Understanding and Influencing Organizational Buyer Behavior

Decision Behavior Customer Needs

Growth Rate

Accurate Target

Marketing Programs

Communication Channels

Message Processor

Behavior Desired

Product Price Distribution Service Communication SalesForce Experience Trade Shows Advertising Competitors

Preferred Supplier Organization Consumer Product Purchase Purchase Frequency Customer Loyalty

Who is the Organizational Consumer Decision Maker?

Users

Influencers

Organizational Buyer Gatekeepers Deciders

Planning The Marketing Program

Identifying Value in the Marketplace

Determining Value Capabilities

Mission and Marketing Objectives

Strategy Formulation

Customer Value

Selectivity Concentration

CORE MARKETING STRATEGY

Differential Advantage

Marketing Programs

CORE MARKETING STRATEGY

Product Policy and Strategy

Relationships

Evaluation

MARKETING PROGRAMS

EVALUATING VALUE DELIVERY

Segmentation, Targeting and Positioning



British Tobacco and Phillip Morris focused on industrialising countries showing cigarette as fashionable status symbol and lifestyle..

Market Segmentation Strategies

Single Target Market Approach

Multiple Target Market Approach

Combined Target Market Approach

Global Market Segmentation



The process of sub-dividing a market into distinct, actionable, homogeneous, substantial subsets. 1. Geographic Segmentation 2. Demographic(income and population) 3. Psychographic(values, attitudes, lifestyles) 4. Behaviour characteristics. 5. Benefit Sought 6. Business Environment(soft, hard, regulations) 7. Segmenting Industrial Markets / Size / Value / Standards / Industrial Classification /

Geographic and Demographic

Whether to go to triad, EU, US and Japan(high income)  Industrialising countries(Chine, India, Brazil-middle income)  African continent(low income)  On the basis of population demographic distribution.


Psychographic Segmentation


1.

2.

Backer Spielvogel & Bates Global Scan labelled segments as strivers, achievers, pressured, traditional and adapters. Percentage varied from country to country. Strivers: young 31 yrs, hectic achievement driven life, materialistic but having less time and money. Achievers: older than strivers, affluent, assertive, attained success and upward mobile, status and quality conscious.

3.

4.

5.

Pressured: largely women of all ages, having constant family and financial pressures. Adaptors: older, contented people who maintained their values with open minds. Traditional: rooted to past, heritage, cultural values.

Young and Rubicams Cross cultural consumer Characteristics

 

Constrained(resigned- staples and price driven and struggling poor-look for discount) Middle majority(happy mainstreamers-habit brand loyal, unhappy aspirers- conspicuous consumptions, happy succeeders-luxury and quality) Innovators(rebellious transitional-unique impulsive products, improve world reformershome made or ecological products)

Behaviour Segment


1. 2.

Whether they buy use and the frequency of usage. Uses: heavy, light, non-users. User status: potential, non, ex-, regular, first time and competitors and products users. Benefit Segment:on the basis of benefit sort.

Target Marketing
   

Who are the Target Customers? Which markets should be targeted? Why are these markets targeted? Can we describe Customer need requirements?

  

Agree on Target Market/Segments Summarize Customer Need Requirements Focus activities on Target Market

Single Target Market Approach

Single Target Market Approach

Multiple Target Market Approach

Combined Target Market Approach

The Strategy This approach segments the market and picks one of the homogeneous segments as the firm's target market. The segmenter here aims at one submarket with one marketing mix.

Multiple Target Market Approach

Single Target Market Approach Multiple Target Market Approach Combined Target Market Approach

Strategy 1 This approach segments the market and chooses two or more segments as the firm's target market. The segmenter here aims at two or more submarkets with a different marketing mix for each. Strategy 2 Strategy 3

Combined Target Market Approach

Single Target Market Approach

Multiple Target Market Approach

Combined Target Market Approach

The Strategy

This approach combines two or more submarkets into a larger target market as a basis for one strategy. The combiner here aims at two submarkets with one marketing mix.

Step 1-Identify Similar Micro Segments

Basis for MicroSegmentation

Similar Buying Center Processes Functional Customer Needs Stages in Buying Process

All Potential Customers

Basis Size,Location,Industry

Macrosegment 1

Macrosegment 2

Basis: Charactristics of the Decision Making Unit

Basis: Charactristics of the Decision Making Unit

Microsegment 1

Microsegment 2

Microsegment 1

Microsegment 2

Step 2-Identify Level of Decision Participants Influence

Identify Similar Micro Segments Across Macro Segments  Similar Buying Center Processes  Functional Customer Need Requirements  Stages in the Decision Process
BUYGRID FRAMEWORK
New Task Need Recognition Product Characteristics Information Search Evaluation Decision Evaluation Modified Rebuy Straight Rebuy

Step 3- Identify Most Important Benefits Sought

 

Personal Interviews Focus Groups

Open ended Concentrate on how customers use the product. Possible Improvements Wishes

Pr PRI I

ct PRESTI E

ITY

SECURITY

PPLY RANT

RELATI NSHIP

T R SERVI E

MOTIVATION Purc s cisi

Step 4-Develop Customer Attribute/Benefit List

 

Replace Air with Oxygen Apparatus for Mixing, dissolution and utilization of Oxygen Control System to Maintain Peak Efficiency

   

2/3 Treatment Processing Time 5X Poundage Removal Ability to absorb shock loads Reduce Operating Costs

Step 5- Have Decision Makers Prioritize Benefits

 

Easy to reach keys

100

Makes me relax

80

 

I got my moneys worth

50

Customer Sort Customer Attributes Customers Choose Exempler from each pile Customer rate importance of each pile Customer rate current performance

Cluster Analysis Helps to Reveal-Voice of the Customer

Maintains Temperature of Package Contents

Use Convenient Cooling Mechanism

Temperature is Controllable

[ [

Can add Coolant without replacing cartridge Cooling material does not affect contents Cooling material takes up a minimum of space

Keeps contents cold Cools effectively Keeps contents warm

Step 6- Identify Stage of Involvement in Decision



Involvement varies across organizational functions

Segmentation Matrix
Segment Names

Benefits Sought Priority Ranking

Identify,Select, and Describe the Target Market Product or Service____________________ Target Segment_______________________ Segment Size_________________________ Key Decision Makers___________________ Key Customer Needs 1.____________ 2.____________ 3.____________ 4.____________

Global Targeting
  1. 2. 3.

Act of evaluating, comparing and selecting the prospective segment with highest potential. Criteria: Size and growth potential(China) Potential competition(Kodak-Fuji fight in US, Europe) Compatibly and feasibility with companys mission and objectives(Cokes challenge to Pepsi in Russia)

Selecting a Global Target Market Strategy



Standardised global marketing: same marketing mix extensive distribution, more sales less production cost(Revlon Shake Your Body campaign) Concentrated global marketing: To reach single focused segment (Winterhalter sells dishwasher only to restaurant, Estelle Lauder cosmetic to upper upper segment only) Differentiated global marketing: targeting two or more distinct segments with different marketing mix.

Positioning The Product

   

Specify Target Market Specify Key Benefit Specify Key Support Specify Differential Advantage

 

Develop Positioning Statement Get Team Buy In

PRODUCT POSITIONING
DIFFERENTI L DV NT GE D

F Psychological

Economic

Ho w d o o u r c u s to m e rs p e rc e iv e u s in re la tio n to o u r c o m p e tito rs ? Wh a t is o u r im a g e ? "Se g m e n tin g " th e Se g m e n t

Non Price Competition

Price Competition


S stainable Differential Advantage

Positioning Strategies May Be Based On:

sta is ing a i erentia d antage o etiti e na ysis sto er na ysis


Potentia d antage

    
Yes o

denti y e i erentia d antage

Satis ies Key o sto er eed an o etition Mat i erentia d antage

arget Mar et Seg ent

Yes

S e i i eat res Bene its, Pro e so tions, eeds S e i i Usage O asions User ategory gainst anot er Prod t Prod t ass disasso iation

Positioning Examples


Canon Compact Big Copier Xerox uxury eatures 3M Reliability, Quality

Mita Simple to Use Minolta Works with you Sharp Options/ eatures

Natural Brand Positioning

Perceived Price

+20

Standardized Physical Characteristic

-1 +1

-20

Positioning Statement Format



Convince [Our Target Market] that

[Customer Benefits Sought] because [How Our Strategy Provides Benefits]

Target Market and Positioning

Product or Service_______________ Target Market Segment_____________ Convince_______________________ that
Target Market

_______________________________ Because
Customer Benefits Sought

_________________________________
How our strategy provides benefits

Global Product Positioning

Acting on consumers mind rather that the product.  High tech positioning 1. Technical products: computers, microprocessors, RAM. 2. Special interest products:Adidas, Sports, I-Pods 3. Product that demonstrates well : Polaroid camera  High touch positioning: focus more on image than specialised technical information. 1. Product for common problems showing slice of life. 2. Global village products: mineral water, designer fashions and pizza etc. 3. Universal theme based products: ruggedness and heroism of Harley Davidson

Developing Objectives


Which type of objective should be emphasized? Should the type of objective vary by segment and customer target? What criteria should be used to assess objectives?

Develop Objectives
By Market Segment By Geography By Customer Target

Template for Good Objectives

____________ percent of _____________
A quantifiable number Target Customer

will _______________ the ____________

Objective Product or Service

in ________________.
Time Frame

Evaluating Market Feasibility



Industry Demand  Market Share  Required Investments  Costs  Performance.