Description
Please find attached valuable PPT.
The Marketing Research Role in Marketing Management
Independent variables (Causes) Marketing mix (controllable) 1 Price decisions 2 Promotion decisions 3 Distribution decisions 4 Product decisions Situational Factors (uncontrollable) 1 Demand 2 Competition 3 Legal/political 4 Economic climate 5 Technological 6 Gov’t. regulation 7 Internal resources of the organization Dependent variables (Effects)
Behavioral Response 1 Awareness 2 Knowledge 3 Liking 4 Preference 5 Intent-to-buy 6 Purchase
Performance Measures 1 Sales 2 Market Share 3 Cost 4 Profit 5 ROI 6 Cash flow 7 Earnings / Share 8 Image
TYPES OF INFORMATION NEEDED FOR PLANNING AND CONTROL
I Situational analysis A Demand analysis 1 Buyers behavior and characteristics: a What do they buy? b Who buys? c Where do they buy? d Why do they buy? e How do they buy? f When do they buy? g How much do they buy? h How will buyer’s behavior and characteristics change in the future? i Are customers satisfied? At what level? j Are customers retained? At what level? 2 Market characteristics: a Market size potential b Segments c Selective demand d Future market trends
Cont …
B Competition 1 Who are competitors? 2 Competitor characteristics: a Marketing programs b Competitive behavior c Resources 3 Major strengths and weaknesses 4 Future competitive environment C General environment 1 Economic conditions and trends? 2 Government regulation and trends? 3 Pollution, safety, consumerism concerns 4 Technological trends 5 Political climate D Internal environment 1 Marketing resources / Skills 2 Production resources / Skills 3 Financial resources / Skills 4 Technological resources / Skills 5 Future trends in internal environment
Cont …
II
Marketing mix A Product 1 What product attributes/benefits are important? 2 How should the product be differentiated? 3 What segments will be attracted? 4 How important are service, warranty, and so on? 5 Is there a need for product variation/product line? 6 How important is packaging? 7 How is the product perceived relative to competitive offerings? B Place 1 What types of distributors should handle the product? 2 What are the channel attitudes and motivations for handling the product? 3 What intensity of wholesale/retail coverage is needed? 4 What margins are appropriate? 5 What forms o physical distribution are needed?
Cont …
C Price 1 What is the elasticity of demand? 2 What pricing policies are appropriate? 3 How should be product line be priced? 4 How do we establish price variations for a product? 5 How should we react to a competitive price threat? 6 How important is price to the buyer? D Promotion 1 What is the optimal promotional budget? 2 How important are sales promotion, advertising, and personal selling in stimulating demand? 3 What is the proper promotion mix? 4 How do you measure the effectiveness of the promotion tools? 5 What copy is most effective? 6 What media are most effective?
Cont …
III
Performance measures? 1 What are current sales by product line? 2 What are current market shares by product line? 3 What are current sales/market share by customer types, sales region, and so on? 4 What is our product/company image among customers, distributors, and the public? 5 What is the awareness level of our promotion? 6 What is the recall level of our brand name? 7 What percentage distributorship do we have in large retailers? Medium? Small? By geography? Customer type? 8 What percentage of the channel is selling below suggested retail price? What is the average retail price of our product? 9 What percentage of customers are satisfied? 10 What percentage of current customers are likely to repeat?
The Marketing Research Role in Marketing Management
1 Recognize a decision situation
2 Define the decision problem
3 Identify alternative courses of action
4 Evaluate the courses of action
5 Select a course of action 6 Implement and modify
The Marketing Research Role in Marketing Management
Decision-making Process Recognize a decision situation Define the decision problem Identify alternative courses of action Evaluate courses of action Select a course of action Implement and modify Marketing system Marketing mix Behavioral response
Situational factors
Performance measures
Information inputs Management experience and judgment Marketing research system
The key role of research
Product
Internal environment
Place
RESEARCH
External environment Promotion Price
The main categories of research
Strategic Tactical
Marketing research
Data bank
The two-way research process
Organisation
Quantitative - Objective Enquiries Quantitative - Subjective Information
Data source
Secondary data sources
Marketing research
Secondary information
Internal sources
External sources
Primary data sources
Marketing research
Primary information
SURVEYS Personal / Postal / Telephone Panel data / focus groups
OBSERVATION Personal
Mechanical
Survey method Personal interview
Advantages Question can be modified In-depth answers possible Much qualitative data from a small sample Flexible-can allow for reaction , visual information Observation improves accuracy Rapport leads to fewer refusals. No travel expenses, so economic if good return rate No interviewer bias Can be genuinely random Anonymous returns Can be completed at respondent’s leisure
Disadvantages Professional interviewers expensive Possible interviewer bias Can be slow People often not at home Invasion of privacy Disagreements can arise Non-response rate high, unless questions are short , simple and not too probing Takes longer Inflexible and no observation Higher postage rates increase costs Difficult and expensive to obtain complete, up-to-date mail lists.
Postal survey
Cont …
Telephone survey
Easy to administer Quick No travel expenses, so cheap if local and in evenings Flexible – can allow for reaction and some in-depth answers Questions can be modified Some anonymity
Professional interviewers expensive Invasion of privacy Telephone charges can be high. No observation Hard to develop trust Not genuinely random-sample limited to respondents with Nonresponse rate high- engaged signal/no answer/refusals Scope and sample limited Might not be treated seriously More costly if incentives are large
Focus group
Informality and personal rapport encourages accuracy Questions can be modified Can run on a regular basis In-depth answers reliable Observations and recording of answers and reactions Visual details
Sampling methods
Sampling methods
Probability
Non-probability
Random
Stratified or multistage
Cluster
Convenience
Quota
Systematic
The chronological research process
1. Marketing dept. or manager defines background i.e. why research is necessary.
2. Research brief devised, including problem or opportunity to be analysed and clear statement of objectives.
3. Exploratory research carried out.
4. Hypothesis developed.
5. Research proposal and design prepared, including the method to be used / population to be surveyed/time-scale and costs/use of specialist agencies.
Cont …
6. Data collected – prepared/supervised/verified.
7. Data analysed and evaluated-significant relationships established and inter
8. Research presented and reported, including specific data and findings / recommendations.
The marketing information system
INPUTS PROCESSING Classifying Storing Indexing Retrieving
FEEDBACK: ADJUSTING INFORMATION INTAKE
OUTPUTS Information for marketing decision making
External and internal information sources
Key elements of market selection
Segmentation Deciding on variables and determining segments
Targeting Which targets should be targeted and when?
Positioning Establish product position in consumer's minds
THE MARKETING RESEARCH ROLE IN MARKETING MANAGEMENT
Independent variables (causes)
Targeting Which targets should be targeted and when?
Positioning Establish product position in consumer's minds
The scope of buying behaviour
Marketing effort
Customers Individual buyer behaviour Organisational buying behaviour Decisionmaking units
Marketing / economic related Stimuli Social/cultural and environmental Personal and psychological Models of consumer behaviour
Reference group influences
Group influence of product class
Weak Public necessities: Clothing Strong Public luxuries: Cars Tobacco Wine
Group influence on brand type
Strong
Furniture Soaps Clocks and watches
Restaurant meals
Holidays
Private necessities: Beds Weak Detergents Breads and milk Roof insulation Soft drinks
Private necessities: Microwave ovens Video recorders Television games Instant coffee
Maslow’s hierarchy of needs
Origins LEARNED Stage and qualities 5.Self –actualisation Self –fulfillment Spiritual Creativity Development of talent Self-awareness Related products/services Education Specialist hobbies Sports
Luxury vacations
Gourmet food Long-life products
4.Self –esteem Authority Status and reputation Political Prestige Self-respect Ego and confidence Peer and community respect INSTINCTIVE Promotion and achievement
Cars Housing Material goods Furniture Prestige items Books
Cont …
LEARNED
Sociological
3.Social identification Affiliation Love and sex Freedom Belonging Recognition Comparison
Cosmetics Clothing Entertainment Leisure Food and alcohol Tobacco
Psychological
2. Safety Security and stability Religion Protection Physical well-being Fair treatment Finance Safe future
Insurance Alarm systems Tyres and seatbelts Pensions Investments Medicines
Biological
INSTINCTIVE
1.Basic physiological Air Food Drink Sleep Comfort Survival
Bread Milk Beds and bedding Heating Lighting Basic garments
Maslow’s hierarchy applied to the marketing of biscuits
Maslow’s needs stage
1. Basic physiological 2. Safety 3. Social identification 4. Self -esteem 5. Self- actualisation
Message to consumer
‘Fills you up’ ‘Pure through and through’
‘Join the in-crowd’
‘Special biscuit for the connoisseur’ ‘Tease your taste buds with a new experience’
Information processing
Stimuli
Exposure
Attention
Comprehension
Memory
Yielding/acceptance
Retention
The problem-solving process
Intensity of problem-solving
Routine
Limited
Extensive
Low
Medium
High
Involvement, price, purchase frequency, risk, information level
Problem recognition
Stimuli
Problem recognition
Cont …
Internal search for solution
Internal search for solution
Intention
Evaluation of alternative solutions
Purchase
Purchase decision
Satisfaction
Purchase act
Post-purchase evaluation
Factors influencing Organisational buying decisions
Interpersonal Relationships Conflicts Co-operation Authority Empathy Persuasiveness Organisational Prestige Goals/objectives Resources e.g. financial Decision-making units Purchasing policies Supplier Geographical location Nature of suppliers Purchasing environment Reliability Supplier interaction Information exchange Individual Age Income Education Status Personality Marketing Product quality and performance Benefits Quantity Availability Service Selling methods Distribution channels Economic Business conditions Product price Trade conditions Commercial risk Level of demand Environmental Social/cultural Laws and regulations Political decisions Competitive actions Ecological considerations
Organisational decisions
Technological Rate of change Technical features Design New product development Product complexity
The organisational buying decision process
Influencing factors Problem recognition Analysis of possible solution Information search Suppliers contacted and products sought Product solutions evaluated
Monitoring and feedback
Cont …
Suitable solutions chosen Terms negotiated
Purchase act Products and suppliers evaluated
P.E.S.T. Environmental factors
EXTERNAL ENVIRONMENT Political / Legal INTERNAL Economic ORGANIZATION ENVIRONMENT Technological Social / cultural
EXTERNAL ENVIRONMENT
PEST EXTERNAL FACTORS
Political / Legal Environment – includes:
•Central and local government systems; •Political ideologies and pressure groups; •Financing and grants; •Voluntary codes of practice; •Statutory legislation •Consumer protection measures. Economic Environment – includes: •Stage of the business cycle – prosperity/ recession/ depression/ recovery; •Rate of inflation
Social / Cultural Environment – includes: •Demographic (population) and geographic trends; •Socio-economic class groups; •Status and background •Norms and values •Lifestyles and habits •Peer groups and associates; •Specific characteristics, e.g. language and practices
Technological Environment – includes: •Technology transfer •Innovation •Desirable effects – living standards, leisure time;
•Unemployment rate
•Undesirable effects – health hazards, unemployment, aesthetic and environmental •Resource availability problems; •Income levels – total / disposable / discretionary •Short term impact •Long term application •Interest rates
The competitive environment
COMPETITIVE ENVIRONMENT
Direct competition from marketers of the same products or service
Direct competition from marketers of similar products or service
ORGANIZATION
Competition from marketers of substitutable products or services
Indirect competition from marketers of all organizations for the consumer’s purchases
COMPETITIVE ENVIRONMENT
Forces Influencing Organizational Buying Behavior
Environmental forces
•Economic Outlook: Domestic & Global •Pace of Technological Change •Global Trade Relations
Organizational forces Organizational Buying Behavior
•Goals, Objectives and Strategies •Organizational Position of Purchasing
Group forces
•Roles, relative influence, and patterns of interaction of buying decision participants
Individual forces
•Job Function, past experience and buying motives of individual decision participants
Strategic Priorities in Purchasing Strategic Priority
Modeling the Total Cost of Outside Purchases
Description
Developing a clear grasp of the factors that drive the cost of purchased products and services.
Creating Purchasing Strategies Tied to Corporate Goals
Conducting a rigorous analysis of the supply industry to determine how suppliers can contribute fundamental value to corporate goals. Structuring relationships with key suppliers to achieve mutual dependence and goal congruence.
Building and Sustaining Supplier Relationships
Integrating the Supply Chain
Managing purchase and flow of materials from suppliers through production and on to customers
Leveraging Supplier Innovation
Creating value by bringing suppliers directly into the new product development process
Major Elements of Organizational Buying Behavior
Evoked Set of Alternatives Individual Responsibilities Comprising the Buying Center
Environmental Constraints (Physical, Technological, Economic, Social) Organizational Requirements (Technical, Financial)
Sources of information
Evaluation Criteria
Interaction Structure
Feasible Set of Alternatives
Formation of Individual Preferences
Formation of Organizational Preferences
Organizational Choice
Drivers of Sustainable Success in Service Business
Strategic focus
Generosity
Executional Excellence
Brand Cultivation
Values – Driven Leadership
Control of Destiny
Acting Small
Investment in Employee Success
Trust-based Relationships
Core Values That Sustain Service Performance
Excellence
INNOVATION
Joy
Respect Teamwork
INTEGRITY Social Profit
Strategy Connections
Continuous Change
Frequent Change Rare Change
Core Values
Unchanging
Strategy Connections
Continuous Change
Frequent Change Rare Change
Core Values
Unchanging
From Core Strategy to Total Product
Definition of Business Design of Business
Core Strategy
Integrated Substrategies
Market Offer Total Product
Design and Execution
Execution
Whole of Customer’s Experience with Company
Performance of Individual Activities
Model of Trust-Based Relationships
Employee Relationships Relationship Commitment Levels 1. 2. Trust of Company Perceived Fairness Partner Relationships Customer Relationships 3. 4. 5. 6. 7. Interest in Alternatives Acquiescence Cooperation Enhancement Identity Advocacy Ownership
Perceived Competence
The Zone of Tolerance Desired Service
Zone of Tolerance
Adequate Service
Investing in Employee Success
Investing in Employee Success
Strong Beginnings
Continuous Learning
Ownership Attitudes
A Service Branding Model
Company’s Presented Brand
Brand Awareness
Brand Equity Customer Experience with Company Brand Meaning
Cultivating Brand Equity
Internalize the Brand
Dare to be Different
Brand Equity
Make an Emotional Connection
Determine Your Own Fame
doc_547840759.ppt
Please find attached valuable PPT.
The Marketing Research Role in Marketing Management
Independent variables (Causes) Marketing mix (controllable) 1 Price decisions 2 Promotion decisions 3 Distribution decisions 4 Product decisions Situational Factors (uncontrollable) 1 Demand 2 Competition 3 Legal/political 4 Economic climate 5 Technological 6 Gov’t. regulation 7 Internal resources of the organization Dependent variables (Effects)
Behavioral Response 1 Awareness 2 Knowledge 3 Liking 4 Preference 5 Intent-to-buy 6 Purchase
Performance Measures 1 Sales 2 Market Share 3 Cost 4 Profit 5 ROI 6 Cash flow 7 Earnings / Share 8 Image
TYPES OF INFORMATION NEEDED FOR PLANNING AND CONTROL
I Situational analysis A Demand analysis 1 Buyers behavior and characteristics: a What do they buy? b Who buys? c Where do they buy? d Why do they buy? e How do they buy? f When do they buy? g How much do they buy? h How will buyer’s behavior and characteristics change in the future? i Are customers satisfied? At what level? j Are customers retained? At what level? 2 Market characteristics: a Market size potential b Segments c Selective demand d Future market trends
Cont …
B Competition 1 Who are competitors? 2 Competitor characteristics: a Marketing programs b Competitive behavior c Resources 3 Major strengths and weaknesses 4 Future competitive environment C General environment 1 Economic conditions and trends? 2 Government regulation and trends? 3 Pollution, safety, consumerism concerns 4 Technological trends 5 Political climate D Internal environment 1 Marketing resources / Skills 2 Production resources / Skills 3 Financial resources / Skills 4 Technological resources / Skills 5 Future trends in internal environment
Cont …
II
Marketing mix A Product 1 What product attributes/benefits are important? 2 How should the product be differentiated? 3 What segments will be attracted? 4 How important are service, warranty, and so on? 5 Is there a need for product variation/product line? 6 How important is packaging? 7 How is the product perceived relative to competitive offerings? B Place 1 What types of distributors should handle the product? 2 What are the channel attitudes and motivations for handling the product? 3 What intensity of wholesale/retail coverage is needed? 4 What margins are appropriate? 5 What forms o physical distribution are needed?
Cont …
C Price 1 What is the elasticity of demand? 2 What pricing policies are appropriate? 3 How should be product line be priced? 4 How do we establish price variations for a product? 5 How should we react to a competitive price threat? 6 How important is price to the buyer? D Promotion 1 What is the optimal promotional budget? 2 How important are sales promotion, advertising, and personal selling in stimulating demand? 3 What is the proper promotion mix? 4 How do you measure the effectiveness of the promotion tools? 5 What copy is most effective? 6 What media are most effective?
Cont …
III
Performance measures? 1 What are current sales by product line? 2 What are current market shares by product line? 3 What are current sales/market share by customer types, sales region, and so on? 4 What is our product/company image among customers, distributors, and the public? 5 What is the awareness level of our promotion? 6 What is the recall level of our brand name? 7 What percentage distributorship do we have in large retailers? Medium? Small? By geography? Customer type? 8 What percentage of the channel is selling below suggested retail price? What is the average retail price of our product? 9 What percentage of customers are satisfied? 10 What percentage of current customers are likely to repeat?
The Marketing Research Role in Marketing Management
1 Recognize a decision situation
2 Define the decision problem
3 Identify alternative courses of action
4 Evaluate the courses of action
5 Select a course of action 6 Implement and modify
The Marketing Research Role in Marketing Management
Decision-making Process Recognize a decision situation Define the decision problem Identify alternative courses of action Evaluate courses of action Select a course of action Implement and modify Marketing system Marketing mix Behavioral response
Situational factors
Performance measures
Information inputs Management experience and judgment Marketing research system
The key role of research
Product
Internal environment
Place
RESEARCH
External environment Promotion Price
The main categories of research
Strategic Tactical
Marketing research
Data bank
The two-way research process
Organisation
Quantitative - Objective Enquiries Quantitative - Subjective Information
Data source
Secondary data sources
Marketing research
Secondary information
Internal sources
External sources
Primary data sources
Marketing research
Primary information
SURVEYS Personal / Postal / Telephone Panel data / focus groups
OBSERVATION Personal
Mechanical
Survey method Personal interview
Advantages Question can be modified In-depth answers possible Much qualitative data from a small sample Flexible-can allow for reaction , visual information Observation improves accuracy Rapport leads to fewer refusals. No travel expenses, so economic if good return rate No interviewer bias Can be genuinely random Anonymous returns Can be completed at respondent’s leisure
Disadvantages Professional interviewers expensive Possible interviewer bias Can be slow People often not at home Invasion of privacy Disagreements can arise Non-response rate high, unless questions are short , simple and not too probing Takes longer Inflexible and no observation Higher postage rates increase costs Difficult and expensive to obtain complete, up-to-date mail lists.
Postal survey
Cont …
Telephone survey
Easy to administer Quick No travel expenses, so cheap if local and in evenings Flexible – can allow for reaction and some in-depth answers Questions can be modified Some anonymity
Professional interviewers expensive Invasion of privacy Telephone charges can be high. No observation Hard to develop trust Not genuinely random-sample limited to respondents with Nonresponse rate high- engaged signal/no answer/refusals Scope and sample limited Might not be treated seriously More costly if incentives are large
Focus group
Informality and personal rapport encourages accuracy Questions can be modified Can run on a regular basis In-depth answers reliable Observations and recording of answers and reactions Visual details
Sampling methods
Sampling methods
Probability
Non-probability
Random
Stratified or multistage
Cluster
Convenience
Quota
Systematic
The chronological research process
1. Marketing dept. or manager defines background i.e. why research is necessary.
2. Research brief devised, including problem or opportunity to be analysed and clear statement of objectives.
3. Exploratory research carried out.
4. Hypothesis developed.
5. Research proposal and design prepared, including the method to be used / population to be surveyed/time-scale and costs/use of specialist agencies.
Cont …
6. Data collected – prepared/supervised/verified.
7. Data analysed and evaluated-significant relationships established and inter
8. Research presented and reported, including specific data and findings / recommendations.
The marketing information system
INPUTS PROCESSING Classifying Storing Indexing Retrieving
FEEDBACK: ADJUSTING INFORMATION INTAKE
OUTPUTS Information for marketing decision making
External and internal information sources
Key elements of market selection
Segmentation Deciding on variables and determining segments
Targeting Which targets should be targeted and when?
Positioning Establish product position in consumer's minds
THE MARKETING RESEARCH ROLE IN MARKETING MANAGEMENT
Independent variables (causes)
Targeting Which targets should be targeted and when?
Positioning Establish product position in consumer's minds
The scope of buying behaviour
Marketing effort
Customers Individual buyer behaviour Organisational buying behaviour Decisionmaking units
Marketing / economic related Stimuli Social/cultural and environmental Personal and psychological Models of consumer behaviour
Reference group influences
Group influence of product class
Weak Public necessities: Clothing Strong Public luxuries: Cars Tobacco Wine
Group influence on brand type
Strong
Furniture Soaps Clocks and watches
Restaurant meals
Holidays
Private necessities: Beds Weak Detergents Breads and milk Roof insulation Soft drinks
Private necessities: Microwave ovens Video recorders Television games Instant coffee
Maslow’s hierarchy of needs
Origins LEARNED Stage and qualities 5.Self –actualisation Self –fulfillment Spiritual Creativity Development of talent Self-awareness Related products/services Education Specialist hobbies Sports
Luxury vacations
Gourmet food Long-life products
4.Self –esteem Authority Status and reputation Political Prestige Self-respect Ego and confidence Peer and community respect INSTINCTIVE Promotion and achievement
Cars Housing Material goods Furniture Prestige items Books
Cont …
LEARNED
Sociological
3.Social identification Affiliation Love and sex Freedom Belonging Recognition Comparison
Cosmetics Clothing Entertainment Leisure Food and alcohol Tobacco
Psychological
2. Safety Security and stability Religion Protection Physical well-being Fair treatment Finance Safe future
Insurance Alarm systems Tyres and seatbelts Pensions Investments Medicines
Biological
INSTINCTIVE
1.Basic physiological Air Food Drink Sleep Comfort Survival
Bread Milk Beds and bedding Heating Lighting Basic garments
Maslow’s hierarchy applied to the marketing of biscuits
Maslow’s needs stage
1. Basic physiological 2. Safety 3. Social identification 4. Self -esteem 5. Self- actualisation
Message to consumer
‘Fills you up’ ‘Pure through and through’
‘Join the in-crowd’
‘Special biscuit for the connoisseur’ ‘Tease your taste buds with a new experience’
Information processing
Stimuli
Exposure
Attention
Comprehension
Memory
Yielding/acceptance
Retention
The problem-solving process
Intensity of problem-solving
Routine
Limited
Extensive
Low
Medium
High
Involvement, price, purchase frequency, risk, information level
Problem recognition
Stimuli
Problem recognition
Cont …
Internal search for solution
Internal search for solution
Intention
Evaluation of alternative solutions
Purchase
Purchase decision
Satisfaction
Purchase act
Post-purchase evaluation
Factors influencing Organisational buying decisions
Interpersonal Relationships Conflicts Co-operation Authority Empathy Persuasiveness Organisational Prestige Goals/objectives Resources e.g. financial Decision-making units Purchasing policies Supplier Geographical location Nature of suppliers Purchasing environment Reliability Supplier interaction Information exchange Individual Age Income Education Status Personality Marketing Product quality and performance Benefits Quantity Availability Service Selling methods Distribution channels Economic Business conditions Product price Trade conditions Commercial risk Level of demand Environmental Social/cultural Laws and regulations Political decisions Competitive actions Ecological considerations
Organisational decisions
Technological Rate of change Technical features Design New product development Product complexity
The organisational buying decision process
Influencing factors Problem recognition Analysis of possible solution Information search Suppliers contacted and products sought Product solutions evaluated
Monitoring and feedback
Cont …
Suitable solutions chosen Terms negotiated
Purchase act Products and suppliers evaluated
P.E.S.T. Environmental factors
EXTERNAL ENVIRONMENT Political / Legal INTERNAL Economic ORGANIZATION ENVIRONMENT Technological Social / cultural
EXTERNAL ENVIRONMENT
PEST EXTERNAL FACTORS
Political / Legal Environment – includes:
•Central and local government systems; •Political ideologies and pressure groups; •Financing and grants; •Voluntary codes of practice; •Statutory legislation •Consumer protection measures. Economic Environment – includes: •Stage of the business cycle – prosperity/ recession/ depression/ recovery; •Rate of inflation
Social / Cultural Environment – includes: •Demographic (population) and geographic trends; •Socio-economic class groups; •Status and background •Norms and values •Lifestyles and habits •Peer groups and associates; •Specific characteristics, e.g. language and practices
Technological Environment – includes: •Technology transfer •Innovation •Desirable effects – living standards, leisure time;
•Unemployment rate
•Undesirable effects – health hazards, unemployment, aesthetic and environmental •Resource availability problems; •Income levels – total / disposable / discretionary •Short term impact •Long term application •Interest rates
The competitive environment
COMPETITIVE ENVIRONMENT
Direct competition from marketers of the same products or service
Direct competition from marketers of similar products or service
ORGANIZATION
Competition from marketers of substitutable products or services
Indirect competition from marketers of all organizations for the consumer’s purchases
COMPETITIVE ENVIRONMENT
Forces Influencing Organizational Buying Behavior
Environmental forces
•Economic Outlook: Domestic & Global •Pace of Technological Change •Global Trade Relations
Organizational forces Organizational Buying Behavior
•Goals, Objectives and Strategies •Organizational Position of Purchasing
Group forces
•Roles, relative influence, and patterns of interaction of buying decision participants
Individual forces
•Job Function, past experience and buying motives of individual decision participants
Strategic Priorities in Purchasing Strategic Priority
Modeling the Total Cost of Outside Purchases
Description
Developing a clear grasp of the factors that drive the cost of purchased products and services.
Creating Purchasing Strategies Tied to Corporate Goals
Conducting a rigorous analysis of the supply industry to determine how suppliers can contribute fundamental value to corporate goals. Structuring relationships with key suppliers to achieve mutual dependence and goal congruence.
Building and Sustaining Supplier Relationships
Integrating the Supply Chain
Managing purchase and flow of materials from suppliers through production and on to customers
Leveraging Supplier Innovation
Creating value by bringing suppliers directly into the new product development process
Major Elements of Organizational Buying Behavior
Evoked Set of Alternatives Individual Responsibilities Comprising the Buying Center
Environmental Constraints (Physical, Technological, Economic, Social) Organizational Requirements (Technical, Financial)
Sources of information
Evaluation Criteria
Interaction Structure
Feasible Set of Alternatives
Formation of Individual Preferences
Formation of Organizational Preferences
Organizational Choice
Drivers of Sustainable Success in Service Business
Strategic focus
Generosity
Executional Excellence
Brand Cultivation
Values – Driven Leadership
Control of Destiny
Acting Small
Investment in Employee Success
Trust-based Relationships
Core Values That Sustain Service Performance
Excellence
INNOVATION
Joy
Respect Teamwork
INTEGRITY Social Profit
Strategy Connections
Continuous Change
Frequent Change Rare Change
Core Values
Unchanging
Strategy Connections
Continuous Change
Frequent Change Rare Change
Core Values
Unchanging
From Core Strategy to Total Product
Definition of Business Design of Business
Core Strategy
Integrated Substrategies
Market Offer Total Product
Design and Execution
Execution
Whole of Customer’s Experience with Company
Performance of Individual Activities
Model of Trust-Based Relationships
Employee Relationships Relationship Commitment Levels 1. 2. Trust of Company Perceived Fairness Partner Relationships Customer Relationships 3. 4. 5. 6. 7. Interest in Alternatives Acquiescence Cooperation Enhancement Identity Advocacy Ownership
Perceived Competence
The Zone of Tolerance Desired Service
Zone of Tolerance
Adequate Service
Investing in Employee Success
Investing in Employee Success
Strong Beginnings
Continuous Learning
Ownership Attitudes
A Service Branding Model
Company’s Presented Brand
Brand Awareness
Brand Equity Customer Experience with Company Brand Meaning
Cultivating Brand Equity
Internalize the Brand
Dare to be Different
Brand Equity
Make an Emotional Connection
Determine Your Own Fame
doc_547840759.ppt