Importance of CB
Transcript of Importance of CB
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Why Study Consumer Behaviour
The understanding of the reason why we
study consumer behaviour cannot be over
emphasis. Some of these however, include;
Firstly, Consumer behaviour is significant in
our Daily lives. The most important reason for
studying consumer behaviour from a general
Sense is the role it plays in our lives.
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Much of our time is spent directly in the
market place and shopping amongstothers. Secondly, consumer
behaviour is indispensable in decisionmaking. Consumers are often
study because certain decisions aresignificantly affected by their
behaviour or expected actions.
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Applications of Consumer Behaviour Knowledge :
From the marketing point of view,understanding consumer behaviour is
crucial to successful delivery of firms
offerings in the market place.
Some of the marketing application areas of
consumer behaviour
knowledge include;
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Market-Opportunity Analysis, this involves
examining trends and conditions in themarketplace to identify consumers needs
and wants that are not being fully satisfied.Target- Market Selection, this has to do withidentifying distinct groupings of consumerswho have unique wants and needs and the
selection of segment that matches the firmsstrength and offer better opportunities.
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Marketing- Mix Determination, thisinvolves developing and implementinga strategy for delivering an effective
combination ofwant-satisfying features to consumers
within target market. The marketing
mix is made up of four components;product, price,
promotion and place.
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Marketing strategy, understanding of
consumer behaviour is needed in
strategic marketing activities. This isbecause marketing strategies and tactics
are based on explicit or implicit beliefs
about consumer behaviour. EffectiveRegulatory policyin terms of marketing
practices requires an extensive
knowledge of consumer behaviour.
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Social marketing also require an in depth
understanding of consumers
and their behaviours or attitudes. Socialmarketing is the application of
marketing strategies and tactics to alter or
create behaviours that have
positive effect on the target individuals and
or society as a whole.
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Social marketing has been used in attemptsto reduce smoking, to increase thepercentage of children receiving their
vaccinations in a timely manner, toencourage environmentally soundbehaviours, to reduce behaviours
potentially leading to AIDS, to enhancesupport of charities, to reduce
drug use, and many other important courses.
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Marketing Strategy and Consumer Behaviour
To survive in a competitive environment, amarketer must provide target
customers more value than is provided by itscompetitors. Customer
Value is the difference between all the benefits
derived from a totalproduct and all the cost of acquiring those
benefits.
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Providing superior customer value requires
the organization to do better job of
anticipating and reacting to customerneeds than the competitors does. An
understanding of customer behaviour is
the basis for strategic marketingformulation.
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Consumers reactions to this marketing
strategy determine the organizations
success or failure. However, thesereactions also determine the success of
the consumers in meeting their needs,
and they have significant impacts on thelarger society in which they occur.
Marketing strategy is conceptually very
simple.
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It begins with an analysis of the target
marketwhich includes company,
conditions, competitors, and consumers.Next, Market segmentation: This involves
identifying product-related need sets,
grouping customers with similarneed sets, describing each group and
selecting an attractive segment to
serve.
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Third stage is marketing strategyand itinvolves manipulation of marketing mix.The marketing mix includes the product,price, communications, distribution, andservices provided to the target
market. The final stage Outcomes involves
analysis of firms product position andcustomer satisfaction resulting fromimplementation of the Strategy.
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Best Answer - Chosen by Asker
A perspective of marketing is about making a
consumer realise that they want your
product, even though initially they might
not.
Therefore it is important for marketers to
understand how consumers behave whenthey are exposed to particular advertising
methods and messages.
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For example. Consumer behavioural
theories such as the process of
innovation diffusion is vital for marketersas it allows us to understand how
different market segments, which have
different purchasing and thinkingcharacteristics might decide whether or
not to buy a product. For
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example - for a consumer in a relatively highsocial status earning reasonable money, apurchase of a laptop might not be such as high
involvement purchase since they have thedisposable income to afford it plus, if they areyoung to middle age, the chances are theyknow exactly what they want to get out of the
product since they have been brought up in agenerations where computers run our everyday lives.
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On the other hand, if the laptop was to be
marketed at a OAP, their consumer behaviour
to such product will change the overall
marketing effort to persuade such consumersthat they want the product. OAP for example
may not know exactly what a laptop can do
for them, and if they are living on a pension,such product may seem very expensive and
carries high amounts of purchasing 'risk'
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since they might not fully understand whetherthe product can solve their initial need to buy theproduct. If we relate back to the innovation
diffusion model and general purchasing decisionmaking process theories, marketers may thenhave to increase the amount of informationwithin their marketing campaign in order to
communicate exactly what the laptop can do forthem and how the price justifies they benefit.
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If you look at consumer behaviour in anotherperspective, many marketers and marketing
campaigns rely on people buying their product
due to the self concept theories of consumerbehaviour. Products such as Sony laptops rely
on people wanting to spend the extra money
on their laptops rather than a competitor suchas del who may have the same spec for a far
lower price because people buy into brands
like Sony to show off their image / status.
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If you see someone on a train with a delllaptop, you may not take a second look.
Meanwhile, someone using a Sony laptop;
people may think Wow, thats pretty cool andmay start associating the user as successful
and wealthy. Therefore, the Sony laptop user
has may have spent the extra money on Sony
rather than dell in order to portray this
reaction and create a positive self image for
himself. Look up a theory called the looking
glass self theory (Cooley 1902 or 1922).
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If brands can understand such form ofconsumer behaviour, it works hand in handwith brand management and productpositioning since once the marketers have
generated a positive, prestige image abouttheir products, they then rely on otherconsumers buying into this form of 'quality'and portraying their positive self image from
using this product to other consumer whothen may think ... 'that guy looked cool... iwant to buy one'....
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Another very important consumer behaviourconcept for marketers is how consumers learnabout a product. Does a marketing campaign
want to use cognitive learning approaches in itsadvertising i.e. whereby our product will beassociated with a band or a type of music or dowe want to use a form of instrumental or
behavioural learning approaches - A marketneeds to think what type of consumers they aretargeting, look at their general characteristic andthen work out what is the best approach to
generate their overall campaign objectives
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For example, cognitive learning approaches are used
(by theory) on more educated consumers as
theorists believe they have more ability to make a
cognition between i.e a song and a product - Check
out some Sony adverts - For example, every timepeople heard that Jose Gonzalez tune back in 2005,
people immediately thought of thousands of
coloured balls rolling down a hill in San Francisco -
then they thought of SonySo there you go - thats a few reasons why consumer
behaviour is vital to understand - because it is the
basis of how you are going to target your prime
target audience