module 3 ppt

8/6/2019 Module 3 PPT.

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MS. ARCHANA VIJAY

Marketing Management Module 3


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TOP ICS TO BE C O VERED

B uyer B ehavior B uying motives Meaning, Factors influencing buying behavior B uying habits Diffusion of innovations Stages in buying decision process Organizational buying versus House hold buying Consumerism, Consumer Protection Act, 1986 An introduction Segmentation : Meaning, Need, Factors influencing Segmentation Market Aggregation, B asis for segmentation, Segmentation of

Consumer/ Industrial markets Targeting : B asis for identifying target customers, Target Market

Strategies Positioning : Meaning, Product differentiation strategies, Errors in

positioning


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BUYER BEHAVI O R

Consumer behavior is the study of how individuals, groups and organizationsselect, buy, use and dispose of goods, services, ideas or experiences tosatisfy their needs and wants.

Eg. In order to overcome the problem of low involvement of the end customersin the purchase process of steel, Tata Steel launched an organized retail

store steel junction in Kolkata.Houses a wide variety of products madefrom steel and has for distinct departments.Home construction and solutiondepartment bathroom and door fittings, hardware items, lightings, locks,garden tools etc. A furniture department includes indigenous and importedsteel furniture and kitchenware and lifestyle departments that have itemslike cutlery, jewelry and decorative pieces.Ambience of the shop encouragesfamilies and women to step in. Presence of a cafeteria and books, journals

and magazines on various grades of steel and their usage.Success of this unique initiative reflects the companys ability to anticipate andrespond to the changing preferences and lifestyles of customers.


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F AC TO RS A FF EC T ING BUYER

BEHAVI O RCultural Factors Culture, subculture and social class are particularly

important influences on consumer buying behavior. Culture Fundamental determinant of a persons wants and

behavior. The growing child acquires a set of values, perceptions,preferences and behaviors through his/her family and other keyinstitutions.A child growing up in a traditional middle class family inIndia is exposed to the following values respect and care for elders,honesty and integrity, hard work, achievement and success,andsacrifice.

Subcultures Subcultures include nationalities, religions, racialgroups and geographical regions.Multicultural marketing reveals that different ethnic anddemographic niches did not always respond favorably to mass market advertising.


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Social class Relatively homogeneous divisions in a society, which are hierarchicallyordered and whose members share similar values, interests andbehavior.Socioeconomic classification uses a combination of the education andoccupation of the chief wage earner of the household to classify buyers into 8categories A1, A2, B 1, B 2, C, D, E1, E2, with A1 signifying the highest purchasepotential and E2 signifying the lowest. Social classes have several characteristics

o Those within each class tend to behave more alike than persons from two differentsocial classes. Social class differ in dress, speech patterns, recreational preferencesand media preferences. Upper class preferring magazines and books and lowerclass preferring television.In TV, upper class tend to prefer dramas and news andlower class prefer soap operas and sports program.

o Persons are perceived as occupying superior and inferior positions according to

social class.

o Indicated by a cluster of variables occupation, income, wealth, education andvalue orientation.

o Individuals can move up or down the social class ladder during their lifetimes.


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Social Factors Reference groups, family and social role and statuses. Reference groups All the groups that have a direct or indirect influence on their

attitudes or behavior.Groups having a direct influence are called membershipgroups.

o Primary Groups Person interacts fairly continuously and informally, such as family,friends, neighbors and coworkers.

o Secondary Groups More formal and require less continuous interaction, such asreligious, professional and trade union groups.

o Aspirational groups those a person hopes to join.o Dissociative groups those whose values or behavior an individual rejects.

Reference groups influence members in at least three ways

Expose an individual to new behaviors and lifestyles.Influence attitudes and self concept.Create pressures for conformity that may affect product and brand choices.

An opinion leader is the person who offers informal advice or information about aspecific product or product category, such as which of several brands is best.


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Family Most important consumer buying organization in society,and family members constitute the most influential primary referencegroup. Two categories of families

o Family of orientation consists of parents and siblings.From parentsa person acquires an orientation toward religion, politics, andeconomics, and a sense of personal ambition, self worth and love.

o Family of procreation Ones spouse and children.More directinfluence on everyday buying behavior.

Roles and Status A role consists of the activities a person is

expected to perform. Each role carries a status. People chooseproducts that reflect and communicate their role and actual ordesired status in society.


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Personal Factors Age and Stage in the life cycle Taste in food, clothes, furniture and recreation is

often age-related.Consumption is shaped by the family life cycle.Trends like delayedmarriages, children migrating to distant cities or abroad for work leaving parentsbehind,tendency of working couple to acquire assets such as a house or anautomobile in the early stages of career, has resulted in different opportunities for

marketers at different stages in the consumer life cycle. Marketers should alsoconsider life events like marriage, childbirth, illness, relocation, divorce, careerchange, widowhood as giving rise to new needs.

Occupation and economic circumstances A blue collar worker will buy workclothes, work shoes and lunch boxes. A company president will buy dress suits, airtravel and country club memberships.Product choice is greatly affected by economic

circumstances : spendable income, savings and assets, debts, borrowing power andattitudes toward spending and saving. Luxury goods makers such as Gucci, Pradacan be vulnerable to an economic downturn. If economic indicators point to arecession, marketers should reprice their products or increase the emphasis ondiscount brands.


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Personality and Self-concept Personality is a set of distinguishing humanpsychological traits that lead to relatively consistent and enduring responses toenvironmental stimuli. B rands also have personalities and consumers are likely tochoose brands whose personalities match their own. B rand personality is the specificmix of human traits that we can attribute to a particular brand. B rand personalitieshas the following traits

Sincerity (down to earth, honest , wholesome and cheerful)Excitement (daring, spirited, imaginative and up-to-date)Competence (reliable, intelligent and successful)Sophistication (upper-class and charming)Ruggedness (outdoorsy and tough)

Levis ruggedness, MTV excitement, CNN competence.

Consumers often choose and use brands that have a brand personality consistent withtheir own actual self concept(how we view ourselves), or customers ideal self-concept( how we would like to view ourselves)or on others self concept (how wethink others see us). More pronounced for publicly consumed products than forprivately consumed products.


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Lifestyle and values A lifestyle is a persons pattern of living in the worldas expressed in activities , interests and opinions.LOHAS lifestyle of health and sustainability. Worry about the environment,wants products to be producesd on a sustainable basis and spend money toadvance their personal health like organic food, energy efficient appliances,solar panels, alternative medicines, yoga tapes, and ecotourism.

Consumers can be Money constrained Create low cost products and services.

Eg . Walmart Everyday low pricesTime constrained Convenient products.

Consumer decisions are also influenced by core values, the belief systems thatunderlie attitudes and beliefs.


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BUYING HABI T S

module 3 ppt

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