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1oplcs for Lhe day

W Consumer 8ehavlor
W 1ypes of lnfluencers
W Consumer 8ehavlor Model
W Consumer sychology
W MoLlvaLlon 1heorles
W Consumer 8uylng rocess(3sLage model)
W osLpurchase 8ehavlor
W 828 8uylng
rof Geeta Shett|
Consumer 8ehavlor
1he sLudy of how consumers selecL buy use and dlspose Lhe
producLs Lo saLlsfy Lhelr needs and wanLs ls deflned as Consumer
8ehavlor
Consumer 8ehavlor ls a very complex phenomenon and conLlnues Lo
be a blg enlgma Lo Lhe MarkeLers MarkeLers need Lo undersLand
Lhe varlous facLors lnfluenclng Lhe Consumer buylng process
MosL companles Lry Lo convlnce Lhe raLlonal
mlnd Powever Lhe deslre for a producL ls
creaLed ln Lhe emoLlonal mlnd
undersLandlng Lhe emoLlons allows a company
Lo deslgn mkLg sLraLegles LhaL Lrlgger Lhe
deslred emoLlons ln Lhelr cusLomers
1ypes of lnfluencers
W tra Iactors
CulLure subculLure soclal class are ma[or lnfluences on buylng behavlor
Mlddle class famlly upbrlnglng vs 8uslness famlly upbrlnglng
SubculLure lncludes naLlonallLles rellglons raclal groups eLc
Soclal class lncludes dlvlslons ln a socleLy based on varlables llke lncome
occupaLlon wealLh eLc
W Soc|a Iactors
lncludes Lhe members wlLh whom Lhe consumers lnLeracL regularly
rlmary groupsfrlends relaLlves famlly members colleagues eLc
Secondary groupsrellglous pollLlcal Lradeunlon eLc
AsplraLlonal groups ulssoclaLlve groups
W ersona Iactors
Age sLage ln Lhe llfe cycle CccupaLlon economlc sLaLus ersonallLy
LlfesLyle and values eLc
Consumer 8ehavlor Model
1he sLlmulusresponse model ls lmporLanL ln undersLandlng Lhe
Consumer behavlor
MarkeLer should evaluaLe Lhe consumer's mlnd Lo help hlm make Lhe
8u? uLClSlCn
MkLg sLlmull
u8CPASL
SCNS
uC nC1 8u?
roducLs
Servlces
rlce
ulsLrlbuLlon
AdverLlslng
Sales
romoLlon
Consumer sychology
Consumer
characLerlsLlcs
MoLlvaLlon 1heorles
Ire#s 1heory assumes LhaL a person's behavlor ls largely
unconsclous MarkeLer needs Lo derlve aL Lhe flnal facLors
from Lhe sLaLed ones
Masow#s 1heory explalns why people have cerLaln needs
aL a parLlcular sLage
nerzberg#s 1heorybased on a LwofacLor Lheory whlch
dlvldes Lhem lnLo SaLlsflers and ulssaLlsflers
Consumer sychology
W ercept|ona process by whlch we lnLerpreL
Lhe lnformaLlon lnpuLs Lo creaLe a meanlngful
plcLure
W earn|ng human behavlor changes as per our
pasL learnlng (experlence)
W Memory all our experlences are sLored ln Lhe
form of memory whlch lnLurn affecLs 8uylng
behavlor (ShorLLerm LongLerm memory)
8uylng rocess (3 sLep model)
osLpurchase 8ehavlor
W ostprchase sat|sfact|on
JhaL consumer's expecL from Lhe producL and whaL he geLs
Consumer ls elLher ulssaLlsfled/SaLlsfled/uellghLed
W ostprchase act|ons
SaLlsfled consumer buys and rebuys Lhe producL agaln
W ostprchase se |sposas
MarkeLer needs Lo closely waLch how Lhe consumer uses Lhe
producL so LhaL adequaLe sLocks can be kepL
JhaL a CusLomer buys
onsmerVae n|erarchy
ln a Consumer's purchase of a producL 3 dlfferenL levels need Lo
be caLered
W Core beneflL 8eneflL whlch Lhe cusLomer ls buylng
W 8aslc producLbeneflL has Lo be converLed lnLo a baslc producL
W LxpecLed producLaLLrlbuLes
condlLlons whlch a buyer wanLs
W AugmenLed producLprovldes
more Lhan expecLaLlons
W oLenLlal producLlncludes new
ways Lo saLlsfy cusLomers
oLenLlal
roducL
AugmenLed
roducL
LxpecLed
roducL
8aslc producL
Core beneflL
828 8uslness 8uylng
828 CusLomers
W uwyer and 1anner classlfles 828 cusLomers lnLo
W 1Companles
W lncludes AuLomoblle companles who buy gauges bearlngs nuLs 8olLs Lo puL
ln Lhelr cars and oLher Companles who purchase producLs for Lhelr own use
W 2CovernmenL agencles
W ln uS govL ls Lhe blggesL purchaser of producLs servlces spendlng more Lhan
$300 bllllon annually ln lndla lndlan 8allways lCl are Lhe largesL
purchasers
W 3lnsLlLuLlons
W 1hls lncludes Academlc lnsLlLuLes PosplLals nurslng homes PoLels CharlLable
organlsaLlons eLc
W 48esellers
W ConslsLs of Jholesalers 8rokers SLocklsLs appolnLed by Lhe Company
lranchlsee agenLs eLc
828 8uslness
MarkeLlng of an organlsaLlon Lo anoLher buslness unlL unllke Lo an
lndlvldual consumer proflLably ls called 8uslnessLo8uslness
(828) MarkeLlng
828 markeLlng ls malnly almed aL oLher 8uslness groups
lnsLlLuLlons and CovernmenL purchases

8uslness
lnsLlLuLlons
CovernmenL
8esellers
828 SecLor Consumer SecLor
W MosLly valuedrlven cusLomers
W locus ls on '8eneflLs'
W SegmenLaLlon based on lndusLry
W urchase may be for
CrowLh/ roducLlon/Lxpanslon /
/roflLablllLy
W number of buyers are few buL has
large volume sales
W ueclslon ls slow complex and
requlres approval by Senlors
W CosL or premlumdrlven
cusLomers
W locus ls on 'ComforLs'
W SegmenLaLlon ls based on
lndlvlduals
W urchase may be for uLlllLy/
ComforLs/ SLaLus symbol / Soclal
need/Llfe sLyle
W no of buyers are many buL per
LransacLlon ls less
W ueclslon ls fasL slmple and
lnfluenced by frlends peers
W relaLlves
828 SecLor Consumer SecLor
W urchaslng ls done professlonally
and more number of people
lnfluence Lhe buylng process
W More no of calls are requlred Lo
cllnch a deal
W 1ype of demand ls derlved
W uemand ls noL affecLed by prlce
W uemand ls geographlcally locaLed
W urchaslng ls done personally
as per cusLomer's cholce
preferences
W Sales happens dependlng on
Lhe cusLomer's urgency for Lhe
producL
W uemand ls more dlrecL
W uemand ls sLrongly affecLed by
prlce
W uemand ls more unlversal
828 SecLor Consumer SecLor
W uemand ls flucLuaLlng as Lhe
markeL ls very senslLlve Lo
Lechnologlcal change
W SLaLuLory approvals are a musL
W AfLer salesservlce lnfluences
Lhe declslon Lo purchase
W MkLg approach ls more
lndlvlduallsLlc
W rlclng ls worked separaLely for
each every cusLomer
W SLaLuLory approvals are a musL
W uemand ls sLable Lemporarlly as
Lhe markeL ls reasonably
senslLlve Lo Lechnologlcal change
W MalnLenance faclllLy ls noL
requlred
W MkLg approach ls massbased
W rlclng ls unlform and decldes
Lhe markeL share
W no such approvals are requlred
1ypes of 8uylng
W Stra|ght eby
ln buylng rouLlne or recurrlng lLem Lhe depL goes fro a sLralghL
rebuy by selecLlng a suppller from Lhe llsL of Lhe approved
vendors and Lhen placlng an order
urchase Managers allow lndlvdual employees Lo buy dlrecLly
from approved suppllers
MkLg communlcaLlon should reach all Lhe cusLomers
1ypes of 8uylng
W Stra|ght eby
ln buylng rouLlne or recurrlng lLem Lhe depL goes fro a sLralghL
rebuy by selecLlng a suppller from Lhe llsL of Lhe approved
vendors and Lhen placlng an order
urchase Managers allow lndlvdual employees Lo buy dlrecLly
from approved suppllers
MkLg communlcaLlon should reach all Lhe cusLomers
SLralghL 8ebuy
Marketer#s task epens on 'In# or 'Ct# spp|er
'In Spp|er"
W 8elnforce buyerseller relaLlonshlp
W MeeL buylng organlzaLlons's expecLaLlons
W 8e vlgllanL Lo changlng needs of Lhe buyer
'Ct Spp|er"
W Lmphaslse beneflLs ln breaklng Lhe rouLlne
W ersuade Lo reexamlne alLernaLlve soluLlons
W 8evlse Lhe llsL Lo lnclude Lhe new suppller
1ypes of 8uylng (conLd)
W Mo|f|e eby
1he buyers feel Lhey can geL more beneflLs by reevaluaLlng
alLernaLlves Pence Lhey seek addlLlonal lnformaLlon and
conslder oLher opLlons
Iactors for mo|f|e eby
ulspleased wlLh Lhe presenL suppller searchlng for quallLy
lmprovemenLs cosL reducLlons
Modlfled 8ebuy
S|mpe mo|f|e eby
1hls lnvolves a narrow seL of cholce alLernaLlves and
moderaLe lnformaLlon search and analysls
ompex mo|f|e eby
1hls lncludes a larger cholce of alLernaLlves 1he buyer
acLlvely searches for lnformn applles sophlsLlcaLed
analyLlcal Lechnlques Jell sulLed for a compeLlLlve
blddlng process Lnhances Lhe buyer's negoLlaLlng
sLrengLh (ex onllne reverse aucLlons)
1ypes of 8uylng (conLd)
W New y
1he producL or servlce ls purchased for Lhe flrsL Llme Plgher Lhe cosL
more lnformaLlon gaLherlng more parLlclpanLs and hence longer
Llme Lo Lake a declslon
8uyer makes mosL declslons ln a new buy Several sLages are lnvolved
llke AlL1A
new buy ls Lhe MarkeLer's greaLesL opporLunlLy and challenge
SysLems 8uylng
W Many buslness buyers buy a LoLal soluLlon Lo
Lhe varlous requlremenLs from one seller Such
a meLhod of purchaslng ls called SysLems
buylng
eg Jhen Lhere ls a blg [ob Lo be done Lhe Co
may glve lL Lo Lhe prlme conLracLor who ln
Lurn can Lhen glve lL Lo Lhe subconLracLors
8uylng CenLer
W ef|n|t|on
1hls conslsLs of lndlvlduals who parLlclpaLe ln Lhe purchase
declslon and share Lhe goals rlsks arlslng from a declslon
1he composlLlon of Lhe 8uylng cenLer evolves durlng Lhe
purchaslng process and varles from one purchaslng slLuaLlon Lo
anoLher and also from flrm Lo flrm
Slze of Lhe buylng cenLer may vary from more Lhan 4 and may go
upLo 20 for a slngle purchase
8uylng CenLer
W Members (IG AUI)
lnlLlaLors
users
lnfluencers
ueclders
Approvers
8uyers
CaLekeepers
1he buylng cenLer can Lhus be a very complex
phenomenon ln an organlsaLlon
8uylng CenLer lnfluence
W lndlvlduals noL organlsaLlons make buylng declslons
W Lach member has a unlque personallLy seL of learned
experlences a speclfled organlsaLlonal funcLlon and alms besL Lo
achleve boLh personal and organlsaLlonal goals
y|ng ec|s|ons are ths both at|ona mot|ona
8uylng rocess
W MarkeLdrlven buslness flrms conLlnuously sense and acL on Lrends
ln Lhelr markeLs 1he sLrlklng success ln an AuLo lndusLry depends
on Lhe close relaLlonshlp developed by Lhe sales force and
markeLlng Leam wlLh Lhe deslgn englneers and Lhe urchase
execuLlves
W undersLandlng Lhe dynamlcs of Lhe 8uylng behavlor ls crlLlcal
for ldenLlfylng proflLable markeL segmenLs locaLlng buylng
lnfluences and reachlng Lhe buyers efflclenLly effecLlvely Lo meeL
Lhelr needs
8uylng rocess SLages
W roblem 8ecognlLlon
W Ceneral descrlpLlon of Lhe need
W roducL speclflcaLlons
W Suppller search
W AcqulslLlon and Analysls of proposals
W Suppller selecLlon
W SelecLlon of order rouLlne
W erformance revlew
roblem 8ecognlLlon
W ldenLlfy Lhe problem faced by an employee whlch
can be meL by purchaslng a producL or a servlce
W roblem recognlLlon may happen elLher due Lo
an lnLernal sLlmulus or an exLernal sLlmulus
W eg roducLlon Manager undersLands LhaL a new
packaglng equlpmenL ls requlred Lo supporL a
new producL launch
need uescrlpLlon
W 1he buyer now deLermlnes Lhe producL's
general characLerlsLlcs quanLlLy requlred lor
complex lLems Lhe buyer collecLs oLher
lnformaLlon llke durablllLy prlce rellablllLy eLc
roducLlon people work wlLh Lhe urchase
Manager Lo llsL down Lhe characLerlsLlcs
requlred ln Lhe new packaglng sysLem
roducL speclflcaLlons
W 1he 8uyer Lhen prepares Lhe Lechnlcal
speclflcaLlons ln coordlnaLlon wlLh Lhe
englneers and Lhe users
An experlenced roducLlon Manager develops a
deLalled and a preclse descrlpLlon of Lhe
equlpmenL requlred
Suppller search
W 8ased on Lhe Lechnlcal speclflcaLlons recelved Lhe buyer
Lrles Lo ldenLlfy Lhe mosL approprlaLe suppllers Lhrough
Lrade dlrecLorles conLacLs exhlblLlons and lnLerneL
1he organlzaLlon lnvesLs more Llme and energy ln Lhe suppller search
when Lhe proposed producL has a sLrong bearlng on Lhe
organlzaLlon's performance
AcqulslLlon roposal analysls
W 1he buyer Lhen lnvlLes some selecLed suppllers Lo submlL
Lhelr proposals Pe Lhen sLudles Lhe varlous proposals
and evaluaLes Lhem crlLlcally
Jhen Lhe lnformaLlon needs of Lhe organlzaLlon are hlgh
Lhls sLep assumes a loL of lmporLance
Suppller selecLlon
W AfLer Lhe suppller ls selecLed he ls glven Lhe Jork order or
Lhe Jork permlL or Lhe urchase order conLalnlng all Lhe
8ules 8egulaLlons of Lhe Company 1he buyer may have a 1
Lo 1 negoLlaLlon wlLh Lhe Lwo flnallsLs selecLed and Lhe
suppller ls selecLed
1o ldenLlfy Lhe mosL aLLracLlve suppller Lhe buyer may use a
suppllerevaluaLlon model by raLlng hlm on 8epuLaLlon
roducL rellablllLy Servlce rellablllLy llexlblllLy rlce eLc
SelecLlon of order rouLlne
W AfLer Lhe suppller ls selecLed he ls glven Lhe Jork order or Lhe
Jork permlL or Lhe urchase order conLalnlng all Lhe 8ules
8egulaLlons of Lhe Company 1he buyer may have a 1 Lo 1
negoLlaLlon wlLh Lhe Lwo flnallsLs selecLed and Lhe suppller ls
selecLed
1o ldenLlfy Lhe mosL aLLracLlve suppller Lhe buyer may use a
suppllerevaluaLlon model by raLlng hlm on 8epuLaLlon roducL
rellablllLy Servlce rellablllLy llexlblllLy rlce eLc
erformance revlew
W lnfluences and reachlng Lhe buyers efflclenLly Lo meeL Lhelr needs