Marketing

Management
Marketing Environment
Today you have to run faster to stay in the same place.

- Kotler
 The marketing environment
consists of the forces that are
external to the marketing functions
of an organization but infuence its
marketing abilities in dealing with
customers.
 Key
Environment
s

Microenvironmen Macroenvironme
t nt

Includes actors close Involves larger

to the company societal forces
 The Company Customers

Actors in
Suppliers Microenvironment Competitors

Marketing Intermediaries Publics

 Demographic Natural

Marcroenvironme Technologica
Political
l
ntal Forces

Cultural Economic
 Responding to the
Marketing Environment
Reactive: Passive Acceptance and Adaptation

Companies design strategies that avoid threats and capitalize upon

opportunities.

Proactive: Environmental Management

Use of lobbyists, PR, advertorials, lawsuits, complaints, and contractual

agreements to infuence environmental forces.
 Those who make things happen
1

Three Kinds
of 2 Those who watch things happen
Companies

Those who wonder what’s happened

Analyzing Consumer Markets & Buying
Behavior
 Simple Response Model

Stimulus Customer Response

 Model of Consumer Behavior

Marketing and Buyer’s Black Buyer’s

Other Stimuli Box Response
 Model of Buying Behavior

Buyer’s
Decision
Marketing Buyer’s Process
Other Stimuli
Stimuli Characteristics
• Problem
Economic recognition
Product Cultural
Technological • Information
Price Social
Political search
Place Personal
Cultural • Evaluation
Promotion Psychological
• Decision
• Post-purchase
behavior

Buyer’s Decisions

Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
 Characteristics
Afecting
Customer
Behavior

Cultural Buyer

Social Psychological
Family and Lifestyle
Cultural Factors

Culture

Subculture

Social Class

Buyer
 Social Factors

Family

Reference Roles and

Groups Statuses
 Interests
Opinions Activities
Lifestyle Identifcation
Economic Situation
Occupation Age and Life Cycle Stage
Family Infuences
Family and Lifestyle Infuences
Psychological Factors

Motivation
Motivation

Beliefs &
Beliefs &
Attitudes
Attitudes

Perception Learning
Perception Learning
Maslow’s Hierarchy of Needs

Self
Actual
ization

Self-Esteem

Belongingness

Safety

Physiological
 User

Buyer Initiator
Consume
r Buying
Roles

Infuenc
Decider er
 Consumer Buying Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behavior
 Decision-making Sets

Awareness Considerati
Total Set Choice Set Decision
Set on Set
 Organizational Markets &
Organizational Buying Behavior
Many businesses are wisely turning their suppliers &
distributers into valued partners.
- Kotler
 Organizational Buying

It is a decision-making process by which formal organizations

establish the need for purchased products and services, and
identify, evaluate, and choose among alternative brands and
suppliers.
- Webster & Wind
Consumer Market versus Business Market

Fewer buyers: Automobile Co. have fewer choice to buy tires for their vehicles.

Larger buyers: A few large buyers do most of the purchasing in such industries as
aircraft engines and defense weapons.

Close supplier-customer relationship: Suppliers are frequently expected to

customize their oferings to individual business customer needs.

Inelastic demand: The change in price does not afect the demand to a larger
extent.

Fluctuating demand: A given % increase in consumer demand can lead to a much

larger % increase in the demand for plant & equipment necessary to produce the
additional output.

Professional purchasing: Business goods are purchased by trained purchasing

agents, who must follow their organization’s purchasing policy, constraints, and
 Buying Situations

• The buyer routinely reorders

Straight Rebuy something without any modifcations.

• The buyer wants to modify product

Modifed Rebuy specifcations, prices, terms, or
suppliers.

• The buyer purchases a product or

New Task service for the frst time.

• The buyer prefer to buy a total

Systems Buying solution to their problem from one
seller.
Participants in the Business Buying Process

Buying Center:
The decision-making unit of a buying organization.
• Not fxed or formally identifed unit.
• Membership will vary for diferent products and buying tasks.
Buying Center Members:
• Initiator
• Users
• Infuencers
• Deciders
• Approvers
• Buyers
• Gatekeepers
Members can play multiple roles.
 Users

Decision-
makers Infuencers

Decision-
making
Units

Gatekeeper
Buyers s
 Buying Decision Infuencer
Environment Organization Interpersona
Individual
al al l
Economic
developments

Supply
Age
conditions Objectives
Authority Income
Technological Policies
change
Status Education
Procedures
Political and
Empathy Job position
regulatory Organizational
developments structure
Persuasiveness Personality
Competitive Systems
Risk attitudes
developments

Culture and
customs
 The Business Buying Process

Buying Stages

Order-
General Product
Problem Supplier Proposal Supplier routine Performanc
Need Specifcatio
Recognition Search Solicitation Selection Specifcatio e Review
Description n
n
Institutional and Government Markets

The institutional market consists of schools, hospitals, nursing homes, etc.,

that provide goods & services to people in their care.

Many of them are characterized by low budgets & captive clienteles.