Documente Academic
Documente Profesional
Documente Cultură
MEXICO CAMPUS
San Juan Mexico, Pampanga
Chapter 7
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Chapter 8
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Chapter 9
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Submitted to:
Submitted by:
RCBoy V. Cativo (Group Leader)
Jubileen A. Canales
Marielle V. Castillo
Angelica C. David
Jeric Ian L. David
Subculture
A subdivision of a national culture that is based on some unifying characteristic.
Gender, religion, racial group, status, age and etc.
Social class
Virtually all human societies exhibit social stratification. Stratification sometimes
takes the form of a caste system.
Homogeneous and enduring divisions in a society.
Upper class– are the social elite who live on inherited wealth and have well-
known families
Middle class – are the average white and blue collar job/workers who live on “the
better side town” and try to be “do the proper things.”
Lower class– are on welfare, visibly poverty stricken and usually out of work of
have “the dirties”
Social factors
Reference groups
Consist of all the groups that have a direct or indirect influence on the person’s
attitude or behavior.
Family
The most influential primary group;
Family of orientation – acquires the orientation towards their religion, politics,
and economics.
Family of procreation – consists of husband, wife, and children.
Roles and statuses
Person participants in many groups throughout life – family, clubs and
organization. The person’s position in each group can be defined in terms of role
and status.
Personal factors
Age and life-cycle stage
People buy different goods and services over their lifetime. All the things they
buy are also age related.
Occupation
White-collar job and Blue-collar job.
Life style
People coming from the same subculture, social class and occupation may lead to
quite different life-style.
Personality and self-concept
Personality is usually described in terms of such traits as self-confidence,
dominance, autonomy, deference, sociability, defensiveness and adaptability.
Psychological factors
Motivation
Biogenic states of tension such as hunger or thirst and discomfort.
Psychogenic stages of tension such as needs for recognition, esteem or belonging.
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
Purchase decision
Is also influenced by unanticipated situational factors. The consumer forms a
purchase intention on the basis of such factors as expected family income,
expected price, and expected product benefits.
Post purchase behavior
After purchasing a product, the consumer will experience some level of
satisfaction or dissatisfaction.
Post purchase satisfaction – some buyers will not want the flawed product, other
will be indifferent to the flaw, and some may even see the flaw as enhancing the
value of the product.
Post purchase actions – the consumer’s satisfaction or dissatisfaction with the
product will influence subsequent behavior. If consumer satisfied he or she will
exhibit a higher probability of purchasing the product again.
Post purchase – marketers should also monitor how the buyers use and dispose of
the products.
If the consumer find new uses of the product it will help the marketers to
advertise it again with the other uses.
If the product store in cabinet it indicate that the product is not very satisfying and
the word-of-moth is not strong.
Chapter 8
"Analyzing Business Markets and Business Buying Behavior"
Who Is in the Business Market?
The business market consists of all organizations that acquire good and services to use
in the production of other products or services that are sold, rented, or supplied to
others.
• Fewer Buyers- The business marketer normally deals with far fewer buyers
than does the consumer market.
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
Global Marketing
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
Performance Review- In their stage, the buyer reviews the performance of the
particular suppliers.
The Institutional Markets- consists of schools, hospitals, nursing homes, prisons and
other institutions that provide goods and services to people in their care. Many
Institutional markets are characterized by low budgets and captive patrons.
The Government Markets- offers large opportunities for many companies, either
big or small. In most countries, government organizations are major buyers of goods
and services.
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
Chapter 9
Identifying the Company’s Competitors
Companies must avoid “competitor myopia.” A company is more likely to be
“buried” by its latent competitors than by its current ones.
Four level of competition
Brand competition – a company can see its competitors as other companies
offering similar products and services to the same customers at similar prices.
Industry competition – a company can see its competitors more broadly as all
companies making the same product or class of products.
Form competition – a company see its competitors even more broadly as all
companies manufacturing products that supply the same service.
Generic competition – a company can see its competitors still more broadly as all
companies that compete for the same consumer dollars.
Industry Concept of competition
An industry is defined as a group of firms that offers a product or class of
products that are close substitutes for each other.
Factors Determining Industry Structure
Number of sellers and degree of differentiation – the starting point for describing
an industry is to specify whether there are one, few, or many sellers and whether
the product is homogeneous or highly differentiated.
Types of industry structure types
Pure monopoly – exists when only one firm provides a certain product or service
in a certain country or area (post office, local electricity company).
Pure oligopoly – consists of a few companies producing essentially the same
commodity (oil, steel, and so on.)
Differentiated oligopoly – consists of few companies producing partially
differentiated products (autos, camera, and so on).
Monopolistic competition – industry consists of many competitors able to
differentiate their offers in whole part (restaurant, beauty shop, and so on).
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
Pure competition – consists of many competitors offering the same product and
service (stock market and commodity market).
Entry and mobility barriers – ideally, firms should be free to enter industries that
show attractive profits. Their entry would lead to more supply and ultimately
bring down profits to normal rate of return.
Exit and Shrinkage Barriers – are legal or moral obligations to customers,
creditors, and employees; government restrictions; low asset salvage value due to
overspecialization or obsolescence; lack of alternative opportunities; high vertical
integration; emotional barriers; and so on.
Cost structures – each industry will have a certain cost mix that will drive much
of its strategic conduct.
Vertical integration – in some industries, companies will find it advantageous to
integrate backward and/or forward. Vertical integration often effects lower costs
and also more control over the value-added stream.
Global reach – Companies need to compete on global basis if they are to achieve
economies of scale and keep up with the latest advances in technology.
Determining the competitors’ objective
Are shaped by many things, including its size, history, current management, and
economics.
Market Concept of Competition
Opens the company’s eyes to a broader set of actual and potential competitors and
stimulates more long-run strategic market planning.
Identifying the competitors’ strategies
A company’s closest competitors are those pursuing the same target markets with
the same strategy. A strategic group is a group of firms following the same
strategy in a given target market.
Assessing the competitors strength and weaknesses
The company needs to identify each competitor’s strength and weaknesses. As a
first step, a company should gather recent data on each competitor’s business,
particularly sales, market share, profit margin, return on investment, cash flow,
new investment, and capacity utilization.
Balancing Customer and Competitor Orientations
Competitor-centered company – is one whose moves are basically dictated by
competitors’ action and reaction. The company tracks competitors’ moves and
market shares on a market-by-market basis.
Customer-centered-company - would focus more on customer developments in
formulating its strategies. It would pay attention to the following developments.
Benchmarking
The art of finding out how and why some companies can perform tasks much
better than other company.
Three variables that every company should monitor:
Share of market – the competitor’s sales share in the target market.
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
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DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
MEXICO CAMPUS
San Juan Mexico, Pampanga
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