Core Concepts of Marketing and Core Concepts of Marketing and Buying MotivesBuying Motives

By By

Asst Prof. Venkatesh.NAsst Prof. Venkatesh.N

Koshys Institute of Management Studies Koshys Institute of Management Studies

Objectives of the StudyObjectives of the Study

A.A. Explain why customers buy.Explain why customers buy.

B.B. Classify customer buying motives.Classify customer buying motives.

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Objective AObjective A

Explain why customers buy.Explain why customers buy.

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All People Have Needs and All People Have Needs and Wants.Wants.

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A Need . . .A Need . . .

Something required or essential which is lackingSomething required or essential which is lacking

FoodFood ShelterShelter

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A Want . . .A Want . . .

Something desired but not always essentialSomething desired but not always essential

People can have a variety of needsPeople can have a variety of needsand wants at the same time.and wants at the same time.

?? ??

??

Once a need /want Once a need /want

is satisfied, people is satisfied, people

can concentratecan concentrate

on others.on others.

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People Do Not Want and Need the People Do Not Want and Need the Same Things at the Same Time.Same Things at the Same Time.

The car you want The car you want

may not appeal to may not appeal to

your neighbor.your neighbor.

This difference This difference

accounts for the accounts for the

variety of goods and variety of goods and

services available.services available.

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Needs and Wants Change.Needs and Wants Change.

As you go through As you go through

life, needs/wants life, needs/wants

may change or may change or

become less become less

important.important.

In high school you might want a backpack.

When you get older, the professional

image of a briefcase is desired.

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Many Factors Cause Needs/Wants to Change.Many Factors Cause Needs/Wants to Change.

AgeAge Educational levelEducational level

Marital statusMarital status

Income levelIncome level ParenthoodParenthood04/12/23 9Koshys Institute of Management Studies by Venkatesh.N

Many Factors Cause Needs/Wants to Change.Many Factors Cause Needs/Wants to Change.

Place of residencePlace of residence Influence of friends Influence of friends and relativesand relatives

CultureCulture

Seasons of the yearSeasons of the year Economic conditionsEconomic conditions04/12/23 10Koshys Institute of Management Studies by Venkatesh.N

People Buy Goods and Services to People Buy Goods and Services to Satisfy Needs and Wants.Satisfy Needs and Wants.

People buy the benefits People buy the benefits which which

products/services offer.products/services offer.

Product:Product: Reasons for buying:Reasons for buying:

For comfortFor comfort

For protectionFor protection

To be like their friendsTo be like their friends

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People Buy Goods and Services to People Buy Goods and Services to Satisfy Needs and Wants.Satisfy Needs and Wants.

Product:Product: Reasons for buying:Reasons for buying:

Fuel efficiencyFuel efficiency

Its ability to handle Its ability to handle well in the snowwell in the snow

The image they The image they think it representsthink it represents

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People Buy Benefits–Not FeaturesPeople Buy Benefits–Not Features

• Features are important only in terms of Features are important only in terms of how they benefit the customer.how they benefit the customer.

• The feature is meaningless if it doesn’t The feature is meaningless if it doesn’t benefit the customer.benefit the customer.

If customers never drive in If customers never drive in the snow, how interested the snow, how interested would they be in a car that would they be in a car that handles well in the snow? handles well in the snow?

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People Buy Different BenefitsPeople Buy Different Benefits

To get cleaning To get cleaning powerpower

To save timeTo save time

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For sales success . . .For sales success . . .

must determine desired benefits.must determine desired benefits.

YOUYOU

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Reasons or benefits that cause people to purchase Reasons or benefits that cause people to purchase

products to satisfy their wants and needsproducts to satisfy their wants and needs04/12/23 16Koshys Institute of Management Studies by Venkatesh.N

Why Buy a Steak?Why Buy a Steak?

A customer needs food A customer needs food and wants a steak at a and wants a steak at a

certain restaurant.certain restaurant.

Buying MotivesBuying Motives

• To be viewed as a certain To be viewed as a certain type of persontype of person

• To make business contactsTo make business contacts

• To socialize with others in To socialize with others in age/professional groupage/professional group

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Why Buy a Blazer?Why Buy a Blazer?

A customer needs A customer needs clothing and wants to buy clothing and wants to buy

a navy blue blazer.a navy blue blazer.

Buying MotivesBuying Motives

• The blazer is stylish.The blazer is stylish.

• Everybody has one.Everybody has one.

• He thinks he looks He thinks he looks good in blue.good in blue.

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Customers Know/Don’t Know Customers Know/Don’t Know Their Buying MotivesTheir Buying Motives

Why am Ibuying this?

????

??

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Knowing Knowing

customers’ needs, customers’ needs,

wants, and wants, and

motives lets you motives lets you

tailor your tailor your

presentation to presentation to

each customer.each customer.

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Motives ChangeMotives Change

• From customer to From customer to customercustomer

• From time to From time to timetime

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Jake’s CarsJake’s Cars

Jake knew he’d be Jake knew he’d be the envy of his the envy of his friends in a new friends in a new sports car.sports car.

As Jake’s family As Jake’s family grew, they needed a grew, they needed a vehicle with lots vehicle with lots of room, comfort, of room, comfort, and safety.and safety.

As empty nesters, As empty nesters, Jake’s family wanted a Jake’s family wanted a fuel-efficient car that fuel-efficient car that was easy to maneuver.was easy to maneuver.

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Objective BObjective B

Classify customer buying motives.Classify customer buying motives.

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Categories of Buying MotivesCategories of Buying Motives

RationalRationalEmotionalEmotional

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• Customers often unaware of them

• Easily influenced by advertising and current styles

Emotional Motives AdventureAffection

Appearance

Change/Variety

Comfort/Convenience

FearHealthLeisure

timePleasure

RecognitionRecreation

SecuritySocial or group

approvalFeelings, Emotions,

Impulses04/12/23 25Koshys Institute of Management Studies by Venkatesh.N

Rational Motives

Reason, Judgment, Logic

• Pros and cons

• Customer awareness

• Bottom line

• Money’s worth

AccuracyConvenienc

eDependability

Durability

Economy EfficiencyIncreased production

KnowledgeLow

cost/maintenanceProfit Quality of

workmanship/materialsSafety Service

Simplicity Versatility

Health

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Relationship of Emotional and Relationship of Emotional and Rational MotivesRational Motives

Emotional

Rational

CombineCombine ConflictConflict04/12/23 27Koshys Institute of Management Studies by Venkatesh.N

Rational MotivesRational Motives

Emotional MotiveEmotional Motive

• Ease of operationEase of operation• EconomyEconomy• Time savingsTime savings

• Increased leisure timeIncreased leisure time

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Emotional Motives

Rational Motives

• Appearance• Prestige

• Durability• Quality• Versatility

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Emotional MotiveEmotional Motive

Rational MotiveRational Motive

• AppearanceAppearance

• QualityQuality

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We all have We all have emotional emotional

motives for motives for buying certain buying certain items, but items, but

we like to we like to justify spending justify spending our money. our money.$

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People prefer to People prefer to

believe that they believe that they

are buying on are buying on

the basis of the basis of

rational rational

motives. motives.

“But I really doneed that gold-plated

electric shaver.”

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Responsibilities of SalespersonResponsibilities of Salesperson

• Pointing out benefits that appeal to Pointing out benefits that appeal to customer’s rational thinkingcustomer’s rational thinking

• Comparing lists of rational and emotional Comparing lists of rational and emotional motives to find out which motives appear motives to find out which motives appear on both listson both lists

• Determining if the customer is buying for Determining if the customer is buying for emotional or rational motivesemotional or rational motives

• Focusing sales presentation on the Focusing sales presentation on the customer’s buying motivescustomer’s buying motives04/12/23 33Koshys Institute of Management

Studies by Venkatesh.N

Patronage MotivesPatronage Motives

• Customer makes purchases in one business Customer makes purchases in one business rather than another.rather than another.

• These motives can be rational or emotional.These motives can be rational or emotional.

Joe’s Bakery

Karen’sBaked Goods

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90 Days90 DaysSame as Same as Cash!Cash!

ExamplesExamples

• Customer services Customer services and policiesand policies

• PricePrice

• Courteous sales staffCourteous sales staff

• ProductProduct

• Product assortmentProduct assortment

• FashionFashion

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MarkED

Acknowledgements

Original DeveloperChristopher C. Burke, MarkED

Version 1.0

Copyright 2000MarkED Resource Center

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Digital-based photography sources:

CORBIS CORP.Small BusinessObj. A: #052

Photos copyright 1998 Corbis Corp.750 Second Street, Encinitas, CA 92024

DIAMARPeople & Lifestyles Vol. 3Obj. A: #PEO_04, #PEO_13, #PEO_16

Obj. B: #PEO_03

Photos copyright Diamar Interactive Corp. 600 University Street, 1701 One Union Square, Seattle, WA 98101-1129

DIGITAL STOCK CORP.Business & IndustryObj. A: #008

Photos copyright 1998 Corbis Corp.750 Second Street, Encinitas, CA 9202404/12/23 37Koshys Institute of Management

Studies by Venkatesh.N

Digital-based photography sources:

EYEWIRE IMAGESCorporate LifeObj. A: #CLI_003

Photos copyright Eyewire Inc.833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada

PHOTODISC, INC.Family & Lifestyles Vol. 15Obj. A: #308

Photos copyright PhotoDisc, Inc.

2013 Fourth Ave., Seattle, WA 98121

STUDIO GEARPeople & Professions 2 Obj. A: #SP2019

Photos copyright Image Club Graphics http://www.imageclub.com04/12/23 38Koshys Institute of Management Studies by Venkatesh.N

Digital-based photography sources:

T/MAKER COMPANYClickArt Photos Obj. B: #TRNGR020

Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright 1984-1994 by T/Maker Company. All rights reserved.

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Copyright:

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Thank You