Consumer Marketing Strategies 3.

Personal Factor – refers to the personal

characteristics of the buyer in terms of age,
Consumer Buying Behavior
occupation, income, and lifestyle.
The term behavior refers to the
4. Psychological Factor – refers to perceptions,
reaction of the consumers to changes in the
beliefs, and attitudes of consumers. Consumers
environment that influence their buying
may have different perceptions, beliefs, and
decision
attitudes.
The consumer buying behavior is the
Buying Decision Process
reaction of the consumers to various events or
forces that are happening in the business Recognition of NEEDS and WANTS
community which contribute to the decision
Search for relevant information about the
process.
product
How to determine buying behavior of the
Evaluation of alternatives
consumers?
Purchase decision
Some relevant questions on consumer buying
behavior: Post – purchase analysis

➢What are the taste and preferences of the Entrepreneurial Research on Consumer Buying
consumers? Behavior

➢What makes the consumers buy or not buy Entrepreneurial Research

the product??
❑Research is defined as a scientific
➢What are the factors influence the consumer investigation. It involves the collection,
buying behavior? presentation, analysis, and interpretation of
gathered data
➢How does the consumer decide in buying
behavior? Types of Entrepreneurial Research Exploratory
Research –
Environmental Factors that Affects the
consumer buying behavior Exploratory Research – considered the preliminary
research work conducted by an entrepreneur that is
1. Cultural Factor – every ethnic or racial groups designed to gather baseline information to be used
in the Philippines are unique or has a different in solving a problem.
and distinct culture. This includes perceptions,
Descriptive Research – is conducted by the
attitudes, value systems, and even religion entrepreneur when the foremost objective is to
influence their buying behavior. describe the present buying behavior of the
consumers in terms of environmental factors, buying
2. Social Factor – refers to the relationship
decision process, and marketing mix.
maintained or established by the consumers
with other members of the society. This Casual Research – is when the objective is to
includes upper social – class, middle, and lower determine whether the behavior of the consumer is
social class. Middle class is made up of caused by some environmental factors
professionals and blue – and white – collar
workers.
 Research Data Price – Sensitive Buying Behavior – consumers
exhibiting a price – sensitive buying behavior
Research Data refers to the kind of necessary
are mostly concerned with the price of the
information to be gathered in answering the
product instead of the brand.
objective of the research work.
The Marketing Mix
Quantitative Data – can be counted and
mathematically computed. Expressed in What is The Marketing Mix?
numerical values.
❖It refers to a mode, means, or tool used by
Qualitative Data – are generally descriptive the entrepreneur to position the product in the
data and hence cannot be counted target market segment to efficiently and
effectively deliver it to the consumers and to
Primary Data – research data sourced by the
convince them about the benefits that they will
entrepreneur directly from the consumers
derive from buying the product.
belonging in the market segment.
❖The marketing mix is also known as the “Ps”
Secondary Data – are data previously gathered
in marketing
by another researcher for other purposes and
now exist on other sources.

Research Instruments

A research instrument is a tool used by the

entrepreneur in gathering or collecting data

Examples of Research Instruments:

Survey questionnaire

Interview schedule

Observanation Checklist
The 7Ps of Marketing
Types of Buying Behavior
Product – refers to the tangible good or
Complex Buying Behavior – usually manifested intangible service offered by the business
when they are buying expensive goods
Price – influence of the setting of prices:
Simple Buying Behavior – usually exhibited availability of the competing products, cost of
when the goods are not highly priced and the making the product, type of product, presence
consumers are not deeply attached to certain of substitute products, stages of the product in
brands the market, demographic profile of the target
consumers
Brand – Sensitive Buying Behavior – consumers
are very particular with product labels. They Place – refers to the place to where the target
value branded products or those who already consumers are
established image in the market.
Promotion – refers to the mode of conveying
the presences and attributes of the product to
the target consumers
People – refers to the individual employees or Love and belonging friendship, intimacy, family,
workers who are directly involved in the sense of connection
production, marketing, and sale of the product
Safety needs personal security, employment,
or the service.
resources, health, property
Packaging – refers to the process of putting the
Physiological needs air, water, food, shelter,
product in a package or container.
sleep, clothing, reproduction
Packaging must be user – friendly, that it must
Branding
be easy to open, handle, and store

Positioning – refers to the place occupied by ❑Brand refers to the name, design, color,
the product in the minds of the consumers. A symbol, quality, features or a combination of
marketing strategy that defines the target these elements that make the product separate
consumers. and distinct from similar products of the
competitors.
The 7Ps of Marketing
Brand Name
Integrated Marketing Mix
➢Brand names influence the buying decision of
❖Customer Satisfaction the consumers

❖Customer convenience for place ➢The brand name must be able to easily attract
the attention of the target consumers, influence
❖Customer cost lowered
them, and lead them to buy the product.
❖Customer Information for promotion
➢Here are some approaches to help you have
❖Customer quality assurance for people your brand name:

❖Customer safety for packaging ➢Review carefully the attributes, benefits, and
values of your product
❖Customer decision for positioning
➢Evaluate the consumers in the target market
The Concept of Needs, Wants, and Branding
Strategy ➢Analyze the proposed marketing strategies

NEEDS AND WANTS ➢List the possible brand names by considering

the first three steps
NEEDS – refers to the things that a person must
have in order to survive ➢Limit the brand name to one or two words

WANTS – refers to the things that a person ➢Check the internet if the chosen brand name
must have in order to be happy, comfortable, already exists
and satisfied
Branding Strategy
Self-actualization desire to become the most
that one can be Starts with the formulation of a brand name for
the first single product that business intends to
Esteem respect, self-esteem, status, make
recognition, strength, freedom
The situation becomes more complicated when Product Extension Approach
the business starts to offer additional products
❖A new product carries the brand name in a
When this happens, will all the products carry new category.
one brand name or will each product carry a
distinct and separate brand name? ❖The new or added product appears to be
totally different from the old or existing product
Businesses in situations like this adopt two line
branding strategies, namely the umbrella brand
approach and house brand approach

House Brand Approach

➢Every product of the same business has a

separate brand name that distinguishes it from
the rest of the company’s products.

Branding Extension Strategy

The level or degree of the consumer’s

perceptions or reactions to a brand is
technically known as a brand equity.

Entrepreneurial ventures with high positive

brand equity are capitalizing or leveraging on
this branding concept called branding extension
strategy.

There are two approaches in branding

extension strategies namely line extension
approach and product extension approach

Line Extension Approach

❖The existing product has been modified or

altered resulting in a new product or more
products without eliminating the original
product.

❖The new additional product must be within

the same category