1. Unit 1: Marketing
Buyer behaviour
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2. 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?
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3. 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?
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4. Buyer behaviour
To understand how to analyse buyer behaviour, specific questions must always be asked:
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5. Buyer behaviour
Why do we buy
What
Where
How
When
we buy?
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6. 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
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7. The factors that influence buyer behaviour
Environment
Personal Motivation
Psychological
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8. Exercise 1
What examples of environmental factors can you think of that could affect buyer behaviour?
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9. Personal factors Age Life cycle Occupation Economic well being
Lifestyle
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10. 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)
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11. 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)
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12. 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
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13. 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’
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14. Organisational buying behaviour
Looks at the buyer behaviour between businesses
Factors which influence:
Environmental
Organisational
Interpersonal
individual
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15. Environmental Level of demand Economic outlook Cost of money
Political and regulatory requirements
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16. Organisational Objectives Procedures Structures and systems
Credit facilities/requirements
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17. Interpersonal
Use of power
Conflicts
Relationships
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18. Individual
Personal characteristics of the buyers such as age, education, personality, position in the company
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19. 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
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20. Further research Course book chapter 5 Maslow’s Hierarchy of Needs
DMUs and how they are made up
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