Consumer Buying Decision Process - PDF

MARKETING THEORIES:
PART B

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
1. INTRODUCTION.......................................................................................................................1
A. Purpose of the report..........................................................................................................1
B. Organisation background...................................................................................................1
2. Industry and competitor’s analysis..............................................................................................1
A. Industry Analysis...............................................................................................................1
B. Competitor Analysis..........................................................................................................1
3. Customer segments......................................................................................................................1
A. Segmentation 1..................................................................................................................2
B. Segmentation 2..................................................................................................................2
4. Targeting Strategies.....................................................................................................................2
5. Positioning Strategies...................................................................................................................2
6. 7 P's in the relevant marketing conditions..................................................................................3
Illustrate the consumer buying decision process and the dynamics of what influences the
consumer buying decision......................................................................................................4
Demonstrate information literacy and report writing skills...................................................5
7. CONCLUSION............................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
Marketing is the process of exchange of good and services between marketers and their
potential customers. It involves researching, selling, promoting and distributing seller's product
or services. The process of segmentation of market into parts has two main purposes i.e. effective
allocation of resources and to serve better to the consumers according to their taste.
1. INTRODUCTION
A. Purpose of the report
The report will cover market segmentation, consumers buying behaviour, five types of
purchasing process and influencers of their buying decision. Apart from this it will discuss
marketing theories in relevant conditions.
B. Organisation background
Star City Casino, is the second largest hotel in Australia with two gaming floors, 7
restaurants and 350 rooms. The Star Hotel also provide traditional casino games, as well as
electronic games.
2. Industry and competitor’s analysis
A. Industry Analysis
Industry analysis is a tool that assist a company to know its position in relation to other
companies that are serving similar products. The Star hotel industry analysis will help them to
create a competitive strategy that best deal against the competitive forces. By understanding
these competitive forces, The Star hotel can evaluate its strengths and weaknesses, identify its
position in the industry, and emphasize areas where trends indicate the significance as either
opportunities or threats.
B. Competitor Analysis
Competitor analysis is a technique used by companies to evaluate its outside competitors.
It helps organisations to know about their competitor’s strengths and weaknesses and then they
can use that information to make improvements in the company.
3. Customer segments
Market segmentation: - it is a concept of dividing the market into smaller sub-parts
consisting of consumers with similar taste, preference and demand (Hanlon, 2018). Star City
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Casino will segment market on the basis of gender, age, their income, occupation and marital
status.
A. Segmentation 1
Demographic segmentation is done on certain features of the customers such as, gender,
age, income, education, status and occupation. It is more efficient when The Star hotel wants to
target multiple segments at a time. For example, Star City Casino mainly focus on customers that
prefer luxury lifestyle and accordingly charges prices.
B. Segmentation 2
Psychological segmentation divides customers depending on the following attributes;
their values, personality, behaviour, and their thinking. Star City Casino target those individuals
who like to express their high status (Dibb, 2017).
4. Targeting Strategies
It is the process of selection of the target market by marketers from the entire market is
known as target marketing. Basically it consists of buyers to whom sellers want to satisfy and for
whom goods are created. There are 2 simple steps for targeting market; first is evaluation of
market segmentation and second is selecting which market segment to enter. Star City Casino
may also use following methods for market targeting:
 single segmentation concentration
 selective specialisation
 product specialisation
 market specialisation
 full market coverage (Daellenbach, Parkinson and Krisjanous, 2018)
5. Positioning Strategies
It is the process in which marketers create an image of their brand in minds of customers
by positioning them at the right place, is known as positioning process. After, market
segmentation and selection of the target market, company with the help of proper positioning of
their products in that target market will help them to create first impression of their brand.
Marketers follow these steps to product positioning: -
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 Identify and understand their target customers.
 Identify the features and benefits of their own products.
 Identify their competitors in the existing market.
6. 7 P's in the relevant marketing conditions
1. Product: - the goods or service of Star City Casino should be such that it should achieve
customer's satisfaction level. Product's features, quality and quantity must match its price
paid by consumers.
2. Place: - marketer must select the best location for product, so that the customers could
easily find it. They may place their products at high street, e-commerce or may sell it
online.
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Illustration 1: POSITION OF THE HOTEL

3. Price: - the product's price must match its characteristics to avoid customer's
dissatisfaction. It has been seen that, many customers are usually happy to pay extra for
products which works really well for them.
4. Promotion: - marketers use different promotional techniques such as; advertising,
personal selling, social media marketing, etc. to promote their brand. Star City Casino
must use advertising, social media, publication sources to promote their gaming and other
facilities (Hanlon, 2018).
5. People: - here people refers to the staff members and service delivery person that work
for seller's company. Hence, hiring right people for these services is very essential for
companies (Dahiya and Gayatri, 2018).
6. Process: - it involves delivery of marketer's product to its customer and providing after
sales services. Having a good process involves repeated delivery if the customer is not
available, and saving time & money by increasing efficiency.
7. Physical evidence: - every service is consisted of some physical element. It may include;
physical environment, packaging and branding.
Illustrate the consumer buying decision process and the dynamics of what influences the
consumer buying decision.
Buyers decision process involves 5 stages: -
 Need for recognition: - the first step in buying process is need for recognition. Star City
Casino first must figure out customer's need as well as how they can fulfil those needs
(Wirtz and Lovelock, 2016.0.
 Information search: - under this stage buyer will collect information regarding a
particular brand or product from their friends, through advertising, public sources and
internet.
 Evaluation of alternatives: - this is the third stage of buying process in which costumers
evaluate for various options of products, based on quality, quantity and features.
 Purchase decision: - after accomplishing the first 3 stages of buying process, customers
finally buy the most suitable product but there are certain factors which may delay
purchase decision; attitude of others and unexpected situational factors.
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 Post purchase behaviour: - after the buyer has purchased product, he will either be really
happy with the product or dissatisfied. This satisfaction and dissatisfaction depends upon
his expectation and product's features.
Factors affecting consumer's buying behaviours are:
 Psychological - perception learning, motivation, beliefs and attitudes.
 Personal – occupation, age, lifestyle, personality.
 Social – status, family and reference groups (Luo, Roach and Jiratchot, 2016).
 Cultural – social class system.
Demonstrate information literacy and report writing skills
Information literacy
It is an individual's ability to critically think and make balanced judgements regarding
any content. Information literacy is basically a set of abilities required by an individual to find
out when the information is needed and to locate, evaluate, and efficiently use it. This is also
necessary in the current environment of changing technology. An individual with information
literacy is able to:
 Recognise the extent of information needed.
 Effectively access the needed information.
 Evaluate the information sources.
 Effectively use the collected information to accomplish purpose.
Report writing skills
Report writing skills is the best form of an individual's impression of writer as well as the
organization. It is basically a well organised writing process that requires a set of special skills,
research and details. A report is a well-planned document which evaluates a subject and which
includes; the record of an order of events, explanation of the implications, discussion of
consequences, conclusion and references. Good report writing involves suitable title, reliable
information, promptness, consistency, precise and accurate.
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7. CONCLUSION
The report concluded that, marketing is the process of exchange of good and services
between marketers and their potential customers It involves researching, selling, promoting and
distributing seller's product or services. Segmentation is a concept of dividing the market into
smaller sub-parts consisting of consumers with similar taste, preference and demand. Further it
concluded that, information literacy is an individual's ability to critically think and make
balanced judgements regarding any information. Report writing skill is basically a well
organised writing process that requires a set of special skills, research and details.
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REFERENCES
Books & Journals
Dibb, S., 2017. Changing Times for Social Marketing Segmentation. In Segmentation in Social
Marketing (pp. 41-59). Springer, Singapore.
Daellenbach, K., Parkinson, J. and Krisjanous, J., 2018. Just How Prepared Are You? An
Application of Marketing Segmentation and Theory of Planned Behavior for Disaster
Preparation. Journal of Nonprofit & Public Sector Marketing, pp.1-31.
Wirtz, J. and Lovelock, C., 2016. Services Marketing: People, Technology. World Scientific
Publishing Company.
Luo, A., Roach, S. and Jiratchot, C., 2016. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention. Journal of Supply Chain
Management. 9(2).
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L. and Polegato, R., 2014. Consumer
behavior: Buying, having, and being (Vol. 10). London: Pearson.
Dahiya, R. and Gayatri, 2018. A Research Paper on Digital Marketing Communication and
Consumer Buying Decision Process: An Empirical Study in the Indian Passenger Car
Market. Journal of Global Marketing. 31(2). pp.73-95.
Mooney, H. and Dempsey, P., 2018. Find and Cite Three-to-Five Sources: Applying the
Sociological Imagination to Critical Information Literacy.
Berninger, V., Abbott, R., Cook, C.R. and Nagy, W., 2017. Relationships of attention and
executive functions to oral language, reading, and writing skills and systems in middle
childhood and early adolescence. Journal of learning disabilities. 50(4). pp.434-449.
Online
Hanlon, A., 2018. The Segmentation, Targeting and Positioning Model. [Online]. Available
through:<https://www.smartinsights.com/digital-marketing-strategy/customer-
segmentation-.,>.targeting/segmentation-targeting-and-positioning/>.
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