A Brief Intro to
Consumer Marketing
A Model of Buyer Behavior
Other Stimuli
Marketing
Economic
Stimuli
Technology
The Four P’s
Political
Cultural
Buyer’s
Characteristics
Buyer’s Decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
Buyer’s
Decision
Process
Buyer’s Characteristics - Cultural
• Culture
– most fundamental determinant of a person’s
wants and behavior.
• Subculture
– nationalities, religions, racial groups, and
geographical regions.
• Social Class
– income, occupation, education, & area of
residence.
Buyer’s Characteristics - Social
• Reference Groups
– all groups having a direct or indirect influence
on person’s attitudes or behavior.
• Family
– single most important consumer-buying
organization in society
– family of orientation vs. family of procreation.
• Roles & Statuses
Buyer’s Characteristics - Personal
• Age & Life Cycle Stage
• Occupation
• Economic Circumstances
• Lifestyle
• Personality & Self-Concept
Buyer’s Characteristics Psychological
Motivation
• Biogenic needs
– needs arising from physiological states of
tension such as hunger, thirst, discomfort.
• Psychogenic needs
– needs arising from psychological states of
tension such as the need for recognition,
esteem, or belonging.
Buyer’s Characteristics Psychological
Perception
• The process by which an individual
selects, organizes, and interprets
information inputs to create a meaningful
picture of the world.
• Types of Selective Perception:
– Selective Attention
– Selective Distortion
– Selective Retention
Buyer’s Characteristics Psychological
• Learning
– changes in an individual’s behavior arising
from experience.
• Beliefs
– descriptive thoughts that a person holds
about some object/issue.
• Attitudes
– relatively enduring un/favorable evaluations,
emotional feelings, and action tendencies
toward some object/issue.
Psychographics According to VALS
• VALS: Values and Lifestyles Framework.
• Intended to yield insights into:
– why people believe/behave as they do, and
– how internal values & attitudes are expressed
externally.
• Primarily based upon consumers’
orientations and level of resources.
VALS Higher Resources Groups
• Actualizers
– successful, sophisticated, active, “take-charge”
types
– cultivated tastes for upscale, niche-oriented
products
– generally status-oriented
• Achievers
– successful, career/work oriented
– prefer established, prestige products to impress
peers
– status-oriented
VALS Higher Resources Groups
• Fulfilleds
– mature, satisfied, comfortable, reflective
– prefer durability, functionality, & value in products
– principle oriented
• Experiencers
– young, enthusiastic, impulsive, rebellious
– high proportion of income spent on clothing, fast
food, music, movies, & video.
– Action oriented
VALS Lower Resources Groups
• Believers
– conservative, conventional, traditional
– favor familiar products & established brands
– principle oriented
• Strivers
– uncertain, insecure, approval-seeking
– prefer stylish products to emulate purchases of
those with greater resources
– status oriented
VALS Lower Resources Groups
• Makers
– practical, self-sufficient, traditional, family-oriented.
– Prefer practical, functional products
– action oriented
• Strugglers
– typically elderly, resigned, passive, concerned
– cautious consumers who are loyal to favorite
brands
– status oriented
Types of Buying Behavior
• Significant Differences Between
Brands
– High involvement: complex buying behavior
– Low involvement: variety-seeking buying
behavior
• Few Differences Between Brands
– High involvement: dissonance-reducing
behavior
– Low involvement: habitual buying behavior
Consumer Purchase Decision
Process
1. Problem Recognition
2. Information Search
3. Evaluation of
Alternatives
4. Purchase Decision
5. Postpurchase
Behavior
A Brief Intro
Business-to-Business
(B2B) Marketing
What Is Business Marketing?
• Those activities that facilitate exchanges
involving products and customers in business
markets
• A business transaction between
– a professional seller (representing a selling company)
and
– a professional buyer (representing a buying company)
• Activities in which goods or services are sold for
any use other than personal consumption
• Note: It is not the nature of the product; it is
the nature of the transaction.
B2B versus B2C Marketing
Characteristic
B2B Market
B2C Market
Sales volume
Greater
Smaller
Purchase volume
Greater
Smaller
Number of buyers
Fewer
Many
Size of individual buyers
Larger
Smaller
Location of buyers
Concentrated
Diffuse
Buyer-seller relationship
Closer
More Impersonal
Nature of channel
More direct
Less direct
Buying influences
Multiple
Single/Multiple
Type of negotiations
More complex
Simpler
Use of reciprocity
Yes
No
Use of leasing
Greater
Less
Key promotion method
Personal Selling
Advertising
Characteristics of Business Demand
•
•
•
•
Derived Demand
Inelastic Demand
Fluctuating Demand
Joint Demand
–“Derived demand” says that demand for a
business product is linked to demand for a
consumer good.
• This means consumer demand affects
business marketing up a vast network of
channels.
Classifying Business Goods & Services
3 Main Categories of Products
Entering Goods
Become part of the finished product
Cost assigned to the manufacturing process
Foundation Goods
Capital Items
Typically depreciated over time
Facilitating Products
Support organizational operations
Handled as overhead expenses
Classifying Business Goods & Services
Entering Goods
 Raw Materials
 Farm products & natural products
 Only processed as necessary for handling & transport
 Require extensive processing
 Manufactured Materials & Parts
 Any product that has undergone extensive processing
prior to purchase
 Component Materials require additional processing
 Component Parts generally do not require additional
processing
Classifying Business Goods & Services
Foundation Goods
Installations
Major long-term investment items
Buildings, land, fixed equipment, etc.
Accessory Equipment
Less expensive & short-lived
Not considered part of fixed plant
Portable tools, PC’s, etc.
Classifying Business Goods & Services
Facilitating Products
Supplies
Any supplies necessary to maintain the
organization’s operations
Services
Maintenance & Repair support
Advisory support
Logistical support
Categories of B2B Customers
• Commercial enterprises
–Indirect channel members and
facilitators
–OEMs (original equipment
manufacturers)
–Users = customers
• Governmental organizations
• Institutions
Major Uses of B2B Products
For additional production (e.g.,
components are combined into
subassemblies and become part
of the finished product)
For use in operations, but not
part of the finished product
For resale
Steps in the Business Buying Process
1.
2.
3.
4.
5.
6.
7.
Recognizing the need
Developing product specifications
Soliciting bids from potential suppliers
Making the purchase decision
Issuing the contract
Inspecting delivered goods for quality
Evaluating vendor performance
Types of Business Buying Situations
• New-task buy:
– Business buying situation that is new and very different
from anything that the buyer has faced previously.
• Straight rebuy:
– Most common type of business buying situation; buyer
purchases a part, material, or service routinely, with
little thought going into buying process.
• Modified rebuy:
– Reevaluation of alternatives; necessary because buying
requirements have changed such that relatively routine
buy or purchase no longer is routine.
Examples of Products Purchased Using
the Buy-Class
Modified
Rebuy
Straight
Rebuy
Office
Supplies
Pure
routine
Vehicles
Consulting
Services
Installations
Complete
negotiation
Electrical
Components
Electricity
Gas/Water
Bulk
Chemicals
New
Buy
Computer
Systems
Moon Shot
Insurance
Insurance for the Apollo 11 Moonshot
Buygrid Analysis Framework
New
Buy
Modified
Rebuy
Straight
Rebuy
Need Recognition
Develop Product Specifications
Solicit Bids
Make Purchase Decision
Issue the Contract
Inspect Goods for Quality
Evaluate Vendor Performance
Complexity of
Buying Situation
Buygrid Analysis Framework
New
Buy
Modified
Rebuy
Straight
Rebuy
Need Recognition
Develop Product Specifications
Solicit Bids
Make Purchase Decision
Issue the Contract
Inspect Goods for Quality
Evaluate Vendor Performance
Creeping
Commitment