...Marketing Processes and Consumer Behavior Chapter Overview Many students think that marketing is merely sales or advertising. Actually, sales and advertising are just a small part of the overall marketing process. Think of a product that you buy often. You might not realize that everything about that product—from the time it is created, produced, packaged, and shipped to you—involves various facets of marketing. This chapter explains the concept of marketing and discusses the five forces that constitute the external marketing environment. It also explains the purpose of a marketing plan, identifies the four components of the marketing mix, and discusses the necessity of identifying market segments. As the chapter unfolds, many variables surrounding both the consumer and organizational markets are discussed, as well as a focus on distinguishing features between products and services and the importance of branding and packaging. The chapter also discusses the consumer buying process, organizational markets, and key considerations in the new product development process. Finally, it looks at the challenges that arise in adopting an international marketing mix and the ways in which small businesses can benefit from an understanding of the marketing mix. Learning Objectives A. Explain the concept of marketing and identify the five forces that constitute the external marketing environment. B. Explain market segmentation and how it is used in target marketing. ...
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...Market Research and Product Development By Kevin Ofor Abugu PhD Student – Cardiff Metropolitan University Introduction Organisations invest in new product development to ensure their future success in the market. Nevertheless most of the new products introduce into the market are more likely to fail than succeed (Viaene, 1999). Hoban (2002) posits that only one-third of the new products launched survive. Young (Ibid) states that the rate of new product failure is as high as 90 to 95 percent. The failures of the new products in mobile industry, automobile industry, beverage industry, etc. are few examples. Hence a thorough market research should be employed to precede new product development (Cooper & Klienschmidts, 2000). This elucidates the importance of market research in new product development (NPD). Companies must continuously acquire market information to be able to adapt a new product into the market (Cooper & Klienschmidts, Ibid). Such effort is expected to bring the customers’ need, wants and perception into the new product development process. For example, Cisco introduced a system through which her B2B customers share their ideas, design and order products online. Similarly, IBM introduced a forum through which her customers exchange information concerning the development of a new product. The information gathered through the various means is transmitted to the R&D through the communication with marketing. Marketing research acquires customer information...
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...are forums that have brought new methods of communication, socialization and most importantly a platform where business information is exchanged. The social media platforms have been used as tools of marketing whereby positive information and recommendations on products have been made through from one friend to another. Positive messages are the most common among sharing friends. Products that have received a positive reception have been known to do very well in the market. However, any negative comments about a product or service shows a similar reaction, since the social media networks have a large audience hence the information here travels fast and wide. Question 2 leveraging strategy for enhancing brand equity The coca cola company has been well known for the production of energy and non alcoholic beverages. It is a brand that has a well defined, wide global market share. The company has been able to utilize leveraging strategies especially through the integration of technology for paying services through linking itself to payment strategies. The Coca-Cola has been involved in upgrading strategies for vending strategies that diversify vending payments to allow for payment through mobile phones and other means of payment. These strategies have been essential in ensuring the company’s products reach to the consumers more conveniently, is in line with current technology hence it is a suitable strategy to ensure company equity. Linking the products to current scientific invention...
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...value from customers in return.” Consumer needs and wants For every company is essential to analyze the market. Tasty Preserve needs to find out where they are on market, who are their consumers and how often people consume jam.(Kotler & Armstrong 2012). Tasty Preserve has to understand customers’ needs. They will sell jam on the market, jam is consumed in the morning at breakfast by people without limit of age, relating with that Tasty Preserve will need to understand this point, because consumers use to buy products in terms of their priority, consumers want quality products at minimum price. To be more attractive at the beginning they have to set up the right price for the jam, consumers are more cost conscious and they will look if the product is valuable for them needs, other part of selling a jar of jam is labelling, and who will be the presentation of the product. If the product is qualitative consumers will become usual buyers of this product, and that will be good for Tasty Preserve, is known if someone like a product will talk about to others, and sales will go up. Demand is important as well because Tasty Preserve has to look at this, having a new product on the market you need to know how often people are buying jam and which flavours they prefer. (Kotler & Armstrong 2012) Tasty Preserve has to check the market to see what consumers are looking at, what kind of jam they prefer and to provide them, a better product than customers ones. They have to...
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...MODULE-5 Marketing Notes 20 MARKETING MIX I n the previous lesson you learnt that marketing identifies consumers’ needs and supplies various goods and services to satisfy those needs most effectively. So the businessman needs to: (a) produce or manufacture the product according to consumers’ need; (b) make available it at a price that the consumers’ find reasonable; (c) supply the product to the consumers at different outlets they can conveniently approach; and (d) inform the consumers about the product and its characteristics through the media they have access to. So the marketing manager concentrates on four major decision areas while planning the marketing activities, namely, (i) products, (ii) price, (iii) place (distribution) and (iv) promotion. These 4 ‘P’s are called as elements of marketing and together they constitute the marketing mix. All these are inter-related because a decision in one area affects decisions in other areas. In this lesson you will learn about the basic aspects relating to these 4‘P’s viz., product, price, place and promotion. OBJECTIVES After studying this lesson, you will be able to : • • • • • • • • explain the concept of marketing mix and its components; explain the meaning of product and its classification; state the various factors affecting pricing decisions; describe different methods of pricing; state the meaning of channels of distribution; identify the various channels of distribution; state the factors affecting choice...
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...Website Analysis New Product Development Website Analysis: Intromark Incorporation Website Link: http://www.intromark.com/index.aspx Review of Website Overview Intromark is an invention licensing and marketing company that provides businesses with a link to thousands of new products and ideas. The company is able to locate products that meet any business criteria. The resources for finding an invention that is suitable for a particular industry is though InventHelp and INPEX. The company is also able to provide licensing and acquiring rights to an invention work directly through Intromark’s team. Layout The layout is centralized, which makes the eyes immediately focus on the information on the site. Intromark’s website is well organized and upscale. The centralized layout allows information to be easily found on the website. Consumers can easily determine what type of service is offered by Intromark. The website tabs are prioritized based on importance. For an example, the first tab is “about Intromark “which provides details of the company. The most important thing is consumers understanding the services or products that are offered; therefore, it is located on the first tab. The company has a good understanding that their visitors are potential consumers. Color/Font The company chose to use a professional blue color to depict their image. The color is boring and it does not draw consumers into their website. Although Intromark is marketing their...
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...Product and Service Strategies Marketing Mix * Blending of the four strategy elements—product, distribution, promotion, and price—to fit the needs and preferences of a specific target market * Marketers develop strategies to sell both tangible goods and intangible services What is a Product? * People buy want satisfaction, not objects * Product - Bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs What are Goods and Services? * Services - Intangible tasks that satisfy the needs of consumers and business users * Goods - Tangible products that customers can see, hear, smell, taste, or touch * Goods–services continuum - Spectrum along which goods and services fall according to their attributes, from pure good to pure service Figure 12.1 – Goods-Services Continuum Characteristics of Services * Intangible * Inseparable from the service providers * Perishable * Cannot be standardized * Buyers play important roles in the creation and distribution of services * Wide variations in service standards Figure 12.2 – World’s Most Admired Companies Importance of the Service Sector * The service sector makes up more than three-fourths of the U.S. economy * Backshoring - Firms return much of their offshore work to the U.S. to save money and improve customer service efficiency * Homeshoring - Hiring workers to do jobs from their homes * Most service firms emphasize...
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...user of the product /service. This is important even to the channel members who carry the product/service to the consumer. Hence understanding the consumer behavior helps the organization or the marketer to identify the strengths & weakness of the business. The consumer behaviour has an impact on the decision to purchase the product. The organization makes production decisions after studying the consumer behavior. The positioning of the product /service in the market depends on the consumption of the product & the behavior of the consumer. The behaviour of the consumer also reflects information about economy & growth of the nation. OBJECTIVES • To identify available brands of consumer electronics goods in organized market, • To study consumer behavior towards such brands in organized market, • To suggest brand promotion strategy, BRANDS & PRODUCTS A product is any tangible or intangible offerings which can satisfy the needs & aspirations of a consumer. CLASSIFICATION OF PRODUCT Products are classified on the basis of tangibility & durability found in an offering. They are classified as: • Service, • Durable, • Non- durable Consumer durables includes large number of household-use items like refrigerators, washing machines, air conditioners, TV, audio & video equipments & large number of kitchen appliance like mixer grinder, food processor. CONSUMER BEHAVIOUR - AN OVERVIEW Consumer behaviour involves the study of purchase, use & disposal of products. The marketer...
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...marketing system is influenced by its capabilities regarding production, financial & other factors. Hence, the marketing management/manager must take into consideration these departments before finalizing marketing decisions. The Research & Development Department, the Personnel Department, the Accounting Department also have an impact on the Marketing Department. It is the responsibility of a manager to company-ordinate all department by setting up unified objectives. External Micro Factors: 1. Suppliers: They are the people who provide necessary resources needed to produce goods & services. Policies of the suppliers have a significant influence over the marketing manager’s decisions because, it is laborers, etc. A company must build cordial & long-term relationship with suppliers. 2. Marketing Intermediaries: They are the people who assist the flow of products from the producers to the consumers; they include wholesalers, retailers, agents, etc. These people create place & time utility. A company must select an effective chain of middlemen, so as to make the...
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...Invent technology solutions had plan to launch the new computer based energy saving device which also prevents carbon emissions which will be known as the ECO BUTTON, this product is made from recycled plastic, image can be seen below. Our goal is to achieve 100% customer satisfaction so our focus will be based on product quality with reasonable price. we will be the first company to enter in this specific industry so to take advantage of first mover advantage we will do substantial promotion to gain maximum market share before any competitors arise. Our consumer will be computer and laptops users they will have to spend only £15. The computer and laptops users waste money during their devices are ideal and instead of leaving the devices ideal the user can press the eco button and save energy, money and prevent carbon emissions. MISSION STATEMENT :INVENT TECHNOLOGY SOLUTION endeavours to become the number one leader in energy saving at no cost to the environment and to make a change in green thinking.Invent technology will provide a safe and rewarding working environment for all employees , in order to achieve market leadership. MARKET OVERVIEW (MACRO ENVIRONMENTS) POLITICAL: the political environments are in favour of the product as the government of Norway is giving priority to green products and aims to become a carbon neutral country.so the eco button is good in political view. ECONOMICAL: the economy of Norway is in good state as the unemployment rate is only 3.3% according...
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...Power Root Per’l Choco Research Report Context Company profile 3 Introduction 4 Market 5 Power Root Per’l Choco as brand 7 Consumer and audiences 12 Media and communication 18 Advertising context 21 SWOT analysis 23 Recommendation 25 References 26 Company Profile POWER ROOT (M) SDN. BHD. Established 1999 Specialized Areas: herbal energy drinks, coffee, chocolate drink, cereal drink, tea. (in instant 3 in 1 packets beverage and can drinks) POWER ROOT (M) SDN. BHD. was founded on 23 July 1999 in Johor Bahru, Johor. It is a company to develop and promote herbal energy drinks fortified with two main rainforest herbs which are Eurycoma Longifolla or commonly known as “Tongkat Ali” and Labisla Pumilia and Pathoina or “Kacip Fatimah”. These herbs are indigenous to Malaysia and its properties for promoting physical well. The company has invested heavily in research and development of these traditional herbs to create its own brand of products to compete in the international market. Power Root with its own operational objectives “Quality, Innovation, Sharing” expanded in Malaysia and Malaysians started to take notice of this company and as a brand of botanical energy drinks. The company expanded very quickly and in March 2001, Power Root established a branch company in Kuala Lumpur to expand their business in the city...
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...Advertising facilitates large-scale marketing. It is a medium of mass communication. Manufacturers supply information about new products through advertising. The fact that companies spend crores of rupees or millions of dollars on advertising through TV, radio, the internet, and newspapers indicate its benefits in sales promotion. Advertising is within the scope of promotion, which is one element in the marketing mix. It is getting popularity in the present highly competitive and consumer-oriented marketing. All products old and new, consumer and durable, cheap and costly need extensive advertising for sales promotion and consumer support. Latest communication techniques are now used for making it more attractive and agreeable. The basic purpose of advertising is to give information, to attract attention, to create awareness and finally to influence the buying behavior of consumers. Advertising is certainly needed in marketing but is equally important and essential in social, cultural and political aspects of our life. The term ‘Advertising’ originates from the Latin word ‘Advertere’ which means “to turn the mind towards.” The dictionary meaning of the term advertising is “to give public notice or to announce publicity.” This suggests that advertising acts as a marketing vehicle and is useful for drawing the attention of people (prospects) towards a specific product / service / manufacturer. 2. Definition of Advertising Advertising is defined differently by various authorities...
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...MARKETING CHAPTER 5: SAPASAP, GLYSSA VILLANUEVA Consumer Markets and Consumer Buyer Behavior Consumer Market * All the individuals and households that buy or acquire goods and services for personal consumption. Consumer Buyer Behavior * The buying behavior of final consumers---individuals and households that buy goods and services for personal consumption. Characteristics Affecting Consumer Behavior 1.) Cultural Factors * Culture The set of basic values, perceptions , wants, and behaviors learned by a member of society from family and other important institutions. * Subculture A group of people with shared value systems based on common life experiences and situations. * Social class Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. 2.) Social Factors * Group Two or more people who interact to accomplish individual or mutual goals. * Opinion leader A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. * Family Family members can strongly influence buyer behavior. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. * Roles and Status A person belongs to many groups—family...
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...Alfred Marshall for measuring consumer’s reaction to demand of a change in price of goods or services. It is measured in percentages of demand requirements of a product after a price has changed even slightly. Cross-price Elasticity Cross – Price Elasticity occurs when the price change of a product affects the consumer demand of a completely different product. In the case of substitute products, cross-price elasticity happens when a substitute product is entered in to the market at a higher price than the original product and consumers continue to purchase the lower priced product. If the products are complements of each other, the rise in price of one of the products will cause both products demand to fall. For example, if the price of eggs rises the demand for bacon will decrease because of the association of eggs and bacon. Income Elasticity Income Elasticity measures the response of quantity demand of consumers as their incomes either rise or fall. Normal goods are products where demand increases with the increase of consumer income and decreasing demand when income levels fall while prices stay the same. Income elasticity is positive when associated with normal goods. Normal goods are classified as either necessity goods (food, power, and housing) or superior goods (caviar, luxury cars). Inferior goods are associated with a negative elasticity of demand because when consumers’ incomes increase the demand for more luxurious items will replace these. Example:...
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...Analysis (VRIN Test)…….…..…………….…………16-17 Appendix H: Weighted Competitive Strength Analysis…………………….……………………………17 Appendix I: Strategic Group Map…………….………………….……………………..………….……….18-19 Appendix J: Current Strategy…………………………………………………….………………………………….19 Appendix K: SWOT Analysis….…………………………………………………..………….………..….…...19-22 Executive Summary The industry for luxury goods, including handbags and leather accessories, was an extremely competitive market. This industry included three subcategories: haute couture, traditional luxury, and accessible luxury. The entire industry was estimated to be worth about $96 billion dollars in 2013 with large continued growth expected (Appendix A). The accessible luxury segment of the market was growing at a particularly high rate, faster than the rest of the industry. Sociocultural factors, such as the growth in the number of middle-income consumers, greatly contributed to this rise of sales in the market of accessible luxury goods (Appendix B). This increase in middle-income discretionary spending and the growing globalization of the market were factors that drove the luxury goods industry (Appendix D). As a result of the extreme growth in this market segment, the rivalry between competitors was strong...
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