MKTG 354 Lecture 4 Notes
MKTG 354 Lecture 4 Notes MKTG 354
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This 5 page Class Notes was uploaded by Savannah Baron on Saturday February 13, 2016. The Class Notes belongs to MKTG 354 at University of Mississippi taught by Hua Chen in Spring 2016. Since its upload, it has received 21 views. For similar materials see Professional Selling and Relationship Marketing in Marketing at University of Mississippi.
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Date Created: 02/13/16
Lecture 4 The Buying Process and Buyer Behavior I. Customer Strategy A carefully conceived plan that results in maximum customer satisfaction and responsiveness One major dimension of this strategy is to achieve a better understanding of the customer’s buying needs and motives II. Complex Nature of Customer Behavior Individual customers perceive the product in their own terms The customer is a person, not a statistic o These people have feelings, different perceptions of the same product, different needs/wants Companies that fully accept this basic truth are likely to adopt a one-to-one marketing strategy o No company has been able to do this with current technology o Basically, want to base our product on each individual customer III. Consumer v. Business Buyers a. Consumer Buyer Individuals and households who buy goods and services for personal consumption Decisions usually made by individuals Purchases often made based on brand reputation or personal recommendations with little or no product expertise Purchases based primarily on emotional responses to product or promotions Quick buying decisions 1. Types of Consumer Buying Situations Habitual buying situations: o Require very little consumer involvement o Brand differences usually insignificant o Ex) buying produce at the market Variety-seeking buying situations o Low customer involvement o Perceived brand differences Complex buying situations o High degree consumer involvement o Do research o Ex) buying a car Loyalty buying o Strong loyalty to one brand o Ex) Coke v. Pepsi loyalty b. Business Buyer Organizations that buy goods and services for use in the production of other products and services that are sold Purchases made for some purpose other than personal consumption Decisions frequently made by several people Purchases made according to precise technical specification based on product expertise May engage in lengthy decision process 1. Types of Business Buying Situations 3 major business-to-business buying situations o New-task buy Salespeople rely on consultative selling sells If someone is buying from you for the first time, they’ve never bought from you before o Straight rebuy Salespeople constantly monitor satisfaction Purchase relies on service (i.e., on- time delivery, technical support) Try to keep them with you as long as possible Maintain the relationship Try to expand based on this customer, want them to refer new customers to you o Modified rebuy Salespeople can provide service and anticipate changes They want to make a change to your performance, they may want to try out new suppliers Figure out why they want to change the contract/modify the standard Try to influence their standards to you can put yourself in a good position for competition IV. Steps in Buying Process The typical buying process o Needs awareness Make customer aware they should buy We cannot/don’t create needs, just trigger awareness of needs by providing information and basing that information on knowing the customer Salespeople can create value by determining problems and identifying solutions o Evaluation of solutions Salespeople can create value by providing information that will help achieve objectives Allow customer to make comparison o Resolution of problems Buyers often need help overcoming obstacles that prevent them from moving to purchase stage Give the information of yourself/company, but you cannot give too much information (this will cause the customer to incur an exhausting cost) Want to know how to convince customer, persuade them to choose us Are they rational buyers, do they buy on emotional feelings, what should we focus on? o Purchase Salespeople create value by arranging financing or supervising delivery and installation Make the transaction smooth; installation is correct, delivery is on-time Make customer comfortable with signing the contract, don’t let them cancel or regret o Implementation Value creation can involve timely delivery, superior installation, accurate invoicing, and follow-up contacts by the salesperson Now focus on service with customer Consultative Sales Process o Needs Discovery o Product selection o Need satisfaction o Service 6-Step Presentation Process o Approach o Needs discovery o Presentation o Negotiations o Close o Service V. Understanding Buying Processes Transactional process buyers o Salespeople can eliminate any unnecessary costs or delays Consultative process buyers o Salespeople focus attention on needs awareness and help customer evaluate solutions Strategic Alliance process buyers o Companies team up to gain mutual competitive advantage VI. Various Influences that Shape Customer Buying Decisions a. Basic Needs: Maslow Self-actualization: need for mastery, self-fulfillment Esteem: desire to feel worthy in eyes of others Social: identification with social groups, friendship Security: freedom from danger Physiological: food, shelter We focus on Esteem and Social needs to make a higher profit b. Group Influences Customer Roles o Math professors can dress more casually, their roles are instructors o Business professor has to dress in a suit, their roles are as consultants Reference Groups o You may want to buy a mac because your friends have macs o Following the standard of what kind of cars the people around you drive Social Class o Helpful for people to make decisions; they want to follow the standards of their social class o Wanting to live in a certain neighborhood, drive a certain car, vacation to a certain destination Culture and Subculture o What people believe, rules of society o Influence a lot of decisions o American cars are bigger because roads are wider; European car manufacturers would rather spend money on turbo engines than making their cars larger c. Buying Motives Buying motive: aroused need, drive, or desire that stimulates behavior to satisfy the aroused need Helpful to discover the “dominant buying motive” (DBM) 4 basic motive types: o Emotional Acts due to passion or sentiment Emotional appeals common If 2 products are identical, the salesperson who connects has the advantage Ex) a young girl always picks the pink toy o Rational Acts on reason or judgment Relatively free of emotion Salespeople gather, interpret, and disseminate customer-specific information o Patronage Buy from a particular firm Past experience is positive Relevant elements: superior service, product selection, competent sales staff Ex) 2 Newk’s in Oxford, but prefer one because of experience there o Product Buyer believes one product is superior to others Preferences for: specific brands, quality, price, design, or engineering Ex) choosing Nike over Asics, Adidas, New Balance, etc.
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