Buyer Decision Making Process

Sources of Information

Personal

Commercial

Public

Experiential

Information Search Sources of Information

Personal sourcesfamily and friends Commercial sources advertising, Internet Public sourcesmass media, consumer organizations Experiential sources handling, examining, using the product

THE EXPECTANCY VALUE MODEL

Aj

Bij x ii
i=1

Sets in Consumer Decision Making

Evaluation to Purchase

Customers Usage and Disposal of Products

Business Markets

Major Types of Buying Situations

Straight rebuy is a routine purchase decision such as reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product

What Is a Product?
A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

What Is a Product?
Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

Components of the Market Offering

Value-based prices

Attractiveness of the market offering Product features and quality Services mix and quality

Types of Consumer Products

Products Products

Consumer Consumer Products Products

Business Business Products Products

Convenience Convenience Products Products

Shopping Shopping Products Products

Specialty Specialty Products Products

Unsought Unsought Products Products

Types of Consumer Products

Convenience Product Shopping Product Increase market share among A relatively inexpensive item that existing customers merits little shopping effort Attract new customers to A product that requires comparison existing products shopping, because it is usually more expensive and found in fewer stores

A particularnew products for Create item for which Specialty Market consumers search extensively and present Diversification Product Development markets are reluctant to accept substitutes Unsought Product A product unknown to the potential Introduce new products buyer or a known product that the into new markets buyer does not actively seek

Product Items, Lines, and Mixes

Product Item Product Item
A specific version of a product A specific version of a product that can be designated as a that can be designated as a distinct offering among an distinct offering among an organizations products. organizations products. A group of closely-related A group of closely-related product items. product items.

Product Line Product Line

Product Mix Product Mix

All products that an All products that an organization sells. organization sells.

Product item, product line, and product mix

Line Stretching
Down-Market Stretch Down-Market Stretch Up-Market Stretch Up-Market Stretch Two-Way Stretch Two-Way Stretch

Line Filling

DELIGHTING CUSTOMERS
BOMBAY TAXI No: MRP 3676

Services Offered Cigarettes /Match box,on the house Newspapers Thought pad and pen Telephone Directory Railway and Airline Timetable Suggestion/Complaint book Tape recorder at your control First Aid box Postal stamps Stationery Calendar Watch

PRODUCT VALUE RINGS

Product

Features, Performance, Conformance, Durability, Reliability, Repairability, Style, Design, Packaging Delivery, Installation, Customer Training, Information & Consultancy, Service, Repair etc. Competence, Courtesy, Credibility,Reliability Responsiveness, Communication Symbol, Logo,Brand,Media,Atmosphere,Events

Services

Personnel Image

MEANINGFUL DISTINCTIVE & UNIQUE SUPERIOR TO COMPETITION PREPRE-EMPTIVE COMMUNICABLE AFFORDABLE PROFITABLE

I: Introduction II: Growth III: Maturity

Sales

IV: Decline Sales

Profit I II III IV

Time

THE PRODUCT LIFE CYCLE

Product Life Cycles

INTRODUCTION GROWTH MATURITY DECLINE

Product Strategy

Limited models More models Frequent Frequent changes changes. Limited Expanded Wholesale/ dealers. Longretail distributors term relations Awareness. Aggressive ads. Stimulate Stimulate demand.Sampling demand

Large number Eliminate of models. unprofitable models Extensive. Margins drop. Shelf space Advertise. Promote heavily Phase out unprofitable outlets Phase out promotion Prices stabilize at low level.

Sales

Distribution Strategy

Promotion Strategy Pricing Strategy

High to recoup Fall as result of Prices fall competition & (usually). development efficient produccosts tion.

Time