BUSINESS

Understanding
Marketing
Processes
and Consumer
Behavior
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What Is Marketing?
Process of planning and
executing the
conception, pricing,
promotion and
distribution of ideas,
goods and services to
create exchanges that
satisfy individual and
organizational
objectives
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What Is a Marketing
Plan?
Detailed strategy for
focusing marketing
efforts on consumer
needs and wants

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Who Are Marketing

Managers?

Manager who plans and

implements the marketing
activities that result in the
transfer of products or
services from producer to
consumer

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Marketing: Providing Value

and Satisfaction
Value and Benefits
Value is the relative comparison of
a products benefits versus its costs
Benefits include the functions of
the product and the emotional
satisfaction associated with
owning, experiencing or
possessing it

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Marketing: Providing Value

and Satisfaction
Value and Utility
Utility is the ability of a product to satisfy
a human want or need. Four kinds:
Time Utility
Place Utility
Ownership Utility
Form Utility

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What Is Relationship
Marketing?

Marketing
strategy that
emphasizes
lasting
relationships with
customers and
suppliers
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Marketing: Goods, Services

and Ideas
Consumer goods are
products purchased by
consumers for personal use
Industrial goods are
products used by companies
to produce other products
Services are intangible
products that can be
purchased
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The Marketing Environment

External environment is the combination of
outside factors that influence marketing programs
by posing opportunities and threats. Five

environmental factors:

PoliticalLegal Environment
SocialCultural Environment
Technological Environment
Economic Environment
Competitive Environments

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The External Marketing

Environment

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Competitive Environment
Substitute products differ from
those of competitors but can fill
the same need

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Competitive Environment
Brand competition occurs
between similar products

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Competitive Environment
International competition
matches domestic products
against foreign products e.g.
Tapal vs Lipton

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What Is the Marketing Mix

(or the Four Ps)?

Combination of
product,
pricing,
promotion and
distribution
(place)
strategies used
to market
products
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What Is a Product?
A product is a good, service or
idea designed to fill a consumer
need or want.

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What Is a Product?
Product differentiation is the
creation of a product feature
or product image that differs
enough from competing
products to attract consumers

How do they differentiate themselves?

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What Is Pricing?
Pricing is the process of selecting the
best price at which to sell a product.
Prices must support a variety of costs
Prices must be competitive
Low- and high-price strategies can be
effective in different situations

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What Is Distribution (Place)?

Distribution is part of the
marketing mix concerned with
getting products from producers to
consumers.
Decisions about warehousing, inventory
control and transportation options
Decisions about channels

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What Is Promotion?
Promotion is the techniques for
communicating information about
products. There are different
promotional tools e.g.
Advertising
Personal Selling
Sales Promotions
Public Relations
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What Is Target Marketing and

Market Segmentation?
Target markets are groups
of people with similar wants
and needs
Market segmentation is
the process of dividing a
market into categories of
customer types

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Identifying Market Segments

Geographic variables are
geographical units e.g. provinces,
cities etc.
Demographic variables are
characteristics of populations e.g.
Age, Gender, Education, Income,
Occupation, Marital Status, Parental
Status etc.
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Identifying Market Segments

Psychographic variables are
consumer characteristics such as
lifestyles, personality and
attitudes
Behavioral variables are
consumer characteristics based
on the use of a product, benefits
sought from it, reasons for its
with:
purchase and brand loyalty Toothpaste
-Whiteners
-Fluoride
-Mouth Freshener
- Medicaments
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What Is Brand Loyalty?

Pattern of regular
consumer purchasing
based on satisfaction
with a product

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What Is Marketing
Research?
Study of consumer
needs and wants and
the ways in which
sellers can best meet
them

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The Research Process

.

.
.

Study the current situation

Select a research method
Collect data
Secondary data is already available
from previous research
Primary data is collected through new
research

.
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Analyze the data

Prepare a report

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Research Methods
Observation involves watching and
recording consumer behavior

Survey uses a questionnaire which serves

as the basis of interviews

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Research Methods
Focus group involves a small gathering of
people who are presented with an issue and
asked to discuss it in depth

Experimentation compares the responses

of the same or similar people under different
circumstances under a controlled
environment

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What Is Consumer
Behavior?
Study of the decision
process by which people
buy and consume
products

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Influences on Consumer
Behavior
Psychological influences:
individuals motivations,
perceptions and attitudes
Personal influences: lifestyle,
personality and economic status
Social influences: family, opinion
leaders and reference groups
Cultural influences: culture,
subculture and social class
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Consumer Buying Behavior

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