Transcript Marketing for MOST

Marketing for MOST
Module 04 – Markets & Buying Behavior
技術経営コンソーシアム
開発担当者 ：Ritsumeikan Asia Pacific University 教授: Takamoto, Akihiro
更新日 October, 2003
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Module 04: Markets & Buying Behavior
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What is a Market?
Characteristics Affecting Consumer Buying
Behavior
Types of Buying Decision Behavior
The Buyer Decision Process
Buyer Decision Process for New Products
Characteristics of Business Markets
Case 1
Case 2
Comment and Discussion
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Markets & Buying Behavior
Marketing for MOST: Module 4 – Markets and Buying Behaviour
What is a Market
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In our daily life, the word “Market” is used in
many meanings:
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At the market, market day
Share of the market
The Japanese Market
A growing Market for Plasma display TVs
(=demand)
The market will decide on a market-driven
economy
The market crash of ’87.
Ref: Market Definition
Marketing for MOST: Module 4 – Markets and Buying Behaviour
What is a Market
• A market is the set of all actual
and potential buyers of a product.
(Philip Kotler)
• What is a potential market?
• Consumer markets vs business
markets
Marketing for MOST: Module 4 – Markets and Buying Behaviour
What is a Market
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A consumer market is all the
individuals and households who buy or
acquire goods and services for
personal consumption.
(Philip Kotler)
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A business market is all organizations
that buy goods and services for use in
the production of other products and
services that are sold, rented, or
supplied to others.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
What is a Market
“ 7O ” framework to define the market
Who constitutes the market?
What does the market buy?
Why does the market buy?
Who participates in the buying?
How does the market buy?
When does the market buy?
Where does the market buy?
Occupants
Objects
Objectives
Organizations
Operations
Occasions
Outlets
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
Cultural Factors:
Culture
The set of basic
values, perceptions,
Wants, and behaviors
learned by
a member of society
from family and other
important institutions.
Subculture
The group of people
with shared value
systems based on
common life
experiences and
situations.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
• Social Factors
• Social classes
– Groups, opinion leaders
– Family
– Roles and Status
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
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Personal Factors
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Age and life-cycle stage
Occupation
Economic situation
Lifestyle
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
Lifestyle:
A person’s pattern of living as
expressed in his or her activities,
interests, and opinions.
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The AIO dimensions:
Activities,
Interests,
Opinions.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
Personality:
A person’s distinguishing
psychological characteristics
that lead to relatively
consistent and lasting
responses to his or her own
environment.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
Self Concept (=Self Image)
Mini Case: Come to Marlboro country
e.g. Leo Burnett’s campaign for Marlboro, using
the cowboy photographs, projects an image
which has made it the biggest-selling
cigarette in the world. It has been running,
almost without change, for 25 years.
Images found on the Internet…Not official Marlboro Advertisements
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
• Psychological Factors:
– Motive (drive)
– Freud’s Theory of Motivation:
People are largely unconscious
about the real psychological
Forces (i.e. repressed urges)
shaping their behavior.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Characteristics Affecting Consumer
Buying Behavior
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Psychological Factors:
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Mazlows Theory of Motivation:
(self-development and realization)
(self-esteem, recognition, status)
(sense of belonging, love)
(security, protection)
(food, water, shelter)
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Types of Buying Decision Behavior
• Complex Buying Behavior:
Marketing for MOST: Module 4 – Markets and Buying Behaviour
The Buyer Decision Process
• The Buyer Decision Process:
Marketing for MOST: Module 4 – Markets and Buying Behaviour
The Buyer Decision Process for New
Products
• Stages in the Adoption Process
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Does the customer always follow the above
steps?
Marketing for MOST: Module 4 – Markets and Buying Behaviour
The Buyer Decision Process for New
Products
• Individual Differences in
Innovativeness
Marketing for MOST: Module 4 – Markets and Buying Behaviour
The Buyer Decision Process for New
Products
Marketing Structure and Demand
Business Markets contain fewer but larger buyers.
Business customers are more geographically concentrated.
Business buyer demand is derived from final consumer demand.
Demand in many business markets is more inelastic
- not affected as much in the short run by price changes.
Demand in business markets fluctuates more and more quickly.
Nature of the Buying Unit
Business purchases involve more buyers
Business buying involves a more professional purchasing effort.
Types of Decisions and the Decision Process
Business buyers usually face more complex buying decisions
The business buying process is more formalized.
In business buying, buyers and sellers work more closely together
And build close long-run relationships.
(Philip Kotler)
Marketing for MOST: Module 4 – Markets and Buying Behaviour
The Buyer Decision Process for New
Products
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Players in the Business Buying Process:
Deciders
Influencers
Users
Gatekeepers
Buyers
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Q. Choose a business buyer (and the product they
buy) and explain who are the players.
(Philip Kotler)
Marketing for MOST: Module 4 – Markets and Buying Behaviour
CASE
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SRI-BI
International Values and
Lifestyle Framework
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Q: The Lifestyle classification
by SRI-BI (Stanford Research
Institute-Business Intelligence)
was developed with America
society and American People
in mind.
If you were to develop such
a classification or typology
for your own home country
market, how would you revise it?
Perhaps you may want to
propose an entirely different
approach.
Then, what would it be like?
(http://www.sric-bi.com/)
Marketing for MOST: Module 4 – Markets and Buying Behaviour
CASE
Marketing for MOST: Module 4 – Markets and Buying Behaviour
CASE 2 – Shackletons Epic
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The (supposed) Advertisement by Sir Ernest Shackleton
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“Men Wanted for Hazardous Journey. Small wages,
bitter cold, long months of complete
darkness, constant danger; safe return
doubtful.
Honour and recognition in case of Success”
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The ad, written by the famed polar explorer
Sir Ernest Shackleton, [is said to have]
appeared in London Newspapers in 1900.
It [is said to have] yielded an immediate
response of unprecedented proportions.
Its imaginative appeal was clearly to people whom honour and recognition were, as
they say, everythin. Its poer lay not in the novel idea of appealing to the human
desire for honour and recognition, though the risks wer grave and the work terrible,
but also inits deadly frankness and remarkably simple execution.
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(Abridged from the original source: The Marketing Imagination by Theodore Levitt, Free Press)
Q: How many people do you think responeded to this ad in 1900? Explain
some of their motives utilizing Mazlows Hierarchy of Needs.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
CASE 2 – Shackletons Epic
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See: http://www.pbs.org/wgbh/nova/shackleton/1914/timeline.html
For more on Shackleton and his valiant crews Epic Tale of Survival.
Marketing for MOST: Module 4 – Markets and Buying Behaviour
CASE2 – Shackleton’s Epic
Marketing for MOST: Module 4 – Markets and Buying Behaviour
Comment and Discussion
– Read all the Student Comments and questions
listed in the attached file and discuss them one
by one.
– (REF: Studentcomment.doc)
– Raise your own questions and discuss them
as well?