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BuyerBuyer DecisionDecision MakingMaking ProcessProcess

Buyer Buyer Decision Decision Making Making Process Process

SourcesSources ofof InformationInformation

Personal
Personal
Public
Public
Commercial
Commercial
Experiential
Experiential

Information Search Sources of Information

Personal sources—family and friendsInformation Search Sources of Information Commercial sources— advertising, Internet Public sources—mass media,

Commercial sources— advertising, InternetSources of Information Personal sources—family and friends Public sources—mass media, consumer organizations

Public sources—mass media, consumer organizationsand friends Commercial sources— advertising, Internet Experiential sources— handling, examining, using the

Experiential sources— handling, examining, using the productand friends Commercial sources— advertising, Internet Public sources—mass media, consumer organizations

Public sources—mass media, consumer organizations Experiential sources— handling, examining, using the product

THETHE EXPECTANCYEXPECTANCY VALUEVALUE MODELMODEL

A j

=

n

Σ B ij x i i

i=1

SetsSets inin ConsumerConsumer DecisionDecision MakingMaking

Sets Sets in in Consumer Consumer Decision Decision Making Making

EvaluationEvaluation toto PurchasePurchase

Evaluation Evaluation to to Purchase Purchase

CustomersCustomers UsageUsage andand DisposalDisposal ofof ProductsProducts

Customers Customers Usage Usage and and Disposal Disposal of of Products Products

BusinessBusiness MarketsMarkets

Business Business Markets Markets

MajorMajor TypesTypes ofof BuyingBuying SituationsSituations

Straight rebuy is a routine purchase decision such as reorder without any modification

Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers

New task is a purchase decision that requires thorough research such as a new product

WhatWhat IsIs aa Product?Product?

A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

WhatWhat IsIs aa Product?Product?

Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

Components Components of of the the

Market Market Offering Offering

Value-based prices

Attractiveness of the market offering
Attractiveness
of the market
offering

Product features and quality

Services mix and quality

TypesTypes ofof ConsumerConsumer ProductsProducts

Products Products Consumer Consumer Business Business Products Products Products Products Convenience Convenience
Products Products
Consumer Consumer
Business Business
Products Products
Products Products
Convenience Convenience
Shopping Shopping
Specialty Specialty
Unsought Unsought
Products Products
Products Products
Products Products
Products Products

TypesTypes ofof ConsumerConsumer ProductsProducts

Convenience

Product

Shopping

Product

Specialty

Product

Unsought

Product

Increase market share among A relatively existing inexpensive customers item that merits little shopping effort

Increase market share among A relatively existing inexpensive customers item that merits little shopping effort

A product Attract that new requires customers comparison to

shopping, existing because products it is usually more expensive and found in fewer stores

A particular Create new item products for which for

Market

consumers search extensively and

present markets

Diversification

Development are reluctant to accept substitutes

A product Introduce unknown new products to the potential buyer into or a new known markets product that the buyer does not actively seek

unknown new products to the potential buyer into or a new known markets product that the

ProductProduct Items,Items, Lines,Lines, andand MixesMixes

Product Product Item Item

A A specific specific version version of of a a product product

that that can can be be designated designated as as a a

distinct distinct offering offering among among an an

organization’s organization’s products. products.

Product Product Line Line

A A group group of of closely-related closely-related

product product items. items.

Product Product Mix Mix

All All products products that that an an

organization organization sells. sells.

ProductProduct item,item, productproduct line,line, andand productproduct mixmix

Product Product item, item, product product line, line, and and product product mix mix

LineLine StretchingStretching

Down-Market Down-Market Stretch Stretch
Down-Market Down-Market Stretch Stretch
Up-Market Up-Market Stretch Stretch
Up-Market Up-Market Stretch Stretch
Two-Way Two-Way Stretch Stretch
Two-Way Two-Way Stretch Stretch

Line Filling

Line Filling
DELIGHTING CUSTOMERS BOMBAY TAXI No: MRP 3676 Services Offered Cigarettes /Match box,on the house Newspapers
DELIGHTING CUSTOMERS
BOMBAY TAXI No: MRP 3676
Services Offered
Cigarettes /Match box,on the house
Newspapers
Thought pad and pen
Telephone Directory
Railway and Airline Timetable
Suggestion/Complaint book
Tape recorder at your control
First Aid box
Postal stamps
Stationery
Calendar
Watch

PRODUCT VALUE RINGS

PRODUCT VALUE RINGS

Product

Services

Features, Performance, Conformance, Durability, Reliability, Repairability, Style, Design, Packaging

Delivery, Installation, Customer Training, Information & Consultancy, Service, Repair etc.

Personnel Competence, Courtesy, Credibility,Reliability Responsiveness, Communication

Image

Courtesy, Credibility,Reliability Responsiveness, Communication Image Symbol, Logo,Brand,Media,Atmosphere,Events

Symbol, Logo,Brand,Media,Atmosphere,Events

Courtesy, Credibility,Reliability Responsiveness, Communication Image Symbol, Logo,Brand,Media,Atmosphere,Events
Courtesy, Credibility,Reliability Responsiveness, Communication Image Symbol, Logo,Brand,Media,Atmosphere,Events
MEANINGFULMEANINGFULMEANINGFULMEANINGFUL DISTINCTIVEDISTINCTIVEDISTINCTIVEDISTINCTIVE &&&&
MEANINGFULMEANINGFULMEANINGFULMEANINGFUL
DISTINCTIVEDISTINCTIVEDISTINCTIVEDISTINCTIVE &&&& UNIQUEUNIQUEUNIQUEUNIQUE
SUPERIORSUPERIORSUPERIORSUPERIOR TOTOTOTO COMPETITIONCOMPETITIONCOMPETITIONCOMPETITION
PREPRE-PREPRE--EMPTIVE-EMPTIVEEMPTIVEEMPTIVE
COMMUNICABLECOMMUNICABLECOMMUNICABLECOMMUNICABLE
AFFORDABLEAFFORDABLEAFFORDABLEAFFORDABLE
PROFITABLEPROFITABLEPROFITABLEPROFITABLE
I: Introduction II: Growth III: Maturity IV: Decline Sales Profit I II III IV Time
I: Introduction
II: Growth
III: Maturity
IV: Decline
Sales
Profit
I
II
III
IV
Time
Sales

THE PRODUCT LIFE CYCLE

Sales

ProductProduct LifeLife CyclesCycles

  INTRODUCTION   GROWTH MATURITY   DECLINE
 

INTRODUCTION

 

GROWTH

MATURITY

 

DECLINE

Product

Limited models Frequent changes

More models Frequent changes.

Large number of models.

Eliminate

Strategy

unprofitable

   

models

Distribution

Limited Wholesale/ retail distributors

Expanded dealers. Long- term relations

Extensive. Margins drop. Shelf space

Phase out unprofitable outlets

Strategy

       
   

Awareness.

Aggressive ads. Stimulate demand

Advertise.

Phase out

Promotion

Strategy

Stimulate

demand.Sampling

Promote

heavily

promotion

 

Fall as result of competition & efficient produc- tion.

Prices fall

 

Prices stabilize at low level.

 

High to recoup development costs

Pricing

(usually).

Strategy

Time

Prices stabilize at low level.   High to recoup development costs Pricing (usually). Strategy Time