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1. Different factors that influence consumer behavior:

SITUATIONAL FACTORS

• ●  Buying task

• ●  Market offerings PERSONAL FACTORS

• ●  Demographics

• ●  Life stage

• ●  Lifestyle

• ●  Personality

  PSYCHOLOGICAL FACTORS

• ●  Motivation

• ●  Learning

• ●  Attitude and beliefs SOCIAL FACTORS

• ●  Culture / subculture

• ●  Social class

• ●  Family

• ●  Reference groups

• ●  ALSO: NO???

  – Disposable income (purchasing power) vs purchase spend
  – Economic environment: confidence
  – Group / social influences
  – Marketing (global, overall) influences, especially “uncontrolled” social marketing information

  a. Pavlovian Model: Learning = changes in behaviour developed through practice and experience. Learning factors:

  1. Drive (strong internal stimuli requiring action)

  2. Drivers (psychological needs creating triggers)

  3. Reinforcement (repetition)

2. Howard Sheth Model: Describes behaviour complexity through 4 elements:

   1. Inputs (inherently ambiguous)

   2. Constructs (perception biases)

   3. External/Exogenous variables

   4. Outputs

3. Family Decision Model: Describes decision as a consequence of interaction of 6 roles:

   1. User: Who plans to or will use the product.

   2. Influencer: The contributor of shared information, aligning views and resolving differences.

   3. Preparer: The responsible to transform the product to its ultimate shape.

   4. Gatekeeper: Filters information, taking out irrelevant or controversial components, aligning it to

      attributes of use.

   5. Buyer: The final and ultimate decisor(s).

   6. Decider: The money holder power.

4. Engel Blackwell Kollat Model (Behaviour through 4 “systematic dynamic”)

   1. IP , Information Processing: exposure, attention, comprehension, retention of product messages.

   2. CCI, Central Control Unit: Psycho factors: previous experience, evaluation criteria, changing mindset and personality of decisors

   3. Decision Process: Formal rational process (recognition, information, evaluation, purchasing decision, post-purchase satisfaction)

   4. Environmental Influences: Factors like income, financial status, social status, position influences.

2. Consumer behaviour BASIC theories (list of them and select which one is completely individual, explain wrong

ones???

e. Nicosia: Behaviour as a sequential process of feeding “fields”. The Nicosia model tries to explain buyer behavior by establishing a link between the organization and its consumers. The model suggests that messages from the firm first influences the predisposition of the consumer towards the product or service. Based on the situation, the consumer will have a certain attitude towards the product. This may result in a search for the product or an evaluation of the product attributes by the consumer. If the above step satisfies the consumer, it may result in a positive response, with a decision to buy the product otherwise the reverse may occur.

3. Consumer behaviour COMPREHENSIVE theories:

1. “Economic rational person” model:

   • ●  According to the “economic person” model, consumers are rational and narrowly self-interested

   • ●  People act selfishly as consumers, always trying to maximize the benefits they derive from the

     exchange process

   • ●  The seller/producer is also an economic man, who always strives to maximize his profits from

     an exchange

   • ●  The economic person model suggests consumers actively use information about all the

     available options before making a decision to purchase

2. “Stimulus / Response” model:

● Black box: consumer as a thinker and problem solver who responds to a range of external and internal factors when deciding whether or not to buy

c. “Problem solving” model:

• ●  Consumer behavior is as a set of activities a person goes through in order to solve problems

• ●  This problem-solving process is triggered when a consumer identifies some unmet needs

  and/or wants

• ●  This model acknowledges that both rational and irrational factors may shape a buyer’s

  purchasing decisions: the problem-solving model helps us mapping a consistent process individuals go through as they make buying decisions.

d. “Dick Basu loyalty” model:

Customer loyalty model is a conceptualisation of the combined effects of attitude and behaviour. They suggest that loyalty is the result of the interaction between a customer’s relative attitude to a brand, or store, and their repeat purchase behaviour for that brand or store. The typology divides customers into four loyalty groups. Customers with high attitudinal and behavioural loyalty are described as ‘true loyals’, those with high behavioural loyalty but low attitudinal loyalty as ‘spurious loyals’, those with high attitudinal loyalty but low behavioural loyalty as ‘latent loyals’, and those with low attitudinal and behavioural loyalty as ‘non loyals’.

Consumer buying influences-how all factors work together example:
PERSONAL: If I buy a brand new BMW, how cool will my peers think I am? SOCIAL: How will buying a used car make me feel about myself?
ECONOMICAL: But if I do that, will I be able to afford other expenses?

4. Stages in consumer decision process:

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post purchase behavior

5. SM Funnel:

Its is a virtual place where selling and buying processes meet enhanced by marketing activities. Enables different types of engagement at different stages. It is adapted to different types of buyer personas. Gives data for the analysis and planning of sales processes and marketing activities.

1. Awareness: seeking educational information to help grow in their knowledge of solutions.

2. Consideration: seeking demonstration of solutions expertise. Comparing to other solutions

3. Preference

4. Purchase

5. Loyalty

Marketing funnel and sales

funnel:

• –  Marketing funnel advertises a product or service to give leads a reason to buy. Whereas, the sales funnel deals with the leads (from the marketing funnel), enticing them to buy, not once, but as often as possible.

  • –  TOFU (top) Awareness Stage

  • –  MOFU (middle) Consideration Stage

  • –  BOFU (bottom) Decision Stage

  • –  Generic Funnel

• –  Marketing builds the interest, and the bottom of its funnel marks the top of the sales funnel. Consequently, the sales funnel is powered by marketing activities that generate awareness to create product demand.

  – Forrester Model, Classic Sales Funnel, McKinsey Model, Heinz Model, SAles Funnel of JB Media GRoup, Rain Group’s buying process.

  Differences between MQL and SQL:

– A marketing qualified lead (MQL) is a lead who has been deemed more likely to become a customer compared to other leads. This qualification is based on what web pages a person has visited, what they’ve downloaded, and similar engagement with the business’s content. Is in the Middle of the Funnel stage.

– SQLs are prospects that have been vetted to determine if there’s an interest to connect them to the next stage in the buying cycle, sometimes called the Discovery or Demo stage.

5. Loyalty loop: (modern circuits of purchase)

The customer loyalty loop is a customer service concept that illustrates how consumers decide what they buy, and then continue to make purchases from a given company again in the future. The model recognizes that, in real life, once people make a purchase they tell others what they think about the product, but constantly reevaluate if they should stick to that brand. It attempts to serve as a replacement and more realistic model for the funnel concept of marketing.

The 4 stages of the customer loyalty loop represent decision points for customers. At each stage, the customer makes a choice that determines whether or not the customer remains loyal to a particular brand.

Sales managers find it easy to see the benefits of adopting a CRM system: sales data will be stored centrally and presented in an easy-to-follow format. They get access to monitor sales processes, staff performance and, as a result, optimize selling. Average rep in B2B sales is not seeing benefits: CRM as just another “one more” tool, more work, just another way for their bosses keeping track of their work…

CRM as a tool for sales forces:

• –  Contact management software: complete history of interactions with customers, sales and activities.

• –  Pipeline management software: management of the long term sales cycle, involves identifying sales stages and

  what need to be accomplished in each stage.

  Lead management, opportunity management, contact management, task management, team collaboration, reports and analysis.

  CRM and AI

• –  Sales automation

• –  Predictive engagement

• –  Predictive prospecting

• –  Sales process analytics

• –  Voice/text analytics

• –  Chatbots

  CRM and predictive intelligence analytics

• –  Sequencing

• –  Cross-selling

• –  Inactivation

• –  Dynamic predictive segmentation with AI

  7. How to choose the sales reps repartition

  Evaluate environment

  • Decision-makers, influencers… • Potential targets (SQL)
  • Targeting

  Interview / interact

• Prepare

• Carry out
• React to unplanned (on-the-chat) events • Analyze conclude improve

Manage territory

• Assess potential and timing
• Fix strategies and long-term objectives • Plan and set short-term objectives
• Manage by objectives

8. Specialised and Centralised organizations

Specialized: The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization

Centralization: The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels

Models

• –  Geography

• –  Product

• –  Market

• –  Functional

• –  Complex sales model

  FORMULAS:

Dimensioning: analytics

• –  Direct allocation
  Dimension = sales forecast / average sales per rep

• –  Workload
  Dimension = sales activities / activity capacity standard rep

• –  Marginal contribution