Marketing process & consumer behaviour

Key Topics Definition of marketing The external marketing environment Segmentation and target marketing The consumer buying process Organizational markets and buying behavior Consumer and industrial products Branding and packaging

What Is Marketing? “Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” Finding a need and filling it! OR

Nature of Marketing To create value by allowing people and organizations to obtain what they need and want

The Marketing Concept The idea that an organization should try to satisfy customer’s needs through coordinated activities that allow it to achieve its own goals (profit) Did You Know? Trying to determine a customer’s true needs is difficult because no one fully understands what motivates people to buy. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Marketing Creates Utility Utility--a product’s ability to satisfy human needs and wants Place Time Ownership Form Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Functions of Marketing Buying Selling Transporting Storing Grading Financing Marketing research Risk taking Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Total-Market Approach The marketer tries to appeal to everyone and assumes that all buyers have the same needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Target Market Strategies Total- Market Approach Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Exchange Relationship Exchange: The act of giving up something (money, credit, labor, goods) in return for something else (goods, services, or ideas) Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Exchange Process: Giving Up One Thing in Return for Another Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Influence of Marketing Permeates Everyday Life Goods Consumer Industrial Services Ideas Relationship marketing emphasizes lasting relationships with customers and suppliers

Evolution of the Marketing Concept The production orientation During the second half of the 19th century The sales orientation By the early part of the 20th century The marketing orientation By the 1950s Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Marketing Orientation Requires organizations to: Gather information about customer needs Share that information throughout the entire firm Use that information to help build long- term relationships with customers Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Marketing Environment External forces that directly or indirectly influence the development of marketing strategies Political Legal Regulatory Social Competitive Economic, and technological Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Developing Marketing Strategy Marketing strategy: A plan of action for developing pricing, distributing and promoting products that meet the needs of specific customers Two major components: Selecting a target market Developing the appropriate marketing mix Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Competitive Environment Drives Marketing Decisions Substitute product competition Brand competition International competition

Marketing Research & Information Systems Marketing research A systematic, objective process of getting customer information to guide marketing decisions Marketing information system A framework for assessing information about customers from internal and external sources Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Collecting Data Primary data Marketing information that is observed, recorded, or collected directly from respondents Secondary data Information that is compiled inside or outside an organization for some purpose other than changing the current situation Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Marketing Mix: The “Four P’s” (Distribution) roductroduct ricingricing romotionromotion lacelace

Product A good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumers Products should be sold at a profit Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Price A value placed on a product or service that is exchanged between a buyer and seller Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Distribution (Place) Making products available to consumers in the quantities and locations desired Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Promotion A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

The Promotional Mix Advertising Personal Selling Sales Promotions Public Relations

Market Segmentation Market Segmentation: A strategy to divide the total market into groups of people who have relatively similar product needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Bases for Segmenting Markets Demographic Geographic Psychographic Behavioristic Did You Know? During its first year of operation, sales of Coca-Cola averaged just nine drinks per day for total first-year sales of $50. Today, Coca-Cola products are consumed at the rate of one billion drinks per day. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Identifying Market Segments Psychographic Variables Geographic Variables Demographic Variables Berdasarkan Wilayah Berdasarkan Karakter Populasi (Usia, pendidikan,keluarga, pendapatan dsb Berdasarkan Karakter Konsumen (Gaya hidup, Hobi, Sikap)

The Keys to Successful Market Segmentation 1.Consumers’ product needs must be heterogeneous 2.Segments must be identifiable and divisible 3.The market must be divided so segment sales, cost, and profit can be compared 4.One segment must have enough profit potential to justify a special marketing strategy 5.The chosen segment must be reached by the firm with a particular marketing strategy Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Market Segment A collection of individuals, groups, or organizations who share one or more characteristics and have similar product needs and desires Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Niche Market Narrow market segment focus when efforts are on one small, well-defined segment that has a unique, specific set of needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Market Segmentation and Target Marketing Market Segmentation Dividing a market into customer categories Target Marketing Selecting a category of customers with similar wants and needs who are likely to respond to the same products

Selecting a Target Market Market A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas Target market A more specific group of consumers on whose needs and wants a company focuses its marketing effort Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Consumer Behavior Psychological Influences (motivasi, persepsi, sikap) Personal Influences (gaya hidup, status ekonomi) Social Influences (keluarga, rekans) Cultural Influences (budaya, etnis, kelas sosial) Why do consumers purchase and consume products?

Buying Behavior The decision processes and actions of people who purchase and use products Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Psychological Variables of Buying Behavior Perception Motivation Learning Attitude Personality Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Social Variables of Buying Behavior Social roles Reference groups Social classes Culture Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

Organizational Markets Industrial Market Government and Institutional Market Reseller Market

Organizational Buying Behavior Differences in buyers Professionals Specialists Experts Differences in buyer/seller relationships

Classifying Products Consumer Convenience Goods Shopping Goods Specialty Goods Industrial Expense Items Capital Items

Product Offerings Product Line A group of similar products, intended for similar buyers, who will use them in similar ways. (mis. Sabun) Product Mix The total group of products that a company offers for sale. (mis. Alat pembersih)

Developing New Products The New Product Development Process Product Mortality Rates Strategy of introducing new products to respond quickly to customer or market changes

Creating Product Brands Branding Using symbols to communicate the qualities of a given product to create loyal consumers Types of Brands: National Brands Licensed Brands Private Brands

Product Packaging Attracts consumers Displays brand name Protects contents Supplies information Communicates features and benefits Provides features and benefits (e.g. easy pour spout)

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