Philips Kotler Marketing Management Essay

Analyzing Consumer MarketsSince market starts from the guest, it is of primary importance to understand the psyche of the customers and their buying motives. This chapter talks about the various behavioural patterns that arrange the decision making process of a customer. A marketer get hold ofs to understand these factors affecting the customers purchase decisions so as to design an appropriate marketing strategy.Factors affecting Consumer Buying demeanour1. Cultural Factorsa. Culture Frames traditions, values, perceptions, preferences. E.g. Child learning from family & surroundings.b. Sub-culture Provides more specific identification and socialization. Include nationalities, religions, racial groups and geographic regions. c. Social Class Homogeneous and enduring divisions in a society which are hierarchically ordered. Members partake similar tastes and behaviour. 2. Social Factorsa. Reference Groups Have direct or indirect influence on persons attitude and behaviour. Pr imary groups regular interaction, e.g. family, friends, neighbours. Secondary groups religious, professional, trade union groups. Aspirational Groups ones that a person hopes to join. divisible groups whose values or behaviour and individual rejects.b. Family Family of orientation parents and siblings. Acquires orientationtowards religion, politics and economics, sense of personal ambition, self-importance worth and love. Family of procreation spouse and children. More direct influence on buying behaviour.c. character references and Status Role consists of activities a person is expected to perform. Each role carries a position. Marketers must be aware of the status symbol of each product.Chapter 6 Analyzing Consumer Markets3. Personal Factorsa. Age and Stage in the Life Cycle Tastes are age related. Markets should also consider critical life events or transitions.b. Occupation and frugal Circumstances Economic Circumstances like spendable in incur, savings, assets, debts, borrowing power etc affect consumption patterns.c. Personality and Self model Personality, set of distinguishing characteristics that influence his/her buying behaviour. Consumers match brand personality with their ideal self concept preferably of their actual self concept.d. Lifestyle and Values4. Psychological Factorsa. Motivation Freuds theory of id, ego and first-rate ego Maslows need hierarchy theory Herzbergs two factor model.b. Perception carry out by which we select, organize and interpret tuition inputs. In marketing, perceptions are more important than reality. c. Learning Induces changes in behaviour arising from experience. Marketers can build demand by associating the product with positive drives. d. Memory Short terminal and long term memory. Build brand knowledge and brand recall as node in memory.ProblemRecognitonInformationSearchEvaluation ofAlternativesPurchaseDecisionPostpurchase doingsThe Buying Decision executeProblem Recognition Customer recognises a need triggered by internal or external stimuli. Marketers need to identify circumstances that trigger needs.Information Search Two levels of involvement Heightened attention when person becomes more receptive to information about the product. At next level consumer may enter into active information search, looking for reading material, phoning friends etc.Evaluation of Alternatives Factors influencing a particular choice over the other embarrass attitudes, beliefs and expectancy value.Purchase Decision Between purchase intention and purchase decision, 2 intervening factors come into play- Attitudes of others and Unanticipated situational factors. Marketers should understand that these factors provokerisk and should provide information to reduce it.Post purchase Behaviour Marketers must monitor postpurchase satisfaction, postpurchase actions, and postpurchase product uses.Chapter 6 Analyzing Consumer MarketsTrendsLevel of customer involvementInvolvementSignificant unimportant Differences in BrandsHighComplexBuyingBehaviourLowVariety SeekingDissonance reducing everyday1. Complex Buying Behaviour When a customer purchases something for the first time.2. Variety Seeking Consumers provide keep switching varieties just out of boredom. Eg- Biscuits. Marketer should keep introducing new products anddisplay the product prominently.3. Habitual Buying the same thing out of habit and not out of loyalty. Distribution network should be excellent in this show window. Maintain consistency in product and advertising.4. Dissonance Reducing In case of repeat purchase of same product.