DIFFERENCE BETWEEN SELLING & MARKETING CONCEPTS.pptx

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1. DIFFERENCE BETWEEN SELLING & MARKETING CONCEPTS AND BY: Gelomie Surigao Consumers Behavior

2. DIFFERENCE BETWEEN SELLING & MARKETING CONCEPTS In general, we use ‘marketing’ and ‘selling’ as synonyms but there is a substantial difference between both the concepts. It is necessary to understand the differences between them for a successful marketing manager Selling has a product focus and mostly producer driven. It is the action part of marketing only and has short term goal of achieving market share. The emphasis is on price variation for closing the sale where the objective can be stated, as “I must somehow sell the product”.

3. Consumer’s Behavior - is about the behavior of consumers in different situations. However, there are various definitions of consumer behavior. Consumer behavior are those actions directly involved in obtaining, consuming, and disposing of products and services, including the decision process that precede and follow these actions.

4. Importance of Consumer Behavior Studying consumer behavior is important to help the marketers understand what influences consumer’s buying decisions. By understanding how consumers decide on a  product, they can fill-in the gap in the market and identify the products that are needed and that are obsolete. It also helps marketers to decide how to present their products in a way that generates maximum impact on consumers The following are several importance of consumer buying behavior:

5. 1. Consumer Differentiation . Consumers differentiation will help to tailor your strategies to the needs of varying customers groups. When consumer differentiation is done, you can expand the width and breadth of your services. You will be able to effectively serve a wider group of people. 2. Retention of Consumers it is very evident that creating customer and retaining them is very important.This can be done only by understanding and paying attention towards the consumer’s  buying behavior. 3. Design Relevant Marketing Program Understanding consumer behavior allows you to create effective marketing campaigns Furthermore, the same motive can be utilized in advertising media to stir the desire to make a purchase. Moreover, marketers should take decisions regarding the brand logo, coupons, packing and gifts on the basis of consumer behavior.

6. 4. Predicting Market Trend Consumer behavior analysis will be the first to indicate a shift in market trend. For example, the recent trend of consumers is towards environment friendliness and healthy food. This changing market trend was observed by many brands including McDonalds. Based on the consumer behavior, McDonald’s brought healthy food options.  By conducting consumer behavior study, a company saves a lot of resources that might otherwise be allocated to produce a product that will not be sold in the market. 5. Competition One of the most important reasons to study consumer behavior is to find out answers to some of the questions: • Is the consumer buying from your competitor? •Why is a consumer buying from your competitor? •What features attracts a consumer to your competitor products? •What gaps are your consumers identifying in your products when compared to your competitors? Studying consumer behavior facilitates in understanding and facing competition. Based on consumers’ expectations, your brand can offer competitive advantages.

7. 6.Innovate New Products Companies consistently strive hard to improve the success rate of their new products or new ideas. One of the most important ways is to conduct sound and thoughtful consumer behavior study. 7. Stay Relevant in the Market When the world is changing as rapidly as it is happening today, the biggest challenge we all face is staying relevant to our target market. And do you know the main reason behind the rapid changes? It is the ever-changing behavior of the consumers. Today’s consumers have greater choices and opportunities, which mean s they can easily switch to a company that offers better products and services. 8. Improve Customer Service Consumers require different levels of customer service, and understanding the differences within your customer base will help you provide the most appropriate service for individual needs.

8. Model of Consumer Behavior Through research and observation, several models have been developed that help further explain why consumers make decisions. Black-box model  Is based on external stimulus-response, meaning something triggers the consumer to make buying decisions that are influenced by many factors, including marketing messages, sampling, product availability, promotions, and price. When influenced by the P ersonal-variable Model, Consumers make decisions based on internal factors. These internal factors may include personal opinions, belief systems, values, traditions, goals, or any other internal motivator. The third consumer behavior model is the C omplex M odel. It considers both internal and external variables

9. Factors Affecting Consumer Behavior 1. Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. 2. Culture.  Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. 3. Subculture. Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups, etc. Marketers can use these groups by segmenting the market into various small portions. 4. Social Class.   Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way, marketing activities could be adapted according to different social classes. It should be noted that social class is not only determined by income but there are various  otherfactors such as: wealth, education, occupation, etc

10. Factors Affecting Consumer Behavior 5. Social Factors Social factors also impact the buying behavior of consumers. The important social factors are reference groups, family, role, and status. 6. Reference group.   Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example : if the product is visible such as dress, shoes, car, etc. then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge, or other characteristics). 7. Family.  Buyer behavior is strongly influenced by the member of a family. Therefore , marketers are trying to find the roles and influence of the husband, wife, and children. If the buying decision of a particular product is influenced by wife, then the marketers will try to target the women in their advertisement. It should be noted that buying roles change with change in consumer lifestyles.

11. 8. Roles and Status.  Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization, etc. to which he belongs. For example: a woman is working in an organization as a finance manager  –   she is playing two roles, one of finance manager and other of mother. Therefore, her buying decisions will be influenced by her role and status. 9. Personal Factors Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are lifestyle, economic situation , occupation, age, personality, and self-concept. 10. Age.  Age and lifecycle have potential impact on the consumer buying behavior. It isobvious that the consumers change the purchase of goods and services with the passage oftime . Family lifecycle consists of different stages such young singles, married couples,unmarried couples, etc. which help marketers to develop appropriate products for eachstage . 11. Occupation. The occupation of a person has significant impact on his buying behavior.For example, a marketing manager of an organization will try to purchase business suits, whereas a low-level worker in the same organization will purchase rugged work clothes.

12. 12. Economic situation. Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high, then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. 13. Lifestyle. Lifestyle of customers is another important factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expresses by the things in his/her surroundings. It is determined by customer interests, opinions, activities, etc. and shapes his whole pattern of acting and interacting in the world 14. Personality.  Personality changes from person to person, time to time and place to place. Therefore, it can greatly influence the buying behavior of customers. Personality is not what one wears, rather it is the totality of behavior of a man in different circumstances. 15. Psychological Factors There are four important psychological factors affecting the consumer buying behavior. These are: 16. Motivation. The level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs, etc. The nature of the needs is that some of them are most persuasive while others are least persuasive. Therefore, a need becomes a motive when it is more persuasive to direct the person to seek satisfaction.

13. 17. Perception. Selecting, organizing, and interpreting information in a way to produce ameaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion,  andselective retention. In case of selective attention, marketers try to attract the customer’s attention. Whereas, in case of selective distortion , customers try to interpret the information in a way that will support what the customers already believe. Similarly, incase of selective retention, marketers try to retain information that supports their beliefs. 18. Beliefs and Attitudes. Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore, marketers are interested in them. Marketers can change the beliefs andattitudes of customers by launching special campaigns in this regard.

14. The best preparation for tomorrow is doing your best today   - H. Jackson Brown, Jr.