Marketing Management

1. Marketing Management Understanding Consumer Behavior Consumer Behavior Different Types of Buying Motives Different Buying Roles Developing 7 O's Framework for Understanding Consumer Behavior Classification of Buying Behavior Consumer�s Decision Process The Stimulus Response Model of Consumer Decision-making Stages in Consumer Decision Process Factors Influencing Consumer Behavior Business Market versus Consumer Markets

2. Marketing Management Definition Consumer behaviour refers to the actions of consumers in the market place and the underlying motives for those actions. Marketers expect that by understanding what causes consumers to buy particular goods and services they will be able to determine which products are needed in the market place, which are obsolete, and how best to present the goods to the consumers. Consumer behaviour is defined as the process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services. Consumer behaviour refers to the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Study of consumer behaviour is the study of how individuals make decisions to spend their available resources like time, money and effort on consumption related items. Consumers can be different in age, income and occupation

3. Marketing Management DIFFERENT TYPES OF BUYING MOTIVES Inherent and Learned Buying Motives: Inherent buying motives are those, which arise from the basic needs of the consumers such as sex, comfort and safety. Emotional and Rational Buying Motives Emotional buying motives are those, which are affected by consumer feelings and are often judged by using feelings or affective part of consumer's attitude. In such motives, the heart dominates over head and mind. Sometimes in satisfying these needs, man is not rational. The motives are hunger, thirst, ego, prestige, comfort, pleasure, love and affection etc. Rational buying motives are those motives where a consumer is rational and his decision is based on logic and justifications while taking buying decision. In this case mind dominates over heart. Before making any purchase, he satisfies himself with the price, quality, durability, reliability and service and then decides to purchase the goods, which are useful to him and are available at a reasonable price. The consumer is often seen taking more time in making rational purchases.

4. Marketing Management DIFFERENT BUYING ROLES

5. Marketing Management DEVELOPING 7 O'S FRAMEWORK FOR UNDERSTANDING CONSUMER BEHAVIOR Who is the Consumer (Occupants): Answer to this question helps the consumer behaviour student to understand consumer's geographic, demographic, and psychographic and media graphic profile. Media graphics are the media habits of the consumer e.g. Fair and Lovely cream sells more in the Southern region than in the other regions. A study of demographic profile of Frooti drinkers revealed that only 5-12 years' age group drinks Frooti. Teenagers (the biggest market for soft drinks) didn't drink Frooti because they found it too kiddish. Hence, the Digen Verma campaign was released for relaunching Frooti as a 'cool drink' for 'cool dudes'. The advertisements also show the typical psychographic profile of today's teenagers, using their language and talking about their interests like careers, computers, etc. What does the Consumer Buy (Object of Purchase): Answer to this question explains what product proposition the consumer is buying. The answer is in terms of product (e.g. soft drinks, soft drink concentrate, syrups, etc.), product forms (in soft drinks � Cola vs. Lime vs. Orange) and brands (Coke vs. Pepsi). What are the features, sizes, colors, flavors, etc. that the consumer seeks? Why is the Consumer Buying (Objective): This answers the reason 'why' of buying and explains what benefits the consumer expects the product or service to serve. This also explains what benefit the consumer is seeking. What motives is he trying to satisfy? E.g. Fair and Lovely caters to a very strong motive of women, based on the desire to look fair, in a country obsessed with fair skin. Consumers today are also looking for sun protection in their cream. When do they Buy or How Often do they Buy and Use (Occasion): This explains the buying rate or buying frequency of consumers and the occasion on which they would buy the product or service for the desired benefits e.g. big-ticket items like refrigerators, air-conditioners, are bought during Diwali.

6. Marketing Management DEVELOPING 7 O'S FRAMEWORK FOR UNDERSTANDING CONSUMER BEHAVIOR Where do they Buy (Outlets): The answer to this question explains the type and nature of outlets from where the customer makes a choice? The type of outlet can be a retail shop, grocery store and wholesaler's shop. The nature of outlets also includes urban outlets, shopping malls or rural shops. For example, do consumers buy soaps from grocery and general stores or more from chemists? How do they Buy (Operations): This explains what kind of background information do consumers collect before buying and from whom do they seek this information. For example before buying a car the consumer collects a lot of background information from friends and does a lot of deliberation before buying. Also when he enters a dealer�s showroom he asks the dealer or salesman many questions. Who is Involved (Organization): This explains the organization of information sources around the key players in the decision process. It describes the various roles played by people in the purchase process.

7. Marketing Management CLASSIFICATION OF BUYING BEHAVIOR

8. Marketing Management Stages in Consumer Decision Process

9. Marketing Management FACTORS INFLUENCING CONSUMER BEHAVIOR

10. Marketing Management UNDERSTANDING INDUSTRIAL (ORGANISATIONAL) BUYING BEHAVIOR Organizational Consumers Roles and Responsibility of Buying Centers Various Functional Departments in the Purchase Process Organizational Buyer's Buying Motives Organisational Buying Situations Organisational Buyer's Decision Process

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13. Marketing Management ROLES AND RESPONSIBILITY OF BUYING CENTERS

14. Marketing Management VARIOUS FUNCTIONAL DEPARTMENTS IN THE PURCHASE PROCESS Marketing Production and Operations Research & Dev. Purchase

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18. Marketing Management DEVELOPING MARKETING STRATEGIES Characteristics of a Good Marketing Plan Importance of Marketing Planning Strategic Corporate Planning by Top Management Assigning Resources to each Strategic Business Unit The Boston Consulting Group�s Growth-Share Matrix (BCG Matrix) Applications of Portfolio Models Core Competencies Designing an Overall Marketing Plan and Contents of a Marketing Plan

19. Marketing Management Planning is a process of designing the blueprint for the future. The future of marketing in an organization should stem from the future of the organization itself. The basic function of management includes planning, organizing, executing, coordinating and controlling the future course of Action. Planning is the process of envisioning the future, establishing objectives and goals for the firm, designing organizational and marketing strategies and tactics to be implemented at different points of time in future to achieve the goals. It involves analysis of perceived opportunities and threats, evaluating various alternatives and selecting the best course of action to achieve organizational goals. Planning goes beyond analysis and helps in predicting the future and in devising means to adjust to an ever-changing environment. It helps organizations to shape their destiny by anticipating changes in the marketplace rather than taking fire-fighting measures. Strategic planning is long term planning by the top management. This plan specifies organization�s primary goals and objectives and focuses on the entire organization.

20. Marketing Management DEVELOPING MARKETING STRATEGIES

21. Marketing Management CHARACTERISTICS OF A GOOD MARKETING PLAN A good marketing plan should communicate to every member what is desired of each member, so that they have some level of goal clarity, understanding of assumptions that lie behind the goals and the context of each activity and decision. IMPORTANCE OF MARKETING PLANNING

22. Marketing Management STRATEGIC CORPORATE PLANNING BY TOP MANAGEMENT

23. Marketing Management STRATEGIC CORPORATE PLANNING BY TOP MANAGEMENT

24. Marketing Management STRATEGIC CORPORATE PLANNING BY TOP MANAGEMENT A higher market share High growth opportunities Increased ability to compete in global markets Product innovation Recognition as a leader in technology Better customer services Good reputation with customers Low cost compared with competitors High quality goods and services Brand image and loyalty Wider profit margin

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