Entrepreneurial Approaches and Consumer Behavior in Marketing

Posted on Dec 7, 2024 in Social sciences

Entrepreneurial Approaches to Market-Orientated Production

Industrial Revolution (Second Half of the Eighteenth Century)

Product Orientation

Since the first half of the 19th century.

Sales Orientation

Economic growth since the second half of the 19th century. It becomes necessary to increase efforts to meet increasing sales.

Marketing Orientation

Economy of Abundance (second half of the 20th century) achieves its objectives if it can possibly meet the needs of the masses.

• 1960 – Marketing
• 1970 – Marketing Segmentation
• 1980 – Marketing of Sectors
• 1990 – Marketing of Custom

Marketing: A social and managerial process through which different individuals get what they need and want, creating and exchanging products with value for others. Applied worldwide – macromarketing. Applied to a particular organization – micromarketing. The marketing business is defined as the management process which seeks to achieve the objectives of the company by meeting the needs of customers. Marketing is not intended to manipulate the consumer, but to satisfy their needs.

Different Aspects in Consideration of Marketing

Marketing culture is considered a philosophy or mindset that acts on the entire organization, directing it towards the satisfaction of consumer needs in the long term. Moreover, the marketing discipline has a technical-scientific, employing technical and scientific methods currently available for the development of new applications. Companies what they really want is to identify customers for an individualized marketing.

Different Concepts of Marketing

The megamarketing integrated marketing and the influence of the organization using public relations. Transactional marketing refers to the product. Relationship marketing is to establish and maintain a stable relationship with the customers.

The extra-company marketing is related to non-profit institutions:

• Political Marketing (set of activities undertaken by political organizations to ensure the achievement of political objectives.
• Marketing election is the part of political marketing refers to activities in the election campaign)
• Social Marketing (set of activities to exchange ideas between different groups that benefit society in general)
• Marketing groups (set of activities performed by service public to meet the social needs)
• Marketing of non-profit institutions (private institutions and NGOs. And the foundations. Joint activities nonprofit in the exercise of their functions)

The marketing specialist is applied in certain sectors, which is adapted to its characteristics:

• International Marketing (set of techniques for managing commercial activities involving different countries. There are two types: multinational marketing “refers to the application of different strategies in each country” and global marketing “apply the same strategies in all countries on an issue.”)
• Marketing Services (marketing important part of being applied to services for their special characteristics and importance.)

Consumer Behavior

The behavior of people in terms of mental process, they need the acquisition of products and services to meet your needs and desires.

Functions of Marketing Management

To analyze the situation, designing the strategies to follow, implement actions designed and the resulting control obtained.

Models Explaining Consumer Behavior

• Psychosocial approach (is the theory of knowledge “indicates that the behavior depends on experience” or the theory of social influence.)
• Motivational approach (behavior depends on the motivation the individual and the reasons that create it. Most representative models: the humanist Maslow and Freud’s psychoanalysis. It is based on rational action of individuals, by first selecting the products that generate greater benefits.)

Factors that Determine Consumer Behavior

Cultural Factors

Those having to do with the values of society.

• Culture: (set of values and ideas created by man to direct his behavior and methods of transmission from generation to generation. The transmission of culture is socialization. Within this there are smaller groups that are subcultures or idiosyncrasy.)
• Social class (group of persons who occupy a similar position in society as a series of variables such as occupation. The differences between them reach such factors as the choice and use of given products.)

Social Factors

It can be studied as reference groups:

• Reference groups: a group of people who share the same values each other and influence the behavior of other members.
• Opinion leaders are those people who have a strong influence on the reference groups.
• Those of the individual part: the primary group (all its members maintain continuous contact and intimate relationships. Informal)
• Child group (ratio more formal and less personal)
• Non-membership groups: those who are not part: groups of aspiration (which we would like to belong) and dissociative groups (in which we do not want to be included)

Personal Factors

• Age and position the life cycle (along life goes through different stages that influence buying habits.)
• Occupation: (the professional activity also determine consumption patterns.)
• Economic circumstances
• Lifestyle (our way of life and interests.)
• Personality and self-image (important indicators of consumption.)

Psychological Factors

• Motivation: (force that drives people.)
• Perception: (mode through which the individual perceives the stimuli. Pay attention to some and reject others “selective perception.”)
• Learning (process by which an individual acquires knowledge. There are two views: the behavioral and cognitive.)
• Attitude (acquired predisposition to respond to stimuli. It has three components: cognitive, other emotional and behavioral one.)

Purchase Decision Process

A set of activities carried out from a consumer who feels the need until the satisfies it.

1. Takes awareness of desire (is the sense of need and the desire to satisfy it.)
2. Search for information: (a process that collects consumer data to make a reasonable decision.)
3. Ranking of alternatives: (the consumer ranks the different possibilities according to their money or other circumstances. It will calculate the degree of satisfaction offered by each.)
4. Purchase decision (the decision to buy or not. You can choose a decision compensatory or non-compensatory decision “will require some additional product requirement)
5. Check the results (once the buy and used the product obtained a favorable or unfavorable according to expectations.)

Sources of Information

The marketing decision-making requires information obtained through several sources:

• Primary sources: original data are obtained for the first time.
• Secondary sources offering existing data with anteriority.

Another differentiation is:

• Insiders: obtained within the company.
• External sources: from outside the company.

Secondary Sources / External According to Their Origin

• Public sources (publications, international agencies, publishing INE, BOE, trade register.)
• Private sources (yearbooks, magazines and newspapers panels and archives and libraries.)