The Marketing plan

Market survey
Segmentation

Identifying needs and wants

Targeting

Choosing a target market(s) Developping a market offering

Positioning

Product

Place

Price Measuring outcomes

Promotion

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Understanding the consumer behaviour

In this chapter, we focus on two questions:

How does the buyer make purchasing decisions? How do the buyers characteristics cultural, social, personal, and psychological influence buying behavior?

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The 5 dimensions of buyer behaviour

Who is important?

How do they buy?

What are their choice criteria?

Consumers

Where do they buy?

When do they buy?

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Influences on consumer purchasing behaviour

The buying situation

Personal influences
motivation beliefs and attitudes information processing personality lifestyle lifecycle

Social influences culture social class geo-demographics reference groups

Consumer

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Who buys? Buying Roles

Initiator Influencer Decider Buyer User
Who begins purchase the process of considering a

Who attempts to persuade others in the group concerning the outcome of the decision With the power and/or financial authority to make the ultimate choice Who conducts the transaction The actual consumer/user of the product

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Centreparcs
Centreparcs target their adverts at mothers who may act as initiators in the decision to purchase a family holiday.

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The Consumer Decision-Making Process

Need recognition is essentially emotional or psychological; Need inhibitors. Internal search and external search in order to build up the awareness set Evoked set; Level of involvement. Five-Stage Model of the Consumer Buying Process functional,

Cognitive dissonance
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Successive Sets Involved in Customer Decision Making

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Evaluation and purchase models

High involvement: the Fishbein and Ajzen model of reasoned action Personal beliefs Attitudes Purchase intentions Normative beliefs Subjective norms Purchase

Low involvement: the Ehrenberg and Goodhart repeat purchase model Awareness Trial Repeat Purchase

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High- and low-involvement situations: marketing implications

High-involvement
Messages with high information content about the positive consequences of buying through print media; Persuasive communications should also focus on how the consumer views the influence of important others; Salespeople ensures the consumer is aware of product attributes and benefits.

Low-involvement
Seek top-of-mind awareness through repetitive advertising and providing positive reinforcement (trial through sales promotion); Messages should be short wih high repetition through TV.
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Did I make the right decision?

Cognitive dissonance is likely to increase:

With the expense of purchase; When the decision is difficult; When the decision is irrevocable; When the purchaser has a tendency experience anxiety.

to

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Choice Criteria Used When Evaluating Alternatives

TechnicalReliability Durability Performance Style/looks Comfort Delivery Convenience Taste SocialStatus Social belonging Convention Fashion

Price Value for money Running costs Residual value Life-cycle costs
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Economic-

PersonalSelf-image Risk reduction Ethics Emotions

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SEBO
The importance of reliability is stressed in this advert for the SEBO Felix vacuum cleaner.

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Mercedes recognises the importance of experiential consumption in this advertisement for its cars.

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What does highlight this ad for the VW Polo?

VW highlights the durability and toughness of its Polo model

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On which criteria does rely this Tango poster?

This poster advertising tango relies on evoking emotions to sell a soft drink

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The buying situation influence

Extended problemsolving Limited problemsolving Habitual problemsolving

High degree of information search and close examination of alternative solutions using many choice criteria The consumer has some experience with the product so that an information search may be mainly internal Occurs when a consumer repeat-buys the same product with little or no evaluation of alternatives

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Determinants of the extent of problemsolving

Self-image Perceived risk Social factors Hedonism Level of involvement

Differentiation and number of alternatives

Extent of problemsolving

Time pressure
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The consumer decision-making process and level of purchase involvement

Stage Need recognition/ Problem awareness Low Involvement High Involvement Major, personally important

Minor

Information search Evaluation of alternatives and the purchase Post-purchase evaluation of the alternatives

Limited search Few alternatives evaluated on few choice criteria Limited evaluation

Extensive search Many alternatives evaluated on many choice criteria Extensive evaluation including media search
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Influencing Buyer Behavior: Maslows theory

Maslows Hierarchy of Needs

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Special K
Kelloggs Special K fulfills the needs of their customers for a tasty low fat diet.

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A Consumers Brand Beliefs about Computers

Computer Memory Capacity A B C D 10 8 6 4 Graphics Capability 8 9 8 3 Attribute Size and Weight 6 8 10 7 Price 4 3 5 8

Customers are asked to weight each attribute Calculate the average perceived values Decide a strategy (real repositionning, psychological repositionning, competitive depositionning)
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What are the main marketing implications of beliefs and attitudes?

Product design, matching product attributes; Persuasive communications, reinforcing existing positive beliefs and attitudes, correcting misconceptions, and establishing new beliefs; Pricing, matching price with customers beliefs about what a good product would cost.

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Information processing influence

Perception
Selective attention, which implies that advertisements, logos and packaging need to be attention-getting; Selective distorsion, which implies that messages should be presented clearly; Selective retention, which implies that messages that are in line with existing beliefs and attitudes are more likely to be remembered.

Learning
Conditionning learning suggests that associating a brand with humour or excitement will carry over to the brand; Cognitive learning suggests that statements in an advertisement may be remembered.
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The VALS segmentation system: An 8-part typology

Groups with High Resources

1. Actualizers 2. Fulfilleds 3. Achievers 4. Experiencers

Groups with Lower Resources

1. 2. 3. 4. Believers Strivers Makers Strugglers

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Advertising the reference group allows to ?

reduce the evoked set for a given need; create an emotion so that the purchase decision is less thought, less information-seeking, less analytical reasoning and pays less attention to negative factors; reduce cognitive dissonance through selective retention.
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Lifecycle stages
Middle-aged divorced no children Middle-aged married no children Empty nester married working M-aged divorced no depnt children Empty nester married retired

Young divorced no children

At home single

Young couple no children

Young parents

Middleaged parents

Solitary retired

On own young

Young divorced with children

M-aged divorced with children On own middle-aged

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Social class categorization

INSERT TABLE 4.3.

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