Presentation on theme: "Consumer Motivation Part II: The Buying Process BMI3C."— Presentation transcript:
Consumer Motivation Part II: The Buying Process BMI3C
The Buying Process When a consumer is looking for a major purchase (eg. cars, appliances, etc.), they usually follow the five steps of the buying process
Stage 1: Identify a Need At the first stage in consumer buying behavior, a person begins to recognize a problem or desire Only once theyve identified some problem (i.e. Im hungry or I need a new coat) can they begin searching for a solution Marketing at this stage is about helping people identify problems May include creating problems (think cosmetics or weight loss products)
Stage 2: Search for a Solution After a problem or desire has been identified, the consumer begins searching for a solution The buyer may consider multiple solutions The goal at this point in the buying process is to get your product or service in front of the consumer Make them aware of your solution
Stage 3: Evaluate Options Once the consumer understands their situation and has researched possible solutions, the buying process enters an evaluation period The 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 solution Branding and product differentiation are extremely important tools of persuasion during this stage
Stage 4: Decide and Purchase After a comprehensive review of solutions and specific products and services, the consumer makes a purchase decision At this point in the buying process, supporting information needs to be provided to reinforce the decision to buy Depending on your product or service, you may need to provide different payment options or billing terms
Stage 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 purchases Use customer support to strengthen the buyer's perception that they made the right purchase decision
Impulse Buying Skips over the whole buying process A want or need is felt when the product is seen and an immediate impulse decision to buy occurs
The 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)
Example How have you applied the steps in the buying process? Worksheet
What 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?
Industrial Customers The rational motivational factors are the most important in profiling an industrial consumer Often buyers in retail will visit international trade shows and manufacturers showrooms to find new products to carry in their stores The main buying motive is consumer demand and profitability Rational motives are usually focused on the profitability of the company i.e. increasing sales and reducing expenses. Quality, convenience, store appeal are also factors.
Tendering If a government agency wishes to make a major purchase they must tender the article which they wish to buy This is an official notice made to the public of their wish to make a purchase All interested companies will bid on this purchase The lowest bid usually gets the sale This is to prevent bribery and corruption when govt spending is involved Tendering is also done in the private sector, but it is not required
Activity You have just won $100,000 and would like to buy a car List 5 essential features that you would want in your car You are the purchasing agent for the RCMP and are in charge of selecting a model of car to use as a fleet car List 5 essential features that you would want in this car