Analyzing consumer markets
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Transcript of Analyzing consumer markets
Analyzing Consumer Markets
Definition of Consumer Behavior
The study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
Overall Model Of Consumer Behavior
Cultural FactorsFundamental Detriment of consumer’s wants & behavior Set of values, perceptions, preferences, & behaviors acquired thru Family & key InstitutionsSubcultures: Specific Identification & socialization for their members Include Nationalities, Religions, Racial Groups & Geographic Regions Large Subcultures indicate special marketing programs - Diversity Marketing
Cultural FactorsWhy they do certain things: “Coz it’s the right thing to do” Each individual perceives the world through his own cultural lens Wedding associated with Champagne but
Wedding associated with purity & holiness South India: Coconut oil- Major source of
cooking Juices as health or occasional drink –
Penetration required
Cultural FactorsDifferent Ethnic & Demographic niches don’t respond favorably to Mass MarketingMcDonald’s: No Beef Products used Pepsi: All Hinglish CampaignsMcDonald’s: Aloo Tikki Burger Fair & Lovely: Marriage to Aspirations Pongal & Baisakhi Festivals celebrations Horlicks : North India & South India
Social Class
Homogeneous & Enduring divisions in a society, which are hierarchically ordered
Members share similar values, interests & behavior
Reflection of Relative Wealth, Power, Prestige
Reflection of Income, occupation, Education & area of residence
Differ in dress, Speech Patterns, Recreational Preferences & other characteristics
Social Class
Each Class tend to behave more alike than persons from two different social class Persons are perceived as occupying inferior or superior positions according to social class Social class indicated cluster of variables I.e occupation, income, wealth, education & value orientation than by single variable Individuals can move up or down the social class ladder during their lifetimes
Social Class- Importance Show distinct product & brand preferences in many areas including clothing, home furnishings, leisure activities & automobiles
Consumers purchase certain products because these products are favored by members of their own or higher social class or avoid due to vice – a –versa
Social classes differ in media preferences, with upper class consumers preferring magazines & books and lower class preferring Television
Language differences among the Social Classes
Social FactorsReference Groups:
Groups that have direct or Indirect influence on person’s attitude or behavior Any person or group that serves as a point of comparison for an individual in forming either general or specific values, attitudes or behavior Primary Groups: Family, friends, neighbors, co-workers – Direct Influencer Secondary Groups: Religious, Professional
Reference GroupsReference Groups expose an individual to new behaviors & lifestyles
Influence attitudes & self concept
Pressures for conformity that may affect actual product & brand choices
Aspirational Groups are those a person hopes to join
Dissociative groups are those whose values and behaviors an individual rejects
Reference Groups Friendship Groups: Mera No 1
Work Groups: Van Heusen shirts
Brand Communities: Apple, Harley Davidson
Celebrities:Adidas: Sachin TendulkarLux: Madhuri Dixit Ray Ban: Tom Cruise: Top Gun
FamilyMost Influential primary reference group
Family of orientation: Parents & Siblings Influence on Religion, Politics, Economics Sense of Right & Wrong Personal Ambition, Self Worth & Love
Family of Procreation:Spouse & children Product category buying variations according to
influence
Role & Status Role & Status define person’s position in its groups
A role consists of the activities a person is expected to perform
Each Role carries a status
People chose products that communicate their role & status in the society
Status symbol Potential of Products & Brands becomes very important
Roles & Status
Anil Ambani:Mercedes SL 500 Chartered Planes Seven Star HotelsArmani Suits Mont Blanc PenGolf
Analyzing Consumer Markets 1. Personal Factors
Age & Stage in Life Cycle:Need for different product categories changes
with Life Stages Tastes in Clothes, recreation, Automobiles are
purely age related Family Life Cycle influences consumption in a
big way Financial positions & Typical product interests
of each group are different
Personal Factors
Occupation & Economic Circumstances:Need & Consumption patterns for each
occupation are going to be different Companies tailor different products for each
occupational group Product Choice is affected by economic
circumstances Disposable Income patterns, Savings & assets,
Debts, borrowing powers & attitudes to spending
Income sensitive goods are greatly affected by Personal Income, Savings & Interest Rates
Personal FactorsLifestyle:Person’s pattern of living in the world as
expressed in activities, interests & opinions Portrayal of the person’s interaction with the
environment Psychographics is science of measuring &
categorizing consumer lifestyles Different profiling of people
Personal Factors Personality & Self Concept:Personality refers to distinguishing psychological
traits that lead to relatively consistent & enduring responses to environment
Three Distinct Properties:Reflects Individual Differences : Categorization
& Segmentation Consistent & Enduring: Appeal to relevant Traits Personality can change: Develop Products &
Ideas
Personality
Brands Personality is the specific mix of human traits that may be attributed to a particular brand
Consumers are likely to choose brands whose personalities match their own
Brand PersonalitiesNIKE: Athlete: Michael Jordan
ADIDAS: Sports: Sachin Tendulkar
TAG : Style & Trendy: SRK, Tiger woods
Omega: Sophisticated & Class:Pierce Brosnan
Levi: Dependable & Rugged
BMW: Performance
McDonald's : Fun& Entertainment: Ronaldo
Psychological FactorsMotivation:
Needs are the essence of the Marketing Concept
Key to growth is ability to satisfy un filled consumer needs
Marketers don’t create needs, they make consumers more keenly aware of their unfelt needs
Markets are defined in terms of needs rather than Products
Motivation is a driving force that impels them to action Driving Force is produced by a state of tension that exists
as a result of unfulfilled needs
MotivationMarketers must view Motivation as the force that induces consumption, & through consumption experiences, the process of consumer learning
Two Fundamental Concepts: Need: A state of deprivation Goals: Goals are sought after results of motivated
behavior: MBA from IIMs Thirst quenching thru Tropicana Juice Traveling by Chevrolet Optra NIKE for jogging
Positive & Negative Motivation
Emotional & Rational Motive
Psychological Factors Motivation:A motive is a need that is sufficiently pressing to
drive the person to act
Maslow’s Theory:Human needs are arranged in form of hierarchy
from the most pressing to the least pressing People will try to satisfy their most important
needs first & next most important & so on Goal is to let the marketers understand how
various products fit into the plans, goals & lives of consumers
Maslow’s Hierarchy Law
Esteem Needs(Self Esteem, Status
Social Needs(Sense of Belonging, Love)
Safety Needs(Security, Protection)
Physiological Needs (Food, Water, Shelter)
Self Act Needs
Herzberg Theory
Two factor Theory:
Dissatisfiers & Satisfiers
An active Satisfier & absence of dissatisfier
Sellers should do their best to avoid dissatisfiers – Un sell the product
Supply the major satisfiers or motivators of purchase in the market
PerceptionProcess by which an individual selects, organizes & interprets information inputs to create a meaningful picture of the world Perception vary widely among individuals exposed to same reality Three Perceptual processes:Selective Attention: Challenge to present stimuli which people notice Current Need, Anticipate, Large Deviations
Selective Distortion: Tendency to twist info into personal meanings that fits our
preconceptions
Selective Retention: Selective Points retention Drama & Repetition
Learning Change in individual behavior arising from experience
Interplay of drives, cues, stimuli, responses & reinforcement
Learning theory indicates Marketers how they can build up demand for their product by building strong drives, using motivating cues, & providing positive reinforcement
Beliefs & AttitudesA belief is a descriptive thought that a person holds about something
People’s beliefs about product & brand influence their purchase decisions
Marketers need to work upon beliefs consumers carry about their brand
A Brand triggers offs various nodes:
Reliance: Big, Reliable, Affordable Products, Efficient , Consumer Friendly
Attitudes
An attitude is person’s enduring favorable of unfavorable evaluations, emotional feelings, & action tendencies towards some objects or ideas
A frame of mind for liking or disliking, fairly consistent in nature
To fit the product into existing attitudes of persons