Marketing Environment and Buyer Behavior: Otago Polytechnic

This report provides an in-depth analysis of the marketing environment and buyer behavior, specifically focusing on Otago Polytechnic. It begins by exploring the micro and macro environmental factors affecting the institution, utilizing tools such as PESTLE and SWOT analyses to assess politi...Read More

Running head: INTRODUCTION TO MARKETING
1
Introduction to marketing
Name:
Institution:

INTRODUCTION TO MARKETING 2
Abstract
Otago Polytechnic is regarded as one of the most successful, creative and innovative
polytechnics not just within the county but in many places in the world. Transformation of
business models of institutes and the changes in curriculum delivery technology is really
influencing the institute. The paper has used different marketing tools to discuss the macro and
micro-environmental factors affecting the Otago polytechnic. Reference groups are very
important groups which affects the consumer buying process as they offer guidance to what is
appropriate and acceptable behavior. The paper has discussed various factors which affect the
buying process and also related the routine with someone making decision to join Otago
polytechnic.

INTRODUCTION TO MARKETING 3
Table of contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................5
MARKETING ENVIRONMENT...................................................................................................5
Micro-environmental factors and organisation’s internal environment.......................................5
Internal factors..........................................................................................................................5
Micro factors............................................................................................................................6
Macro-environmental factors...........................................................................................................6
Pestle analysis..............................................................................................................................6
Political.....................................................................................................................................6
Economic..................................................................................................................................6
Social-cultural..........................................................................................................................7
Technological...........................................................................................................................7
Legal.........................................................................................................................................7
SWOT analysis................................................................................................................................7
Strengths.......................................................................................................................................7
Weakness:....................................................................................................................................8
Opportunities:...............................................................................................................................8
Threats:.........................................................................................................................................8
Ethics and social responsibility.......................................................................................................8
Recommendations............................................................................................................................9
BUYER BEHAVIOUR...................................................................................................................9
Reference groups influence on consumer behavior.....................................................................9
Concept of family life cycle.......................................................................................................10
Social class influence on an individual consumer.....................................................................11
Self-concept influences on fashion wear choices......................................................................11
Buyer decision making process and need recognition...............................................................11
Characteristics affecting consumer behavior.............................................................................12
References......................................................................................................................................14

INTRODUCTION TO MARKETING 4
Introduction
Under the novel situations such as privatisation, globalisation of the education institutes and
rivalry in higher education industry, several higher learning institutes are embracing a more
business-like strategy to survive and compete in the ever shifting face of the business. The paper
will analysis both macro and micro-environmental factors that would probably be affecting or
would affect the Otago polytechnic in future. The paper will discuss various buying approaches a
consumer need before making a decision to purchase a product. The paper will also try to relate
the consumer buying approaches with someone trying to make decision on joining Otago
polytechnic.
MARKETING ENVIRONMENT
Micro-environmental factors and organisation’s internal environment
Internal factors
Financial burden: even though the institute ranks the second in New Zealand, the institute is still
experiencing burden in operation cost. Millions of dollars have been taken out of the polytechnic
sector over several years resulting in many institutions across the nation unable to sustain their
current level of operation.
Job losses to experienced staff: the economic climate of Otago will be forever damaged as a
result of polytechnics merger. This proposal by the government will result in significant job
losses of amazing capable staff. This merger will directly affect every single person involved
with Otago Polytechnic and individuals within the wider community.

INTRODUCTION TO MARKETING 5
Micro factors
Government regulations: the proposal to merge 16 existing Institutes of Technology and
Polytechnics (ITPs) into a single new body which would take over programme design and
administration has drawn the ire of many in the South, home to the high-performing Otago
Polytechnic and Southern Institute of Technology (SIT). The inevitable bureaucracy inherent in
head office-branch models will seriously compromise flexibility and responsiveness of the
branches, as well as the motivation and abilities of the branches to innovate.
Susceptible to changes in international education market
The ever changing world and conserve resources (Palmer, 2012) (especially demonstrated by the
sustainable practices within Otago Polytechnic) could pose significant threats to the institute.
Macro-environmental factors
Pestle analysis
Political
On 2017, the country shared one spot with regard to the transparency, trustworthiness and proper
functioning of public institutions in terms of judiciary and police.
The country was rated the second in 2017 Global peace index of safest countries to stay. One is
free to come and go live, creating it cool to enjoy all the explorations, experiences and sights
provides.
Economic
Economic stability: active governance has transformed into the financial sphere.
Certain research and development routines can benefits from the tax credit and incentive.

INTRODUCTION TO MARKETING 6
Social-cultural
Cultural diversity is one of the eight values in the New Zealand syllabus that offer a basis for
school’s decision making.
The country’s unique bicultural surrounding comprises peers of multicultural origin who have
embraced western living and learning culture.
Technological
Vocational training and education sector is demand driven and teaching, learning and assessment
are affected by industry shifts, business training demands, customer needs and more technology
changes
Transformation of business models of institutes and the changes in curriculum delivery
technology.
Legal
The country structure is grounded on English act andThe judiciary is self-governing and strong.
Sound lawful structure is reinforced by free and self-regulating media, warranting high levels of
transparency in regime and business decision-making.
SWOT analysis
Strengths
Quality academic programs and student service: the technical has a sturdy administrative backing
of academic programs and students facilities.
The technical has also international program support as well as strong international partnership
and merging interest in studying abroad prospects.

INTRODUCTION TO MARKETING 7
Weakness:
Lack of financial resources: even though the Otago has not faced the same financial constraints
like the rest of the institute, reduction in state backing is the main worry for the institute.
Varying dynamics in higher education: the technical will require a steady environmental
assessment to keep the institute at the front of the varying dynamics within the higher education.
Opportunities:
Expanded international partnerships and focus; chances for new perspective and partnerships
New dwelling rooms: as the cost of renting house is very expenses for student, they should
consider replacing the old house halls with up-to-date facilities
Threats:
Government funding: the ongoing decrease in the national support and the necessity to create
new streams of revenues
Rivalry: the nearby technical and other higher education organizations in the New Zealand admit
from the same student pool.
Ethics and social responsibility
Under the novel situations such as privatization, globalisation of the education institutes and
rivalry in higher education industry, several higher learning institutes are embracing a more
business-like strategy to survive and compete in the ever shifting face of the business. Otago
polytechnic are joining forces to show that regional tertiary organisations have a crucial part to
play in research in New Zealand. The institute is accomplishing the advancing need for a novel
approach towards a nationwide hub for farming, business and industry.

INTRODUCTION TO MARKETING 8
Recommendations
Otago Polytechnic should consistently achieve above its weight and continues to be the leading
polytechnic institute around the country.
Otago Polytechnic should continually focus on innovating new initiatives to adjust with the ever
changing world and conserve resources (Helms & Nixon 2010).
The institute should prepare for change in case it happen. They should orient their personnel
from the top to bottom of any changes that might appear in future
BUYER BEHAVIOUR
Reference groups influence on consumer behavior
Reference groups are the groups that individuals use to observe and offer guidance to what is
appropriate and acceptable behavior (Hayakawa & Venieris 2016). There are three overarching
behaviour; mimicking, conforming and distancing.
An aspirational reference groups influence the individual’s user’s behaviour as they mimic the
value and behaviour displayed by members of the aspiration reference group (.Hammerl et al
2016).
Example 1
Peter is 10 years old and he is a keen supporter of Manchester united (like the dad); peter wears
the club strip and has posters on the wall of his bedroom. His mother finds this amusing; his dad
is proud that his son imitates him (socialization of children in marketing practitioners). When
peter plays with his folks they imitate the actions of their sporting heroes by regularly adopting

INTRODUCTION TO MARKETING 9
their favorite player’s names. Tom is Peter’s young brother and imitates everything that Peter
does (though this annoys peter). It comes as no surprise when Tom announces that the wants a
Manchester united kit for Christmas.
Example 2
Stephen is a 10 year-old boy from Auckland in New Zealand. His team is the New Zealand
football team. Stephen, like many kids his age wears his team’s strip or uniform on regular basis.
Today Stephen and his parents are discussing a holiday they are planning to Singapore. Stephen
feels that he should wear the New Zealand “away kit” and is wondering if his dad thinks it is a
good idea. His dad, an accountant by professional is amused but proud.
Concept of family life cycle
The family life cycle has been described as a series of phases through which most of families’
advances with differing characteristics across diverse stages (McGoldrick & Shibusawa, 2012).
For instance the bachelorhood stage; the stage includes the life of a young single adult living
away from his parents. Such a person has a high level of disposable income. A Marketer on
realizing that bachelors poses a large disposable income; they find them an attractive market
segments for sports, fashion, travel, fun and entertainment. For instance, Blue Sky Clothing
specialised in the cotton –shirts fleece jackets, baseball caps and vests bear logos of different
sports.
Married stage: here, the financial spot gets better as one start to rise up the ranking. The kids and
teenagers influence the family buying process.
For instance, SpongeBob Square Pant, from Nickelodeon’s hit program, was Kraft’s top selling
cheese and macaroni in 2002.

INTRODUCTION TO MARKETING 10
Social class influence on an individual consumer
In social groups, one can usually find individuals with same lifestyle, values and behavior
(Thibaut, 2017).
For instance, in a college a student using techno phone is in no need to buy a smart phone such
as iPhone but wishes to be part of the group and be accepted by them.
A person working in multinational company as an accountant would wish to buy a track which
would assist him in the ferrying his farm products on weekend. However, his folks possess a
very expensive BMW model due to its distinctive and luxurious design. Therefore, the person
ends up buying the BMW model due to her social class but not her desire or need.
Self-concept influences on fashion wear choices
Self-concept is in what manner an individual thinks or perceives about themselves (Hattie,
2014). One way a person maintain their self-concept is through the products use. A person can
considers purchasing in Tommy Hilfiger outlets which is extremely expensive compared to sea
folly outlets to show her self-image to others.
Buyer decision making process and need recognition
Problem/need recognition: a purchase cannot occur if there is no need recognition.
Information search: having recognised the need, the next step is the information search, so as to
find the best solution. (Stevens et al 2012).
Evaluate alternative: people will evaluate different brand at this phase on the basis of alternative
products attributes. Those with abilities to offer the benefits the user is seeking.
Purchase decision
The penultimate point is where the buying occurs.

INTRODUCTION TO MARKETING 11
Post purchase: user will compare products with their previous expectation and they will be either
satisfied or dissatisfied.
Example:
I kept telling my dad that I needed to do a course in marketing as I intend to work as a sales
person in a fashion industry and he would tell me to research online and consult my older
brother, and see what would be the best for me. So, after figuring out that I required pursuing a
course in marketing (need recognition); I had to do some research to know the best college
offering the best course. I needed to gather information (information search) on what schools that
is best in terms of quality, flexible, good reputation, and more fun. I searched through the
internet for different colleges in New Zealand with first checking the tuition fee, and the learning
programme, and ability to offer after course placement which would enable me harness my
skills. Once gathering all my information on different schools that I would like to join, I had to
narrow down to specific college that fit me as an international student (evaluating alternatives).
After having two schools in mind, southern and OPAIC, I was able to see the pros and cons
between the colleges, making my decision even more simply. Afterwards, I decided to join
OPIAC as it could fit in my schedule, had well after course placement structure and offering
more attention to the international students (Purchase decision). Since joining the institute, I have
been satisfied (post purchase behaviour) with the lectures and services offered in the technical
and hopefully in next two years I will be through with my studies.
Characteristics affecting consumer behavior
Personal factors: When I was searching for colleges, I was tuition sensitive. I analysed various
school international student supports centre as the department could offer the support financially.

INTRODUCTION TO MARKETING 12
Psychological factors: since I was in high school I knew I had passion of marketing more so in
fashion industry and therefore, my goal was to join a reputable institute that would give me the
best skills and experience to excel in my field.
Social factors: during the search and application of my admission, I was in constant consultation
with my dad and old brother.
Cultural factors: I never wanted to join a college where I would experience the culture shock. In
the selecting the colleges, I was very specific to state I wish to pursue my dream and that would
be New Zealand.

INTRODUCTION TO MARKETING 13
References
Block. G. (March 2019). Future of polytechs: Ker’s master plan. Otago Daily Times. Retrieved
on 12th April, 2019 from: https://www.odt.co.nz/news/dunedin/campus/otago-
polytechnic/future-polytechs-kers-master-plan
Cadle, J., Paul, D., & Turner, P. (2014). Business analysis techniques. Chartered Institute for IT.
Retrieved on April 13th ,2019 from:
http://www.academia.edu/download/38419859/business-analysis-techniques.pdf
Change.org. (n.d). Save Otago Polytechnic. Retrieved on 12th April, 2019 from:
https://www.change.org/p/education-minister-chris hipkins-save-otago-polytechnic
Hammerl, M., Dorner, F., Foscht, T., & Brandstätter, M. (2016). Attribution of symbolic brand
meaning: the interplay of consumers, brands and reference groups. Journal of Consumer
Marketing, 33(1), 32-40. Retrieved on April 13th ,2019 from:
https://www.emeraldinsight.com/doi/abs/10.1108/JCM-12-2014-1243
Hattie, J. (2014). Self-concept. Psychology Press. Retrieved on April 13th ,2018 from:
https://www.taylorfrancis.com/books/9781317767787
Hayakawa, H., & Venieris, Y. (2016). Consumer interdependence via reference groups.
In Behavioral Interactions, Markets, and Economic Dynamics (pp. 81-99). Springer,
Tokyo. Retrieved on April 13th, 2019 from:
https://link.springer.com/chapter/10.1007/978-4-431-55501-8_3
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management, 3(3), 215-
251. Retrieved on April 13th, 2019 from:
https://www.emeraldinsight.com/doi/pdf/10.1108/17554251011064837
McGoldrick, M., & Shibusawa, T. (2012). The family life cycle. Guilford Press. Retrieved on
April 13th, 2019 from: https://psycnet.apa.org/record/2012-02536-016

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NEW ZEALAND IMMIGRATION. (n.d). Stability & security. Retrieved on 12th April, 2019
from: https://www.newzealandnow.govt.nz/investing-in-nz/stability-security
OTAGO POLYTECHNIC, (n.d). Career Services. Retrieved on 12th April, 2019 from:
https://studentservices.op.ac.nz/career-counseling/
Palmer, A. (2012). Introduction to marketing: theory and practice. Oxford University Press.
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hl=en&lr=&id=8x4TDaO_qqUC&oi=fnd&pg=PP1&dq=introduction+to+marketing&ots
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Stevens, R. E., Loudon, D. L., Ruddick, M. E., Sherwood, P. K., & Wrenn, B. (2012). The
marketing research guide. Routledge. Retrieved on 13th April, 2019 from:
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Thibaut, J. W. (2017). The social psychology of groups. Routledge. Retrieved on April 13th, 2019
from: https://www.taylorfrancis.com/books/9781315135007