1. 3.02 Understand buying behaviors.
MARKETING
3.02 Understand buying behaviors.

2. 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

3. 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)

4. 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.

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

6. 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.

7. 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

8. Consumer Information Sources
Product Testing Organizations
Media
Government
Business
Personal

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

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

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

12. 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.

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

14. 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

15. 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

16. 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.

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

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