what is marketing

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MASTER OF BUSINESS STUDIES
Marketing Module(MKT714J1) CONSUMER MARKETS AND
BUYER BEHAVIOUR
WEEK 3
Paula Durkan Room 1B13 Tel [phone]
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CONSUMER BUYING BEHAVIOUR

• The buying behaviour of final consumers -
  individuals and households who buy goods and
  services for personal consumption.
• Kotler et al 2000

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Consumer Market - All the individuals and
households who buy or acquire goods and services
for personal consumption. Kotler Armstrong
2001
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Understanding customers
Who is important?
What are their choice criteria?
How do they buy?
Customers
When do they buy?
Where do they buy?
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CONSUMER BUYING DECISION PROCESS
Problem recognition
Evaluation of alternatives
Purchase
Post-purchase evaluation
Information Search
Feedback
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FACTORS INFLUENCING BEHAVIOUR
Cultural
Psychological
Social
Cultural Subculture Social Class
Reference groups Family Roles and Status
Motivation Perception Learning Beliefs and
attitudes
Personal Job LC stage
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• Stage I Problem Recognition
• Buyer becomes aware there is a difference
  between desired state and their actual condition.
• Person may not be aware of need may see an
  advertisement for something then recognise the
  need. Recognition can be slow or rapid.
• Stage II Information Search
• Information search helps resolve the problem or
  satisfy the need. However problem may be
  information overload solution is to improve the
  quality of information and stress key features
  which are important to buyers.

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Stage III Evaluation of Alternatives Buyer
establishes their criteria and ranks it.
Marketers can influence this ranking e.g.
stressing a cars petrol consumption over a
competitors directs attention to this factor. If
at this stage there are one or more brands
consumer might but then move to next
stage. Stage IV Purchase Selection is based on
previous stages and product availability, terms
of sale, price, delivery, maintenance, credit
facilities etc. Buyer can of course terminate
the process before actual purchase if unsatisfied
with any of these dimensions.
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Stage V Post-purchase Evaluation The buyer
begins evaluating the product to ascertain if its
actual performance meets expected levels.
Outcome will dictate whether they will purchase
the product again, complain or communicate with
other potential buyers.
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BLACK BOX MODEL
Stimulus Variables Inputs
Intervening Variables black box
Response Variables Outputs
P R Smith 2000
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TYPES OF BUYING SITUATIONS

• Consumer Markets
• Extensive problem solving (EPS)
• Limited problem solving (LPS)
• Routinised response behaviour (RRB)

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Determinants of the extent of problem solving
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Life cycle stages
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U.K. Social Class System (JICNARS)

• Social Social status Head of household
  occupation of
• Grade families
• A Upper middle Higher managerial or
  2.8
• class professional
• B Middle class Intermediate
  managerial, 18.8
• administrative or professional
• C1 Lower middle Supervisory or clerical
  and junior 27.5
• class managerial, administrative or
  professional
• C2 Skilled Skilled manual
  workers 22.1 working class
• D Working class Semi and unskilled manual
  workers 17.6
• E Those at State pensioners or widows (no
  other 11.4
• lowest level earner), casual or lowest
  grade workers
• of subsistence

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TYPES OF ORGANISATIONAL MARKET

• The Industrial/Producer market
• The reseller market
• The Government market
• The institutional market

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ORGANISATIONAL MARKETS(PAGES ACRONYM)
Purchaser (orders the goods or services) Adviser
(those that are knowledgeable in the
field) Gatekeeper (secretaries, receptionists and
assistants who want to protect their bosses) End
user (sometimes called the customer) Starter
(instigator or initiator)
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Buying Situation Implications
New Task
Modified Rebuy
Time taken for decision
Straight Rebuy
No of people involved in buying centre
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Organisational buying decision process and
factors that may influence it
Possible influencing factors
Decision process

• Environmental
• Laws
• Regulations
• Economic conditions
• Competitive forces
• Technological changes

Recognise problem
Develop product specifications to solve problem

• Organisational
• Objectives
• Purchasing policies
• Resources
• Buying centre structure

Search for products and suppliers
Evaluate products relative to specifications

• Interpersonal
• Co-operation
• Conflict
• Power relationships

Select and order most appropriate product

• Individual
• Age
• Education level
• Job status
• Personality
• Income

Evaluate product and supplier performance