6
Marketing
12/12/2018 KITEC 6/F
Buying Decision Behavior
Buying Decision Behavior
Significance
Example
Involvement
H
L
L
H
Complex
Dissonance Reducing
Habitual
Variety seeking
H
H
L
L
Know how to buy a good laptop
Don't know how to buy a good laptop
Buy match
Buy chips
Buying Decision Behavior
Frequency
Knowledge
Price
H
H
L
L
H
L
L
H
Complex
Dissonance Reducing
Habitual
Variety seeking
Low quality of after sale service
Have Post-purchase dissonance
Habit > Brand loyalty
V -> H , Special deal / Coupon
L
L
H
H
S T D P
S
Segmentation
Age, Gender, Family life cycle, Income, Occupation
North, West, South, East, country, state
Activity, Interest, Opinion
Occasion, Benefit, User status, Usage Rates, Loyalty status
Demographic
Geographic
Psycho-graphic
Behavioral
T
Differentiated Marketing strategy
Targeting
Company
Undifferentiated Marketing strategy
Segment 1
Segment 2
Market
Company
Segment 3
Common needs of consumers
Largest no. of buyers
Company
Concentrated Marketing strategy
Micro-marketing strategy
Segment 1
Segment 2
Local marketing
Individual marketing: individual customers
Company
Segment 3
D
C P I S P
Channel Differentiation: Channel's coverage
People Differentiation: Hiring, training better than competitors (PR-> Personal selling)
Image Differentiation: (K O L, Brand Logo)
Services Differentiation: Speedy, convenient, careful delivery...
Product Differentiation: Features, Durability, Performance...
P
Product &
Service
Product Life-Cycle
Costs
Sales and Profits
Product Life-Cycle
Introduction: Product awareness, High distribution costs, High sales promotion costs
High Price, Basic product
Growth: Awareness in the mass market, increase outlets, reduce expenditure,
Price to penetrate market, warranty
Maturity: Difference and benefits, more intensive, increase->encourage to switch
Match or best competitors, Diversify brand and model
Decline: Retain loyal customers, selective, minimal level,
Cut price, Phase out weak items
Pricing
New Product
New product pricing strategies
- Better quality & image = $H
- Competitors hard to enter the market/undercut the high price
- market is $ sensitive ->$L
- Must keep out competition, $L
Market-Skimming
(second discrimination)
Market-Penetration
(759)
(win the large market share rapidly)
Product Mix
Product Mix Pricing Strategies
Product Line
Optional-Product
By-Product
Captive-Product
Product-Bundle
Set the price on different product depends on their different features.
MS office (PC, business)
Pricing optional or accessory product along with the main product
Laptop with a hard drives, wireless mouse/keyboard
Offset or deposing them and increase the competitiveness of main product
Meat and cow's eye
Pricing product must be used along with a main product
Kindle readers with digital book, music... (fixed fee and variable usage rate)
Combining several product and offering a bundle at a reduced price
McDonalds (Burger, fries, soft drink)
Distribution
Distribution
Sell as many outlets as possible
Convenience shop : 7-11
Intensive
Exclusive
Selective
One or few dealers
Car Dealer
Use of more than one, but fewer than all
Shopping goods : Uniqlo, MUJI
Promotion
Inform prospective buyers about the benefits
Persuade them to try it
Remind them later about the benefits they enjoyed by using the product
A D S P P
Promotion Mix (Around the brand message)
Advertising
...
Direct & Digital marketing
Catalogs, telephone marketing
Sales Promotion
Discounts, ad. specialties
Personal Selling
Sales presentation, trade show
Public Relation
...
- Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor
- Engaging directly to targeted individual consumers to have an immediate response and build lasting customer relationship
- Short term incentives to encourage the purchase or sale of a product or service
- Personal customer interaction by the firm's sales force the purpose of making sales and building customer relationships
- Building a good relations with the company's various public by obtaining favorable publicity, building up a good corporate image and handling off unfavorable rumors
Public Relation
Function
Public Relation's Function (Mission)
Press relations or Press agency attract attention
Product publicity Advertising Specialties
Public affairs Relationships (national, local community)
Lobbying Relationships (legislators, government officials) influence legislation regulation
Investor relations Relationships (shareholders, other in the financial community)
Development Working w/ donors or members of nonprofit org. gain financial/volunteer support
Tools
Tools
Annual report, press release, company newspaper...
Videos
Product publicity
Improve public goodwill
Materials (Written, Audiovisual, Corporate identity)
Special event, Public service activities
News, Web & Social Media
YouTube, Facebook...
Favorable news