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ts Economic Environment Ine Distribution Subsistence economies Rawmaterialexporting economies Industrializing economies Industrial economies Savings, Debt, Credit Availability Natural Environment Higher Pollution Levels Increased Costs of Energy Shortage of Raw Materials Changing Role of Government Accelerating Pace of Change Unlimited Opportunities for Innovation Increased Regulation Issues in the Technological Environment Varying R D Budgets Political Legal Environment Increased Legislation Special Interest Groups Social/Cultural Environment Of Organizations Of Nature Of Oneself Of Society Of the Universe Of Others Views That Express Values Social/Cultural Environment Objectives ? Influences on Buying Behavior ? Buyer Decision Making Simple Response Model Stimulus Organism Response Culture Cultural Factors Subculture Social Class Buyer Social Factors Reference Groups Roles Statuses Family Influences on Consumer Behavior Personal Influences Age and Family Life Cycle Stage Lifestyle Occupation Economic Circumstances Personality SelfConcept Psychological Factors Perception Learning Beliefs Attitudes Motivation Four Types of Buying Behavior Complex Buying Behavior Dissonance Reducing Buying Behavior Variety Seeking Behavior Habitual Buying Behavior Significant differences between brands Few differences between brands High Involvement Low Involvement Total Set Decision Making Sets Aware ness Set Consid eration Set Choice Set Decision Objectives ? How Business Consumer Markets Differ ? Organizational Buying Situations ? Participants in the Business Buying Process ? Major Influences on Organizational Buyers ? Business Buyer Decision Making ? Institutional Government Buying Organizational Factors Purchasing Department Upgrading Cross Functional Roles Centralized Purchasing Decentralized Purchasing of Small Ticket Items Inter Purchasing LongTerm Contracts Purchasing Performance Evaluation Pro. Buyers Lean Production Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review Post Purchase Purchase Info Search/ Eval Need Recognition Institutional Markets Captive Patrons Low Budgets Government Markets Domestic Suppliers Open Bids Cost Minimization Public Review Paperwork Objectives ? Identifying Competitors ? Evaluating Competitors ? Competitive Intelligence Systems ? Competitive Strategies ? Customer vs. Competitor Orientation Industry Competition ? Number of Sellers Degree of Differentiation ? Entry, Mobility, Exit barriers ? Cost Structure ? Degree of Vertical Integration ? Degree of Globalization Analyzing Competitors Competitor Actions Objectives Strengths Weaknesses Reaction Patterns Strategies Competitor’s Expansion Plans Markets Products Individual Users Commercial Industrial Educational Personal Computers Hardware Accessories Software Dell Hypothetical Market Structure Strategies Market leader Market challenger Market follower Expand Market Defend Market Share Expand Market Share Attack leader Status quo Imitate Market nicher Special ize Defense Strategies Attacker (3) Preemptive defense (4) Counter offensive defense Defender (1) Position defense (5) Mobile defense (2) Flank defense (6) Contraction defense Attack Strategies Attacker Defender (3) Encirclement attack (4) Bypass attack (2) Flank attack (5) Guerilla attack (1) Frontal attack Specific Attack Strategies ? Pricediscount ? Cheaper goods ? Prestige goods ? Product proliferation ? Product innovation ? Improved services ? Distribution innovation ? Manufacturing cost reduction ? Intensive advertising promotion “Nichemanship” ? Enduser specialist ? Verticallevel specialist ? Customersize specialist ? Specificcustomer specialist ? Geographic specialist ? Product or productline specialist ? Productfeature specialist ? Jobshop specialist ? Qualityprice specialist ? Service specialist ? Channel specialist Balance Competition Customer + Fighter orientation + Alert + Exploit weaknesses Reactive + ID opportunities + Longrun profit + Emerging needs groups Objectives ? Identifying Market Segments ? Choosing Target Markets MarketSegmentation Procedure ?Survey ?Motivations ?Attitudes ?Behavior ?Analysis ?Factors ?Clusters ?Profiling Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Life cycle, Race, Occupation, or Ine ... Lifestyle or Personality Psychographic Bases for Segmenting Business Markets ? Demographic ? Operating Variables ? Purchasing Approaches ? Situational Factors ? Personal Characteristics Measurable Accessible Substantial Differential ? Segments must be large or profitable enough to serve. ? Segments can be effectively reached and served. Actionable ? Size, purchasing power, profiles of segments can be measured. ? Segments must respond differently to different marketing mix elements actions. ? Must be able to attract and serve the segments. Effective Segmentation Additional Segmentation Criteria ? Ethical