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 Rameen Shadab

 Noor-ul-ain

 Nimra Afzal

 Rubab Parveen
It is the process whereby individuals
decide what, when, where, how & from
whom to purchase goods & services.
 Cultural factors
 Social factors
 Personal factors
It is the set of belifes, moral values, traditions,
language, laws & religion.

Marketers must closely attend to cultural values in


every country to understand how to best market
their existing products and find opportunities for
new products.

For Example:
In pakistan Beer.
Reference groups are the groups that have
a direct or indirect influence on their
attitudes or behaviour.
 Membership groups.
 Primary groups.
 Secondary groups.
 Aspirational groups.
 Dissociative groups.
 Opinion leader.
Family is the most important consumer
buying organization in society, & family
members.
 Family of orientation.( parents &
siblings)
 Family of procreation.(person’s spouse
& children)
A role consist of the activities a person is
expected to perform .
Each role in turn connotes a status.
For Example:
 A senior vice president & a sales
manager.
 Sales manager & a office clerk.
The Personal Factors are the individual
factors to the consumers that strongly
influences their buying behaviors. These
factors vary from person to person that
results in a different set of perceptions,
attitudes and behavior towards certain
goods and services.
3 of the best known theories of human
motivation.
 Sigmund freud.

 Abraham maslow.

 Frederick herzberg.
Sigmund freud assumed the
psychological forces shaping peoples
behaviour are largely unconscious and
that a person cannot fully understand his
or her own motivations.
Perception is the process by which we
select , organize & interpret information
input to create a meaningful picture of
the world.
 Selective attention.

 Selective distortion.

 Selective retention.

 Subliminal perception.
The acquisition of knowledge or skills
through study, experience, or being
taught.
Approaches of learning:
 Drive.

 Cue
A strong feeling deriving from one's
circumstances, mood, or relationships
with others.
The faculty by which the mind stores and
remembers information.
 Short term memory.

 Long term memory.

 Associative network memory.

 Brand associations.
Memory is very constructive process,
because we don’t remember information
& events completely & accurately. We
remember bits & pieces.
Marketers should ask questions in terms of:
 What

 When

 Where

 How & Why


Need is triggered by:
 Internal stimulus

 External stimulus
Consumer seeks information that can help him make a
purchasing decision.
 Internal Information.

 External Information ( Personal,


Commercial,Public,Experimental)
Based on product features, perception and other
attributes.
 Do you want to satisfy a need.

 Are you looking for some benefits.

 What are the attributes that are being looked for?


Affects this process.

 Beliefs: descriptive thought about something


 Attitudes: person’s enduring favorable or
unfavorable evaluations, feelings and actions
towards some objects.
Purchase decision is the act to choose the most
preferred brand.

Sub decision have to be taken about:


 Brand

 Dealer

 Quantity

 Timing

 Payment method
Satisfaction or dissatisfaction about purchase.

Marketers must observe:

 Post purchase Satisfaction

 Post purchase Action

 Post purchase Uses and Disposal


 Performance less than expectations results
into disappointed.

 Performance meet the expectations results


into satisfied.

 Performance exceed the expectations results


into delighted consumer .
 Satisfaction or dissatisfaction influence the
customer behavior

 If it’s satisfied it may lead to a repeat purchase

 If it’s dissatisfied it may

 Exit option

 Voice option
Calculate the consumption rate i.e
frequency of purchase
Mental shortcut that help us make decision
quickly.

 Available heuristics

 Representativeness heuristics

 Anchoring heuristics
 Available heuristics:
based on a past outcome
Example: Judging the population of cities
 Representativeness heuristics:
based on how similar the outcome is to other
example
 Anchoring heuristics:
first impression
The fundamental need that satisfy
consumers by using the product or
service.

Example:

Rest and sleep


Attributes or characteristics that
necessary for the product to function.

Example:

Bed, bathroom and towel


Set of attributes that buyers expect when
they purchase a product.

Example:

clean bed, fresh towel


Additional features or benefits that differentiate
the product from its competitors .

Example:

Large- screen HD TVs, Wireless internet


services
 All the augmentations and
transformations the product might
undergo in the future

 new products that does not exist before

 new ways to satisfy customers


DURABILITY & TANGIBILITY:
• Non-durable goods:
- tangible goods, few uses
- e.g. beer , shampoo
• Durable goods:
- tangible goods, many uses
- e.g. refrigerators , clothing
• Services:
- intangible, inseparable, perishable
- e.g. haircut, repair car
CONSUMER:

convenience – frequent, minimal effort

shopping – compares quality, price, style

specialty – unique or brand identification

unsought – doest not think of buying


INDUSTRIAL :
1. Material & Parts
a) raw material:
- farm – wheat, cotton
- natural – fish, iron ore

b) manufactured:
- component materials – fabricated further
- component parts – used as is
2. Capital items :
a) installation – building & heavy
equipments
b) equipment – factory & office equipments
3. Supplies & business services:
a) maintenance and repair
b) operating
c) business services
 Form – size, shape, color
 Features – specifications
 Performance quality – level at which product’s primary
characteristics operate
 Conformance quality – all products identical and meet
specification
 Durability – product’s expected operating life
 Reparability – ease of fixing a product
 Style – product’s look and feel to the buyer
 Customization – finding out exactly what a customer
want
 Ordering ease
 Delivery
 Installation
 Customer training
 Customer consulting
 Maintenance and repair
 Returns
 DESIGN:

features that affect the way a product looks,


feels and functions to a consumer

 Power of design:

design can shift consumer perceptions to


make brand experiences
 characteristics of well designed product .
- pleasant to look at
- easy to open
- install, repair and dispose of
 creative brainstorming session.
 collaborative teamwork to bring the design idea to
reality .
Six level of product hierarchy
 Need family

 Product family

 Product class

 Product line

 Product type

 Item
A product system is a group of diverse but
related items that function in a compatible
manner.

Example:

mobile phone with accessories


A product mix is the set of all products and
items a particular seller offer for sale.
Product mix consist of
 Width

 Length

 Depth

 consistency
Objectives:
 To induce-up selling.

 Facilitates cross selling.

 Protects against economics ups and downs.

Example:
Maruti would like to move customer from maruti 800
to alto zen.
 Line stretching:
Occurs when a company lengthens its product line
beyond its current range, whether down-market ,up-
market or both.
Example:
Mercedes Automobiles
 Line filling:
A business strategy that involves increasing the number
of products in an existing product line to take advantage
of marketplace gaps and reduce competition.
Maruti Suzuki had launched Alto in the
year 2000 which was a product between
two other models of Maruti- Maruti 800
and Maruti Zen. Basically , it was an
effort on part of the company to fill the
gap that existed in the market segment
by introducing this new model ALTO.
Product mix pricing is setting price of a product
as a part of a product mix.
 Co-Branding:
Marketers often combine their products with
products from other companies in various ways it
also called dual branding or brand bundling.

Example: Fanta and Oye Hoye

 Ingredient Branding:
It creates brand equity for material, components or
parts that are necessarily contained within other
branded products.
Example: Gateway computer with intel chips
 Packaging:

It includes all the activities of designing and


producing the container for a product.

Example: coke bottle or red bull can

 Labeling:

The label can be a simple attached tag or an


elaborately designed graphic that is part of the
package.
 Warranties:
Products under warranty can be returned to the
manufacturer or designated repair center for repair,
replacement or refund.

 Guarantees:
It reduces the buyers perceived risk .it is helpful when
company is not or product is not well known in
market.