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Discuss the Henry Assael model on buying decision behavior ANS- Henry Assael has come up with an explanation to analyze why consumers buy the goods they buy. He explained the relationship between the level of involvement by the consumers in the purchase of goods and services and the level at which diverse goods or services differ from one another.
Significance differences between brands
high involvement Complex buying behavior
low involvement Variety Seeking Buying Behavior
Few differences between brands
Dissonance Reducing Buying Behavior
Habitual Buying Behavior
Complex buying behavior – Consumers are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky, and highly self-expressive. Typically the consumers don’t know much about the product category and have more to learn. Example: personal computer.
Dissonance-reducing – Sometimes, the consumer is highly involved in a purchase but sees little differences in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent, and risky.
Habitual buying behavior – Many products are bought under conditions flow consumer involvement and the absence of significant brand differences. Considering salt, consumers have little involvement in this product category. They go to the store and reach for a brand. If they keep reaching for the same brand, it is out of habit and not strong brand loyalty. Variety-seeking buying – Some buying situations are characterized by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Consumers do the brand switching for the sake of variety rather than dissatisfaction. Example: wafer potato chips.
B. Explain the five stages of Adoption Process.
In case the evaluation is unsatisfactory. or informal conversations) to the members of the social systems. Interest – When consumers develop an interest in the product or product category. The company Some company factors that affect the marketing decisions are: Culture and value system – Organisational culture can be viewed as the system of shared values and beliefs that shape a company’s behavioural norms. Awareness – During the first stage of adoption process. the product innovation is explained to the consumers. 2. new ideas.Ans. or new practice) is spread by communication (mass media. 4.Micro environment is the immediate environment in which marketers have to take decisions. Evaluation – The evaluation stage represents a kind of ‘mental trial’ of the product innovation. Diffusion is the process by which the acceptance of an innovation (a new product. Ans. a new service. Adoption – In this stage. they will actually try the product. Trial – In this stage. 1. The process of accepting new product ideas by individual customers is popularly known as ‘adoption process.The five stages of adoption process are:A large number of factors are examined to know the reaction of consumers regarding adoption of a new product. This environment identifies the way a company does business and against whom it stands in the market. Their experience with the product provides them with the critical information that they need to adopt or reject it. Only if the consumers’ evaluation of the innovation is satisfactory.4. This process gives information about the new product or service. The players of this environment are called actors as they have a direct bearing on the marketing decisions. The value system of the founders of the organisation has a lasting impact on it. the channels of communication. 3. the product is automatically rejected. The key elements of diffusion process include the degree of innovativeness of the product. Q. Describe the components of the micro environment of marketing. The value system not only . The spread of this innovation across the society is known as diffusion process. A value is an enduring preference as a mode of conduct or an end state. sales people. and the time required for innovation. they search for information about how the innovation can benefit them. 5. consumers decide to make full and regular use of the product. the social system. consumers use the product on a limited basis.
Structure is concerned with the hierarchical relationship and the relationship between the management of different functional areas like the structure of the top management and the pattern of shareholding. and syndicated and published research reports. . Suppliers -Increase in the price of raw materials will have a bang on effect on the marketing mix strategy of an organization. Today. recruitment and selection. trade publications. magazines. Intermediaries are independent business units and they carry the company’s products and services to the customers. selling agents. Failure to do so will result in a failed business strategy. This is the impact that the suppliers can have. As a result. Q. No customer means. Human resource – This concerns factors like manpower planning. Godrej as a brand is not growing as fast as its competitors. Prominent intermediaries include wholesalers. Closer relationship with suppliers is one way of ensuring competitive and quality products for an organization. and business policy. Organization’s survival depends on how they meet the needs and wants of the customers and provide them with maximum benefits. Once competition intensified. the company started losing market share.5 A. brokers. Management structure and nature – Structure is the manner in which the tasks and sub-tasks of the organization are related. Data are captured to monitor changes and trends related to marketing situation. though there is a growth in refrigerator industry. etc Competitors Success or failure of an offer largely depends on how competitors react to the company’s offer. Explain the types of Marketing Information systems Ans. Godrej was a successful refrigerator manufacturer. Mission and objectives – The mission and objectives of the company guide the priorities. compensation. no business. balance sheets of companies. the prices may be forced up.MIS supplies three types of information. directories. retailers. Customers Organizations exist because of customers. merchants. business philosophy. technical journals. direction of development. and appraisal intermediaries . which are: Monitoring information Recurrent information Customised information The Different types of marketing information in detail areMonitoring information – Monitoring information is the information obtained from scanning external sources which include newspapers. Some of these data can be purchased at a price from commercial sources such as market research agencies or from government sources. communication.
an organisation gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. monthly. The most evident internal record system is the purchase and payment cycle systems. and similar data on close competitors. analyse. and hardware integrated through the information technology platform into the sales management process of the organisation. and techniques with supporting software and hardware. the payment cycles followed by consumers. Customized information – Customized information is also called problem-related. systems. In MIS. and other relevant information having a direct impact on the marketing environment of the firm. systems. software. It can also provide information on customer awareness of company’s brands. recurrent information is the data that MIS supplies at a weekly. Marketing intelligence system – A marketing intelligence system is the system of collecting and collating data. which includes a coordinated collection of data. etc. It records the timing and size of orders placed by consumers. A MDSS is a coordinated collection of data. knowledge. tools. Analytical marketing systems – Analytical marketing systems are also known as Marketing Decision Support Systems (MDSS). government regulations. and techniques with supporting software. It also involves analysis of information. Marketing research systems – Marketing research systems are based on systems and processes that help marketing managers to design. and hardware by which an organisation gathers and interprets the relevant data and turns it into a basis for marketing action and tactics. B. the stock statements. . the trial balance. tools. quarterly. and the time taken to fulfill the orders in the shortest possible time. This system tries to capture relevant data from the external environment. Using this collection. which are made available regularly. which is developed in response to some specific requirements related to a marketing problem or any particular data requested by a manager. and report data and findings relevant to a specific marketing situation facing the company. Discuss the different components of MIS Internal record systems – Internal record systems are available within the company across various departments and provide relevant. collect.Recurrent information – Recurrent information is the information that is generated at regular intervals like monthly sales reports. routine information for making marketing decisions. advertising campaigns. It involves problem-solving technology consisting of people. It collects and manages data from the external environment about the competitors’ moves. or annual interval.
people. weight. constituents of a marketing mix namely product. direct selling. Some common methods include advertising.Q.) Promotion This includes the methods to communicate the features and benefits of the products or services to its target customers. Place This is another key marketing mix tool. acquisition. process. For example. online sources. price. place. the product or service is the most important element.6 Describe the factors to be considered while developing an Effective marketing mix. For example. according to this definition. places. price. products include physical products. A marketing mix can be referred to as a planned mix of the controllable elements of a product's marketing plan. toiletry marketers must ensure that their products are available at almost every nook and corner store. and ideas. use. . wholesalers. For example. Customers acquire products for a singular reason that they are perceived as the means to satisfy their needs and wants. or other measure of a product. etc. sales promotion. which impacts the volume of sales. Price directly influences the development of marketing strategy as it is a major factor that influences the assessment of value obtained by customers. packaging. which encompasses the various activities the company attempts to make the product available to the target customers. Amway distributes its products using direct distribution channel while HUL uses multi-channel distribution (through retailers. you buy a packet of chips which is net 10grams in weight for ` 10. organisations. It is a value that will purchase a specific quantity. and warranties that can be manipulated depending on what the target market wants. services. promotion (the traditional 4Ps). Products have various attributes such as quality. Place mix deals with the physical distribution of products at the right time and right place. Distribution channels may also be used in marketing strategy to differentiate a product from its competitors. while generating optimum income for the company is found. variety. and promotion.” In effect. place. brand. Price The second element is the price. a customer usually purchases toiletries from nearby retail stores. Price is the only marketing mix variable that can be altered quickly. Product In marketing mix. commonly termed as 4Ps: product. persons. design. These four elements are adjusted until the right combination that serves the needs of the customers. According to Philip Kotler. or consumption that might satisfy a need or want. So. services. this value ` 10 denotes the price of the product. and physical evidence (the additional 3Ps). “A product is anything that can be offered to a market for attention.
etc. sales promotions. public relations. sponsorships. For example. and direct marketing. .public relations. Toyota promotes its brands by advertising.