The role of the mkt in the economy is to organize voluntary and competitive exchange in a way that ensures an efficient meeting between supply and demand for products and services.
This meeting is not spontaneous but requires the organization of union activities of two types:
The material organization of the exchange, that is, the physical flows of goods from the place of production to the place of consumption.
The organization of communication, that is, of the information flows that must precede, accompany and follow the exchange, in order to ensure an efficient meeting between supply and demand.
The function of the mkt in the economy is, therefore, to organize the exchange and communication between producers and buyers. This definition applies to both commercial and non-profit activities, generally to any situation where there is voluntary exchange between the organization and a public user of the services offered by the organization.
THE EXCHANGE ORGANIZATION
The org of the exchange is the responsibility of the distribution, whose function is to move the goods from the distributive situation of production to the distributive situation of consumption. The move to the distributive situation of consumption implies production by distribution of three types of profits, which constitute added value of the distribution.
- The utilities of state, is the set of material transformations destined to put the goods in conditions of consumption, these are the operations of fractionation, conditioning, assortment, etc. The utilities of place, or spatial transformations, such as transportation, distribution geographic, etc., which contribute to making the goods available to users in the places of use, transformation or consumption. Time utilities, or temporary transformations, such as storage, which allows the availability of the goods at the time desired by the buyer.
EXCHANGE MATERIAL ORGANIZATION: “DISTRIBUTION LOGISTICS” AND COMMUNICATION
The consumer buys, not a product but a set of satisfaction-generating attributes and also actively participates in the production of the desired satisfactions. The consumer must know the possibilities available to solve the problem he is facing. Due to the constant increase in the products and brands available in the market, the ratio of the information recalled by an average individual to the total of the available information does not stop decreasing.
The consumer must, therefore, in most cases, make his decisions on the basis of necessarily incomplete knowledge and therefore on the limited number of options that he is able to perceive.
INFORMATION CLASSES
The sources of information dominated by the producer, that is, the advertising, the opinion and the advice of the sellers and distributors, the samples and prospects. The advantages of this type of information are free and easy access. However, it is only incomplete and targeted information, in the sense that they value only the positive characteristics of the product and tend to hide the others.
The sources of personal information, dominated by consumers, are those communicated by friends, neighbors, opinion leaders, etc. What is called oral transmission. This type of information is often highly adapted to the needs of the future buyer. Its reliability will obviously depend on the issuer of the information.
Neutral sources of information, such as articles in newspapers and specialized magazines related to housing, furniture, hunting, audiovisual, automobile, etc. These publications allow access to a large number of information at a relatively small cost. Official and specialized agency reports, laboratory tests and comparative tests published at the initiative of consumer associations also form part of these categories. The advantages of this source of information are the objectivity, the concrete nature and the competence of the opinions formulated.
GLOBAL STRATEGIC MARKETING
Due to globalization, an interdependence of markets has been created, making the reference market the industrialized countries, but it is not correct to consider it as separate and different but as a whole.
In case of being an international company, it will have to take into account the technical standards and safety regulations in each country, that the colors and designs are different throughout the world and that consumers are different when choosing a product to satisfy your needs and wants.
MARKETING INFORMATION SYSTEM (SIM)
It is the set of material elements whose objective is to provide the information that the org requires in a timely manner and in a pertinent way. It begins with the need to obtain information to make or abort decisions, implement and control them.
Marketing Information System
NEEDS, WISHES AND DEMAND
Need: it is the feeling of lack of some of the basic satisfiers.
It is classified in:
False, true, absolute, relative, generic, derived, positive and negative.
Desires: it consists in yearning for a specific satisfier for a need.
Demand: is when a desire is backed by purchasing power and the will to acquire.
Marketing does not create a need since these issues are not controllable, but the mk influences the desires.
True and false needs
This approach to needs divides the concept into true and false, being the false needs created by society and the producer. These are cultural and social needs, created depending on the environment and social evolution.
Instead, the true needs are the innate, natural, generic and absolute needs.
Absolute and relative needs
The absolute needs are those that we experience, whatever the situation of others; and the relative ones are those whose satisfaction elevate us above others and give us a feeling of superiority over them.
The absolute needs are saturable, while the relative ones are not. Indeed, the relative needs are insatiable because the higher the general level rises, the more one seeks to overcome it.
Generic needs and derived need
The derived need is the concrete technological response (the good) provided to the generic need and is also the object of desire. The automobile, for example, is a derived need in relation to a generic need for individual transportation.
STUDY OF CONSUMER BEHAVIORS
The consumer's buying behavior involves a decision to solve a problem and the different kinds of decisions will have to vary according to the importance of the latter.
There are three types of decisions: 1) LIMITED; 2) EXTENSIVE and 3) ROUTINE.
This classification is given by the fact that consumption is not considered from mkt as an isolated act, but as a PROCESS that starts from the awareness of the existence of a problem situation. It also derives from “perceived risk”.
Importance of Perceived Risk
The complexity of the resolution behavior will depend on the perceived risk associated with the purchase act, that is, uncertainty about the scope of the consequences of the choice to be made.
4 types of unfavorable risks perceived by the buyer are usually identified.
- A financial loss, in case of replacement or repair to be carried out at your expense if the purchased product is defective. A waste of time, due to the hours dedicated to claims, returns to the dealer, repairs, etc. A physical risk, caused by products whose consumption or use could present health hazards, the environment. A psychological risk, reflecting the loss of self-esteem or a general dissatisfaction in the case of a bad purchase.
The only way for the buyer to reduce the perceived risk of the purchase decision, is to use the info in various forms, such as personal sources (family, neighbors, friends), commercial sources (advertising, sellers, catalogs), public sources (comparative tests, official publications) and sources related to experience (testing, manipulation, product examination).
THE DIFFERENT RESOLUTIONARY BEHAVIORS
- Extensive resolution conduct: it will be adopted where the value of the info and / or the perceived risk are high. These will be, for example, situations where the buyer is facing new brands in a class of new products for him, in this type of situation, the selection criteria are often poorly defined and a deep search for info is necessary to identify them. Limited resolutive conduct will be observed whenever there is a perceived risk, in the case of one or more new brands in a known product class, whose selection criteria are already defined. It is simply a matter of verifying the presence of the criteria in new brands, which requires a less active search for info. Routine resolving behavior,It is observed when the consumer has accumulated enough experience and info and has certain preferences towards one or more brands. There is a simplification of the election process that becomes routine and repetitive without seeking information, until the moment of innovation or a modification of the election criteria relaunches the problem and causes a process of complication.
ANALYSIS OF BUYER BEHAVIOR: MAIN INFLUENCE FACTORS IN BUYER'S CONDUCT.
The influence of culture on buyer behavior.
The study of culture is the study of all aspects of a society: its language, knowledge, laws, customs, etc. that give that society a distinctive character and personality. In the context of consumer behavior, culture is defined as the sum of beliefs, values and customs acquired and transmitted from generation to generation, which serve to regulate the behavior of a given society.
The impact of their culture on society is so natural and so deeply rooted that its influence on behavior is remarkable. Culture offers order, direction and guidance to the members of a society in all phases of its resolution of human problems. Culture is dynamic and gradual, and it continually transforms to suit the needs of society.
Culture is learned as part of the social experience. From childhood, the environment of a series of beliefs, values and customs that contribute to their culture is acquired. They are acquired through formal, informal and technical learning. Advertising improves formal learning by reinforcing desirable role models or expectations and enhances informal learning by providing role models.
Because the human mind has the ability to absorb and process symbolic communication, marketing can successfully promote tangible and intangible products and product concepts through mass media.
The elements of culture are transmitted by three institutions: the family, the church, and the school. A fourth institution plays a greater role in the transmission of the cult, are the media, both through editorial content and advertising.
Some manifestations of culture.
- National character Subcultures Non-verbal language: postures, gestures, food preference Importance of symbols, taboos, prohibitions, ritual attitudes (transition rites: graduation, marriage, retirement and death)
This cultural meaning is drawn from the world of culture itself and transferred to a consumer good through advertising and the fashion system. These goods are then transferred to consumer behavior through certain consumption rituals.
SUBCULTURAL ASPECTS IN CONSUMER BEHAVIOR
Subcultural analysis enables mkt to segment the market to meet the needs, motivations, perceptions, and attitudes that are shared by members of a specific subcultural group.
A subculture is a distinguishable cultural group that exists as an identifiable sector within a larger and more complex society. Its members have beliefs, values and customs that separate them from other members of the same society. The main subcultural categories are: nationality, race, religion, geographic location, age, sex, and education.
S ethnic ubcultura: serves origins. Offspring of common ancestors: they tend to vizier closely, they usually marry people from the same group, they share a sense of belonging.
Age.
Youth subculture. The teen market not only spends a lot of money of their own, but they do spend their family members too. Children greatly influence family consumption decisions. Corporations take advantage of the persistent trend of children in the search for a new product.
When designing messages for the youth market, the following guidelines should be taken into account:
- Never underestimate young people Be totally, absolutely and unconditionally sincere Recognize young people the merit of being motivated by rational values Be as personal as possible
Subculture of the elderly.
It is necessary to recognize certain unfavorable characteristics:
- They are conservative They have less than half the income of the entire population Their mental faculties may be impaired They are in poor health They are often isolated from people
Long-lived people shop near their home and pay attention to the vendor's product and brand suggestions.
A promotion strategy that gives good results is the so-called “transgeneration” in which adults, children and the elderly all appear together. In addition, the message should be sought:
- Keep it simple Contain familiar elements Step by step Give preference to print media Take advantage of context by appealing to evocation
SOCIAL CLASS
The measure of cognitive response refers us to the area of knowledge as the set of information and beliefs that a group of individuals and people can have.
Among the ways of measuring cognitive response, according to Lambin, we find the following:
- Notoriety measures: the ability to identify a brand by a potential buyer in sufficient detail to propose choosing or using that brand. Notoriety establishes a link between the brand and the product or category of products to which it belongs. The information is established by asking potential consumers about the brands they know within a category of analyzed products.
3 classes of notoriety can be distinguished: A) NOTORIETY - RECOGNITION I recognize the A mark and I realize that I need a certain product.
- B) NOTORIETY - REMEMBER the need precedes the memory of the brand. I am in need of such a product and I remember the brand XC) NOTORIETY - SPONTANEOUS - ASSISTED the question does not refer to any brand or the respondent is given a list of brands and is asked not only about whether they know them but also the positions using a scale.
AFFECTIVE LEVEL
The measurement of the affective level leads us to know the acceptance or rejection of a product. It also allows obtaining:
A diagnosis: helps to detect opportunities and / or problems a brand encounters.
Control: the measurement of attitudes before and after the implementation of strategies, allows a correct audit of the effort of the organization's mkt.
Forecast: knowing the attitude allows you to predict how a product or brand will be received by consumers.
After performing the PERCEPTUAL MAP, the org will be able to know the market positioning of the product and its brand and adopt different strategies according to the results: 1) modify the product 2) modify the weights of the attributes 3) modify the beliefs about the brand 4) modify beliefs about competing brands 5) attract attention to products not taken into consideration 6) modify the required level of attribute.
Explicit perceptual maps
- Attributes or qualities (safety, comfort, elegance) Relative weight (the value one gives to the product) Degree of presence of the attribute with its relative weight
MACROSEGMENTATION
This segmentation process is of strategic importance for the company as it leads to defining its field of activity and identifying the key factors to control in order to consolidate in these target markets.
For a company that has a MARKET ORIENTATION it is therefore important to define its scope of activity in terms of generic needs, and this from the beginning of strategic reflection.
- What are the needs-functions or combinations of functions to satisfy? He what?
Eg international transport of merchandise, prevention against oxidation, credits, insurance, medical diagnosis, etc.
- Who are the different groups of potential buyers interested in the product? Who is he?
These are the potential groups of buyers, homes, org, social class, geographical area, etc.
- What are the existing technologies or materials capable of producing these functions? The how?
You will find the know-how that allows you to carry out the functions or provide the aforementioned services: roads, railways, ships or planes for international transport.
Lambín makes it clear that for the MACRO segmentation in which the characteristics are general, they are useful when the future buyers are organizations, but when it comes to consumers (people), it is necessary to refine the definition of the characteristics of the buyers: ages, styles of life, purchasing behaviors, benefits sought, which is typical of MICROSEGMENTATION and is closely related to social and personal factors in consumer behavior.
MICROSEGMENTATION
The objective of micro-segmentation is to analyze the diversity of needs within the products-markets identified in the macro-segmentation analysis. Industrial consumers or customers who are part of the market product look for the same basic function in the products.
In the Segmentation Analysis, the product-market is divided into homogeneous groups of consumers (segments) from the point of view of the advantages sought by the product and distinguishes the organization from the others (competition - differentiation).
Microsegmentation is analyzed from the sociodemographic point of view, due to the advantages sought by consumers in the products, the lifestyles described in activities, interests and opinions; and for purchasing behaviors.
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