Presentation on theme: "Consumer Motivation Part II: The Buying Process"— Presentation transcript:
1Consumer Motivation Part II: The Buying Process BMI3C
2The Buying ProcessWhen a consumer is looking for a major purchase (eg. cars, appliances, etc.), they usually follow the five steps of the buying process
3Stage 1: Identify a NeedAt the first stage in consumer buying behavior, a person begins to recognize a problem or desireOnly once they’ve identified some problem (i.e. “I’m hungry” or “I need a new coat”) can they begin searching for a solutionMarketing at this stage is about helping people identify problemsMay include “creating” problems (think cosmetics or weight loss products)
4Stage 2: Search for a Solution After a problem or desire has been identified, the consumer begins searching for a solutionThe buyer may consider multiple solutionsThe goal at this point in the buying process is to get your product or service in front of the consumerMake them aware of your solution
5Stage 3: Evaluate Options Once the consumer understands their situation and has researched possible solutions, the buying process enters an evaluation periodThe consumer starts to take a close look at specifics, such as the company providing the solution, the brand name of the product, and the features and benefits of each solutionBranding and product differentiation are extremely important tools of persuasion during this stage
6Stage 4: Decide and Purchase After a comprehensive review of solutions and specific products and services, the consumer makes a purchase decisionAt this point in the buying process, supporting information needs to be provided to reinforce the decision to buyDepending on your product or service, you may need to provide different payment options or billing terms
7Stage 5: Evaluate the Purchase Was this a good purchase? Would I buy from this company again?Marketers want to build strong relationships with customers and encouraging repeat purchasesUse customer support to strengthen the buyer's perception that they made the right purchase decision
8Impulse BuyingSkips over the whole buying processA want or need is felt when the product is seen and an immediate impulse decision to buy occurs
9The Impact of the Internet How does the internet affect the buying process during….Stage 2 (information gathering)Stage 3 (assessing the alternatives)Stage 5 (post purchase evaluation)
10Example How have you applied the steps in the buying process? Worksheet
11What about Industrial Marketing? Does the buying process still apply to industrial goods?If OTHS were buying supplies or equipment, what motivational factors would be most important?Biological, Emotional, Rational, or Social?
12Industrial CustomersThe rational motivational factors are the most important in profiling an industrial consumerOften buyers in retail will visit international trade shows and manufacturers’ showrooms to find new products to carry in their storesThe main buying motive is consumer demand and profitabilityRational motives are usually focused on the profitability of the companyi.e. increasing sales and reducing expenses.Quality, convenience, store appeal are also factors.
13TenderingIf a government agency wishes to make a major purchase they must tender the article which they wish to buyThis is an official notice made to the public of their wish to make a purchaseAll interested companies will bid on this purchaseThe lowest bid usually gets the saleThis is to prevent bribery and corruption when gov’t spending is involvedTendering is also done in the private sector, but it is not required
14Activity You have just won $100,000 and would like to buy a car List 5 essential features that you would want in your carYou are the purchasing agent for the RCMP and are in charge of selecting a model of car to use as a fleet carList 5 essential features that you would want in this car