Understanding

BUSINESS

Marketing Processes
and Consumer
Behavior

1
 What Is Marketing?

Process of planning and

executing the conception,
pricing, promotion and
BUSINESS

distribution of ideas, goods

and services to create
exchanges that satisfy
individual and
organizational objectives

2
 What Is a Marketing Plan?

Detailed strategy for

focusing marketing efforts
on consumer needs and
BUSINESS

wants

3
 Who Are Marketing
Managers?
Manager who plans and
implements the marketing
activities that result in the
BUSINESS

transfer of products or services

from producer to consumer

4
 Marketing: Providing Value
and Satisfaction

 Value and Benefits

 Value is the relative comparison of
a product’s benefits versus its costs
BUSINESS

 Benefits include the functions of

the product and the emotional
satisfaction associated with
owning, experiencing or
possessing it

5
 Marketing: Providing Value
and Satisfaction
 Value and Utility
 Utility is the ability of a product to satisfy
a human want or need. Four kinds:
BUSINESS

 Time Utility
 Place Utility
 Ownership Utility
 Form Utility

6
 What Is Relationship Marketing?

Marketing strategy
that emphasizes
BUSINESS

lasting relationships
with customers and
suppliers

7
 Marketing: Goods, Services
and Ideas
 Consumer goods are
products purchased by
consumers for personal use
BUSINESS

 Industrial goods are

products used by companies
to produce other products
 Services are intangible
products that can be
purchased

8
 The Marketing Environment

External environment is the combination of

outside factors that influence marketing programs
by posing opportunities and threats. Five
environmental factors:
BUSINESS

 Political–Legal Environment
 Social–Cultural Environment
 Technological Environment
 Economic Environment
 Competitive Environments

9
 The External Marketing
BUSINESS Environment

10
 Competitive Environment

 Substitute products differ from

those of competitors but can fill
BUSINESS

the same need

11
 Competitive Environment

 Brand competition occurs

between similar products
BUSINESS

12
 Competitive Environment

 International competition
matches domestic products
against foreign products e.g.
BUSINESS

Tapal vs Lipton

13
 What Is the Marketing Mix
(or the “Four P’s”)?

Combination of
product, pricing,
BUSINESS

promotion and
distribution
(place) strategies
used to market
products

14
 What Is a Product?

A product is a good, service or

idea designed to fill a consumer
need or want.
BUSINESS

15
 What Is a Product?
Product differentiation is the
creation of a product feature
or product image that differs
BUSINESS

enough from competing

products to attract consumers

How do they differentiate themselves?

16
 What Is Pricing?
Pricing is the process of selecting the
best price at which to sell a product.
 Prices must support a variety of costs
BUSINESS

 Prices must be competitive

 Low- and high-price strategies can be
effective in different situations

17
 What Is Distribution (Place)?
Distribution is part of the
marketing mix concerned with
getting products from producers to
BUSINESS

consumers.
 Decisions about warehousing, inventory
control and transportation options
 Decisions about channels

18
 What Is Promotion?

Promotion is the techniques for

communicating information about
products. There are different
BUSINESS

promotional tools e.g.

 Advertising
 Personal Selling
 Sales Promotions
 Public Relations

19
 What Is Target Marketing and
Market Segmentation?

 Target markets are groups

of people with similar wants
and needs
BUSINESS

 Market segmentation is
the process of dividing a
market into categories of
customer types

20
 Identifying Market Segments

 Geographic variables are

geographical units e.g. provinces,
cities etc.
BUSINESS

 Demographic variables are

characteristics of populations e.g.
Age, Gender, Education, Income,
Occupation, Marital Status, Parental
Status etc.

21
 Identifying Market Segments
 Psychographic variables are
consumer characteristics such as
lifestyles, personality and
attitudes
BUSINESS

 Behavioral variables are

consumer characteristics based
on the use of a product, benefits
sought from it, reasons for its
purchase and brand loyalty Toothpaste
-Whiteners
with:

-Fluoride
-Mouth Freshener
- Medicaments
22
 What Is Brand Loyalty?

Pattern of regular
consumer purchasing
BUSINESS

based on satisfaction with

a product

23
 What Is Marketing Research?

Study of consumer needs

and wants and the ways in
which sellers can best meet
BUSINESS

them

24
 The Research Process
. Study the current situation
. Select a research method
. Collect data
BUSINESS

• Secondary data is already available

from previous research
• Primary data is collected through new
research
. Analyze the data
. Prepare a report

25
 Research Methods
 Observation involves watching and
recording consumer behavior
BUSINESS

 Survey uses a questionnaire which serves

as the basis of interviews

26
 Research Methods
 Focus group involves a small gathering of
people who are presented with an issue and
asked to discuss it in depth
BUSINESS

 Experimentation compares the responses

of the same or similar people under different
circumstances under a controlled
environment

27
 What Is Consumer Behavior?

Study of the decision

process by which people
BUSINESS

buy and consume products

28
 Influences on Consumer
Behavior
Psychological influences:
individual’s motivations,
perceptions and attitudes
BUSINESS

Personal influences: lifestyle,

personality and economic status

Social influences: family, opinion

leaders and reference groups

Cultural influences: culture,

subculture and social class
29
BUSINESS Consumer Buying Behavior

30