NISHANT KUMAR SINGH MARKETING MANAGEMENT
KMBN105/2020-21
Introduction
In today's world of marketing, everywhere you go you are being
marketed to in one form or another. Marketing is with you each second
of your walking life. From morning to night you are exposed to
thousands of marketing messages every day. Marketing is something
that affects you even though you may not necessarily be conscious of
it.
Definition of Marketing
According to American Marketing Association (2004) - "Marketing
is an organizational function and set of processes for creating,
communicating and delivering value to customers and for managing
relationships in a way that benefits both the organization and the
stakeholder."
AMA (1960) - "Marketing is the performance of business activities
that direct the flow of goods and services from producer to consumer
or user."
According to Eldridge (1970) - "Marketing is the combination of
activities designed to produce profit through ascertaining, creating,
stimulating, and satisfying the needs and/or wants of a selected
segment of the market."
According to Kotler (2000) - "A societal process by which individuals
and groups obtain what they need and want through creating, offering,
and freely exchanging products and services of value with others."
Evolution of marketing
• Early humans had only basic requirements such as food and
shelter
• They themselves obtained them collecting, growing and
hunting. They lived under trees or in caves. Therefore they
were self- sufficient.
• Once the needs became more, the man could not obtain them
on his own.
• Then he had to exchange for what he has with others. E.g... A
farmer exchanged his rice with fisherman's fish.
• It was called the Barter System
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• However, Barter system was not efficient. There were many
problems with the barter system. E.g. Person could not easily
find another person who had his need and who wanted his
surplus.
• Then comes the introduction of medium of exchange called
money.
• The birth of selling goods and services started with the use of
money as a medium of exchange.
• People started producing more items than that they want and
sold them in the market for money and obtained their other
requirements from the money they received,
• That gave birth to markets. Markets are places where
customers and suppliers met. They were geographical places. It
was a pre-planned place at a pre-planned time to exchange
goods.
Market
• The excess items were sold in the market and markets became
very competitive
• Producers met the buyers directly at the market place.
• After some time the producers could not handle selling
effectively.
• There were problems of sharing time for production and selling
and many other practical problems.
• As a results specialist sellers were born. They are called the
middlemen.
• The focus shifted to sales, retaining customers, finding new
customers
• Selling could not be done well without really understanding the
needs and wants of customers
• Therefore customers became more important
• A customer oriented approach had to be used
NISHANT KUMAR SINGH MARKETING MANAGEMENT
• That paved the way to form businesses as marketing
organizations
Nature of Marketing
1. Marketing is an Economic Function
Marketing embraces all the business activities involved in getting
goods and services, from the hands of producers into the hands of final
consumers. The business steps through which goods progress on their
way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers from
seller to the purchaser or from producer to the end user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise,
institution, or organization interacts with the customers and
stakeholders with the objective to earn profit, satisfy customers, and
manage relationship. It is the performance of business activities that
direct the flow of goods and services from producer to consumer or
user.
4. Marketing is a Managerial function
According to managerial or systems approach - "Marketing is the
combination of activities designed to produce profit through
ascertaining, creating, stimulating, and satisfying the needs and/or
wants of a selected segment of the market."
According to this approach the emphasis is on how the individual
organization processes marketing and develops the strategic
dimensions of marketing activities.
5. Marketing is a social process
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Marketing is the delivery of a standard of living to society. According
to Cunningham and Cunningham (1981) societal marketing
performs three essential functions:-
1. Knowing and understanding the consumer's changing needs
and wants;
2. Efficiently and effectively managing the supply and demand of
products and services; and
3. Efficient provision of distribution and payment processing
systems.
6. Marketing is a philosophy based on consumer orientation and
satisfaction
7. Marketing had dual objectives - profit making and consumer
satisfaction
Scope of Marketing
1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants. Therefore study is
done to identify consumer needs and wants. These needs and wants
motivates consumer to purchase.
2. Study of Consumer behaviour
Marketers performs study of consumer behaviour. Analysis of buyer
behaviour helps marketer in market segmentation and targeting.
3. Production planning and development
Product planning and development starts with the generation of
product idea and ends with the product development and
commercialization. Product planning includes everything from
branding and packaging to product line expansion and contraction.
4. Pricing Policies
Marketer has to determine pricing policies for their products. Pricing
policies differs from product to product. It depends on the level of
competition, product life cycle, marketing goals and objectives, etc.
5. Distribution
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KMBN105/2020-21

& ANURAG MITTAL

Study of distribution channel is important in marketing. For maximum Of this analysis an effort is made to find out as to which product has
sales and profit goods are required to be distributed to the maximum the best opportunities in the market.
consumers at minimum cost.
6. Promotion
Promotion includes personal selling, sales promotion, and advertising.
Right promotion mix is crucial in accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer
satisfaction is the major objective of marketing.
8. Marketing Control
Marketing audit is done to control the marketing activities.

FUNCTIONS OF MARKETING
Marketing is related to the exchange of goods and services. Through
its medium the goods and services are brought to the place of
consumption. This satisfies the needs of the customers. The following
activities are undertaken in respect of the exchange of goods and
services:
2. Marketing Planning: In order to achieve the objectives of an
1. Gathering and Analyzing Market Information: organization with regard to its marketing, the marketer chalks out his
Gathering and analyzing market information is an important function marketing plan. For example, a company has a 25% market share of a
of marketing. Under it, an effort is made to understand the consumer particular product.
thoroughly in the following ways: The company wants to raise it to 40%. In order to achieve this
(a) What do the consumers want? objective the marketer has to prepare a plan in respect of the level of
production and promotion efforts. It will also be decided as to who
(b) In what quantity? will do what, when and how. To do this is known as marketing
(c) At what price? planning.
(d) When do they want (it)? 3. Product Designing and Development: Product designing plays an
important role in product selling. The company whose product is better
(e) What kind of advertisement do they like?
and attractively designed sells more than the product of a company
(f) Where do they want (it)? whose design happens to be weak and unattractive.
What kind of distribution system do they like? All the relevant
information about the consumer is collected and analyzed. On the
basis

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In this way, it can be said that the possession of a special design
affords a company to a competitive advantage. It is important to
remember that it is not sufficient to prepare a design in respect of a
product, but it is more important to develop it continuously.
4. Standardization and Grading: Standardization refers to
determining of standard regarding size, quality, design, weight, color,
raw material to be used, etc., in respect of a particular product. By
doing so, it is ascertained that the given product will have some
peculiarities.
This way, sale is made possible on the basis of samples. Mostly, it is
the practice that the traders look at the samples and place purchase
order for a large quantity of the product concerned. The basis of it is
that goods supplied conform to the same standard as shown in the
sample.
Products having the same characteristics (or standard) are placed in a
given category or grade. This placing is called grading. For example, a
company produces commodity – X, having three grades, namely A‘.
‗B‘ and ‗C‘, representing three levels of quality; best, medium and
ordinary respectively.
Customers who want best quality will be shown ‗A‘ grade product.
This way, the customer will have no doubt in his mind that a low grade
product has been palmed off to him. Grading, therefore, makes sale-
purchase easy. Grading process is mostly used in case of agricultural
products like food grains, cotton, tobacco, apples, mangoes, etc.
5. Packaging and Labeling: Packaging aims at avoiding breakage,
damage, destruction, etc., of the goods during transit and storage.
Packaging facilitates handling, lifting, conveying of the goods. Many a
time, customers demand goods in different quantities. It necessitates
special packaging. Packing material includes bottles, canister, plastic
bags, tin or wooden boxes, jute bags etc.
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Label is a slip which is found on the product itself or on the package
providing all the information regarding the product and its producer.
This can either be in the form of a cover or a seal.
For example, the name of the medicine on its bottle along with the
manufacturer‘s name, the formula used for making the medicine, date
of manufacturing, expiry date, batch no., price etc., are printed on the
slip thereby giving all the information regarding the medicine to the
consumer. The slip carrying all these is details called Label and the
process of preparing it as Labeling.
6. Branding: Every producer/seller wants that his product should have
special identity in the market. In order to realize his wish he has to
give a name to his product which has to be distinct from other
competitors.
Giving of distinct name to one‘s product is called branding. Thus, the
objective of branding is to show that the products of a given company
are different from that of the competitors, so that it has its own
identity.
For instance, if a company wants to popularize its commodity – X
under the name of ―777‖ (triple seven) then its brand will be called
―777‖. It is possible that another company is selling a similar
commodity under AAA (Triple ‗A‘) brand name.
Under these circumstances, both the companies will succeed in
establishing a distinct identity of their products in the market. When a
brand is not registered under the trade Mark Act, 1999, it becomes a
Trade Mark.
7. Customer Support Service: Customer is the king of market.
Therefore, it is one of the chief functions of marketer to offer every
possible help to the customers. A marketer offers primarily the
following services to the customers:
(I) After-sales-services
NISHANT KUMAR SINGH MARKETING MANAGEMENT
(ii) Handling customers‘ complaints
(iii) Technical services
(iv) Credit facilities
(v) Maintenance services
Helping the customer in this way offers him satisfaction and in today‘s
competitive age customer‘s satisfaction happens to be the top-most
priority. This encourages a customer‘s attachment to a particular
product and he starts buying that product time and again.
8. Pricing of Products: It is the most important function of a
marketing manager to fix price of a product. The price of a product is
affected by its cost, rate of profit, price of competing product, policy
of the government, etc. The price of a product should be fixed in a
manner that it should not appear to be too high and at the same time it
should earn enough profit for the organization.
9. Promotion: Promotion means informing the consumers about the
products of the company and encouraging them to buy these products.
There are four methods of promotion: (I) Advertising, (ii) Personal
selling, (iii) Sales promotion and (IV) Publicity. Every decision taken
by the marketer in this respect affects the sales. These decisions are
taken keeping in view the budget of the company.
10. Physical Distribution: Under this function of marketing the
decision about carrying things from the place of production to the
place of consumption is taken into account. To accomplish this task,
decision about four factors are taken. They are: (I) Transportation, (ii)
Inventory, (iii) Warehousing and (IV) Order Processing. Physical
distribution, by taking things, at the right place and at the right time
creates time and place utility.
11. Transportation: Production, sale and consumption-all the three
activities need not be at one place. Had it been so, transportation of
goods for physical distribution would have become irrelevant. But
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Generally it is not possible. Production is carried out at one place, sale
at another place and consumption at yet another place.
Transport facility is needed for the produced goods to reach the hands
of consumers. So the enterprise must have an easy access to means of
transportation.
Mostly we see on the road side‘s private vehicles belonging to Pepsi,
Coca Cola, LML, Britannia, etc. These private carriers are the living
examples of transportation function of marketing. Place utility is thus
created by transportation activity.
12. Storage or Warehousing: There is a time-lag between the
purchase or production of goods and their sale. It is very essential to
store the goods at a safe place during this time-interval. Godowns are
used for this purpose. Keeping of goods in godowns till the same are
sold is called storage.
For the marketing manager storage is an important function. Any
negligence on his part may damage the entire stock. Time utility is
thus created by storage activity.
WHAT IS MARKETED?
1) Goods like eggs, steel, cars (Maruti!!!! Wow)
2) Services like airlines, hotels, barbers
3) Experiences like Walt Disney world‘s magic kingdom, at
planet Hollywood
4) Events like Olympics, trade shows, sports events (T20 World
Cup).
5) Persons like celebrity marketing by making major film star as
brand ambassador (Amitabh Bachan, Cadbury‘s) etc.
6) Places like cities, states, nations to attract tourists, factories,
company headquarters, and new residents, like we use TAJ or
say Nainital
7) Properties like real state owners market properties or agent
NISHANT KUMAR SINGH MARKETING MANAGEMENT
markets securities (DLF,Unitech)
8) Organizations thru‘ Corporate identity ads like by using tag
line ‗Lets make things better‘, or like Richard Branson (virgin)
or Phil knight of Nike are some identity
9) Information like thru encyclopedias, CDs and visit the Internet
for information. This is information marketing
10) Ideas like the buyer of a drill are really buying a hole. Church
should market itself as a place of worship or a community
center. Eg. Bimtech as a place for breeding managers.
COMPANY ORIENTATION TOWARDS MARKET PLACE
(VARIOUS MARKETING ORIENTATIONS)
The Trade Era: Production consisted in handmade goods that were
limited and generally traded through exploration.
The Production Concept
The production concept, one of the oldest in business, holds that
consumers prefer products that are widely available and inexpensive.
Managers of production-oriented businesses concentrate on achieving
high production efficiency, low costs, and mass distribution. This
orientation makes sense in developing countries, where consumers are
more interested in obtaining the product than in its features. It is also
used when a company wants to expand the market. Texas Instruments
is a leading exponent of this concept. It concentrates on building
production volume and upgrading technology in order to bring costs
down, leading to lower prices and expansion of the market. This
orientation has also been a key strategy of many Japanese companies.
The Product Concept
Other businesses are guided by the product concept, which holds that
consumers favor those products that offer the most quality,
performance, or innovative features.
Managers in these organizations focus on making superior products
and improving
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Them over time, assuming that buyers can appraise quality and
performance.
Product-oriented companies often design their products with little or
no customer
input, trusting that their engineers can design exceptional products.
The Selling Concept
The selling concept, another common business orientation, holds that
consumers and businesses, if left alone, will ordinarily not buy enough
of the organization‘s products.
The organization must, therefore, undertake an aggressive selling and
promotion
effort. This concept assumes that consumers must be coaxed into
buying, so the company has a battery of selling and promotion tools to
stimulate buying.
The selling concept is practiced most aggressively with unsought
goods—goods
that buyers normally do not think of buying, such as insurance and
funeral plots. The selling concept is also practiced in the nonprofit area
by fund-raisers, college admissions offices, and political parties.
The Marketing Concept
The marketing concept, based on central tenets crystallized in the mid-
1950s, challenges the three business orientations we just discussed.18
The marketing concept holds that the key to achieving organizational
goals consists of the company being more effective than its
competitors in creating, delivering, and communicating customer
value to its chosen target markets.
Theodore Levitt of Harvard drew a perceptive contrast between the
selling and marketing concepts: ―Selling focuses on the needs of the
seller; marketing on the needs of the buyer. Selling is preoccupied with
the seller‘s need to convert his product into cash; marketing with the
idea of satisfying the needs of the customer by means of the product
and the whole cluster of things associated with creating, delivering and
finally consuming it.
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The marketing concept rests on four pillars: target market, customer Performance marketing – Driving the sales and revenue growth of an
needs, integrated marketing, and profitability. The selling concept organization holistically by reducing costs and increasing sales.
takes an inside-out perspective. It starts with the factory, focuses on Integrated marketing – Products, services and marketing should
existing products, and calls for heavy selling and promoting to produce work hand in hand towards to growth of the organization.
profitable sales. The marketing concept takes an outside-in Thus Holistic marketing is a concept which is organization wide and
perspective. It starts with a well-defined market, focuses on customer helps the growth of the organization with the right marketing of the
needs, coordinates activities that affect customers, and produces profits product. With the rise in competition and the limits placed on
by satisfying customers. customers with finite financial resources, decisions will be scarce and
as an organization we have to implement holistic marketing so that
HOLISTIC MARKETING CONCEPTS decisions are made by customers in our favor.
Today, customer mindset is changing. Wealth is becoming lesser and
debt is high. Thus customer purchases are being made after lots of
thinking. Customers search offline as well as online for the right
product and have good knowledge of the product before they purchase.
It is likely that the customer has already made a purchase decision
even before he enters the showroom. Thus holistic marketing concept
is needed at this hour to ensure that the customer chooses your product
over everyone else.
A key driver of Holistic marketing is marketing communications. The
job of marketing communications is to send the right message to the
target group. By approaching various customer contact points, a
uniform message can be sent to the customer. This consistency is
likely to raise confidence in the customer for your company thereby
raising the brand image.
Samsung is an example of Holistic marketing where the products are
developed keeping the customer in mind, the showrooms are branded SOCIETAL MARKETING CONCEPT: The Societal Marketing
in the proper manner, the customer service is polite and the service is Concept holds that the Organizations task is to determine the needs,
fast. Thus Samsung is an excellent example of Holistic marketing. wants and interests of target markets and to deliver the desired
Some key concepts which are important in Holistic marketing are satisfaction more effectively and efficiently than competitors in a
internal marketing – Marketing between all the departments in an way that preserves and enhances the consumers and the society‘s
organization wellbeing.
Relationship marketing – Building a better relationship with your It calls for social and Ethical considerations in marketing. They must
customers, internal as well as end customers is beneficial for holistic balance the conflicting criteria of Company profits, consumer want
satisfaction and Public Interest. In an age of environmental
marketing.
deterioration, resource shortage, explosive population growth, world

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Hunger and poverty and lack of Social Services Marketers needs to be
sensitive on these issues
Cause-Related Marketing: Activity by which a company with an
image, product or service to market builds a relationship/partnership
with cause/causes for mutual benefit. This serves an opportunity for
Corporate Reputation, raise Brand Awareness, increase Customer
Loyalty, Press coverage and Build Sales. DOCC….
Core Concept of Marketing
Target Markets and Segmentation
A marketer can rarely satisfy everyone in a market. Not everyone likes
the same soft drink, automobile, college, and movie. Therefore,
marketers start with market segmentation. They identify and profile
distinct groups of buyers who might prefer or require
Varying products and marketing mixes. Market segments can be
identified by examining demographic, psychographic, and behavioral
differences among buyers. The firm
Then decides which segments present the greatest opportunity—those
whose needs
The firm can meet in a superior fashion.
Marketers and Prospects
Another core concept is the distinction between marketers and
prospects. A marketer is someone who is seeking a response (attention,
a purchase, a vote, a donation) from another party, called the prospect.
If two parties are seeking to sell something to each other, both are
marketers.
Needs, Wants, and Demands
The successful marketer will try to understand the target market‘s
needs, wants, and demands. Needs describe basic human requirements
such as food, air, water, clothing, and shelter. People also have strong
needs for recreation, education, and entertainment. These needs
become wants when they are directed to specific objects that might
satisfy the need. An American needs food but wants a hamburger,
French fries, and a soft drink. A person in Mauritius needs food but
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Wants a mango, rice, lentils, and beans. Clearly, wants are shaped by
one‘s society.
Demands are wants for specific products backed by an ability
to pay. Many people want a Mercedes; only a few are able and willing
to buy one. Companies must measure not only how many people want
their product, but also how many would actually be willing and able to
buy it.
However, marketers do not create needs: Needs preexist marketers.
Marketers, along with other societal influences, influence wants.
Marketers might promote the idea that a Mercedes would satisfy a
person‘s need for social status.
They do not, however, create the need for social status.
Product or Offering
People satisfy their needs and wants with products. A product is any
offering that can satisfy a need or want, such as one of the 10 basic
offerings of goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas.
A brand is an offering from a known source. A brand name
such as McDonald‘s carries many associations in the minds of people:
hamburgers, fun, children, fast food, and golden arches. These
associations make up the brand image. All companies strive to build a
strong, favorable brand image.
Value and Satisfaction
In terms of marketing, the product or offering will be successful if it
delivers value and satisfaction to the target buyer. The buyer chooses
between different offerings on the basis of which is perceived to
deliver the most value. We define value as a ratio between what the
customer gets and what he gives. The customer gets benefits and
assumes costs, as shown in this equation:
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Exchange and Transactions
Exchange, the core of marketing, involves obtaining a desired product
from someone
By offering something in return. For exchange potential to exist, five
conditions must
be satisfied:
1. There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the
other party.
Relationships and Networks
Transaction marketing is part of a larger idea called relationship
marketing.
Relationship marketing aims to build long-term mutually satisfying
relations with key parties— customers, suppliers, distributors—in
order to earn and retain their long-term preference and business.10
Effective marketers accomplish this by promising and delivering high-
quality products and services at fair prices to the other parties over
time. Relationship marketing builds strong economic, technical, and
social ties among the parties. It cuts down on transaction costs and
time. In the most successful cases, transactions move from being
negotiated each time to being a matter of routine.
Marketing Channels
To reach a target market, the marketer uses three kinds of marketing
channels.
Communication channels deliver messages to and receive messages
from target buyers. They include newspapers, magazines, radio,
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television, mail, telephone, billboards, posters, fliers, CDs, audiotapes,
and the Internet. Beyond these, communications are conveyed by
facial expressions and clothing, the look of retail stores, and many
other media. Marketers are increasingly adding dialogue channels (e-
mail and toll-free numbers) to counterbalance the more normal
monologue channels (such as ads).
The marketer uses distribution channels to display or deliver
the physical product or service(s) to the buyer or user. There are
physical distribution channels and service distribution channels, which
include warehouses, transportation vehicles, and various trade
channels such as distributors, wholesalers, and retailers. The marketer
also uses selling channels to effect transactions with potential buyers.
Selling channels include not only the distributors and retailers but also
the banks and insurance companies
That facilitates transactions. Marketers clearly face a design problem
in choosing the best mix of communication, distribution, and selling
channels for their offerings.
Supply Chain
Whereas marketing channels connect the marketer to the target buyers,
the supply chain describes a longer channel stretching from raw
materials to components to final products that are carried to final
buyers. For example, the supply chain for women‘s purses starts with
hides, tanning operations, cutting operations, manufacturing, and the
marketing channels that bring products to customers. This supply
chain represents a value delivery system. Each company captures only
a certain percentage of the total value generated by the supply chain.
When a company acquires competitors or moves upstream or
downstream, its aim is to capture a higher percentage of supply chain
value.
Competition
Competition, a critical factor in marketing management, includes all of
the actual and potential rival offerings and substitutes that a buyer
might consider. Suppose an automobile company is planning to buy
steel for its cars. The car manufacturer can buy from U.S. Steel or
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other U.S. or foreign integrated steel mills; can go to a mini mill such
as Nucor to buy steel at a cost savings; can buy aluminum for certain
parts of the car to lighten the car‘s weight; or can buy some engineered
plastics parts instead of steel.
Marketing Mix
Marketers use numerous tools to elicit the desired responses from their
target markets. These tools constitute a marketing mix: Marketing
mix is the set of marketing tools that the firm uses to pursue its
marketing objectives in the target market.
McCarthy classified these tools into four broad groups that he
called the four Ps of marketing: product, price, place, and promotion

Customer Value: Marketing involves satisfying customers‘ needs and

wants at a profit while being socially responsible. In a
hypercompetitive economy with increasingly rational buyers faced
with abundant choices, a company can win only by fine-tuning the
value delivery process and choosing, providing, and communicating
superior value.

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Value delivery Process: The traditional view of marketing is that the
firm makes something and then sells it; however this traditional view
of the business process will not work in economies where people face
abundant choices. Here the ‗mass market is actually splintering into
numerous micro-markets, each with its own wants, perceptions,
preferences and buying criteria.
This realization has put the Marketing at the beginning of the
planning. Instead of emphasizing making and selling, companies now
see them as part of a value delivery process.
The first phase, choosing the value, represents the „homework‟
marketing must do before any product exists. The formula STP is the
essence of strategic marketing.
The second phase, is Providing the value. Marketing must
determine specific product features, prices, and distribution.
The task in the third phase is communicating the value by utilizing the
sales force, sales promotion, advertising, and other communication
tools to announce and promote the product.
Each of these value phases has cost implications and this value
delivery process begins before there is a product and continues while it
is being developed and after it becomes available.
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The Value Chain: - Michel Porter of Harvard has proposed the Value
chain as a tool for identifying ways to create more customer value.
According to this model, every firm is a synthesis of activities
performed to design, produce, and market, deliver, and support its
product. The value chain identifies nine strategically relevant
activities – five primary and four support activities – that create value
and cost in a specific business.
The firm‘s task is to examine its costs and performance in each value-
creating activity and to look for ways to improve it. Managers should
estimate their competitors‘ costs and performances as benchmarks
against which to compare their own costs and performance.
The firm‘s success not only depends on how well each
department performs its work, but also on how well the company
coordinates departmental activities to conduct core business processes.
These include:-
1. The Market-sensing process: - All the activities in gathering
market intelligence, disseminating it within the organization,
and acting on the information.
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2. The New-offering realization process: - All the activities in
researching, developing, and launching new high-quality
offerings quickly and within budget.
3. The Consumer acquisition process: - All the activities in
defining target markets and prospecting for new customers.
4. The Customer relationship management process: - All the
activities in building deeper understanding, relationships, and
offerings to individual customers.
5. The Fulfillment management process: - All the activities in
receiving and approving orders, shipping the goods on time,
and collecting payment.
Strong companies are reengineering their work flows and building
cross-functional teams to be responsible for each process. Ex: - At
Xerox, a Customer Operations Group links sales, shipping,
installation, service and billing so these activities flow smoothly into
one another.
To be successful, a firm also needs to look for competitive advantages
beyond its own operations, into the value chain of suppliers,
distributors, and customers. Many companies today have partnered
with specific suppliers and distributors to create a superior Value
delivery network, also called Supply chain.
Marketing Challenges in Globalized economic Scenario
1. Internal coordination of marketing activities
“The global marketing challenge today is a challenge of execution.”
Doug West, Global marketing Director, ex Rentokil-Initial
The bigger the brand, the more links in the chain. Organizational HQs
have historically struggled with rolling out coordinated marketing
campaigns across multiple territories. Today we have vastly improved
systems and communications, but also higher expectations for
relevant, localized execution. How best to achieve maximum impact?
Internal coordination of complex campaigns across business units
remains a key challenge on the desk for global marketers.
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“People tend to be focused on their own regions first and do not
always understand the global context.” Grant Westbrook, Global
Director of Marketing, Mintel Group Ltd
Many worldwide campaign implementation models include an element
of ‗adopt and adapt‘; but there is some debate about how best to
achieve the best results.
2. How to reach customers in a meaningful way
That knockout creative concept that ticks all the boxes in one territory
may fall flat in another for any number of reasons. Adapting an idea to
suit different cultures and outlooks — while remaining true to the key
messages behind the campaign — remains a major challenge for the
global brands we spoke to.
These creative, intellectual and emotional elements safely across
territories are one mighty task. But figuring out digital media on a
global scale — with all the technical, media and channel options
available — makes the picture even more complex.
Our respondents see driving local consumer engagement at the highest
possible level is an ongoing work in progress. Not surprising when you
consider the differing levels of marketing maturity and digital
understanding, legal and regulatory issues and cultural subtleties
across the globe.
For a more in-depth report on our research with big brand global
marketing directors, download the full report.
3. How to measure and report, learn and improve
The marketers we interviewed (including industry award-winners) all
reached the ‗top of the tree‘ by delivering consistent return on
investment (ROI). As they look across the global brands and properties
they now manage, measuring and reporting on ROI takes on a new
complexity and some very significant budgets are at stake. Our
respondents haven‘t taken their foot off the pedal in the desire to
provide transparent reporting. It‘s just that the task is bigger than ever.
"The biggest challenge with any global marketing role is ROI. It‟s
more important than ever to show the value in what you do.” John
Bernard, multi award-winning Global Marketing Director, Firefox OS
NISHANT KUMAR SINGH MARKETING MANAGEMENT
It‘s clear that working out rock-solid objectives with associated key
performance indicators (KPI) at the outset is a ‗must-have‘ for
balanced reporting. Yet, at the same time, global marketers have to be
able to ‗flex‘ the interpretation of data coming from several different
environments to make it meaningful and digestible. Delivering
consistent measurement across a multitude of channels and
geographies remains a challenge, particularly where boards demand
short-term results.
4. How to handle the creative development process
A key theme emerging from our research is the on-going hunt for
global campaign consistency matched by seamless local relevance.
There are differing schools of thought on how to achieve this; but the
mantra of ‗act global think local‘ remains a central tenet for global
marketing directors.
Localization of the big idea for different territories is the default for all
global brand guardians, but the methodology for doing so is somewhat
polarized. Whatever route people are taking, it‘s clear that localization
and a focus on smart implementation are firmly on the agenda when it
comes to rolling out global creative that resonates wherever it lands.
It adds up to a complex picture but one in which the best managers
find systems and partners to manage creative development for a wide
range of implementations.
5. Understanding customer wants and needs across different
segments
The need to align campaigns to differing cultural and social
sensitivities is well-established. It‘s just part of the jigsaw our
marketers need to piece together. But targeting messages on a global
scale also requires a deep understanding of how industries, geography
and demographics will affect messaging.
Brand affinity and buying preferences are affected further by the
relative strength of country economies — yet another layer of
complexity.
“The economic picture of different countries has to be factored in to
campaigns.” Cat all port, Head of Marketing Services, Rentokil Initial.
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Finally, global marketing directors must take into account the relative
growth positions and potentials for multiple markets.
6. Digital, social and the new marketing
How to integrate social into a wider campaign remains a focus for
many global marketers. Reliable reporting about the impact of social
on awareness and sales remains elusive despite the deluge of data
available. Such reporting is sometimes hard to align with the more
traditional ROI markers from advertising or direct marketing.
“Digital media is forcing campaigns to be much more engaging. The
new media is designed to allow people to talk back.” Ronnie Beltran,
Group Brand Strategist, Red Fuse Communications
Marketers understand the value of social but it seems its unpredictable
nature is harder to control.
7. The role of technology in campaign creation and
implementation
There‘s a risk of letting technology lead the way, while it should
merely be an enabler of creative ideas, following a strategic and
operational vision.
Digital Asset Management (DAM) remains a tactical challenge.
Brands are striving to maintain a centralized repository of marketing
assets. It‘s also important to know what assets are being used, what are
needed, when rights expire and so on.
NISHANT KUMAR SINGH MARKETING MANAGEMENT
Buying Motives: Buying motive is the urge or motive to satisfy a desire or
need that makes people buy goods or services. Behind every purchase there
is a buying motive.
It refers to the thoughts, feelings, emotions and instincts, which arouse in
the buyers a desire to buy an article. A buyer does not buy because s/he has
been persuaded by the salesman, but s/he buys for the aroused desire in him
or her. Motives should be distinguished from instincts.
A motive is simply a reason for carrying out a particular behaviour and
not an automatic response to a stimulus, whereas instincts are pre-
programmed responses, which are inborn in the individual and
involuntary. Thus hunger is an instinct whereas desire to purchase
pizza is a buying motive. According to Prof. D. J. Duncan, ―Buying
Motives are those influences or considerations which provide the
impulse to buy, induce action and determine choice in the purchase of
goods and services.‖ Buying motives are can be divided by the
following way:
Product Buying Motives:
Product buying motives refer to those influences and reasons, which
prompt (i.e. induce) a buyer to choose a particular product in
preference to other products. They include the physical attraction of
the product (i.e. the design, shape, dimension, size, color, package,
performance, price etc. of the product) or the psychological attraction
of the product (i.e. the enhancement of the social prestige or status of
the purchaser through its possession), desire to remove or reduce the
danger or damage to life or body of the possessor, etc. In short, they
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refer to all those characteristics of a product, which induce a
buyer to buy it in preference to other products.
Product buying motives may be sub-divided into two groups, viz., (1)
emotional product buying motives and (2) rational product buying
motives.
A. Emotional Product Buying Motives:
When a buyer decides to purchase a product without thinking over the
matter logically and carefully (i.e., without much reasoning), she is
said to have been influenced by emotional product buying motives.
Emotional product buying motives include the following:
1. Pride or Prestige: Pride is the most common and strongest
emotional buying motive. Many buyers are proud of possessing some
product (i.e., they feel that the possession of the product increases their
social prestige or status). In fact, many products are sold by the sellers
by appealing to the pride prestige of the buyers. For instance, diamond
merchants sell their products by suggesting to the buyers that the
possession of diamonds increases their prestige or social status.
2. Emulation or Imitation: Emulation, i.e., the desire to imitate
others, is one of the important emotional buying motives. For instance,
a housewife may like to have a silk sari for the simple reason that all
the neighboring housewives have silk saries.
3. Affection: Affection or love for others is one of the stronger
emotional buying motives influencing the purchasing decisions of the
buyers. Many goods are purchased by the buyers because of their
affection or love for others. For instance, a husband may buy a costly
silk sari for his wife or a father buy a costly watch for his son or
daughter out of his affection and love.
4. Comfort or desire for comfort: Desire for comfort (i.e.,
comfortable living) is one of the important emotional buying motives.
In fact, many products are bought comfort. For instance, fans,
refrigerators, washing machines, cushion beds, etc. is bought by
people because of their desire for comfort.
5. Sex appeal or sexual attractions: Sex appeal is one of the
important emotional buying motives of the buyers. Buyers buy and use
certain things, as they want to be attractive to the members of the
NISHANT KUMAR SINGH MARKETING MANAGEMENT
Opposite gender. Men and women buy cosmetics, costly dresses, etc.,
because of this emotional motive, i.e., sex appeal.
6. Ambition: Ambition is one of the emotional buying motives.
Ambition refers to the desire to achieve a definite goal. It is because of
this buying motive that, sometimes, customers buy certain things. For
instance, it is the ambition that makes many people, who do not have
the facilities to pursue their college education through regular colleges,
pursue their education through correspondence courses.
7. Desire for distinctiveness or individuality: Desire for
distinctiveness, i.e., desire to be distinct from others, is one of the
important emotional buying motives. Sometimes, customers buy
certain things, because they want to be in possession of things, which
are not possessed by others. Purchasing and wearing a particular type
of dress by some people is because of their desire for distinctiveness or
individuality.
8. Desire for recreation or pleasure: Desire for recreation or
pleasure is also one of the emotional buying motives. For instance,
radios, musical instruments, etc. are bought by people because of their
desire for recreation or pleasure.
9. Hunger and thirst: Hunger and thirst are also one of the important
emotional buying motives. Foodstuffs, drinks, etc. are bought by the
people because of this motive.
10. Habit: Habit is one of the emotional considerations influencing
the purchasing decision of the customers. Many customers buy a
particular thing because of habit, (i.e. because they are used to the
consumption of the product). For instance, many people purchase
cigarettes, liquors, etc. because of sheer habit.
B. Rational Product Buying Motives:
When a buyer decides to buy a certain thing after careful consideration
(i.e. after thinking over the matter consciously and logically), s/he is
said to have been influenced by rational product buying motives.
Rational product buying motives include the following:
1. Safety or Security: Desire for safety or security is an important
rational buying motive influencing many purchases. For instance, iron
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Safes or safety lockers are bought by the people because they want to
safeguard their cash, jewelries etc., against theft. Similarly, vitamin
tablets, tonics, medicines, etc., are bought by the people because of
this motive, i.e. they want to safeguard their health and protect
themselves against diseases.
2. Economy: Economy, i.e. saving in operating costs, is one of the
important rational buying motives. For instance, Hero Honda bikes are
preferred by the people because of the economy or saving in the
operating cost, i.e. petrol costs.
3. Relatively low price: Relatively low price is one of the rational
buying motives. Most of the buyers compare the prices of competing
products and buy things, which are relatively cheaper.
4. Suitability: Suitability of the products for the needs is one of the
rational buying motives. Intelligent buyers consider the suitability of
the products before buying them. For instance, a buyer, who has a
small dining room, naturally, goes in for a small dining table that is
suitable, i.e. that fits in well in the small dining room.
5. Utility or versatility: Versatility or the utility of a product refers to
that quality of the product, which makes it suitable for a variety of
uses. Utility of the product is one of the important rational buying
motives. People, often, purchase things that have utility, i.e. that can
be put to varied uses.
6. Durability of the product: Durability of the product is one of the
most important rational buying motives. Many products are bought by
the people only on the basis of their durability. For instance, buyers of
wooden furniture go in for teak or rosewood table, though they are
costlier, as they are more durable than ordinary wooden furniture.
7. Convenience of the product: The convenience of the product (i.e.
the convenience the product offers to the buyers) is one of the
important rational product buying motives. Many products are bought
by the people because they are more convenient to them. For instance,
automatic watches, gas stoves, etc., are bought by the people because
of the convenience provided by them.
NISHANT KUMAR SINGH MARKETING MANAGEMENT
Patronage Buying Motives: Patronage buying motives refer to those
considerations or reasons, which prompt a buyer to buy the product
wanted by him from a particular shop in preference to other shops. In
other words, they are those considerations or reasons, which make a
buyer, patronize a particular shop in preference to other shops while
buying a product. Patronage buying motives also may be sub-divided
into two group‘s viz. a) Emotional patronage buying motives and b)
Rational patronage buying motives.
A. Emotional Patronage Buying Motives: When a buyer patronizes a
shop (i.e. purchases the things required by him from a particular shop)
without applying his mind or without reasoning, he is said to have been
influenced by emotional patronage buying motives. Emotional patronage
buying motives include the following:
1. Appearance of the shop: Appearance of the shop is one of the
important emotional patronage buying motives. Some people make
their purchases from a particular shop because of good or attractive
appearance of the shop,
2. Display of goods in the shop: Attractive display of goods in the
shop also makes the buyers patronize a particular shop.
3. Recommendation of others: Recommendation of others also
constitutes one of the important emotional patronage buying motives.
Some people purchase their requirements from a particular shop
because that shop has been recommended to them by others, i.e., by
their friends and relatives.
4. Imitation: Imitation also is one of the emotional patronage buying
motives influencing the purchases of buyers. Some people make their
purchases from a particular shop just because other people make their
purchases from that shop.
5. Prestige: Prestige is one of the emotional patronage buying motives
of the buyers. For instance, some people consider it a prestige to take
coffee from a five-star hotel.
6. Habit: Habit is also one of the important emotional patronage
buying motives. Some people make their purchases from a particular
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Shop for the simple reason that they have been habitually making their
purchases from that shop.
B. Rational Patronage Buying Motives:
When a buyer patronizes a shop after careful consideration (i.e. after
much logical reasoning and careful thinking) he is said to have been
influenced by rational patronage buying motives. Rational patronage
buying motives include the following:
1. Convenience: Convenient location proximity of a shop is one of the
considerations influencing the purchases of many buyers from a
particular shop. Many buyers, usually, buy their requirements from a
near-by shop, as it is convenient to them to make their purchases.
Similarly, convenient working hours of the shop also influence the
purchases of good many buyers. For instance, if a shop works for a
longer period of time every day and even on Sundays, it will be very
convenient to the buyers. As such, many buyers may make their
purchases from such a shop.
2. Low price charged by the shop: Price charged by the shop also
influences the buyers to patronize a particular shop. If the price
charged by a shop for a particular product is relatively cheaper,
naturally, many people will make their purchases from that shop.
3. Credit facilities offered: The credit facilities offered by a store also
influence the buying of some people from a particular shop. People
who do not have enough money to make cash purchases every time
prefer to make their purchases from a shop which offers credit
facilities.
4. Services offered: The various sales and after-sale services, such as
acceptance of orders through phone, home delivery of goods, repair
service, etc., offered by a shop also induce the buyers to buy their
requirements from that shop. Rational buyers are, often, influenced by
the various services or facilities offered by the shop.
5. Efficiency of salesmen: The efficiency of the salesmen employed
by a shop also influences the people in patronizing a particular shop. If
the employees are efficient and are capable of helping the buyers in
making their purchases, people naturally would flock to such a shop.
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6. Wide choice: Wide choice of goods offered by a shop is one of the

rational considerations making the buyers patronize a particular shop.
People generally prefer to make their purchases from a shop, which
offers wide choice (i.e. wide varieties of goods).
7. Treatment: The treatment meted out by a shop to the customers is
one of the rational considerations influencing the buyers to patronize a
particular shop. Usually, people would like to purchase their
requirements from a shop where they get courteous treatment.
8. Reputation of the shop: Reputation of the shop for honest dealings
is also one of the rational patronage buying motives. Usually, people
would like to make their purchases from a store having reputation for
fair dealings.
Factors Influencing Consumer Buying Behaviour: The consumer
behaviour or buyer behaviour is influenced by several factors or
forces. They are: 1. Internal or Psychological factors 2. Social factors
3. Cultural factors 4. Economic factors 5. Personal factors.
FACTORS AFFECTING CONSUMER BEHAVIOR
Consumer behavior refers to the selection, purchase and
consumption of goods and services for the satisfaction of their wants.
There are different processes involved in the consumer behavior.
Initially the consumer tries to find what commodities he would like
to consume, then he selects only those commodities that promise
greater utility. After selecting the commodities, the consumer makes
an estimate of the available money which he can spend. Lastly, the
consumer analyzes the prevailing prices of commodities and takes
the decision about the commodities he should consume. Meanwhile,
there are various other factors influencing the purchases of consumer
such as social, cultural, personal and psychological. The explanation
of these factors is given below.
1. Cultural Factors Consumer behavior is deeply influenced by cultural
factors such as: buyer culture, subculture, and social class. Culture
Basically, culture is the part of every society and is the important cause of
person wants and behavior
. The influence of culture on buying behavior varies from country to
country therefore marketers have to be very careful in analyzing the culture
of different groups, regions or even countries.
17
Subculture Each culture contains different subcultures such as
religions, nationalities, geographic regions, racial groups etc.
. Marketers can use these groups by segmenting the market into
various small portions. For example marketers can design products
according to the needs of a particular geographic group.
Social Class
Every society possesses some form of social class which is
important to the marketers because the buying behavior of people
in a given social class is similar.
In this way marketing activities could be tailored according to
different social classes. Here we should note that social class is not
only determined by income but there are various other factors as
well such as: wealth, education, occupation etc.
2. Social Factors Social factors also impact the buying
behavior of consumers. The important social factors are:
reference groups, family, role and status.
Reference Groups Reference groups have potential in
forming a person attitude or behavior. The impact of reference
groups varies across products and brands. For example if the
product is visible such as dress, shoes, car etc. then the
influence of reference groups will be high. Reference groups
also include opinion leader (a person who influences other
because of his special skill, knowledge or other
characteristics).
NISHANT KUMAR SINGH MARKETING MANAGEMENT
Family Buyer behavior is strongly influenced by the member of a
family. Therefore marketers are trying to find the roles and influence
of the husband, wife and children. If the buying decision of a particular
product is influenced by wife then the marketers will try to target the
women in their advertisement. Here we should note that buying roles
change with change in consumer lifestyles.
Roles and Status each person possesses different roles and status in
the society depending upon the groups, clubs, family, organization etc.
to which he belongs. For example a woman is working in an
organization as finance manager. Now she is playing two roles, one of
finance manager and other of mother. Therefore her buying decisions
will be influenced by her role and status.
3. Personal Factors Personal factors can also affect the consumer
behavior. Some of the important personal factors that influence the
buying behavior are: lifestyle, economic situation, occupation, age,
personality and self-concept.
Age and life-cycle have potential impact on the consumer buying
behavior. It is obvious that the consumers change the purchase of
goods and services with the passage of time. Family life-cycle consists
of different stages such young singles, married couples, unmarried
couples etc. which help marketers to develop appropriate products for
each stage.
Occupation The occupation of a person has significant impact on his
buying behavior. For example a marketing manager of an organization
Will try to purchase business suits, whereas a low level worker in the same
organization will purchase rugged work clothes.
Economic Situation Consumer economic situation has great influence on
his buying behavior. If the income and savings of a customer is high then
he will purchase more expensive products. On the other hand, a person with
low income and savings will purchase inexpensive products.
Lifestyle of customers is another import factor affecting the consumer
buying behavior. Lifestyle refers to the way a person lives in a society and
is expressed by the things in his/her surroundings. It is determined by
customer interests, opinions, activities etc. and shapes his whole pattern of
acting and interacting in the world.
Personality changes from person to person, time to time and place to place.
Therefore it can greatly influence the buying behavior of customers.
Actually, Personality is not what one wears; rather it is the totality of
behavior of a man in different circumstances. It has different characteristics
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such as: dominance, aggressiveness, self-confidence etc. which can
be useful to determine the consumer behavior for particular
product or service.
4. Psychological
Factors There are four important psychological factors affecting
the consumer buying behavior. These are: perception, motivation,
learning, beliefs and attitudes.
Motivation The level of motivation also affects the buying
behavior of customers. Every person has different needs such as
physiological needs, biological needs, social needs etc. The nature
of the needs is that, some of them are most pressing while others
are least pressing. Therefore a need becomes a motive when it is
more pressing to direct the person to seek satisfaction.
Perception Selecting, organizing and interpreting information in a
way to produce a meaningful experience of the world is called
perception. There are three different perceptual processes which
are selective attention, selective distortion and selective retention.
In case of selective attention, marketers try to attract the customer
attention.
Whereas, in case of selective distortion, customers try to
interpret the information in a way that will support what the
customers already believe. Similarly, in case of selective
retention, marketers try to retain information that supports
their beliefs.
Beliefs and Attitudes Customer possesses specific belief and
attitude towards various products. Since such beliefs and
attitudes make up brand image and affect consumer buying
behavior therefore marketers are interested in them. Marketers
can change the beliefs and attitudes of customers by
launching special campaigns in this regard.
What is Consumer Buying Behavior?
Definition of Buying Behavior: Buying Behavior is the
decision processes and acts of people involved in buying and
using products. Need to understand:
 Why consumers make the purchases that they make?
 What factors influence consumer purchases?
 The changing factors in our society.
NISHANT KUMAR SINGH MARKETING MANAGEMENT
Consumer Buying Behavior refers to the buying behavior of the
ultimate consumer. A firm needs to analyze buying behavior for:
 Buyer‘s reactions to a firms marketing strategy has a great
 impact on the firm‘s success.
 The marketing concept stresses that a firm should create a
Marketing Mix (MM) that satisfies (gives utility to) customers,
therefore need to analyze the what, where, when and how
 consumers buy.
 Marketers can better predict how consumers will respond to
marketing strategies.
Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex
Decisions). Actual purchasing is only one stage of the process. Not all
Decision processes lead to a purchase. All consumer decisions do not
Always include all 6 stages, determined by the degree of
Complexity...discussed next.
The 6 stages are:
1. Problem Recognition (awareness of need)--difference between the
desired state and the actual condition. Deficit in assortment of products.
Hunger--Food. Hunger stimulates your need to eat. Can be stimulated
by the marketer through product information-- did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates
your recognition that you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search
Mostly, the consumer can try one or more of following sources of
information:
i. Personal Sources: They may include family members, friends,
package, colleagues, and relatives.
ii. Commercial Sources: Advertising, salesmen, dealers, package, trade
show, display, and exhibition are dominant commercial sources.
iii. Public Sources: Mass media (radio, TV, newspapers, magazines,
cinema, etc.), consumer- rating agencies, etc., are main public sources.
iv. Experimental Sources: They include handling, examining, testing,
or using the product. Selection of sources depends upon personal
characteristics, types of products, and capacity and reliability of sources.
Each information source performs different functions in influencing
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buying decision. By gathering information from relevant
sources, the consumer can learn about different products and
brands available in the market.
3. Evaluation of Alternatives-- In the former stage, the
consumer has collected information about certain brands. Now, he
undergoes evaluation of brands. He cannot buy all of them.
Normally, he selects the best one, the brand that offers maximum
satisfaction. Here, he evaluates competitive brands to judge which
one is the best, the most attractive. Evaluation calls for evaluating
various alternatives with certain choice criteria.
Following criteria are considered while evaluating alternatives:
1. Benefits offered by the brands
2. Qualities, features or attributes, and performance
3. Price changed by various brands
4. History of brands
5. Popularity, image or reputation of brands
6. Product-related services offered by the brands, such as
after-sales services, warrantee, and free installation
7. Availability of brands and dealer rating.
4. Purchase decision-- This is the stage when the consumer
prefers one, the most promising band, out of several brands. The
former stage helps consumers evaluate various brands in the
choice set. The brand that offers maximum benefits or
satisfaction is preferred.
Simply, the most attractive brand, that can offer more benefits
in relation to price paid, is selected by comparing one brand
with others. Comparison shows superiority/inferiority of the
brands.
Now, consumer makes up his mind to purchase the most
preferred brand. However, three factors further affect whether
buying intension result into actual purchase. More clearly, the
consumer‘ decision to avoid, modify, or postpone a purchase
decision is influenced by these factors.
The first factor is attitudes of others. The impact of other
persons‘ attitudes depends on degree of their negative attitudes
toward the consumer‘s preferred brand, and consumer‘s degree
of compliance with other persons‘ wishes.
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The second factor is unanticipated situational factors. Purchase intension Motivated to seek information about a certain products and
may change due to certain unanticipated situational factors like price brands but virtually ignores others.
hike, loss of job, family income, major medical expenses, non- High involvement purchases--Honda Motorbike, high priced
availability of the preferred brand, or such similar factors. goods, products visible to others, and the higher the risk the
The third and the last factor is consumer‘s perceived risk. Degree of risk higher the involvement. Types of risk:
depends on price, attribute uncertainty, entry of a new superior product,  Personal risk
and his self-confidence.  Social risk
 Economic risk
5. Purchase--May differ from decision, time lapse between 4 & 5 High Low
product availability. Involvement Involvement
6. Post-Purchase Evaluation--outcome: Consumer buys the product
with certain expectations. Though he decides very systematically, there is
Significant
no guarantee of a complete satisfaction. There is always possibility of Difference b/w
variation between the expected level of satisfaction and the actual Brands
satisfaction. His subsequent behavior is influenced by degree of
satisfaction/dissatisfaction. Satisfaction or Dissatisfaction.
Few
PROBLEM differences
RECOGNITION b/w brands

INFORMATION
SEARCH The types of consumer buying behavior are:
 Routine Response/Programmed Behavior/habitual
EVALUATION OF buying decision/straight rebuy--buying low involvement
ALTERNATIVES frequently purchased low cost items; need very little
search and decision effort; purchased almost
PURCHASE automatically. Examples include soft drinks, snack foods,
DECISION
 milk etc.
 Limited Decision Making/ dissonance –reducing
PURCHASE
buying/modified Buy--buying product occasionally. When
you need to obtain information about unfamiliar brand in a
POST PURCHASE familiar product category, perhaps. Requires a moderate
EVALUATION
amount of time for information gathering. Examples
 include Clothes--know product class but not the brand.
Types of Consumer Buying Behavior  Extensive Decision Making/Complex high
Types of consumer buying behavior are determined by: involvement/complex buying decision: unfamiliar,
 Level of Involvement in purchase decision. Importance and expensive and/or infrequently bought products. High
intensity of interest in a product in a particular situation. degree of economic/performance/psychological risk.

 Buyers level of involvement determines why he/she is Examples include cars, homes, computers, education.
 Spend alot of time seeking information and deciding.
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Information from the companies MM; friends and relatives,  Aware of substitutes to the Industry
store personnel etc. Go through all six stages of the buying  Disruptive Innovation
process. Conclusion
  Variety seeking buying decision To ensure continued growth for the company, concentrate on
 Impulse buying, no conscious planning. meeting customer‘s needs rather than selling products
The purchase of the same product does not always elicit the same Buying It‘s good if the business organization is suffering
Behavior. Product can shift from one category to the next. For example: hypermetropia rather than myopia.
Going out for dinner for one person may be extensive decision making (for
someone that does not go out often at all), but limited decision making for
someone else. The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also determine the
extent of the decision making.
Marketing myopia
 Understanding Marketing Myopia Term coined by Theodore
 Levitt
  Refer to the short sightedness
 The marketer wants to sell the product and services, without
much focusing on the customer demands/needs.
Understanding Marketing Myopia
 Also can be defined by: Marketing Myopia is narrow minded
approach to a marketing situation where only short-range goals
are considered or Where the marketing focuses on only one
 aspect out of many possible marketing attributes
 Can be prevented: Product Concept – Myopia
 Marketing Concept - No Myopia
Causes
 Company thinks, its growth is guaranteed by expanding
 population
  Believe there is no competitive substitutes
 Mass Production- Not concentrating on the needs of the
 customer
 Focusing on product rather than the customer (Lacking
Innovation) not considering the changing consumer lifestyle
in digital age
How to Avoid Myopia
 Solution Centric focus
  Customer Centric
 Marketing is not only about selling
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
Business Markets and Business Buying Behavior

 
 Business Markets

Business buyer behavior refers to the buying behavior of the

organizations that buy goods and services for use in production
of other products
 and services that are sold, rented, or supplied
 to others.
Business buying process is the process where business buyers
determine which products and services are needed to purchase,
 and then find, evaluate, and choose among alternative brands
 
Business Markets

Business Markets
 
Market Structure and Demand

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Buyers have formal authority to select the supplier

Fewer and larger buyers and arrange terms of purchase

Deciders have formal or informal power to select and

approve final suppliers

Gatekeepers control the flow of information

 
The Buying Process



Buying center is all of the individuals and units
that participate in the business decision-making
process
    
Users Business Buyer Behavior
 
Influencers
 
 
Buyers Problem recognition occurs when someone in the company
 
Deciders
  recognizes a problem or need
 
Gatekeepers 
 
Internal stimuli
Users are those that will use the product or service   
Need for new product or production equipment

 External stimuli 
 
Influencers help define specifications and provide information Idea from a trade show or advertising
for evaluating alternatives
General need description describes the characteristics and
quantity of the needed item
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Product specification describes the technical criteria  

Value analysis is an approach to cost reduction where  Can erode relationships as buyers search for new suppliers
components are studied to determine if they can be redesigned,   
Security
standardized, or made with less costly methods of production  
Institutional and Government Markets

Supplier search involves compiling a list of qualified Institutional markets consist of hospitals, nursing homes, and
suppliers  prisons that provide goods and services to people in their care

 Characteristics
Proposal solicitation is the process of requesting proposals
from qualified suppliers   
Low budgets
  
―Captive‖ audience
Supplier selection is the process when the buying center 
creates a list of desired supplier attributes and negotiates with Government markets tend to favor domestic suppliers and
 to submit bids and normally award to the
require suppliers
preferred suppliers for favorable terms and conditions lowest bidder

Order-routine specifications is the final order with the chosen

supplier and lists all of the specifications and terms of the
purchase

Performance review involves a critique of supplier

performance to the purchase terms

E-Procurement
  Online purchasing
  Company-buying sites

  Extranets

  Advantages

  
Access to new suppliers
  
Lowers costs
  
Speeds order processing and delivery
  
Shares information
  
Sales
  
Service and support
 
Disadvantages

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