Kotler basics of marketing short course. Introduction. Purchase decision process

According to the definition of the American scientist F. Kotler marketing- a type of human activity aimed at satisfying needs and requirements through exchange.

The basic idea behind marketing is the idea meeting human needs and requirements(physical needs and needs for food, clothing, warmth, security, social needs and needs, the need for knowledge and self-expression, etc.). The needs of people are unlimited, but the resources to satisfy them are limited. So a person will choose those goods that give him the greatest satisfaction within his capabilities.

Demand is a need backed by purchasing power. It is not difficult to enumerate the demand of a particular society at a particular point in time. However, demand is not a reliable indicator, as it changes. Changes in choice are affected by both price changes and income levels. A person chooses a product whose combination of properties provides him with the greatest satisfaction for a given price, taking into account his specific needs and resources.

Human needs, wants and demands are satisfied by goods. Under commodity in a broad sense, one can understand everything that can satisfy a need or need and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.

Exchange is the act of receiving a desired object from someone with an offer of something in return.

Market in marketing is understood as a set of existing and potential consumers of goods (sales market).

A key aspect of marketing is mindset. He suggests that when making marketing decisions, the manager should look at everything through the eyes of the consumer. Therefore, these solutions should be those that the consumer needs and wants.

The American Marketing Association (AMA) defines marketing as follows:

Marketing is the process of planning and inventing, pricing, promoting and realizing ideas, goods and services through an exchange that satisfies the goals of individuals and organizations.

There are four components to this definition:
1) management action (foresight, goal setting and planning, meeting demand);
2) a set of controlled elements of marketing activities (product (idea), price, distribution (implementation) and promotion);
3) objects with the help of which demand is satisfied and goals are achieved (goods, services, ideas, organizations, people, territories);
4) the method of meeting demand (exchange).

Thus, the previous definition can be briefly expressed as follows: "Marketing is the management of the satisfaction of demand through trade."

Marketing goals can be:
– maximum consumption;
– achieving maximum customer satisfaction;
– providing the widest possible choice;
- maximizing the quality of life.

From the point of view of enterprise management, the following marketing goals can be distinguished:
- increase in income;
- growth in sales volumes;
– increase in market share;
– creation and improvement of the image, fame of the enterprise and its products.

Marketing management is understood as the analysis, planning, implementation and control of activities designed to establish and maintain exchanges with target customers in order to achieve certain goals of the enterprise.

The following tasks of marketing activities in the enterprise can be distinguished:
1. Research, analysis and assessment of the needs of real and potential consumers of the company's products in areas of interest to the company.
2. Marketing support for the development of new products and services of the company.
3. Analysis, assessment and forecasting of the state and market development in which the enterprise operates or will operate, including research into the activities of competitors.
4. Participation in the formation of the strategy and tactics of the market behavior of the enterprise.
5. Formation of the assortment policy of the enterprise.
6. Development of the pricing policy of the enterprise.
7. Development of a policy for the distribution of goods of the enterprise.
8. Marketing communications.
9. Service.

3. System marketing information

A marketing information system is a set of personnel, equipment, procedures and methods designed to collect, process, analyze and distribute timely and reliable information necessary for the preparation and adoption of marketing decisions.

Conceptual model of marketing information system shown in fig. one.

Internal reporting subsystem is the basis of MIS. It reflects information about orders, sales, prices, stocks, receivables and payables, etc. The analysis of internal information allows the marketing manager to identify promising opportunities and pressing problems of the enterprise.

Rice. 1. Marketing information system

While the internal reporting subsystem contains and provides data on what has already happened, subsystem of the marketing surveillance system provides information about the market situation in this moment. Marketing Surveillance defined as an ongoing activity to collect ongoing information about a change external environment marketing, necessary both for the development and for the adjustment of marketing plans.

Marketing research unlike marketing observation, they involve the preparation and conduct of various surveys, analysis of the data obtained on a specific marketing task facing the enterprise.

MIS also includes subsystem for providing marketing solutions, which is an interconnected set of data systems, tools and methodologies with which an enterprise analyzes and interprets internal and external information.

Philip Kotler

Marketing Basics

© Williams Publishing House, 2007

Copyright © 1984 Prentice-Hall, Inc.

* * *

Introduction

In today's complex world, we all need to understand marketing. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we're marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.

We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the marketing methods used. Knowing marketing allows us to be smarter as consumers, whether it's buying toothpaste, frozen pizza, personal computer or a new car.

Marketing is one of the fundamental disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, etc. They need to know how to describe the market and break it down into segments; how to assess the needs, requests and preferences of consumers within the target market; how to design and test a product with the consumer properties necessary for this market; how to convey to the consumer the idea of ​​\u200b\u200bthe value of the product through the price; how to choose skilled intermediaries so that the product is accessible and well presented; how to advertise a product so that consumers know it and want to buy it. A professional marketer must, no doubt, have an extensive set of knowledge and skills.

Those who wish to study marketing can find many books on the subject. But even the thickest textbooks barely skim the surface of this science, because there is a huge amount of information to know about every marketing tool. Newcomers to the study of marketing need a very general understanding of its basics, so as not to drown in a sea of ​​specific details. It is from the standpoint of this approach that the proposed book “Fundamentals of Marketing. Short Course.

At the same time, the book “Fundamentals of Marketing. A Short Course" should not be viewed as just a general digression. The topic is too exciting to be limited to its schematic representation. The book provides case studies that illustrate the drama of modern marketing: the failure of the CBS cable television system; the never-ending confrontation between Coca-Cola and Pepsi-Cola; rise in the beer market of the company "Miller" from seventh to second place; the impact of Avon female salespeople on home shopping; a long-term campaign by Columbia Records to promote the Man at Work Orchestra; market price war home computers etc. Each chapter begins with a description of some significant event in the field of marketing. Real-life examples throughout each chapter fill the bare bones of marketing with the pulse of life.

When writing the book, I was guided by several principles. It should be interesting to read. It should cover all the main points that both the market leader and the ordinary citizen need to know. The narrative should develop logically from chapter to chapter. The presentation should be based on scientific research data, and not on rumors and conjectures, and be focused on management problems. My goal is to prepare the reader to make better marketing decisions.

Philip Kotler

Means to facilitate the assimilation of the material

The book uses many special techniques designed to make it easier for students to learn marketing. Here are the main ones.

Statement of goals. To prepare for the perception of the material, each chapter is preceded by a statement of its goals.

Initial screensaver. Each chapter begins with a short story from the practice of marketing, leading to the main material.

Numerical data, tables. The main provisions and principles discussed in the book are illustrated.

Inserts. Additional examples and other interesting information are provided throughout the book.

Summary. Each chapter ends with a brief recapitulation of the main provisions and principles set forth in it.

Issues for discussion. Each chapter is provided with a selection of questions covering the entire volume of the material presented in it.

Basic concepts. Definitions of new concepts are given at the end of each chapter.

Applications. Two appendices, "Marketing Arithmetic" and "Marketing Careers," provide additional material of practical interest.

Chapter 1 The Social Basis of Marketing: Satisfying Human Needs

Goals

After reading this chapter, you should be able to:

1. Define marketing and describe its role in the economy.

2. Compare five approaches to marketing management.

3. Tell what buyers, sellers and ordinary citizens expect from the marketing system.

4. Explain how marketing is used by the organization.

Everyday impact of marketing on consumers

Marketing affects the interests of each of us in any day of our lives. We wake up as the Sears clock radio comes on to a song by Barbra Streisand followed by a United Airlines commercial for a vacation in Hawaii. In the bathroom, we brush our teeth with Colgate toothpaste, shave with a Gillette razor, freshen our mouth with Listerine antiseptic, spray our hair with Revlon hairspray, and use a host of other toiletries and devices made in different parts of the world. We wear Calvin Klein jeans and Bass boots. In the kitchen, we drink a glass of Minute Maid orange juice, scoop Kellogg crispy rice into a bowl, and top it with Borden milk. After a while, we have a cup of Maxwell House coffee with two teaspoons of Domino's granulated sugar while chewing on a Sarah Lee muffin. We buy oranges grown in California, coffee imported from Brazil, a newspaper made from Canadian wood, and the news reaches us on the radio as far away as Australia. As we go through the mail, we find another Metropolitan Museum of Art catalogue, a letter from a Prudential Insurance sales representative offering various services, and coupons to save money on our favorite branded items. We leave the house and go to shopping center Northbrook Court, with Neiman Marcus, Lord & Taylor, Sears, and hundreds of shops stocked floor to ceiling with merchandise. Then we work out at the Nautilus fitness center, get a haircut at the Vidal Sassoon salon, and with the help of the Thomas Cook travel agency, we plan a trip to the Caribbean.

All this became possible thanks to the marketing system, and with minimal effort on our part. It provided us with a standard of living that our predecessors could only dream of.

What is marketing

What is behind the concept of "marketing"? Most mistakenly equate marketing with sales and advertising.

And no wonder! After all, Americans are constantly pestered by television commercials, newspaper ads, direct mail, visits from salesmen. Someone is always trying to sell something. It seems that we have nowhere to escape from death, taxes and commerce.

Therefore, many are surprised to learn that the most important element of marketing is not sales at all. Sales is just the tip of the marketing iceberg, one of its many functions, and often not the most significant one. If the marketer has done a good job with such sections of marketing as identifying consumer needs, developing suitable products and setting an appropriate price for them, establishing a distribution system and effective incentives, such products will certainly go easy.

Everyone knows about the so-called special hot goods for which consumers hunt in droves. When Eastman Kodak created the Instamatic cameras, Atari the first video games, and Mazda the PX-7 sports car, they were inundated with orders because they offered exactly the products that were in that time is needed. Not copycat products, but products that are clearly different from existing ones and offer consumers new benefits.

One of the leading management theorists, Peter Drucker, puts it this way: “The purpose of marketing is to make sales efforts unnecessary. Its goal is to know and understand the customer so well that the product or service will fit the customer exactly and sell itself.”

Name: Fundamentals of Marketing - A Short Course.

The first acquaintance with the marketing theory of the majority of citizens of the former USSR began with Philip Kotler's book Fundamentals of Marketing, published by the Progress publishing house in 1990. The textbook turned out to be so timely and in demand that hundreds of thousands of pirated copies immediately appeared, published by enterprising businessmen from the publishing business. The book you are holding in your hands is the only legal edition of your favorite bestseller today. This edition includes a new chapter on interactive marketing and new examples practical application individual theoretical positions.

The book is intended for students of economic specialties, but will be of interest to a wide range of readers.

In today's complex world, we all need to understand marketing. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we're marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.
We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the marketing methods used. Knowing marketing allows us to be smarter as consumers, whether it's buying toothpaste, a frozen pizza, a personal computer, or a new car.

CONTENT
Introduction 18
Chapter 1. The Social Basis of Marketing: Satisfying Human Needs
What is Marketing 21
Needs 22
Needs 22
Requests 23
Products 23
Exchange 25
Deal 26
Market 27
Marketing 29
Marketing Management 30
Marketing management concepts 30
Production improvement concept 32
Product development concept 33
The concept of intensifying commercial efforts 34
Marketing Concept 35
The concept of socially ethical marketing 36
Objectives of the marketing system 39
Achieving the highest possible high consumption 42
Achieving maximum customer satisfaction 42
Providing the widest possible choice 43
Maximizing the quality of life 43
The rapid spread of the marketing system 44
In the field of entrepreneurship 44
On the international stage 45
In the field of non-profit activities 45
Resume 46
Issues for discussion 47
Key Concepts Encountered in Chapter 1 48
Chapter 2 Marketing Management Process 50
Market Opportunity Analysis 52
Identification of new markets 53
Assessing Marketing Opportunities 55
Selection of target markets 58
Demand measurement and forecasting 58
Market segmentation 59
Selection of target market segments 59
Product positioning in the market 61
Development of the marketing mix 63
Implementation of marketing activities 65
Marketing Planning System 65
Marketing organization system 66
Marketing control system 72
Brief recap of theme 72
Resume 73
Issues for discussion 75
Basic Concepts Encountered in Chapter 2 75
Chapter 3 Marketing research and marketing information systems 77
Marketing Information System Concept 79
Internal reporting system 80
System for collecting external current marketing information 81
Market research system 82
Scheme marketing research 86
Identification of problems and formulation of research objectives 87
Selection of sources of information 88
Resume 98
Issues for discussion 99
Basic Concepts Encountered in Chapter 3 101
Chapter 4 Marketing Environment 102
The main factors of the microenvironment of the functioning of the company 105
Firm 105
Suppliers 106
Marketing intermediaries 107
Clientele 108
Competitors 109
Contact audiences 111
The main factors of the macroenvironment of the functioning of the company 114
Demographic environment 114
Economic environment 120
Natural environment 122
Scientific and technical environment 124
Political environment 127
Cultural environment 131
Resume 135
Issues for discussion 136
Basic Concepts Encountered in Chapter 4 137
Chapter 5 Consumer markets and consumer buying behavior 138
Buying Behavior Model 141
Buyer characteristics 142
Cultural level factors 143
Factors of social order 146
Personal factors 150
Psychological factors 153
Purchasing decision process 160
Awareness of the problem 161
Finding information 161
Evaluation of options 163
Buying decision 165
Buy reaction 165
Different options for making a decision to buy a novelty product 167
Stages of the process of perception 168
Individual differences of people in readiness to perceive innovations 168
The role of personal influence 170
The influence of product characteristics on the rate of its perception 171
Resume 171
Issues for discussion 172
Basic Concepts Encountered in Chapter 5 173
Chapter 6 The Enterprise Market and the Behavior of Organized Consumers 174
Industrial goods market 176
Who is in the industrial goods market? 176
What purchasing decisions do buyers of industrial products make?
Who is involved in making purchasing decisions for industrial products? 183
What is the main influence on buyers of industrial goods? 184
How exactly do buyers of industrial products make purchasing decisions? 186
Intermediary market 191
Who is in the reseller market? 191
What purchasing decisions do intermediaries make? 191
Who is involved in making purchasing decisions for goods for resale? 192
How exactly do intermediaries make purchasing decisions? 192
Public institutions market 193
Who is in the government market? 193
What purchasing decisions do buyers make on behalf of government agencies?
Who is involved in purchasing decisions on behalf of government agencies? 194
What has the main influence on the buyers of public institutions? 195
How exactly do government agencies make purchasing decisions? 195
Resume 197
Questions for discussion 198
Basic Concepts Encountered in Chapter 6 199
Chapter 7 Market segmentation, selection of target segments and product positioning
Market segmentation 203
General Approach to Market Segmentation 203
Basic principles for segmenting consumer markets 205
Basic principles of market segmentation for industrial goods 217
Selecting target market segments 218
Three options for market coverage 219
Identification of the most attractive market segments 222
Product positioning in the market 224
Resume 225
Issues for discussion 227
Basic Concepts Encountered in Chapter 7 227
Chapter 8 Product Development: Products, Brands, Packaging, Services 229
What is product 231
Product by design, product in reality, product with reinforcement 231
The main types of classification of goods 232
Durable goods, non-durable goods, services 233
Classification of consumer goods 234
Classification of industrial goods 236
Stamp Decisions 238
Brand Decisions 239
Decision on the owner of the brand 240
Brand Quality Decision 242
Decision on brand nepotism 242
Decision to expand the boundaries of the use of brand 245
Multibrand Approach Decision 245
Product packaging decisions 246
Labeling decisions 248
Customer Service Decisions 251
Service Package Decision 251
Service level decision 252
Decision on the form of service 252
Customer Service Department 253
Product Line Decisions 253
Decision on the breadth of the product range 253
Decisions concerning the commodity nomenclature 256
Resume 259
Questions for discussion 261
Basic Concepts Encountered in Chapter 8 262
Chapter 9 Product Development: New Products and Life Cycle Issues 264
New Product Development Strategy 266
Formulation of ideas 269
Selection of ideas 270
Concept Development and Verification 270
Marketing strategy development 273
Analysis of production and marketing opportunities 274
Product development 274
Trial Marketing 275
Deployment of commercial production 275
Approach to product life cycle stages 278
The stage of bringing the goods to the market 282
Growth Stage 282
Stage of maturity 283
Decline Stage 284
Resume 286
Issues for discussion 287
Basic Concepts Encountered in Chapter 9 288
Chapter 10 Setting prices for goods: tasks and pricing policy 289
Pricing in different types of markets 291
Pure competition 292
Monopolistic competition 292
Oligopolistic competition 292
Pure monopoly 293
Setting pricing objectives 294
Ensuring survival 294
Maximizing current profit 294
Winning leadership in terms of market share 294
Winning leadership in terms of product quality 295
Definition of demand 295
Methods for estimating demand curves 295
Price elasticity of demand 298
Cost estimate 298
Types of costs 299
Analysis of prices and products of competitors 299
Choosing a Pricing Method 300
Calculation of the price according to the method "average costs plus profit" 300
Price calculation based on break-even analysis and target profit 301
Setting a price based on the perceived value of a product 303
Setting a price based on current price levels 303
Price setting based on closed tenders 305
Setting the final price 305
Psychology of price perception 305
Firm 305 pricing policy
Effect of price on other participants market activity 306
Resume 308
Questions for discussion 308
Basic Concepts Encountered in Chapter 10 309
Chapter 11 Setting prices for goods: approaches to the problem of pricing 310
Approaches to the problem of pricing 311
Setting prices for new product 311
Product line pricing 313
Geographic pricing 315
Setting prices with discounts and offsets 317
Promotion pricing 318
Setting discriminatory prices 319
Proactive price changes 321
Proactive price cuts 321
Proactive price increase 321
Consumer reactions to price changes 322
Reactions of competitors to price changes 322
The firm's response to price changes by competitors 323
Resume 323
Questions for discussion 324
Basic Concepts Encountered in Chapter 11 325
Chapter 12 Distribution Methods: Distribution Channels and Merchandising
The nature of distribution channels 329
Why intermediaries are needed 329
Distribution Channel Functions 330
Number of channel levels 332
Service channels 333
Diffusion of vertical marketing systems 335
Diffusion of horizontal marketing systems 338
Distribution of multi-channel marketing systems 339
Collaboration, conflicts and competition of distribution channels 339
Channel Structure Decisions 340
Identification of the main variants of channels 341
Channel management decisions 343
Selection of channel members 343
Motivating channel members 343
Evaluation of the activities of channel participants 344
Solutions for distribution problems 345
The nature of merchandising 345
Purposes of distribution 347
Order processing 349
Warehousing 350
Maintenance of inventories 351
Transportation 351
Choice of mode of transport 353
The structure of the company's goods movement management 354
Resume 355
Issues for discussion 355
Basic Concepts Encountered in Chapter 12 356
Chapter 13 Goods distribution methods: retail and wholesale 358
Retail 360
The Nature and Importance of Retail 360
Types of retail trade enterprises 362
Retailer Marketing Solutions 384
Wholesale 388
Nature and meaning wholesale trade 388
Types of wholesalers 390
Wholesaler Marketing Solutions 395
Resume 396
Issues for discussion 398
Basic Concepts Encountered in Chapter 13 398
Chapter 14
Stages of developing effective communication 404
Revealing target audience 405
Determining the desired response 405
Choice of treatment 407
Choice of media 409
The choice of properties that characterize the source of the call 412
Accounting for feedback flow 412
Development of a comprehensive promotion budget and selection of elements of the promotion complex 414
Calculation of the total budget for promotion 414
Formation of the promotion complex 417
Resume 423
Questions for discussion 424
Basic Concepts Encountered in Chapter 14 425
Chapter 15 Product promotion: advertising, sales promotion and public relations 427
Advertising 429
Setting goals 433
Budget Development Decisions 435
Advertising Appeal Decisions 435
Media Decisions 439
Advertising program evaluation 443
Sales promotion 446
Setting goals for sales promotion 447
Choice of promotional tools 447
Development of a sales promotion program 450
Preliminary testing of sales promotion program 451
Implementation of the sales promotion program 451
Evaluation of the results of the sales promotion program 452
Public Relations 452
Setting tasks for the PR department 454
Choice of means of public relations 455
Implementation of the plan for the formation of public opinion 456
Evaluation of the results of activities to form public opinion 456
Resume 457
Questions for discussion 459
Basic Concepts Encountered in Chapter 15 460
Chapter 16 Product Promotion: Personal Selling and Sales Management 461
Setting goals for the sales department of the company 466
Choice organizational structure sales services 466
Basic principles of the sales department 467
Organizational structure of the sales service of the company 467
Dimensions of the sales department of the company 469
Remuneration system for sales personnel 469
Recruitment and selection sales agents 470
The Importance of Careful Selection 470
Essential Traits of a Good Sales Agent 470
Recruitment procedure 471
Sales agent training 471
Fundamentals of the Art of Selling 472
Control over the work of sales agents 477
Sales agent orientation 477
Motivating Sales Agents 478
Evaluation of the performance of sales agents 480
Sources of information 480
Formal performance appraisal 480
Resume 482
Questions for discussion 483
Basic Concepts Encountered in Chapter 16483
Chapter 17 Interactive and direct marketing 484
What is "direct marketing" 487
The Growth and Benefits of Direct Marketing 488
Benefits of direct marketing 489
Development of direct marketing 490
Customer databases and direct marketing 491
Forms of direct marketing 495
Personal Selling 495
Direct mail 496
Catalog Marketing 498
Telemarketing 498
Immediate Response Television Marketing 499
Marketing from the video booth 500
Interactive Marketing and Ecommerce 501
The rapid development of interactive marketing 502
Electronic shopper 503
Benefits of Interactive Marketing 505
Interactive marketing channels 507
The Temptations and Challenges of Interactive Marketing 512
Integrated direct marketing 514
Public Opinion and Ethical Issues in Direct Marketing 515
Annoyance, dishonesty, cheating and cheating 515
Invasion of privacy 516
Resume 517
Questions for discussion 520
Basic Concepts Encountered in Chapter 17521
Chapter 18 Strategy, planning, control 523
Strategic planning 525
Company mission 525
Tasks and goals of the company 527
Business Portfolio Development Plan 529
Firm growth strategy 529
Marketing planning 532
Marketing plan sections 533
Marketing budget development 536
Marketing control 541
Monitoring the implementation of annual plans 541
Profit control 544
Strategic control 545
Resume 551
Questions for discussion 552
Basic Concepts Encountered in Chapter 18553
Chapter 19 International Marketing 555
Exploring the international marketing environment 558
System international trade 558
Economic environment 559
Political and legal environment 560
Cultural environment 562
Decision on the expediency of entering the foreign market 563
Deciding which markets to enter 563
Decision on methods of entering the market 564
Export 564
Joint entrepreneurial activity 565
Direct investment 567
Decision on the structure of the marketing mix 568
Product 568
Promotion 570
Price 570
Distribution channels 571
Decision on the structure of the marketing service 572
Export department 572
International branch 572
Multinational company 574
Resume 574
Issues for discussion 575
Basic Concepts Encountered in Chapter 19576
Chapter 20 Service Marketing and Non-Profit Marketing 577
Service Marketing 578
The nature and main characteristics of the service 579
Service classification 582
The scale and importance of marketing in the service sector 583
Organization Marketing 584
Assessment of the image of the organization 585
Image planning and image health 585
Individual marketing 585
Celebrity Marketing 586
Marketing of political candidates 587
Place Marketing 588
Housing marketing 588
Commercial area marketing 589
Marketing investments in land property 589
Holiday destination marketing 589
Idea Marketing 590
Resume 591
Questions for discussion 593
Basic Concepts Encountered in Chapter 20,594
Chapter 21 Marketing and Society 596
Public criticism of marketing 598
The impact of marketing on individual consumers 598
The impact of marketing on society as a whole 605
The impact of marketing on other entrepreneurs 608
Citizens' actions to regulate marketing 609
Consumerism 610
Environmental movement 611
Measures of state regulation of marketing 612
Actions of Entrepreneurs to Become Socially Responsible Marketing 613
Moral Principles of Marketing 616
Resume 619
Questions for discussion 620
Basic Concepts Encountered in Chapter 21 621
Appendix A. Marketing Arithmetic 622
Results Report economic activity 622
Calculation of analytical coefficients 626
Mark-ups and discounts from the price 629
Appendix B. Careers in Marketing 632
Job Description in Marketing 632
Advertising 633
Managing the production of conventional and branded goods 635
Working with consumers 635
Industrial Marketing 635
International Marketing 636
Specialists in organizing marketing management and systems analysis 636
Marketing Research 636
New product planning 637
Merchandising system 637
Shaping public opinion 637
Logistics 637
Control retail 638
Sales and management 638
Other Marketing Career Opportunities 638
Choosing a job and getting a place 639
Conduct a self-assessment 639
Explore job descriptions 639
Formulate the goals of your search 639
Explore the job market and evaluate its opportunities 640
Develop a search strategy 640
Prepare a brief introduction about yourself and cover letter 640
Get interview 641
Get things done 642
Index 643

Philip Kotler, Gary Armstrong, Veronica Wong, John Saunders
Marketing Basics
The authors consider key concepts marketing with new perspectives. Reflecting the latest trends in our changing world, the authors pay great attention Balanced marketing that takes into account the needs of consumers and long-term...

Philip Kotler
Fundamentals of Marketing. Short course
Marketing is one of the fundamental disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, and the like. They need to know how to describe the market...

Chapter 5
Consumer Markets and Consumer Buying Behavior
Buying behavior model. Buyer characteristics. Purchase decision process. Various options for making a decision to purchase a novelty product. Summary. Basic concepts found in the chapter.

Goals
After reading this chapter, you should be able to:

1. Describe the relationship between incentive marketing techniques and consumer response.

2. Name four main factors influencing the purchasing behavior of consumers.

3. List the steps in the consumer's purchasing decision process.

4. Describe the process of consumer perception of new products.

"Corfam" company "DuPont" -
costly trade failure

DuPont, a giant corporation headquartered in Wilmington, Delaware, was confident that its new Corfu leather for men's and women's shoes would be a success. DuPont began looking for a replacement back in the 1930s, knowing that one day genuine leather would become scarce. In 1955, the company's scientists successfully synthesized a material called "corfam" and had the necessary properties of leather raw materials: permeability, strength, elasticity and durability. In 1958, a special pilot plant was built for the production of this material in order to evaluate it by consumers. The novelty met with an enthusiastic reception from consumers, and in 1959 DuPont built a more powerful plant, which began production of Corfam in 1961. In total, the corporation invested $ 25 million in the project.

17 leading women's footwear companies and 15 leading men's footwear companies were selected and agreed to buy from DuPont new material and use it in the manufacture of shoes of elegant styles. Recognizing that Corfume has certain advantages over natural leather, such as higher durability and ease of maintenance, DuPont set a high price for the novelty. The material had to be used in the manufacture of expensive shoes, so that consumers gained confidence in its high quality. DuPont intended to enter the market of inexpensive shoes with Korfam later.

Corfam products were first introduced at the 1963 National Shoe Fair and many shoe retailers placed orders for them. DuPont has formed a dedicated Trade Assistance Brigade. Members of the brigade were supposed to visit large shoe stores and teach sellers how to trade shoes from "korfam". At the same time, the firm created point-of-sale materials, window dressing, and a nationwide advertising campaign for Corfam, which cost initial stage$2 million

DuPont was very pleased with the results. In 1964, consumers purchased 1 million pairs of Corfam shoes, in 1965 - 5 million, and in 1966 - 15 million pairs. But in 1967, sales of Korfam shoes began to decline. What happened?

The repeat purchase rate was alarmingly low. DuPont did not analyze the consumer market for shoes and the behavior of people who purchase shoes in depth, and did not take into account a number of nuances in a timely manner. For example:

3. "Corfam" was advertised as a material that does not stretch, which means that shoes made from it will always sit on the foot in the same way as it sat when it was first tried on. However, many consumers still bought slightly tight shoes in the hope that they would break.

4. Consumers chose the style first, not the material. They never developed an interest in "corfam" keen enough to ask a shop assistant to show them shoes made from this material.

5. Corfam might have been much more successful if it had been used to make cheap indoor shoes. Buyers of high-quality shoes were increasingly inclined to purchase fashionable leather shoes and boots imported from Italy and several other countries. In 1971, DuPont recognized the situation as hopeless and decided to stop the production of Corfum shoe material. One of the most expensive product failures in history cost DuPont $100 million in losses.1

The history of du Pont's Corfam suggests that there are many factors that influence people's decisions about what to buy. Buying behavior is never simple. Nevertheless, understanding it is an extremely important task for the management of the marketing service within the framework of the concept of marketing.

This chapter will examine in detail the dynamics of the consumer market.

Consumer market - individuals and households who buy or otherwise acquire goods and services for personal consumption.

In 1981, the American consumer market included 230 million people who annually consumed goods and services worth about $1.8 trillion. dollars, i.e. $7,826 per man, woman, and child. Every year this market increases its number by several million people, and its turnover - by more than $ 100 billion. It is one of the most profitable consumer markets in the world2.

Consumers differ sharply from each other in age, income and education levels, propensity to move and tastes. Market players found it expedient to isolate various groups consumers and create products and services specifically designed to meet the needs of these groups. If a market segment is large enough, some firms may develop separate marketing programs to serve that segment as well. Here are just two examples of distinct customer groups.

Negro consumers. Twenty-eight million black Americans with a combined personal income of over $100 billion are an important consumer group. According to a number of researchers, Negroes spend proportionately more than whites on clothing, personal care, household supplies, liquor, and tobacco, and proportionately less on medical care, food, transportation, education, and public utilities. Negroes are less likely than whites to "seek out" purchases and are more likely to regular customers stores and discount stores closest to the place of residence.

Blacks listen to the radio more than whites, although they are less likely to listen to stations in the VHF band. Some firms develop special marketing programs for these consumers. They advertise in Ebony and Jet magazines, recruit black performers in commercials, create clearly distinct products (such as black cosmetics), packaging, and develop special arguments. At the same time, these firms recognize that there are several sub-segments within the Negro market, each of which may require the development of a separate marketing approach3.

Adult young consumers. This market includes 30 million people aged 18 to 24 years. The market of adult young consumers is divided into three subgroups: college students, young singles, newlyweds. Young adult consumers spend disproportionately on books, records, stereos, cameras, fashion, hair dryers, personal care products and toiletries. They are characterized by a low degree of commitment to brands and an increased interest in new products. Young adults are an attractive market for several reasons: 1) they are receptive to the idea of ​​trying out new products; 2) are more inclined to spend than to save money; 3) will act as buyers for longer4.

Similarly, other submarkets—older people5, women6, Hispanic Americans7—can be explored to see if it would make sense (competitively) to develop targeted marketing programs for each of them.

1. Model of buying behavior

2. Buyer characteristics

Consumers do not make their decisions in a vacuum. Their purchases are strongly influenced by cultural, social, personal and psychological factors (see Figure 32). For the most part, these are factors beyond the control of market actors. But they must be taken into account. Let's look at the impact each of these has on shopper behavior using hypothetical consumer Betty Smith as an example.

Betty Smith is a college graduate, married, and a branded product manager for a leading consumer packaged goods firm. At the moment, she is busy looking for a new activity in her free time, an activity that would contrast with the usual working atmosphere. This need prompted Betty to buy a camera to take up photography. How she will look for a camera and how she will choose a particular brand of camera depends on many factors.

Rice. 32. Factors influencing buying behavior

3. Factors of cultural level

Cultural factors have the biggest and deepest influence on consumer behavior. Consider the role played by the culture, subculture and social position of the buyer. CULTURE. Culture is the main root cause that determines the needs and behavior of a person. Human behavior is basically an acquired thing. The child learns basic set values, perceptions, preferences, manners and actions, characteristic of his family and the main institutions of society. Thus, a child growing up in America gets acquainted or encounters the following value concepts: accomplishment and success, activity, efficiency and practicality, moving forward, material comfort, individualism, freedom, external comfort, philanthropy, youthfulness8.

Betty Smith's interest in cameras ¾ is the result of her upbringing in modern society, with its advances in photography and its attendant consumer skills and associated values. Betty knows what cameras are. She knows how to figure out the instructions for their use, and her public environment has already embraced the idea of ​​women photographers. In a different culture, say in a tribe lost in the wilderness of central Australia, the camera may mean nothing at all, but be just a “curious thing”.

SUBCULTURE. Any culture includes smaller components, or subcultures, which provide their members with the opportunity to more specifically identify and communicate with their own kind. In large communities, there are groups of people of the same nationality, say Irish, Poles, Italians or Puerto Ricans, showing clear ethnic tastes and interests. Separate subcultures with their specific preferences and prohibitions are religious groups, such as groups of Catholics, Mormons, Presbyterians, Jews. Clearly defined cultural inclinations and attitudes characterize racial groups, say blacks and Orientals. Geographical regions, such as the states of the Far South, California, the states of New England, have their own distinct subcultures with their own specific way of life in each individual case. Box 10 provides some examples of the influence of geographic location on product selection patterns.

Betty Smith's interest in various products will certainly be affected by her nationality, race, religion and geographical environment. These factors will influence her choice of food, clothing, recreation and entertainment, career goals. The subculture to which she belongs will also affect her interest in cameras. Different subcultures place different emphasis on photography, and this can also influence Betty's interest.

SOCIAL STATUS. In almost every society there are various social classes, which we define as follows:

Social classes are relatively stable groups within society, located in a hierarchical order and characterized by the presence of their members of similar value ideas, interests and behavior.

Sociologists distinguish six social classes in the United States, presented in Table. 7.

Table 8
Life cycle stages and family purchasing behavior

Life cycle stage	Features of behavior and buying habits
1. Single life stage: young singles living separately from their parents	There are few financial burdens. Opinion leaders in the field of fashion. Ready for an active holiday. Buyers of basic kitchen equipment, basic furniture, cars, mating supplies, vacation packages.
2. Young newlyweds without children	The financial situation is better than it will be in the near future. The highest intensity of purchases, the highest average purchases of durable goods. Buyers of cars, refrigerators, stoves, basic and durable furniture, vacation packages.
3. "Full nest", 1st stage; younger child less than 6 years	Peak home buying. Working capital is low. Dissatisfaction with their financial situation and the amount of money saved. Interest in new products. Fans of advertised goods. Buyers of washing machines, dryers, televisions, baby food, cough medicines, vitamins, dolls, strollers, sleds, skates.
4. "Full Nest" Stage 2: Youngest child 6 or older	The financial situation has improved. Some wives work. Advertising has less impact. They buy goods in larger packaging, conclude deals for the purchase of many commodity units at once. Buyers of a variety of food, cleaning supplies, bicycles, music teachers, pianos.
5. "Full Nest" Stage 3: Elderly spouses with children in their care	The financial situation has become even better. More women work. Some children get jobs. Advertising has very little effect. High average intensity of purchases of durable goods. Buyers of new, sleeker furniture, road trippers, buyers of non-essential appliances, boats, dentistry, magazines.
6. "Empty nest", 1st stage: elderly spouses, whose children already live separately, the head of the family works	The largest number of owners of their own homes. Most are satisfied with their financial situation and savings. Interested in travel, active recreation, self-education. Make gifts and charitable contributions. Not interested in new products. Buyers of vacation packages, luxury goods, services and home improvement products.
7. "Empty Nest" Stage 2: Elderly spouses with children living separately, retired head of household	Sharp decline in income. Mostly dwellings are preserved. Buyers of medical devices, medical products that promote health, sleep and digestion.
8. Dowager, working	The income is still quite high, but the house is already inclined to sell.
9. Dowager, retired	The needs for medical care and goods are the same as for other groups of pensioners. Sharp decline in income. Acute need for attention, affection and well-being.

OCCUPATION. A certain influence on the nature of goods and services acquired by a person is exerted by his occupation. The worker can buy work clothes, work shoes, lunch boxes, bowling equipment. The president of the firm can buy expensive blue serge suits, travel by plane, join privileged country clubs, buy himself a big sailboat. The marketer seeks to identify such occupational groups whose members show an increased interest in his goods and services. The firm may even specialize in the production of goods needed by a particular professional group.

ECONOMIC SITUATION. The economic position of the individual to a large extent affects his choice of goods. It is determined by the size of the expenditure side of income, the size of savings and assets, creditworthiness and views on spending funds as opposed to their accumulation. So, if Betty Smith has a large enough expenditure side of her income and savings, is creditworthy and prefers to spend rather than save, she may consider purchasing an expensive Nikon camera. Marketers who offer products whose sale depends on the level of consumers' income must constantly monitor trends in personal income, savings and discount rates. If a economic indicators talk about a downturn, the marketer must take steps to redesign, reposition, and price their product, reduce production and inventory, and do whatever it takes to protect themselves financially.

LIFESTYLE. Individuals belonging to the same subculture, the same social class, and even the same occupation can lead very different lifestyles. Betty Smith, for example, may prefer the life of a skilled housewife, a business woman, or a carefree person. She plays multiple roles, and how she combines them is the outer side of her lifestyle. If she becomes professional photographer, this will further affect her lifestyle.

Way of life ¾ established forms of a person's being in the world, which are expressed in his activities, interests and beliefs.

Lifestyle paints a "comprehensive portrait" of a person in his interaction with the environment. It reveals more than the fact of belonging to a certain social class or personality type. Knowing that a person belongs to a particular social class, we are ready to draw certain conclusions about his intended behavior, but we will not be able to imagine him as an individual. Knowing a person's personality type, we can draw certain conclusions about his distinctive psychological characteristics, but we are unlikely to learn much about his activities, interests and beliefs. And only a way of life will draw us an exhaustive portrait of a person in his actions and interaction with the outside world.

In developing a marketing strategy for a product, the marketer will seek to uncover the relationship between a generic or branded product and a particular lifestyle. A yogurt manufacturer may find that among the active consumers of his drink there are many successful men of liberal professions. By figuring this out, he can more clearly target his branded product to these people.

PERSONALITY TYPE AND IMAGE OF YOURSELF. Each person has a very specific personality type that influences his buying behavior.

Personality type - a set of distinctive psychological characteristics of a person, providing relative consistency and constancy of his responses to the environment.

Personality type is usually described on the basis of such inherent traits of an individual as:

self-confidence,

influence,

independence,

impermanence,

respectfulness,

lust for power

sociability,

alertness,

attachment,

aggressiveness,

consistency,

striving for success

love for order

adaptability 12.

Knowledge of personality type can be useful in the analysis of consumer behavior when there is a certain relationship between personality types and the choice of products or brands. For example, a beer company may find that many active beer drinkers are more outgoing and aggressive. And this suggests the possible image of the brand of its beer and the types of characters for use in advertising.

Many marketers base their activities on an idea that is directly related to the person, ¾ of a person's idea of ​​\u200b\u200bthemselves (also called self-image). We all have complex mental images of ourselves. For example, Betty Smith may appear to be extroverted, creative, and active. Based on this, she will prefer to opt for a camera in which the same qualities are focused. And if Nikon is advertised as a camera for outward-looking, creative and active people, the image of the brand coincides with the image of Betty's own self. Market actors should strive to create an image of the world that corresponds to the images of their own "I" of the members of the target market 13.
6. Psychological factors

Four main psychological factors also affect the purchasing choice of an individual: motivation, perception, learning, beliefs and attitudes.

MOTIVATION. We know that Betty Smith is interested in buying a camera. But why? What is she really looking for? What need is it trying to satisfy?

At any given moment in time, a person experiences many different needs. Some of them are of a biogenic nature, i.e. are the consequences of such states of internal physiological tension as hunger, thirst, discomfort. Others are psychogenic, i.e. are the results of such states of internal psychological tension as the need for recognition, respect, spiritual intimacy. Most of these needs are not intense enough to motivate a person to take action at any given time. A need that has reached enough high level intensity, becomes a motive.

Motive (or motivation) is a need that has become so urgent that it forces a person to look for ways and means to satisfy it.

Satisfaction of need reduces the internal tension experienced by the individual.

Psychologists have developed a number of theories of human motivation. The most popular of these, Sigmund Freud's ¾ theory and Abraham Maslow's ¾ theory, offer very different implications for consumer research and marketing activities.

Freud's theory of motivation. Freud believed that people are basically unaware of the real psychological forces that shape their behavior, that a person grows while suppressing many drives in himself. These cravings never completely disappear and are never completely controlled. They manifest themselves in dreams, slips of the tongue, neurotic behavior, obsessions, and eventually psychosis, in which the human "ego" is unable to balance the powerful impulses of its own "id" with the oppression of the "super-ego".

Thus, a person is not fully aware of the origins of his own motivation. If Betty Smith wants to buy an expensive camera, she may describe her motive as a desire to satisfy her hobby or career needs. If you look deeper, it may turn out that by buying such a camera she wants to impress others with her creative abilities. And if you look even deeper, she may be buying a camera to feel young and independent again.

When studying the camera, Betty will react not only to its operational properties, but also to other small stimuli. The shape of the camera, its dimensions, weight, material from which it is made, color, case ¾ all this evokes certain emotions. A camera that gives the impression of solidity and reliability can arouse in Betty a desire to be independent, which she will either cope with or try to avoid it. When designing a chamber, the manufacturer must be aware of the impact of its appearance and invoices to excite the consumer's emotions, which are able to either facilitate or hinder the purchase.

Motivation researchers have made a number of interesting, and sometimes strange, conclusions about what can influence the consumer's mind when making certain purchases. So, they think that:

Consumers resist buying prunes because they are shriveled and look like old people.

Men smoke cigars as an adult alternative to thumb sucking. They like cigars with a strong smell that emphasizes their masculinity.

Women prefer vegetable fat to animal fats, which make them feel guilty about slaughtered animals.

A woman takes the process of baking cupcakes very seriously, because for her it is subconsciously associated with the process of childbirth. She doesn't like easy-to-use cake mixes, as the easy life makes her feel guilty.

Maslow's theory of motivation. Abraham Maslow tried to explain why people have different needs at different times. Why does one person spend a lot of time and energy on self-preservation, and the other ¾ on gaining the respect of others? The scientist believes that human needs are arranged in order of hierarchical importance from the most to the least urgent. The hierarchy developed by Maslow is presented in fig. 33. In order of importance, the needs are arranged in the following order: physiological needs, self-preservation needs, social needs, respect needs and self-affirmation needs. A person will strive to satisfy the most important needs first. As soon as he manages to satisfy some important need, it ceases to be a driving motive for a while. At the same time, there is an incentive to satisfy the next most important need.

For example, a starving person (need No. 1) is not interested in what is happening in the art world (need No. 5), nor in how they are looked at and to what extent others respect him (needs No. 3 and No. 4), nor in pure whether he breathes air (need No. 2). But as the next most important need is satisfied, the next one comes to the fore.

What light does Maslow's theory shed on Betty Smith's interest in buying a camera? One can guess that Betty has already satisfied her physiological needs, self-preservation needs and social needs that do not motivate her interest in cameras. And interest in the camera may stem either from a strong need for respect from others, or from a need for self-assertion. Betty wants to realize her creative potential and express herself through photography.

Rice. 33. Hierarchy of needs according to Maslow

PERCEPTION. A motivated person is ready for action. The nature of his action depends on how he (or she) perceives the situation. Two different people, being equally motivated, in the same objective situation can act differently, because they perceive this situation differently. Betty Smith may perceive a talkative camera salesman as aggressive and insincere. And to some other buyer, the same seller may seem smart and helpful.

Why do people perceive the same situation differently? We all know the stimulus through sensations, i.e. thanks to the flow of information that affects our five senses: sight, hearing, smell, touch and taste. However, each of us organizes and interprets this sensory information in our own way.

Perception can be defined as “the process by which an individual selects, organizes and interprets incoming information to create a meaningful picture of the world around”15.

Perception depends not only on the nature of physical stimuli, but also on the relationship of these stimuli to the environment and the individual.

People can differ in different reactions to the same stimulus due to selective perception, selective distortion and selective memorization.

selective perception. Every day, people are faced with a huge number of irritants. So, the average person can come into contact with more than 1500 advertisements in one way or another during the day. The individual is simply unable to respond to all these stimuli. He eliminates most of them. The main difficulty lies in explaining exactly which stimuli will be noticed.

I. People are more likely to notice stimuli related to their current needs. Betty Smith will see all kinds of camera ads because she is interested in buying a camera. But she will probably not notice advertisements for stereo equipment.

2. People are more likely to notice the stimuli they expect. In a camera store, Betty Smith will notice cameras rather than nearby radios, because she didn't expect the store to also sell radios.

3. People are more likely to notice stimuli that differ sharply in some of their values ​​from the usual ones. And Betty Smith is more likely to notice an ad offering a $100 discount off the list price for a Nikon camera than an ad offering a $5 discount.

The selective nature of perception means that marketers must make special efforts to capture the attention of consumers. After all, their appeal will pass by the majority of those who are not currently looking for this subject of advertising on the market. But even seekers may not notice the conversion unless it stands out from the surrounding sea of ​​irritants. Advertisements are noticed more quickly if they are larger in size, if they are in color, while most of the rest are black and white if they are presented in a new way and contrast with the rest.

selective distortion. Even the irritants seen by the consumer are not necessarily perceived by him in the way that the sender intended. Each person seeks to fit the incoming information into the framework of his existing opinions. By selective distortion, we mean the tendency of people to transform information, giving it personal significance. For example, Betty Smith may hear a salesperson mention the positives or negatives of a competitor's camera. And since she is already strongly predisposed to Nikon, she will most likely distort what she heard in order to once again conclude for herself the superiority of Nikon. People tend to interpret information in a way that supports rather than challenges their established ideas and judgments.

Selective memory. Much of what he learns, a person simply forgets. He tends to remember only information that supports his attitudes and beliefs. Due to the selectivity of memory, Betty is more likely to remember the favorable reviews of the Nikon and forget the favorable reviews of competing cameras. And she will remember these reviews because most often she “crams” them, thinking about choosing a camera.

The presence of these three features - selectivity of perception, distortion and memorization - means that market actors need to make a lot of efforts to bring their message to the addressees. This is precisely why firms resort so extensively to dramatization and repetition when sending their messages to the markets.

ASSOCIATION. A person acquires knowledge in the process of activity.

Assimilation is certain changes that occur in the behavior of an individual under the influence of experience accumulated by him.

Human behavior is basically acquired, i.e. learned. Theorists consider learning to be the result of the interaction of drives, strong and weak stimuli, responses, and reinforcement.

We know that Betty Smith has a strong drive to assert herself. Motivation refers to a strong internal stimulus that pushes to perform an action. Being directed to a specific object ¾ of the stimulus, capable of relieving emotional tension (in our case, this is a camera), the urge turns into a motive. Betty's response to the idea of ​​buying a camera is conditioned by the presence of a number of accompanying small stimuli. They determine when, where and how the response of the individual is manifested. The sight of cameras in a store window, the rumor of a discounted sale price, the encouragement from her husband¾ are all minor stimuli that affect Betty's response to the impulse to buy a camera.

Suppose Betty bought a camera. If the user experience rewards her expectations, she is likely to use her camera more and more intensively. Her reaction to the camera will be reinforced.

Later, Betty might want to buy binoculars. In her field of vision are several brands, including Nikon binoculars. Because Betty knows what Nikon is doing good cameras, then comes to the conclusion that the company also makes good binoculars. She generalizes by extending her previous response to a new set of similar stimuli.

The opposite of the process of generalization is the process of making distinctions. Betty discovers that Olympus binoculars are lighter and more compact than Nikon binoculars. Difference means that she has learned to recognize differences in sets of stimuli and can make appropriate changes in her response.

BELIEFS AND RELATIONSHIPS. Through action and assimilation, a person acquires beliefs and attitudes. And they, in turn, influence its purchasing behavior.

Betty Smith may be convinced that a Nikon camera can take great pictures, handle harsh conditions well, and cost $550. These beliefs can be based on real knowledge, opinions, or just faith. They may or may not be accompanied by an emotional charge. So, for example, Betty Smith's belief that a Nikon camera is heavy may or may not influence her buying decision.

Manufacturers are naturally very interested in people's beliefs about particular products and services. From these beliefs, images of products and brands are formed. Based on these beliefs, people take action. If some beliefs are wrong and prevent the purchase, the manufacturer will need to conduct an appropriate campaign to correct them.

To almost everything in the world - to religion, politics, clothing, music, food, etc. ¾ a person has his own attitude.

Attitude ¾ formed on the basis of existing knowledge, a stable favorable or unfavorable assessment by an individual of any object or idea, feelings towards them and the direction of possible actions17.

Relationships make people willing to like or dislike an object, feel closer to it or away from it. For example, Betty might form relationships like "Buy only the best," "The Japanese make the best products in the world," and "The most important thing in life is creativity and self-expression." That is why the Nikon camera is important to her. After all, he fits well into the framework of her pre-existing relationship. A firm can greatly benefit by exploring the various relationships that affect the sale of its product in one way or another.

Relationships allow an individual to behave relatively stably in relation to objects similar to each other. A person does not have to reinterpret something and react in a new way each time. Relationships save physical and mental energy. That is why they are difficult to change. The various relationships of the individual form a logically coherent structure in which a change in one element may require a complex restructuring of a number of others.

So it will be more profitable for the firm to bring its products into the framework of existing relationships than to try to change them. There are, of course, exceptions where the huge investment in relationship change efforts can pay off handsomely.

When Honda entered the American motorcycle market, it had to make a serious decision. She could either sell her motorcycles to a small circle of already existing amateurs, or try to increase their number. The latter path was fraught with high costs, because many experienced a negative attitude towards motorcycles. In the minds of these people, motorcycles were associated with black leather jackets, spring-loaded knives, and crime. And yet, Honda chose the second path, launching a powerful campaign under the slogan "Honda motorcycles are ridden by the most beautiful people." The campaign worked and many changed their minds about motorcycles.

We are now in a position to assess the many forces that influence consumer behavior. An individual's choice is the result of a complex interplay of cultural, social, personal and psychological factors. Many of these factors are beyond the control of the marketer. However, they are useful for identifying buyers with increased interest in the product. Other factors are under the influence of the marketer and tell him how to develop and evaluate a product, arrange its distribution and sales promotion in order to generate the strongest response from consumers.

7. Purchasing decision process

Now we are ready to consider the stages that the buyer overcomes on the way to making a purchase decision and making it. On fig. 34 shows five stages through which the consumer goes: awareness of the problem, search for information, evaluation of options, decision to purchase, reaction to the purchase. It follows from this model that the process of buying begins long before the act of sale and purchase, and its consequences are manifested for a long time after the act. The model aims the market actor to pay attention to the process as a whole, and not just to the decision-making stage18.

Rice. 34. Purchasing decision process

Judging by the model, the consumer overcomes all five stages with any purchase. However, when making everyday purchases, he skips some stages or changes their sequence. Thus, a woman who purchases a brand of toothpaste familiar to herself, after realizing the problem, immediately makes a purchase decision, skipping the stages of collecting information and evaluating options. However, we will still operate with the complete model shown in Fig. 34, because it reflects all the considerations that arise when the consumer is faced with a new situation for himself, especially if there are many problems to solve.

We will follow the actions of Betty Smith and try to understand how she became interested in buying an expensive camera and what stages she went through before the final choice.

8. Awareness of the problem

The buying process begins with the buyer recognizing a problem or need. He feels the difference between his real and desired state. Need can be aroused by internal stimuli. One of the usual human needs ¾ hunger, thirst, sex ¾ rises to a threshold level and turns into an impulse. From past experience, a person knows how to cope with this impulse, and his motivation is oriented towards the class of objects that are able to satisfy the impulse that has arisen.

The need can also be aroused by external stimuli. A woman walks past a bakery and the sight of freshly baked bread makes her feel hungry. She marvels at her neighbor's new car or watches a TV commercial for a Jamaica vacation. All this can lead her to the realization of a problem or need.

At this stage, the marketer needs to identify the circumstances that usually push a person to realize the problem. It is necessary to find out: a) what kind of tangible needs or problems arose, b) what caused their occurrence, c) how they brought a person to a particular product.

Betty Smith may respond that she felt the need for a new hobby. It happened during a quiet period at work, and she started thinking about the camera after one of her friends told her about photography. By collecting such information, the marketer is able to identify stimuli that more often than others attract the individual's interest in the product. After that, marketing plans can be developed using the identified stimuli.

9. Finding information

An excited consumer may or may not be looking for additional information. If the urge is strong and the product to satisfy it is readily available, the consumer is more likely to make a purchase. If not, then the need may simply be deposited in his memory. At the same time, the consumer can either stop searching for information, or search a little more, or engage in active search.

Rice. 35. The sequence of kits involved in the process of making a purchase decision

In a practical sense, the firm must develop a marketing mix that would place its brand in both the awareness and consumer choice bundles. If the brand fails to penetrate these sets, the company will miss the opportunity to sell its product. It is also necessary to find out what other brands are included in the selection kit in order to know your competitors and develop an appropriate argument.

With regard to the sources of information used by consumers, the marketer must carefully identify them, and then determine their comparative information value. First of all, consumers should be asked how they first heard about the brand, what other information they have, what importance they attach to each of the sources of information used. This kind of information will be critical in developing effective communication with your target market.

10. Evaluation of options

We already know that the consumer uses the information to create a set of stamps from which the final choice is made. The question is how exactly the choice is made among several alternative brands, how the consumer evaluates the information.

A few basic concepts will help us shed light on the evaluation of options. First, there is the concept of product properties. We believe that every consumer views any given product as a particular set of properties. Here are some properties that are of interest to buyers in a number of well-known classes of goods:

Rice. 36. Factors that inhibit the transformation of the intention to make a purchase into a decision to buy it

The first factor is the attitude of other people. Suppose Betty Smith's husband insists that she buy the cheapest camera to save money. As a result, the probability of buying the more expensive of the cameras chosen by Betty will decrease somewhat. The degree of change depends on two factors: 1) the intensity of the other person's negative attitude towards the consumer's preferred option, and 2) the consumer's willingness to accept the other person's wishes23. The sharper the negative or positive mood of another person and the closer this person is to the consumer, the more decisively he will reconsider his intention to make a purchase in one direction or another.

11. Purchase reaction

Having bought a product, the consumer will either be satisfied or dissatisfied with it. He will show a number of reactions to the purchase, which are of interest to the marketer. The work of a marketing person does not end with the act of buying, but continues into the after-sales period.

SATISFACTION WITH PURCHASE. What determines the degree of satisfaction or dissatisfaction of the consumer with a perfect purchase? The answer lies in the relationship between consumer expectations and perceived product performance24. If the product meets expectations, the consumer is satisfied; if it exceeds ¾, the consumer is very satisfied; if it does not meet them, ¾ the consumer is dissatisfied.

Consumer expectations are formed on the basis of information received by them from sellers, friends and other sources. If the seller exaggerates the performance of the product, the consumer will have too high expectations, which will result in disappointment. The greater the gap between expected and actual performance, the greater the consumer dissatisfaction.

It follows that the seller must make such claims in favor of the goods that would faithfully reflect its likely performance properties. Some sellers may even underestimate these properties to some extent so that the consumer can get more satisfaction from the product than expected.

ACTIONS AFTER PURCHASE. Satisfaction or dissatisfaction with the product will affect the subsequent behavior of the consumer. If satisfied, he will probably buy the product at the next opportunity. In addition, a satisfied consumer tends to share favorable product reviews with other people. To use the words of market leaders: "Our best advertisement is a satisfied customer."

A dissatisfied consumer reacts differently. He may refuse to use the item, return it to the seller, or try to find some favorable information about the item being purchased. In the case of Betty Smith, she can either return the camera, or try to find information that will elevate the purchased camera in her eyes.

Disgruntled consumers have a choice of action or inaction. They can file a complaint with the firm, contact a lawyer, or contact groups that may be able to help the buyer achieve satisfaction. In addition, he may simply stop purchasing this product in the future and / or express his unfavorable impression of him to friends and others. In all these cases, the seller who fails to satisfy the customer loses something.

FINAL FATE OF THE PURCHASED GOODS. In the behavior of the buyer after the purchase, the market agent must be interested in one more step, namely: what will the consumer finally do with his product? The main directions of possible actions are presented in fig. 37. If the consumer adapts the goods for use in some new purposes, the seller should be interested, since these purposes can be beaten in advertising. If consumers stock up on a product, barely use it, or get rid of it, this means that the product is not very satisfying to them, and that favorable word of mouth in its favor will not be very active. Equally interesting is how the consumer ends up getting rid of the product. If he sells it or trades with it, this will reduce the sales of new goods. With all this in mind, the salesperson needs to study how the product is used and how it is disposed of in order to find answers to potential problems and opportunities.

Understanding the needs of the consumer and the buying process is the foundation of successful marketing. By understanding how consumers go through the stages of problem awareness, information seeking, evaluation of options, and purchase decision, as well as their reactions to a purchase, a marketer can gather a lot of information about how best to meet the needs of their customers. By understanding the various participants in the buying process and understanding what is the main influence on their purchasing behavior, the marketer can develop an effective marketing program in support of their attractive offer to the target market.

Rice. 37. How consumers use or dispose of a product

Box 12. What makes a restaurant successful?

When opening a restaurant, you probably want to attract as many visitors as possible to it. Along with the development of the menu, your main concerns will inevitably be the problems of the location of the institution and the level of prices. It can be assumed, that best place will be as close as possible to potential customers, and the lowest prices will attract the largest number of visitors. A psychologist recently conducted a study to find out how people choose restaurants.

Contrary to what you might expect, people who dine out tend to stop at restaurants that you still have to get to. So, residents of the northwestern part of New York are sure that the best restaurants are located in the central part of the city, in Greenwich Village. Many residents of Greenwich Village believe that the best food is served in restaurants in the northeast part of the city. And residents of the northeastern part often prefer to dine in restaurants in the northwestern part of the city. Residents of cities in different parts of the country, such as Miami, Dallas and Los Angeles, unanimously declare that the best restaurants are not in their cities, but somewhere else.

Location is important in another way as well. As soon as a restaurant becomes popular, people start to believe that other establishments in the neighborhood should also be good. So restaurants located close to each other benefit from the success of their neighbors.

The study also touched upon the question of how people choose restaurants, heading somewhere for completely different reasons. In particular, special attention was focused on theater goers, who often dine out before a performance. In such situations, the most an important factor determining the choice of the restaurant was the price. Contrary to conventional wisdom, the most attractive restaurants for theater-goers were not high or low, but with moderate mid-level prices. This category of visitors prefers to avoid restaurants with high prices for fear that the feast will be too complicated or the dinner will be too plentiful, and as a result they may be late for the theater or fall asleep during the performance. A restaurant with low prices, according to theatergoers, can spoil their mood for the whole evening. And so, in order to be economical after buying expensive tickets, eat well without overeating, and stay in high spirits, they go to a restaurant with reasonable prices. Important for theatergoers and the location of the restaurant. Since they are constantly worried about being late for the show, the proximity to the theater makes the restaurant a better choice.

The influence of the location of the restaurant and the level of its prices does not always affect directly. Some remoteness can even play into the hands of the restaurant in cases where dinner should be the main event of the evening, or, conversely, play against the restaurant when the food simply precedes some other activity. Low prices can also be a negative factor when they seem to belittle the joyful elation of the event. Depending on the circumstances, people are guided by various considerations when deciding whether or not to become regular visitors to a particular restaurant.

12. Different options for making a decision to buy a novelty product

And now we will look at how buyers approach the purchase of new products. By "new" we mean a product, service or idea that is part of potential clients perceived as something new. A novelty product may have been on the market for some time, but you and I are interested in how consumers first learn about it and decide whether it is worth adopting. In this case, we mean by perception “the thought process through which an individual goes from the moment he first hears about a novelty to the moment he finally accepts it”25. We define perception as an individual's decision to become a regular user of a product.

13. Stages of the process of perception

The process of perception of a novelty product consists of five stages:

1. Awareness. The consumer learns about the new product, but does not have enough information about it.

2. Interest. The consumer is stimulated to search for information and novelty.

3. Evaluation. The consumer decides whether it makes sense to try out the new product.

4. Sample. The consumer will try out the new product on a small scale to get a better idea of ​​its value.

5. Perception. The consumer decides to regularly and fully use the novelty.

It follows from all this that the person who proposes a novelty should think about how to lead people from stage to stage. The manufacturer of electric dishwashers may find that many consumers are in the stage of interest, not moving on to the next due to doubt and the high cost of the unit. However, those same customers will be willing to test drive a car for a small fee. The manufacturer should provide a plan for testing the machine with the subsequent possibility of purchasing it at the request of the consumer.

Individual differences of people

ready to embrace innovation

People differ markedly from each other in their willingness to try new products. Susceptibility to the new ¾ is "the degree of comparative advance by an individual of other members of his social system in the perception of new ideas." Every product line will have its pioneers and early adopters. Some women are the first to embrace new fashions in clothing or new appliances such as microwave ovens. Some doctors are the first to prescribe new medicines26, some farmers are the first to embrace new agricultural practices27.

Other people perceive novelties much later. All this made it possible to classify people according to their degree of susceptibility (see Fig. 38). After a slow start, more people are beginning to embrace the novelty. Over time, their number reaches a peak value, and then the percentage begins to decrease as the number of those who have not yet accepted the product decreases. The first 2.5% of buyers are considered innovators, the next 13.5% are considered early adopters, and so on.

Rice. 38. Categories of consumers by time

their perception of novelties

Rogers sees differences between the individuals who make up these five groups. Innovators are risk averse. They try new things, taking a little risk. Early adopters are ¾ opinion leaders in their environment and embrace new ideas quite early, albeit with caution. The early majority ¾ people are prudent. They perceive innovations earlier than the average resident, but they are rarely leaders. The belated majority are skeptical. These people perceive the novelty only after it has already been tested by the majority. And finally, the lagging ¾ are people bound by tradition. They are suspicious of change, socialize with other traditionalists, and embrace novelty only because it has become something of a tradition.

14. The role of personal influence

Personal influence plays an important role in the process of perception of new products. Personal influence refers to the effect that one person's claims about a product have on another person's attitudes or likelihood of making a purchase. Katz and Lazarfeld write:

About half of the women in our sample reported that they had recently partly switched from their usual conventional or branded product to something new. The fact that one-third of these changes involved personal influence suggests that marketing advice is pretty common. Women are interested in each other's opinion about new products, the quality of different brands, savings when shopping, etc.28

Although personal influence is an important factor in general, it takes on special significance in some situations and for some people. With regard to novelty, personal influence is most significant at the evaluation stage. It makes more of an impression on later followers than on early ones. In risk situations, it is more effective than in safe situations.

15. Influence of product characteristics on the rate of its perception

The nature of innovation affects the pace of its acceptance. Some products catch on overnight (such as Frisbee flying discs), while others take a long time to catch on (such as diesel-powered cars). The rate of acceptance of a novelty is especially affected by five of its characteristics. Consider them on the example of personal computers for use in everyday life.

The first characteristic of the novelty is comparative advantage, i.e. the degree of its apparent superiority over existing goods. The higher the perceived benefits of using personal computers, say in income tax calculations or financial accounting, the sooner these computers will be accepted.

The second characteristic of the novelty is ¾ compatibility, i.e. degree of conformity with accepted consumer values ​​and consumer experience. Personal computers, for example, are perfectly compatible with the lifestyle of upper-middle class families.

The third characteristic of the novelty is complexity, i.e. the degree of relative difficulty in understanding its essence and use. Personal computers are complex, and therefore it will take quite a long time for them to penetrate the US domestic market.

The fourth characteristic of the novelty is the divisibility of the process of getting to know it, i.e. the possibility of testing it on a limited scale. If people have the option to rent personal computers and then buy the option of their choice, the rate of adoption will increase.

The fifth characteristic of the novelty is communication clarity, i.e. the degree of visibility or the ability to describe to others the results of its use. Since personal computers are amenable to demonstration and description, this will contribute to their faster dissemination in society.

Among other characteristics of a novelty that affect the rate of its acceptance are ¾ the initial price, current costs, the share of risk and uncertainty, scientific reliability and public approval. The new product vendor must study all these factors, giving the key ones maximum attention during the development stages of both the new product and its marketing program.

16. Summary

Before developing marketing plans, you need to understand the markets. In the consumer market, goods and services are bought for personal consumption. This market consists of many sub-markets, such as the sub-market of Negro consumers, the sub-market of adult young consumers, the sub-market of older people.

Buyer behavior is influenced by four main groups of factors: cultural factors (culture, subculture and social position), social order factors (reference groups, family, roles and statuses), personal order factors (age and stage of the family life cycle, occupation, economic status, lifestyle, personality type and self-image) and psychological factors (motivation, perception, learning, beliefs and attitudes). All of them give an idea of ​​how to reach and serve the customer more effectively.

Before planning its marketing, a firm needs to identify all target customers and determine how they go through the process of making a purchase decision, which consists of the following stages: awareness of the problem, search for information, evaluation of options, purchase decision, reaction to purchase. The task of the marketer is to understand the various participants in the buying process and understand the main factors influencing buying behavior. This understanding allows the marketer to create a meaningful and effective marketing program for his target market.

17. Questions for discussion

2. Describe the impact of cultural factors (culture, subculture and social status) on consumer choice of department stores for shopping.

3. Describe the levels of need in Maslow's hierarchy that the following products are designed to satisfy: a) smoke detectors, b) automatic long distance telephone service, c) insurance, and d) autogenic training.

4. A consumer who chooses a supermarket for everyday shopping is at the stage of evaluating options. What factors do you think will be most important for most consumers when choosing a supermarket (name three factors in descending order of importance)?

5. Given the task of developing a model of consumer behavior, what variables and/or relationships would you include in it, in addition to those discussed in this chapter?

6. Relate the steps in the buying decision process to your recent purchase of a pair of shoes.

7. What is the purpose of the purchase reaction stage in the purchase process model? 18. Basic concepts found in chapter 5

Perception is the process by which an individual selects, organizes, and interprets incoming information to create a meaningful picture of the world around him.

Motive is a need that has become so urgent that it forces a person to look for ways and means to satisfy it.

Lifestyle - established forms of human being in the world, which are expressed in his activities, interests and beliefs.

Social classes are relatively stable groups within society, located in a hierarchical order and characterized by the presence of similar values, interests and behavior among their members.

Attitude - a stable favorable or unfavorable assessment by an individual of an object or idea, feelings towards them and the direction of possible actions that have developed on the basis of existing knowledge.

Consumer Market - Individuals or households that buy or otherwise acquire goods and services for personal consumption.

Reference group - a group that has a direct (i.e. through personal contact) or indirect influence on a person's attitudes or behavior.

Personality type is a set of distinctive psychological characteristics of a person that ensures the relative consistency and constancy of his responses to the environment.

Belief - a mental characteristic of an individual of something.

Assimilation is certain changes that occur in the behavior of an individual under the influence of the experience he has accumulated.

Freud singled out three components in the mental structure of the personality: the unconscious "id" (It) - the area of ​​\u200b\u200bdrives, blind instincts; conscious "ego" (I) - perceiving information about the surrounding world and the state of the body, restraining impulses "id", regulating the actions of the individual; "Super-ego" (Super-I) - the area of ​​social norms and moral attitudes. - Approx. Ed.

Introduction

In today's complex world, we all need to understand marketing. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we're marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.

We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the marketing methods used. Knowing marketing allows us to be smarter as consumers, whether it's buying toothpaste, a frozen pizza, a personal computer, or a new car.

Marketing is one of the fundamental disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, and the like. They need to know how to describe the market and break it down into segments; how to assess the needs, requests and preferences of consumers within the target market; how to design and test a product with the consumer properties necessary for this market; how to convey to the consumer the idea of ​​\u200b\u200bthe value of the product through the price; how to choose skilled intermediaries so that the product is accessible and well presented; how to advertise a product so that consumers know it and want to buy it. A professional marketer must, no doubt, have an extensive set of knowledge and skills.

Those who wish to study marketing can find many books on the subject. But even the thickest textbooks barely skim the surface of this science, because there is a huge amount of information to know about every marketing tool. Newcomers to the study of marketing need a very general understanding of its basics, so as not to drown in a sea of ​​specific details. It is from the standpoint of this approach that the proposed book "Fundamentals of Marketing. A Short Course" was written.

However, the book "Fundamentals of Marketing. A Short Course" should not be viewed as just a general digression. The topic is too exciting to be limited to its schematic representation. The book provides case studies that illustrate the drama of modern marketing: the failure of the CBS cable television system; the never-ending confrontation between Coca-Cola and Pepsi-Cola; rise in the beer market of the company "Miller" from seventh to second place; the impact of Avon female salespeople on home shopping; a long-term campaign by Columbia Records to promote the Man at Work Orchestra; price war in the home computer market, etc. Each chapter begins with a description of some significant event in the field of marketing. Real-life examples throughout each chapter fill the bare bones of marketing with the pulse of life.

When writing the book, I was guided by several principles. It should be interesting to read. It should cover all the main points that both the market leader and the ordinary citizen need to know. The narrative should develop logically from chapter to chapter. The presentation should be based on scientific research data, and not on rumors and conjectures, and be focused on management problems. My goal is to prepare the reader to make better marketing decisions.

Philip Kotpler

Means to facilitate the assimilation of the material

The book uses many special techniques designed to make it easier for students to learn marketing. Here are the main ones.

Statement of goals. To prepare for the perception of the material, each chapter is preceded by a statement of its goals.

Initial screensaver. Each chapter begins with a short story from the practice of marketing, leading to the main material.

Numerical data, tables. The main provisions and principles discussed in the book are illustrated.

Inserts. Additional examples and other interesting information are provided throughout the book.

Summary. Each chapter ends with a brief recapitulation of the main provisions and principles set forth in it.

Issues for discussion. Each chapter is provided with a selection of questions covering the entire volume of the material presented in it.

Basic concepts. Definitions of new concepts are given at the end of each chapter.

Applications. Two appendices, Marketing Arithmetic and Marketing Careers, provide additional material of practical interest.

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