A person’s culture is what helps to shape a person and s what forms a person to make their everyday decisions. Culture is the set of values, perceptions, wants, and behaviors learned by members of society from families and other important institutions (Kettle, 2008, pig. 131).
For example, if the person wants to throw a birthday party for their child and their friends they might pick a restaurant such as Chuck-e-Cheese or Peter Piper Pizza. We perceive these places to be kid friendly because that’s what the restaurants advertise themselves to be.A consumer’s buying behavior is also influenced by social factors, such as the consumer’s small groups, family, ND social roles and status (Kettle, 2008, pig. 1 34).
A person’s family status can play a big role in deciding what restaurant to pick. For example, if there is a teenager who wants to have their sweet sixteen at a certain place, they have to look to their parents to help them decide what is affordable. The American social classes are; upper class, middle class, working class, and lower class.If the teenager’s parents are in the lower class they might have to pick a restaurant that would be cheaper than what an upper class family could provide. Lower class is considered to be the working poor, and upper class is here Americans are wealthier. A buyer’s decisions are also influenced by personal factors, such as the buyer’s age, life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept (Kettle, 2008, pig.
139). Everyone has their own personalities. Some people are more outgoing and sociable, others can by more shy, which can affect a buyers decisions.
The specific mix of human traits can be attributed to a particular brand, which is called brand personality (Kettle, 2008, pig. 141). Some brand personality traits include; sincerity, excitement, competence, sophistication, ND ruggedness.
For example, if a person is more outdoorsy they might pick a restaurant such as Dildo’s, which is a restaurant that you can sit outdoors by the Wildlife Zoo that you’re eating outside with flamingo’s right nearby. Compared to a person who has sophistication and decides they would pick a restaurant that is like Olive Garden or Red Lobster.In conclusion, there are so many different factors that can influence a consumers buying behavior. Even making a decision so small as to where to celebrate a birthday party, all these factors come into play with one another. Whether it be the person’s ultra, our society, social class, age, lifestyle, or personality, they all intertwine with our everyday decisions.
And marketers have to be able to understand these roles and take them into account. Citation Kettle, P. , & Armstrong, G. (2008). Marketing: Managing Profitable Customer Relationships.
In Principles of Marketing (Custom deed. , up. 129-177). Upper Saddle River, New Jersey: Pearson.
Question: Soft drink marketers spend about $400 million on television advertising each year. Why is this important? Answer: The business market is so big that businesses are always trying to catch nonusers’ attention for their business. The soft drink industry is competitive because there are many different brands and flavors. For a business in the soft drink industry to be successful they have to get their business out there for consumers to see. They also want to try and be more known then their competitors. One way to do this is by advertising on television, since the majority of the economy watches television.
This may be why soft drink marketers spend about $400 million on television advertising per year. Soft drink marketers Want their product to be more advertised and seen than there companies. The more that their brand is marketed and advertised the more consumers are willing to try that brand, and if they like it tell others about what they think.
A person’s belief and attitude can also affect a person’s buying behavior. A belief is a descriptive thought that a person has about something (Kettle, 2008, pig. 144). Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Kettle, 2008, pig. 144). For example, some people believe that soda is so bad for your health and it is a big reason why many Americans are obese. Others live that soft drinks that contain caffeine are just as bad as drinking caffeinated coffee.
So therefore, if soft drink marketers create a commercial with soft drinks with zero calories it will get some of those consumers to try that brand and think it is better for them. Some brands also spend a lot of money to get celebrities to be advertised in a commercial with their products. For example, Taylor Swift did a commercial for Pepsi.If Taylor Swift fans seen these commercials they might be influenced to buy Pepsi or get their parents to buy Pepsi.
Another reason why soft drink marketers spend a lot on elevation advertising per year is because it costs a lot of money to advertise during certain events throughout the year. For example, the super bowl. Marketers know that many people are going to be watching the super bowl, so they are willing to spend $2 million dollars for 30 seconds of television time. In conclusion, the soft drink industry is very competitive. There are major brands such as Pepsi and Coca-Cola that have different flavors.But, then you have these knock off brands that make very similar flavors that get sold cheaper. For example, you have the famous root beer brand or MUG.
But then Safety and Wall-Mart came out with their store brand root beer that cost a fraction of the cost for the name brand flavors. Therefore, by having extra advertising with celebrities or during football season the more likely consumers will choose those brands. Citation Question: Outline the major influences on business buyers. Why is it important for the business-to-business buyer to understand these major influences?Answer : There are a lot of large companies that will sell their products to other businesses. For example, General Mills creates their products then sells them to all sorts of businesses, such as Safety and Wall-Mart. Business buyers have different influences when they make their buying decisions.
The different influences include; environmental, organizational, interpersonal, and individual. Business buyers are heavily influences by factors in the economic environment, such as level of demand, the economic outlook, the cost of money, and shortages in key materials (Kettle, 2008, pig. 168).
Different cultures and customs can influence business buyers in the environment. Factors can include, the economic growth, interest rates, exchange rates, and lastly inflation rates. For example, interest rates can affect a business’s costs, which will be able to tell how that business will grow and how much they can expand. The exchange rate also will affect a business’s costs because of importing and exporting goods and supplies between businesses in other countries. Buying organizations have their own way they run their business, such as policies and procedures, and their structure; these are different organizational factors.It is very important for companies to have policies and procedures, these affect how the company runs. For example, for a company to be disorganized and have inaccurate records and such, these faults may affect their customers.
The customers may then find that the business is unreliable or a product is way over priced and then the company will lose business. Interpersonal and individual factors also affect the buying decision process. Interpersonal factors include; authority, status, empathy, and persuasiveness. For example, a person with the highest rank will have the most influence.This person will control things such as rewards and punishments that affect the participants. Personal characteristics in the buying center can influence Individual factors include; age, income, education, personalities, job positions, and risk attitudes. For example, a person will know in-depth analyses that will help the company choose the best supplier.
Knowing this information will help the business to get the best deals for their company. In conclusion, it is important for business-to-business marketers to understand the business markets and the business buyer behavior.Then they have to be able to provide profitable relationships with business customers by being able to provide customer value. All these different factors affect the business buying behavior.
Whether it is to buy and sell products internationally, or understanding how the business runs, business- o-business marketers want to work with other well organized companies who can offer them the best deals to profit their companies. Citation Relationships. In Principles of Marketing (Custom deed. , up. 129-177). Upper Question: How does the business buying process differ from the consumer buying process?Answer: There are eight stages that make up the business buying process. If a buyer is modifying tasks they may skip some stages, but if they are facing new tasks then they will usually go through all eight stages. The consumer buying process consists of only five stages.
The business buying process does differ room the consumer buying process. Purchases made by a business get planned in advanced compared to a consumers buying purchase. For example, a business could plan an employee lunch that requires planning with a caterer for a certain day. With a consumer lunch purchase they can make their decision right before their lunch break.Next, there is the decision making. A consumer decision maker would be someone like a mother. They have to make sure they get proper groceries for their family, products to clean the house, and purchase the things their children need and so forth.
For a business decision maker, they have to go through a formal process. Such as when the office needs office supplies; they have to figure out what is needed, how much of each product is needed, then it has to be approved by some sort of manager before the order is even placed. Some consumers and businesses may buy similar items such as computers, printers, and other office supplies.When businesses buy these sort of items they usually will purchase multiple items at a time with some kind of warrantee, before they even purchase the product.
Their warrantee would most likely consists off three year contract or more. With a consumer they are also able to buy warrantee but are more likely to purchase a one year warrantee or may not purchase one at all. There is a difference because businesses know that there may be multiple persons that operate the products, compared to a consumer who may only have one person using the product and feel a lesser need to purchase such a long warrantee.In conclusion, there is a difference between business suppliers compared to consumer suppliers. Consumers are more likely to compare prices and at one time buy a product from one company then buy the same product for a better deal from another company. Usually with business suppliers they have contracts with certain companies, so they are more likely to keep using the same company for their products. For example, consumers and businesses need toiletries. A consumer may buy the products from Target one time, but then Wall-Mart has a clearance sale so they buy from their instead.
With a business there is usually some sort of contract with a company which then builds a relationship. Then with their dedication to that company, the company may then give that business more discounts and offers for being dedicated. Question: Suppose that you own a small printing firm and have the opportunity to bid on a federal government contract that could bring a considerable amount of new business to your company. List three advantages and three disadvantages of working in a contract situation with the federal government. Answers: The government market has characteristics and needs.Government markets offer large opportunities for companies. The government is a major buyer of goods and services.
The government market is federal, state, and local- that purchases or rents goods and services for carrying out the main function of the government. Government organizations usually require different appliers to submit a bid, and then will normally award a contract with the lowest bidder (Kettle, 2008, pig. 174). For a small printing firm such as mine, having the opportunity to place a bid on a federal government contract could bring in a considerable amount of new business to my company.But there are advantages and disadvantages of working in a contract with the federal government.
Some advantages would be; there would be an increase in profits, guaranteed a job, money is certain. With being a small business if my bid was low enough the government may purchase printers and papers for all the government businesses in my area. If I was providing these supplies to Dam’s, schools, and welfare clinics, then I know that my business would stay running. For example, I would know that the government would not give me a bad check that could bounce. Also know that with getting a contract with the government there would be an increase in my profits for as long as had that contract. Some disadvantages would include; there’s no reward, the contract ends, and the process can be extensive. When the contract was ending there may be another small company that could underbid me and I would lose the extra income I had coming in.
Also, with being contracted I oldest receive the benefits that an actual government worker receives.Lastly, with there being multiple businesses trying to apply for the contract the process could take a while, which can be frustrating. In conclusion, in my own opinion I find that the benefits to having a federal government contract outweighs the disadvantages.
In would be in the best interest of my business to do my best to place a proper bid that would be low enough to receive the contract, but not underbid myself too much that wouldn’t even make a profit. I would also want to Stay loyal to my regular and ongoing customers.