Definition of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.

Marketing includes promotion, advertisement and selling products and services to the consumers.
Marketing is the key component of any venture and includes aspects like writing product descriptions,
designing website pages, improving customer services, establishing business & market segments and
conducting market research. Marketing involves strategies that aid in the growth of a business venture.

What is the market?

The place where two or more parties interact to exchange goods or services is called the market.
The parties involved in such an interaction are known as buyers and sellers. The market can be
online where there is no physical contact, face-to-face where the buyer comes to seller to buy
any product or receive any service.

In another terms, the market can also be referred to the place where securities or commodities are
traded. The market establishes the prices of goods and services that are determined by the supply
and demand

What are the 4Ps of marketing? (Marketing mix explained)

The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,”
or the combined tools and methodologies used by marketers to achieve their marketing
objectives.

Product

The product is the good or service being marketed to the target audience.

Generally, successful products fill a need not currently being met in the marketplace or provide a
novel customer experience that creates demand. For example, the original iPhone filled a need in
the market for a simplified device that paired a phone with an iPod, and the chia pet provided a
humorous experience for consumers that was utterly unique.

As you are working on your product, it is essential to consider potential customers in your target
audience and their unique needs. Some questions to consider when working on a product
include:

 What is your product?

  What does your product do? Does the product meet an unfilled need or provide a novel
experience?

 Who is your product’s target audience?

 How is your product different from what others offer?

Price

Price is the cost of a product or service.

When marketing a product or service, it is important to pick a price that is simultaneously

accessible to the target market and meets business goals. Different pricing models can have a
significant impact on the overall success of a product. For example, if you price your product too
high for your targeted audience, then very few of them will likely purchase it. Similarly, if you
price your product too low, then some might pass it up simply because they are concerned it
might be of inferior quality and cut into your potential profit margins.

To identify a successful price, you will want to thoroughly understand your target audience and
their willingness to pay for your product. Some questions you might ask yourself as you are
considering your product’s price include:

 What is the price range of your product’s competitors?

 What is the price range of your target audience?
 What price is too high for your audience? What price is too low?
 What price best fits your target market?

Place

Place is where you sell your product and the distribution channels you use to get it to your
customer.

Much like price, finding the right place to market and sell your product is a key factor in
reaching your target audience. If you put your product in a place that your target customer
doesn’t visit—whether on or offline— then you will likely not meet your sales target. The right
place, meanwhile, can help you connect with your target audience and set you up for success.

For example, imagine you are selling an athletic shoe you designed. Your target market is
athletes in their early twenties to late thirties, so you decide to market your product in sports
publications and sell it at specialty athletics stores. By focusing on sports stores over shoe stores
in general, you are targeting your efforts to a specific place that best fits your marketing mix.

To decide the best place to market and sell your product, you should consider researching the
physical places or digital channels that your target audience shops and consumes information.
Some questions to consider include:
  Where will you sell your product?
 Where does your target audience shop?
 What distribution channels are best to reach your target market?

Promotion

Promotion is how you advertise your product or service. Through promotional activities, you
will get the word out about your product with an effective marketing campaign that resonates
with your target audience.

There are many different ways to promote your product. Some traditional methods include word
of mouth, print advertisements, and television commercials. In the digital age, though, you can
create online marketing campaigns to promote your product, using such channels as content
marketing, email marketing, display ads, and social media marketing.

Some questions to consider as you are working on your product promotion include:

 What is the best time to reach your target audience?

 What marketing channels are most effective for your target audience?
 What marketing messages would most resonate with your target audience?
 What advertising approaches are most persuasive to your target audience?

What is marketing process ?

The marketing process is the series of steps businesses follow to promote

their products or services to potential customers. It involves identifying the
target audience, creating a marketing strategy, implementing the plan, and
capturing customer value. Essentially, it's the process of making people
aware of what a business offers and convincing them to buy it.
The marketing process is a five-step process marketers use to create customer value and build long-
lasting customer relationships.

A small online clothing store follows the marketing process by identifying its target market of
young adults, creating a customer-driven marketing strategy that emphasizes trendy and
affordable fashion, developing an integrated marketing plan that includes social media ads and
influencer partnerships, fostering long-term relationships through personalized customer service
and loyalty programs, and capturing value by offering competitive prices and encouraging repeat
purchases.

Marketing Process Steps

Now, let's take a look at the marketing process steps. The five steps of the marketing process
include:

1. Understanding customers and the market,

 2. Creating a customer-driven marketing strategy,
3. Creating an integrated marketing plan,
4. Fostering long-term sustainable customer relationships,
5. Capturing value from customers.

Figure 1 below outlines the marketing process steps.

Understanding Customers and Markets

The first step of the strategist marketing process includes understanding customers and markets.
The foundations of this step include understanding customer wants and needs.

A customer need is something an individual needs in terms of survival. These include basic
necessities such as food, water, shelter, or clothing.

A customer want is something that an individual desires. For instance, an individual needs food
to survive; however, the individual might want different types of food, such as soup, pizza, or
rice.

Customer wants and needs are what create demand in a market. The market is where customers
and businesses can engage in exchange relationships. In turn, demand is fulfilled by the market,
specifically market offerings. Market offerings are the different types of goods and services
businesses create to satisfy customer demand.

Beyond just meeting demand requirements, marketers must ensure that a good or service creates
customer value. Creating value can lead to satisfied customers who stay loyal to the brand. As a
result, it is also crucial for building long-term customer relationships.

Creating a Customer-Driven Marketing Strategy

The following step involves creating a customer-driven marketing strategy. Now that we
understand the basics of markets and customers, we must decide which customers and markets to
serve.

Creating a marketing strategy involves market segmentation, targeting, and positioning (STP).
The STP model helps marketers decide which customers to target and how.

Check out our Market Segmentation, Targeting, and Positioning explanations to learn more.

Once marketers have selected a target customer group, it is essential to position and
differentiate the product. Positioning and differentiation allow the product or service to stand
out from competitors by highlighting the value it brings customers, thus, satisfying customer
needs.

The business must also decide which overarching concept will lead its marketing strategy. The
five key concepts are as follows:
  The production concept follows the idea that customers will always demand products
that are available on the market. Therefore, companies have to focus on maximizing
production and distribution.
 The product concept is the idea that customers demand high-quality products that have
useful features and numerous benefits. Therefore, companies should focus on product
innovation and differentiation.
 The selling concept argues that customers will not value or purchase a product unless a
brand specifically targets large promotional campaigns at them.
 The marketing concept follows that companies should create products that satisfy
customers' wants and needs better than competitors rather than focusing on production or
selling. Therefore, understanding customers is key.
 The social marketing concept is the most recent one. This concept argues that
organizations should satisfy both the short and long-term needs of customers and society
in general. The focus here is on maintaining the welfare of the company and society.
Therefore, the focus should be on sustainability.

Creating an Integrated Marketing Plan

Once a marketing strategy has been established, it is time to create a marketing plan.

The marketing plan outlines how the organization or brand will generate customer value
through different mediums.

The marketing plan broadly relates to the 4Ps of marketing: product, price, promotion, and place.
The brand can deliver value to its target customers through the different elements of the
marketing mix.

Fostering Long-Term Sustainable Customer Relationships

Once marketers have established an integrated marketing plan, they must focus on building
customer relationships. Every brand aims to foster long-term customer relationships to sustain
brand preference and customer loyalty.

Customer relationship management (CRM) is the overall process of interacting with

customers to build long-term sustainable relationships.

The primary goals of customer relationship management are to:

 Increase customer value perception by highlighting the benefits and features of products
and services,
 Increase customer satisfaction and mitigate customer dissatisfaction,
 Engage customers through brand management and marketing communications on various
channels,
 Promote customer-generated marketing (e.g., user-generated content (USG) on social
media, customer reviews, competitions, etc.).
Capturing Value from Customers

Once the first four steps of the marketing process are complete, it is time for the company to
capture value from customers.

What exactly does this mean? After ensuring customer value creation, the brand can also capture
customer value. This ensures that the brand stays profitable in the long run.

How does a brand capture value? There are a few synergies that allow for this to happen, and
they are as follows:

1. By creating brand preference within target customers and long-term customer

relationships, the brand ensures repeat purchases (retention) and customer loyalty. This
idea is known as customer equity.
2. The brand can capture value due to increased market share creating customer value and
inducing retention.
3. Higher market share and customer loyalty lead to an increase in revenue and profit,
contributing to the company's financial success.

As a result, the marketing process allows customers to gain value from brands and products,
while brands can capture value from customer relationships.

What is Societal Marketing?

The societal marketing concept holds that a company should make good marketing decisions by
considering consumers’ wants, the company’s requirements, and society’s long-term interests.

Philip Kotler defines it as “the societal marketing concept holds that the organization’s
task is to determine the needs, wants, and interests of target markets and to deliver the
desired satisfactions more effectively and efficiently than competitors in a way that
preserves or enhances the consumer’s and the society’s well-being.”

Societal Marketing creates a favorable image for the company increases sales. It is not
the same as the terms of social marketing and social media marketing. It is a term closely
related to CSR and sustainable development.

It emphasizes social responsibilities and suggests that to sustain.

 It calls for sustainable marketing, socially and environmentally responsible marketing
that meets consumers’ and businesses’ present needs while also preserving or enhancing
future generations’ ability to meet their needs.

The global warming panic button is pushed, and a revelation is required to use our
resources. So companies are slowly, either fully or partially, trying to implement the
societal marketing concept.

Societal Marketing Concept: Definition, Advantages,

Examples
The Societal Marketing Concept puts Human welfare on top before profits and satisfying the
wants.

Societal Marketing emphasizes social responsibilities and suggests that to sustain long-term
success, the company should develop a marketing strategy to provide value to the customers to
maintain and improve both the customers’ and society’s well-being better than the competitors.

The societal marketing concept has developed from the conflict between individual consumers’
short-term needs and society’s long-run well-being.

This concept is also termed “the human concept,” “the intelligent consumption concept,” and the
“ecological imperative concept.”

What is Societal Marketing?

The societal marketing concept holds that a company should make good marketing
decisions by considering consumers’ wants, the company’s requirements, and society’s
long-term interests.

Philip Kotler defines it as “the societal marketing concept holds that the organization’s task is to
determine the needs, wants, and interests of target markets and to deliver the desired satisfactions
more effectively and efficiently than competitors in a way that preserves or enhances the
consumer’s and the society’s well-being.”

Societal Marketing creates a favorable image for the company increases sales. It is not the same
as the terms of social marketing and social media marketing. It is a term closely related to CSR
and sustainable development.

It emphasizes social responsibilities and suggests that to sustain.

It calls for sustainable marketing, socially and environmentally responsible marketing that meets
consumers’ and businesses’ present needs while also preserving or enhancing future generations’
ability to meet their needs.

The global warming panic button is pushed, and a revelation is required to use our resources. So
companies are slowly, either fully or partially, trying to implement the societal marketing
concept.

The societal marketing concept is one of the 5 marketing concepts.

History of Societal Marketing Concept

In the 1960s and ’70s, the unethical practices of many companies became public. The concept of
Social Marketing surfaced in 1972, a more socially responsible, moral, and ethical model of
marketing, countering consumerism. Philip Kotler introduced the concept of social marketing
and societal marketing.

The societal marketing concept evolved from older CSR concepts and sustainable development
and was implemented by several companies to improve their public image through customer and
social welfare activities.

Marketers reassessed the adequacy during the early eighties of the marketing concept as a basic
management philosophy. The reasons were the environmental and social conditions such as
increased environmental pollution, energy shortages, population boom, neglected social services,
hunger and poverty around the globe, and so on.

Martin L. Bell and C. William Emory, citing the critics of the marketing concept, maintained that
customer orientation’s operational interpretation had not approached the philosophical meaning
of providing long-run customer satisfaction and society’s broader needs as the ultimate
marketing goal.

It is argued that the role of marketing must be related to social improvement rather than
economic gain. It should also be related to human aspirations rather than only human needs and
wants. Marketers should emphasize conservation rather than consumption.

They should also consider customers and themselves integral parts of the greater society, not as
economic factors. Because of such demands, marketers today face dilemmas; they find
difficulties determining how much emphasis is given to social consideration and how much
consumer needs satisfaction.

3 Considerations of Societal Marketing Concept

Companies should balance three considerations in setting their marketing strategies: company
profits, consumer wants, and society’s interests.

1. Society (Human Welfare)

Companies must make sure the products, services, actions, investment innovations servers
society first.
2. Consumers (Satisfaction)
Products and services should be satisfying the consumer’s needs.
3. Company (Profits)
Building long-term customer relationships, being socially responsible, and providing satisfactory
products are important for profit-making and wealth maximization

Societal Marketing Concept Advantages and Benefits?

It helps to build a better image for the company.

It gives a competitive advantage over the competitors.

Useful in customer retention and long-term relationships.

Increases sales and market share.

Facilitate expansion and growth in the long term.

Products and company policies should prioritize social welfare and society in general.

Economic resources are properly used.

Societal marketing raises the living standard of people in society.

It ensures economic planning more significant and more fruitful to society.

Importance of Societal Marketing Concept?

Societal Marketing is essential to society, the environment, and businesses. This concept was developed
to tackle consumerism and profit, only the motive of business.

The societal marketing concept helps to maximize profits for the organization and creates a long-term
relationship with customers.

It encourages developing products that benefit society in the long run and satisfies consumers.

Examples of Societal Marketing

The most recent examples of societal marketing are the super bowl 2017 ads of several companies.

Definition of customer relationship

Customer relationships are very important to your business. An individual customer relationship
consists of all the customer interactions along their journey. Customers interact with your
business when they:

 Discover your brand through various marketing channels.

 Make a purchase.
 Reach out to customer service or technical support.
 Post a review or testimonial.
 Refer your brand to others.

What is customer relationship management?

Customer relations, also referred to as customer relationship management (CRM) or relationship

management, is a set of business processes devoted to increasing customer loyalty and
satisfaction. A key element of customer relationship management is getting to know your
customers and creating experiences for them based on that knowledge. You can do this by
collecting relevant data such as their goals and challenges, their values, and their motivations
behind making purchases. You can then manage that data in a customer relationship management
system.

Specific processes that a customer relations or CRM team might perform include:

 Providing customer service

 Providing customer support
 Offering loyalty and rewards programs
 Managing and interpreting customer data
 Upselling and cross-selling
 Training customers how to get the most out of products
 Connecting marketing and sales teams

What is consumer generated marketing?

You may not realise it, but consumer generated marketing is everywhere. We see so much of it
in the media, on the internet, in buyer’s guides and brochures.. Once you know what you’re
looking for, you’ll realise how often you come across it.

Consumer-Generated Marketing is a marketing strategy that utilises user-created material to promote

and market the brand and its products. The term includes a wide range of activities: product reviews,
videos, podcasts, social media posts, articles, blogs, photo-tagging, and other activities.
Oftentimes, before we even open a book, it is littered with little reviews from other authors on
the cover. Or, when you’re scrolling through ASOS looking for some new clothes, you can find
other customers' reviews under each item. You’ll see verbatim reviews placed on websites,
underneath email signatures - the list goes on and on.

What is a customer-managed relationship?

A customer-managed relationship (CMR) is a relationship in which a business uses a

methodology, software, apps and perhaps internet capability to encourage the customer to control
access to information and ordering.

CMR can be viewed as an alternative to -- or as a possible approach to include in -- CRM, or

customer relationship management.

What are the three functions of customer-managed relationship?

CMR consists of the following three functions:

1. Customers should own their own information, including their profile, transaction history and any
inferred information such as marital history and even behavior.
2. Customers should have access to this information across all departments.
3. The entire system should be designed with the customer's needs and feelings having priority or
equal weight to the company's needs and desires.

The goal of CMR Is to improve customer experience and maximize customer satisfaction. CMR
allows a customer to define how they communicate with the company, what services or products
they will purchase and how they will pay for them.

CMR is an attempt by enterprises to change with the times by addressing customer demand for
more control.

CMR vs. CRM

There is some confusion between CMR and CRM.

CRM focuses on improving the relationship between customers and the business through the
collection of customer data. Today, CRM tools are used by companies for a wide range of
purposes. This is in the form of contact management, sales management or marketing
automation.

For example, CRM tools monitor customer interactions on social media such as Facebook or
LinkedIn, collect contact information by sales teams or set up marketing campaigns. This can
then be put to use with the help of CRM software which compiles customer information,
streamlines processes and makes it easy to be connected to the customer.
On the other hand, CMR is management that focuses on giving more control to the customer in
the marketing process.

Unlike CRM systems, CMR is designed to meet the needs of the customer. This gives greater
control to existing customers, and increases customer loyalty and customer retention. CMR aims
to achieve the benefits of CRM by empowering the customers
Building Client Relationships
1. Communicate regularly.
One of the most important ways to build relationships with customers is through regular
communication. Whether it's sending email newsletters, making phone calls, or setting up a
meeting or check-in, staying in touch with your customers shows that you value their business
and are invested in their success.

Regular communication also provides an opportunity for you to update customers on new
products, features, or promotions, ensuring they are aware of the value you provide.

2. Meet your customers where they are.

Bradley McKibben, a senior inbound consultant at HubSpot, says that you need to meet
customers where they are in order to communicate and work most effectively with them.

“Do they live in their email inboxes, are they more on LinkedIn, are they research heavy and
using Google a lot? Good communication has a lot to do with the channel you use,” McKibben
explains.

Make it easy for customers to reach you, whether through phone, live chat, or email, and be
responsive to their questions and concerns. Aim to provide efficient and effective resolutions to
their issues, ensuring that they feel supported and valued throughout their experience with your
company.

3. Practice active listening.

Building strong customer relationships involves active listening. When a customer reaches out
with a question, concern, or feedback, it is essential to listen attentively, seek to understand their
perspective, and empathize with their situation.

"Active listening is one of the most important skills in providing a great customer service
experience," says Patrick Shelley, HubSpot Customer Success Manager. "In many instances,
service professionals are quick to provide a solution without fully understanding the context and
desired outcomes of the customer's unique situation."

Listening, and responding thoughtfully to a customer's needs shows that their opinion matters,
and you're committed to finding a solution that meets their expectations.

4. Show what you know.

While active listening and thoughtful responses are key in building short-term relationships,
customers can lose trust quickly if you don't keep this level of thoughtfulness consistent or forget
critical details they've told you in past conversations.

To show that your customer has remained a top priority, take notes or use customer-relationship
tools to keep track of pain points, feedback, and opportunities, as well as any personal anecdotes
they've mentioned. While active listening helps the customer feel valued, remembering and
mentioning something they've highlighted in past conversations can make them feel like they're
your only client – even just for a moment.

5. Reward loyalty.
By acknowledging and appreciating your customers' continued support, you're reinforcing their
decision to choose your brand over competitors. Loyalty programs that offer exclusive discounts,
early access to new products, or personalized rewards create a sense of value and appreciation.

Take Starbucks Rewards, for example. By signing up for the program, you can earn points for
each item you buy using the app which can be added up and used for a free item later, unlock
freebies like free beverages on your birthday, and even get perks from Starbucks partners like
Delta, earning one mile per dollar spent at the coffee franchise..

Late last year, the rewards program had generated significant revenue for the brand as members
passed 28.7 million, up 16% year-over-year.

Even if you can't give out millions of dollars worth of coffee and flyer miles, simply providing
personalized thank-you notes, perks, or milestone gifts can go a long way in strengthening the
emotional connection with customers – while giving them more bang for their buck.

When customers feel valued and rewarded for their loyalty, they’re more likely to continue doing
business with you and become brand advocates, spreading positive word-of-mouth
recommendations.

6. Build a community.
“The more advocates you have, the fewer ads you have to buy,” says HubSpot CTO Dharmesh
Shah.

In today's inbound-powered world, such wise words couldn't be truer. Ultimately, when people
feel like they're part of something, they're more passionate about it, want to see it succeed, and –
ideally – want to continue investing their money in the great experiences that come from it.
By fostering a sense of belonging, you not only strengthen relationships with individual
customers but also create a network of advocates who can help promote your brand to a wider
audience. This can also lead to deeper, longer-term relationships.

So how do you do it?

Encourage customers to connect with each other by hosting webinars, events, or forums where
they can share insights, best practices, and success stories.

For example, Sephora, a beauty store with brick-and-mortar locations across the globe and a
large virtual e-commerce store, offers a Beauty Insider community so people can share
knowledge with each other.

Sephora's forum aims to unite its "beauty-obsessed" customers and "beauty newbies" who can
virtually ask each other questions, join challenges, share looks, swap tips, try out new
products, and connect with other like minded customers.

While those registered for an account within the community can post, reply, or share
reviews as they please, those who aren't members – or have just stumbled upon
Sephora's site for the first time – can still see most of the content and conversations.

Not only does this forum's membership perks retain customers by connecting them
with other beauty-buffs, but it also enables them to help prospects learn about – and
potentially buy – beauty products.

Say I am looking for a long lasting liquid lipstick that is non-drying. After a search, I
might come across a thread where someone with a similar experience has gotten product
recommendations directly from Sephora insiders:

From there, I might just make a purchase. And – because this community was so
helpful – I might sign up to join when making my purchase.

How to Improve Customer

Relationships
7. Gather Feedback.
Soliciting customer feedback demonstrates that you value their opinions and want to improve
your products or services. Regularly ask for their feedback through surveys, online reviews, or
even a dedicated customer feedback portal.

Actively engage with this feedback by responding promptly, acknowledging their input, and
taking steps to address any issues raised. By involving your customers in the improvement
process, you make them feel like valued partners in your business.

8. Speed up response times.

As Christina Vuong, HubSpot Customer Success Manager puts it, "your customer's problem is
now your problem." How quickly would you want them to respond if the tables were turned?

9. Streamline personalization.

Customers appreciate when you take the time to personalize your interactions. This could be as
simple as addressing them by name, remembering their preferences, sending personalized
recommendations based on their past behaviors, or taking the time to get to know their needs.

“You need to put yourself in their shoes to understand what would be the most helpful and
relevant content at that point in time for the persona you're targeting. It's not a great experience
to receive unexpected emails or emails that don't make sense,” says McKibben.

But, if you have a growing pool of customers, personalizing everything and taking notes
manually can take far too much time that could be used having productive, impactful
conversations with customers.

You can also serve customers targeted emails and automated comms based on their interests,
behaviors, and needs with tools like HubSpot Customized Content and Behavioral Targeting.

By showing that you understand their unique needs and priorities, you create a sense of trust and
loyalty.

10. Meet expectations. Then, crush them.

Once you improve your customer service relationship building to meet your client's expectations
and standards, your work shouldn't stop there – especially if you want to stay competitive.
Whether you're just starting to benefit from improvements or hearing from more happy
customers, take time to recognize what makes them happy and go the extra mile to get ahead of
their needs, requests, and opportunities they haven't even recognized yet.
If you realize they like personalized experiences, surprise them with special discounts catered to
them, new products or solutions that prevent pain points before they realize they have them, or
just offering affordable freebies on birthdays or first-purchase anniversaries.

Showing that you're willing to go the extra mile and invest time – or revenue – toward their
satisfaction not only increases customer loyalty but also encourages

What is Marketing Landscape?

Marketing Landscape can be defined as the overall environment in which businesses and
organisations operate when it comes to marketing their products, services, or ideas. It
encompasses all the factors and elements, both internal and external, that can impact a
company’s marketing strategy and its ability to reach and engage with its target audience
effectively. Understanding the marketing landscape is crucial for businesses to make informed
decisions and adapt their marketing efforts to changing conditions.

Definition and Examples of Internet Marketing

Internet marketing, often known as online marketing, uses digital platforms and methods to promote
brands by focusing on their target markets. Internet marketing is not the only strategy for generating
interest in and knowledge about a product. The goal of internet marketing is to increase traffic to the
advertiser's website through a number of methods.

Interactive marketing??

Interactive marketing, sometimes called trigger-based or event-driven marketing,[1] is a marketing

strategy that uses two-way communication channels to allow consumers to connect with a company
directly. Although this exchange can take place in person, in the last decade it has increasingly taken
place almost exclusively online through email, social media, and blogs

What is Product or Service Differentiation?

Product or service differentiation refers to the process of distinguishing your offering from similar
products or services in the market. It's about identifying the unique features and benefits of your
product or service and positioning it in a way that sets it apart from competitors. Differentiation can help
to create a competitive advantage, as it allows you to offer something that is different and valuable to
your target market.

In today's competitive business environment, it's more important than ever to differentiate your product
or service from the competition. A clear value proposition that highlights the unique benefits of your
offering can be a key factor in attracting and retaining customers. In this article, we'll explore the concept
of product or service differentiation and value proposition, and discuss strategies for standing out in the
market.

What is Service Quality Management?

The process of managing the quality of services delivered to a customer according to his expectations is
called Service Quality Management. It basically assesses how well a service has been given, so as to
improve its quality in the future, identify problems and correct them to increase customer satisfaction.
Service quality management encompasses the monitoring and maintenance of the varied services that
are offered to customers by an organization.

What is service productivity?

Service productivity is the ratio of service output to service input. Service output refers to the value or
benefits that customers receive from the service, while service input refers to the resources or costs that
the service provider incurs to deliver the service. For example, if a technical support team resolves 100
customer issues in a day using 10 staff members, the service output is 100 and the service input is 10.
The service productivity is then 100/10 = 10.

Brand equity??

Brand equity is the value of your brand for your company. It's based on the idea that a recognized brand
that's firmly established and reputable is more successful than a generic equivalent. It's also based on
customer perception: customers will tend to buy a product they recognize and trust.

What is brand positioning?

Brand positioning is a marketing strategy brands develop to establish the uniqueness of their brand and
convey its value proposition. It begins with a positioning statement, which companies use internally to
identify their target audience and build their brand identity. The purpose of positioning your brand is to
make clear to your consumers what you stand to offer and why you’re uniquely positioned to serve
them.

Definition Of Brand Development

Brand development is strategically managing and growing a brand over time. The goal is to build lasting
brand equity, spread awareness, connect emotionally with target customers, and stand out.

Unlike branding, which deals with logos and visuals, brand development looks at the bigger picture of
positioning a brand to drive business growth.
It’s an ongoing process of understanding customers, defining the brand identity and promise,
communicating it effectively, and adapting it when needed.

In simple terms, brand development shapes the identity representing a business’ vision, values, and
personality. It encapsulates what a brand truly stands for, not just surface-level names and symbols.

The brand development process involves defining the following:

Core identity: values, personality, positioning

Promise: what customers can expect

Messaging: verbal and visual brand language

Customer experiences: interactions designed to convey the brand

When done right, brand development creates a clearly defined brand that resonates with target
customers and fuels growth. It’s a way to set a brand apart in a crowded market strategically

Products???

In marketing, a product is an object, or system, or service made available for consumer use as of the
consumer demand; it is anything that can be offered to a market to satisfy the desire or need of a
customer.[1] In retailing, products are often referred to as merchandise, and in manufacturing, products
are bought as raw materials and then sold as finished goods. A service is also regarded as a type of
product.

What is service with an example?

A service is an intangible benefit, activity or item offered to the customer. Services are non-physical in
nature and are provided by service providers such as hotels and banks. An example is hotel services.

Consumers products???

Consumer products are goods and services that are considered final products and are bought and used
by consumers, or end-users. They are different from business products because the business products
are either part of the final consumer good, or used to produce them.

Types of Consumer Products

 Convenience products

Shopping products

Specialty products

Unsought products

Convenience Products

Convenience products are bought the most frequently by consumers. They are bought immediately and
without great comparison between other options. Convenience products are typically low-priced, not-
differentiated among other products, and placed in locations where consumers can easily purchase
them. The products are widely distributed, require mass promotion, and are placed in convenient
locations.

Sugar, laundry detergent, pencils, pens, and paper are all examples of convenience products.

Characteristics of Convenience Products

Purchased frequently

At a low price point

Easily available

Not commonly compared with other products

Shopping Products

Shopping products are bought less frequently by consumers. Consumers usually compare attributes of
shopping products, such as quality, price, and style, between other products. Therefore, shopping
products are more carefully compared, and consumers spend considerably more time, as opposed to
convenience products, comparing alternatives. Shopping products require personal selling and
advertising and are located in fewer outlets (compared to convenience products) and selectively
distributed.

Airline tickets, furniture, electronics, clothing, and phones are all examples of shopping products.

Characteristics of Shopping Products

 Purchased less frequently

At a medium price point

Commonly compared among other products

Specialty Products

Specialty products are products with unique characteristics or brand identification. Consumers of such
products are willing to exert special effort to purchase specialty products. Specialty products are typically
high priced, and buyers do not use much time to compare them against other products. Rather, buyers
typically spend more effort in buying specialty products compared to other types of products.

Take, for example, a Ferrari (a specialty product). Purchasers of a Ferrari would need to spend
considerable effort sourcing the car. Specialty products require targeted promotions with exclusive
distribution; they are found in select places.

Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are all examples of
specialty products.

Characteristics of Shop

Business buyer behaviour?

Business buyer behaviour refers to the intent and attitude shown by

companies and employees while making purchases for the
organisation. Business buying behaviour is the concept of recognising
a company's requirements and goals and making suitable purchases
that help the organisation make profits.
Business Buying Process?

The business buying process is quite different from the consumer buying
process. Because in this case the business market is involved in a different
set of characteristics and demands. The companies doing business in
business markets adopt separate marketing strategies.

There are a few basic concepts that should be discussed. Before going into
detail about the business buying process.
Business Market
All the businesses that purchase goods or services. Particularly to modify
them for the purpose of reselling are collectively called the business market.
Business markets have derived demand that basically originates from
consumer demand.

Buying Situation in Business Markets

The following are the three types of business buying situations:

 Straight Re-buy

In this situation, the previous routine order is made by one business without
any modifications.

 Modified Re-buy

In this case, a certain business wants to modify its order in respect of

specification of the product. Along with its price or terms, etc. Hence this
requires more participants in the decision-making process.

 New Task

When a business buys a specific product or service for the first time. Then
this case is called new task buying.

Participants of Business Buying Process

The following are the five participants that may be involved in the Business
Buying Process:

 Gatekeepers
 Deciders
 Buyers
 Influencers
 Users

Steps of Business Buying Process

The business buying process is split into eight stages. So the new task
buying contains all of these steps. Whereas the straight or modified re-buy
may skip some of them. These stages are as follows:

 Problem Recognition
  Description of General Need
 Specification of Product
 Search of Supplier
 Proposal Solicitation
 Selection of Supplier
 Order-Routine Specification
 Performance Review

Problem Recognition

in the first stage of the business buying process. A certain problem is

recognized by someone in the organization. So that it can be solved through
the purchase of any new product or service. Therefore the external or
internal stimuli result in the creation of such a recognized problem.

In the case of internal stimuli. The management of the organization may

determine to manufacture a new product. Nor any production machine
becomes damaged that needs certain new parts. Another internal reason
may be that the supplier is not providing effective goods at a fair price.

On the other hand, the external elements may be in the form of any new
idea of a product. Even at a trade show or seeing new advertisements. Nor
any favorable offering by a salesperson, etc.

Description of General Need

This stage starts when a clear need has been identified by the organization.
In this step description about the general need has been prepared. That
shows general characteristics and the quantity of the required product.

In the case of simple items, this process is linear. Whereas in the case of
complex items in the process involves. A team of buyers, engineers, and
other professionals. Basically who work together to agree on the desired
product. The significance of reliability, price, durability, and other features
are ranked. In fact for the desired product or service by the team.

Specification of the Product

In this stage, the organization that is involved in the business buying

process. Actually prepares a detailed list of the technical specifications of the
desired product. Through value analysis conducted by the engineering team.

In value analysis, careful studies are made to determine the cost reduction
production process. Particularly for the redesigning or standardization of the
desired product or service. So the professional team covers the best features
and characteristics required in purchasing the product. Therefore the selling
organizations can also use this step to increase their sales.

Search of Supplier

In this step of the business buying process, the buying organization searches
the suppliers. In order to make a purchase with the best one. For this
purpose, a list of competitive vendors is prepared by the buying organization
through the use of supplier directories. Also the aid of a computer (internet),
or contacting other organizations for obtaining recommended names.

The internet is increasingly becoming a platform for such searching.

Nowadays as most of the organizations are entering into this virtual world. In
the case of buying new and expensive products. So the more time is
consumed in searching for suitable suppliers. That can best meet the
specifications of the required product.

The suppliers should keep themselves enrolled in the relative directories. Just
to make their good reputation in the market. Moreover, the salesperson
should also target the supplier searching organizations in the business
market.

Proposal Solicitation

In this stage, the suppliers are asked to submit their proposals. In some
cases, some suppliers send only their salespersons or simple catalogs.
However, when the desired product is more expensive and complex. Than
proper formal presentations and detailed written proposals are required from
the qualified suppliers. So the marketers of business organizations should
also be skillful in writing. As well as in presentation of business proposals to
the buying organizations.

Selection of Supplier

At this stage, the final supplier is selected from the list of potential suppliers.
Who have submitted their proposals to the buying organization. So the
selection team of the buying organization reviews the proposals of all
suppliers. Also lists the offered attributes on the basis of the rank of
importance. So following are some of the main attributes that serve as the
basis for the selection of potential suppliers.

 Quality of product
 Delivery time
 Ethical corporate behaviour
 Reasonable price
  Honest communication
 Past performance and reputation
 Repair and maintenance services etc.

Order-Routine Specification

The order-routine specifications are prepared in this step. Actually which

contains the order having a final list of the specifications, the selected
supplier. Also delivery time, quantity required, price and repair and
maintenance services, etc.

Performance Review

This is the last stage of the business buying process in which the
performance of the supplier is reviewed by the buying organization. For this
purpose the buying organization contacts the customers. As well as users of
the purchased product and asks them to provide their experience of using
that product.

Mainly the Consumer Behavior or the satisfaction level of users serves as the
basis of the performance reviewing factor. Particularly for the product
purchased from business suppliers. So the performance review helps in the
future decisions of the business buying process. Specifically in the form of
straight re-buy, modified re-buy, or new task buying. Therefore the selling
organization also takes into account the same factors. That would affect the
performance review by the buying organization.

Nature of the Buying Unit:

Compared with consumer purchases, a business purchase usually
involves more decision participants and a more professional
purchasing effort. Often, business buying is done by trained
purchasing agents who spend their working lives learning how to
make better buying decisions.

Types of Buying Decision Behaviour

Last Updated : 27 Jul, 2023

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Consumer behaviour refers to the study of individuals’ actions,
preferences, and decision-making processes when it comes to
purchasing goods and services. Understanding consumer behaviour
is crucial for businesses as it enables them to develop effective
marketing strategies, target specific customer segments, and
ultimately drive sales. A consumer’s behaviour has a major impact
on his buying decision behaviour. The buying decision behaviour
of a consumer encompasses the various approaches consumers
employ when making purchase decisions.

While making a purchase, a consumer has to take many things into

consideration based on what product he is buying. It is because
there is a difference between buying a car and buying a toffee. In
simple terms, it can be seen that if a product is expensive, then the
consumer will take more time and make more effort in making its
purchase; however, if a product is cheap or ordinary, then the
consumer will take no or less time and efforts in its purchase.
Types of Buying Decision Behaviour
There are four types of buying decision behaviour; viz., Complex
Buying Behaviour, Dissonance-Reducing Buying Behavior, Habitual
Buying Behavior, and Variety-Seeking Buying Behavior.
1. Complex Buying Behavior:
Complex buying behaviour occurs when consumers face a high level
of involvement in the purchase decision and encounter significant
differences among available options. This type of behaviour is
commonly observed when consumers are purchasing expensive,
risky, infrequently purchased, and highly self-expressive products,
such as a house, a car, or a computer. The decision-making process
is extensive and involves thorough research, evaluation of
alternatives, and consideration of multiple factors, such as price,
quality, features, and brand reputation. Consumers engage in
information gathering, consult expert opinions, and rely on personal
experiences to make informed decisions.
For example, suppose a consumer wants to buy a new laptop. He
would likely spend time researching different brands, comparing
specifications/features, reading customer reviews, and seeking
recommendations from friends or technology experts before
finalising their purchase.
Simply put, in complex buying behaviour, the consumer will go
through different learning phases. Firstly, he will learn and develop a
belief regarding the product that he wants to purchase. The belief of
the consumer creates his attitude based on which he will make the
final purchase decision. Therefore, the marketers of the high
involvement products must ensure that they understand the
information-gathering and evaluation behaviour of these customers
and help them learn about the attributes of the product along with
their relative importance. They can also take the help of
advertisements so the customers can get answers to basic
questions.
2. Dissonance-Reducing Buying Behavior:
Dissonance-Reducing Buying Behavior occurs when consumers face
a high level of involvement in the purchase decision but encounter
little difference among brands. This type of behaviour is commonly
observed when consumers are purchasing expensive, infrequent, or
risky products; such as furniture, curtain material, or sofa
covers/upholstery. These products face high involvement of the
consumer as they are expensive and self-expressive. Also, as the
perceived brand difference is not large in this case, the consumers
would purchase easily and readily available products.
For example, suppose a consumer wants to buy a portable tent for
camping. For this, he will have to make a quick decision from the
limited options available to him. He will make the purchase decision
without doing enough research and inquiring about information from
different sources about it.
Once the purchase is made, the consumers might
experience postpurchase dissonance or after-sale discomfort.
It happens when the consumer notices some disadvantages of the
purchased brand or hears some good things about the other brand.
For such dissonance, it is essential for the marketer to provide the
consumers with after-sale communications and help them feel good
about their brand choices.
3. Habitual Buying Behavior:
Habitual Buying Behavior occurs when consumers face a low level of
involvement in the purchase decision along with little significant
brand differences. This type of behaviour is commonly observed
when consumers are purchasing products like salt, etc. Low
involvement of consumers means that they simply reach the store
and go for a brand to buy a product. If the consumer is buying a
product from the same brand, it does not mean that they are loyal
to the brand. It just means that the consumer is buying the product
out of habit.
For example, buying a specific brand of toothpaste, snack items,
or toiletries from a particular store without much thought or
consideration falls under habitual buying behaviour. Consumers may
choose these products based on familiarity, past positive
experiences, or simply because it is part of their routine.
The consumer behaviour, in this case, does not pass through the
usual belief attitude behaviour sequence. Before purchasing a
product, these consumers do not extensively search for information
regarding the brand, evaluate the characteristics of the brand, and
make weighty decisions on which brand to purchase. Instead, they
just passively receive the information while watching television or
reading newspapers or magazines. Also, Ad repetitions instead of
creating brand conviction, create brand familiarity in the minds of
consumers. Because of this, consumers do not form strong attitudes
towards a brand; they just select the brand because they are
familiar with it. Therefore, the marketers take help of repetitive
marketing campaigns, so that consumers can remember their
brand.
4. Variety-Seeking Buying Behavior:
Variety-Seeking Buying Behavior occurs when consumers exhibit a
desire for new experiences, change, and novelty in their purchases.
It means that when consumers face a low level of involvement but
significant perceived brand differences, they undertake variety-
seeking buying behaviour. In such cases, the consumers switch
brands more often.
.
Moreover, it highlights the level of efforts that are being opted to make the
purchase for the business. It is essential to focus on ‘buying situation’ since
buyers are encountered with multiple scenarios even if it’s a regular
purchase. The buying situation is very useful and requires market-
awareness.

There are three major buying situations mentioned down below.

1 – Straight Rebuy:

The straight rebuy is considered as one of the most reliable and convenient
buying situation which engages us in making the routine purchase for the
business. It’s done through a familiar supplier and no certain modifications
are required at the time of ordering the products.

Example:

Straight rebuy can be easily encountered at the stationary shops, a place

where boxes of printing papers, pens and pencils are purchased repeatedly
without making any amendments in the order.

2 – Modified Rebuy:
The modified rebuy is considered as a different buying situation in which the
buyer drifts towards a new and improved product to fulfill the rapidly
changing requirements.

Therefore, purchasers use the trial purchase option in order to evaluate if the
new product is worth the time and efforts. This buying situation is also known
as ‘Limited Problem Solving’, which might slightly change the customer’s
perception towards something unique.

Example:

The modified rebuy is experienced when there are various products that
share the same objective in the markets. Furthermore, it targets the choice
criteria by focusing on the extra perks which we might get after purchasing a
new product even though we’ve used other brands in the stores as well.

3 – New Task:

The new task highlights another buying situation in which we’re given the
liberty to purchase a new product. In this scenario, the buyer is not aware of
the product’s effectiveness. However, certain aspects such as the
importance of the product and its overall cost are highly considered before
making the purchase. Such buying situation includes a list of products that
we have never or rarely purchase from the markets.

What is Systems Selling?

Systems selling is the process of selling interrelated goods or services together as a
package rather than selling them separately or independently. Under systems selling,
the goods that are clubbed together are mostly complimentary goods. This helps a
manufacturer sell more products and also helps the customer purchase the interrelated
goods together.

Participants in the Business Buying

Process
October 15, 2018by Business Education

Introduction
Interestingly, the “Business Buying Process” does not consist of a one
man show, since an entire team is composed to be looking after this task and
putting up extra efforts to acquire expected results for the company.
We must understand that each designation has its own purpose and sheer
importance, which assists in achieving achieve expected business output.

Here’s how we depict the hierarchy of “Business Buying Process” at

the companies:

Initiator:

Being the first rung of the ladder, an initiator is someone who circles up the
need of a particular service or the product. The question is: to what extent is
this product affecting our companies and combating the deprivation? Here,
an initiator is accountable for providing a rational answer.

Influencers:

It has been observed that influencers can stand on different levels while
voicing down their opinions regarding a certain product. Such a group of
people will influence others regarding the product that should be purchased
along with their ideal locations within the city.

Deciders:

These people are given full freedom upon purchasing or ignoring the decision
to purchase the products at the markets. Their criteria for evaluating the
products depend on their prices and value for money.

Approvers:

These people help deciders in persuading the product they are looking for at
the market. Such people are authorized to do so.

Buyers:

These people make the actual purchases from the business while keeping
prices and quality in mind.

Engaging Business Buyers with Digital and Social Marketing

As in every other area of marketing, the explosion of information
technologies and online, mobile, and social media has changed the
face of the B-to-B buying and marketing process. In the following
sections, we discuss two important technology advancements: e-
procurement and online purchasing and B-to-B digital and social
media marketing.

E-procurement and Online Purchasing

Advances in information technology have dramatically affected the face of
the B-to-B buying process. Online purchasing, often called e-procurement,
has grown rapidly in recent years. Virtually unknown two decades ago,
online purchasing is standard procedure for most companies today. In turn,
business marketers can ...
What is B2B social media marketing?

B2B social media marketing uses social networks to build

relationships with potential and existing business clients. Sharing
industry-relevant content, networking and engaging in
conversations that establish expertise often contribute to this
process.

Government Markets¶
Government markets encompass purchases made by governmental units,
including federal, state, and local government agencies, as they procure or
rent goods and services to fulfill their core functions and responsibilities.
These government units are significant buyers of a wide range of products
and services.

Key Characteristics of Government Markets:

1. Regulation: Government organizations operate under specific

regulations and guidelines. Suppliers must adhere to these
regulations when conducting business with government entities.
2. Procurement Procedures: Government organizations typically
follow formal procurement procedures, which often involve
competitive bidding processes. Suppliers need to be aware of these
procedures to participate in government contracts effectively.
3. Budgetary Constraints: Government agencies often operate with
budget limitations, making cost-effectiveness a crucial factor in
procurement decisions.
4. Emphasis on Price: While quality and reputation matter,
governments frequently award contracts to the lowest bidder,
 making price a primary consideration in the decision-making
process.
5. Technology Focus: To meet budgetary constraints and improve
efficiency, suppliers may need to invest in technology and
innovation to reduce costs.
6. Product Specification: Government contracts may have highly
detailed product specifications, leaving little room for product
differentiation.

Institutional Markets¶
Institutional markets encompass schools, universities, hospitals, nursing
homes, charitable organizations, clubs, and similar entities that purchase
goods and services to support their operations and provide services to the
people they serve.

Key Characteristics of Institutional Markets:

1. Diverse Entities: Institutional markets comprise a diverse range

of organizations, each with its own unique needs and objectives.
2. Low Budgets: Many institutional buyers operate with limited
budgets, which can influence their purchasing decisions.
3. Captive Patrons: Institutions often serve a captive audience or
clientele, meaning that individuals have limited choices in selecting
services or products. For example, hospital patients typically have
little choice in the food provided by the hospital.
4. Quality and Reputation: While cost considerations are essential,
institutions may prioritize quality and reputation when selecting
suppliers, as poor quality can harm their reputation and customer
satisfaction.
5. Specialized Divisions: To meet the distinct characteristics and
needs of institutional buyers, many suppliers establish separate
divisions or departments dedicated to serving this market segment.

In conclusion, institutional and government markets represent not-for-profit

sectors with their own unique dynamics and considerations. Suppliers looking
to engage with these markets must understand the specific regulations,
procurement procedures, and buying behaviors associated with each
segment to successfully navigate these diverse marketplaces.

What is consumer behavior?

Consumer behavior is the actions and decisions that people or
households make when they choose, buy, use, and dispose of a
product or service. Many psychological, sociological, and cultural
elements play a role in how consumers engage with the market.

It is a multi-stage process that involves identifying problems,

collecting data, exploring options, making a decision to buy, and
evaluating the experience afterward. Consumers may be impacted
during these stages by things including personal views and values,
social conventions, marketing campaigns, product features, and
environmental conditions.

Understanding consumer behavior is essential for businesses to

create marketing plans that work and to supply goods and services
that satisfy customers’ wants and needs. To see trends and
patterns, forecast demand, and make wise choices regarding
product design, price, promotion, and distribution, marketers must
analyze and understand data on customer behavior.

Consumer market?

A consumer market is a system where customers buy products and

services for consumption or sharing with others rather than for
reselling. Most of the products in this market are consumer needs for
daily lives. A consumer market allows individuals to purchase products
and services.

What is a consumer behavior model?

Consumer behavior models are like a map that helps us understand
why people buy things. It’s a simplified way of looking at how
consumers make choices. Think of it as a roadmap to figure out why
someone picks one product over another.

These buying behavior models show a person’s steps when deciding

to buy something. They often include things like recognizing a need,
searching for information, thinking about options, and finally making
a decision.

These models are super useful for companies because they can
follow the map to see how customers make choices. This helps
businesses make better products, set the right prices, create
effective ads, and choose where to sell their stuff. In a nutshell, a
buyer behavior model is like a guide that shows how people decide
what to buy, which is really beneficial for businesses.

Characteristics Affecting Consumer Behavior?

Here are 5 major factors that influence consumer behavior:

1. Psychological Factors
2. Social Factors
3. Cultural Factors
4. Personal Factors
5. Economic Factors

1. Psychological Factors
Human psychology is a major determinant of consumer behavior. These
factors are difficult to measure but are powerful enough to influence a
buying decision.
Some of the important psychological factors are:

i. Motivation
When a person is motivated enough, it influences the buying behavior of the
person. A person has many needs such as social needs, basic needs, security
needs, esteem needs, and self-actualization needs. Out of all these needs,
the basic needs and security needs take a position above all other needs.
Hence basic needs and security needs have the power to motivate a
consumer to buy products and services.
ii. Perception
Consumer perception is a major factor that influences consumer behavior.
Customer perception is a process where a customer collects information
about a product and interprets the information to make a meaningful image
of a particular product.
When a customer sees advertisements, promotions, customer reviews, social
media feedback, etc. relating to a product, they develop an impression about
the product. Hence consumer perception becomes a great influence on the
buying decision of consumers.
iii. Learning
When a person buys a product, he/she gets to learn something more
about the product. Learning comes over a period of time through
experience. A consumer’s learning depends on skills and knowledge.
While skill can be gained through practice, knowledge can be
acquired only through experience.
Learning can be either conditional or cognitive. In conditional
learning the consumer is exposed to a situation repeatedly, thereby
making a consumer to develop a response towards it.
Whereas in cognitive learning, the consumer will apply his
knowledge and skills to find satisfaction and a solution from the
product that he buys.
iv. Attitudes and Beliefs
Consumers have certain attitudes and beliefs which influence the
buying decisions of a consumer. Based on this attitude, the
consumer behaves in a particular way towards a product. This
attitude plays a significant role in defining the brand image of a
product. Hence, marketers try hard to understand the attitude of a
consumer to design their marketing campaigns.
2. Social Factors
Humans are social beings and they live around many people who influence
their buying behavior. Humans try to imitate other humans and also wish to
be socially accepted in the society. Hence their buying behavior is influenced
by other people around them. These factors are considered as social factors.
Some of the social factors are:
i. Family
Family plays a significant role in shaping the buying behavior of a person. A
person develops preferences from his childhood by watching family buy
products and continues to buy the same products even when they grow up.
ii. Reference Groups
A reference group is a group of people with whom a person associates
himself. Generally, all the people in the reference group have common
buying behavior and influence each other.
iii. Roles and status
A person is influenced by the role that he holds in the society. If a person is
in a high position, his buying behavior will be influenced largely by his status.
A person who is a Chief Executive Officer in a company will buy according to
his status while a staff or an employee of the same company will have
different buying pattern.
3. Cultural factors
A group of people is associated with a set of values and ideologies that
belong to a particular community. When a person comes from a particular
community, his/her behavior is highly influenced by the culture relating to
that particular community. Some of the cultural factors are:
i. Culture
Cultural Factors have a strong influence on consumer buying behavior.
Cultural Factors include the basic values, needs, wants, preferences,
perceptions, and behaviors that are observed and learned by a consumer
from their near family members and other important people around them.
ii. Subculture
Within a cultural group, there exists many subcultures. These subcultural
groups share the same set of beliefs and values. Subcultures can consist of
people from different religion, caste, geographies and nationalities. These
subcultures by itself form a customer segment.
iii. Social Class
Each and every society across the globe has the form of social class. The
social class is not just determined by the income, but also other factors such
as the occupation, family background, education and residence location.
Social class is important to predict the consumer behavior.
4. Personal Factors
Factors that are personal to the consumers influence their buying behavior.
These personal factors differ from person to person, thereby producing
different perceptions and consumer behavior.
Some of the personal factors are:
i. Age
Age is a major factor that influences buying behavior. The buying choices of
youth differ from that of middle-aged people. Elderly people have a totally
different buying behavior. Teenagers will be more interested in buying
colorful clothes and beauty products. Middle-aged are focused on house,
property and vehicle for the family.
ii. Income
Income has the ability to influence the buying behavior of a person. Higher
income gives higher purchasing power to consumers. When a consumer has
higher disposable income, it gives more opportunity for the consumer to
spend on luxurious products. Whereas low-income or middle-income group
consumers spend most of their income on basic needs such as groceries and
clothes.
iii. Occupation
Occupation of a consumer influences the buying behavior. A person tends to
buy things that are appropriate to this/her profession. For example, a doctor
would buy clothes according to this profession while a professor will have
different buying pattern.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society.
The buying behavior is highly influenced by the lifestyle of a consumer. For
example when a consumer leads a healthy lifestyle, then the products he
buys will relate to healthy alternatives to junk food.
5. Economic Factors
The consumer buying habits and decisions greatly depend on the
economic situation of a country or a market. When a nation is
prosperous, the economy is strong, which leads to the greater
money supply in the market and higher purchasing power for
consumers. When consumers experience a positive economic
environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by
unemployment and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a
consumer. Some of the important economic factors are:
i. Personal Income
When a person has a higher disposable income, the purchasing power
increases simultaneously. Disposable income refers to the money that is left
after spending towards the basic needs of a person.
When there is an increase in disposable income, it leads to higher
expenditure on various items. But when the disposable income reduces,
parallelly the spending on multiple items also reduced.
ii. Family Income
Family income is the total income from all the members of a family. When
more people are earning in the family, there is more income available for
shopping basic needs and luxuries. Higher family income influences the
people in the family to buy more. When there is a surplus income available
for the family, the tendency is to buy more luxury items which otherwise a
person might not have been able to buy.
iii. Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes
higher spending. Sellers are making it easy for the consumers to avail credit
in the form of credit cards, easy installments, bank loans, hire purchase, and
many such other credit options. When there is higher credit available to
consumers, the purchase of comfort and luxury items increases.
iv. Liquid Assets
Consumers who have liquid assets tend to spend more on comfort and
luxuries. Liquid assets are those assets, which can be converted into cash
very easily. Cash in hand, bank savings and securities are some examples of
liquid assets. When a consumer has higher liquid assets, it gives him more
confidence to buy luxury goods.
v. Savings
A consumer is highly influenced by the amount of savings he/she wishes to
set aside from his income. If a consumer decided to save more, then his
expenditure on buying reduces. Whereas if a consumer is interested in
saving more, then most of his income will go towards buying products.

4 Types of Consumer Behavior

A consumer’s buying decision depends on the type of products that they
need to buy. The behavior of a consumer while buying a coffee is a lot
different from while buying a car.
Based on observations, it is clear that purchases that are more complex and
expensive involve higher deliberation and many more participants.
Consumer buying behavior is determined by the level of involvement that a
consumer shows in a purchase decision. The involvement allows customers
to ensure that this product is exactly what they want or do not want.
One of the participants of 102 CX Report, Todd Clark from L'Oréal,
mentioned it explicitly - "I believe the first issue is getting the consumer to
try the product/s first. The second would be getting the consumer to
understand the science of the product and why it is the best for their needs.
Answering the "need" or "pain point" gets consumers to use/buy."
The amount of risk involved in a purchase also determines the buying
behavior. Higher priced goods tend to high a higher risk, thereby seeking
higher involvement in buying decisions.
There are four types of consumer buying behavior:

1. Complex buying behavior

2. Dissonance-reducing buying behavior
3. Habitual buying behavior
4. Variety seeking behavior

1. Complex buying behavior

Complex buying behavior is encountered particularly when
consumers are buying an expensive product. In this infrequent
transaction, consumers are highly involved in the purchase decision.
Consumers will research thoroughly before committing to invest.
Consumer behaves very differently when buying an expensive
product or a product that is unfamiliar to them. When the risk of
buying a product is very high, a consumer consults friends, family,
and experts before making the decision.
For example, when a consumer is buying a car for the first time, it’s a big
decision as it involves high economic risk. There is a lot of thought on how it
looks, how his friends and family will react, how will his social status change
after buying the car, and so on.
In complex buying behavior, the buyer will pass through a learning process.
He will first develop beliefs about the product, then attitudes, and then make
a thoughtful purchase choice.
For complex buying behavior customers, marketers should have a deep
understanding of the products. It is expected that they help the consumer to
understand their product. It is important to create an advertising message in
a way that influences the buyer’s beliefs and attitudes.
2. Dissonance-reducing buying behavior
In dissonance-reducing buying behavior, consumer involvement is
very high. This might be due to high prices and infrequent
purchases. In addition, there is low availability of choices with fewer
significant differences among brands. In this type, a consumer buys
a product that is easily available.
Consumers will be forced to buy goods that do not have too many choices
and therefore consumers will be left with limited decision making. Based on
the products available, time limitations, or budget limitations, consumers
buy certain products without a lot of research.
For example, a consumer who is looking for a new collapsible table that can
be taken for camping quickly decides on the product based on a few brands
available. The main criteria here will be the use and the feature of the
collapsible table and the budget available to him.
Marketers should run after-sale service camps that deliver focused
messaging. These campaigns should aim to support consumers and
convince them to continue with the choice of their brand. These
marketing campaigns should focus on building repeat purchases and
referrals by offering discounts and incentives.
3. Habitual buying behavior
Habitual Buying Behavior is depicted when a consumer has low involvement
in a purchase decision. In this case, the consumer is perceiving only a few
significant differences between brands.
When consumers are buying products that they use for their daily routine,
they do not put a lot of thought. They either buy their favorite brand or the
one that they use regularly – or the one available in the store or the one that
costs the least.
For example, when a consumer buys an energy drink, he tends to buy the
flavor/taste that he likes without actually putting in a lot of research and
time. Many products fit into this category. Products such as chocolates,
cakes, juices, etc., all fit into this product category.
Consumers just go for it and buy it – there is no brand loyalty. Consumers do
not research or need information regarding the purchase of such products.
Habitual buying behavior is influenced by radio, television, and print media.
Moreover, consumers are buying based on brand familiarity. Hence
marketers must use repetitive advertisements to build brand familiarity.
Further to initiate product trial, marketers should use tactics like price drop
promotions and sales promotions.
Marketers should attract consumers using visual symbols and imagery in
their advertising. Consumers can easily remember visual advertisements and
can associate with a brand.
4. Variety seeking buying behavior
In variety-seeking consumer behavior, consumer involvement is low. There
are significant differences between brands. Here consumers often do a lot of
brand switching. The cost of switching products is low, and hence consumers
might want to try out new products just out of curiosity or
boredom. Consumers here, generally buy different products not because of
dissatisfaction but mainly with an urge to seek variety.
For example, a consumer likes to buy a cookie and choose a brand
without putting much thought into it. Next time, the same consumer
might choose a different brand out of a wish for a different taste.
Brand switching occurs often and without intention.
Brands have to adopt different strategies for such types of
consumer behavior. The market leader will persuade habitual buying
behavior by influencing the shelf space. The shelf will display a large
number of related but different product versions.
Marketers avoid out-of-stock conditions, sponsor frequent
advertising, offer lower prices, discounts, deals, coupons, and free
samples to attract consumers.

Conclusion
Consumer buying decisions are depended on consumer behavior. There are
great differences in consumer behavior while buying a car versus buying
chips. Marketers have to exercise careful judgment in marketing products to
different kinds of consumer behavior.
What is the consumer decision making process

The consumer decision-making process involves five basic steps. This is the process by which
consumers evaluate making a purchasing decision. The 5 steps are problem recognition,
information search, alternatives evaluation, purchase decision and post-purchase evaluation.
5 steps of the consumer decision making process

1. Problem recognition: Recognizes the need for a service or

product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable
alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they made

The consumer decision-making process can seem mysterious,

but all consumers go through basic steps when making a
purchase to determine what products and services will best
fit their needs.

Think about your own thought process when buying

something—especially when it’s something big, like a car.
You consider what you need, research, and compare your
options before making the decision to buy. Afterward, you
often wonder if you made the right call.

If you work in sales or marketing, make more of an impact by

putting yourself in the customer’s shoes and reviewing the
steps in the consumer decision-making process.

Steps in the consumer decision

process
Generally speaking, the consumer decision-making process
involves five basic steps.

1. Problem recognition
The first step of the consumer decision-making process is
recognizing the need for a service or product. Need
recognition, whether prompted internally or externally,
results in the same response: a want. Once consumers
recognize a want, they need to gather information to
understand how they can fulfill that want, which leads to step
two.

But how can you influence consumers at this stage? Since

internal stimulus comes from within and includes basic
impulses like hunger or a change in lifestyle, focus your sales
and marketing efforts on external stimulus.

Develop a comprehensive brand campaign to build brand

awareness and recognition––you want consumers to know
you and trust you. Most importantly, you want them to feel
like they have a problem only you can solve.

Example: Winter is coming. This particular customer has

several light jackets, but she’ll need a heavy-duty winter coat
if she’s going to survive the snow and lower temperatures.

2. Information search
Content Map With Funnel (B2C) Example (Click on image to modify online)

When researching their options, consumers again rely on

internal and external factors, as well as past interactions with
a product or brand, both positive and negative. In the
information stage, they may browse through options at a
physical location or consult online resources, such as Google
or customer reviews.

Your job as a brand is to give the potential customer access

to the information they want, with the hopes that they decide
to purchase your product or service. Create a funnel and plan
out the types of content that people will need. Present
yourself as a trustworthy source of knowledge and
information.

Another important strategy is word of mouth—since

consumers trust each other more than they do businesses,
make sure to include consumer-generated content, like
customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on

Google to see what options are out there. When she sees
someone with a cute coat, she asks them where they bought
it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process,

prospective buyers have developed criteria for what they
want in a product. Now they weigh their prospective choices
against comparable alternatives.

Alternatives may present themselves in the form of lower

prices, additional product benefits, product availability, or
something as personal as color or style options. Your
marketing material should be geared towards convincing
consumers that your product is superior to other alternatives.
Be ready to overcome objections—e.g., in sales calls, know
your competitors so you can answer questions and compare
benefits.

Example: The customer compares a few brands that she

likes. She knows that she wants a brightly colored coat that
will complement the rest of her wardrobe, and though she
would rather spend less money, she also wants to find a coat
made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the
purchase. Once they have gathered all the facts, including
feedback from previous customers, consumers should arrive
at a logical conclusion on the product or service to purchase.
If you’ve done your job correctly, the consumer will recognize
that your product is the best option and decide to purchase
it.

Example: The customer finds a pink winter coat that’s on sale

for 20% off. After confirming that the brand uses sustainable
materials and asking friends for their feedback, she orders
the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves

reflection from both the consumer and the seller. As a seller,
you should try to gauge the following:

 Didthe purchase meet the need the consumer

identified?
 Is the customer happy with the purchase?
 How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues

to have a positive experience with your product. Post-
purchase engagement could include follow-up emails,
discount coupons, and newsletters to entice the customer to
make an additional purchase. You want to gain life-long
customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep customers
happy.

Tools to better understand your

customer
Putting yourself in the customer’s shoes can help you steer
consumers towards your product. Here are some tools to help
you analyze their decision-making process and refine your
brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s

actions. Use it to empathize with your customers as they go
through a specific process or try to complete a purchase. Map
out the actions the customer is likely to take.

Learn how to make a customer journey map to understand

the decision-making process for your product/service.

Customer Journey Map Example (Click on image to modify online)

Empathy map
Empathy maps help teams understand the customer’s
mindset when dealing with a product or service. They can be
used for personas or specific customer types. Empathy
mapping is often most helpful at the beginning of a new
project. Collaborate as a team to quickly get inside the heads
of your customers during every step of product development,
testing, and release.

Learn how empathy maps work so you can understand your

customers better and make customer-oriented decisions.
Basic Empathy Map Example (Click on image to modify online)

User personas
Based on user research or past user interactions, user
persona cards construct fictional or composite personas that
break down and organize your data into distinctive types of
users. Build a more human picture of your users and
understand your user base better by creating user personas
for the various types of users for your product or service.

User Persona Card Example (Click on image to modify online)

Understanding the consumer decision-making process is key

if you want to attract more customers and get them to make
that crucial purchase. Use this process and the tools above to
tune in to consumers and genuinely understand how to reach
them.
What is the consumer decision making process

The consumer decision-making process involves five basic steps. This is the process by which
consumers evaluate making a purchasing decision. The 5 steps are problem recognition,
information search, alternatives evaluation, purchase decision and post-purchase evaluation.

5 steps of the consumer decision making process

1. Problem recognition: Recognizes the need for a service or

product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable
alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they made

The consumer decision-making process can seem mysterious,

but all consumers go through basic steps when making a
purchase to determine what products and services will best
fit their needs.

Think about your own thought process when buying

something—especially when it’s something big, like a car.
You consider what you need, research, and compare your
options before making the decision to buy. Afterward, you
often wonder if you made the right call.

If you work in sales or marketing, make more of an impact by

putting yourself in the customer’s shoes and reviewing the
steps in the consumer decision-making process.
Steps in the consumer decision
process
Generally speaking, the consumer decision-making process
involves five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is

recognizing the need for a service or product. Need
recognition, whether prompted internally or externally,
results in the same response: a want. Once consumers
recognize a want, they need to gather information to
understand how they can fulfill that want, which leads to step
two.

But how can you influence consumers at this stage? Since

internal stimulus comes from within and includes basic
impulses like hunger or a change in lifestyle, focus your sales
and marketing efforts on external stimulus.

Develop a comprehensive brand campaign to build brand

awareness and recognition––you want consumers to know
you and trust you. Most importantly, you want them to feel
like they have a problem only you can solve.

Example: Winter is coming. This particular customer has

several light jackets, but she’ll need a heavy-duty winter coat
if she’s going to survive the snow and lower temperatures.

2. Information search
Content Map With Funnel (B2C) Example (Click on image to modify online)

When researching their options, consumers again rely on

internal and external factors, as well as past interactions with
a product or brand, both positive and negative. In the
information stage, they may browse through options at a
physical location or consult online resources, such as Google
or customer reviews.

Your job as a brand is to give the potential customer access

to the information they want, with the hopes that they decide
to purchase your product or service. Create a funnel and plan
out the types of content that people will need. Present
yourself as a trustworthy source of knowledge and
information.

Another important strategy is word of mouth—since

consumers trust each other more than they do businesses,
make sure to include consumer-generated content, like
customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on

Google to see what options are out there. When she sees
someone with a cute coat, she asks them where they bought
it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process,

prospective buyers have developed criteria for what they
want in a product. Now they weigh their prospective choices
against comparable alternatives.

Alternatives may present themselves in the form of lower

prices, additional product benefits, product availability, or
something as personal as color or style options. Your
marketing material should be geared towards convincing
consumers that your product is superior to other alternatives.
Be ready to overcome objections—e.g., in sales calls, know
your competitors so you can answer questions and compare
benefits.

Example: The customer compares a few brands that she

likes. She knows that she wants a brightly colored coat that
will complement the rest of her wardrobe, and though she
would rather spend less money, she also wants to find a coat
made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the
purchase. Once they have gathered all the facts, including
feedback from previous customers, consumers should arrive
at a logical conclusion on the product or service to purchase.
If you’ve done your job correctly, the consumer will recognize
that your product is the best option and decide to purchase
it.

Example: The customer finds a pink winter coat that’s on sale

for 20% off. After confirming that the brand uses sustainable
materials and asking friends for their feedback, she orders
the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves

reflection from both the consumer and the seller. As a seller,
you should try to gauge the following:

 Didthe purchase meet the need the consumer

identified?
 Is the customer happy with the purchase?
 How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues

to have a positive experience with your product. Post-
purchase engagement could include follow-up emails,
discount coupons, and newsletters to entice the customer to
make an additional purchase. You want to gain life-long
customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep customers
happy.

Tools to better understand your

customer
Putting yourself in the customer’s shoes can help you steer
consumers towards your product. Here are some tools to help
you analyze their decision-making process and refine your
brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s

actions. Use it to empathize with your customers as they go
through a specific process or try to complete a purchase. Map
out the actions the customer is likely to take.

Learn how to make a customer journey map to understand

the decision-making process for your product/service.

Customer Journey Map Example (Click on image to modify online)

Empathy map
Empathy maps help teams understand the customer’s
mindset when dealing with a product or service. They can be
used for personas or specific customer types. Empathy
mapping is often most helpful at the beginning of a new
project. Collaborate as a team to quickly get inside the heads
of your customers during every step of product development,
testing, and release.

Learn how empathy maps work so you can understand your

customers better and make customer-oriented decisions.
Basic Empathy Map Example (Click on image to modify online)

User personas

Based on user research or past user interactions, user

persona cards construct fictional or composite personas that
break down and organize your data into distinctive types of
users. Build a more human picture of your users and
understand your user base better by creating user personas
for the various types of users for your product or service.
User Persona Card Example (Click on image to modify online)

Understanding the consumer decision-making process is key

if you want to attract more customers and get them to make
that crucial purchase. Use this process and the tools above to
tune in to consumers and genuinely understand how to reach
them.
What is Big Data?
Big Data refers to massive complex data sets that are generated from various sources and
grow exponentially with time. These attributes comprise the three Big Data Vs: huge volume,
high velocity, and extensible variety. Big data is so large in size and storage that it is
impossible to be understood efficiently by humans or traditional data management tools.

We can divide big data types into three segments:

  Structured data can be used for effective analysis and is represented by columns and rows in
relational databases. It can easily be mapped into pre-designed fields. It is the most popular
and simplest way to manage information.
 Semi-structured data does not reside in a relational database but has some organizational
properties that make it easier to analyze (e.g., XML data).
 Unstructured data is not organized in a predefined manner or does not have a predefined
data model; thus, it is difficult for a mainstream relational database (e.g., word files, PDFs, text,
or media logs).

What are customer insights?

Customer insights are a collection of trends in consumer behavior, data,

and feedback that helps businesses deeply understand their customers
and their purchasing decisions.

It’s important to collect quantitative and qualitative data from sources like
website metrics and social media mentions, as well as market research
and customer analytics, to form conclusive customer insights. While
market research gives you an overall understanding of consumer
behavior and market trends, customer analytics provides quantifiable
data on what your customers do online.

Tracking the qualitative and quantitative parts of a customer’s digital

footprint—and using them to reveal key purchasing behaviors—helps
businesses shape their service and product around how customers think
and feel.

Marketing Information System

Definition
A marketing information system is a tool that helps
companies gather and analyze information about their
customers, competitors, and market trends. It helps
companies make informed decisions about their marketing
strategies and products. It's like a detective, helping
businesses solve the mystery of what their customers want
and how to reach them.

Developing Marketing Information

Marketers can obtain the needed information from internal data,
marketing intelligence, and marketing research

What is Internal Databases?

Internal database is any collection of business data compiled using
the internal networks. Internal databases have data regarding
information on market and consumer behavior in an electronic form.

What Is Competitive Marketing Intelligence?

Competitive marketing intelligence refers to the practice of gathering and analysing data
about your competitors, their marketing strategies and market trends to gain insights
and make informed decisions.

It involves monitoring and evaluating various marketing activities and initiatives

undertaken by competitors in order to identify opportunities, improve marketing
strategies and stay ahead in the market.

What is marketing research?

Marketing research is defined as any technique or a set of practices
that companies use to collect information to understand their target
market better. Organizations use this data to improve their
products, enhance their UX, and offer a better product to their
customers. Marketing research is used to determine what the
customers want, and how they react to products or features of a
product.

What is a research plan?

A research plan is a documented overview of a project in its entirety, from end
to end. It details the research efforts, participants, and methods needed, along
with any anticipated results. It also outlines the project’s goals and mission,
creating layers of steps to achieve those goals within a specified timeline.

Without a research plan, you and your team are flying blind, potentially
wasting time and resources to pursue research without structured guidance.
The principal investigator, or PI, is responsible for facilitating the research
oversight. They will create the research plan and inform team members and
stakeholders of every detail relating to the project. The PI will also use the
research plan to inform decision-making throughout the project.
What are the seven steps to developing a research plan?
1. Defining the problem.
2. Identifying goals.
3. Choosing research methods.
4. Recruiting participants.
5. Preparing the brief or summary.
6. Establishing task timelines.
7. Defining how you will present the findings.
Secondary data ?
Secondary data refers to data that is collected by someone other than
the primary user. Common sources of secondary data for social
science include censuses, information collected by government
departments, organizational records and data that was originally
collected for other research purposes.
Primary data?
Primary data is information collected firsthand for a specific research
purpose. It is original and unprocessed, providing new insights directly
relevant to the researcher's questions or objectives.

Sampling plan?
A sampling plan is an outline based on which research is conducted. A
sampling plan outlines the individuals chosen to represent the target
population under consideration for research purposes. It is crucial to
verify that the sampling plan is representative of all kinds of people to
draw accurate conclusions.
What is Strategic Planning?

Strategic planning is the art of creating specific business strategies,

implementing them, and evaluating the results of executing the
plan, in regard to a company’s overall long-term goals or desires. It
is a concept that focuses on integrating various departments (such
as accounting and finance, marketing, and human resources) within
a company to accomplish its strategic goals. The term strategic
planning is essentially synonymous with strategic management.

What is a marketing mission statement?

A marketing mission statement is a description of the purpose of an organization's
marketing content. It explains the primary goal marketers have in distributing content,
which might be to offer information, foster community or generate leads. A mission
statement makes up part of a business's overarching content marketing strategy, which
can also include a value proposition, a statement outlining the benefits of a product or
service. Content marketing itself is the process of creating and publishing print and digital
materials that promote products. Here are some common forms of content marketing:

What is a Marketing Portfolio

A marketing portfolio is a collection of materials and
documentation that showcases an individual’s or a
company’s marketing work, achievements, skills, and
capabilities. It serves as a comprehensive representation of
the marketer’s expertise and experience in various aspects of
marketing.

The purpose of a marketing portfolio is to demonstrate

proficiency, creativity, and results to potential clients,
employers, or collaborators.

It’s your professional story, neatly packed into a compelling

document or web page. But what’s in it?

What Is a BCG Growth-Share Matrix?

The Boston Consulting Group (BCG) growth-share matrix is a planning tool

that uses graphical representations of a company’s products and services in
an effort to help the company decide what it should keep, sell, or invest more
in.

The matrix plots a company’s offerings in a four-square matrix, with the y-axis
representing the rate of market growth and the x-axis representing market
share. It was introduced by the Boston Consulting Group in 1970
The growth-share matrix defines four types of SBUs:

1. Stars. Stars are high-growth, high-share businesses or products. They

often need
heavy investments to finance their rapid growth. Eventually their growth will
slow
down, and they will turn into cash cows.
2. Cash cows. Cash cows are low-growth, high-share businesses or products.
These established
and successful SBUs need less investment to hold their market share. Thus,
they
produce a lot of the cash that the company uses to pay its bills and support
other SBUs
that need investment.
3. Question marks. Question marks are low-share business units in high-
growth markets.
They require a lot of cash to hold their share, let alone increase it.
Management has
to think hard about which question marks it should try to build into stars and
which
should be phased out.
4. Dogs. Dogs are low-growth, low-share businesses and products. They may
generate
enough cash to maintain themselves but do not promise to be large sources
of cash.
What is a market product grid?
A market product grid is also known as an Ansoff Matrix or a product-market expansion grid. It
is a tool that businesses use to develop a growth strategy. Market product grid considers new and
existing markets, new and existing products, and the risks of each possible relationship.

The market product grid divides strategic outcomes by four major categories:

 Market penetration: a business creates growth by bringing its current

products to existing markets
 Market development: a business creates growth by bringing its current
products to new markets
 Product development: a business creates growth by bringing new
products into existing markets
 Diversification: a business tries to create growth by bringing new
products to new markets

marketing environment?
A marketing environment encompasses all the internal and external factors that drive and
influence an organization's marketing activities. Marketing managers must stay aware of the
marketing environment to maintain success and tackle any threats or opportunities that may
affect their work.In this article, we'll explore the components of the marketing environment, their
influence on marketing decisions, and how businesses can navigate these complexities for
successful campaigns.As we delve into the complexities of the marketing environment, you can
unlock a free trial with Wrike. From workflows to real-time communication, Wrike can help you
streamline your marketing operations in one platform.

Why is a marketing environment important?

A marketing environment is vast and diverse, consisting of controllable and uncontrollable

factors. A good grasp of your marketing environment helps to:

 Identify opportunities: Understanding your marketing environment helps you notice and take
advantage of market opportunities before losing your edge. For example, say your marketing
team sees an uptick in digital buying over in-shop sales. You may decide to allocate more
resources to your online marketing funnel to drive more sales.
 Identify threats: Studying your marketing environment alerts you to potential threats which may
affect your marketing activities. For example, a market leader could diversify their product
portfolio to compete with your organization. Foreknowledge of this can help you restrategize
your marketing efforts to maintain and grow your market share.
 Manage changes: Paying attention to the marketing environment also helps manage changes
and maintain growth in a dynamic economy. Marketing managers can forecast and determine
timely marketing campaign strategies by monitoring their marketing environment.

Features of a marketing environment

The features of a marketing environment are typically:

 Dynamic: The factors that affect marketing environments constantly change over time. These
could be technological advancements, industry regulations, or even customer tastes.
 Relative: Marketing environments are relative and unique to each organization. A specific
product from your company may sell quicker in the U.S. than in Europe because of distinctions in
the marketing environment.
 Uncertain: Market forces are unpredictable. Even with constant study, you may face unexpected
threats or opportunities in your marketing operations. Adept marketers must be able to learn,
pivot, and strategize quickly to achieve their goals.
 Complex: The many internal and external forces in a marketing environment make it complex,
with various essential moving parts. For example, you must coordinate your team’s ability and
resources with stakeholder expectations, customer satisfaction, and other ethical and
environmental concerns.
What is Micro Environment?

“Micro environment” is the environment that exists within a company or organization and can
influence daily operations. It refers to the specific and immediate surroundings where a company
operates and interacts with various stakeholders. It encompasses the factors that directly affect
the organization’s ability to serve its customers and achieve its objectives. Understanding the
microenvironment is essential for businesses as it helps them identify opportunities, assess risks,
and develop effective strategies.

These factors are closer to the company and have a more immediate impact than the macro
environment, which includes broader societal, economic, and political forces.

The individuals or organizations that purchase the products or services of a business. For
example, a restaurant’s micro environment includes regular customers who visit the
establishment frequently. Their taste, preferences, demands, etc., directly influence its sales and
strategies affecting the restaurant’s profits.

Macro-environment
A macro-environment is concerned with the arrangement of conditions that exist in the economy
all in all, rather than in a specific area or sector. As a general rule, the macro environment deals
with patterns for the total national output (Gross Domestic Product), monetary policy, inflation,
spending patterns, inflation, and fiscal policy.
Macro-environment
A macro-environment is concerned with the arrangement of conditions that exist in the economy
all in all, rather than in a specific area or sector. As a general rule, the macro environment deals
with patterns for the total national output (Gross Domestic Product), monetary policy, inflation,
spending patterns, inflation, and fiscal policy.

Forces of Macro-environment:

The macro-environment is made up of six different forces they are:

 Economic environment
 Political environment
 Demographic environment
 Social-cultural environment
 Technological environment
 Ecological environment
Economic environment:

The Economic powers identify with factors that influence customer buying power and spending
designs. For example, an organisation ought to never begin exporting its products to a nation
prior to having analysed how much individuals will actually want to spend. Significant measures
are gross domestic product, import duty, value-added tax, rate, and sales tax, inflation, personal
disposable income, spending patterns, underemployment, and unemployment.

Political environment:

Each business is restricted by the world of politics. This includes laws, government offices, and
strain or pressure groups, which impact and limit associations and people in the general public.
Accordingly, promoting and marketing choices are unequivocally impacted and influenced by
the advancements in the world of politics.

Prior to entering another market in a far-off country, the organisation should have a deep
understanding of the function of the political and legal environment. What will the enactment
mean for the business? What rules does it have to comply with? What laws might restrict the
company’s capacity to be effective? For instance, laws covering issues like ecological protection,
pricing, product safety, competition, and safety regulations might require the firm to adjust
specific strategies and systems to the new market.

Demographic environment:

The demographic environment is identified with individuals. The name alludes to the term
demography and to the investigation of human populaces. This incorporates size, age, sexual
orientation, the density of population, occupation, and different insights of statistics. Why are
individuals significant? Since, in general, their necessity is the justification for organisations to
exist. As such, individuals are the main impetus for the improvement of business sectors. The
huge and different socio-economics demography propositions both opportunities and yet
additionally poses challenges for organisations. Particularly in the midst of quick total populace
development and generally speaking segment changes, the study of individuals is pivotal for
advertisers, marketers, and businesses. The explanation is that changing demography means
evolving markets. Further, changing business sectors mean a requirement for changed promoting
methodologies.

Subsequently, advertisers, marketers, and businesses should watch out for any changes in
demographics. This might incorporate a wide range of qualities of the populace, like size,
development, thickness, age structure, the density of population, and gender structures, etc.

Socio-cultural environment:

The Socio-cultural environment connects to factors that influence societies’ essential qualities,
inclinations, and conduct. The reason for these variables is framed by the way that individuals
are essential for the general public and social gathering that shape their values, beliefs, and
qualities. Numerous social bungles happen because of the disappointment of organisations in
understanding unfamiliar societies. For example, images, colours, and symbols might convey a
negative significance in another culture. To comprehend these, other social aspects can be
utilised, such as uncertainty avoidance, femininity, and masculinity, power distance,
individualism versus groupism, so on and so forth.

Technological environment:

Technological environment structure plays a critical impact in the macro-environment. They

identify with factors that make new innovations and, in this manner, make new market
opportunities and new products.

A technological environment is relatable to each individual thought of advancement of remote

correspondence methods, cell phones, tablets thus further. This might mean the rise of chances
for a business, yet look out: each new innovation replaces a more established one. Accordingly,
advertisers should watch the technological environment more intently and adjust to keep up. If
not, the products, services, and items will before long be obsolete, and the organisation will miss
new opportunities and manufacture new products and services.

Ecological environment:

The ecological environment or biological forces in the macro environment are significant since
they are about the natural assets that are required as inputs by advertisers or which are impacted
by their promoting and marketing activities. Additionally, natural concerns have filled
unequivocally as of late, which makes the biological environment a critical variable to consider.
For example, world, air, and water contamination are features each advertiser ought to know
about. All in all, one should monitor the patterns in the biological environment.

Significant patterns in the biological environment are the developing deficiency of unrefined
components and the consideration for sustainable assets. Moreover, expanded contamination, yet
additionally expanded mediation of government in natural assets or resources of the executives
and management, is an issue.

As a result of this large number of concerns and the expanded association of society in biological
issues, organisations never like before needed to consider and carry out ecological
maintainability. This implies that they ought to add to supporting the climate, for example, by
utilising sustainable power sources. Subsequently, organisations don’t just help the upkeep of a
green planet, yet additionally, react to shopper requests for harmless to the ecosystem and
dependable items or products.

Marketing Information System Definition

A marketing information system is a tool that helps companies gather and analyze information
about their customers, competitors, and market trends. It helps companies make informed
decisions about their marketing strategies and products. It's like a detective, helping businesses
solve the mystery of what their customers want and how to reach them.