The Consumer Buying Decision Marketing Essay

The Consumer procure Decision Marketing essayIntroductionIn this assignment I fill employed as a line of reasoning marketing advisor for the Sheffield demarcation Support Council where arse Ryan from window public has made contact with. He has been in rehabilitation window industry for fifteen years. Early years of calling was doing successfully. Window World had been a reduceed on upon replacing old windows and doors and constructing and installing sensitive conservatories for guests. First he had resisted and purposely declined mountes from local descent. Then he realised move into straining and accepting orders from fear. But everywhereall business over past fourteen months had declined by 25%. The reason wherefore he is seeking advise from us is there is something wrong with their approach in business marketing and sales. So I present allocated to meet the comp whatever and offer advise and assistance to them.Task 1.Making bills is unrivaled part of sell ing harvesting or expediency in most businesses. However, it cig artte be much much complicated than that unanalyzable mannerl some businesses serve as the middle man from producer to guest others sell to other businesses, and some placements do not come out a financial model that generates a profit for them. All of these business models pass to varied types of business transactions.There be three grease ones palms finales consumer goes with. These are limited business solving, habitual decision qualification, and ext oddmented problem solving.Limited problem solving happens during a buy decision that calls for, at most, a moderate amount of time. Limited problem solving unremarkably based on past experience more than an external teaching. green decision qualification describes a barter for decision do by in which consumers engage small-scale effort. Marketers strive to attract and maintain habitual purchasers by creating strong brands and store loyalty. Extended problem solving is a common when the guest thinks that purchase decision ca implements a massive pretend. To reduce risk, customer does lots of information. in any case there are grammatical constituents that affects consumer decision touch which are psycho system of logical factor, marketing mix, kind factor, noteal factor.Psychological factorsAlthough marketers themselves empennage exploit purchase decisions, psychological factors affect the way people receive marketers message. There are motives, attitudes, perception, and learningSocial factorsThe decision action is as well as influenced by the external, social environment , which consists of customers family, reference groups, and culture.FamilyMany purchase decisions are made more or less overlaps or services that the entire family provide consume. So, firms must consider how families can do the purchase decisions.Reference groupOne or more someone whom an individual uses as a basis for comparison regar ding beliefs, feelings, and behaviour. glossinessDefined as the shared meanings, beliefs, morals, values and customs of group people. traffic PurchaseThe process of selling crops or services to return organisation. Therefore, Business to Business marketing involves manufacturers, wholesalers, and retailers.Some firms find it more productive to focus on their efforts and resource on key business customers or else than on ultimate customer.Manufacturers or ProducersOne of the biggest business-to-business emptors are manufactures and producers. They buy raw worldly s, components and parts to supply for the product.ResellersThey are marketing intermediaries that resell manufactured products without importantly altering their form.InstitutionsInstitutions, much(prenominal) as school and hospitals purchase all kinds of goods and services. government activityIn most countries, the central government tends to be the one of the largest purchasers of goods and services.The note betwee n a B2B and a B2C transaction is not the product or service itself quite an, it is ultimate user of that product or service.Task 2.A acquire center(also kn sustain as adecision making unitorDMU), inmarketing,procurement, andorganisational studies, is a group of employees or members of any type of organization responsible for finalising major decisions, whether to purchase. These DMU participants can range from employees who devote a dress role in purchasing decisions to members are positing the in high spiritsly technical purchases, such as information systems or production equipment, also require the expertise of technical specialists. All these employees are handlely to good turn unlike roles in the buying process, which vendors must understand and adapt to in their marketing and sales efforts. These roles compromised of 6 different roles-Initiator the person who first suggests buying the grouchy product or service, frequently associated with the user-Influencer anyone o utside of DMU with influence on its members, has knowledge about potential suppliers-Decider the person with the authority to incur the decision to buy-whether to buy, what to buy, how to buy, or where to buy-Buyer the person who is projected to make actual purchase for doing paperwork etc. (handle the paperwork)-User the person who is consumes or uses the product or service-Gatekeeper the person who controls information or access, or both, to decision makers and influencersAll these roles tend to be more stiff and by job title. Degree of influence whitethorn still be affected by a strength of personality. as well as these specialised buying centres typically receive information about the product or service from commercial sources, peers, publications and the experience.The number of individuals involved in purchasing testament relies on the complexity of the invite, the value of the purchase and the level of risk held to be connected to the decision.The people taking on the d ifferent roles of the DMU interpo ripe with apiece purchasing occasion, but it is important for suppliers to identify the members of the DMU and recognize their particular necessarily so that communication efforts can be customized in each single case.According to Morris et al (2001), the mechanism of the DMU is of critical importance to the B2B marketer. Morris (1992) states thatone approach to clarify what takes place amongthe participants in the purchasing decision process is to focus on the structure of the DMU. Since the DMU is normally not a formal group, its structure is not formally established by the organisation.Task 3.Buying process begin when consumer recognize that they need unsatisfied need. Research suggests that customers go by dint of a five-stage decision-making process by dint of before, during, and later making purchases. This five-stage decision-making process summarised in the diagram to a lower place.The Consumer Buying DecisionThis model is important f or anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be as well as late for a business to influence the choice)The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers a good deal skip or reverse some of the stages.Need RecognitionThe buying process starts with need recognition. At this stage, the buyer has an unsatisfied need and regard to go form their actual, needy to state to a different, desired state. discipline SearchThe second step, after a consumer recognises a need, is to search for information about the various options that exist to satisfy the need. Customer can get information from internal and external research for information. Internal research is customer uses cause memory and knowledge about the product or service, collected through the past experiences. For the external research, buyers seek to infor mation outside of own personal knowledge base to help make the buying decisions. These are can be personal source -friends, family commercial source- advertising, salespeople public source- sunrise(prenominal)spapers, radio etc.Alternative EvaluationResearch has shown that a consumers mind organises and reason the alternatives to a support their decision process. When consumer begin to evaluate different alternatives, they often base their military ranks on a set of important attributes or evaluative criteria.PurchaseValue is a strong driver of consumers purchase decisions. Customers seek out and purchase the products and services that they believe provide them with the best value. Then, after consumers have access to the product or service, they usually consume it. invest PurchaseThe final step of the consumer decision process is seat purchase behaviour. It is common for customers to experience concerns after making a purchase decision.For the business decision process occurs to include six different stages. Though it differs many another(prenominal) ways from consumer decision process, both started with need recognition. Information search and evaluation of alternatives steps are more formal and structured in B2B process. Typically, B2B buyers specify their needs in writing and task potential suppliers to submit formal proposals, whereas B2C buying decisions usually made by individuals or families. The diagram below has shown business decision process.Business-to-Business Decision ProcessNeed RecognitionIn the first step of the B2B buying process, the buying organisation recognises through either internal or external sources, that has a drained need.Product Specifications subsequently recognising the need, the organisation considers alternative solutions and come up with potential specifications that suppliers might use to develop their proposals to supply the product.RFP ProposalsThe request proposals (RFP) is a common process through which buying o rganisation invite alternative suppliers to bid on proviso their required components. The purchasing political party may simply post its RFP needs on its Web site, work through various B2B linkages.Proposal synopsis and Supplier SelectionThe buying organisation, in conjunction with its critical decision maker, evaluates all the proposals it receive in response to its RFP. Firms are likely to fix the process to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale, such as price, quality, hark backy, and financing.Order SpecificationIn the fifth stage, the firm place its order with its preferred supplier. The order will include detailed description of goods, prices, and delivery dates.Vendor analysisAn organization that supplies specific goods or services to the business markets. Before that firm crush their vendors performance, strengths and weakness of current and prospective suppliers in terms of their capacity, sales r even offue, reputation, stocks, service etc.The Business DMP and the Consumer DMP looks similar but its really quite different because of its formality. The table below shows differences between Business DMP and Consumer DMP.Business DMPConsumer DMPHigh antecedence problem solving modeLow priority solving modeInterested in featuresInterested in advantages of productRisk factor is greaterRisk is not highNot spending their own moneySpending own moneySales cycle is yearnerSale is instantNarrow segment for the productEntire sales market of customersTask 4.The type of buying situation also affects the business to business decision process. Most B2B buying situations can be categorised into three typesA new task buyingsituation appears when the company has no earlier experience of the product or service and is buying it for the first time (Smith Taylor, 2002). In this kind of situation, the greater the cost or risk, the larger will be the number of decision contributors and the greater will be their efforts to collect information (Kotler et al., 2002).A modified rebuysituation emerges when the buyer has some previous experience of the product or service(Smith Taylor, 2002), but wants to dispose product specifications, prices, terms or sup-pliers(Kotler etal., 2002).Finally, a successive reburysituation appears when the companybuys on a regular basis (Smith Taylor, 2002). In this situation, the buyer reorders something without any modifications. It is generally handled on a routine basis by the purchasing department (Kotler et al., 2002).These varied types of buying situations call for very different marketing and selling strategies. The most complex and difficult is the new task buying because it requires the buying organisation to make changes in current practices and purchases. In new buying situations, the buying center members spend more time at each stage of B2B buying process. Modified buying is probably using existing criteria. Straight re-buys often happens when the buyer recognise the firms need and skipping all the buying process and go directly buy. So new task buying is more intense than modified buying and straight re-buying situations.What we missing at Window World areWindow World need to engage the business, marketers need persuasive content that appeals to both logic and emotion. The communication strategy should serve prospective buyers as well as their current customers with lifetime value. What they need is make customers to open Window Worlds sack up site and take their phone and calls.Strategic approach to build up long relationship with buyer, it is mutually beneficial.Answering why and how would be start of new buying situation, telling them why they need their product and how it solves their business problems. Also doing the re-enforcing value and purchase blessedness with exiting customers . One of important thing is that their product can be easy to purchase.More importantly, key account commission (KAM) changes in selling. KAM is a exclusively different organizational process used by business-to-business suppliers to manage their relationships with strategically-important customers, and it produces measurable business benefits.Role of sales people in KAMCustomer PartnerBuyer Behaviour adeptBuyer-seller Team CoordinatorCustomer work ProviderInformation GathererService ProviderMarket analyser and PlannerMarket Cost AnalyserTechnologistTask 5.Window world has been delivering excellent returns with consumers. Marketers are particularly interested in post purchase behaviour because it causes actual rather than the potential customers. Satisfied customers, whom marketers hope to create, become loyal, and spread word of mouth, so they are quite important. There are three positive post purchase outcomes as illustrated in table 1 increased customer satisfaction, decreased post purchase dissonance, and increased customer loyalty.Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The achievement of customer satisfaction leads to company loyalty and product repurchase. Setting unrealistically high consumer expectations of the product through the advertising, personal selling, or other types of promotion may lead to higher initial sales, but it eventually will vector sum in dissatisfaction when the product fails to achieve the high performance expectations. This failure could lead to dissatisfied customers and the potential for invalidating word of mouth. On the other hand, setting customer expectations too low is equally dangerous strategy. So marketers can take several steps to ensure post purchase satisfaction, such as these-Build realistic expectations, not too high and not too low.-Demonstrate countersink product use-improper usage can cause dissatisfaction.-Stand behind the product or service by providing money-back guaranties and warra nties.-Encourage customer feedback, which cuts down on negative word of mouth.-Periodically make contact with customers and thank them for their support. Because customers appreciate human contact, even it is expensive than e-mail or mail contacts. Also it gives you opportunity to correct mistakes.Post purchase dissonancePost purchase dissonance is fundamentally an after purchase cognitivebehaviour. While evaluating thebenefits after a purchase it is common for customers to be concerned about their purchase decision. It is caused bycognitive dissonance. Here the customer thinks that if customer had purchased some other item it would have been better than the one customer bought. Simply customer is notcompletelysatisfied with the purchase and is most likely to switch brands.Marketers can ward off post purchase dissonance the belowUnder promise and over deliver. You dont need to under promise, but just make sure you deliver on the promises you make.The sale doesnt end with the sale.A s in, the sale is the start, not the end of the relationship so make sure that you behave in that way. review up on the sale, ask for feedback (and act on it). Do the gracious little unexpected things that you didnt promise this could be a message a week into the sale with a voucher for money off a complementary product or even just a little card to say, thanks for your purchase, we really appreciate it., although I might and so think, If you appreciate it show me the money so an offer or freebie would be appreciated more.Anticipate what might go wrong.Think through the customer journey and try to remove any of the pain-points they might hit. issue that approach to every stage of the user experience and youll continue not to disappoint your customer.If something does go wrong, act accordingly.Sometimes things go wrong. Say repentant and then fix the problem. Sometimes the best relationships start this way.LoyaltyIn the post purchase decision making process, marketers attempt to solidity in relationship with their customers. They want customers to be satisfied with their purchase and buy from uniform company again. Loyal customers only will buy certain brands and scab at certain stores.Firm build loyalty by keeping touch with customers using e-mail marketing, thank you cards and more.treating own group well so they treat your customers well.showing that you care and remembering what they like and dont like.Firm build it by rewarding them for choosing you over your competitors.Firm build it by truly giving a damn about them and evaluate out how to make them more success, happy and joyful.