Module -2

Key Customer Markets

• Consumer markets - Companies selling mass consumer

goods and services such as juices, cosmetics, athletic shoes,
and air travel spend a great deal of time establishing a strong
brand image by developing a superior product and
packaging, ensuring its availability, and backing it with
engaging communications and reliable service.

• Business markets- Business products include those that

are used to manufacture other products, become part of
another product, or aid the normal operations of an
organization. For example, General Motors’ purchases goods
and services e.g. tyres, steering, paints, repairing etc., to
complete the production of their vehicles.
•
 Consumer Markets

• PART 1- Influencing Factors in Buying

Behaviours

• PART 2- Buying Roles

• PART 3- Buying Behaviours

• PART 4- Decision Making process

• The field of Consumer Behavior:
“studies how individuals, groups, and
organizations select, buy, use, and dispose of
goods, services, ideas, or experiences to
satisfy their needs and desires.”
 Marketing 4Ps
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
Macro –
Environmental
(PESTEL)
 Marketing 4Ps

Marketing Mix

Convenience
Customer Value Place
Communication Channels
Coverage
Product Assortments
Product Variety Cost Promotion Locations
Quality Sales Promotion Inventory
Design Advertising Transportation
Features Sales Force
Price
Brand Name Public Relations
List Price
Packaging Direct Marketing
Discounts
Sizes
Allowances
Services
Payment Period
Warranties
Credit Terms
Returns
1-8
• MOTIVATION
• PERCEPTION
• LEARNING
• MEMORY
• EMOTIONS
 • Motivation:
– Need satisfaction and drive to act:
» biogenic-hunger, thirst
» psychogenic-esteem, recognition

– Maslow’s theory-need satisfaction

PART 2- Buying Roles
Consumer Buying Decision Process
• In addition to understanding how these
factors influence consumers, marketers
must identify and understand:
– Who makes the buying decision
– The types of buying decisions
– The stages in the buying process
 Consumer Buying Decision Process
(Decision Making Unit)
Understand • Initiator
• Buying roles • Influencer
• Buying behavior • Decider
• Buying decision • Buyer
process • User
• Gatekeeper
• Buying Roles:

• Initiator-person who suggests the idea

• Influencer-person who gives advise
• Decider-person who decides to buy
• Buyer-person who makes actual purchase
• User-person who consumes
• Gatekeeper- who acts to prevent or discourage a purchase
Decision Making Unit
Decision Making Unit- Purchasing Vacation
 Decision Making Unit
• There is evidence that the traditional husband-wife
buying roles are changing. Almost everywhere in the
world, the wife is traditionally the main buyer for the
family, especially in the areas of food, household
products and clothing. However, with increasing
numbers of women in full-time work and many men
becoming “home workers” (or “telecommuting”) the
traditional roles are reversing.

• At the same time, most women now influence all new car
purchases, new home purchases, vacation purchases
and tech-products.
Decision Making Unit- Purchasing Photocopier in
B2B (business-to-business)
PART 3- Buying Behaviours
Consumer Buying Decision Process

• Complex buying behavior (High

Involvement behavior) – Technicality, luxury
oriented product and services
Understand
• Conflict reducing buying behavior-
occurs when the consumer is highly involved
• Buying roles but sees little difference between
brands. Example -purchase of a diamond ring.
A consumer in such a buying situation will seek
• Buying behavior information or ideas that justify the original
purchase.

• Buying decision • Habitual buying behavior (Low

process Involvement behavior) Routine purchase
– eg: FMCG goods - toothpaste, salt, light
bulbs, etc.

• Variety-seeking buying behavior-

Gift Items, Cloths, Food.
Buying behavior