Marketing Management Analyzing Consumer & Business Market

Annas Vijaya October 22th, 2011

Goals

Understand the major factors

influencing consumer behavior

Know and recognize the types of buying decision behavior

List and define the steps in the

business buying decision process

Define the differs between

consumer and business market

Consumer Behavior Model

Consumer Behavior Model

Exert broadest and deepest influence

Subculture
o

Nationalities

o
o o

Religions
Racial groups Geographic regions Class may be indicated by a

Social classes
o

cluster of variables
(occupation, income,

wealth)

Consumer Behavior Model

Reference groups
Family Social roles

Statuses

Consumer Behavior Model

Age Life cycle stage

Occupation
Wealth Personality

Values
Lifestyle Self-concept

Consumer Behavior Model

Maslows Hierarchy of Needs

Consumer Buying Process

Consumer Buying Decision Process

Five-Stage Buying Decision Model

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

Case Study: UPS

Services
Its 360,000 people and 88,000 vehicles offer ground, air, freight worldwide Helps customer navigate the complexities of international shipping Offers a wide range of financial services Provides consulting services to improve logistics operations

Customer Needs
Consumers need fast, friendly, low-cost package delivery Business needs are more complex
Shipping part of complex logistics process including purchasing, inventory, order status, invoices, payments, returns

Characteristics of Business Markets

Sales in the business market far

exceed sales in consumer

markets.

Business markets differ from

consumer markets in many

ways.
o
o o

Marketing structure and demand

Nature of the buying unit Types of decisions and the decision process

Characteristics of Business Markets

Sales in the business market far

exceed sales in consumer

markets.

Business markets differ from

Compared to consumer markets:

Business markets
have fewer but larger customers

consumer markets in many

ways.
o
o o

Business customers
are more geographically concentrated

Marketing structure and demand

Nature of the buying unit Types of decisions and the decision process

Demand is different
Demand is derived Demand is price inelastic Demand fluctuates more

Characteristics of Business Markets

Sales in the business market far

exceed sales in consumer

markets.

Business markets differ from

consumer markets in many

ways.
o
o o

Compared to consumer purchases:

Involve more buyers in the decision process More professional purchasing effort

Marketing structure and demand

Nature of the buying unit Types of decisions and the decision process

Characteristics of Business Markets

Sales in the business market far

exceed sales in consumer

markets.

Business markets differ from

Compared to consumer purchases:

More complex buying decisions The buying process is more formalized Buyers and sellers work more closely together and build long-term relationships

consumer markets in many

ways.
o
o o

Marketing structure and demand

Nature of the buying unit Types of decisions and the decision process

Model of Business Buyer Behavior

Business Buying Situation

Business Buying Process

Buying Center
Initiators Gatekeepers Users

Buying Center Buyers

Influencers

Approvers

Deciders

Main Influences on Business Buying Behavior