply relative to animplicit or explicit contract.
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Analyzing Business Markets
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CISCO Targets Businesses
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What is Organizational Buying?
Organizational buying refers to the decision-making process by which formal organizations establish the need
for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.
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Top Business Marketing Challenges Expand understanding of customer needs Compete globally as China and India reshape
markets Master analytical tools and improve quantitative
skills Reinstate innovation as an engine of growth Create new organizational models and linkages
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Characteristics of Business Markets Fewer, larger buyers Close supplier-
customer relationships
Professional purchasing
Many buying influences
Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically
concentrated buyers Direct purchasing
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Buying Situation
Straight rebuyStraight rebuy
Modified rebuyModified rebuy
New taskNew task
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Systems Buying and Selling
Turnkey solution desired;
bids solicited
Primecontractors
Second-tiercontractors
System subcomponents
assembled
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The Buying CenterInitiatorsInitiators
UsersUsers
InfluencersInfluencers
DecidersDeciders
ApproversApprovers
BuyersBuyers
GatekeepersGatekeepers
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Of Concern to Business Marketers Who are the major decision participants? What decisions do they influence? What is their level of influence? What evaluation criteria do they use?
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Sales Strategies
Small Sellers
Large Sellers
Key Buying Influencers
MultilevelIn-depthSelling
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Stages in the Buying Process: Buyphases Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
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Forms of Electronic Marketplaces
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Methods of e-Procurement
Websites organized using vertical hubs Websites organized using functional hubs Direct extranet links to major suppliers Buying alliances Company buying sites
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Handling Price-Oriented Customers
Limit quantity purchasedLimit quantity purchased
Allow no refundsAllow no refunds
Make no adjustmentsMake no adjustments
Provide no servicesProvide no services
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Methods for Researching Customer Value
Internal engineering assessment
Field value-in-use assessment
Focus-group value assessment
Direct survey questions
Conjoint analysis Benchmarks Compositional
approach Importance ratings
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Order Routine Specification
Stockless purchase plans
Vendor-managedinventory
Continuous replenishment
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Establishing Corporate Trust and Credibility
Expertise
LikeabilityTrustworthiness
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Factors Affecting Buyer-Supplier Relationships
Availability of alternatives
Supply marketdynamism
Complexity ofsupply
Importance ofsupply
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Categories of Buyer-Seller Relationships
Basic buying and selling
Bare bones Contractual
transaction Customer supply
Cooperative systems Collaborative Mutually adaptive Customer is king
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What is Opportunism?
Opportunism is some form of cheating or undersupply relative to an
implicit or explicit contract.
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Marketing of Farm Output from Rural Areas Contract Farming – Pepsi Procuring from Cooperatives – Amul Use ICT for procurement – ITC