UNIT - 1

Marketing is a fundamental aspect of any business strategy, encompassing various

activities aimed at promoting, selling, and distributing products or services to meet
consumer needs and achieve organizational goals. Here's an overview of the concept,
nature, scope, and importance of marketing:

Concept of Marketing:

At its core, marketing is about understanding customers' needs and wants and
satisfying them profitably. It involves creating value for customers by offering
products or services that meet their requirements better than competitors do.
Marketing encompasses a range of activities, including market research, product
development, pricing, promotion, distribution, and customer relationship
management.

Nature of Marketing:
● Customer-centric: Marketing revolves around understanding and meeting
the needs of customers.
● Dynamic: Marketing strategies and techniques evolve with changes in
consumer behavior, technology, and market trends.
● Strategic: Marketing involves developing long-term plans and strategies to
achieve organizational objectives.
● Multi-disciplinary: Marketing draws from various fields such as
psychology, economics, sociology, and statistics.
● Interactive: With the rise of digital marketing, there's increased interaction
between businesses and customers through social media, websites, and
other digital platforms.
Scope of Marketing:
● Product Development: Involves identifying and developing products or
services that meet consumer needs.
● Market Research: Gathering and analyzing information about consumer
preferences, market trends, competitors, etc.
● Pricing: Determining the appropriate pricing strategy based on factors
such as costs, competition, and perceived value.
● Promotion: Creating awareness and interest in products or services
through advertising, sales promotions, public relations, etc.
● Distribution: Ensuring products or services reach customers through
efficient distribution channels.
● Customer Relationship Management: Building and maintaining strong
relationships with customers to enhance loyalty and satisfaction.
Importance of Marketing:
● Revenue Generation: Effective marketing strategies lead to increased
sales and revenue for businesses.
 ● Customer Satisfaction: By understanding and meeting customer needs,
marketing helps in building long-term relationships and enhancing
customer satisfaction.
● Market Expansion: Marketing enables businesses to identify new market
opportunities and expand their reach.
● Competitive Advantage: Through effective branding, product
differentiation, and positioning, marketing helps businesses stand out
from competitors.
● Innovation: Marketing drives product innovation by identifying emerging
trends and consumer preferences.
● Organizational Success: Marketing is crucial for the overall success and
growth of organizations, regardless of their size or industry.

MArketing Concepts:

● Customer Orientation: This concept places the customer at the center of all
marketing activities. It emphasizes understanding customer needs, preferences,
and behaviors to create value and build long-term relationships. Businesses
focus on delivering superior customer value through tailored products, services,
and experiences.
● Market Orientation: Market orientation involves continuously gathering and
analyzing information about the market, competitors, and customers. Businesses
use market research to identify opportunities, assess demand, and develop
strategies that align with market needs and trends. Market-oriented companies
prioritize customer satisfaction and adapt their offerings based on market
feedback.
● Product Orientation: This concept focuses on product development and
innovation. Businesses with a product orientation prioritize creating high-quality
products or services and improving them over time. The assumption is that
superior products will attract customers and drive sales. However, it's essential
to balance product excellence with understanding and meeting customer needs.
● Selling Orientation: The selling orientation emphasizes aggressive sales tactics
and promotional activities to persuade customers to buy products or services.
Businesses with this orientation focus on generating immediate sales rather than
building long-term customer relationships. While selling is an essential aspect of
marketing, this concept may overlook the importance of understanding and
fulfilling customer needs.
● Societal Marketing Orientation: Societal marketing goes beyond profit
maximization and considers broader societal welfare. Businesses adopting this
concept integrate social and environmental considerations into their marketing
strategies. They aim to address societal issues, promote sustainability, and
engage in ethical business practices while delivering value to customers and
stakeholders.
● Holistic Marketing: Holistic marketing recognizes that marketing goes beyond
individual activities or departments within an organization. It encompasses all
 aspects of the business, including product development, distribution, pricing,
promotion, and customer service. Holistic marketing emphasizes coherence,
consistency, and integration across different marketing functions to create a
seamless and impactful customer experience.
● Relationship Marketing: Relationship marketing focuses on building and
maintaining long-term relationships with customers. It emphasizes personalized
communication, customer engagement, and customer loyalty. Relationship-
oriented businesses prioritize customer retention and lifetime value, recognizing
that repeat customers are more profitable than one-time buyers.
● Digital Marketing: With the rise of digital technology and online channels, digital
marketing has become a prominent concept. It encompasses various digital
platforms and tactics, such as social media marketing, search engine
optimization (SEO), email marketing, content marketing, and online advertising.
Digital marketing enables businesses to reach and engage with their target
audience effectively in the digital age.

Evolution of Marketing Concept:

● Product Orientation:
○ Early in the 20th century, businesses primarily focused on producing
goods efficiently without much consideration for consumer preferences.
○ The prevailing belief was that if a product was of high quality and priced
competitively, it would automatically sell well.
○ Marketing activities were limited to promoting the features and attributes
of the product.
● Sales Orientation:
○ By the mid-20th century, increased competition led to a shift toward a
sales-oriented approach.
○ Businesses began to emphasize aggressive sales tactics and promotional
efforts to persuade customers to buy their products.
○ The focus was on pushing products onto consumers rather than
understanding their needs.
● Marketing Orientation:
○ In the late 20th century, there was a fundamental shift toward the
marketing orientation.
○ Businesses recognized the importance of understanding and satisfying
customer needs to achieve long-term success.
○ The marketing concept emphasized market research, customer
segmentation, product development, pricing strategies, distribution
channels, and promotional activities tailored to meet consumer needs.
○ Companies started to adopt a customer-centric mindset, focusing on
building relationships and delivering customer value.
● Societal Marketing Orientation:
○ In response to societal and environmental concerns, the marketing
concept evolved further to incorporate societal marketing orientation.
 ○ Businesses began to consider not only the needs and wants of customers
but also broader societal welfare.
○ This concept emphasizes ethical and socially responsible behavior,
sustainability, and addressing societal issues in marketing strategies.
● Relationship Marketing:
○ As competition intensified in the late 20th and early 21st centuries,
relationship marketing gained prominence.
○ This approach focuses on building long-term relationships with customers
rather than simply making one-time sales.
○ Relationship marketing emphasizes personalized communication,
customer engagement, and customer loyalty programs to foster repeat
business and customer advocacy.
● Digital Marketing:
○ With the advent of the internet and digital technologies, marketing
underwent another significant evolution.
○ Digital marketing encompasses various online channels such as social
media, search engine optimization, email marketing, content marketing,
and mobile marketing.
○ It enables businesses to reach and engage with their target audience more
effectively, gather data on consumer behavior, and personalize marketing
efforts.

Marketing Mix:

The marketing mix, often referred to as the 4Ps, is a fundamental framework used by
marketers to develop and implement effective marketing strategies. It consists of four
key elements that businesses can control to influence consumer buying decisions.
These elements are Product, Price, Place, and Promotion. Here's a closer look at each
component:

Product:
● The product refers to the tangible good or intangible service that a
company offers to meet customer needs or solve their problems.
● Product decisions involve aspects such as design, features, quality,
branding, packaging, and after-sales support.
● Marketers must ensure that the product meets customer expectations,
addresses their needs effectively, and provides value relative to
competitors' offerings.
Price:
● Price refers to the amount of money customers are willing to pay for a
product or service.
● Pricing decisions involve determining the appropriate pricing strategy,
setting the price level, and considering factors such as cost, competition,
demand, and perceived value.
 ● Pricing strategies can vary, including penetration pricing (setting a low
initial price to gain market share), skimming pricing (setting a high price
initially and gradually lowering it), value-based pricing (setting prices
based on perceived value to customers), and discount pricing (offering
discounts or promotions).
Place (Distribution):
● Place refers to the distribution channels through which products or
services are made available to customers.
● Distribution decisions involve selecting distribution channels (such as
direct sales, retailers, wholesalers, or online platforms), determining the
distribution coverage (intensive, selective, or exclusive), and managing
logistics and inventory.
● Marketers must ensure that products are available at the right place, at the
right time, and in the right quantities to meet customer demand efficiently.
Promotion:
● Promotion refers to the various marketing activities used to communicate
the value of products or services to customers and persuade them to
make a purchase.
● Promotion includes advertising, sales promotion, public relations, personal
selling, direct marketing, and digital marketing tactics.
● Promotional decisions involve developing promotional campaigns,
selecting appropriate communication channels, creating compelling
messages and creative content, and measuring the effectiveness of
promotional efforts.
● The goal of promotion is to create awareness, generate interest, stimulate
demand, and ultimately drive sales.

Strategic Marketing Planning - an overview:

Strategic marketing planning is the process of setting goals, defining strategies, and
allocating resources to achieve long-term business objectives. It involves analyzing
market conditions, identifying opportunities and threats, understanding customer needs
and preferences, and developing actionable plans to position the company effectively in
the marketplace. Here's an overview of strategic marketing planning:

Mission and Objectives:

● The process begins with establishing the company's mission, vision, and
core values, which define its purpose and guiding principles.
● Objectives are then set to specify what the organization aims to achieve,
such as increasing market share, expanding into new markets, or
launching new products.
Situation Analysis:
● A thorough analysis of the internal and external environment is conducted
to understand the company's strengths, weaknesses, opportunities, and
threats (SWOT analysis).
 ● Internal factors include resources, capabilities, organizational structure,
and culture.
● External factors include market trends, competition, technological
advancements, economic conditions, regulatory changes, and socio-
cultural factors.

SWOT analysis:

Strengths:

● Internal factors that give the organization a competitive advantage.

● Unique resources, capabilities, or attributes that differentiate the organization
from competitors.
● Positive aspects that contribute to the organization's success and performance.
● Examples: Strong brand reputation, innovative products, loyal customer base,
efficient processes, skilled workforce.

Weaknesses:

● Internal factors that hinder the organization's performance or competitive

position.
● Areas where the organization lacks resources, capabilities, or expertise
compared to competitors.
● Factors that may limit the organization's ability to achieve its objectives or
respond to market challenges.
● Examples: Limited financial resources, outdated technology, poor brand
recognition, high employee turnover, inefficient supply chain.

Opportunities:

● External factors in the market environment that the organization can capitalize
on to grow and succeed.
● Emerging trends, market developments, or changes in consumer behavior that
create opportunities for the organization.
● Areas where the organization can expand, innovate, or diversify its offerings to
meet customer needs.
● Examples: Growing market demand, new market segments, technological
advancements, changes in regulations, and strategic partnerships.

Threats:

External factors in the market environment that pose risks or challenges to the
organization's success.
Competitive pressures, market trends, or industry dynamics that may negatively
impact the organization.
 Factors that could disrupt operations, reduce profitability, or undermine the
organization's competitive position.
Examples: Intense competition, economic downturns, changes in consumer
preferences, regulatory uncertainties, and supply chain disruptions.
SWOC:

*Because the term Threat is originated from military strategy, Using “C” as Challenge or
Constrains is recommended to create more positive attitude.

Challenge is replaced to represent an obstacle that can be achieved and using the
motivation mind set to overcome your competitor’s

SWOT or, SWOC analysis still serving the same needs, However changing your team
mindset while the strategic meeting would be very energetic to create more valuable
results.
Market Segmentation, Targeting, and Positioning (STP):
● Market segmentation involves dividing the market into distinct groups of
consumers with similar needs, characteristics, or behaviors.
● Targeting involves selecting one or more segments that the company
wants to serve based on their attractiveness and alignment with the
company's capabilities and objectives.
● Positioning involves developing a unique value proposition and positioning
strategy to differentiate the company's offerings from competitors and
create a compelling brand image in the minds of target customers

OR

Market Segmentation:
● Market segmentation involves dividing a heterogeneous market into
distinct groups of consumers who share similar characteristics, needs,
preferences, or behaviors.
● The goal of segmentation is to identify homogeneous subgroups within
the market that can be targeted with customized marketing strategies.
● Segmentation criteria can include demographic factors (such as age,
gender, income), psychographic factors (such as lifestyle, personality),
behavioral factors (such as usage patterns, purchase behavior), and
geographic factors (such as location, climate).
● Segmentation helps marketers understand the diversity of their target
market and develop products, services, and marketing messages that
resonate with specific customer segments.
Targeting:
● Targeting involves selecting one or more segments from the segmented
market to focus on based on their attractiveness and alignment with the
organization's objectives and capabilities.
● Target market selection considers factors such as market size, growth
potential, profitability, competition, accessibility, and compatibility with the
organization's resources and strengths.
● Different targeting strategies include undifferentiated marketing (targeting
the entire market with a single offering), differentiated marketing
(targeting multiple segments with different offerings), concentrated
marketing (targeting a single segment with a specialized offering), and
micromarketing (targeting individual customers or small niche markets).
● Targeting enables marketers to allocate resources effectively, prioritize
marketing efforts, and tailor products and messages to meet the specific
needs and preferences of selected customer segments.
Positioning:
● Market positioning involves creating a distinct image and perception of a
product or brand in the minds of target customers relative to competitors.
 ● Positioning is about how customers perceive a product or brand and
where it stands in relation to competing offerings.
● Effective positioning communicates the unique value proposition, benefits,
and attributes of a product or brand, differentiates it from competitors,
and creates a compelling brand image.
● Positioning strategies can be based on various dimensions such as
product features, price, quality, convenience, innovation, customer service,
and brand personality.
● Positioning helps marketers establish a competitive advantage, attract
target customers, and influence purchasing decisions by emphasizing the
benefits and values that matter most to the target market segment.

OR

Market Segmentation and Positioning:

Market segmentation and positioning are essential components of marketing strategy

that help businesses effectively target and differentiate their offerings to meet the
needs of specific customer segments. Here's an overview of market segmentation and
positioning:

Market Segmentation:

Market segmentation involves dividing the broader market into distinct groups of
consumers who share similar characteristics, needs, preferences, or behaviors.
The goal of segmentation is to identify homogeneous subgroups within the
market that can be targeted with tailored marketing strategies. Segmentation
criteria can include:
● Demographic Segmentation: Based on factors such as age, gender,
income, education, occupation, marital status, and household size.
● Psychographic Segmentation: Based on lifestyle, values, attitudes,
interests, personality traits, and behavior.
● Behavioral Segmentation: Based on usage patterns, purchasing behavior,
brand loyalty, product benefits sought, and decision-making process.
● Geographic Segmentation: Based on geographic location, such as region,
country, city size, climate, and population density.
● B2B Segmentation: Based on industry, company size, organizational
structure, purchasing behavior, and decision-making unit.
By segmenting the market, businesses can identify specific customer needs and
preferences, understand their behaviors and buying habits, and develop targeted
marketing strategies to address those needs more effectively.

Market Positioning:
Market positioning involves creating a distinct image and perception of a product or
brand in the minds of target customers relative to competitors. It's about how
customers perceive a product or brand and where it stands in relation to
competing offerings. Effective positioning helps differentiate a product or brand,
communicate its unique value proposition, and attract and retain customers. Key
elements of market positioning include:
● Differentiation: Identifying and communicating unique features, benefits,
or attributes that set the product or brand apart from competitors.
● Relevance: Ensuring that the positioning resonates with the needs,
desires, and preferences of the target market segment.
● Credibility: Establishing credibility and trust through product quality,
performance, reliability, and customer testimonials or endorsements.
● Consistency: Maintaining consistency in messaging, branding, and
customer experience across all touchpoints and communication
channels.
● Sustainability: Ensuring that the positioning is sustainable over time and
aligns with the organization's values, capabilities, and resources.
Market positioning can be based on various dimensions such as product features,
price, quality, convenience, innovation, customer service, and brand image. It's
essential for businesses to continuously monitor and adapt their positioning
strategies based on changes in market dynamics, customer preferences, and
competitive landscape.

Marketing Mix Development:

● Based on the STP analysis, strategies are developed for the four elements
of the marketing mix: product, price, place, and promotion.
● Product strategies focus on product development, features, branding,
packaging, and innovation to meet customer needs effectively.
● Pricing strategies involve determining the appropriate pricing levels,
strategies, and tactics to maximize profitability while remaining
competitive in the marketplace.
● Place strategies focus on distribution channels, logistics, and supply chain
management to ensure products are available to customers at the right
place and time.
● Promotion strategies encompass advertising, sales promotion, public
relations, personal selling, and digital marketing efforts to create
awareness, stimulate demand, and drive sales.
Implementation and Control:
● Once the strategic marketing plan is developed, it needs to be
implemented effectively.
● This involves allocating resources, assigning responsibilities, setting
timelines, and monitoring progress against objectives.
 ● Regular performance measurement and control mechanisms are put in
place to track key performance indicators (KPIs), evaluate the
effectiveness of marketing initiatives, and make adjustments as needed to
ensure alignment with strategic goals.

Marketing Environment:

Market analysis and selection in marketing management involve considering both

macro and micro components of the market environment. These components influence
marketing decisions and strategies in different ways. Let's explore the macro and micro
factors and their impact on marketing decisions:

Macro Environment:

The macro environment consists of external factors that are beyond the control of
the organization but have a significant impact on its operations and
performance. These factors include:
● Political and Legal Factors: Government policies, regulations, trade
agreements, taxation policies, and political stability can influence
marketing decisions. For example, changes in trade tariffs may affect
pricing strategies and international expansion plans.
● Economic Factors: Economic conditions such as economic growth,
inflation, interest rates, unemployment, and consumer confidence impact
consumer purchasing power and spending patterns. Marketers need to
adjust pricing, promotion, and product offerings based on prevailing
economic conditions.
● Social and Cultural Factors: Socio-cultural trends, values, beliefs, lifestyles,
demographics, and cultural norms influence consumer preferences,
behavior, and market demand. Marketers must understand cultural
nuances and societal trends to develop culturally relevant marketing
strategies.
● Technological Factors: Technological advancements, innovation,
digitalization, and disruptive technologies affect how businesses operate
and how consumers interact with brands. Marketers need to leverage
technology to reach and engage with customers effectively and stay
ahead of competitors.
● Environmental Factors: Growing concerns about environmental
sustainability, climate change, and corporate social responsibility (CSR)
influence consumer attitudes and purchasing decisions. Marketers need
to develop eco-friendly products, sustainable practices, and ethical
marketing strategies to appeal to environmentally conscious consumers.
● Legal and Regulatory Factors: Compliance with laws, regulations, industry
standards, and ethical guidelines is essential for marketers. Regulations
related to product safety, advertising, data privacy, and consumer
protection shape marketing practices and messaging.
Micro Environment:

The micro environment consists of internal factors and stakeholders that directly
influence the organization's operations and marketing activities. These factors
include:
● Customers: Understanding customer needs, preferences, behavior, and
buying patterns is crucial for marketing decisions. Marketers conduct
market research, segmentation, and targeting to identify and meet
customer needs effectively.
● Competitors: Analyzing competitors' strengths, weaknesses, strategies,
and market positioning helps marketers identify competitive threats and
opportunities. Competitive intelligence informs product differentiation,
pricing strategies, and promotional tactics.
● Suppliers: Supplier relationships impact product quality, availability,
pricing, and supply chain efficiency. Marketers collaborate with suppliers
to ensure a reliable and cost-effective supply of raw materials,
components, and services.
● Intermediaries: Distribution channels, retailers, wholesalers, and other
intermediaries play a vital role in reaching customers and delivering
products to market. Marketers need to manage relationships with
intermediaries and optimize distribution channels to maximize market
reach and sales.
● Internal Stakeholders: Internal stakeholders such as employees,
managers, shareholders, and board members influence marketing
decisions and organizational culture. Effective internal communication
and alignment of goals are essential for successful marketing
implementation.
● Partnerships and Alliances: Collaborations with strategic partners,
alliances, and joint ventures can enhance market access, capabilities, and
resources. Marketers identify and leverage partnership opportunities to
expand market presence and achieve mutual objectives.

Buyer Behavior:

Buyer behavior, also known as consumer behavior, refers to the actions, decisions, and
processes that individuals and groups undertake when selecting, purchasing, using, and
disposing of products, services, ideas, or experiences. Understanding buyer behavior is
crucial for marketers as it helps them anticipate and meet the needs, preferences, and
motivations of consumers. Here are some key aspects of buyer behavior:

Factors Influencing Buyer Behavior:

 ● Psychological Factors: These include individual characteristics such as
perception, motivation, attitude, beliefs, values, personality, and lifestyle
that influence how consumers perceive and respond to marketing stimuli.
● Social Factors: Social influences from family, friends, peers, reference
groups, culture, and societal norms shape consumer behavior. Consumers
may conform to social expectations, seek approval, or adopt behaviors
and preferences observed in their social environment.
● Personal Factors: Personal characteristics such as age, gender, income,
occupation, education, marital status, and life stage influence consumer
behavior. These factors affect purchasing power, lifestyle choices, and
consumption patterns.
● Cultural Factors: Cultural values, norms, beliefs, customs, rituals, and
traditions influence consumer behavior. Cultural influences vary across
regions, ethnicities, religions, and subcultures, shaping preferences,
tastes, and consumption behaviors.
Stages of the Buying Process:
● Problem Recognition: The consumer recognizes a need or problem to be
solved, which triggers the buying process. This need may arise from
internal stimuli (such as hunger or thirst) or external stimuli (such as
advertising or peer influence).
● Information Search: The consumer gathers information about available
options to evaluate alternatives and make an informed decision.
Information sources may include personal experiences, word-of-mouth,
online research, reviews, advertisements, and sales promotions.
● Evaluation of Alternatives: The consumer evaluates different brands,
products, or services based on criteria such as price, quality, features,
benefits, and brand reputation. The decision-making process may involve
weighing the pros and cons of each option and considering factors like
perceived value and risk.
● Purchase Decision: The consumer selects a preferred option and makes
the purchase decision. Factors influencing the purchase decision may
include brand loyalty, pricing, availability, promotional offers, and
situational factors such as time constraints or impulse buying.
● Post-Purchase Evaluation: After purchasing and using the product or
service, the consumer evaluates its performance and satisfaction. Positive
experiences lead to brand loyalty, repeat purchases, and positive word-of-
mouth, while negative experiences may result in dissatisfaction, product
returns, or negative reviews.
Types of Buyer Behavior:
● Complex Buying Behavior: Occurs when consumers are highly involved in
the purchase decision and perceive significant differences between
brands. They engage in extensive information search and evaluation
before making a purchase.
● Dissonance-Reducing Buying Behavior: Occurs when consumers are
highly involved in the purchase decision but perceive little difference
 between brands. They may experience post-purchase dissonance or regret
and seek reassurance after the purchase.
● Habitual Buying Behavior: Occurs when consumers have low involvement
in the purchase decision and frequently purchase a product out of habit or
routine. They may not engage in extensive information search and rely on
past experiences or brand loyalty.
● Variety-Seeking Buying Behavior: Occurs when consumers have low
involvement in the purchase decision but seek variety and novelty in their
purchases. They may switch between brands or try new products to
satisfy their desire for variety.

Consumer versus Organizational Buyers:

Consumer buyers and organizational buyers represent two distinct categories of

purchasers with different characteristics, motivations, and purchasing processes.
Here's a comparison between consumer buyers and organizational buyers:

Consumer Buyers:
● Individuals: Consumer buyers are individual consumers who purchase
goods or services for personal use, household consumption, or for the
benefit of their families.
● Low Volume, High Frequency: Consumer purchases typically involve low-
volume transactions but high-frequency buying behavior. Examples
include buying groceries, clothing, electronics, or personal care products.
● Emotional and Rational Factors: Consumer buying decisions are
influenced by a combination of emotional, psychological, and rational
factors. These may include personal preferences, brand loyalty, lifestyle
choices, price sensitivity, perceived quality, and social influences.
● Shorter Decision-Making Process: The decision-making process for
consumer purchases tends to be relatively short and straightforward,
especially for routine or low-involvement purchases. Consumers may rely
on impulse buying, habit, or limited information search.
● Direct Purchase Influence: Consumer buying decisions are directly
influenced by factors such as advertising, promotions, product packaging,
word-of-mouth recommendations, and online reviews.
Organizational Buyers:
● Businesses and Institutions: Organizational buyers are entities such as
businesses, government agencies, educational institutions, and non-profit
organizations that purchase goods, services, or solutions for use in their
operations or to fulfill organizational objectives.
● High Volume, Low Frequency: Organizational purchases typically involve
higher volumes but lower frequencies compared to consumer purchases.
Examples include buying raw materials, machinery, equipment, office
supplies, or professional services.
 ● Rational Decision-Making: Organizational buying decisions are primarily
based on rational considerations such as cost-effectiveness, quality,
functionality, performance, reliability, and compatibility with organizational
needs and specifications.
● Complex Decision-Making Process: The decision-making process for
organizational purchases is often complex and involves multiple
stakeholders, departments, and decision criteria. It may require formal
procurement procedures, vendor evaluations, negotiations, and contract
agreements.
● Longer Sales Cycle: Organizational purchases typically have longer sales
cycles due to the need for extensive research, evaluation, approvals, and
budget allocations. Sales efforts may involve building relationships with
key decision-makers, providing customized solutions, and addressing
specific organizational requirements.
● Professional Influence: Organizational buying decisions are influenced by
professional expertise, technical specifications, performance evaluations,
and industry standards. Suppliers need to demonstrate expertise,
reliability, and value proposition to win organizational contracts.

Consumer Decision Making Process:

The consumer decision-making process is a series of steps that individuals go through

when making purchasing decisions. These steps help consumers evaluate alternatives,
make choices, and ultimately decide whether to buy a product or service. The decision-
making process typically involves the following stages:

Problem Recognition:
● The process begins when consumers recognize a need or problem that
requires a solution. This need may arise from internal stimuli (such as
hunger, thirst, or boredom) or external stimuli (such as advertising,
recommendations, or product availability).
● Marketers can trigger problem recognition by creating awareness of
needs or by highlighting product benefits that address consumer needs or
desires.
Information Search:
● Once the need is recognized, consumers engage in information search to
gather information about available options that could potentially satisfy
their needs.
● Information sources may include personal experiences, word-of-mouth
recommendations, advertising, product reviews, online research,
comparison websites, and consultations with friends, family, or experts.
● Marketers can influence this stage by providing relevant and credible
information about their products or services through various channels and
touchpoints.
Evaluation of Alternatives:
 ● After gathering information, consumers evaluate different alternatives
based on specific criteria and attributes relevant to their needs,
preferences, and decision-making context.
● Evaluation criteria may include price, quality, features, benefits, brand
reputation, availability, convenience, and social influences.
● Consumers may use various decision-making heuristics or mental
shortcuts (such as price-quality trade-offs, brand loyalty, or decision rules)
to simplify the evaluation process.
● Marketers can influence evaluation by highlighting the unique features,
benefits, and value proposition of their offerings compared to
competitors.
Purchase Decision:
● Once consumers have evaluated alternatives, they make a purchase
decision by selecting the option they perceive as offering the best value
and meeting their needs and preferences.
● Factors influencing the purchase decision may include product availability,
pricing, promotional offers, brand loyalty, past experiences, urgency, and
situational factors.
● Consumers may also experience post-purchase dissonance or regret if
they feel uncertain about their decision or if their expectations are not met
after purchase.
Post-Purchase Evaluation:
● After purchasing and using the product or service, consumers evaluate
their satisfaction and experiences with the chosen option.
● Positive experiences lead to satisfaction, brand loyalty, repeat purchases,
and positive word-of-mouth recommendations.
● Negative experiences may result in dissatisfaction, product returns,
complaints, negative reviews, or switching to alternative brands or
products.
● Marketers can influence post-purchase evaluation by providing excellent
customer service, addressing customer concerns promptly, soliciting
feedback, and maintaining ongoing communication with customers.