DISTRIBUTION MANAGEMENT

OBJECTIVES:
01 Know the concept of consumer
buying behavior, and the steps in the
buying decision process

02 Discuss the concept of marketing

mix and its 7Ps

03 Identify the commonly used

branding strategy.
Behavior

The reaction of the consumers to

changes happening in the
environment that influence their
buying decision.
consumer buying
behavior
The reaction of the consumers to
various events or forces that are
happening in the business
community which contribute to
the decision process.
Some relevant questions on consumer buying
behavior are as follows:
1. What are the taste and preferences of the
consumers?
2. What makes the consumers buy or not buy
the product?
3. What factors influence the consumer buying
behavior?
4. How does the consumer decide in buying the
product?
 Environmental
Cultural Factors
Factors
(Factors Influencing Consumer Behavior)

Social Factors

Personal Factors
Psychological
Factors
Cultural Factor

The perceptions, attitudes, value system,

and even religion of these groups
influence their buying behavior. These
comprise the cultural factor.
By having a concrete understanding of it, the entrepreneur can
predict the buying behavior of the consumers in these groups.
He/she can also make an assessment as to how the needs and
wants of these target consumers can be satisfied.
Social Factor

The relationship maintained or

established by the consumers with
other members of the society. This is
characterized by the social class where
the consumers belong and their social
roles and affiliations with some social
groups.
The social class is an informal grouping of consumers based
either on the personal perception of the consumers or that of
others. Usually the upper social class is composed of elite and
wealthy consumers; the middle social class is made up of
professionals and blue- and white- collar workers; and the lower
social class consists of the working poor and marginalized people.
Personal Factor

The personal characteristics of the buyer in

terms of age, occupation, income, and lifestyle.

The buying behavior of the consumers, in

addition to the influence of the social group
where they belong, is also largely influenced by
the personal factor.
Psychological factor
The perceptions, beliefs, and attitudes of the
consumers. These are highly attributed to their specific
experiences with particular products. Hence
consumers may have different perceptions, beliefs, and
attitudes toward the same stimulus. In this case the
entrepreneur must evaluate the dominant or prevalent
perception, belief, and attitude of the target market.
He/she must conduct substantial research since the
psychological factor cannot be measured quantitatively.
Consumer’s Buying
Decision Process
Buying Decision Process
Recognition of their needs and wants

Search for relevant information about

the product. (Information search)

Buying
Decision Evaluation of alternatives
Process

Purchase Decision

Post Purchase analysis

Recognition of the Consumers’
Needs and Wants
A purchase cannot take place without
the recognition of the need. The need
may have been triggered by internal
stimuli such as hunger or thirst or
external stimuli such advertising.
Search for Relevant Information
about the Product
Consumer seek information that can help him/her make a
purchase decision.

 Internal search refers to recalling past

experiences with the product.

 External search is conducted when customer

tries to seek information from personal sources
(family, friends), commercial sources
(advertisements, sales people) or public sources
( newspapers, television).
Evaluation of Alternatives

Once the desired information are

already available to the consumers, they
can make the necessary evaluation of
various alternatives and make an
intelligent comparison of the different
brands existing in the market.
Consumers consider the following significant
areas of the product:

1. Price
2. Quality and durability
3. Brand, color, and design
4. Terms and conditions
5. Required payment
6. Amount of credit
 Purchase Decision

The purchase decision is the stage when

the consumer actually buys the product.
His / Her decision to buy a particular brand
of product may come solely from his/her
own decision or may be attributed to the
influence of outside factors like family
members, social group, friends, or some
future economic events.
Post-purchase Analysis
Post-purchase analysis is the last stage
in the buying decision process when
the buyer makes a simple analysis at
the back of his / her mind whether his /
her expectation has been met or not.

“A customer talking about their experience

with you is worth ten times that which you
write or say about your self”
– David J.
Greer
Based on this buying decision
process, what do you think an
entrepreneur should
remember?
ENTREPRENEURIAL
RESEARCH ON
CONSUMER BUYING
BEHAVIOUR
Entrepreneurial
Research
Most research work is conducted because of
the occurrence of a certain phenomenon. In the
context of this module, research work is
conducted in relation to the buying behavior of
the consumers in the target market segment.
Research
a scientific investigation. It involves the
collection, presentation, analysis, and
interpretation of gathered data. As a scientific
investigation, research is conducted to find
out the buying behavior of the consumers by
following procedural process.
Research may be conducted to:

1. Determine the taste and preference of the consumers;

2. Know the competitors , the suppliers of the raw materials,
and the processing methods that best apply to the
business; and
3. Determine the relationship of the different marketing
variables relative to the buying behavior of the consumers.
The research work conducted by the
entrepreneur usually follows the following
procedural steps:
1. Identifying the problem
2. Deciding the type of data to be gathered
3. Evaluating how data will be collected
4. Gathering the data
5. Analyzing the data gathered
6. Making a conclusion and recommendation
7. Reporting the result of the research work
Types of Entrepreneurial Research

Exploratory Research

Descriptive Research

Casual research
Exploratory Research

the preliminary research work

conducted by an entrepreneur that is
primarily designed to gather baseline
information to be used in solving a
problem or forming a hypothesis.
Descriptive Research

conducted by the entrepreneur when

the foremost objective is to describe
the present buying behavior of the
consumers in terms of environmental
factors, buying decision process, and
marketing mix.
For example, the entrepreneur would like to know
the buying behavior of the consumers in terms of
the following factors:
1.Social class
2.Age
3.Occupation
4.Income
Casual research

The entrepreneur conducts a

casual research or correlation study
when the objective is to determine
whether the buying behavior of the
consumer is caused by some
environmental factors.
MARKETING MIX
The marketing mix simply refers to a mode, means, or tool
used by the entrepreneur to position the product in the target
market segment to efficiently and effectively deliver it to the
consumers and to convince them about the benefits that they
will derive from buying the product. The marketing mix is also
known as the “P’s in marketing.
The marketing mix basically addresses the following
questions:
1. How can the target consumers be influenced to buy the product or service?
2. What marketing strategy must be adopted to convince the consumers that
the product or service being offered satisfies their needs?
Product
Anything that can be offered to a
market for attention, acquisition, use, or
consumption to satisfy the need or
wants.

 tangible (those we can see)

 intangible (those that we cannot see but
experience).
Place
 The place where the target consumers are.

 The term strategic place, however, is relative. What

may be considered strategic for a convenience store
may not be considered strategic for a bookstore.

 Most entrepreneurs equate strategic place with a

location or site where there are plenty of people
during a particular time.
Price
The concept of pricing relative to the marketing mix can be
viewed from two opposing perspectives, namely,

 the perspective of the entrepreneur who

produces the product and;

 the opposing perspective of the consumers who

ultimately buy the product.
Promotion
 Companies give information about the
features and benefits of a product.

 Also called marketing communication.

 The business communicates to the target

consumers the pertinent information about
the product including its benefits, price, and
position in the market.
 Promotional Mix
Personal Sales Public
Selling promotion Relation

Advertising Direct
Marketing
PEOPLE
 The term people here refers to
individual employees or workers who
are directly involved in the production,
marketing, and sale of the product or
service.

 Hence, the entrepreneur must be sure

to hire the right person for the position.
PACKAGING
 The process of putting the product in a package or
container.

 The basic purpose off packaging is to protect the

product from spillage, damage, or spoilage.
Spilled, damaged, or spoiled products create
impressions that are disadvantageous to the
product or business.
POSITIONING

 The place occupied by the product in the

minds of the consumers.

 A marketing strategy that defines the target

consumers. It is the last marketing stage in
the customer identification process.
THE CONCEPT OF
BRANDING
Branding
 A means through which companies make their
products distinct.

 A brand helps customers identify a product more

easily, and encourages them to purchase it.

 The other features associated with branding

are logos and symbols.
Question
“And God blessed them. And
God said to them, “Be fruitful
and multiply and fill the earth
and subdue it and have
dominion over the fish of the
sea and over the birds of the
heavens and over every living
thing that moves on the
earth.”

– Genesis 1:28
Thank you!