The most formal definition of

marketing is __________.
(a) meeting needs profitably
(b) identifying and meeting
human and social needs
(c) the 4Ps (Product, Price,
Place, Promotion)
(d) an organizational function
and a set of processes for
creating, communicating,
and
delivering, value to
customers, and for managing
customer relationships in
ways that
benefit the organization and
its stake holder
The most formal definition of
marketing is __________.
(a) meeting needs profitably
(b) identifying and meeting
human and social needs
(c) the 4Ps (Product, Price,
Place, Promotion)
(d) an organizational function
and a set of processes for
creating, communicating,
and
delivering, value to
customers, and for managing
customer relationships in
ways that
benefit the organization and
its stake holder
4. The most formal definition
of marketing is __________.
(a) meeting needs profitably
(b) identifying and meeting
human and social needs
(c) the 4Ps (Product, Price,
Place, Promotion)
(d) an organizational function
and a set of processes for
creating, communicating,
and
delivering, value to
customers, and for managing
customer relationships in
ways that
benefit the organization and
its stake holder
4. The most formal definition
of marketing is __________.
(a) meeting needs profitably
(b) identifying and meeting
human and social needs
(c) the 4Ps (Product, Price,
Place, Promotion)
(d) an organizational function
and a set of processes for
creating, communicating,
and
delivering, value to
customers, and for managing
customer relationships in
ways that
benefit the organization and
its stake holder
 BASICS OF MARKETING

What is Marketing?

According to the American Marketing Association, marketing is the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large. In layman’s terms, marketing is the practice
of communicating about goods, services, and company mandates to the public at large. It's about
meeting consumer wants, increasing customer satisfaction, introducing new products, and overall
achieving connections to consumers. In the case of companies that are selling a new product or
sharing a service, marketing is used to share information about that quality product and how it
can support consumer wants and needs. But marketing can also be used long-term to
communicate a company’s mandate, establish their brand, and build trust.
Evolution of Marketing

Marketing has evolved through several stages, from Marketing 1.0 to Marketing 6.0, with each
stage focusing on different aspects of the marketing mix:

 Marketing 1.0: Focuses on the product and its functionality.

 Marketing 2.0: Focuses on emotions and creating emotional connections with

consumers.

 Marketing 3.0: Focuses on the brand's purpose and spirit in society.

 Marketing 4.0: Integrates technology and digital tools into marketing.

 Marketing 5.0: Focuses on creating positive experiences for customers.

 Marketing 6.0: Integrates technology with human elements to create a seamless

experience for customers. This era is also known as the age of boundaryless marketing.

Marketing 6.0 will also address global concerns and evolving customer expectations. It will also
use Meta Marketing, which blurs the lines between the digital and physical worlds.

Micro V/S Macro Marketing

Micro-marketing and macro-marketing are both strategies that companies use to identify
customer needs and develop products and services that meet those needs. The main difference
between the two is the target audience: micro-marketing focuses on a small, specific group of
people, while macro-marketing focuses on a larger audience:

Micro-marketing
Targets a small, specific group of people, such as those in a particular profession or with a
specific identifying characteristic, like a ZIP code or job title. The goal is to attract a specific
type of customer and establish a long-term relationship with them.

Macro-marketing
Targets a larger audience, including people in any profession. The goal is to reach as many
people as possible, and to market products and services equally to all customers.
Marketing Concepts: Top 5 Important Concepts of Marketing – Explained!

Some of the most important concepts of marketing are as follows: 1. Production Concept 2.

Product Concept 3. Selling Concept 4. Marketing Concept 5. Holistic Marketing Concept.

1. Production Concept:
It is the oldest concept in business. It holds that consumers prefer products that are widely

available and inexpensive. Thus, managers concentrate on achieving high production efficiency,

low costs and mass distribution.

2. Product Concept:

The product concept holds that consumers favour those products that offer highest quality

performance or innovative features. Thus, managers focus on making superior products.

However, a new or improved product will not be successful unless the product is priced,

distributed, advertised and sold properly.

3. Selling Concept:

This concept holds that consumers and business, if left alone, will ordinarily not buy the

products. Thus, organizations must undertake aggressive selling and promotion efforts. It also

believes that the consumers have the opportunity to choose from many alternatives.

Their aim is to sell what they make rather than make what the market wants. However,

marketing based on hard selling carries high risk. This is because consumer’s expectations and

consumerism is on the rise. Thus, the study of consumer wants rather than aggressive promotion

is the need of the hour.

4. Marketing Concept:

With the emergence of the marketing concept, business shifted to a customer-centred ‘sense and

respond’ philosophy instead of a product-centred ‘make and sell’ philosophy. Theodore Levitt

drew a difference between the selling and marketing concepts to emphasize on the need to shift

to the marketing concept.

Selling:

i. It focuses on the needs of the seller.

ii. Its aim is to convert product into cash.

Marketing:

i. It focuses on the needs of the buyer.

ii. Its aim is to associate with creating, delivering and final consumption of the product.

Thus, the companies understanding and meeting customers’ expressed needs are likely to be

successful. However, this results in organized resistance. Departments such as production,

finance and HRD believe that a stronger marketing function threatens their power in the

organization.

Marketers argue that marketing is a core function and needs top priority as it generates revenue,

and the other functions have to support them. However, what is necessary is to put customers at

the centre of the company for survival and sustainability.

5. Holistic Marketing Concept:

New marketing and business practices that have appeared in the last decade have given rise to

the holistic marketing concept. According to Kotler and Keller, it is an approach to marketing

that attempts to recognize and reconcile the scope and complexities of marketing activities.
Holistic marketing is a marketing strategy that focuses on the whole business as one entity. In a

holistic marketing strategy, all the company's departments and all the different components of the

marketing strategy work together to accomplish shared goals and support the company's purpose.

Figure 1.1 shows the four broad themes characterizing the holistic marketing concept.

Internal Marketing:

It ensures that everyone accepts marketing principles.

It takes place at two levels:

1. Various marketing functions—sales force, advertising, customer service, product management

and marketing research—must work together.

2. Each department in the company must think from the customer’s point of view.

Integrated Marketing:
According to Kotler, the four P’s represent the seller’s view of marketing tools available.

However, Robert Lauterborn suggests that the seller’s P’s correspond to the customer’s C’s.

Thus, a marketer’s task is to devise marketing activities and assemble fully integrated

programmes to deliver value for consumers.

Four P’s Four C’s

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication

Social Responsibility or Societal Marketing Concept:

This concept calls upon the marketers to build social and ethical considerations into their

marketing practices. They must balance the conflicting criteria of company profits, consumer

wants, customer satisfaction and PR.

Thus, the cause-related marketing practice is gaining importance. Pringle and Thompson define

this as, ‘an activity by which a company with a product for marketing builds a relationship or

partnership with a cause or causes for mutual benefit’. Thus, cause-related marketing practice is

gaining importance.
The concept believes that customers will increasingly look for signs of such good corporate prac-

tices while taking decisions on brand preferences. This is more long lasting than emotional and

rational benefits. Thus, the concept of marketing clearly extends beyond the company and the

customer to the society as a whole. Marketers must promote social welfare to prosper in the long

run.

Integrated Marketing Communications (IMC)

As the name suggests, it is a unifier of all aspects of marketing and communication elements
such as public relations, advertising, branding, social media and digital communication, audience

analysis and even some principles of business development. IMC unifies all these elements to

deliver a more focused and strategic approach to brand identity and seamless customer-centric

experience.

For a more holistic approach, IMC should focus on having one key message for a particular

communication campaign. This key message should be replicated in all the communications

coming from the company. There should be consistency in ‘voice’ and appearance of the brand

and all communication platforms need to be in sync and work together for a cumulative effect.
Relationship Marketing:

It has the aim of building mutually satisfying long-term relationships with key parties—

customers, suppliers, distributors, detailers, advertising agencies and other marketing partners—

in order to earn and retain business. Developing strong relations require understanding the needs,

capabilities and resources of different groups. Thus, companies create a marketing network.

Functions of Marketing

Marketing is a very broad term and cannot be explained in a few words. Marketing is an essential
business function that helps in making the customers aware of the products or services that are
offered by a business.
The definition of marketing as defined by the American Marketing Association is as follows.
“Marketing is the process of planning and executing conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives.”
Functions of marketing are those aspects that define the practice of marketing and are being
discussed in detail in this article.
The following are the functions of marketing:
1. Identify needs of the consumer: The first steps in marketing function is to identify the needs
and wants of the consumer that are present in the market. Companies or businesses must
therefore gather information on the customer and perform analysis on the collected information.
By doing this they can present the product or service that matches closely with the customer
needs and wants.
2. Planning: The next step in marketing function is planning. It is considered very important for
a business to have a plan. The management should be very clear about the company objectives
and what it wishes to achieve from the created plan.
The company should then chalk out a timeline that is essential for achieving the objectives.
3. Product Development: After the details are received from the consumer research, the product
is developed for use by the consumers. There are many factors that are essential for a product to
be accepted by the customer, a few factors among the many are product design, durability and
cost.
4. Standardisation and Grading: Standardisation refers to the process of ensuring uniformity in
the product which means that a product developed by a business shall be standard for every
consumer with the same quality and design and this is one of the key aspects that needs to be
maintained by the business.
Grading is referred to as the process of classifying products that are similar in quality and
characteristics. Grading helps in making the customer know about the quality of the product
offered. It helps in making customers understand that the products conform to highest quality
standards.
5. Packing and Labelling: The first impressions of a product are its packaging and the label
attached to it. Therefore, packaging and labelling should be looked after very well. It is a well
known fact that a great packaging and labelling goes a long way in ensuring product success.
6. Branding: Branding is referred to as the process of identifying the name of the producer with
the product. Certain brands are there in the market which have a lot of goodwill and any product
coming from the same brand will be accepted more warmly by the consumers. Although, having
a separate identity for the product can be helpful.
7. Customer Service: A company has to set-up various kinds of customer service based on their
product. It can be pre-sales, technical support, customer support, maintenance services, etc.
8. Pricing: It can be regarded as one of the most important parts of marketing function. It is the
price of a product that determines whether it will be successful or a failure. Some other factors
are market demand, competition, price of competitors.
The company or business should understand clearly that bringing about frequent changes in the
price of a product can lead to confusion in the minds of consumers.
9. Promotion: Promotion is the process of making the customers aware of the product by
presenting it to customers across various channels of promotion and entice them to buy the
product.
The major channels of promotion are: advertising, media, personal selling and promotion
(publicity). An ideal promotion mix will be a combination of all or some methods.
10. Distribution: Distribution refers to the movement of consumer goods to the point of
consumption. A company must ensure that the correct channel of distribution is selected for the
product.
The mode of distribution is dependent on the factors such as shelf life, market concentration and
capital requirements. Proper management of inventory is also essential.
11. Transportation: Transportation is defined as the physical movement of goods from one
place to another. In other words, it is the movement of goods from the place of production to the
place of consumption.
Also, the correct mode of transportation can be selected based on the geographical boundaries of
the market.
12. Warehousing: Warehousing of products creates time utility. It is often seen that there is a
gap between the time a product is produced and the time when it is consumed. Companies like to
maintain the smooth flow of goods even when the products are of seasonal nature. Warehousing
and storing provides the opportunity to provide goods during off season also.
Market Space: Market space is a relatively new concept in marketing which is a virtual market
place. It is an electronic information exchange environment in which the constraints of physical
boundaries are eliminated. A market space is an integration of several market places through
technology(Internet). This is the reason it is also called an electronic market space.

Meta Market: A Meta market will bring all buyers and sellers in one place for one purpose
only. Instead of giving multiple products to one customer, a Meta market brings together
different customers who need not necessarily differentiate between closely related products.
[2]
Meta market is thus, a place, where everything connected with a certain market can be found.
Let's say a car selling in a Meta market would be a website, that sells cars but you will also find
car parts there, add-ons for cars, colours for cars, mechanic's reviews, etc. So Meta market of a
certain market is a market, where you can find everything about that market and everything
about markets that are strongly connected to that market
It can also be said that the combination of various entities within the same industry can be known
as a meta market.

Brick & Click Model: A bricks-and-clicks business, also known as a click-and-mortar shop, is
a business model where merchants run both an online store and a physical retail outlet. The
approach unifies two revenue channels, allowing businesses to expand their client base. It also
opens more avenues for existing customers to make purchases.

4 Types of Consumer Products

Obviously, not every consumer product is the same. As you can imagine, it would be
cumbersome to not distinguish between various product types when developing marketing
strategies. From a marketing perspective, there are actually four different types of consumer
products.
Examples of Convenience Products include products such as bottled water, laundry detergents,
fast food, sugar and magazines. As you can see, convenience products are those types of
consumer products that are usually low-priced and placed in many locations to make them
readily available when consumers need or want them.

Examples of Shopping products include furniture, clothing, used cars, airline services etc. As
you can see, such products are a little more involving: they require more time, thinking and
investment than convenience products.

Examples of Specialty products include expensive cars, professional photographic equipment,

designer clothes etc. A perfect example for specialty products is a Ferrari. In order to buy one, a
certain group of buyers would make a special effort, for instance by travelling great distances to
buy one.

Examples of Unsought products are life insurance and pre-planned funeral services etc

A few other categories of Products

Type # 1. The Differentiated Product:

The differentiated product differs from other similar products or brands in the market. The
differential claimed by the product, may be ‘real’, on account of ingredient, quality, utility, or
service, or it may be ‘psychological’ on the basis of perception of the buyer.

Type # 2. The Customized Product:

Customer specific requirements are taken into account while developing the product. The
manufacturer and the user are in direct contact and the product gets customized as per the
requirements of the customer.

Type # 3. The Potential Product:

The potential product means product for future, it carries all the improvements and finesse
possible, under the given technological, economic and competitive condition. There are no limits
to the ‘potential product’. Only the technological and economic resources of the firm set the
limit.

Type # 4. The Core Product:

It is not the tangible physical product as it cannot be touched. The benefit of the product makes it
valuable to the buyer. For example, in case of a car, the benefit is convenience that is, the ease at
which one can drive and another core benefit is speed. Therefore, a core product is not the actual
product but can be defined as the benefit of the product that makes it useful to the purchaser.
This benefit might be an intangible idea or concept connected with convenience, status or the
ability to achieve a certain task quickly. This benefit gives the product value and meets the needs
of the intended customer.

Type # 5. The Actual Product:

It is the tangible, physical product that can be seen and touched by the buyer, which has some
use. The actual product is what the average person would think of under the generic meaning of
product. Taking the same example of a car, it is the vehicle that you test drive, buy and then
collect is the actual product.

Type # 6. The Augmented Product:

It refers to the non-physical part of the product. It usually consists of added value, for which
premium may or may not be paid. To continue with the example of the car, the augmented
product would be the warranty, the customer service support offered by the manufacturer and
any after-sales service. The augmented product is an important way to tailor the core or actual
product to the needs of an individual customer.

To understand the meaning of core product, actual product and the augmented product, an
example of a camera, can be taken. In case a buyer purchases a camera, the core product would
be the ability to take a high quality picture conveniently, quickly and in a variety of
circumstances. This solves the main problem for the buyer.

The actual product is the camera bought by the customer, which includes attributes such as
brand, style and colour. The augmented product, in this example would include customer service
and warranty in addition to the other features.
Scope of Marketing

Meta Market

Northwestern University’s Mohan Sawhney has proposed the concept of a metamarket to

describe a clusters of complementary products and services that are closely related in the mind of
consumers,but spread across a set of industries. The automobile metamarket consist of
automobiles manufactures, new car and use car dealers, financing companies, insurance
companies, machines, spare parts dealer, service shops, auto magazines, classified auto ads in
Newspaper, and auto site in the internet.

In purchasing a car, a buyer will get involved in many parts of this metamarket, and these create
and opportunities for metamediaries to assist buyer in moving seamlessly through these groups,
although they are disconnected in physical space. One example is
Edmond’s(www.edmunds.com) a website where a car buyer can find the stated features and and
prices of different automobiles and easily click to other sites to search for the lowest price dealer
for financing, for car accessories, and for used car at bargain price. Metamediatories also serve
other metamarket, such as the home ownership market, the parenting 10/22/2019 and baby care
markets, and wedding markets.

Social Responsibility on Marketing

Social responsibility in marketing involves focusing efforts on attracting consumers who want
to make a positive difference with their purchases. Many companies have adopted socially
responsible elements in their marketing strategies as a means to help a community via beneficial
services and products. Social responsibility for an organization generally regards making
decisions and carrying on operations in a manner that creates a positive impact or minimizes the
negative impact upon society at large.

Examples of socially responsible marketing might include:

 Safe product design and development - A company may reduce health impacts through
safe manufacturing methods. Further, the business may lessen the environmental impact
through production methods that reduce waste and employ sustainable materials.

 Treating Customers and Clients Well - This creates a positive social impact among
people. It promotes the positive mental health aspects associated with positive attitudes
and happiness.

 Communicating a Positive Message - Marketers communicate the activities of the

company to the outside world. Community awareness reinforces the importance of
socially responsible activities by a company.

A 2015 Nielsen global report revealed that products using environmentally friendly
packaging were a purchase driver for 41 percent of the respondents. It gets better,
as almost half (45 percent) also considered buying more from an eco-conscious
consumer brand, while 59 percent said health and wellness benefits influenced their
purchasing decisions.
Comparison between Organizational Buying behavior and consumer buying behavior,
The 5 Moments of Truth(MOT) in customer relations

Providing an optimal and satisfying customer experience is essential for brands today. To
achieve this, they must not only provide quality products and services, but also create an
optimized and fluid customer journey. Indeed, a satisfied customer is much more likely to renew
his purchase and to talk about it around him. The customer journey is a series of decisions. Each
decision taken by a customer corresponds to a moment of truth. Determining these different
moments allows developing effective improvement strategies. Moreover, the implementation of
real-time video communication at several points along the journey can help companies deliver an
innovative customer experience.

What is the customer moment of truth?

The notion of “moment of truth” (MOT) is generally used in a marketing and sales context. It
refers to one or more key moments during which a consumer can form an impression of the
brand and its products. This impression can be positive or negative, and therefore play an
important role in the perception of a brand.

Moment of truth (MOT) in marketing is the moment when a customer/user interacts with a
brand, product or service to form or change an impression about that particular brand, product or
service. In 2005 A.G. Lafley Chairman, President & CEO of Procter & Gamble coined two
"Moments of Truth".

The company must be particularly attentive to the different moments of truth because it is there
that the customer forms an opinion that will influence future decisions. They represent moments
where a consumer can be won over and become a customer or conversely be lost, depending
on the response provided by the brand. This concept is therefore very useful for understanding
the overall customer experience and verifying that the experience is in line with or even exceeds
expectations.

The challenge of this concept is twofold. First, it is to avoid dissuading the consumer and
sending him to the competition. Secondly, it is to succeed in convincing them and creating an
attachment to the brand in order to build loyalty.

The 5 moments of truth

In 2005, Procter & Gamble Chairman and CEO Alan George Lafley coined the concept of
“moment of truth”. Initially, only two moments were defined: when a customer buys a product
and when he or she uses it. The company’s objective was to satisfy its customers at these two
levels as a priority in order to build loyalty. Since then, the concept has evolved, and other
moments have been integrated to adapt to today’s customer journey. There are five moments of
truth: <ZMOT, ZMOT, FMOT, SMOT and TMOT.

1/ LESS THAN ZERO MOMENT OF TRUTH (<ZMOT)

The less than zero moment of truth has recently appeared and refers to the moment when
consumers do not yet feel the need to buy a product or service. The company can then carry
out marketing actions (emailing, sponsored content, etc.) even before the customers come to it to
position itself in their minds. This can decrease the likelihood of consumers choosing a
competitor.

2/ ZERO MOMENT OF TRUTH (ZMOT)

The zero moment of truth, coined by Google in 2011, is when a need arises in the mind of the
consumer. When this happens, the consumer will seek information online to find the perfect
solution. A study conducted by IFOP shows that 80% of Internet users say they use the
Internet to get information before buying a product or a service. The sources of information
are varied (brand websites, price comparison sites, social networks, consumer opinions, etc.) and
allow consumers to form an initial opinion.

This moment of truth occurs well before the consumer contacts the brand or buys a product. This
is why it is essential to take care of your e-reputation and to provide all the necessary
elements to convince consumers.

3/ FIRST MOMENT OF TRUTH (FMOT)

The first moment of truth is when a consumer encounters a brand’s product or service for
the first time. A few seconds are enough for the consumer to form a first opinion on the product
and the brand. It is therefore important to deliver the right information and in particular how the
product can meet the customer’s needs. It is during this period that the brand has the ability
to turn a user into a buyer.

4/ SECOND MOMENT OF TRUTH (SMOT)

The second moment of truth is the buying experience. This stage is composed of several
moments of truth:
  Before the purchase of the product, especially when the customer goes to a physical point
of sale;

 After the purchase, especially when the customer is online and has to wait for the
delivery to discover the product;

 Every time the customer uses the product;

 If the customer encounters a problem and calls the brand’s customer service department;

 etc.

The second moment of truth allows customers to see if the product or service lives up to their
expectations. This stage is crucial for a company because it brings together three key elements
of customer loyalty: the quality of the experience, the quality of the customer relationship
and the quality of the customer service. In conclusion, the second moment of truth, as
experienced, will decide whether or not customers will renew their purchases or remain
subscribed to a service or cancel it.

5/ THIRD MOMENT OF TRUTH (TMOT) or ULTIMATE MOMENT OF TRUTH (UMOT)

The third moment of truth, also called the ultimate moment of truth, is when customers share
their opinions about the product or service. They share their experiences in a positive or
negative way based on the product’s ability to meet their needs, as well as the company’s
efforts to provide an enjoyable experience throughout the buying process. If their opinions
are positive and shared (via recommendations, comments, ratings, word-of-mouth, etc.),
customers will contribute to the recruitment of new customers as well as to the company’s e-
reputation.

Actual Moment of Truth was identified by Amit Sharma, Founder & CEO of Narvar, to
describe the new post-purchase experience gap created by the advent of online shopping, after a
consumer has made a purchase but before they've received the product.
Special Product Life Cycle Forms/Types

We can also apply the Product Life Cycle stages to styles, fashion and fads. Their product life
cycles are somewhat special.

A style is a basic and distinctive mode of expression. For instance, styles appear in homes (e.g.
country cottage, functional art deco), clothing (e.g. formal and casual) and art (e.g. realist,
surrealist and abstract). A style may last for generations, but usually passes in and out of vogue.
Therefore, a style’s product life cycle stages show several periods of renewed interest.

A fashion is a currently popular or accepted style in a certain field. For instance, the more formal
‘business attire’ look in the 1980’s gave way to the ‘business casual’ look of the 2000’s.
Fashions tend to grow slowly and remain popular for a while, before declining slowly.

Fads are temporary periods of unusually high sales driven by consumer enthusiasm and
immediate product or brand popularity. A fad may be part of an otherwise normal product life
cycle, passing through the product life cycle stages. But at a certain point, sales raise
unexpectedly, but drop afterwards equally quickly. The best example is the Rubik’s Cube.
Why is Consumer Behavior important?

Studying consumer behavior is important because it helps marketers understand what influences
consumers’ 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 the products that are obsolete.

Studying consumer behavior also helps marketers decide how to present their products in a way
that generates a maximum impact on consumers. Understanding consumer buying behavior is the
key secret to reaching and engaging your clients, and converting them to purchase from you.

A consumer behavior analysis should reveal:

 What consumers think and how they feel about various alternatives (brands, products,
etc.);

 What influences consumers to choose between various options;

 Consumers’ behavior while researching and shopping;

 How consumers’ environment (friends, family, media, etc.) influences their behavior.

Consumer behavior is often influenced by different factors. Marketers should study consumer
purchase patterns and figure out buyer trends.
In most cases, brands influence consumer behavior only with the things they can control; think
about how IKEA seems to compel you to spend more than what you intended to every time you
walk into the store.

So what are the factors that influence consumers to say yes? There are three categories of factors
that influence consumer behavior:

1. Personal factors: an individual’s interests and opinions can be influenced by

demographics (age, gender, culture, etc.).

2. Psychological factors: an individual’s response to a marketing message will depend on

their perceptions and attitudes.

3. Social factors: family, friends, education level, social media, income, all influence
consumers’ behavior.

Types of consumer behavior

There are four main types of consumer behavior:

1. Complex buying behavior

This type of behavior is encountered when consumers are buying an expensive, infrequently
bought product. They are highly involved in the purchase process and consumers’ research
before committing to a high-value investment. Imagine buying a house or a car; these are an
example of a complex buying behavior.

2. Dissonance-reducing buying behavior

The consumer is highly involved in the purchase process but has difficulties determining the
differences between brands. ‘Dissonance’ can occur when the consumer worries that they will
regret their choice.

Imagine you are buying a lawnmower. You will choose one based on price and convenience, but
after the purchase, you will seek confirmation that you’ve made the right choice.

In other words………… Dissonance-reducing buying behaviour occurs when the consumer is

highly involved but sees little difference between brands. This is likely to be the case with the
purchase of a lawn mower or a diamond ring. After making a purchase under such
circumstances, a consumer is likely to experience the dissonance that comes from noticing that
other brands would have been just as good, if not slightly better, in some dimensions. A
consumer in such a buying situation will seek information or ideas that justify the original
purchase.
3. Habitual buying behavior
Habitual purchases are characterized by the fact that the consumer has very little involvement in
the product or brand category. Imagine grocery shopping: you go to the store and buy your
preferred type of bread. You are exhibiting a habitual pattern, not strong brand loyalty.

4. Variety seeking behavior

In this situation, a consumer purchases a different product not because they weren’t satisfied
with the previous one, but because they seek variety. Like when you are trying out new shower
gel scents.
Customer Loyalty Ladder
Process of Marketing

The marketing process is a strategic plan that helps a company create, communicate, and deliver
value to customers. It's a key part of a business plan that helps companies: Identify their target
audience, Create a marketing strategy, Measure the success of their efforts, Build customer
loyalty, and Set and meet financial goals.
Here are some steps in the marketing process:
Understand the marketplace and customers
Research the market to understand the size of the industry, current trends, and projected
growth. Also, research your customers, including their demographics, income, and purchasing
power.
Develop a marketing strategy
Create a plan to reach prospective customers and turn them into paying customers.

Deliver customer value

Create products and services that meet the needs and wants of your target market.

Grow profitable customer relations

Focus on building relationships with customers.
Capture customer value

Create high customer equity, which is the potential profits a company can earn from its
customers.

Some other things to consider in the marketing process include:

Target marketing: Segment your audience into smaller groups and send tailored messages to
each group.
Content creation: Create unique, engaging, and helpful content for your audience.
Experimentation: Try different types of content to see what resonates best with your audience.

Services (definition in marketing)

In marketing, a service is an intangible activity or benefit that is offered for economic value.
Services are different from goods because they are non-physical and cannot be owned by the
consumer. Services are intangible, value-added activities that a company provides to its
customers. They are the core of what a company does to create value for its customers and
generate revenue. Services can be physical or digital. Physical services are those that you can
touch, feel, or see, such as a haircut or a massage.

A service is an activity or a series of activities which take place in interactions with a contact
person or a physical machine and which provides consumer satisfaction
Services marketing is a specialized branch of marketing which emerged as a separate field of
study in the early 1980s, following the recognition that the unique characteristics of services
required different strategies compared with the marketing of physical goods.

Goods

Physical products that customers can purchase and own. Goods can be tangible, like a book or
a bed, or virtual, like an electronic book. Goods can be returned, transferred, and replicated.

Goods and services are two important types of purchases people make. A good is a tangible or
physical product that someone will buy, tangible meaning something you can touch, and a
service is when you pay for a skill. A service is something intangible, which can't be physically
touched or stored.

Customer experience (CX)

Customer experience (CX) is the overall perception and feelings that customers have about a
brand's products and services. It's the result of every interaction a customer has with a business,
from marketing to sales to customer service.

CX is important because it impacts a customer's decision to keep coming back to a business. In

fact, according to Emplifi, 86% of consumers will leave a brand they once liked after only two to
three bad experiences.

Some components of customer experience include:

Customer journey mapping

A framework that shows the customer's experience, including their feelings, motivations, and
questions.

Customer experience audit

A systematic evaluation of touchpoints and processes to make sure they align with customer
expectations.

Customer experience management (CEM)

The practice of designing and reacting to customer interactions to meet or exceed their
expectations.

Some ways to create great customer experiences include: Providing responsive real-time support,
maintaining seamless Omni channel experiences and messaging, Focusing on customer
satisfaction, Managing customer relationships, and Considering touchpoints and channels