Marketing and Buying Decision Free Essays

Principles of Marketing Principles of Marketing 2012 Name: Robert Barnes Student Number: 21154021 Institution: University of West London Word count: 1455 2012 Name: Robert Barnes Student Number: 21154021 Institution: University of West London Word count: 1455 Table of Contents 1. 0 Introduction2 2. 0 Question 1 3 2. We will write a custom essay sample on Marketing and Buying Decision or any similar topic only for you Order Now 1 Personality 3 2. 2 Motivation6 2. 3 Conflict6 3. 0 Question 2 8 Bibliography9 1. 0 Introduction The case study I have chosen to cover is â€Å"Breezing out for a night on the tiles†. It discusses the rise of the premium pre-mixed drinks industry between 1995-2000, in particular the Bacardi Breezer brand. It looks at the marketing activity which has taken place and the brand association the marketers aimed to achieve. In this report I will be exploring the buying process involved when purchasing an alcoholic beverage, the influencing factors when making a decision and the role that marketing plays, in these decisions. The definition of marketing is â€Å"The management process which identifies anticipates and supplies customer requirements efficiently and profitably. † Adrian Palmer 2004 Personality noun (plural personalities) The coon of characteristics or qualities that form an individual’s distinctive character: – Oxford Dictionary 2012 ENTJ Frank, decisive, assume leadership readily. Quickly see illogical and inefficient procedures and policies, develop and implement comprehensive systems to solve organisational problems. Enjoy long-term planning and goal setting. Usually well informed, well read, enjoy expanding their knowledge and passing it on to others. Forceful in presenting their ideas. – Introduction to Type, Sixth Edition by Isabel Briggs-Myers 1998 2. 0 Question 1 Q. Give an overview of how the buying decision-making process might work for purchasing an alcoholic drink in a pub or club. How would this differ when purchasing alcohol in a supermarket or off licence? A. The Theory To answer this question we first need to look at the theories in marketing associated to the buying process, influences and behaviours. Diagram 2. 0 is the structure of the buying process based on the â€Å"Cognitive Paradigm† theory (Pickton and Broderick 2001) which focuses on the individuals thought process, during a buying decision. It assumes that the buying decision is approached as a problem solving activity and that the consumer is being rational throughout the process. It is widely used as the default theory by marketers and sales professionals when structuring campaigns. It does not however accurately describe the process that occurs during extreme impulse or irrational purchases, which are both, almost intangible processes. For the purpose of this exercise, we will assume that the responsible purchase of alcohol is approached, both rationally and thoughtfully. Diagram 2. 0 – The Buying Process. Source: Marketing Communications, by John Egan. 2007) Step 1 of the process is the â€Å"Problem Recognition†. This is the identification of a need, such as â€Å"I am hungry, therefore I need to eat†. It can however be very complex and the consumer may require education or informing before recognising a problem exists, such as a dentist telling you, you need a filling, even though you hadnâ₠¬â„¢t felt any pain in that tooth. Marketers can exploit this step by feeding information to consumers for goods and services, they hadn’t realised they needed. Step 2 of the process is the â€Å"Information Search†. This is when an individual has identified a need but may need to research to find the right solution. For example, if a student identifies a need for a computer, but has a limited budget, he or she might research information to identify the best option for the budget they have. This step can skipped if the consumer has enough knowledge, regarding the possible solutions. Step 3 of the process is â€Å"Evaluation†. This is when more than one option is available to solve the identified need, and the consumer wants to experience these before purchasing. An example would be someone test driving multiple cars before purchasing one. Effectively they will all satisfy the same need, but the consumer wants to know what the experience is, before making the decision. This step can skipped if the consumer has previous experience or is happy with a certain product or service beforehand. Step 4 of the process is â€Å"Decision†. This is simply the final choose for a solution to the identified need, after weighing up all options. Again, a consumer can move directly to this step from â€Å"Problem Recognition† if enough prior knowledge exists. Step 5 of the process is â€Å"Purchase†. This is when the decision is executed and the goods or services are acquired. Step 6 of the process is â€Å"Post-Purchase Evaluation†. This is when you access you satisfaction with your product or service after you have acquired it. If a great experience is had, it will lead to a higher likelihood that you will purchase that product or service again. Applying the theory Table 2. 0 is an application of the above theory, for an individual going through the buying process at both a club and supermarket. Buying Process Step| Nightclub or Pub| Supermarket| Problem Recognition| * A want to let loose. * A need for confidence. * A desire to fit in or stand-out. An aspiration to impress. | * Alcohol for cooking. * Thoughts of a night in. * A desire to relax and unwind. * Drinks for guests and friends. * Cheap drinks before going out. | Information Search| * Advertisement around the club. * Bottles behind the bar. * Drink cocktail menus. * What others are drinking. * Peer and/or social pressure. | * The label on the bottle. * Prices and special offers. * Staff knowledge. | Evaluation| * Tasting a friends drink. * Design of the bottle. * Recognition of a brand. | * Description on label. * Design and quality of bottle. Alcohol percentage. * Brand recognition. | Decision| * Information processed and decision made. | * Information processed and decision made. | Purchase| * Majority of exchanges in cash. | * Majority of exchanges by credit card. | Post-Purchase Evaluation| * Did that get me drunk? * Did I like the taste? * Do I want another one? * Did it give me a hangover? | * Did I like the taste? * Was it good value? * Will I buy it again? * Did it get me to the desired level of drunkenness? | Table 2. 0 – The Buying Process of Alcohol in Different Environments. What this application of theory shows, is that there are different factors in play when buying alcohol in a club or pub compared to a supermarket, but the process remains the same. These factors are different mostly due to the environment, information availability, the individual’s intent and marketing strategies. If selling a drink in a club or pub it is more important for your drink to be seen as â€Å"cool† socially and price is less of a factor whereas if selling in a supermarket, your drink needs to be competitively priced yet still demonstrate a level of quality. 3. 0 Question 2 Q. Detail the individual and group influences that are likely to affect someone’s choice of drink brand? A. The Theory Diagram 3. 0 demonstrates the individual and group influencing factors when making a buying decision. Diagram 2. 1 – Factors affecting buying decisions. (Source: Marketing Communications, by John Egan. 2007) Our strongest influences when making a buying decision are our internal beliefs and values. These include Attitude, Perception, Learning, Memory and Motivation. The next in terms of influencing power are Primary Groups. Primary groups are made up of close friends, family and people who you respect. You are affected by these groups by the opinions and values they hold. The next group in terms of influencing power is the Secondary Group. This group is made up of people you know but not closely, or people who you may aspire to be like. Lastly there are influences depending on your Culture, Race or Religion, that will affect your decision when buying something. There are also External factors that include things that are beyond your control, such as Fashion, Law, Time ect. So how do these factors affect someone when buying an alcoholic drink? Well if I was out with my family, I would be unlikely to order shots, as they would not approve, whereas if I was out with close friends, then this would be the opposite. The secondary group has the same effect, but is less powerful in its influence. 4. 0 Question 3 Q. Explain the roles of the various marketing activities described in this case in influencing consumer behaviour. A. In 2000 Bacardi spent ? 14m on a campaign to promote their brand â€Å"Bacardi Breezer†. The reason to do this is to influence people decisions when making a buying decision. Bacardi’s first large campaign was in 1999 when they spent ? 5. 6m. The campaign was headlined with the slogan â€Å"there’s Latin spirit in everyone† aimed at the 18-24 year old market. This campaign was created to give the brand an exotic, cool to be seen drinking appeal and was aimed at the demographic that would most likely be drinking in an environment where these factors we important in their buying decision. This campaign established Bacardi Breezer as one of the major players in the alco-pop industry. Bibliography * John Martin, 2010. Organizational Behaviour Management. 4th Revised edition Edition. South Western Educational Publishing. * John Martin, 2004. Organizational Behaviour And Management. Edition. Thomson Learning. * Laurie J. Mullins, 2006. Essentials of Management and Organisational Behaviour. Edition. FT Press. * Isabel Briggs Myers, 1998. Introduction to Type: A Guide to Understanding Your Results on the Myers-Briggs Type Indicator. 6th Edition. Center for Applications of. * Adrian Furnham, 2008. Personality and In telligence at Work: Exploring and Explaining Individual Differences at Work. 1 Edition. Routledge. * Stephen P. Robins, 2010. Organizational Behaviour. 1 Edition. Pearson Books. * John Ivancevich, 2010. Organizational Behavior and Management. 9 Edition. McGraw-Hill/Irwin How to cite Marketing and Buying Decision, Papers