Markerting Cha1-3
Markerting Cha1-3
Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education,
and entertainment.
Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)
The form of human needs take as they are shaped by culture and individual personality.
Wants are how people communicate their needs.
2. Product
A product is anything that can be offered to satisfy a need or want
Is not limited to physical products only
Values is the difference between the benefits that the customer gains from owning and/or using a product
expectation.
If expectation is < performance => delight Which level is considered as best? Why?
Quality:
has a direct impact on product/service performance
• Freedom from defect.
• The totality feature and characteristics of a product /service that bear on its ability to satisfy
customer needs.
• Begins with customer needs and ends with customer satisfaction.
• Fitness for purpose.
Transaction:
involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement
Is marketing’s unit of measurement.
A transaction consists of a trade of values between two parties.
Consists of
two things of value,
conditions that are agreed to,
a time of agreement and
place of agreement.
Relationship Marketing:
-Involves creating, maintaining and enhancing strong relationships with customers and other
stakeholders
-aims to build long-term mutually satisfying relations with key parties, which ultimately results in
Market
-A market is a set of actual and potential buyers who may transact with a seller.
-It is the place where the buyers and sellers meet.
A supply chain stretches from raw materials to components to final products that are carried to final
buyers.
Each company captures only a certain percentage of the total value generated by the supply chain.
-Achieving organizational goals depends on determining the needs and wants of target markets, and delivering
the desired satisfaction more effectively and efficiently than competitors.
-Outside-in perspectives, makes different from selling concept.
5. Societal marketing concept
New philosophy
Organization should determine the needs, wants and interests of target markets and deliver the desired
satisfactions more efficiently and effectively than competitors in a way that maintains or improves the
consumers’ and societies’ wellbeing.
Social and ethical consideration in their marketing practice
“Managers do not control the quality of the product when the product is a service… the quality of the
service is a precarious state-it is in the hand of the service workers who produce and deliver it.”
Karl Albrecht
Service culture
-Is a system of values and beliefs in an organization that reinforces the idea that providing the
customer with quality service is the principal concern of the business.
Characteristics of services
1.Intangibility
-cannot exactly be seen, heard or smelled before they are purchased.
-Customers who purchase a service may go away empty-handed but they do not go
away empty-headed… they have memories that can be shared with
others”-Robert Lewis
2.Inseparability
-Both the service provider and the customer must be present for the transaction to occur.
-Customer-contact employees are part of the product.
-The greater the interaction between the customer contact employee and the visitor, the more pleasurable the
service will be.
3. Variability
-Services quality depends on who provides them and when and where they are provided.
There are several causes for service variability:
Services are produced and consumed simultaneously, which limits quality control.
Fluctuating demand makes it difficult to deliver consistent products during periods of peak demand.
It depends on the service provider’s skill/experience.
Time/length of service/tiredness.
Lack of communication and heterogeneity of guest
4. Perishability
The inability to store, resell, return, save or transport a service is one of the main differences between goods
and services.
If service providers are to maximize the revenue,they must manage capacity and demand because they can’t
carry forward unsold inventory.
Last minute Vs Early minute discount
Services
1. Are performed
2. Performed on the producers’ premises, often with full customer participation (inseparable).
3. Customers travel to places where the services are delivered.
4. Purchase confers temporary right of access at a prearranged place and time.
5. Services are intangible at the point of sale; often can’t be inspected.
6. Perishable; stocks of product cannot be held.
Note: these characteristics are those that apply generally to most services and goods.
Chapter Two
Consumer Buying Behavior and Process
knowing
“To be a bullfighter, you must first learn to be a bull.”Anonymous
Consumer Behavior
-Refers to those acts of individuals directly involved in obtaining and using
goods and services, including the decision processes that precede and determine these acts.
-Understanding consumers “customers” is never Behavior and simple.
-Customers may say one thing and do another
-They may not be in touch with their deeper Motivations.
2. Social Factors
A. Groups- an individual’s attitudes and behavior are influenced by many small groups.
Membership groups- are those to which the person belongs that have a direct
influence. Friends, neighbors, and coworkers- specifically those with whom there is
regular but informal interaction.
Reference Groups- serve as direct (face-to-face) or indirect points of comparison or reference in
the forming of a person’s attitudes and behavior.
-Opinion leaders are people within a reference group, who, because of special skills,
knowledge, personality, or other characteristics, exert influences over others.
Aspiration groups- groups to which does not belong but would like to.
B. Family: has a strong influence on buyer behavior.
C. Roles & Statuses: a person belongs to many groups: family, clubs, and organizations.
-An individual’s position in each group can be defined in terms of role and status
-A role consists of the expected to activities according that a person is to the
perform around him/her. persons
-Each role carries a status reflecting the esteem given to it by society. People often products
which show their status in society.
3. Personal factors
Market segmentation recognizes that people differ in their tastes, needs, attitudes, lifestyles, family size
and composition...
Why segmentation?
Because
Buyers are too numerous
Buyers are widely scattered, and
Buyers are varied in their needs and buying practices.
Market-Coverage Alternatives
Undifferentiated Marketing: firm ignores market segmentation differences and goes
after the entire market with one market offer. One marketing mix to all markets
Differentiated Marketing: The firm targets several market segments and design separate
offers for each.
Marketing mix A Segment A
Marketing mix B Segment B
Segment A
One marketing mix- Segment B
Segment C
Market Positioning
In marketing, positioning has come to mean the process by which marketers try to create
an image or identity in the minds of their target market for its product, brand, or organization.
Poisoning is not what you do to a product.
Positioning is what you do to the mind of the prospect.
That is, you position the product in the mind of the prospect.
Positioning Strategies
1. Specific product attributes
2. Against an existing competitor
Tourism Resources
The potential & actual material and nonmaterial reserves of the area important to visit/ experience.
Tourism Products:-
The sum of both tangible and intangible materials as well as experiences found in the destination that
provide psychological satisfaction to tourists.
Focuses on the facilities and services designed to meet the needs of the tourist.
The sum of attractions, transportation, accommodation & entertainment which result in customer
satisfaction
5. Internal service quality- superior employee selection and training, high quality work environment
and strong support for those dealing with customers.
Internal marketing- the service firm must effectively train and motivate its customer-
contact employees and all the supporting service people to work as a team to provide
customer satisfaction.
Interactive marketing- perceived service quality depends heavily on the quality of
buyer- seller interaction during the service encounter.
Additional 3Ps
The traditional 4Ps marketing approach work well for goods, but additional elements
require attention in service business.
(Rooms,Bitner), suggested 3 additional 3Ps for service marketing: people, physical
evidence and process.
People- for most services are prepared by people, the selection, training and
motivation of employees make huge difference in customer satisfaction.
Physical evidence- a hotel will develop a look and style of dealing with customers that
realize its intended customer value proposition whether its cleanliness, speed or some
other benefit.
Process- the production process and organization system is also one
element of customer satisfaction.
CHAPTER- THREE
Consumer Markets and Consumers Buying Behaviors
Analyzing Consumer Markets and Buyer Behavior
Consumer Behavior (Engel, Kollat, & Blackwell): Those acts of individuals directly
involved in obtaining and using goods and services, including the decision processes that
precede and determine these acts.
Consumer Behavior Models
Consumer Processing Models (CPM): Consumer behavior is rational, highly cognitive,
systematic, and reasoned.
Hedonic, Experiential Models (HEM): consumer behavior is driven by fun, fantasies, and
feelings.
Culture
Exert the broadest and deepest influence on consumers behavior.
Culture is the most basic determinant of a person’s want and behavior.
It comprises the basic values, perceptions, wants, and behaviors that a person learns
consistently in a society
Culture is an integral part of the hospitality and travel business.
It determines what we eat, how we travel, where we travel, and where we stay.
Culture is dynamic, adapting to environment.
Social classes
Social classes are relatively permanent and ordered divisions in a society whose members
share similar values, interests, and behaviors.
Social scientists have identified the seven social classes: upper uppers(1%), lower
upper(2%), upper middle(12%), middle(32%), working(38%), upper lowers((%), lower
lower(7%).
Characteristics of Major Social Classes
1. Upper The social elite who live on inherited wealth. They give large
Uppers sums to charity, run the debutante balls, maintain more than one
(less than 1%) home, and send their children to the finest schools. They are a
market for jewelry, antiques, homes, and vacations. They often
buy and dress conservatively. Although small as a group, they
serve as a reference group to the extent that their consumption
decisions are imitated by the other social classes.
2. Lower Persons, usually from the middle class, who have earned high
Uppers income or wealth through exceptional ability in the professions
(about 2%) or business. They tend to be active in social and civic affairs and
to buy the symbols of status for themselves and their children.
They include the nouveau riche, whose pattern of conspicuous
consumption is designed to impress those below them.
Consumer behavior is also influenced by social factors including the consumers’ groups,
family,social roles, and status.
Groups- an individual’s attitudes and behavior are influenced by many small groups.
Those to which the person belongs that have a direct influence are called membership
group.
They include primary groups, such as family, friends, coworkers and so on.
Reference group- has face to face interaction
Aspirational groups- those which do not belong but would like to.
Family- has a strong influence on buyer behavior.
Role and status – an individual’s position in each group can be defined in terms
of role and status.
Self-Concept
Personality &
Age and life cycle stage - the type of goods and services people buy change
during their lifetime.
Preference for leisure activities, travel destinations, food and
entertainment are often age related
See text for complete table
Occupation – a person’s occupation affects the goods and services bought.
Economic situations – a person’s economic situation greatly affects product choice and
decision to purchase a particular product.
Life style- is a person’s pattern of living as expressed in his or her activities, interests,
and opinions.
Motivation
Influencing Buyer
Behavior
5
Self-
actualization
(self-development
and realization)
Influencing
Buyer Behavior
Perception
A motivated person is ready to act.
How that person acts is influenced by his or her perception.
Why do people have different perception of the same situation? This is
because of three perceptual processes.
Selective attention
Selective attention means that marketers have to work hard to attract
customers’ notice.
People are more likely notice stimuli that relate current need.
People are more likely to notice stimuli that they anticipate.
People are more likely to notice stimuli whose deviations are large in
relation to the normal size of the stimuli.
Selective Distortion
Even noticed stimuli do not always come across in the way the sender
intended.
SD- is the tendency to twist information in a way that will fit our
preconceptions
Selective Retention
People will forget much that they learn but will tend to retain information
that supports their attitudes and beliefs.
Because of this we are likely to remember good points mentioned about
competing products
learning
Change in individual’s behavior arising from experience.
Most human behavior is learned.
Belief and attitude
A belief is a descriptive thought that a person holds about something.
An attitude describes a persons relatively consistent evaluations, feelings,
and tendencies toward an object or an idea.
Low
Involvement
Postpurchase
behavior
Purchase
intention
Postpurchase
Behavior