Principles of Marketing

Q1. Differentiate between consumer buying behavior and

business buying behavior. What are the differences and
similarities, clarify with the help of appropriate examples?
Consumer Buying Behavior:
Consumer Buying Behavior refers to the activities taken by buyers before
purchasing an item or service. This process may include consulting search
engines, drawing in with web-based media posts, or an assortment of different
activities.

Business buying behavior:

Business buying behavior refers to the buying behavior of associations that
purchase merchandise and enterprises for use in the creation of different items
and services that are sold, leased or provided to other people.

Consumer Buying Behavior Business Buying behavior

The individual buyers purchase goods The business purchase products,
and services for extreme utilize or goods and services for their business
fulfill their requirements. The needs. The purchasing reason for
purchasing reason for such consumers them is to gain benefit or in other
isn't to take benefit by reselling the words to earn profit by utilizing and
products, goods and services etc. reselling the products, goods and
services.
Although consumer purchases Business buying is done in enormous
different sorts of products, the amounts. There are a few reasons
amount of goods and products stays why organizations must purchase the
little. They purchase just the vital products they need in mass. In any
amount of goods, which they require case, they utilize enormous amounts
for normal use. of each and every item and must keep
up inventories at a level sufficiently
high that they won't run unavailable.
Also, it is less expensive and more
effective to make enormous volume
buying’s.
Consumer buying takes decision by Business buying is a balanced cycle
themselves. Some of the time they on the grounds that the buying
can talk with relatives and behavior of associations is guided by
companions. They need not satisfy target factors having to do with
any custom or formality like business creation and appropriation. It requires
buying. some investment than consumer
buying.
Most of the consumer might not have Business buyers for the most part
satisfactory information and data have less brands to choose than
about market circumstance, products consumers, and their buying’s must
and services, and so forth. The be assessed based on special criteria
educated consumers might have that are explicit to the general needs
adequate information about market. of the organizations. The business
buyers have full information on
market and providers.
Consumers purchase numerous goods Business buyers purchase limited
to use to fulfill individual or family amount of goods to use to lead
needs. business.
Consumer buying behavior is affected Numerous people are engaged with
by age, occupation, salary level, the purchasing cycle. In large
genders etc. of consumers. associations or organizations, seldom
is one individual exclusively
responsible for the purchase of
items .Rather, numerous people and
many other departments might be
included in purchasing cycle.

Similarity:
The purchasing cycle that consumers and business both experience is
fundamentally the same as. Consumers and business buyers both have needs to
satisfy, at that point they attempt to determine the features of the items or goods
that they need, at that point they assess the different other options, make the buy
and assess it.
Both the customers and business buyers make buys with same goal having in
their minds to fulfill needs or wants. Both business buyers and consumers buys
are dependent upon social impacts. In business buying, a gathering of
individuals (for example the purchasing place) are generally answerable or
responsible for making buys. At the point when we buy as people, social
impacts are commonly included, as we generally find support or exhortation
from family, companions, peers, partners, opinion leaders, informal exchange.
A trade happens in both business and consumer buying.
Q2. Is segmentation important? What are the different
types of segmentation and where it is applicable?
Yes segmentation is important. When marketers use segmentation it helps in
making plans and strategies easier, as it assists with concentrating the
organization on certain customer groups instead of focusing on the mass market.
Market segmentation guides marketers to be more productive in terms of time,
cash and different assets. Market segmentation permits organizations to learn
about their customers. They increase a superior comprehension of customer
needs and wants.

4 Types of Market segmentation:

There are 4 types of market segmentation.
 Demographic segmentation
 Psychographic segmentation
 Behavioral segmentation
 Geographic segmentation

Geographic Segmentation:
Geographic segmentation divides the market based on geography. This kind of
market segmentation is significant for markets as individuals having a place
with various areas may have various necessities. For example, water may be
scant in certain districts which blows up the demand for filtered water however,
simultaneously, it may be in abundance in different areas where the demand for
water is exceptionally in small amount.

Demographic Segmentation:
Demographic segmentation divides the market based on demographic factors
like age, sex, status, family size, salary, religion, race, occupation, ethnicity, and
so forth. This is one of the most well-known segmentation practice in market.
Demographic Segmentation is seen nearly in each industry like cars,
magnificence items, cell phones, clothes, and so on and is determined to a
reason that the consumers buying behavior is immensely affected by their
demographics.

Behavioral Segmentation:
The market is additionally segmented dependent on the consumer’s behavior,
utilization, inclination, decisions making. The segments are generally divided
dependent on their knowledge of an item and use of the item. It is accepted that
the information on the item and its utilization influence the buying decision of a
person. The audience can be divided into –

The individuals who have the information about the product.

The individuals who don't have the information about the product.

Ex-customers,

Likely customers,

Current consumers or customers,

First time customers, and so on.

Psychographic segmentation:
Psychographic Segmentation divides the market or audience based on their
personality, way of life, morals and attitudes. This division cycle works on a
reason that purchaser purchasing behavior can be impacted by his personality
and way of life. Personality is the mix of attributes that structure a person's
distinctive character and so on. Way of life is the way an individual carries on
with his life.

Character and way of life impact the purchasing choice and propensities for an
individual by and large. An individual having a great way of life may consider
having an AC in each room as a need, while an individual living in a similar
city yet having a moderate way of life may think about it as a luxury.

Q3. Take any business of your choice and identify the

segmentation, targeting and positioning strategy it has
adopted.
STP OF NESTLE:
In market segmentation we have 4 types:

Geographic:
Nature: Nestlé Singapore segmented its market for Nescafe Ice relies upon the
geographic climate: warm hot and cold.
Nescafe Ice: Coffee which might be expend with ice. During warm season
customers making this coffee with typical, pleasant or cold water blending ice
shape to acquire newness their body.

Demographic:
Nestlé divided or segmented market zone for its main items dependent on the
generation. For the items Cerelac, Lectogen, Koko Crunch, Nido, Nestle
partitioned the market area for newly baby and children of various ages.

Psychographic:
Way of life and character: Nestle Singapore gives KIT KAT these individuals
who truly need to taste and appreciate chocolate. Nestle Nescafe 3 out of 1 is for
uncommonly those customers who are truly engaged in action and don't have
additional time. They can use by taking Nescafe 3 in 1.All the things are
blended sugar, milk and coffee.

Behavioral:
Nestle Singapore segmented their market in a productive manner. So they make
accessible Cerelac for those users who need more benefit from the item. Cerelac
involves a high nourishment for infant's whose age is under 1 year. Two
significant things rice and milk remain included cerelac. On the other part,
cerelac also includes nutrient, more mineral and all major helpful nutritious
components for children.

Target Marketing:
Nestle examined the distinctive kind of market segments based on segment size
and development, portions, basic appeal, and Nestle goals and assets and choose
to presented their activity entire of Singapore nation. Nestle divides their
objective market in light of having exceptional necessities and needs.
Nestle additionally choose the separated marketing. He gives distinctive item to
numerous segments dependent on various ages, occupation, season and
atmosphere of Singapore.
Coffee for users who are very busy in daily work.
Chocolate milk who need to get taste of genuine chocolate.
Cold coffee for the client in hot and warm climate.

Concentrating:
Through concentrated marketing, Nestlé earned a solid market position due to
its generally excellent information on purchaser necessity.
In the niches it serves and extraordinary reputation it secures. Nestlé has some
expertise in creating infant nourishments. It offers nutritious milk powder
Lectogen 1 for infants whose age is under 7 months and lectogen 3 for children
whose age isn't more than 12month. It likewise make accessible infant
sustenance cerelac for infant over a year.

Positioning Strategy:
By making item, administration, channel, individuals and image differentiation
Nestle arrives up the purchaser contact point all the more effectively, adequately
and proficiently in comparing with their competitors in food market.

Product Differentiation:
Nestle brings a huge numbers of item for target customers. They make
accessible 25 sorts of minerals in Nido for kids.
It additionally orchestrated Cereals' and Lactogen 1 &3 for fant child’s
Presently the specialists says these items for kids to their parents for incredible
and greatest nourishment. Nescafe is an item which contains 4 sorts of classes.
They offer Nescafe ice for hot and warm climate.

Channel Differentiation:
Nestle arrive at their items to the customers through their accomplished market
salesman and transportation. So their channel distribution is very easy.

Image Differentiation:
Nestlé's logo is very surprising from their competitor that are enormously
decisions by its clients.
For that way customers effectively pick them in the market which is another
successful benefits for Nestle items.