Utility

Environmental analysis • Prioritize the environmental variables. • Identify whether they are opportunities and threats. • Map them with the companies strengths and weaknesses

Environment Hydraulic Excavator Parameter

Variables

Product

High Capacity Threat

Implication

Th/opp

Technology

Opp

Aesthetics

Threat

Functioning Fuel consumption Know how of Operators

UC

S/ W

Production capacity Strength can be modified for other models Tata image

Strength

UC

Focus on quality

Weakness

Threat

UC

Improve fuel efficiency by better after sales

Strength

Threat

C

Focus on training (Service)

Strength

UC

Segment market which requires small bucket capacity

Strength

Digging and Threat bucket capacity

Parameter

Variables

Th/opp

Utility

Labour

Threat

Other brands

Threat

Recession

Threat

Golden triangle project

Opp

Seasonal

Threat Threat

Demand

Acceptance Mafia

Micro

Unions

Opp

Political

Opp

Image

Threat

C

Implication

S/ W

Can highlight efficiency

Strength

Better brand image. Strength/we Differentiate akness ?? UC Local image

Strength

C

Provide schemes

Strength

UC

Cannot do anything Weakness. Take risk Good relation

Strength Strength

C

Competitors Better brand image

Weakness

Understanding Buying Behaviour for Effective Marketing

• Stages to the Consumer Buying Decision Process – Problem recognition (Awareness) – Consideration set – Information search – Evaluation – Purchase – Post purchase evaluation

Utility place utility - The increased usefulness created by marketing through making a product available at the place consumers want. possession utility - The increased usefulness created by marketing through making it possible for a consumer to own, use, and consume a product. It is also called ownership utility. time utility - The increased satisfaction created by marketing through making products available at the time consumers want them form utility - The creation of form utility includes all activities used to change the appearance or composition of a product with the intent of making it more attractive to potential and actual users.

• Decision processes do not always follow the logical and sequential stages as stated • The brand decision process during purchase of consumer and industrial goods vary from product to product, individual to individual and from one time period to another. • Brand decision process for consumer goods can range from an extensive and time consuming process to an automatic process.

Types of Decision Processes Subcontracted Legalistic

Problem solving

Variety seeking

Heuristics

Picking

Consumer

Casual

Industrial

Habit

Habit Heuristics

Reciprocity Legalistic

Problem solving Quasi resolution

S l.N o

1.

Factors influencing decisions Consumer buying

Industrial buying

Individual factors

Environmental factors

 

Limited problem solving i) Variety  seeking

ii)Picking

2.

Related to product

Habitual buying

Low involvement Differences  between brands  (Assael 87)

iii)Casual  buying

Boredom  (Faison 77) Timing and  qty. of  purchase  (Simonson and  Winer 92)

 

Low imp. Little un-  certainty. No  diff. between  brands (Con. Res.  Assael 87, Ind.  Res Bunn 93)

 

Repetitive  purchase &  continued  reinforcement  (Con. Res. Howard  & Sheth 69, Ind.  Res. Bunn 93)

 

Consumer buying

3.

Industrial buying

Related to product

Individual factors

Environmental factors

 

Extended problem solving i)Planned: Speciality  goods.

ii) Un-  planned

Planned: Modified  rebuy. New task.

High priced. Complex products.  Important  purchase. High  un- certainty.  (Con. Res. Assael  87, Ind. Res.  Bunn 93)

 

Shelf  display (Ursic 80)

 

Sl . No

Factors influencing decisions   Consumer  buying

Industrial  buying

Related to  decision task

4.

Thumb rules     Thumb  rules

Any product  (Hoyer 84)

5.

Subcontract   

Any product  (Rosen &  Olshavsky  87a) 

6.

Legalistic        Legalistic  

Individual factors

Environ-  mental  factors Time  constraint.  Task  complexity.  Distraction  (Wright 74)

Knowledge (Rosen &  Olshavsky  87b)

Time (Rosen &  Olshavsky   87a) Approval from  external  sources  eg.,Legal and  social norms.  (Duncan 66,  Olshavsky 73)

Sl . No

Factors influencing decisions  

Consumer  buying

Industrial  buying

7.

Quasi  resolution

8.

Reciprocity

9.

Impulse

Related to  decision task

Individual factors

Environ-  mental  factors Goal conflict  (Cyert and  March 63)

Homo- geneous  product (Moyer  70)

Mutual agreement  (Moyer 70)

Any product  (Rook 87)

Powerful urge (Rook  87)

Time cons-  traint  (Dagnoli 87).

Framework for Understanding Buying process

• The factors influencing the purchase can be broadly divided into: – Product related factors • Differences between brands (Market forces) • Uncertainty with untried brands (Marketing activity)

– Individual factors – Environmental factors

Marketing- Changing the Behaviour LIPS to HIPS Picking

Variety seeking

Subcontracted (if consumer is not knowledgeable)

Legalistic

Problem solving (if consumer is knowledgeable) Heuristics

Habit

Generalized framework Low uncertainty of untried brands Low Eg: salt, cement differences Buying beh: between Picking brands High Eg: Soaps differences Buying beh: between Variety seeking brands

High uncertainty of untried brands Eg: Textiles Buying beh: Habit Eg:Pharmaceuticals Buying beh: Problem solving