Hierarchy of customer values

Unanticipated
Values

Desired Values

Anticipated
Values
 Influences on Buying Decisions
• Environmental
• Organisational
• Interpersonal
• Individual
• Learning & Information Processing – Learning is applying past
knowledge and experiences to present circumstances and
behaviour. Eg. Dove
– Elements include – Cues, Motives, Responses, Reinforcement Eg.
Vacation
– Instrumental conditioning Eg. Central; Obervational Learning; Cognitive
Learning Eg. Sensodyne
• Attitudes – A learned predisposition to behave in a
consistently favorable or unfavorable way toward a given
object.
 External Influences: Group behavior; Social class; Opinion
leaders; Reference Groups. Role of Culture and Subcultures;
Family
 DMU
• Philip Kotler defines the decision making unit or DMU as “all individuals
and groups that take part in the decision-making process relating to the
negotiation of products /services”.
• The Decision Making Unit (DMU) consists of a group of people who
participate in the decisions about the purchasing of goods and/or services.
• 6 Major roles of a DMU-
– Initiator *
– Coordinator (Gatekeeper)
– Buyer
– Decision maker
– Influencer
– User
 Buying Centre &
Roles in Buying Centre
• Initiator - who recognises that there is a need to be satisfied or a problem to
be solved. Eg.
• Actual User - who puts the service or product into operation. Users will be
heavily involved in the post-purchase evaluation phase of the buyer decision
process.
• Influencer - those who may have a persuasive role in relation to the deciders.
They may be specialists who make recommendations based upon experience
and their knowledge of products and services. Eg. Consultants
• Decider - responsible for making the final deal or decision. Their role carries
the responsibility of placing the final order.
• Buyer - responsible for purchasing. Eg.
• Gatekeeper - individuals who press the stop/go button in the process. Often
gatekeepers will be proactive in searching for information and delivering
recommendations for those decision-makers further up the line. Eg.
 Examples of Market Segmentation
Markets can be segmented on the basis of:
• Cigarettes :
– Geographical – Rural/ Urban/ Rurban/ Suburban India
– Demographic - Type of cigarettes & Gender of customer- Filter or Plain; M/F/ etc.
– Psychographic - Price- High, Medium or Low Priced
– Behavioural - Flavours – Clove, Peppermint, etc.
– Level of Segmentation example- Gudang Garam (from Indonesia) started Locally and now Differentiated Marketing in
about 13 countries.
• Refrigerators:
– Geographical – North/South/East/West India
– Demographic - Nature of Customers – Households or Industrial
– Psychographic - Size – 65/ 90/ 165/ 286 litres etc.
– Behavioural - Bubble/ Tumble/ Smart wash
– Level of Segmentation example- Samsung Family Hub Smart Refrigerator - Concentrated Marketing
• Washing Machines:
– Geographical - Density – Urban or Suburban or Rural
– Demographic – Primary Occupation & Gender of Customers – Homemaker/ Service etc. Male/ Female/ etc.
– Psychographic - Economy – Middle/ Upper Income Groups
– Behavioural - Benefits – Automatic, Semi, Fully automatic
– Level of Segmentation example- Daewoo Mini Wall Mount Washing Machine – Differentiated Marketing
Versus
References\DAEWOO mini WM.mp
4

Vs
References\Remya
Jose Washing machine.mp4

OR
References\Industrial Vegetable W
ashing Machine.mp4
References\Samsung Family Hub™
2018.mp4

V/s
References\Desi Refrigerators.mp4
APPLICATION OF OPINION +
KNOWLEDGE
"In order to sell a product or a service, a
company must establish a relationship with
the consumer. It must build trust and
rapport. It must understand the customer's
needs, and it must provide a product that
delivers the promised benefits." 
- Jay C. Levinson, American Author, First to use
the term 'Guerrilla Marketing'
"Consumer: A person who is capable of
choosing a president but incapable of
choosing a bicycle without help from a
government agency." 
- Herbert Stein (1916 - 1999), American
Professor of Economics
"Consumers are statistics. Customers are
people." 
- H. Stanley Marcus (1905 - 2002) American
Businessman, Former Chairman of the Board
of Neiman Marcus
"The aim of marketing is to know and
understand the customer so well the product
or service fits him and sells itself." 
- Peter F. Drucker, (1909 - 2005), Author and
Teacher