Project #42083 - Marketing Reply

I have Three Marketing Discussion post that I have to reply too. 100 word count on all post. They have to provoke intellegent responces as well as thought to the writers. I need ths back asap 

First Post

1. How does a buyer's characteristics influence buying behavior? Provide an illustration using one of your own past experiences. 

Culture is a determinant of buying behavior because as individuals are bought up there is exposure to different values (Kotler, 2011, p. 151).  Individuals may view or value things different than others, causing them to prefer one product over another.  Social factors can influence attitudes of individuals and can create peer-pressure for conformity (p. 153).  Personal factors can determine buying behavior because it includes different demographics like age, occupation, or even affluence level (p. 155).

One example is teenagers dressing exclusively with certain brands.  I never really cared what brands I had, but I had some friends that would refuse to wear anything if it wasn’t from a specific couple brands.  This is definitely an example of the social factors influencing buying behavior. 

2. Consider IKEA, assess their success to reach customers in different markets. What else could it be doing?

Third post:

Hello Jeanette,Brittany and Paul

You all had some interesting discussions about consumers and business markets keep up the good work, it makes the class very interesting, especially when it is posted early.

 

One of the attributes that can influence the way a consumer buys a product is the way it is package.  Is anyone familiar with the new package design of Tropicana Orange Juice? Do you like it?  Have any of you brought a product because of the package?

 Here is a video on the Tropicana  from a Marketers perspective.  It is worth the 3 minutes out of your day.  One thing to note, Tropicana has launched a new product with the new label called Trop50.  The regular juice is back to the old label.

It does make me wonder if they were taking their cue from Classic Coke and New Coke (which again tasted like Pepsi).  Now they have the classic juice in the classic package, and a new juice in the new package.Packaging Design Review - Why Tropicana Orange Juice Packaging Failed (Links to an external site.)

 

IKEA offers low price, Scandinavian furniture.  They can offer low prices because they offer furniture that the customer has to assemble.  This allows their merchandise to be cheaper to transport and take up less room in their stores.  They offer a unique shopping approach which allows customers a chance to view their merchandise on the floor, and then later have an opportunity to go purchase items after seeing them displayed.   IKEA is unique and because of the above mentioned items, it has grown to one the most popular furniture retailers in the world.  The company could offer more specialization for different markets.  Kotler (2011) cited several examples where the company tailored their products to a country or a particular need of their customer base (p. 180).  By continuing to notice the different demographics in the areas they have stores; IKEA could expand their market base and tailor their products even more to their customers.  

3. How does the business market differ from the consumer market?

The business market differs from the consumer market in one respect because there are multiple points of sale.  In the business market, items are being created, so raw materials are purchased.  Later finished goods are sold to wholesalers and then retailers (Kotler, 2011, pp. 183-184).  In the consumer market, we are just purchasing the final product with one point of sale. 

4. What are the differences or similarities in the decision-making processes between business buyers and consumers?

The stages in the buying process are similar between business buyers and consumers.  The business buyer’s stages are problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review (Kotler, 2011, p. 195).  For consumers, their stages include problem recognition, information search, evaluation, purchase decision, and post purchase behavior (p.  166). The business buyers seem to have a longer process, but it is very similar to the consumer’s process in that there is a need identified, there is a search for items that may fulfill the need, then deliberation on what to select, a decision is made, and then there is a chance to look back and see if it was a good decision.

Reference

Kotler, P. (2011). Marketing management (14th ed.). Upper Saddle River, NJ: Prentice-Hall.

Second Post:

1. How does a buyer's characteristics influence buying behavior? Provide an illustration using one of your own past experiences.

Consumer’s buying behavior is influenced by cultural, social, and personal factors (Kotler, 2011, p.52), of which “cultural factors exert the broadest and deepest influence.”

Prior to having a child, I drove a Volkswagen GLI.  The model is similar to their Jetta model, yet had a sports engine.  It perfectly fit my classy, yet sporty character.  After having a child, the storage capacity for big bulky strollers and the low proximity to the ground, made it not so child friendly.  At that point, I reached out to a used car sales representative I’m friends with and asked his help in locating an economical SUV type model that would be more convenient for me.  For almost 2 years, I’ve been the proud owner of a 2007 Toyota 4Runner but I do miss my GLI from time to time.

2. Consider IKEA, assess their success to reach customers in different markets. What else could it be doing?

IKEA  accounts for “5% to 10% of the furniture market in each country in which I operates (Capbell, 2005).”  I know that doesn’t seem like much but when considering how many marketers sell furniture their success is undeniable. This is because IKEA recognizes diversity and embraces it by adapting their marketing strategies to what influences their consumer’s buying behaviors, mostly cultural factors.  They change their product offerings dependent of what country they’re marketing to, such as in the case with the United States. Since IKEA is a Swedish based company, like most Europeans, they tend to hang most of their clothes in large armoires.  However, when conducting market research in the United States, they visited U.S. homes and learned that most Americans “prefer to store them folded (Kotler, 2011, p.179).”  As a result of these findings, IKEA designed their wardrobes with deeper drawers, in order to better meet the needs of their consumers (p. 179).

After researching IKEA’s website, I discovered that although they usually ship deliveries rather quickly, they only deliver between Tuesdays and Saturday, yet do not call in advance prior to delivery.  I think this is something that IKEA can definitely improve on and wouldn’t cost much for them to implement phone calls at least a day prior to delivery, so that the consumers can make arrangements to be present, or to have someone be present during time of delivery.

3. How does the business market differ from the consumer market?

Similar Challenges for Business & Consumer Markets

Differences between Business versus Consumer Markets

Understanding deep customer needs in new ways

Fewer, larger buyers

Identifying new opportunities for organic business growth

Close supplier-customer relationships

Improving value management techniques and tools

Professional purchasing by trained and qualified individuals

Calculating better marketing performance and accountability metrics

Multiple buying influences from reliable sources

Competing and growing in global markets

Multiple sales calls are required to close a sale

Countering the threat of products and service commoditization by bringing innovative offerings to market faster and moving to more competitive business models

Demand is ultimately derived from consumer goods

Convincing C- level executives to embrace the marketing concept and support robust marketing programs.

Demand for business goods and services is inelastic

 

Demand fluctuates

 

Buyer purchase directly from manufacturers

 

4. What are the differences or similarities in the decision-making processes between business buyers and consumers?

The decision-making process for buyers and consumers is relatively similar, however does differ.  Both tend to follow the eight stages, identified by Patrick J. Robinson as the buyphases:  (1) problem recognition, (2) general need description, (3) product specification, (4) supplier research, (5) proposal solicitation, (6) supplier selected, (7) order-routine specification, and (8) performance review (Kotler, 2011, p. 195).  These stages may be “compressed or bypassed, dependent on whether the purchase is a modified-rebuy, when an organization or consumer modifies a specific buying situation, or a straight rebuy, when an organization or consumer makes another purchase with identical factors (good, amount, terms, supplier).  The catalyst for both organizations and consumers buyers can be trigger by an internal or external stimuli (p. 196).

Unlike the decision-making process for consumers, the decision-making process for buyers tends to be more formal, complex, can include the whole organization in the decision-making, and usually requires approval, thus is defined as organizational buying and includes a buying center, or “the decision-making unit of a buying organization (Kotler, 2011, p.189)”  Buying centers consists of all individuals who will be participating in the purchasing decision-making process, which includes seven role: (1) initiators, (2) users, (3) influencers, (4) deciders, (5) approvers, (6) buyers, and (7) gatekeepers (p. 189).  That’s to b2b markets are highly competitive, in part due to the volume of money and items that are exchanged and need to clearly evaluate their alternatives which may lead to a vendor analysis to clearly rank the attributes of suppliers (p. 198), prior to making a final decision.

The corporation I work for has annual SBR’s, Senior Business Reviews, where Corporate Senior Executives visit each individual business unit to review their upcoming projects.  When the business units propose these projects, they include market research, alternatives, stakeholders, long-term benefits of implementation, and costs associated with the project launch.  During those reviews, Corporate Senior Executives will approve or deny funding for those projects to be implemented, based on the data that is presented to them.

References:

Kotler, P. (2011).  Marketing Management. 14th Edition. Upper Saddle River, NJ: Prentice-Hall.

Capell, K. (2005, November 13). Ikea. Retrieved September 30, 2014, from http://www.businessweek.com/stories/2005-11-13/ikea

Edited by Jeanette Brouillard on Sep 30 at 12:31pm

 

Subject Business
Due By (Pacific Time) 10/04/2014 12:00 am
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