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 Chapter Seven Global Competitive Analysis

2. 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 7 - 1 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

3. 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 7 - 2 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.

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 7 - 3 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

5. 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 7 - 4 AWARENESS INTEREST KNOWLEDGE ATTITUDE LIKING PREFERENCE TRIAL PURCHASE SATISFACTION REPEAT LOYALTY THOUGHT AFFECT ACTION THOUGHT & AFFECT ACTION AFFECT New Brands: The “Hierarchy of Effects”

6. 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 7 - 5 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

7. 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 7 - 6 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

8. 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 7 - 7 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

9. 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 7 - 8 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

10. 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 7 - 9 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

11. 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 7 - 10 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

12. 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 7 - 11 Keys to Successful Relationship Marketing Adopt the Buyer’s Viewpoint Accept and Demand Transparency Grow With the Relationship Be Proactive