CRITICAL MARKETING

TABLE OF CONTENTS
Market Information System…………………………………………………………………………..…3

Steps Of Marketing Research…………………………………………………………………………...4

Analyzing And Distributing Marketing Information………………………………………………….4

Public Policy And Ethics In Marketing Research……………………………………………………..4

Consumer Market……………………………………………………………………………………...4

Model Of Consumer Buying Behavior …………………………………………………………………4

Factors Influencing Consumer Buying Behavior…………………………………………………........5

Buyer Decision Process………………………………………………………………………………......7

Types Of Buying Decision Behavior………………………………………………………………….....7

Product Adoption And Diffusion………………………………………………………………………7

Adoption Process Of A Product……………………………………………………………………….7

Diffusion Process…………………………………………………………………………………….........8

Business Market…………………………………………………………………………………………..8

Business Market Vs Consumer Market……………………………………………………………….8

Factors Influencing Business Buyers………………………………………………………………….9

Institutional Markets……………………………………………………………………………………..9

Business Buying Procedure…………………………………………………………………………….9

Institutional Markets……………………………………………………………………………………..9

Government Markets……………………………………………………………………………………10

Target Marketing………………………………………………………………………………………10

Bases For Consumer Market Segmentation…………………………………………………………10

Bases For Business Market Segmentation……………………………………………………………...11

Attractive Market Segment…………………………………………………………………...................11

Maximize Competitive Advantage In The Marketplace…………………………………………….12

References……………………………………………………………………………………………….. .13

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 COURSE ASSESSMENT
MARKET

Market is a place where exchange of goods take place, every buyer is trying to sell his goods
they use different techniques and methods to make their goods more desirable than other .all
these techniques come under umbrella of marketing. marketing techniques include a well
constructed and executed plan in which they should know who is going to buy from him, why
should people purchase your particular item what is the reason a buyer that the buyer would not
buy the same item from someone else, the seller should make its product look different and
unique .the seller must know the three things due to a buyer purchases a good; to fulfill their
need, to solve a particular problem and to feel good.

MARKETING INFORMATION SYSTEM

Market is a place where exchange of goods take place, every buyer is trying to sell his goods
they use different techniques and methods to make their goods more desirable than other .all
these techniques come under umbrella of marketing. marketing techniques include a well
constructed and executed plan in which they should know who is going to buy from him, why
should people purchase your particular item what is the reason a buyer that the buyer would not
buy the same item from someone else, the seller should make its product look different and
unique .the seller must know the three things due to a buyer purchases a good; to fulfill their
need, to solve a particular problem and to feel good.

It is defined as a set of methods to collect, sort, analyze, evaluate and distribute accurate
marketing information to the marketing decision makers. Marketing leads us towards the
activities such as planning, advertising and selling goods and services to cater the needs of buyer
and to fulfill the objective of the firm marketing information system support decision making in
these activities. The information needed comes from different source which includes internal
records, marketing intelligence and market research

INTERNAL RECORDS
All companies maintain internal records which include data related to marketing, financing.
Marketing record consist of data collect from different sources regarding performance, marketing
problems and marketing opportunities. If a company utilizes these records to improve its
marketing policies it can be very helpful (Ismail, 2011)
MARKETING INTELLIGENCE
Companies heir skilled professionals to gather publicly available marketing information which is
gathered by different sources like costumer ,suppliers and distributors of their competitors and
trends in the marketing environment and this information to develop their own marketing
policies which different from the other companies.(Protection, n.d.)

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MARKET RESEARCH
Management cannot wait for the information to come to them, sometimes market researchers are
conducted to find solution to a problem and sometimes they are conduct to keep an eye on the
marketing environment.
(Bhasin, 2010)

Following is the graphical representation

Figure # 1

Source: (Adeyemi, 2011)

STEPS OF MARKETING RESEARCH

 identifying the problem
 selecting and implementing a suitable research methodology
 analyzing results
 preparing a final report
(Bickerton, 2011)
ANALYZING AND DISTRIBUTING MARKETING INFORMATION:
Marketing information is often analyzed by statistical analysis and analytical models. Customer
relationship management software are used to gather information about costumer from all source
within the firm, if this is a part of CRM it can be beneficial in helping the firm to gain
competitive advantages. Marketing information can be distributed through many ways ;reporting
information regularly, preparing user friendly record which are easy to understand for special
uncertainties .intranets and extranet can be very helpful for sharing information between people
within the organization (sibley, 2012)
PUBLIC POLICY AND ETHICS IN MARKETING RESEARCH
Marketing research is power tool which can also be misused which gives birth to public policy
and ethics issues, some major issues are given below
 violations of consumer privacy policy
 online privacy and security problems
(Ethical issues in Marketing Research, n.d.)

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CONSUMER MARKET
It represents families and individual buying goods and services for their personal use .consumer
market does not include government business related purchases and non personal investment.
(AdarshK, n.d.)

MODEL OF CONSUMER BUYING BEHAVIOR

It is define as the action of consumer in which consumer buys goods or services and consumes
it .this act can be performed because of emotional, personal and social reasons.

Figure #2

(understanding consumer behavior, 2010)

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Above model graphically shows the is complex and continuous process of stimulation of
consumer by various factors which attract him to purchase a good or service

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR:

 Cultural factors
 Social factors
 personal factors
 psychological factors

CULTURAL FACTORS:

Consumer is influenced to buy a product or service due to particular set of wants, values,
perceptions or behavior learned by the members of family, community or social class group. For
example a girl using the same brand of shampoo which only elite class can afford this behavior
shows that the girl is influenced by social class group.

SOCIAL FACTORS:

When a consumer purchases a product under the influence of opinion leader, reference group or
due to marketing buzz, inspiration etc. for example when a young boy buys a T-shirt just like the
one he saw his favorite movie star was wearing.

PERSONAL FACTORS:

When a consumer purchases a product due to the factors like personal opinion, economic
condition, life style, occupation and interests that type of purchases are made due to personal
factors. For example a person purchases a swim suit because he is fond of swimming.(consumer
buyer market behavior, n.d.)

PSYCHOLOGICAL FACTORS:

A person has some benefit and motivation behind his every act; motive is the urge of a person for
which a person seeks satisfaction. Consumer purchasing a product due to following factors
motivation, perception, learning from experiences, beliefs and attitudes falls under the category
of psychological factors. For better understanding of psychological factors scholars refer to
MASHLOW’S HIERARCHY OF NEEDS

Figure#3

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(McMahon, 2010)

BUYER DECISION PROCESS

Buyer’s decision making process consisting of following steps

 recognizing the need of a good

 searching information
 considering and comparing with alternatives
 buying decision
 post buying reaction

TYPES OF BUYING DECISION BEHAVIOR

COMPLEX

complex buying decision are made when the consumer is buying a high prices risky product
which is self expressive and is not bought very frequently so while making such decision a
consumer goes through a learning process in which he learns about the brands, specification and
reliability of the product which he is buying for example buying a computer

DISSONANCE-REDUCING

In this type the consumer is highly involved in the purchase of a high priced product but there is
a very little difference among the brand of the product, for example buying an air conditioner .in
this type the buyer considers the disadvantages of the product post buying.(Wisest, 2011)

HABITUAL

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in this types the involvement of the consumer is low and there is a significantly less differences
among the brands of the product. He will buy the product which he has been using before for
example people who like Pepsi would not Coke which is its best alternative.

VARIETY SEEKING

in this the consumer involvement is low but there is a significant difference in the brand of the
product consumer in this category is in habit of trying new products for example consider
biscuits the consumer will randomly any pack of biscuit without evaluating it, he will evaluate it
while eating and if he doesn’t like that pack of biscuits next time he will go for some other
brands biscuits.(vikram, 2010)

PRODUCT ADOPTION AND DIFFUSION

ADOPTION PROCESS OF A PRODUCT

consumer adopts a product after passing through following stages

AWARENESS: a consumer can be aware of a new which is recently launched in the market
through advertisements, promotional campaigns or may be through friends and family.

INTEREST: a consumer will only purchase a new product if it attracts him or if it is something
that likes.

EVALUATION: the consumer will evaluate the product he will first convince himself by asking
different questions then he decides.

TRAIL: the consumer will the try the product to check whether it has all the functions which
the company claims or not.

ADOPTION AND REJECTION

This is the final stage in which the consumer decides whether he should continue using the
product or not; if the product has satisfied him he will continue and if he is not satisfied he will
switch back to the product he was using before or maybe he will try a new product.

DIFFUSION PROCESS:

Is the time taken by innovation to reach to its ultimate buyer, when a product is launched the
company apply different marketing techniques to sell their product they try to attract people .In
start it is consumed by a small number of people later it expands depending among the marketing
techniques, who fast a product reach to people and not only attract force them to change their
preferences is called diffusion process.(diffusion, n.d.) .a product diffuses in market in following
stages

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  Innovators
 the early adopters
 early majority
 late majority
 laggards

(Berman, n.d.)

BUSINESS MARKET

market in which buying and selling of goods take place by profit making organization (retailers,
industries and business) ,they purchases and sell good for purposes other than personal
consumption.

BUSINESS MARKET VS CONSUMER MARKET

Table#1

In this market firms buy raw material semi
finished goods and capital equipments
The number of organizational consumers is
less
Few channels of distribution
Buyer are not spending from their own pocket
Process of purchasing is complicated and long
(bidding, budgeting bargaining and analysis)
(consumer marketing, 2010 )
In this market finished house hold items and
eatables are sold
Large number of final consumers
Large number of channel of distribution
Buyer are spending their own money
Process of purchasing simple and easy

FACTORS INFLUENCING BUSINESS BUYERS

ENVIRONMENTAL FACTORS: business buying is affected by environmental factors such as

changes in supply, technology, competitive environment, culture, customs, political and
economic conditions.

ORGANIZATIONAL FACTORS: business buying is also affected by the changes with an

organization for example changes in objectives, policies, implementation procedures and system

INTRAPERSONAL FACTOR: business buying is affect by people working in the buying

center and their attitudes

INDIVIDUAL FACTORS: business buying is affected by personal factors like age group, job
destination, personality, attitude towards risk and style of purchasing of individual working in
buying committee.(Cihangir, 2008)

BUSINESS BUYING PROCEDURE

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It includes following stages

 Recognizing the problem

 Describing the needs
 Choosing specification of the product
 Finding a supplier
 Asking for a proposal submission
 Planning order routine
 Choosing a supplier
 Evaluating performance

INSTITUTIONAL MARKETS: the institutes which provide goods and services and care to
the common people for example; school, hospital, prisons etc.

GOVERNMENT MARKETS: the institutes ,good and services which government use to carry
out its main functions falls under the category of government market

(emily, 2007)

TARGET MARKETING

It is strategy to attract the masses, it consists of 3 parts:

MARKET SEGMENTATION: different consumers find different methods to fulfill their needs
and wants so in market segmentation we divide the whole market into different segments based
on different characteristics.

TARGET MARKETING: in this step we try persuade the desire segment of people to purchase
the good or service that we are selling

MARKET POSITIONING: in step we try to create a positive image of the product in

consumers mind by using proper techniques.

BASES FOR CONSUMER MARKET SEGMENTATION

There are number of variables which form the bases of consumer market

GEOGRAPHIC SEGMENTATION

Geographical segmentation divides market into following segments

 Regions
 Population
 size of City
 Climate

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DEMOGRAPHIC SEGMENTATION

In demographic segmentation the market is divided in following segments

 Age
 Gender
 earning
 Occupation
 Education
 Social status
 Generation
 size of Family
 Family cycle
 Home Ownership
 Religion
 minorities
 Nationality

PSYCHOGRAPHIC SEGMENTATION

In Psychographic Segmentation market is divided on the base of social status, standard of living
and personal characteristics:

 area of Interests
 attitude
 traits
 self-esteem
 actions
 morals
 Attitudes

BEHAVIORAL SEGMENTATION

In this segmentation market is divided into segments based on following factors

 Rate of using
 advantages of product
 Loyalty towards brand
 Price
 festivals
 consumer Status

BASES FOR BUSINESS MARKET SEGMENTATION

Business market can be segmented on the bases of following variables:

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  size of Company
 Industry
 Buying approach.
 rate of product consumption
 Geography

(desk note, 2009)

ATTRACTIVE MARKET SEGMENT

To identify an attractive market segment involves five step shows below

Figure# 4

MAXIMIZE COMPETITIVE ADVANTAGE IN THE MARKETPLACE.

A company can maximize its competitive advantage in the market place by introducing additions
benefits for consumers which are not being offered any other company, this will attract more
consumers and company will earn profit.

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