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NAME Juan Berrocales
GUIDED NOTES POBF 3.02: UNDERSTAND BUYING BEHAVIORS
1. A marketing
strategy provides vital information on how a business will meet its goals of
satisfying
customers that will result in making sales and profits.
2. There are two steps to a marketing strategy:
a. Target market – a target
group of
people that have
similar wants
and needs. Market segmentation is dividing the target market into smaller groups
based on:
i. Demographics – age, gender , income, ethnicity
ii. Geographic - location
iii. Psychographic - values , attitudes and
lifestyles
iv. Behavioral – why customers
buy
the products
b. Marketing Mix (4 P’s) – the
blending of the marketing
elements of marketing
known as product,
place (distribution),
price, and
promotion
. Goals
are to satisfy the
needs and wants of the
target market and to Provide
a profit for the company.
3. Consumer Decision Making Process
a) Recognize a need.
b) Gather information.
c) Select and evaluate alternatives.
d) Make a purchase decision.
e) Determine the effectiveness of the decision.
4. How does decision making occur?
a. Extensive – a high level of perceived risk, a product or service is very expensive or
has a high
value to the
customer
b. Limited – when a customer buys products that he/she has purchased before but not
regularly
c. Routine – when little information is needed about the product being purchased
5. Consumer buying motives – the reasons consumers decide what products and services to
purchase.
a. Emotional - feelings, beliefs, and attitudes
b.
Rational - based on
facts and
logic
c. Patronage – based on loyalty
, customer
service, merchandise and convenience
6. Consumer Information Sources:
a. Product
Testing Organizations – test products and services to detect benefits
Examples: Underwriters Laboratories , Association of Home Appliance
Manufacturers, Consumers
Union (independent testing organizations)
b. Media sources – provide specific information about products and services.
i. Print = Magazines
and
Newspapers
ii. Broadcast =
Radio and
Television
iii. Internet = websites, world wide web
NAME Juan Berrocales
c. Government agencies – Inform consumers and may handle consumer questions
all levels of government Federal, State and Local
d. Business sources – available as a
public service and to sell products and
services.
i. Advertising – main function is to advertise
ii. Product labels – provide helpful information about
nature of the product,
how to care for the product, where the product was made and the size of
the product.
iii. Customer Service departments – focus on assisting
customers
iv. Better Business Bureau (BBB) provides facts about products or services
v. Personal Contacts - “word of mouth “ advertising
7. Retailers:
a. Traditional retailers include
i.
Department
stores – provide broad product lines and
highlight their service
ii. Discount
Stores - highlight their offering of lower prices for products
iii.
Specialty Stores – provide a
special line of products
iv. Supermarket – large, full service store that offer many brands of products
v. Convenience Store – provide popular
items, offer
long operating hours
and are usually located in highly accessible areas
b. Contemporary retailers include:
i. Specialty Superstores - provide wide variety of
limited products at low
prices
ii. Superstores – provides a wide variety of products in the
services such as food, bakery, auto and
electronics
iii. Warehouse Club – provide products in
at
prices
iv. Factory outlets – provide high-quality products at
low prices
c. Non-store retailers allow purchasing of goods and services by telephone, computer,
television,
fax or door-to-door. . Ex. Vending machines, EBay