When consumers are attracted to products that have undesirable social consequences it is?

Unformatted text preview: Scenario based examples of types of demand: 1. Negative demand: Demand where consumer dislikes the product and may even pay to avoid it. For example, Old books that is not in use anymore. We get rid of them by selling them and get cash in return. 2. Nonexistent demand: It is the demand where customer is unaware or not interested in product. For example, I am in automobile business I don’t have any use of a machine that is used in food business neither I am interested in it. 3. Latent demand: It is the demand where consumer shares a stronger need that cannot be satisfied by an existing demand. For example, people now are very brand conscious. They need more and more, there’s always a better product in the market to fulfill their need but it never ends. 4. Declining demand: It is the demand where consumer begins to buy the product less or not at all. For example, floppy disks used to rule the world of technology until CD’s arrived. So the demand of floppy disks started decreasing. 5. Irregular demand: It is the demand where consumer buys the product seasonally, monthly, weekly or even hourly basis. For example, super glue. I won’t have it until I really need to fix something. 6. Full demand: Where consumers are adequately buying products put into the marketplace. For example, we take medicine. A person needs to take medicine in order to stay healthy and to watch out from bacteria. Hence medicine is always in demand. It is a necessity for the sick. 7. Overfull demand: The demand where more consumers would like to buy the product that can be satisfied. For example, food wheat, rice is the example of overfull demand. Because, eating food is the basic necessity of a human being. It’s always in full of demand. 8. Unwholesome demand: It is the demand where consumers may be attracted to products that have undesirable social consequences. For example, people smoke cigarettes. It is injurious to their health but they still do it. ASSIGNMENT NAME: Arsalan Gilani REG NO: L1F15BBAM0070 SEC: E SUB: Marketing Management PROFESSOR: Maryam Iqbal Kiani ...
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KEY CUSTOMER MARKETS Consider the following key customer markets: consumer, business, global, and nonprofit. Consumer Markets Companies selling mass consumer goods and services such as juices, cosmetics, athletic shoes, and air travel spend a great deal of time establishing a strong brand image by developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service. Business Markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Business buyers buy goods to make or resell a product to others at a profit. Business marketers must demonstrate how their products will help achieve higher revenue or lower costs. Advertising can play a role, but the sales force, the price, and the company’s reputation may play a greater one. Global Markets Companies in the global marketplace must decide which countries to enter; how to enter each as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer; how to adapt product and service features to each country; how to price products in different countries; and how to design communications for different cultures. They face different requirements for buying and disposing of property; cultural, language, legal and political differences; and currency fluctuations. Yet, the payoff can be huge. Nonprofit and Governmental Markets Companies selling to nonprofit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully. Lower selling prices affect the features and quality the seller can build into the offering. Much government purchasing calls for bids, and buyers often focus on practical solutions and favor the lowest bid in the absence of extenuating factors. 15 MARKETPLACES, MARKETSPACES, AND METAMARKETS The marketplace is physical, such as a store you shop in; the marketspace is digital, as when you shop on the Internet. 16 Northwestern University’s Mohan Sawhney has proposed the concept of a metamarket to describe a cluster of complementary products and services closely related in the minds of consumers, but spread across a diverse set of industries. Metamarkets are the result of marketers packaging a system that simplifies carrying out these related productservice activities. The automobile metamarket consists of automobile manufacturers, new and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet. A car buyer will engage many parts of this metamarket, creating an opportunity for metamediaries to assist him or her in moving seamlessly through them. Edmund’s www.edmunds.com lets a car buyer find the stated features and prices of different automobiles and easily click to other sites to search for the lowest-price dealer for financing, accessories, and used cars. Metamediaries also serve other metamarkets, such as home ownership, parenting and baby care, and weddings. 17 Core Marketing Concepts To understand the marketing function, we need to understand the following core set of concepts. Needs, Wants, and Demands Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment. These needs become wants Money Information Goodsservices Communication Market a collection of buyers Industry a collection of sellers |Fig. 1.2| A Simple Marketing System when they are directed to specific objects that might satisfy the need. A U.S. consumer needs food but may want a Philly cheesesteak and an iced tea. A person in Afghanistan needs food but may want rice, lamb, and carrots. Wants are shaped by our society. Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it. These distinctions shed light on the frequent criticism that “marketers create needs” or “mar- keters get people to buy things they don’t want.” Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants. They might promote the idea that a Mercedes would satisfy a person’s need for social status. They do not, however, create the need for social status. Some customers have needs of which they are not fully conscious or that they cannot articulate. What does it mean when the customer asks for a “powerful” lawn mower or a “peaceful” hotel? The marketer must probe further. We can distinguish five types of needs:

1. Stated needs The customer wants an inexpensive car.

2. Real needs The customer wants a car whose operating cost, not initial price, is low.

3. Unstated needs The customer expects good service from the dealer.

4. Delight needs The customer would like the dealer to include an onboard GPS naviga- tion system. 5. Secret needs The customer wants friends to see him or her as a savvy consumer. Responding only to the stated need may shortchange the customer. 18 Consumers did not know much about cellular phones when they were first introduced, and Nokia and Ericsson fought to shape consumer perceptions of them. To gain an edge, companies must help customers learn what they want. Target Markets, Positioning, and Segmentation Not everyone likes the same cereal, restaurant, college, or movie. Therefore, marketers start by di- viding the market into segments. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers. After identifying market segments, the marketer decides which present the greatest opportunities— which are its target markets. For each, the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefits. Volvo develops its cars for buyers to whom safety is a major concern, positioning its vehicles as the safest a customer can buy. Offerings and Brands Companies address customer needs by putting forth a value proposition, a set of benefits that sat- isfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences. A brand is an offering from a known source. A brand name such as McDonald’s carries many associations in people’s minds that make up its image: hamburgers, cleanliness, convenience, cour- teous service, and golden arches. All companies strive to build a brand image with as many strong, favorable, and unique brand associations as possible. Value and Satisfaction The buyer chooses the offerings he or she perceives to deliver the most value, the sum of the tangible and intangible benefits and costs to her. Value, a central marketing concept, is primarily a combination of quality, service, and price qsp, called the customer value triad. Value perceptions increase with quality and service but decrease with price. We can think of marketing as the identification, creation, communication, delivery, and monitoring of customer value. Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations. If the performance falls short of expectations, the cus- tomer is disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted. Marketing Channels To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, firms communicate through the look of their retail stores and Web sites and other media. Marketers are increasingly adding dialogue channels such as e-mail, blogs, and toll-free numbers to familiar monologue channels such as ads. The marketer uses distribution channels to display, sell, or deliver the physical product or services to the buyer or user. These channels may be direct via the Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries. To carry out transactions with potential buyers, the marketer also uses service channels that in- clude warehouses, transportation companies, banks, and insurance companies. Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and service chan- nels for their offerings. Supply Chain The supply chain is a longer channel stretching from raw materials to components to finished products carried to final buyers. The supply chain for coffee may start with Ethiopian farmers who plant, tend, and pick the coffee beans, selling their harvest to wholesalers or perhaps a Fair Trade cooperative. If sold through the cooperative, the coffee is washed, dried, and packaged for shipment by an Alternative Trading Organization ATO that pays a minimum of 1.26 a pound. The ATO transports the coffee to the developing world where it can sell it directly or via retail channels. Each company captures only a certain percentage of the total value generated by the supply chain’s value delivery system. When a company acquires competitors or expands upstream or downstream, its aim is to capture a higher percentage of supply chain value. Competition Competition includes all the actual and potential rival offerings and substitutes a buyer might con- sider. An automobile manufacturer can buy steel from U.S. Steel in the United States, from a foreign firm in Japan or Korea, or from a minimill such as Nucor at a cost savings, or it can buy aluminum for certain parts from Alcoa to reduce the car’s weight, or engineered plastics from Saudi Basic Industries Corporation SABIC instead of steel. Clearly, U.S. Steel would be thinking too narrowly about its competition if it thought only of other integrated steel companies. In the long run, U.S. Steel is more likely to be hurt by substitute products than by other steel companies. Marketing Environment The marketing environment consists of the task environment and the broad environment. The task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers. In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agen- cies, banking and insurance companies, transportation companies, and telecommunications com- panies. Distributors and dealers include agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers. The broad environment consists of six components: demographic environment, economic envi- ronment, social-cultural environment, natural environment, technological environment, and po- litical-legal environment. Marketers must pay close attention to the trends and developments in these and adjust their marketing strategies as needed. New opportunities are constantly emerging that await the right marketing savvy and ingenuity. Here are two good examples. TerraCycle After finding that some of his friend’s indoor herbal plants flourished with a fertilizer made by feeding table scraps to red wiggler worms in a composting bin, TerraCycle founder Tom Szaky came up with an idea for a business. TerraCycle is devoted to “up- cycling,” finding new ways to use nonrecyclable waste materials. Plastic bags become sturdy T erraCycle

When consumers dislike a product and are even ready to pay a price to avoid it is known as?

What is a negative demand?

In which type of demand consumers may share a strong need that Cannot be satisfied by an existing product?

Which of the following occurs when consumers dislike the product?