3.02 Understand buying behaviors. MARKETING 3.02 Understand buying behaviors.

Marketing Strategy A marketing strategy provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits . Two Steps: Target Market Marketing Mix

Target Market A specific group of consumers that have similar wants and needs. 4 types of segmentation: Demographic (age, gender, income, ethnicity) Geographic (location) Psychographic (values, attitudes, & lifestyles) Behavioral (why customers buy the product)

Marketing Mix (4Ps) The blending of the four marketing elements—product, place (distribution), price, and promotion. Satisfies the wants and needs of the target market. Provides a profit for the company.

Consumer Decision Making Process Recognize a need. Gather information. Select and evaluate alternatives. Make a purchase decision. Determine the effectiveness of the decision.

Decision-Making Extensive Limited Routine Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer. Limited Occurs when a customer buys products that he or she has purchased before but not regularly. Routine Occurs when little information is needed about the product being purchased.

Consumer Buying Motives Buying motives are the reasons consumers decide what products and services to purchase. Emotional feelings, beliefs, and attitudes Rational based on facts and logic Patronage based on loyalty, customer service, merchandise, and convenience

Consumer Information Sources Product Testing Organizations Media Government Business Personal

Product Testing Organizations Test products and services to detect benefits. Examples Underwriter Laboratories Association of Home Appliance Manufacturers Consumers Union (Independent testing organizations)

Media Sources Provide specific information about products and services. Types of media sources: Print Magazines Newspapers Broadcast Organizations Radio Television Internet

Government Agencies Inform consumers and may handle consumer questions. Types Federal State Local

Business Sources Business sources are available as a public service and to sell products and services. Types The main function of advertising is to sell. Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product. Customer Service Departments focus on assisting customers. Better Business Bureau (BBB) provide facts about products or services.

“Word of mouth” advertising. Personal Contacts “Word of mouth” advertising.

Traditional Retailers Department Stores Provide broad product lines and highlight their service Discount Stores Highlight their offering of lower prices for products Specialty Stores Provide a special line of products

Traditional Retailers Supermarket Large, full service store that offer many brands of products Convenience Store Provide popular items, offer long operating hours, and are usually located in highly accessible areas

Contemporary Retailers Specialty Superstores Provide wide variety of limited products at low prices Superstores Provide a wide variety of products in the retail services such as food, bakery, auto, and electronics.

Contemporary Retailers Warehouse Club Provide products in large quantities at practical prices. Factory Outlets Provide high-quality products at low prices

Non-Store Retailers Allows purchasing of goods and services by telephone, computer, television, fax, or door- to-door. Vending machines provide products through automation.