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Understanding
Marketing
Processes
and Consumer
Behavior
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BUSINESS What Is Marketing?

Process of planning and

executing the conception,
pricing, promotion and
distribution of ideas,
goods and services to
create exchanges that
satisfy individual and
organizational objectives

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 What Is a Marketing
BUSINESS Plan?

Detailed strategy for

focusing marketing
efforts on consumer
needs and wants

3
 Who Are Marketing
Managers?
Manager who plans and
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implements the marketing
activities that result in the
transfer of products or
services from producer to
consumer

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 Marketing: Providing Value
and Satisfaction

 Value and Benefits

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 Value is the relative comparison of

a product’s benefits versus its costs
 Benefits include the functions of
the product and the emotional
satisfaction associated with
owning, experiencing or
possessing it

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 What Is Relationship
Marketing?
Marketing
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strategy that
emphasizes
lasting
relationships with
customers and
suppliers

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 Marketing: Goods, Services
and Ideas
 Consumer goods are
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products purchased by
consumers for personal use
 Industrial goods are
products used by companies
to produce other products
 Services are intangible
products that can be
purchased

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 The Marketing Environment

External environment is the outside factors that

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influence marketing programs by posing
opportunities and threats. Five environmental
factors:
 Political–Legal Environment
 Social–Cultural Environment
 Technological Environment
 Economic Environment
 Competitive Environments

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 The External Marketing
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BUSINESS Competitive Environment

 Substitute products differ from those of

competitors but can fill the same need

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BUSINESS Competitive Environment

 Brand competition occurs

between similar products

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 Competitive Environment

 International competition
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matches domestic products

against foreign products e.g.
Tapal vs Lipton

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 What Is the Marketing Mix
(or the “Four P’s”)?
Combination of
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product,
pricing,
promotion and
distribution
(place)
strategies used
to market
products
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 What Is a Product?

A product is a good, service or

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idea designed to fill a consumer

need or want.

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 What Is a Product?
Product differentiation is the
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creation of a product feature
or product image that differs
enough from competing
products to attract consumers

How do they differentiate themselves?

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 What Is Pricing?
Pricing is the process of selecting the
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best price at which to sell a product.
 Prices must support a variety of costs
 Prices must be competitive
 Low- and high-price strategies can be
effective in different situations

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 What Is Distribution (Place)?
Distribution is part of the
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marketing mix concerned with
getting products from producers to
consumers.
 Decisions about warehousing, inventory
control and transportation options
 Decisions about channels

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 What Is Promotion?

Promotion is the techniques for

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communicating information about

products. There are different
promotional tools e.g.
 Advertising
 Personal Selling
 Sales Promotions
 Public Relations

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 What Is Target Marketing and
Market Segmentation?

 Target markets are groups

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of people with similar wants
and needs
 Market segmentation is
the process of dividing a
market into categories of
customer types

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 Identifying Market Segments
 Geographic variables are geographical
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units e.g. provinces, cities etc.

 Demographic variables are characteristics

of populations e.g. Age, Gender, Education,
Income, Occupation, Marital Status,
Parental Status etc.

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 Identifying Market Segments
 Psychographic variables are
consumer characteristics such as
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lifestyles, personality and

attitudes
 Behavioral variables are
consumer characteristics based
on the use of a product, benefits
sought from it, reasons for its
purchase and brand loyalty Toothpaste with:
-Whiteners
-Fluoride
-Mouth
Freshener
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BUSINESS What Is Brand Loyalty?

Pattern of regular
consumer purchasing
based on satisfaction
with a product

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 What Is Marketing
Research?
Study of consumer
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needs and wants and
the ways in which
sellers can best meet
them

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 The Research Process
 . Study the current situation
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. Select a research method
. Collect data
• Secondary data is already available
from previous research
• Primary data is collected through new
research
 . Analyze the data
. Prepare a report

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 Research Methods
 Observation involves watching and
recording consumer behavior
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 Survey uses a questionnaire which serves

as the basis of interviews

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 Research Methods
 Focus group involves a small gathering of
people who are presented with an issue and
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asked to discuss it in depth

 Experimentation compares the responses

of the same or similar people under different
circumstances under a controlled
environment

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 What Is Consumer
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Study of the decision

process by which people
buy and consume
products

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 Influences on Consumer
Behavior
Psychological influences:
individual’s motivations,
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perceptions and attitudes

Personal influences: lifestyle,

personality and economic status

Social influences: family, opinion

leaders and reference groups

Cultural influences: culture,

subculture and social class
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BUSINESS Consumer Buying Behavior

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