Presentation is loading. Please wait.

Presentation is loading. Please wait.

3.02 Understand buying behaviors.

Similar presentations

Presentation on theme: "3.02 Understand buying behaviors."— Presentation transcript:

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.

Download ppt "3.02 Understand buying behaviors."

Similar presentations

Ads by Google