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. Federal Trade Commission (FTC)
Works to prevent fraud, deception, and unfair business practices.
Enforces truth in advertising
Protects against predatory or discriminatory lending or unfair loan servicing
Do NOT Call Registry and mail fraud
Works to prevent identity theft -- including Fair Credit Reporting Act

13. Food and Drug Administration (FDA)
Responsible for protecting the public health by assuring the safety and security of:
human and veterinary drugs
biological products
medical devices
our nation’s food supply
cosmetics
products that emit radiation

14. US Dept of Agriculture (USDA)
Keeps our food sources safe
Inspect fruit & plants imported from foreign countries
National School Lunch Program
Inspects meat, poultry, and eggs
Sets nutritional guidelines (Food Pyramid)

15. 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.

16. Business Sources
Better Business Bureau (BBB) provides facts about products or services.
A non-profit organization dedicated to building fair, honest relationships between businesses and consumers
Monitors a company’s record for addressing a customer’s complaint.
NOT a government organization

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

18. Traditional Retailers
Department Stores
Provide broad product lines
Many customer services – Salon, gift wrapping, eye care
Clearly defined departments
Ex. Macy’s, JC Penny, Belk’s
Discount Stores
Sells a variety of items at reasonable or low prices; often nationwide stores; practical displays and not always very organized; some service is available
Examples: Target, Wal-Mart, Dollar General

19. Traditional Retailers
Specialty Stores
Sell only one kind of merchandise – clothing stores, athletic goods stores, hardware stores; services vary, selling methods and prices vary
Ex: Foot Locker, Best Buy
Supermarket
Type of grocery store
Large selection of products
Organized as departments - produce, meat, deli
Ex. Harris Teeter, Bi-Lo

20. Traditional Retailers
Convenience Store
Provide popular items, offer long operating hours, and are usually located in highly accessible areas
Usually higher priced
Ex. 7-Eleven

21. Contemporary Retailers
Superstores
Extremely large, similar to supermarkets, but also sell mass merchandise items like clothing, garden products, and books
Examples: Wal-Mart Supercenter, Super Target
Specialty Superstores
Provide wide variety of limited products at low prices
Ex. – IKEA, Home Depot

22. Contemporary Retailers
Warehouse Club
Huge selections of food and nonfood items at low prices and in bulk quantities
Often require memberships
Ex. Costco and BJ’s
Factory Outlets
Operated by the manufacturer and carry only that manufacturer’s brand or an affiliated manufacturer
Examples: Nike, Ralph Lauren, Nautica

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