Fundamentals Of

Marketing
By
Tauseef Iqbal Khan
Faculty Member- IQRA University
Maggi Noodles- Making a Nation
Slurp
• Indians love home cooked food
• Hectc work life have increased a need for basic convenience in every
aspect of life even in basic necessites of food
• Nestle brought in Maggi as an afer school snack product
• Maggi – a quick to eat product that played on “2 minutes”
• Captve was rampant increasing of working women professional
• Maggi was perceived as “Fun to eat”
• A child plays in a mother decision on what to cook and by appealing
to the children
Maggi Noodles- Making a Nation
Slurp
• With the advent of modernizing Indian society, a number of questons
were levelled against ill efects of instant food
• There was a lot of critcism about the health status of Maggi (contains
non-healthy elements)
• Nestle responded to the change in customer’s expectatons
• Brought new slogan “Taste Bhi, Health Bhi”
Chapter 5 Consumers Market and
Buyer Behavior
Learning Objectve
• Defne the consumer market -Model of Consumer Behavior
• Characteristcs Afectng Consumer Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New Products
Consumer Buyer Behavior –
Consumer Market
• The Maggi story shows that factors at many levels afect consumer buying
behavior
• Consumer Buyer Behavior refers to the buying behavior of fnal consumers—
individuals and households that buy goods and services for personal
consumpton
• All of these fnal consumers combine to make up the Consumer Market
• Consumers around the world vary tremendously in age, income, educaton
level, and tastes. They also buy an incredible variety of goods and services
• How these diverse consumers relate with each other and with other elements
of the world around them impacts their choices among various products,
services, and companies
Model of Consumer Behavior
• Most large companies research consumer buying decisions in great
detail to answer questons about what consumers buy, where they
buy, how and how much they buy, when they buy, and why they buy
• The central queston for marketers is this
• How do consumers respond to various marketnn eforts the company
minht use ?
Characteristics Afecting Consumer Behavior
Consumer purchases are infuenced strongly by cultural, social,
personal, and psychological characteristics
Characteristics Afecting Consumer
Behavior
Cultural Factors
• a broad and deep infuence on consumer behavior
Culture
• Culture is the most basic cause of a person’s wants and behavior.
Human behavior is largely learned
• Growing up in a society, a child learns basic values, perceptons, wants,
and behaviors from his or her family and other important insttutons
• Marketers are always trying to spot cultural shifs so as to discover
new products that might be wanted
Characteristics Afecting Consumer
Behavior
Subculture
• Each culture contains smaller subcultures, or groups of people with shared
value systems based on common life experiences and situatons
• Subcultures include natonalites, religions, racial groups, and geographic
regions
Social Class
• Almost every society has some form of social class structure
• Social classes are society’s relatvely permanent and ordered divisions
whose members share similar values, interests, and behaviors like upper
class – lower class- working class etc.
Characteristics Afecting Consumer
Behavior
Total Market Strategy
A practce of intenratnn ethnic themes and cross-cultural
perspectve within their mainstream marketnn
Characteristics Afecting Consumer
Behavior
Groups and Social Networks
• Many small groups infuence a person’s behavior. Groups that have a
direct infuence and to which a person belongs are called membership
groups
• In contrast, reference groups serve as direct (face-to-face interactons)
or indirect points of comparison or reference in forming a person’s
attudes or behavior
• People ofen are infuenced by reference groups to which they do not
belong
• Marketers try to identfy the reference groups of their target markets
Characteristics Afecting Consumer
Behavior
Word-of-mouth infuence
• The impact of the personal words and recommendatons of trusted friends,
family, associates, and other consumers on buying behavior
Opinion leader
• A person within a reference group who, because of special skills, knowledge,
personality, or other characteristcs, exerts social infuence on others
Online social networks
• Online social communites—blogs, social networking Web sites, and other
online communites—where people socialize or exchange informaton and
opinions
Characteristics Afecting Consumer
Behavior
Family
• The family is the most important consumer buying organizaton in society, and it has been
researched extensively
• Marketers are interested in the roles and infuence of the husband, wife, and children on
the purchase of diferent products and services
Roles and Status
• A person belongs to many groups—family, clubs, organizatons, online communites
• The person’s positon in each group can be defned in terms of both role and status
• A role consists of the actvites people are expected to perform according to the people
around them. Each role carries a status refectng the general esteem given to it by society
• People usually choose products appropriate to their roles and status
Characteristics Afecting Consumer
Behavior
Personal Factors
• A buyer’s decisions also are infuenced by personal characteristcs such as the
buyer’s age and life-cycle stage, occupaton, economic situaton, lifestyle, and
personality and self-concept
Age and Life-Cycle Stage
• People change the goods and services they buy over their lifetmes. Tastes in
food, clothes, furniture, and recreaton are ofen age related
• Buying is also shaped by the stage of the family life cycle—the stages through
which families might pass as they mature over tme
• Marketers ofen defne their target markets in terms of life-cycle stage and
develop appropriate products and marketng plans for each stage
Characteristics Afecting Consumer
Behavior
Occupaton
• A person’s occupaton afects the goods and services bought
Economic Situaton
• A person’s economic situaton will afect his or her store and product
choices
• Marketers watch trends in spending, personal income, savings, and interest
rates
• In today’s more frugal tmes, most companies have taken steps to create
more customer value by redesigning, repositoning, and reprising their
products and services
Characteristics Afecting Consumer
Behavior
Lifestyle
• People coming from the same subculture, social class, and occupaton may
have quite diferent lifestyles
• Lifestyle is a person’s patern of living as expressed in his or her
psychographics
• It involves measuring consumers’ major AIO dimensions—actvites (work,
hobbies, shopping, sports, social events), interests (food, fashion, family,
recreaton), and opinions (about themselves, social issues, business, products)
• Consumers don’t just buy products; they buy the values and lifestyles those
products represent
Characteristics Afecting Consumer
Behavior
Personality and Self-Concept
• Personality refers to the unique psychological characteristcs that
distnguish a person or group
• Personality is usually described in terms of traits such as self-
confdence, dominance, sociability, autonomy, defensiveness,
adaptability, and aggressiveness
• Personality can be useful in analyzing consumer behavior for certain
product or brand choices.
Characteristics Afecting Consumer
Behavior
• The idea is that brands also have personalites, and consumers are
likely to choose brands with personalites that match their own
• A Brand Personality is the specifc mix of human traits that may be
attributed to a partcular brand
• One researcher identfed fve brand personality traits: sincerity
(down-to-earth, honest, wholesome, and cheerful), excitement
(daring, spirited, imaginatve, and up-to-date), competence (reliable,
intelligent, and successful), sophistcaton (glamorous, upper class,
charming), and ruggedness (outdoorsy and tough)
“Your personality determines what you consume”
Characteristics Afecting Consumer
Behavior
Psychological Factors
• A person’s buying choices are further infuenced by four major psychological
factors: motvaton, percepton, learning, and beliefs and attudes
Motvaton
• A person has many needs at any given tme. Some are biological, arising from states
of tension such as hunger, thirst, or discomfort
• Others are psychological, arising from the need for recogniton, esteem, or
belonging
• A need becomes a motve when it is aroused to a sufcient level of intensity
• A motve (or drive) is a need that is sufciently pressing to direct the person to seek
satsfacton
Characteristics Afecting Consumer
Behavior
• Two of the most popular—the theories of Sigmund Freud and Abraham
Maslow—carry quite diferent meanings for consumer analysis and marketng
• Sigmund Freud assumed that people are largely unconscious about the real
psychological forces shaping their behavior. His theory suggests that a
person’s buying decisions are afected by subconscious motves that even the
buyer may not fully understand
• The term motvaton research refers to qualitatve research designed to probe
consumers’ hidden, subconscious motvatons. Consumers ofen don’t know
or can’t describe why they act as they do
• Many marketers use such touchy-feely approaches, now sometmes called
interpretve consumer research
Characteristics Afecting Consumer
Behavior
• Abraham Maslow sought to explain why people are driven by partcular
needs at partcular tmes
• Why does one person spend a lot of tme and energy on personal safety
and another on gaining the esteem of others
Percepton
• The process by which people select, organize, and interpret informaton
to form a meaningful picture of the world
• People can form diferent perceptons of the same stmulus because of
three perceptual processes: selectve atenton, selectve distorton, and
selectve retenton
Characteristics Afecting Consumer
Behavior
• Selectve atenton—the tendency for people to screen out most of the
informaton to which they are exposed
• Selectve distorton describes the tendency of people to interpret
informaton in a way that will support what they already believe
• People also will forget much of what they learn
• They tend to retain informaton that supports their attudes and beliefs
• Selectve retenton means that consumers are likely to remember good
points made about a brand they favor and forget good points made
about competng brands
Characteristics Afecting Consumer
Behavior
• Although most marketers worry about whether their ofers will be
perceived at all, some consumers worry that they will be afected by
marketng messages without even knowing it— through subliminal
advertsing
• Numerous studies by psychologists and consumer researchers have
found litle or no link between subliminal messages and consumer
behavior
• Recent brain-wave studies have found that in certain circumstances,
our brains may register subliminal messages
Characteristics Afecting Consumer
Behavior
Learning
• When people act, they learn
• Learning describes changes in an individual’s behavior arising from experience
• Learning theorists say that most human behavior is learned. Learning occurs
through the interplay of drives, stmuli, cues, responses, and reinforcement
• A drive is a strong internal stmulus that calls for acton
• A drive becomes a motve when it is directed toward a partcular stmulus
object
• Cues are minor stmuli that determine when, where, and how the person
respond
Characteristics Afecting Consumer
Behavior
Belief
• A descriptve thought that a person holds about something
Attude
• A person’s consistently favorable or unfavorable evaluatons, feelings,
and tendencies toward an object or idea
Types of Buying Decision Behavior
Complex buying behavior
• Consumer buying behavior in situatons characterized by high consumer involvement in a
purchase and signifcant perceived diferences among brands
Dissonance-reducing buying behavior
• Consumer buying behavior in situatons characterized by high involvement but few perceived
diferences among brands
Habitual buying behavior
• Consumer buying behavior in situatons characterized by low consumer involvement and few
signifcant perceived brand diferences
Variety-seeking buying behavior
• Consumer buying behavior in situatons characterized by low consumer involvement but
signifcant perceived brand diferences
The Buyer Decision Process
Need recogniton
• The frst stage of the buyer decision process, in which the consumer
recognizes a problem or need.
Informaton search
• The stage of the buyer decision process in which the consumer is
motvated to search for more informaton.
Alternatve evaluaton
• The stage of the buyer decision process in which the consumer uses
informaton to evaluate alternatve brands in the choice set
The Buyer Decision Process
Purchase decision
• The buyer’s decision about which brand to purchase.
Post-purchase behavior
• The stage of the buyer decision process in which consumers take
further acton afer purchase, based on their satsfacton or
dissatsfacton.
Cognitve dissonance
• Buyer discomfort caused by post-purchase confict
The Buyer Decision Process for New
Products
New product
• A good, service, or idea that is perceived by some potental customers
as new
Adopton process
• The mental process through which an individual passes from frst
hearing about an innovaton to fnal adopton
Stages in the Adoption Process
• Awareness The consumer becomes aware of the new product but
lacks informaton about it
• Interest The consumer seeks informaton about the new product
• Evaluaton The consumer considers whether trying the new product
makes sense
• Trial The consumer tries the new product on a small scale to improve
his or her estmate of its value
• AdoptonThe consumer decides to make full and regular use of the
new product