BUYER BEHAVIOUR

1
BUYER BEHAVIOUR

• Marketing Management
• Session 4
• September 26, 1997

2
SESSION OUTLINE

• Issues in positioning
• Understanding buyer behaviour
• general framework
• external and internal variables
• Decision-making process
• steps in the process
• influence of involvement and experience

3
POSITIONING

• Part of the marketing strategy which allows to
  give the product/service its own identity
• Positioning is a competitive tool
• Positioning can be operated at the physical level
  or at the perceptual level
• A strong position in buyers minds gives the
  product a competitive advantage

4
PERCEPTUAL MAPS

• Indicate where a product stands in buyers minds
  relative to its direct and indirect competitors
• Horizontal and vertical axes are perceived
  relevant dimensions of the product category
• Distances between two brands are perceived
  competitive distances
• Ideal tool for positioning strategies

5
POSITIONING STRATEGIES

• Move brand closer to ideal point
• Move ideal point closer to brand
• Change relevance of dimensions
• Introduce a new brand close to ideal point

6
BUYER BEHAVIOUR

• What products/brands are purchased?
• When, where, and in what quantities are they
  purchased?
• Who uses them? Who makes the decision?
• How are they used?
• How is the decision made?

7
GENERAL FRAMEWORK

• See Exhibit 7-1 page 231

8
DECISION-MAKING PROCESS

• See Exhibit 7-12, page 257

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DECISION-MAKING

• Involvement
• financial risk
• personal/psycho-social risk
• functional risk
• Experience
• knowledge
• previous usage

10
ORGANIZATIONAL BUYING BEHAVIOUR

• Professional buyers
• Product is used as input for clients product
• Buying centre

• Need for information
• Understand clients products and their clients
  needs
• Various buying criteria

11
BUYING PROCESSES

• New-task buying
• Modified rebuy
• Straight rebuy

• Bidding process
• Joint development
• Electronic re-ordering

12
NEXT CLASS

• Marketing research
• Chapters 4 and 5
• Environmental analysis - Secondary data
• Market research - Primary data
• McDonalds Corporation
• answer questions from course outline