Consumer Business Marketing
description
Transcript of Consumer Business Marketing
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CONSUMER AND BUSINESS MARKETING
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Consumer MarketConsumer behavior?
The study of how individuals, groups, and organizations, select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
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Model of Consumer Behavior
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What Influences Consumer? A consumer’s buying behavior is influenced by cultural, social, and
personal factors + psychological factors
Cultural factors The broadest, deepest influence and fundamental determinant Culture, subculture, and social class Subcultures include nationalities, religions, racial groups, and
geographic regions multicultural marketing Social classes : Consumer are hierarchically ordered and members share
similar values, interests, and behavior. Social classes differ in brand, language and media preferences
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Social factors
Reference groups, family, and social roles and statuses affect buying behavior.
Marketers must determine how to reach and influence the group’s opinion leaders.
Family is the most important consumer-buying organization in society, and family members constitute the most influential primary reference group.
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Personal factors
Age and stage in the life cycle Occupation and economic circumstances Personality and self-concept Lifestyle and values.
Marketers need to search for relationships between their products and lifestyle groups.
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Psychological factorsSelective attention People notice stimuli whose deviations are large in relation to the normal
size of the stimuli. Marketers attempt to bypass selective attention filters. Consumer influenced by unexpected stimuli, such as sudden offers in the
mail, over the phone, or from a salesperson
Learning Marketers that they can build demand for a product Enter the market by appealing to the same drives that competitors use
and by providing similar cue configurations, because buyers are more likely to transfer loyalty to similar brand.
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Consumer Buying Process
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What could the manufacturer do in order to stimulate interest in the brand?
Redesign Alter belief about the brand Alter beliefs about competitors’ brands Alter the importance weights Attention to neglected attributes
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How consumer influences marketing decision?
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• Business marketing also referred to as “Industrial marketing” or “B2B marketing” or “Organizational marketing”.
• Business marketing is the marketing of products & services to business organizations.
• Business organizations include:Manufacturing companiesGovt. undertakingsPrivate sector organizationsEducational institutionsHospitalsDistributors / Dealers
What is Business Marketing?
Business organizations buy products & services to satisfy many objectives like production of other goods & services, making profits, reducing costs, & so on.
Consumer marketing is the marketing of products & services to individuals, families, & households. The consumers buy products & services for their own consumption.
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• There are fewer but larger buyers in a business market compared to a customer market.
• Suppliers and customers share a close and sometimes mutually beneficial relationship.
• Business purchasing follows a strict and professional procedure set up by the organization’s trained purchasing agents.
• The demand for business goods is derived from consumer demand and is inelastic and fluctuating.
What is Business Marketing?
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THE ANALYSIS - BENEFITS OF B2B
• BUSINESSES CAN BENEFIT FROM MASS PRODUCTION AND ADVERTISING TO GAIN A MORE PROPORTIONATE INCREASE IN MARKET SHARE WITH AN INCREASE IN SPENDING.
• TO OVERCOME HIGH BARRIERS ENTRY, A COMPANY MAY FROM A RELATIONSHIP WITH ANOTHER COMPANY THAT IS ALREADY IN THE INDUSTRY.
• TO BENEFIT FROM LOW COSTS OF REPRODUCING PRODUCTS OR INFORMATION, A COMPANY MAY PROVIDE THE SAME OFFERING TO MULTIPLE CLIENTS.
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THE ANALYSIS - RISK OF B2B• THE TREAT TO SPECIFIC INVESTMENT – EXPENDITURES TAILORED TO A
PARTICULAR COMPANY – COULD INCREASE.
• SENSITIVE INFORMATION ABOUT THE COMPANY MAY HAVE TO BE SHARED.
• THERE COULD BE DELAYS IN FUTURE CONTRACTS DUE TO DIFFICULTIES IN REALLOCATING RESOURCES, AND ISSUES WITH INTELLECTUAL PROPERTY RIGHTS.
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THE ANALYSIS - OPPORTUNITY OF B2B
• IT IS THE UNDER SUPPLY OR LOWERING OF STANDARDS RELATIVE TO TERMS IN A CONTRACTUAL AGREEMENT.
• IT IS MORE PROBABLE WHEN SUPPLIER PERFORMANCE IS NOT EASILY MONITORED.
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THE ANALYSIS - NEW TECHNOLOGIES APPROACH IN B2B
• BUSINESSES LAUNCH WEBINARS AND PODCASTS, ENGAGE IN SOCIAL MEDIA AND LEVERAGE EMAILS TO IMPROVE THEIR BUSINESS PERFORMANCE.
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RELATIONSHIP BETWEEN KEIRETSU (COLLABORATE) AND CHAEBOL (CLIQUE)• THE JAPANESE KEIRETSU AND KOREAN CHAEBOL PRACTICE SIGNIFICANT VERTICAL
INTEGRATION OF SUPPLIERS AND BUYERS.
• SUBCONTRACTORS ARE AIDED BY EXTENSIVE SUPPORT DURING THE PRODUCTION
PROCESS, WHEREAS THE MANUFACTURER BENEFITS FROM HIGHER QUALITY AND LOWER
CLASS.
• COMPANIES PRACTICE BUYING BY EXTENSION, WHERE CODEPENDENT COMPANIES
PURCHASE FROM THE SAME SUPPLIER.
• DUE TO LOSS OF INFLUENCE OF THE KEIRETSU MODEL OF LATE, COMPANIES ARE NOW
SEEKING NEW SUPPLIER RELATIONSHIP.
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RELATIONSHIP BETWEEN KEIRETSU AND CHAEBOL
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RELATIONSHIP BETWEEN KEIRETSU AND CHAEBOL
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B2B Marketing vs. Consumer MarketingAreas Industrial Markets Consumer Markets1. Market characteristics • Geographically
concentrated• Relatively fewer buyers
• Geographically distributed• Mass markets
2. Product characteristics
• Technical complexity• Customized
• Standardized
3. Service characteristics
• Service, timely delivery & availability is very important
• Service, timely delivery & availability is somewhat important
4. Buying behavior • Involvement of various functional areas in both buyer & supplier firms• Purchase decisions are mainly made on rational/performance basis•Technical expertise• Stable interpersonal relationship between buyers & sellers
• Involvement of family members
• Purchase decisions are mostly made on physiological / social / psychological needs• Less technical expertise• Non-personal relationship
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B2B Marketing vs. Consumer Marketing
Areas Industrial Markets Consumer Markets5. Channel characteristics
• More direct• Fewer intermediaries
• Indirect• Multiple layers of intermediaries
6. Promotional characteristics
• Emphasis on personal selling
• Emphasis on advertising
7. Price characteristics • Competitive bidding & negotiated prices• List prices for standard products
• List prices or maximum retail price (MRP)