Marketing management sem 3

MARKETING MANAGEMENT SEM-3 DIPESH PATEL

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Topic:- What influences Consumer Behavior

A consumers buying behavior is influenced by cultural,social & personal factors .

(I) Cultural Factors

Culture is the fundamental determinant of a person’s wants & behavior . Each culture consists of smaller subcultures :- that provide more specific identification & socialization for their members .

Subcultures include :-

Nationalities

Religions

Racial group

Geographical regions

When subculture grow large & affluent enough,companies often design specialized marketing programs to serve them .

Ex:- pizza hut :- paneer tikka etc McDonald’s :- aloo burger etc.

(II) Social Factors

Social factors as Reference groups,family & social roles and statuses

REFERENCE GROUPS FAMILY ROLES & STATUSES

Primary Groups Secondary Groups Most influential primary

reference group

A person participates in

many groups-clubs,organizations.The person’s position in each

group can be defined in terms of role & status . a

role consists of the activities a person is expected to perform. Each role carries a

status . People choose products that reflect &

communicate their role & actual or desired status in society .

1. Family 1. Religious

2. Friends 2. Professional

3. Neighbors 3. Trade Unions Family of

orientation

Consists of parents & siblings

Family of

procreation

Consists of spouse & children

4. Co-workers Formal & less

continuous interaction

Informal &

frequent interaction

People are also influenced by groups to

which they do not belong.

(a) Aspirational groups-group person hopes to join

(b) Dissociative groups- those whose

values or behavior an individual rejects.


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(III) Personal Factors A buyers decisions are also influenced by personal characteristics .

(i) Age & stage in the life cycle

(ii) Occupation & economic circumstances (iii) Personality & self-concept (iv) Lifestyle & values

Age & stage in the life

cycle

:- Taste in food ,clothes,furniture and recreation is often age related. Consumption is also shaped by the family life cycle.

Occupation &

economic

circumstances

:- A blue-collar worker will buy work clothes,work shoes, and luchboxes. A company president will buy dress suits,air travel

& executive shirts & tie.

Personality & self-

concept

:- Personality consists of traits such as :-

- self-confidence - dominance

- autonomy - deference(high esteem) - sociability

- defensiveness - adaptability

well known brands found that a number of them tended to be

strong on one particular trait :- ex:- Levis – youthful

MTV- excitement CNN-competence Tata Safari – tough

Lifestyle & values

A lifestyle is a person’s pattern of living in the world as expressed in activities , interests & opinions . Lifestyles are shaped partly by whether consumers are

Money-constrained Time-constrained

Ex:- walmart- “every day low

prices”

Multitasking – ex:-

microwave ovens Ear phones for mobiles


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Topic:- Key Psychological Processes

Model of consumer behavior

( stimulus –response model)

Marketing

Stimuli

Other

Stimuli

Products & services Price

Distribution

Communications

Economic Technological

Political

Cultural

A set psychological processes combine with certain consumer characteristics to result in decision processes & purchases decisions .

Four key psychological processes – (i) Motivation

(ii) Perception (iii) Learning (iv) Memory

These processes influence consumer responses to various marketing stimuli (activating agents)

(i) Motivation :- A need becomes a motive when it is aroused to sufficient level of intensity . A motive is a need that is sufficiently pressing to drive the person to act.

3 best known theories of motivation are :- (a) Sigmund Freud Theory – Freud’s Theory

(b) Abraham Maslow’s Need hierarchy theory – Maslow’s Theory (c ) Frederick Herzberg Theory – Herzberg’s Theory

Pg 174 & 175 ( from Phillip kotler & Kevin lane keller)

(ii) Perception :- In marketing , perception are more important than the reality , as it is perceptions that will affect consumers actual behavior .

Consumer

Psychology

Motivation

Perception

Learning

Memory

Consumer

Characteristics

Cultural Social

Persona

Buying Decision

Process

-Problem

Recognition

-Information search

-Evaluation of alternatives

-Purchase Decision

-Post-purchase

Behavior

Purchase

Decision

-Product Choice

-Brand Choice

-Dealer Choice

-Purchase amount -Purchase timing

-Payment method


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Processes effecting the perceptions are :-

(i) Selective Attention (ii) Selective Distortion

(iii) Selective Retention (iv) Subliminal Perception

Selective Attention :- means that marketers have to work hard to attract consumers notice . The real challenge is to explain which stimuli people will notice :-

- People are more likely to notice stimuli that relate to a current need:- a person who is motivated

to buy a computer will otice computer ads

- People are more likely to notice stimuli that they anticipate:- one will anticipate computers in a computer store rather than radio’s to be in a computer store

- People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli :- 50 % discounts are more noticeable than 10 -15 % discounts .

Selective Distortion :- is the tendency to interpret information in a way that will fit our perceptions. Consumers will often distort information to be consistent with prior brand & product beliefs .

ex:- blind taste tests for pepsi & coke Selective Retention :- We are likely to remember good points about a product we like & forget good

points about competing products . Marketers need to use repetition in sending messages to their target market – to make sure their message is not overlooked and is retained.

Subliminal Perception :- the selective perception mechanism requires active engagement & thought by consumers . therefore marketers get into covert(secret or concealed) subliminal messages in ads &

packages . ex:- anti Marie bureau

(iv) Learning :- involves changes in an individual’s behavior arising from experience. (v) Memory :- The information the marketers provide & the reminders they provide of advertising or

other information already conveyed outside the store will be prime determinants of consumer decision making .

Toipc:- The buying decision Process

Basic psychological processes play an important role in understanding how consumers actually make

their buying decisions. Marketers must understand every aspect of consumer behavior . Ex:- Honda engineers took videos of shoppers loading groceries into car boots to observe their

frustrations & generate possible design solutions.

FIVE STAGE MODEL OF CONSUMER BUYING PROCESS

Problem

Recognition

Information

Search

Evaluation

of alternatives

Purchase

Decision

Post purchase

Behavior


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These are the range of considerations that arise when a consumer faces a highly involving new purchase.

Ist Stage :- Problem Recognition

The buying process starts when the buyer recognizes a problem or need . The need can be triggered by

internal or external stimuli . Internal stimuli :- persons normal needs :- hunger,thirst. External stimuli :- neighbor’s , TV etc.

Therefore marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers . They can then develop marketing strategies that trigger

consumer interest.

IInd Stage:-

Information Search An activated consumer will be inclined to search for more information . At this level a person simply

becomes more receptive to information about a product . The information sources fall into 4 groups :- (1) Personal – Family ,friends,neighbors,acquaintances

(2) Commercial- ad’s,websites,dealers,displays (3) Public- mass media,consumer-rating org (4) Experiential- examining using the product .

Through gathering information, the consumer learns about competing brands & their features.

Therefore marketers should identify the consumers information sources & evaluate their relative importance. Consumers should be asked how they first heard about the brand,what informa tion came later, and the relative importance of the different sources. The answers will help the company prepare

effective communications for the target market.

IIIrd Stage :- Evaluation of Alternatives

The consumer process competitive brand information & make a final value judgment . These judgment

are largely on a conscious & rational basis. Evaluation is done mainly on these basis

First:- consumer is trying to satisfy a need


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Second:- he is looking for certain benefits from the produt

Third :- consumer sees a bundle of attributes for delivering the benefits to satisfy the need.

IVth Stage :-

Purchase Decisions 5 sub-decisions

1. brand – 2. dealer

3. quantity 4. timing 5. payment method

Steps between evaluation of alternatives & a Purchase Decision

Vth Stage :-

PostPurchase Behavior

The marketers job does not end with the purchase . Marketers must monitor :- - Postpurchase satisfaction

Purchase

Decision

Attitudes of others

Unanticipated situational factors

- loss of job

- other urgent purchase

requirement

Purchase

intentions

Evaluation

of

Alternatives


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- Postpurchase actions

- Postpurchase product uses & disposal

Documents

Marketing management sem 3