I. Consumer goods market
Consumer goods market, also known as the final consumer goods market, consumer market or means of subsistence market, refers to individuals or families to meet the needs of life to buy or rent goods market, which is the basis of the market system, is to play a decisive role in the market.
(a) the characteristics of the consumer goods market
Compared with the market, the consumer goods market has the following characteristics: from the point of view of the goods traded, because it is for people's final consumption of the product, and the buyer is an individual or a family, and therefore it is more affected by the consumer's personal human factors, such as cultural upbringing, appreciation habits, income levels, etc.; the product of the variety of colors and complexity of the product, the product's life cycle is short; the product's life cycle is short; the product's life cycle is short. The product's life cycle is short; the commodity's professional and technical is not strong, more substitutes, so the commodity's price elasticity of demand is larger, that is, the price change on the demand for a greater impact. From the scale and mode of transactions, the consumer goods market has a large number of buyers, the market is decentralized, the number of transactions is frequent, but the number of transactions is sporadic. Therefore the vast majority of goods are sold products through intermediaries to facilitate consumer purchases. From the point of view of purchasing behavior, the purchasing behavior of consumers has a large degree of indubitability. This is because when consumers decide to take the purchase behavior, unlike the purchasing decision in the producer market, which is often affected by the limitations of the production characteristics and national policies and plans, they are spontaneous and emotionally impulsive; secondly, most of the purchasers in the consumer goods market lack the appropriate knowledge of commodities and market knowledge, and their purchasing behaviors are non-professional purchases, and their choices of products are greatly affected by the advertisements and propaganda. They are more influenced by advertisements and publicity. Due to the consumer purchasing behavior can be induced, production and management departments should pay attention to good publicity and advertising of goods, guide consumption, on the one hand, as a good consumer counselor, on the other hand, can also effectively guide the consumer's purchasing behavior. From the market dynamics, due to the complexity of consumer demand, supply and demand contradictions are frequent, coupled with urban and rural exchanges, inter-regional exchanges are becoming more and more frequent, the development of tourism, the increase in international exchanges, the mobility of the population is growing, the mobility of the purchasing power has also been strengthened, therefore, the enterprise should pay close attention to the market dynamics, to provide marketable products, and at the same time pay attention to the increase in the shopping outlets and in the transportation hubs of the area Create a larger shopping center to adapt to the needs of mobile purchasing power.
(B) the influence of consumer goods purchase factors
according to the consumer's purchasing habits as a standard, the purchase of consumer goods is generally divided into three categories, namely, convenience goods, purchase goods, special goods. Convenience goods, also known as daily necessities, are commodities that consumers need in their daily lives and need to buy repeatedly, such as food, drinks, soap, laundry detergent and so on. Optional goods refer to goods that are more expensive than convenience goods, and consumers would like to spend more time comparing many goods before deciding to buy them, such as clothing and home appliances. Specialty goods refer to goods for which consumers have special preferences and are willing to spend more time to buy, such as televisions, refrigerators, cosmetics and so on. According to the degree of durability and frequency of use of goods, consumer purchases can be categorized into durable goods and non-durable goods. Durable goods refer to goods that can be used many times and have a long life, such as televisions, refrigerators, stereos, computers, etc. Consumers are more careful in their decision-making when purchasing such goods. Non-durable goods refers to the less frequent use, consumers need to buy goods frequently, such as food, culture and entertainment products.
Consumer purchasing behavior, that is, the main body of consumption through the expenditure (including money or credit) to obtain the required goods or services when the selection process, the formation and development of this process is subject to the influence of many factors, of which the main factors are economic factors, psychological factors and social factors.
Economic factors: mainly refers to the consumer's desire to maximize the utility of goods with the least possible expenditure (including money or credit). This mainly includes two aspects: first, the pursuit of good quality and cheap goods. Consumers in the purchase of goods, the main consideration is their own income, the function of the commodity and the price of the commodity, in the individual income, the commodity function of a certain condition, the price of the commodity is to promote the driving force of consumer purchasing behavior. The second is the pursuit of the maximum utility of the commodity. As a buyer for personal and family consumption and purchasing buyers, in the usual circumstances, they can not spend all their income on the same commodity, because it is not only unnecessary, and from the western economics community is very much emphasized in the marginal benefit of the factors affecting the consumer purchasing behavior, the degree of consumer need for the same product will be reduced as the number of more, at the same time in the same product only the The first product is the most valuable to the consumer, the need is most urgent, the consumer will use his limited income to buy other goods he needs more.
Psychological factors: also known as individual factors, it includes demand, feeling, learning, beliefs and attitudes and other psychological processes, through the study of these processes, we can understand the causes of buyer behavior. Demand refers to a certain state of lack caused by objective stimuli acting on the human brain through the human senses. When this state reaches a certain level, it generates demand, which in turn causes motivation, the latter being the direct cause and driving force that causes human behavior and governs human behavior. Therefore, in order to achieve their goals, corporate marketing should try to stimulate consumer demand and motivation through certain stimuli, which in turn prompts consumers to take the purchase behavior. People's needs are not only diverse, but also hierarchical. The famous American psychologist Maslow published in 1954 "motivation and personality" work put forward the "hierarchy of needs". Sensation refers to people's reflection of objective stimuli and situations through their sense organs. Consumers will not only produce different sensations for different stimuli or situations, but also produce different sensations for the same stimuli or situations, the main reason for this phenomenon is due to the specificity of the sensory process. Psychologists believe that the sensory process is a selective mental process, this "selective mental process" mainly includes three aspects: selective attention, selective misinterpretation, selective memory. Changes in individual behavior as a result of experience is learning. The human learning process (including the consumer learning process) is composed of five elements: drive, stimulus, cue (trigger), response, and reinforcement. Personality will directly or indirectly affect the consumer's purchasing behavior, "self-image" is an important personality factor that affects the buyer's behavior. Attitude refers to people's view of things, which reflects a person's tendency to like or dislike a certain thing. Attitude comes from learning, it has a gradual formation process, and once formed, it directly affects people's behavior.
Social factors: These social factors include culture, social class, family and related groups. Culture, as the material wealth and spiritual products created by human beings in the process of social development, not only expresses the course of development of human wisdom and the mark of human civilization, but also directly affects people's desires and behaviors. Cultural factors affecting consumers' purchasing behavior refer to the ****same values, beliefs, morals, customs and habits formed, and different values, morals, beliefs and customs and habits are the deep-seated reasons affecting people's consumption behavior. Social class means that due to the differences in income level, education and other aspects of social life will form a group or group with similar or similar interests, life needs, values, and they are in the same economic position in a certain socio-economic structure. People of different social classes have obvious differences in purchasing behavior and purchasing types. Related groups are groups that can directly and indirectly influence consumer behavior and values. There are 3 forms of related groups. One is the major groups, including family members, friends and relatives, and fellow colleagues. The influence of related groups on consumers' purchasing behavior has three main aspects: first, it affects consumers' lifestyles, which in turn affects their purchasing behavior; second, it arouses consumers' purchasing desires, which in turn contributes to their purchasing behavior; and third, it influences consumers' choices of brands and trademarks of products. Family is the cell of the society and the basic consumer unit of the society, and family members play a direct and subconscious influence on consumers' purchasing behavior. The influence on consumers' purchasing behavior is different in different types of families. Some people categorize families into four types, i.e., husband-determining, wife-determining, ****-determining, and individually-determining. In addition, there is a difference in the influence of family members in the purchase of different goods.
(3) consumer goods purchase decision
Purchase decision-making participants: consumer spending is a family unit, but the purchase decision-making is usually not all members of a family, many times a member of a family or a few members, and by several members of the family members of the purchasing decision-making layer, their respective roles are also different. People may play the following roles in a purchase decision process: initiator, influencer, decider, buyer, user.
Types of buying behavior: (1) complex buying behavior. A highly involved purchase occurs when a consumer makes an initial purchase of an expensive, less frequently purchased, risky, and highly self-expressive item.2) Purchase behavior that reduces feelings of incongruity. When consumers are highly involved in the purchase of a product, but can not see the difference between the brands, the purchased products often produce a sense of dissonance. (3) Purchasing behavior of a wide range of choices. If a consumer buys goods brands although the differences between brands, but there are many brands to choose from, they do not spend too much time choosing brands, and do not focus on a particular product, but often change the variety. (4) Habitual buying behavior. Consumers sometimes buy a product not because they particularly favor a particular brand, but out of habit.
Purchase decision-making process: the typical purchase decision-making process generally includes the following aspects, (1) recognizing needs. Recognizing needs is the starting point of the consumer buying decision process. (2) Collecting information. Once a consumer has developed a purchase motive, he or she will begin to perform the activities associated with the purchase motive. (3) Selection judgment. When consumers obtain relevant information from different channels, they analyze and compare the available brands and evaluate the products of various brands, and finally decide to purchase. (4) Purchase decision. When consumers have a good feeling about a brand and the intention to buy, but the real intention to buy into the purchase of action, during the time will be subject to the influence of two aspects: ① the attitude of others ② unexpected circumstances. (5) Post-purchase action. Consumers after the purchase of goods, through their own use and evaluation of others, will have some degree of satisfaction or dissatisfaction with their own purchase of goods. If consumers' expectations match the actual utility of the product, they will be satisfied; if the actual utility of the product is greater than what consumers expected to hope for, they will be very satisfied, and vice versa, they will be disappointed or dissatisfied.
The industrial market
The industrial market, also known as the market for industrial goods or the market for the means of production, is an integral part of the organizational market, which refers to the market for the provision of services and products to meet the demand for the production of other products by industrial enterprises. The main sectors that make up the industrial market are agriculture, forestry, fishing, mining, manufacturing, construction, transportation, communications, public **** utilities, finance, and services.
(I) Characteristics of the industrial market
Compared with the consumer goods market, the industrial market has the following characteristics: from the point of view of market demand, there are two distinctive characteristics of demand in the industrial market. The first is the derivativeness of demand, that is, the demand for means of production originates from the demand for means of consumption, and the demand situation of means of consumption determines the demand situation of means of production. The second is the small elasticity of demand, that is, in a certain period of time, the varieties and quantities of demand will not change greatly due to price changes. From the product point of view, the products and services of the industrial market are used in the manufacture of other products or the provision of services, and are non-final consumption products; moreover, these products are highly technical and a number of them are expensive. From a purchasing point of view, industrial markets have several salient features: first, because of the highly technical nature of the products, purchasers must have relevant commodity knowledge and market knowledge. The second is direct purchasing. Purchases of means of production generally seldom go through intermediaries (except for standardized goods), but rather products are purchased directly from producers. Third, the purchase of large quantities and few buyers. As the main equipment of the enterprise is bought only once in a number of years, raw materials and spare parts are supplied regularly according to the supply contract.
(ii) Factors affecting purchases in the industrial market
The types of purchases in the industrial market can be categorized into three types: direct re-purchase, modified re-purchase and new purchase. Like consumer purchasing behavior, the purchasing behavior of producers will also be similarly affected by various factors. Webster and Wendell of the United States will affect the various factors affecting the purchasing behavior of producers is summarized in four major factors: namely, environmental factors, organizational factors, interpersonal factors and personal factors.
Environmental factors: Among the many factors affecting producer buying behavior, the economic environment is the main one. Purchasers of means of production are heavily influenced by current and expected economic conditions. When the economy is in the doldrums, or the outlook is poor, producers will scale back their investments, reduce their purchases, and compress their inventories and purchases of raw materials. In addition, buyers of means of production are affected by technological, political and competitive developments. Marketers need to pay close attention to the role of these environmental factors and strive to turn problems into opportunities .? Organizational factors: Each company's purchasing department will have its own goals, policies, work procedures and organizational structure. Industrial marketers should understand and grasp the buyer's internal purchasing department in its enterprise in what position - is a general staff departments, or professional functions; their purchasing decision-making power is centralized or decentralized decision-making; in the process of deciding to buy, which participate in the final decision-making, and so on. Only on these issues to do in mind, in order to make their marketing targeted.
? Interpersonal factors: this is the factor of personnel relations within the enterprise. The decision to purchase the means of production is made by the company's various departments and various levels of personnel composed of the "procurement center". The members of the "purchasing center" consist of quality managers, purchasing applicants, financial controllers, engineers and technicians. These members of the different status, power, persuasive differences, the relationship between them is also different, and the role of the procurement decision on the means of production is also different, and thus in the purchase decision on the more complex interpersonal relations. The means of production marketers must understand the user's purchase decision of the main personnel, their decision-making methods and evaluation criteria, the degree of mutual influence between the members of the decision-making center, in order to take effective marketing measures to obtain the user's presence.
? Individual factors: Although the purchase behavior of the industrial market is a rational activity, but still participate in the purchasing decision is a specific person, and each person in making decisions and taking action, are inevitably affected by their age, income, education, position and personal characteristics and attitudes to risk. Therefore, marketers should understand the individual circumstances of buyers in the industrial market in order to take "person-to-person" marketing measures.
(iii) Industrial market buying decisions?
Participants in the purchase decision: the purchase of the means of production, generally by full-time buyers and part-time buyers to form a "purchasing center". The enterprise's "purchasing center" generally consists of the following five kinds of people: users, influencers, purchasers, decision makers, controllers. It should be noted that not all companies need to involve all five of these people in the decision-making process to purchase any product. The size of an enterprise's purchasing center and participate in the personnel, depending on the different types of products to be purchased and the size of the enterprise itself and the organizational structure of the enterprise and different.
The process of purchasing decisions: the buyers of the means of production and the buyers of consumer goods, as well as the decision-making process, but there is no uniform format governing the actual purchase process of all the buyers of the means of production. It is generally believed that the purchase process of the user of the means of production is divided into eight stages: (1) put forward the need. (2) Determining needs. This refers to determining the quantity and specifications of the product needed. (3) Product specification. Refers to the specifications, models, functions and other technical indicators of the required products by professional and technical personnel to make a specific analysis, and make a detailed description for the procurement staff for reference. (4) Search for suppliers. In order to purchase satisfactory products, the procurement staff should be through the business enterprise directory and other channels, to identify good service, high product quality, good reputation of the supplier. (5) Solicit proposals. For multiple candidate suppliers that have been identified, purchasers should ask them to submit supply proposals, especially for high-value, expensive products, but also require them to write a detailed description of the suppliers left after screening, to ask them to put forward a formal description. (6) Selection of suppliers. After receiving relevant information from multiple suppliers, the purchaser will select the more satisfactory supplier based on the information. (7) Issuance of formal order. When the supplier is selected, the enterprise will send them a formal purchase order with the required product specifications, quantity, delivery date, return, warranty and other contents. (8) Performance evaluation. After the purchase of the product, the purchaser will also be timely to the user to understand its evaluation of the product, test the performance of each supplier, and based on the results of the understanding and examination, to decide whether to continue to purchase a supplier's products in the future.
Third, the government market
The government market consists of a variety of federal, state, and local governmental units that purchase or lease commodities to carry out the primary functions of government. In many countries, government organizations are the primary purchasers of goods and services. In the United States, in 1980, governmental units purchased $535 billion worth of goods and services, or 20 percent of the gross national product, making it the nation's largest purchaser, with the federal government accounting for about 35 percent of total purchasing expenditures among all levels of governmental units.
(I) Government Procurement
Government procurement is based on the idea that voters entrust government agencies with products and services that they must receive to achieve public goals. Government agencies procure a staggering range of products and services; they buy bombers, sculptures, chalkboards, furniture, sanitation equipment, clothing, material handling equipment, fire extinguishers, automotive equipment, and fuel, etc. In 1980, federal, state, and local units of government in the aggregate*** spent approximately $143 billion on education, $149 on defense, $64 billion on public*** benefits 44 billion on health care, $33 billion on highway construction, and $35 billion on natural resource development, in addition to small expenditures on postal construction, space development, and housing and urban renewal. Each level of government unit has a different mix of expenditures, in the case of the federal budget, mainly for defense spending, which accounts for 33 % of the federal budget, and in the case of state and local budgets, education spending accounts for 37 %. No wonder the government market is a huge market for any manufacturer or re-seller.
Government procurement has many characteristics. Because their purchasing decisions are subject to public scrutiny, they often require a great deal of paperwork from suppliers, who are quite vocal about this extra paperwork, bureaucratic regulations with unnecessary rules, delayed decisions, and frequent turnover. It's time for suppliers to learn as much as they can about these rules and try to find shortcuts through the red tape. For their part, government departments often give detailed guidance to potential suppliers, providing them with guidelines on how to sell their products to the government and so on. Another feature of government procurement is that suppliers are often asked to bid competitively. In most cases they select the lowest bidder, and sometimes they also select suppliers that provide a quality product or have a reputation for timely performance. A third characteristic of government procurement is that it tends to favor national firms. As a result, many multinational enterprises always bid jointly with suppliers from the host country.
(ii) Processes and Influences on Government Procurement
Government purchasers are influenced by environmental, organizational, interpersonal, and personal factors, and government procurement is unique in that it is under the close scrutiny of the outside public. Because government spending decisions are subject to public comment, government organizations do a great deal of paperwork and must fill out and sign a number of detailed forms before approving a purchase. The increasing role of non-economic criteria in government procurement requires government purchasers to support depressed business enterprises and regions, small business enterprises, and those that have abolished race, gender, and age discrimination, and sellers need to keep these factors in mind when deciding to do business with the government.
There are two types of government procurement procedures, open bid procurement and agreed contracts. Open bidding procurement is when the government procurement office invites qualified suppliers to bid on a carefully described item of government merchandise. Generally, it is the supplier with the lowest bid that is awarded the contract, and the supplier must consider whether it can meet the various specifications of the product and the terms of acceptance. In the case of daily necessities and standard items, the various specifications are not an obstacle, but in the case of non-standard items, this may be an obstacle, and the government procurement The Office is often required to award contracts to the lowest bidder on the basis that the winner takes all. In some cases, the Government Procurement Office will make some concessions because of the superiority of the supplier's product or its reputation for completing the contract. In the case of procurement under an agreed contract, the procuring agency approaches one or more companies and conducts direct negotiations with one of them on the project and the terms of the transaction. This type of procurement occurs mainly in transactions related to complex projects, often involving significant research and development costs and risks, or in situations where there is a lack of effective competition. There are a variety of contracting methods, such as cost-plus pricing, fixed price, fixed price and incentive methods. When the supplier's margins appear to be too high, then contract performance can be open to review or renegotiation.
For a number of reasons, many companies selling to the government sector do not exhibit a marketing bias. Government departments already emphasize price standards in their procurement policies and will direct suppliers to make efforts to reduce costs. In addition, product differentiation is not a factor to be utilized in marketing because product characteristics have been tightly defined, and even advertising and staffing do not play a significant role. However, some companies have begun to establish marketing organizations dedicated to the government sector.