7-1

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The Marketing plan
Segmentation
Market survey
Identifying needs and wants
Choosing a target market(s)
Developping a market offering
Measuring
outcomes
Product Price Place Promotion
Targeting
Positioning
7-2
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In this chapter, we focus on two

In this chapter, we focus on two
questions:
questions:

How does the buyer make purchasing

How does the buyer make purchasing
decisions?
decisions?

How do the buyers characteristics cultural,

How do the buyers characteristics cultural,
social, personal, and psychological influence
social, personal, and psychological influence
buying behavior?
buying behavior?
Understanding the consumer behaviour
7-3
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The 5 dimensions of buyer behaviour
How do they buy? What are their choice criteria?
Consumers
Who is important?
Where do
they buy?
When do
they buy?
7-4
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Influences on consumer purchasing behaviour

motivation motivation

beliefs and attitudes beliefs and attitudes

information processing information processing

personality personality

lifestyle lifestyle

lifecycle lifecycle

culture culture

social class social class

geodemographics geodemographics

reference groups reference groups

Personal influences
Social influences
onsumer
The buying situation
7-5
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Buying Roles
Buying Roles

Initiator
Initiator

Influencer
Influencer

!ecider
!ecider

"uyer
"uyer

#ser
#ser
Who buys?
$ho attempts to persuade others in the group
concerning the outcome of the decision
$ho begins the process of considering a
purchase
$ho conducts the transaction
%he actual consumer&user of the product
$ith the power and&or financial authority to
make the ultimate choice

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Centreparcs
Centreparcs target
their aderts at
!others "ho !ay
act as #initiators$ in
the decision to
p%rchase a &a!ily
holiday.
11
7-7
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The onsumer !ecision"Making
#rocess
$ive"%tage
Model of the
onsumer
&uying
#rocess
Internal search and e'ternal search in order to
build up the awareness set
(eed recognition is essentially functional,
emotional or psychological)
(eed inhibitors*
+ognitive dissonance
,voked set)
-evel of involvement*
7-'
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%uccessive %ets Involved in ustomer !ecision
Making
7-(
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'valuation and purchase models
(ormative
beliefs
#ersonal
beliefs
#urchase
intentions
#urchase
)ttitudes
%ub*ective
norms
High involvement+ the $ishbein and )*,en model of reasoned action
Trial )wareness
-epeat
#urchase
.ow involvement+ the 'hrenberg and /oodhart repeat purchase model
7-10
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High" and low"involvement situations+
marketing implications

Highinvolvement
Highinvolvement

.essages with high information content about the .essages with high information content about the
positive consequences of buying through print media) positive consequences of buying through print media)

/ersuasive communications should also focus on how /ersuasive communications should also focus on how
the consumer views the influence of important others) the consumer views the influence of important others)

0alespeople ensures the consumer is aware of product 0alespeople ensures the consumer is aware of product
attributes and benefits* attributes and benefits*

-owinvolvement
-owinvolvement

0eek topofmind awareness through repetitive 0eek topofmind awareness through repetitive
advertising and providing positive reinforcement 1trial advertising and providing positive reinforcement 1trial
through sales promotion2) through sales promotion2)

.essages should be short wih high repetition through %3* .essages should be short wih high repetition through %3*
7-11
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!id I make the right decision?

+ognitive dissonance is likely to increase:

+ognitive dissonance is likely to increase:

$ith the
$ith the
expense
expense
of purchase)
of purchase)

$hen the decision is

$hen the decision is
difficult
difficult
)
)

$hen the decision is

$hen the decision is
irrevocable
irrevocable
)
)

$hen the purchaser has a tendency to

$hen the purchaser has a tendency to
experience anxiety
experience anxiety
*
*
7-12
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hoice riteria Used When 'valuating
)lternatives
Technical-
Reliability
Durability
Performance
Style/looks
Comfort
Delivery
Convenience
Taste
Economic-
Price
Value for money
Running costs
Residual value
Life-cycle costs
Social-
Status
Social belonging
Convention
Fasion
Personal-
Self-image
Risk reduction
!tics
!motions

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12
SEBO
)he i!portance o&
relia*ility is stressed
in this adert &or the
+,-. /eli0 ac%%!
cleaner.

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Mercedes recognises the importance of experiential
consumption in this advertisement for its cars.
1
7-15
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What does highlight this ad for the 0W #olo?
0W highlights the durability and toughness of its #olo model

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1n which criteria does
rely this Tango poster?
This poster advertising
tango relies on evoking
emotions to sell a soft
drink
7-17
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,'tended problem
,'tended problem
solving
solving

-imited problem
-imited problem
solving
solving

Habitual problem
Habitual problem
solving
solving
The buying situation influence
%he consumer has some e'perience
with the product so that an information
search may be mainly internal
High degree of information search and
close e'amination of alternative
solutions using many choice criteria
4ccurs when a consumer repeatbuys
the same product with little or no
evaluation of alternatives
7-1'
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!eterminants of the e2tent of problem"
solving
%elf"image
#erceived risk
%ocial factors
Hedonism
!ifferentiation
and number
of alternatives
.evel of
involvement
Time
pressure
'2tent of
problem"
solving
7-1(
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The consumer decision"making process
and level of purchase involvement
,'tensive evaluation
including media
search
-imited evaluation /ostpurchase
evaluation of the
alternatives
.any alternatives
evaluated on many
choice criteria
5ew alternatives
evaluated on few
choice criteria
,valuation of
alternatives and the
purchase
,'tensive search -imited search Information search
.a6or, personally
important
.inor
(eed recognition&
/roblem awareness
High Involvement -ow Involvement 0tage
7-20
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Influencing &uyer &ehavior+ Maslow3s
theory
Maslow3s
Hierarchy of
(eeds

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Special K
2ellogg$s +pecial 2 &%l&ills the
needs o& their c%sto!ers &or a
tasty lo" &at diet.
4
7-22
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) onsumer3s &rand &eliefs about omputers
5 10 8 6 C
3 8 9 8 B
8 7 3 4 D
4 6 8 10 A
Price
i!e an"
#eight
$ra%hics
Ca%abi&ity
'emory
Ca%acity
Attribute Com%uter
7 +ustomers are asked to weight each attribute
7 +alculate the average perceived values
7 !ecide a strategy 1real repositionning, psychological repositionning,
competitive depositionning2
7-23
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What are the main marketing implications
of beliefs and attitudes?

Product design
Product design
, matching product attributes)
, matching product attributes)

Persuasive communications
Persuasive communications
, reinforcing e'isting
, reinforcing e'isting
positive beliefs and attitudes, correcting
positive beliefs and attitudes, correcting
misconceptions, and establishing new beliefs)
misconceptions, and establishing new beliefs)

Pricing
Pricing
, matching price with customers beliefs
, matching price with customers beliefs
about what a 8good9 product would cost*
about what a 8good9 product would cost*
7-24
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Information processing influence

Perception
Perception

Selective attention Selective attention, which implies that advertisements, , which implies that advertisements,
logos and packaging need to be attentiongetting) logos and packaging need to be attentiongetting)

Selective distorsion Selective distorsion, which implies that messages should , which implies that messages should
be presented clearly) be presented clearly)

Selective retention Selective retention, which implies that messages that , which implies that messages that
are in line with e'isting beliefs and attitudes are more are in line with e'isting beliefs and attitudes are more
likely to be remembered* likely to be remembered*

Learning
Learning

Conditionning learning Conditionning learning suggests that associating a brand suggests that associating a brand
with humour or e'citement will carry over to the brand) with humour or e'citement will carry over to the brand)

Cognitive learning Cognitive learning suggests that statements in an suggests that statements in an
advertisement may be remembered* advertisement may be remembered*
7-25
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The 0).% segmentation system+ )n 4"part typology

:roups with High ;esources :roups with High ;esources

<* <* =ctuali>ers =ctuali>ers
?* ?* 5ulfilleds 5ulfilleds
@* @* =chievers =chievers
A* A* ,'periencers ,'periencers

:roups with -ower ;esources :roups with -ower ;esources

<* <* "elievers "elievers
?* ?* 0trivers 0trivers
@* @* .akers .akers
A* A* 0trugglers 0trugglers
7-21
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)dvertising the reference group allows to ?
(
re"uce the e)o*e" set +or a gi)en nee",
(
create an emotion so that the %urchase "ecision is &ess thought-
&ess in+ormation.see*ing- &ess ana&ytica& reasoning an" %ays &ess
attention to negati)e +actors,
(
re"uce cogniti)e "issonance through se&ecti)e retention/
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13
Lifecycle stages
At home
single
Young
couple no
children
Young
parents
Middle-
aged
parents
Empty
nester
married
working
Empty
nester
married
retired
Solitary
retired
Young
divorced no
children
On own
young
Young
divorced
with
children
M-aged
divorced
no depnt
children
M-aged
divorced
with
children
Middle-aged
married no
children
Middle-aged
divorced no
children
On own
middle-aged
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Social class categoriation
I3+,4) )5-6, 4.3.