what influence comsumer behaviour

Culture

nationality, race, religion, social class

Social

colleague, friends, family

Personal

age, life cycle, personality, lifestyle, disposable income, occupation finance




Buying process 5 stage model

Stage 1
problem recognition

Stage 2
information search - internet friend store

Stage 3
Evaluation of alternative - brand megapixel

Stage 4
Purchase decision - sales, in store promo, sales person gd

Stage 5
Post-purchase behaviour - after u buy hw u feel? gd? show off? lousy? nv buy again
sales person follow up




Business market
1. fewer but large buyer
2. close supplier-customer rs long term
3. professional purchasing, ppl involve, purchasor exec manager, knowledge infor and guideline
4. several buying influence, fiance budget, policy
5. multiple sales call
6. derive demand, if choco go up, milk and coco will increase
7. inelastic demand, even if raw material go up, still have to buy to make e product
8. fluctuation demand, depends of economy whether do well anot
9. geographically concentrated buyer, a certain place at certain environment suitable will have more buyer
10. Direct purchasing, no middle men




Problem recognition

product specification

supplier search

proposal sollicitation

supplier selection

order-routine specification

Performance review




Customer perceive value
Customer are value maximer, they always want the most out of any purchase we made. They form a value expectation ( for $200 spend they should be getting these quality or function) and act on it. They will buy the product they perceive to have the highest customer value.

CPV = TCV - TCC

TCV = bundle of economical, function and phycological benefits the customer expect from a given market offering

TCC = bundle of cost customer expect to incur in evaluation, obtaining, using and disposing of the given market offering, including monetary, time, energy and psychic cost.




Customer relationship management

1. indentify
2. differentiate
3. interact
4. customize

Strategy
1. Reduce defection
2. increase longevity of customer relationship
3. cross sell and upsell, share wallet
4. terminate low profit customer
5. focus on high profit customer




Segmentation

1. Descriptive characteristic

-Geographical
~high end technology is not ready for developing or not so develop country, not ready.

-Demographic
gender
age
family size
life stage
income
occupation
religion
race
generation
nationality
social class

-Psychographic
personality
lifestyle
values


2. Behavioral characteristics

-Decision roles
Initiator
influencer
decider
buyer
user

-Behavioral variables
Occasions
Benefits
User status
User rates
Buyer-readiness stage
Loyalty status
Attitude


Market Targeting

1. Measureable (size, spending power)
2. Substantial (Large and profitable)
3. Accessible (can be reached & served)
4. Differentiable ( distinguishable & respond differently)
5. Actionable (effective programs to attract & serve)


Evaluating & selecting market segment
1. overall attractiveness of the market - profitability
2. company's objectives & resource - will the company resource able to serve the market effectively?




6 environment force

1. Demographic
-Size and growth of populations
-Age distribution and ethnic mix
-Level of education and household pattern
-Regional movement and characteristic

2. Economic
-Income level
-Saving level
-Debt
-Credit card accessibility
-Prices
Overall spending power

3. Social-Cultural
-Values
-Norm
-beliefs
Overall the product must suit the culture and values

4. Natural
-Shortage of raw material
-Usage of energy
-Increase of pollution emited
-changing role of government in protecting environment, thus might affect consumer choice of product as they are willing to play a part in protecting environment too

5. Technological
-Advancement of technology give rise to opportunity for innovation
-Use of virtual reality, test for consumer reaction to product
-Company with varing budget, content to copy other product, improve it, add new feature and package as a new product
-due to increase of technology there is also increase of rules and regulation, to protect public health and safey as well as privacy issue

6. Political-Legal
-Increase of business legislation, to protect consumer, company and society
-Growth of special interest group
-work withing the law and business practice
-engage in special interest group
exploit opportunity, market reform
-deal with corruption


The marketing research process

1. Define problem, decision alternatives and research objectives
2. Develop research plan
-data source ; primary or secondary
-research approach ; survery, observation, behavioural data, experiment, focus group
-research instrument ; questionaire, qualitative measure, mechanical or technological device
-sampling pan ; sample unit, size and procedure
-research methods ; personal , phone, mail or internet
3. Collect data
4. Analyse date
5. Present finding
6. Make decision




Positioning

Points of parity - same as rival

Points of different - only you have and positively


Diferentiation Strategies:

1. Product
-quality design performance form

2. Service
-ease of order, delivery, maintanence, warantee on site

3. Personel
-courtesy, reliability, competence, customer service hotline

4. Channel
- Wide coverage, everywhere u can see, long hours of opening, expertise in display and selling, retail shop
image

5. Image
-media, events, symbols, marathon tv viewing, celebraties, to up e image


Product Life Cycle

Properties
1. Limited life span
2. Sales pass through distinct stages
3. Different profits at each stage
4. Different strategies in each stage

The 5 stage of life cycle

1. Product development

2. Introduction
-introducing to public, marketing, customer getting to know product

3. Growth
-customer accept product, start buying, increase sales

4. Maturity
-not so popular cause too common, most ppl know about product, sales stable or mayb dropping

5. Decline
-technology advance, trend change, sales drop

Strategies to use

Stage
2. If first in the market, pioneer advantage, first mover advantage. becos its new have to spend more in marketing, introducing to the public, induce trail and secure distributon
Stage

3. spend more on product improvement, new model, flanker product if high end can add in low end htc hd2 and htc hd mini, enter new market segment to have more customer targets, increase distribution more outlet so that every where is ur product, easy to buy also. prodct preference advertising to influence customer to buy the product. lower the price also help to attract more customer

4. market modification, convert non user to user, infreq to freq user
product mod, improve feature, enhance increase feature
marketing program, adjust to 4 p, product place promo pricing to stimulate more demand and interest

5. -withdraw from market, divestment
-decrease level of investment & drop unprofitable customers
-maintain investment until market uncertainties are resolved
-increase investment to dominate market
-harvest what is left of the market




Michael Porter's 5 forces

Threats posed by competitive forces:

1. Intense segment rivalry
- Many electronic shops and retailers offering same product

2. New entrants
_ In terms of barrier, there are not very high. New participant can come into the market easily

3. Substitute products
- Many different kind of electronic product tat can satisfy the same need. eg ,speaker, mp3, sound system, handheld device

4. Buyers' growing bargaining power
- They are able to compare prices among the different shops and retailer

5. Suppliers' growing bargaining power
- If the suppliers are few, they are able to control the prices