2012 Assignment

7/21/2019 2012 Assignment

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THE IMPORTANCE OF UNDERSTANDING THE BUYER

BEHAVIOUR AND THE APLLICATION OF MARKETING

MIX ELEMENTS FOR ORGANISATIONAL SUCCESS

Prepared By

B.Navaratnasamy

Reg.No

IIS City Campus

u!y "# $%&$

P'(!imi)a'y C('ti#i*at( i) Ma'+(ti),

SRI LANKA INSTITUTE OF MARKETING



A*+)"-!(.,(m()t

With my heartfelt thanks,

To our most beloved Lectures r.!umaradeepan and r.!ethees"arn for guiding

me for this #ssignmet.

To the office $taff of %%$ &ity &ampus

To my colleagues of $L%.



C")t()ts

EXECUTIVE SUMMARY

INTRODUCTION

&/TASK ONE

&/& C")sum(' P'".u*t O',a)isati")

&/$ Busi)(ss t" Busi)(ss P'".u*t O',a)isati")

$/TASK T0O

$/& Ma'+(ti), Mi1 T2("'y

$/$ P'".u*t

$/3 P'i*(

$/4 P!a*(

$/5 P'"m"ti")

3/TASK THREE

3/& R(!at(. T2("'y

3/$ P'"6!(m R(*",)iti")

3/3 G()('a! N((. D(s*'ipti")

3/4 P'".u*t Sp(*i#i*ati")

3/5 Supp!i(' S(a'*2

3/7 P'"p"sa! S"!i*itati")

3/8 Supp!i(' S(!(*ti")

3/9 O'.(':R"uti)( Sp(*i#i*ati")

3/; P('#"'ma)*( R(<i(-



4/TASK FOUR

4/& T2( 5 L(<(!s "# p'".u*t i) Ma'+(ti),

4/$ D(#i)(. #i<( !(<(!s t" a p'".u*t=

CONCLUSION

A))(1u'(

R(#('()*(s



E1(*uti<( Summa'y

This assignment is on the importance of understanding the buyer behavior and the

application of arketing i' elements for organi(ational success.The task one of

assignment carried brief introduction about selected t"o different organisations asconsumer product )*nilever &ompany+ and business to business product )!alani &ables

PL&+. The task t"o is referenced to the selected organisation as cuonsumer product,

"hich is carried out a detailed analysis of the marketing mi' elements and identify the

key uniue features for a certain product in brief. The task three is referenced to the

selected business to business product buying decision process model has been e'plained

the stages that in the model. %n the final task contained in planning consumer product

market offerings, the organi(ation needs to think through the five levels of the selected

product "hich is add customer value.



INTRODUCTION

%n the marketing "orld product is a ma-or thing. Product may be purchase for

personal consumption or use directly in producing other product.

The #im of this #ssignment is selected t"o different products, first one is consumer

product )B&+ and second one is Business to Business Product )BB+ for detail analysis

of arketing mi' elements, buying process model and five levels of product are ho" to

"ork in a organisation developments that provide superior customer value.



&/TASK ONE

&/& C")sum(' P'".u*t O',a)isati")

The &onsumer Product /rganisation means "hich /rganisation produce productsfor final consumers for personal consumption. *niliver &ompany is kno"n as a

&onsumer Product /rganisation in $ri Lanka.

&/&/&I)t'".u*ti") t" U)i!(<(' C"mpa)y

With 011 brands spanning 20 categories of home, personal care and foods products,

no other company touches so many people3s lives in so many different "ays.

*nilever &ompany brand portfolio has made us leaders in every field in "hich it

"ork. %t ranges from much4loved "orld favourites including Lipton, !norr, 5ove and

/mo, to trusted local brands such as Blue Band and $uave.

6rom comforting soups to "arm a "inter3s day, to sensuous soaps that make you

feel fabulous, our products help people get more out of life.

We3re constantly enhancing *nilever brands to deliver more intense, re"arding

product e'periences. *nilever invest nearly 72 billion every year in cutting4edge researchand development, and have five laboratories around the "orld that e'plore ne" thinking

and techniues to help develop our products.

&ontinuous development of the /rganisation8 &onsumer research plays a vital role

in our brands3 development. We3re constantly developing ne" products and developing

tried and tested brands to meet changing tastes, lifestyles and e'pectations. #nd our

strong roots in local markets also mean *nilever can respond to consumers at a local

level.

By helping improve people3s diets and daily lives, "e can help them keep healthier

for longer, look good and give their children the best start in life.

*nilever also believe that the very business of conducting business in a responsible

"ay has a positive social impact and create and share "ealth, invest in local economies

and develop people3s skills 9 both inside our organisation and in the communities around

us.



Today *nilever employs 2:0 111 people in 211 countries "orld"ide, and supports

the -obs of many thousands of distributors, contractors and suppliers.

;ealth < personal care84

6irst launched in 6rance in 2=>?, our leading male grooming brand, #'e, no" gives

guys the edge in the mating game in over @1 countries

*nilever oral care brands entadent, Peposodent and $ignal have teamed up "ith

the "orld3s largest dental federation, the 65%, "hich represents over :A1 111 dentists

around the "orld

Lu' became the first mass4marketed soap "hen it launched in 2=0. Today it

achieves annual global sales of over 72 billion

5omestos is a best4selling brand in nine of the ?A countries in "hich it3s sold

;industan *nilever in %ndia has launched a hand4"ash product, $urf 'cel Cuick

Wash, "ith a lo" foaming formulation, reducing the amount of "ater needed for rinsing

by up to t"o buckets per "ash

Recent breakthroughs at Re'ona include Re'ona &rystal, a deodorant that

eliminates unsightly "hite deposits on dark garments

*nilever $mall < ighty concentrated liuid fits into a smaller bottle, reuiring

half the packaging, "ater and lorries to transport it, making it kinder on the environment.

6oods84

!norr is our biggest food brand "ith a strong presence in over >1 countries and a

product range including soups, sauces, bouillons, noodles and complete meals

*nilever is the "orld3s largest ice cream manufacturer, thanks to the success of our

;eartbrand "hich includes agnum, &ornetto, &arte d3/r and $olero, and Ben < Derry3s

and Breyers in the *$.

Lipton3s tea4based drinks include the international Lipton %ced Tea range, the Lipton

range in North #merica and Lipton Eello" Label, the "orld3s favourite tea brand



BecelF6lora pro.activ products have been recognised as the most significant

advancement in the dietary management of cholesterol in 01 years.

&/$ Busi)(ss t" Busi)(ss P'".u*t O',a)isati")

Business to Business Product /rganisation means "hich /rganisation produce

products are purchased for further processing or for use in conducting a business. !alani

&ables &ompany is kno"n as a Business to Business Product /rganisation in $ri Lanka.

&/$/& I)t'".u*ti") t" Ka!a)i Ca6!(s

!elani &ables Ltd. "as founded in 2=@=, as an import4substitute manufacturer

during the controlled4economy era. %nitially, components such as dra"n "ire "ere

imported, but over time, the company commenced the manufacture of this commodity at

its factory. ;ence, !elani is the pioneer in $ri Lanka3s "ire dra"ing industry.

%n 2=:?, !&L "as incorporated as a uoted public limited liability company for the

manufacture of po"er cables, telecommunications cables, and enameled "inding "ires in

$ri Lanka.

The company "as a subsidiary of the Pacific 5unlop &ables Group of #ustralia

until 2==@ and it thereafter became a fully4o"ned $ri Lankan company. The Pacific

5unlop Group is up4graded the management systems and technology of the company to

international standards.

The #&L &ables group of companies acuired ma-ority shares of !elani in 2===.

$ince then !elani has been recogni(ed as a fast developing cable4manufacturing company

in $ri Lanka.

Products84

!&L products are manufactured to international as "ell as $ri Lankan standards.

The !elani enamel "ires have received the *nder"riters Laboratory )*L+ certification.

The company3s main products are all types of aluminium and steel4reinforced aluminium

conductors, and single4core and multi4core PH&FILP insulated armoured and

unarmoured copper or aluminum cables and coa'ial cables. The company is also theleading manufacturer in $ri Lanka of enamelled copper "inding "ires.



$ystematic investments have been made over the past four years or so, and, as a

result, the company has achieved better product safety, international recognition,

breakthroughs in product development, and, above all, import substitution. Research and

5evelopment )R < 5+ has been given priority "ith regard to the ob-ectives of the

company. # state4of4the4art laboratory and testing facility at !&L offers precise and

methodical tests for all products, ensuring that they are $L$ compliant, as "ell as meeting

other international standards, before being rolled out of the factory. This, in turn, assures

users of the product3s reliability and safety.

Product &ategories84



$/TASK T0O

$/& Ma'+(ti), Mi1 T2("'y

The ma-or marketing management decisions can be classified in one of the

follo"ing four categories8

Product8 4 this means the product3s )or service3s+ uality, the functions, the features

and benefits of its design plus packaging, guarantees and level of after4sales service.

&hoices can be made about any of these aspects.

Price8 4 this includes recommended prices to end4user customers, distributor3s trade

prices, cash discounts, bulk discounts, terms of credit.

Place8 4 this means "here and "hen the customer buys and consumes the product or

service. Place is sometimes referred to as the marketing channels, physical distribution,

logistics or location.

Promotion84 this means the promotions mi' or the communications mi'. This mi'

includes advertising, sales promotions, publicity, direct mail, e'hibitions, display,

packaging, selling and even "ord4of4mouth.

These variables are kno"n as the marketing mi' or the 0 P3s of marketing. They are

the variables that marketing managers can control in order to best satisfy customers in the

target market. The marketing mi' is portrayed in the follo"ing diagram8

$/$ P'".u*t

$/$/& Su)si!+ D'(am S"#t a). Sm""t2

$un$ilk 5ream soft and smooth range co4created "ith Thomas ta" nourishes the

driest and roughest hair. nriched "ith the ceramide egg comple' offers a complete

treatment that restores hair softness from the first "ash.6or better results use the $unsilk

dream soft < smooth conditioner along "ith the $unsilk soft < smooth shampoo.

$/$/$ Su)si!+ Hai' Fa!! S"!uti")

;air fall solution is the perfect ans"er for visibly less hair fall in -ust one "eek.

$unsilkJs high4performance ;air 6all $olution range co4created "ith 6rancesca 6usco

delivers essential nutrients such as the soya vitamin comple' boosts strength and density

to hair. 6or best results use the $unsilk hair fall solution conditioner along "ith the

shampoo. 6or severe hair fall use the $unsilk hair fall treatment.



$/$/3 Su)si!+ Dama,(. Hai' R(*")st'u*ti")

The ne" $un$ilk 5amaged ;air Reconstruction range co4 created by one of the

"orldJs "ell reno"ned hair care e'perts, Thomas Ta" repairs and nourishes damaged

hair. The king coconut energi(ers in it gives special attention to every strand of damaged

hair and nourishes it from "ithin. This range includes the damaged hair reconstruction

shampoo, conditioner, leave on and treatment.

$/$/4 Su)si!+ Stu))i), B!a*+ S2i)(

$unsilkJs ne" $tunning Black $hine, co4created "ith Damal ;ammadi, gently

nourishes each hair fibre to activate its natural shine properties, so that hair glo"s

brilliantly. %t is enriched "ith #mla Pearl &omple', "hich helps protect your hair against

sun damage.

$/3 P'i*(

*nilever $ri Lanka claims to practice value4based pricing in "hich the customersJ

perception of the productJs price provides a starting point for developing the marketing

mi' of the product. The research department determines this price usually by using focus

groups. The price of $unsilk shampoo sachets sho"s ho" the price also reflects a concern

to make the purchase more convenient, since the rupee is denoted in this value.

$unsilk is also available in Rs 21 for =1ml and Rs 21 for 11ml bottles to cater to

the demands keeping in mind the "ants of this particular customer segment.

The primary importance of this value4based pricing is that the product demand "ill

be much higher if its price is in line "ith the customerJs perception of its value. /ne

crucial concern for value4based pricing is strict management of cost in order to be able to

make a profit at the value4based price. #fter the initial price is determined, *nilever $ri

Lanka then uses target costing in order to achieve the reuired profits.

$/4 P!a*(

5istribution /b-ective8

KTo reach as many to"ns and villages as "e can

*nilever $ri Lanka has over A1 distributors "hose function is to sell to "holesalers

directly. There are different distributors for different areas. They are carefully selected

and their performance is constantly evaluated. /ther than the distributors they have

retailers and outlets as "ell.



$/5 P'"m"ti")

M Build above the line consumersJ a"areness.

M &reating a personality of the brand.

Besides having these general ob-ectives, the advertising ob-ectives are set avoiding to the

advertising strategy for each product, .g. $unsilk advertising ob-ectives since it "as

being re4launched "ere8

M To increase the usage.

M &onditioning benefits.

M akes the hair appear clean and shiny.

M %mparts a feeling of freshness4due to fragrance.

M asy to manage, silky, soft hair.

M *niue shampoo for every hair type.

M ffectively communicate brand promise.

Promotional $trategy84

M %nnovative campaigns such as ;airapyJ and Life &anJt WaitJ "ere launched to attract"omen to the brand

M $ponsored short filmsFevents that "ere broadcast during popular television sho"s.

M edia platforms used

M Print media

M internet rural campaign

M environment concern ads

M usic videos

M 6ree sample distribution

M 5emo campaigning

M Promotion of the products in the sunsilk range through events such as fashion sho"s

and bridle sho"s. $unsilk has come up "ith a ne" promotional campaign G//5 ;#%R

5#E$ in si' ma-or cities in collaboration "ith famous hair stylists of the country.



M #dvertising

*nilever $ri Lanka believes that messages about product delivered by credible

sources can be very persuasive. ;ence "orld famous hair care e'pert like Lal

Weerasinghe endorses $unsilk and more value is added to the brand. &onsumers relate to

products itself, they can relate to a human being "ho consumers believe is an e'pert so

Lal Weerasinghe is an e'pert so is $unsilk. Lal Weerasinghe a recogni(ed and highly

ualified hair stylist is used by $unsilk in its ads and TH sho"s because they "ant to

bring out an e'pertJs image.



3/TASK THREE

3/& R(!at(. T2("'y

/rgani(ational buying is the decision making process by "hich formal

organi(ations establishes the need for purchased products and services and identifies,

evaluate, and choose among alternative brands and suppliers. The business market

consists of all the goods that a business uses as part of their day to day operations. When

purchasing goods, a business has three options8 a straight rebuy, modified rebuy, and a

ne" task. Within the company3s buying center there are several groups "ho make inputs

into the decision process. There are initiators, users, influencers, deciders, approvers,

buyers, and gatekeepers. #s a company decides "hat to purchase they go through an

eight step buying process. The eight steps are problem recognition, general need

description, product specification, supplier search, proposal solicitation, supplier

selection, order routine specification, and performance revie".

3/$ P'"6!(m R(*",)iti")

The buying process begins "hen someone in the company recogni(es a problem or

need that can be met by acuiring a specific product or service. Problem recognition can

result from internal or e'ternal stimuli. %nternally, the company may decide to launch a

ne" product that reuires ne" production euipment and materials. /r a machine may

break do"n and need ne" parts. Perhaps a purchasing manager is unhappy "ith a current

supplier3s product uality, service, or prices. 'ternally, the buyer may get some ne"

ideas at a trade sho", see an ad, or receive a call from a salesperson "ho offers a better

product or a lo"er price. %n fact, in their advertising, business marketers often alert

customers to potential problems and then sho" ho" their products provide solutions.

6or e'ample, &eylon lectricity Board )&B+ "ants to offer efficient po"er supply

services to its clients. To do this it needs to purchase some /ver ;ead Line &ables. Thus,

the need to make a purchase of a product, /ver ;ead Line &ables, is identified .



3/3 G()('a! N((. D(s*'ipti")

;aving recogni(ed a need, the buyer ne't prepares a general need description that

describes the characteristics and uantity of the needed item. 6or standard items, this

process presents fe" problems. 6or comple' items, ho"ever, the buyer may have to "ork

"ith othersOengineers, users, consultantsOto define the item. The team may "ant to

rank the importance of reliability, durability, price, and other attributes desired in the item.

%n this phase, the alert business marketer can help the buyers define their needs and

provide information about the value of different product characteristics.

3/4 P'".u*t Sp(*i#i*ati")

The buying organi(ation ne't develops the item3s technical product specifications,

often "ith the help of a value analysis engineering team. Halue analysis is an approach to

cost reduction in "hich components are studied carefully to determine if they can be

redesigned, standardi(ed, or made by less costly methods of production. The team decides

on the best product characteristics and specifies them accordingly. $ellers, too, can use

value analysis as a tool to help secure a ne" account. By sho"ing buyers a better "ay to

make an ob-ect, outside sellers can turn straight rebuy situations into ne"4task situations

that give them a chance to obtain ne" business.

6or e'ample, the &B must select "hich type of /ver ;ead Line &ables from the

many push and lo" resistance varieties on the market meets the company need for some

/ver ;ead Line &ables the best.

3/5 Supp!i(' S(a'*2

The buyer no" conducts a supplier search to find the best vendors. The buyer can

compile a small list of ualified suppliers by revie"ing trade directories, doing a

computer search, or phoning other companies for recommendations. Today, more and

more companies are turning to the %nternet to find suppliers. 6or marketers, this has

leveled the playing fieldOsmaller suppliers have the same advantages as larger ones and

can be listed in the same online catalogs for a nominal fee8 The ne"er the buying task,

and the more comple' and costly the item, the greater the amount of time the buyer "ill

spend searching for suppliers. The supplier3s task is to get listed in ma-or directories and

build a good reputation in the marketplace. $alespeople should "atch for companies in

the process of searching for suppliers and make certain that their firm is considered.

3/7 P'"p"sa! S"!i*itati")

%n the proposal solicitation stage of the business buying process, the buyer invites

ualified suppliers to submit proposals. %n response, some suppliers "ill send only a

catalog or a salesperson. ;o"ever, "hen the item is comple' or e'pensive, the buyer "ill

usually reuire detailed "ritten proposals or formal presentations from each potential

supplier. Business marketers must be skilled in researching, "riting, and presenting

proposals in response to buyer proposal solicitations. Proposals should be marketing



documents, not -ust technical documents. Presentations should inspire confidence and

should make the marketer3s company stand out from the competition.

3/8 Supp!i(' S(!(*ti")

The members of the buying center no" revie" the proposals and select a supplier or suppliers. 5uring supplier selection, the buying center often "ill dra" up a list of the

desired supplier attributes and their relative importance. %n one survey, purchasing

e'ecutives listed the follo"ing attributes as most important in influencing the relationship

bet"een supplier and customer8 uality products and services, on4time delivery, ethical

corporate behavior, honest communication, and competitive prices. /ther important

factors include repair and servicing capabilities, technical aid and advice, geographic

location, performance history, and reputation. The members of the buying center "ill rate

suppliers against these attributes and identify the best suppliers. #s part of the buyer

selection process, buying centers must decide ho" many suppliers to use. %n the past,

many companies preferred a large supplier base to ensure adeuate supplies and to obtain

price concessions. These companies "ould insist on annual negotiations for contract

rene"al and "ould often shift the amount of business they gave to each supplier from

year to year. %ncreasingly, ho"ever, companies are reducing the number of suppliers.

There is even a trend to"ard single sourcing, using one supplier. With single

sourcing there is only one supplier to handle and it is easier to control ne"sprint

inventories. *sing one source not only can translate into more consistent product

performance, but it also allo"s press rooms to configure themselves for one particular

kind of ne"sprint rather than changing presses for papers "ith different attributes. anycompanies, ho"ever, are still reluctant to use single sourcing. They fear that they may

become too dependent on the single supplier or that the single4source supplier may

become too comfortable in the relationship and lose its competitive edge. $ome marketers

have developed programs that address these concerns.

3/9 O'.(':R"uti)( Sp(*i#i*ati")

The buyer no" prepares an order4routine specification. %t includes the final order

"ith the chosen supplier or suppliers and lists items such as technical specifications,

uantity needed, e'pected time of delivery, return policies, and "arranties. %n the case of maintenance, repair, and operating items.

3/; P('#"'ma)*( R(<i(-

%n this stage, the buyer revie"s supplier performance. The buyer may contact users

and ask them to rate their satisfaction. The performance revie" may lead the buyer to

continue, modify, or drop the arrangement. The seller3s -ob is to monitor the same factors

used by the buyer to make sure that the seller is giving the e'pected satisfaction. We have

described the stages that typically "ould occur in a ne"4task buying situation. The

eightstage model provides a simple vie" of the business buying decision process. The

actual process is usually much more comple'.



%n the modified rebuy or straight rebuy situation, some of these stages "ould be

compressed or bypassed. ach organi(ation buys in its o"n "ay, and each buying

situation has uniue reuirements. 5ifferent buying center participants may be involved

at different stages of the process. #lthough certain buying process steps usually do occur,

buyers do not al"ays follo" them in the same order, and they may add other steps. /ften, buyers "ill repeat certain stages of the process.



4/ TASK FOUR

4/& T2( 5 L(<(!s "# p'".u*t i) Ma'+(ti),

# product is more than physical. # product is anything that can be offered to a

market for attention, acuisition, or use, or something that can satisfy a need or "ant.

Therefore, a product can be a physical good, a service, a retail store, a person, an

organisation, a place or even an idea. Products are the means to an end "herein the end is

the satisfaction of customer needs or "ants.

5istinguished three components8

Need8 a lack of a basic reuirement

Want8 a specific reuirement for products or services to match a need

5emand8 a set of "ants plus the desire and ability to pay for the e'change.

&ustomers "ill choose a product based on their perceived value of it. $atisfaction is

the degree to "hich the actual use of a product matches the perceived value at the time of

the purchase. # customer is satisfied only if the actual value is the same or e'ceeds the

perceived value.

4/$ D(#i)(. #i<( !(<(!s t" a p'".u*t=

LetJs take a product from consumer product organi(ation the e'ample of #stra to

e'plain these levels,



4/$/& C"'( B()(#it

The fundamental need or "ant that may be consumers satisfy by consuming the

product or service. %n case of #stra for diet

4/$/$ Basi* P'".u*t

# version of the product is containing only those attributes or characteristics

absolutely necessary for it to function. %n case of Hariety of #stra, looks and packaging of

the #stra, Cuality of #stra and $i(es of #stra etc.

4/$/3 E1p(*t(. P'".u*t

The set of attributes or characteristics are buyers normally e'pect and agree to "hen

they purchase a product. %n case of essential fats and vitamins # < 5 all need to be taken

up from the diet

4/$/4 Au,m()t(. P'".u*t

%nclusion of additional features, benefits, attributes or related services that serve to

differentiate the product from its competitors. %n case of before the #stra varieties sale

make as cool.

4/$/5 P"t()tia! P'".u*t

#ll the augmentations and transformations, a product that might undergo in the

future %n our #stra e'ample, the features such as fats. Hitamins and calcium for teeth

strengthen

Noted that, much competition takes place at the #ugmented Product level rather

than at the &ore Benefit level or, as Levitt put it8 3Ne" competition is not bet"een "hat

companies produce in their factories, but bet"een "hat they add to their factory output in

the form of packaging, services, advertising, customer advice, financing, delivery

arrangements, "arehousing, and other things that people value.3



C")*!usi")

TodayJs successful organisations have one thing in common that is strongly

customer focused and heavily committed to marketing "ith getting positioning their

Brands. These organisations share a passion for understanding customer needs develop

products that provide superior customer value. These organi(ations hold very strongmarketing mi' elements as prices, distribute, and promote them effectively in "ell4

defined target markets. %n addition, they motivate everyone in the organisation to build

strong relationships "ith customers based on creating customer value.



A))(1u'(



R(#('()*(s

2. G $ $ylvester >P'(!imi)a'y C('ti#i*at( i) Ma'+(ti), Stu.y Kit?,

$ri Lanka %nstitute of arketing

. Philip !otler KPrinciples of arketing 2th dition, 11>.

?. /fficial *nilever &ompany "ebsite 4 http://www.unilever.com.lk/

0. /fficial !alani &ables PL& "ebsite 4 http://www.kelanicables.com/

http://www.unilever.com.lk/

http://www.kelanicables.com/

http://www.unilever.com.lk/

http://www.kelanicables.com/

2012 Assignment

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