Unit 1: Marketing Buyer behaviour 25/06/2018
Marketing orientation - customer orientation To be successful in marketing you need to understand your customers What are their needs, wants, expectations? How can you successfully meet these and still achieve a profit? 25/06/2018
Exercise 1 What is the difference between… A customer? A client? A professional? A consumer? A decision making unit (DMU)? Why do the differences matter to a marketer? 25/06/2018
Buyer behaviour To understand how to analyse buyer behaviour, specific questions must always be asked: 25/06/2018
Buyer behaviour Why do we buy What Where How When we buy? 25/06/2018
Consumer buying behaviour The study of consumer buying behaviour to a marketer is important because: The reactions of consumers to a marketing strategy will impact on the success of an organisation A true marketing-orientated organisation will need the consumer needs and influences to produce a marketing mix that satisfies them If you know your customers you can predict how effective your ideas would be 25/06/2018
The factors that influence buyer behaviour Environment Personal Motivation Psychological 25/06/2018
Exercise 1 What examples of environmental factors can you think of that could affect buyer behaviour? 25/06/2018
Personal factors Age Life cycle Occupation Economic well being Lifestyle 25/06/2018
Psychological factors Motivation – Maslow’s Hierarchy of Needs Perception – unique viewpoint on what a product/service gives you Learning – behaviour from experience Beliefs and attitudes – personal to each individual (remember the Coco Cola Wars case study) 25/06/2018
A model of buyer behaviour: Black box model Looks at how people respond to stimuli however does not attempt to analyse thought processes as too complex and individual Analysis focuses on the ‘input’ (ie: advertising) and the ‘output’ (ie: the resulting buyer behaviour) 25/06/2018
Black box models ADVANTAGES DISADVANTAGES Observable, quantifiable variables Manageable number of relevant input variables Stimulus variables DISADVANTAGES Limited to simple, unambitious functions Do not predict behaviour in a wide range of circumstances 25/06/2018
Organisational buying behaviour ‘ the decision making process by which formal organisations establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers’ 25/06/2018
Organisational buying behaviour Looks at the buyer behaviour between businesses Factors which influence: Environmental Organisational Interpersonal individual 25/06/2018
Environmental Level of demand Economic outlook Cost of money Political and regulatory requirements 25/06/2018
Organisational Objectives Procedures Structures and systems Credit facilities/requirements 25/06/2018
Interpersonal Use of power Conflicts Relationships 25/06/2018
Individual Personal characteristics of the buyers such as age, education, personality, position in the company 25/06/2018
Decision making units (DMUs) These are one of the key differences between consumer and organisational buying behaviour. Organisational purchases are rarely down to just one person – decisions tend to be made by a working group of people from different functional areas within an organisation, where the purchase will affect them 25/06/2018
Further research Course book chapter 5 Maslow’s Hierarchy of Needs DMUs and how they are made up 25/06/2018