Marketing #2 Understanding Buyers

Customer Acquistion Process

Motive development, info gathering, proposition evaluation, proposition selection, acquisition/purchase, re-evaluation

Showrooming

Evaluate in-store, buy online

Webrooming

Evaluate online, buy in-store

Classical conditioning

When the unconditioned stimulus becomes associated with the conditioned stimulus (e.g. L’oreal places samples in magazines, so when customers see a future ad of it they associate it with the smell & purchase it) (Pavlov’s dog)

Operant conditioning

Learning through behavioural enforcement (e.g. positive conditioning like rewards system)

Omnichannel commerce

Seamless switching from platform to platform (being redirected elsewhere)

Personality (3 approaches)

Psychoanalytic, trait theory, self-concept approach

Halo effect

e.g apple products

Trait theory

Personality traits (e.g. rugged, masculine, stable, action-oriented)

Self-concept theory

How we perceive ourselves

Theory of planned behaviour

Behaviours brought about by the intention to act a certain way

Motivation (What 5 needs?)

Self-actualisation, Esteem, Belongingness, Safety, Physiological (Maslow)

Opinions

Quick responses given to opinion poll questions about current issues

Attitudes

Held with a greater degree of conviction over a longer period of time

Values

Held even more strongly than attitudes, underpinning our attitudinal and behavioural system

Total standardisation of marketing strategy

Using exact marketing mix w/o modification

Product adaptation

Use existing marketing mix, but adapt product to ethnic market

Advertising adaptation

Use current marketing mix, modify adaptations

Ethnic marketing

Use a totally new market mix (e.g. Bollywood films in India)

Organisational buying behaviour

Concerns fulfilling the needs of an org more than an individual

Decision-making unit (DMU)

Grp of people involved in organisational purchases

Buyclass

Type of purchase

Buyclass type: New task

1st time purchase, high risk

Buyclass type: Modified rebuy

Modify new purchases (e.g. price adjustment, alternate delivery patterns)

Buyclass type: Straight rebuy

Orders on a routine basis

Buyphase

Buyphase types

Need/problem recognition, product specification, supplier/product research, evaluation of proposals, supplier selection

DMU phases

Initiators, Influencers, Deciders, Buyers, Gatekeepers

Strategic procurement

Negotiating with suppliers on a cooperative basis to build LT r/s

Price minimiser

Goal is to seek lowest price

Bargainer

Dyadic buyer-seller r/s

Clockwiser

Network r/s that functions predicatably and precisely

Adaptator

Adapt manufacturing process between exchange parties

Projector

Joint dev project between buyers and sellers

Updater

Collab in R&D