Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Chapter Seven Global Competitive Analysis

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Major Factors Influencing Local Buyer Behavior External Influences Culture Economics Technology Politics Buyer charac- teristics “Models of Man” Product choice Brand choice Store choice Supplier choice Buyer Choices Buyer decision process Local Marketing Effort Exhibit 7.1

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Consumer Decision Process Exhibit 7.2 Problem recognition Search Evaluation of alternatives ChoiceOutcomes Source: Engel et. al. 1978, p. xi. Reproduced with permission of the publisher.

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Decision Processes Across the PLC PLC INTRO GROWTH MATURE PROCESS STAGE: INVOLVEMENTHIGHHIGHLOW PROBLEM?YESYESNO EVOKED SETONEMANYONE INFO SEARCHHIGHHIGHLOW COMPARISONSNOYESNO RISKHIGHHIGHLOW ATTITUDEYESYESNO NORMSYESYESNO LOYALNOMAYBEYES P-O-PYESYESYES DISSONANCENOYESNO

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide AWARENESS INTEREST KNOWLEDGE ATTITUDE LIKING PREFERENCE TRIAL PURCHASE SATISFACTION REPEAT LOYALTY THOUGHT AFFECT ACTION THOUGHT & AFFECT ACTION AFFECT New Brands: The “Hierarchy of Effects”

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Japanese Style Choice Process EXPOSURE MANING/ INTERPRETATION NEED/PROBLEM RECOGNITION PEER OPINION LIKING STORE/INFO SEARCH IN-STORE EVALUATION TRIAL/USE REINFORCEMENT FROM PEERS LOYALTY MEDIA, CUSTOMERS, COMMUNICATION AWARENESS MARKET FACTORS SOCIAL FACTORS AFFECT INDIVIDUAL FACTORS COGNITION ACTION SOCIAL FACTORS

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide A Global Brand Simplifies the Decision Process -- REDUCES INFORMATION SEARCH -- REDUCES PERCEIVED RISK -- PLACES BRAND IN THE EVOKED SET MORE EASILY A GLOBAL BRAND CAN FOCUS ON: -- ATTITUDES -- NORMS -- P-O-P

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Stages of Consumer Research Problem definition Sampling Research design Measurement/ scaling Exploratory Descriptive Causal Trade surveys Observation Experiments Causal Models Secondary data Qualitative research Consumer surveys Questionnaire construction Fieldwork Data analysis Exhibit 7.4

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Marketing Research on the Decision Process STAGE OF THE PLC: SECONDARY DATA/OBSERVATION (# OF COMPETITIVE BRANDS, GROWTH RATE). INVOLVEMENT, RISK, COGNITIVE DISSONANCE: FOCUS GROUPS EVOKED SET, AMOUNT OF SEARCH: SURVEYS EVALUATION OF ALTERNATIVES: SURVEYS, MARKET SHARE DATA ATTITUDES, SOCIAL NORMS: SURVEYS BRAND LOYALTY: REPEAT BUYING DATA, SURVEYS P-O-P INTENSITY: TRADE SURVEYS, OBSERVATION

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide IN SOME FOREIGN MARKETS, SECONDARY DATA ARE NOT AVAILABLE (MARKET SHARES, GROWTH RATES) AND SURVEYS HAVE TO BE DONE WITH CARE BECAUSE RESPONDENTS ARE NOT REPRESENTATIVE AND/OR MAY BE UNWILLING TO ANSWER (TRUTHFULLY). FOCUS GROUPS NEED TO BE MODERATED BY LOCAL INTERVIEWER AND AUGMENTED BY OBSERVATION YOU MUST VISIT THE MARKET!!! Marketing Research

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Industrial Buying Process Performance review Order specification Supplier selection Proposal solicitation Search for suppliers Product specification General need description Problem recognition Source: Robinson, et al., Industrial Buying and Creative Marketing Copyright ©1967. All rights reserved. Adapted by permission of Allyn & Bacon. Exhibit 7.4

Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide Keys to Successful Relationship Marketing Adopt the Buyer’s Viewpoint Accept and Demand Transparency Grow With the Relationship Be Proactive