Buying decisons
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Buying decisons
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MEDIA BRIEF FORMAT
Country/Region:
Brand/Variant:
Year:
Campaign Start Date:
BACKGROUND
Market/Business/
Competitive Context: BUSINESS GOAL
Key Task
Competition
The path ahead
The key initiatives scheduled are:
Brand Calendar + Start Plan
Rationale for Brief
Communications Task
TASK
Marketing Target Audience:
What’s the barrier the communication has to overcome?
Required Target Audience Response (Attitude):
Required Target Audience response (behaviour):
Objectives
Business Objectives & how they will be measured
Creative units
Prioritisation of Reach/Frequency/
Continuity & Other communication objectives
Budgets
APPENDICES >>
Approvals
Name Signature Date
-
Brand/Variant:
Year:
Campaign Start Date:
BACKGROUND
Market/Business/
Competitive Context: BUSINESS GOAL
Key Task
Competition
The path ahead
The key initiatives scheduled are:
Brand Calendar + Start Plan
Rationale for Brief
Communications Task
TASK
Marketing Target Audience:
What’s the barrier the communication has to overcome?
Required Target Audience Response (Attitude):
Required Target Audience response (behaviour):
Objectives
Business Objectives & how they will be measured
Creative units
Prioritisation of Reach/Frequency/
Continuity & Other communication objectives
Budgets
APPENDICES >>
Approvals
Name Signature Date
-
The Buying Decision Process
The Buying decision process comprises of 5 steps.
Need Recognition - Information Search - Evaluation of Information - Purchase Decision - Post Purchase Decision/Evaluation.
Need Recognition is triggered by internal (person's normal need) or external stimuli such as advertisement, friends and must reach an intensity high enough to become a drive that would motivate the person to consider a purchase.
Problem Types
Need Recognition - Information Search - Evaluation of Information - Purchase Decision - Post Purchase Decision/Evaluation.
Need Recognition is triggered by internal (person's normal need) or external stimuli such as advertisement, friends and must reach an intensity high enough to become a drive that would motivate the person to consider a purchase.
Problem Types
- Routine Problems : Low Priced, regularly used consumer goods....low risk purchases.
- Limited Problems : Familiar category but new brand or somewhat expensive items.....slightly higher risk.
- Extensive Problem : unfamiliar category, infrequent purchases, high personal commitments....high risk, may lead to cognitive dissonance.
- Impulse Purchase : where not much time, thought or effort goes into the decision.
- Influenced by level of involvement (interest) in the decision.
- Memory (internal) search is sufficient for familiar, regularly used products: this involves the scanning of one's memory to recall previous experience or knowledge concerning the solutions to the problem.
- External search information sources include personal, commercial, public, experiential and may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering the information is low.
- Word of mouth sources are most influential (credibility).
Evaluation of Alternatives
- Evaluation process depends on the consumer and the buying situation.
- Attributes and importance weights are chosen as criteria
- Alternatives compared against the criteria.
- Marketers can influence this stage.
Purchase Decision.
Tow factors intercede between purchase intention and actual decision : attitude of others and unexpected situational factors.
Post Purchase Behaviour
What the consumer thinks and does after purchasing and using the product
- Satisfaction : relationship between consumer expectation and perceived performance - satisfied customers tend to be loyal
- Consumer Delight : When the perceived value is definately superior to expectations - delighted consumers engage in positive word of mouth.
- Unhappy or dissatisfied customers tell others.
- Cognitive dissonance - post purchase doubts /tensions.
Cognitive Dissonance
- Feeling of psychological tension or post purchase doubts after a difficult purchase decision
- Cognitive dissonance is likely when when choices are very similar or the rejected alternative has a desirable features lacking in the chosen alterntive
- Consumers seek reassurance, deny info not in consonance with the choice , look for info that supports the choice (advertising)
- Dissatisfied do not re purchase.....they also generate bad Word-Of-Mouth.
- Marketing Communication must be honest, not create unrealistic expectation
- Follow up communication to reassure / reinforce
Six types of buying roles can be distinguished:
- Initiator : the person who first suggest or thinks of the idea of buying the particular category
- Influencer: the person whose views influence other members while making the final decision
- Decider: the person who decides any part of the entire buying decision - whether to buy, what to buy, how to buy and where to buy
- Buyer : the person who performs the physical act of buying. or does the paperwork
- User: the person who consumes or uses the product
- Gatekeeper : the person(s) who controls the information or access, or both to decision makers and influencers
Consumers Adoption Process of New Categories
This is a five stage process
Awareness - Interest - Evaluation - Trial - Adoption.
Five categories can be distinguished across geographical markets and product categories:
- Innovators : 2.5% - cosmopolitan and networked, low risk aversion, courageous and usually well off
- Early adopters : 13.5% - localized, opinion leaders, missionaries, role models, respected.
- Early Majority : 34% - high interaction, deliberate, non-leaders
- Late Majority : 34% - social / peer pressure, economic / social necessity, sceptical
- Laggards : 16% - past oriented, way behind, isolated, suspicious of changes
CONSUMER BEHAVIOUR
The Consumer Market comprises all individuals and households who buy or acquire goods and services for personal consumption.
- Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.
- We need to understand consumer behavior to answer the question: “How do consumers respond to marketing efforts the company might use?”
THE BUYING DECISION PROCESS
The Buying Decision Process comprises five steps:
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post purchase behavior / evaluation
FACTORS INFLUENCING CONSUMER BEHAVIOR
Personal Factors
- Age – linked to the types of products (categories) that people buy and use
- Life cycle stage – see details given below
- Occupation – certain occupations require people to buy and consume specific products such as types of apparel, accessories, equipment etc
- Economic situation – linked to the price people can afford to pay, and hence categories that are purchased and the brands that are selected within those categories
- Personality & Self Concept – see details given below
- Life style identification – linked to occupation, economic situation etc
Life Cycle Stages
- Single / Bachelor: not living at home; low total income but high discretionary income, few financial burdens; influenced by peer reference groups; buy basic furniture, kitchen items, clothes, vehicles, accessories…
- Newly Married Couples: young, no kids; financially better than they will be in near future; buy vehicles, durables, holidays, insurance, financial products…
- Full Nest I: youngest child under six; low savings, low liquid assets; spending focused on children’s needs; may purchase homes
- Full Nest II: youngest child over six; improved financial position, wives may resume earning; children’s needs still dominate spending
- Full Nest III: older couples with dependent children; older children at work / higher education; more wives earning; buy expensive furniture, holidays, durables
- Empty Nest I: older married couple , no children at home; head of family still employed, income at highest level, low expenses; home ownership at peak; buy luxuries, home improvements, recreation, travel, self education
- Empty Nest II: older married couple , no children at home; head of family retired, significant decrease in income, concern about savings, pensions; spend on medical care, health, some hobbies & pastimes
- Solitary Survivor: still working, income adequate; worries about savings, security, dependence; may sell family home and buy smaller property; spend on some pastimes
- Solitary Survivor, Retired: significant cut in income; high medical expense; need attention, affection, assistance in personal & financial affairs
Personality & Self Concept
- Personality: a set of distinguishing human psychological traits that leads to relatively consistent and enduring responses to environmental stimuli, including buying behaviour.
- Personality: often described in terms of self confidence, dominance, deference, sociability, defensiveness, adaptability…
- Personality can be a useful factor in analysing brand choices – consumer likely to select brands whose personalities match their own
- Brand Personality: a specific mix of human traits that can be attribute to a specific brand: sincere, exciting, sophisticated, rugged, competent…
- Actual Self Concept: how we perceive ourselves
- Ideal Self Concept: how we would like to view ourselves
- Others’ Self Concept: how we think others see us.
Psychological Factors
- Motivation: a need becomes a motive when it is strong enough to propel us to act, to seek satisfaction
- Perception: process by which we select, organize and interpret information to form a picture of the world
- Learning: changes in behavior arising from experience
- Beliefs: a descriptive thought about something
- Attitudes: consistent / enduring favorable / unfavorable evaluations, feelings, and tendencies towards something
Family
The family is the most important consumer buying unit in any society or market in terms of the variety of the item purchased.and volumes. Family members are usually the most important or influential primary reference groups regarding consumption patterns.
The family of orientation consists of parents and siblings who have a strong influence on consumptions habits that lasts a lifetime while the family of procreation comprises the spouse and children where the issue of dominance and influence of purchases and consumption patterns need to be analyzed and understood by marketers.
Reference Groups
- Reference group: group of people with whom a person associates and who influence that person's attitudes, values, behavior, consumption habits. Membership groups are those that have a direct influence.
- A primary group consists of people with whom an individual has continuous informal interaction, such as family, friends, neighbors, colleagues.
- Secondary groups comprise religious bodies, professional associations, trade unions, etc
- Aspirational groups are those a person hopes to join.
- A dissociative group is one whose values or behavior a person rejects and hence tends to avoid such people and groups.
Social Role & Status
- Role: Activites a person is expected to perform
- Status : Each Role a person is expected to perform
- People select products & Brands that reflect their role and actual / desired status in society
- Marketers need to be aware of the status symbol potential of products and brands
Cultural Factors
- Culture: The fundemantal determinant of a person's want's and behavoir acquired through socialization processes with the family and other key institutions - it comprises a set of values, knowledge perceptions, preferences, etc.
- Sub-Culture: susbset of culture, comprising of sub-groups of Individuals who have similar value and behavior patterns within the group but differ from those in other sub-groups - religions, racial groups, special interest groups, etc .
- Social Class: Relatively homogeneous, enduring divisions in society, hierarchically ordered with members sharing the same values, interests, behavior.
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