Principles of Marketing

Consumer and Business Markets

Prepared by:
Prof. Seyed Ali Fallahchay

Consumer buyer behavior

Consumer buyer behavior refers to the buying behavior
of final consumers- individuals and households who
buy goods and services for personal consumption.
All of these final consumers combine to make up the
consumer market.

Failure rates of new products introduced

out of 11000 new products introduced by 77
companies, only 56% are present 5 years later.
Only 8% of new product concepts offered by 112
leading companies reached the market. Out of that
83% failed to meet marketing objectives.
Note: All managers must become respect analysts of
consumer motivation and behavior.

Can Marketing be standardized?

No.
Because cross cultural styles, habits, tastes, prevents
such standardization.

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China

Buyer Behaviour

Consume
r

4 Ps

Marketing
Environm
ent

Buyer
Characteris
tics

Buyer
Decision
Process

Buyer
Decisio
n

Marketing Stimuli

4Ps

Product

Price

Place

Promotion

Marketing Environment

Buyer characteristics
Cultural

Social

Personal

Psychologica
l

Culture

Subculture

groups

Lifecycle

Perception

Social class

Family

stage

Learning

Reference Age and

Roles

Status

and Occupation
Economic
situation
Lifestyle
Personality

motivation

Beliefs and
Attitudes

Buyers Decision Process

Buyers Decision
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount

Buying Roles
Initiator
Influencer
Decider
Buyer
User

Buying Behavior
Complex
Dissonance- reducing
Habitual
Variety seeking

Business Markets
Characteristics of Business Markets
Business Markets differ from consumer markets in
many ways.
Marketing structure and demand
Nature of the buying unit
Types of decisions and the decision process

Business Buyer Behavior

Straight rebuy: Automatic and regular purchase of
familiar products.
Modified rebuy: Buyer is not completely satisfied with
current suppliers and shops around.
New task buying: buyer seeks to fill a need never
before addressed.

Business Buyer Behavior

Participants in the Buying Decision Process
Buying Center
Participants

What They Do

Initiators

Recognize that a company problem can

be solved or avoided by acquiring a
product or service.

Gatekeepers

Control information and vendor access to

corporate decision makers; determine
which vendors get the chance to sell.

Influencers

Have a say in whether a purchase is

made and what is bought.

Deciders

Say yes or no to the contemplated

purchase.

Purchasers

Obtain the purchased product or service.

Users

Consume the purchased product or

service.

Emotion play a role in business buying.

Emotional brands generate higher consumer
loyalty than functional brands.

Stages of the Business Buying Process

Business Buying Process

Business Buying on the internet
E-procurement is growing rapidly.
Reverse auctions account for much of the online

purchasing activity.
E-procurement offers many benefits:
Access to new suppliers
Lower purchasing costs
Quicker order processing and delivery

Institutional Markets
The Background:
Institutional markets are often overlooked in B2B
marketing.
The Potential :
This market is somewhat recession-resistant; great
target for hard economic times.
Timing is Important:
For example, august is a good month for schools, but
often a poor time for other institutions due to worker
vacations.

Institutional and Government Markets

Government Markets
Most firms that sell to government buyers are not
marketing- oriented .
Some

companies

have

separate

government

marketing departments.
Much of government buying has migrated online.

Thank You