Environmental analysis

• Prioritize the environmental variables.

• Identify whether they are opportunities and
threats.
• Map them with the companies strengths
and weaknesses
 Environment Hydraulic Excavator
Parameter Variables Th/opp Implication S/ W

Product High Capacity Threat UC Production capacity Strength

can be modified for
other models
Technology Opp Tata image Strength

Aesthetics Threat UC Focus on quality Weakness

Functioning Fuel Threat UC Improve fuel Strength

consumption efficiency by better
after sales
Know how of Threat C Focus on training Strength
Operators (Service)
Digging and Threat UC Segment market Strength
bucket which requires
capacity small bucket
capacity
Parameter Variables Th/opp Implication S/ W
Utility Labour Threat C Can highlight Strength
efficiency
Other Threat Better brand image. Strength/we
brands Differentiate akness
??
Demand Recession Threat UC
Golden Opp Local image Strength
triangle
project
Seasonal Threat C Provide schemes Strength
Acceptance Mafia Threat UC Cannot do anything Weakness.
Take risk
Unions Opp Good relation Strength
Political Opp Strength
Micro Image Threat C Competitors Weakness
Better brand image
Understanding Buying Behaviour
for Effective Marketing
• Stages to the Consumer Buying Decision
Process
– Problem recognition (Awareness)
– Consideration set
– Information search
– Evaluation
– Purchase
– Post purchase evaluation
 Utility
place utility
- The increased usefulness created by marketing through
making a product available at the place consumers want.
possession utility
- The increased usefulness created by marketing through
making it possible for a consumer to own, use, and consume a
product. It is also called ownership utility.
time utility
- The increased satisfaction created by marketing through
making products available at the time consumers want them
form utility
- The creation of form utility includes all activities used to
change the appearance or composition of a product with the
intent of making it more attractive to potential and actual users.
• Decision processes do not always follow the
logical and sequential stages as stated
• The brand decision process during purchase of
consumer and industrial goods vary from
product to product, individual to individual and
from one time period to another.
• Brand decision process for consumer goods can
range from an extensive and time consuming
process to an automatic process.
 Types of Decision Processes

Subcontracted

Legalistic Problem solving

Variety seeking Heuristics

Picking Habit
Consumer

Casual Industrial Habit

Reciprocity Heuristics

Legalistic Problem solving

Quasi resolution
S Factors influencing decisions
l.N
o
Consumer Industrial Related to product Individual Environ-
buying buying factors mental  
factors
1. Limited problem solving
i) Variety  Low involvement Boredom 
seeking Differences  (Faison 77)
between brands  Timing and 
(Assael 87) qty. of   
purchase 
(Simonson and 
Winer 92)
ii)Picking iii)Casual  Low imp.
buying Little un- 
certainty. No 
diff. between   
brands (Con. Res. 
Assael 87, Ind. 
Res Bunn 93)
2. Habitual buying Repetitive 
purchase & 
continued 
reinforcement   
(Con. Res. Howard 
& Sheth 69, Ind. 
Res. Bunn 93)
 Consumer Industrial Related to Individual Environ-
buying buying product factors mental  
factors

3. Extended problem solving

i)Planned: Planned: High priced.

Speciality  Modified  Complex products. 
goods. rebuy. Important 
New task. purchase. High 
un- certainty. 
(Con. Res. Assael   
87, Ind. Res. 
Bunn 93)

ii) Un-  Shelf 
planned display
(Ursic 80)  
Sl Factors influencing decisions
.  
No

Consumer  Industrial  Related to  Individual factors Environ- 

buying buying decision task mental 
factors

4. Thumb rules     Thumb  Any product  Time 

rules (Hoyer 84) constraint. 
Task 
complexity. 
Distraction 
(Wright 74)

5. Subcontract  Any product  Knowledge (Rosen &  Time (Rosen & 

  (Rosen &  Olshavsky  87b) Olshavsky  
Olshavsky  87a)  87a)

6. Legalistic        Approval from 
Legalistic   external 
sources 
eg.,Legal and 
social norms. 
(Duncan 66, 
Olshavsky 73)
Sl Factors influencing decisions
.
 
No

Consumer  Industrial  Related to  Individual factors Environ- 

buying buying decision task mental 
factors

7. Quasi  Goal conflict 
resolution (Cyert and 
March 63)

8. Reciprocity Homo- geneous  Mutual agreement 

product (Moyer  (Moyer 70)
70)

9. Impulse Any product  Powerful urge (Rook  Time cons- 

(Rook 87) 87) traint 
(Dagnoli 87).
Framework for Understanding Buying process
• The factors influencing the purchase can
be broadly divided into:
– Product related factors
• Differences between brands (Market forces)
• Uncertainty with untried brands (Marketing activity)
– Individual factors
– Environmental factors
 Marketing- Changing the Behaviour
LIPS to HIPS

Picking Variety seeking Legalistic

Subcontracted (if consumer is not Problem solving (if consumer is

knowledgeable) knowledgeable)

Heuristics

Habit
 Generalized framework

Low uncertainty High uncertainty of

of untried brands untried brands
Low Eg: salt, cement Eg: Textiles
differences Buying beh: Buying beh:
between Picking Habit
brands
High Eg: Soaps Eg:Pharmaceuticals
differences Buying beh: Buying beh:
between Variety seeking Problem solving
brands