Developments in Mkt Flashcards
Consumer buying behaviour
- Cognitive paradigm-outcome of rational decision-making process
- Learned behaviour-Importance of past purchases
- Habitual decision making-habit and brand loyalty
Consumer decision -making model
Lancaster and Withey:5 steps
- Need/problem recognition
- Pre-purchase -info search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
Useful descriptive framework fro marketers
Influences on consumer buying behaviour
Lancaster and Withey:
- Social factors;reference groups,family,roles and status.
- Cultural factors: cultural,sub culture,social class(values,attitudes,beliefs)
- Personal factors; age/life cycle stage,occupation,economic circumstances,lifestyle,personality
- Psychological factors:Motication,leaning,perceptions,beliefs,attitudes
Motivation Maslow and Herzberg:
Inner state that energises,activates,moves,directs,channels
Maslow:Hierarchy in their order of importance
- physiological needs
- Safety needs
- social needs
- esteem needs
- self -actualisation needs
Herzberg:Two factor theory
- Cause disatisfaction(markters goal -avoid disatisfiers-eg poor after sale service)
- Cause satisfaction(identify major datisfiers or motivators)
Organisations as buyers-characteristics:
- More rational than consumer
- Fewer buyers
- Close relationship buyer seller
- Demand for industrial goods is derived from demand for consumer goods-price inelastic
- Purchase decision -by consensus
Typical org buying process ;stages
- Recognise the problem (from within or out)
- Develop product specifications or service requirements to solve the problem.
- Search for products/suppliers(trade shows,trade publications,supplier catalogues ect)
- Evaluate products relative to specifications( also evaluate supplier -price,service and ability)
- Select and order the most appropriate product
- Evaluate the product and supplier performance.
The decision making Unit in the org (DMU)-Groups withing the DMU
- Initiatiors(define purchase characteristics)
- Buyers (formal authority for selection of suppliers)
- Influencers(input in alternatives,helps initiator)
- Gatekeepers(stop sellers from reaching individuals)
- Users
- Deciders (decide on product requirements)
- Approvers
Selection criteria :How org buyers make the purchase decision
- Delivery capability
- Quality
- Price
- Repair and after sales service
- Technical capability
- Performance history
- Production facilities
- Help and advice
- Controls systems
- Reputation
- Financial position
- Attitude towards the buyer
- Compliance with bidding procedures
- Training support
- Communication on the progress of the order
- Mngt and organisation
- Packaging
- Moral/legal issues
- Location
- Labour relations
Key difference between B2G and B2B?
B2G:
- Contract determinded by a tendering process
- Longer duration
- Greater amount of value
- Might be pre determined
- Lower profit margin (possible)
Lancaste and Whithey_Typical exchanges between public sector and their customers:
- University provides edu in exchange of fees and time
- Council :local services in exchange tax and votes
If an exchange is taking place there is room for mkt
Dibb et al: NfP need to consider their mkt obj ,target markets,marketing mixes and how they will control mkt activities.Elaborate:
- Objectives: Measured on the response recieved by the target markets->open and honest how it managed budget and allocated funds.Efficiency and effectiveness very important
- Target mkt: Bruce 3 types of customers for charities:
- Beneficiaries :those who receive benefit support & who benefit from lobbying and publicity
- Supporters: Provide money ,time,skill
- Regulators :Charities commission and local authorities ,residents association(form+inf)
3.Deal more often with services->extended mix
- Process: eg direct debit pay for counsil tax reduces adm cost
- People: employed +volunt->should be good and caring when dealing with their clients
- Promotion: personal selling with street corner and D2D collections,ads for large charities,direct mkt is growing,sponsorship ect
- Pricing: value for money important,opportunity cost
- Appearance: should be business like
- Distribution channels:shorter with fewer intermediaries than profit making
- Control: proceeding as planned,compare donations with expences
NGO s :Definition and examp
- Private sector,voluntary orgs.
- Participate in : training or other humanitarian activities
- ISO,wwf,Amnesty international
Charity mkt mix:
- Price: important to larger charities,goods and services:largest single source of income
- Processes: customer friendly
- Place: Distribute physical goods challenging-fund distribution short and easily managed (eg online donation)
- Product :cause it supports and the help it provides
Internal mkt-Peck et al:
- Creating,developing,maintaining and internal service culture and orientation which in turn assists the org to achieve its goals
- All employees can develop and understanding of how their tasks and the way they perform them create and deliver customer value and build relationships.
Implementing internal mkt-Peck et al
- Org design: key empl together
- Regular staff surveys
- Internal customer segmentation
- Personal dvt and training ;(focused on core competencies for internal mkt)
- Empowerment and involvement (at employees discretion to deliver better service)
- Recognition and rewards
- Internal communications(awarenes of the role and contribution)
- Performance measures
- Building supportive working relationships
Internal mkt mix-Jobber
- product: mkt plan,values,attitudes,actions
- price:what intern customers are being asked to sacrifice as a result of accepting the mkt plan
- promotion: Communication media and messages,understandable
- place: How product is delivered (meetings,seminars ect)
Segmentation of internal markert
- Supporters(likely to gain or committed)
- Neutrals(both gains and losses from the plan)
- Opposers: (likely to loose)
Christopher et al’s method of segment
- Contactors:(frequent contact with customer-well versed to the mkt startegies and motivated to serve customers in a responsive manner-sales people,customer service)
- Modifiers:Not directly involved,need to have a clear view of the mkt startegy
- Influencers:Involved with traditional elements of mkt but not customer contact
- Isolated: Support functions (neither direct customer contact nor mkt input-need to be sensitive to the needs of internal cust,Gummesso–>part time marketers
The importance of internal customer communication:
- Employer branding(attract quality candidates)
- Employee communication and involvement (helps task performance and decision making,employees identify with theh org by sharing mkt info)
- Employee relations: Aims of employees relations according to Armstrong
- Stable and cooperative relationships with employees
- Commitment
- Developing mutuality
Challenges to internal communication:
Jones and Cheeseman-challenges:
- Flatter mgt structures(more emplo reporting to one manager
- Downsizing
- Teleworking and virtual teams
- Globalisation(diverse workforces and culturally distinctive -barriers to mass communication)
Email as internal communicatiom
Advantages:
- Sent and received quickly
- cheap
- Hard copy printed
- Worldwide any time (24-7)
- Attach complex docs
- Email mgt software(outlook)multiple recipients,address book ,filing
Intranet-uses :
- Combination of networked computers and web tech.
- Performance data (database and reporting systems to fulfil work objectives)
- Employment info
- Employee support /info
- Notice boards
- Dpt home pages
- Bullentins and newsletters
- Email facilities
- Upward communication
- Individual personnel files
Benefits of intranet:
- Cost saving(avoid printing)
- More frequent use (search ,update)
- Wider access to corporate info
- Virtual team working
Team meetings:
- Information exchange
- Ideas generation
- Problem solving and conflict resolution
- Decision making
- Facilitates persuasion
- Cooperation
- Human face of an org
- Developing relationships
- brainstorming-Promotion planning or customer care improvement
- Customer complaint handling
- Decide plans and allocate roles and tasks
- Sales negotiations
- Cross-functional team meetings,briefings,project meetings
- Personal customer service
Grapevine inetrnal communication
- Friends,colleagues,contacts
- Disadvant:inaccurate ,subjective
- Adv:fast,effective delivery
Marketing decisions:Classification accrording to ethics and legality:
- Ethical and legal(print on recycled paper.
- Unethical and legal(targeting young adults in alcopops ad campaign)
- Ethical but illegal (publishing stolen but revealing docs about mis selling)
- Unethical and illegal:(imitation goods as designer brands)
Important considerations an ethical org will make:
- Whether its advertising is fair,balanced,truthful
- Who does it sell to -marketing aimed at
- Are its products appropriate ,safe,environmentally friendly?
- How does it deal with unhappy customers
- Does it exploit anyone in its advertising or pricing startegies?
Benefits to socially responsible and ethical org:
- Competitive advantage
- Greater revenue
- Reduced costs(recycling)
- Positive publicity(before any regulation comes to force).
Types of social media:
- Blogs (wordpress)
- Micro blogging (twitter)
- Social networking webs(fb)
- Virtual social worlds (second life)
- Collaborative projects(wiki)
- Content communities(you tube)
- Virtual game worlds (world of warcraft)
Four I’s of social media
- Individualise
- involve
- integrate
- initiate(customer generated content)