How Buyer Behavior Is Used in the Context of Marketing - Essay Example

?How buyer behavior is used in the context of marketing Introduction The component of buyer behavior occupies a significant position in the context of marketing decisions taken by a company. In fact, the marketing decisions are made by a company keeping an eye on the impact rendered by such on the buying population of the country or region. Clarification of the buying behavior of the consumers renders useful insight into the consumer’s minds, which must be properly considered by the marketing and retail companies before taking any principal decisions. The buying behavior of the consumers encompasses many factors, which can be enumerated as follows. Firstly the study provides the information about the number of prospective buyers residing in a particular region. Secondly the study helps to understand the demographic and psychographic features of the buying population. Thirdly the study confirms the tastes of the consumers in relation to choosing and consuming different products. Fourthly it analyses the responses of the consumer to the different types of promotions carried on by the company. Fifthly it also endeavors to understand the responses of the consumers to change in the price structure of goods and services produced. Sixthly it helps in highlighting the desires of the consumers in making repeat visits to a certain stores located at particular localities (Malhotra, 2008, p.45). The behaviors of the customers can essentially be grouped under four categories. Firstly the products, which are cheaply available to the consumers, like snacks and cold drinks are almost bought by the consumer amounting from impulse and owe little to decision-making actions. Secondly the consumers while purchasing products from a known category often take little decisions regarding its brands and market value. However in the third case the consumers when purchasing products of high economic value and belonging to niche categories makes a lot of decisions (D’Souza, 2009). In order to study the realm of consumer behavior in the context of key marketing decisions taken by a company the case for the Luxury Retail Group, Marks and Spencer is chosen. Marks and Spencer Marks and Spencer located in United Kingdom earns popularity in being one of the largest departmental stores in the region offering to the customers a plethora of commodities pertaining to different categories. Estimates made show that on a weekly basis around 21 million customers pay their visit to the stores of the company located in United Kingdom. The products offered by the company are generally of high class and render the best quality to the different classes of consumers in the region. The products offered by the company belong to categories like women’s and men’s wear. Marks and Spencer which specializes in the women wear market also is expanding its share in the retail market by moving over to other categories like children wear and home furnishings. The company operates based on a total number of 600 stores based along the region of United Kingdom. (Marks and Spencer, 2011). Understanding Buyer Behavior in Retail Management The process of understanding the behavior of the consumers in the context of retail management can be subdivided along three essential fields of study. Firstly the retailer must make an analysis of the marketing segments to which it desires to offer its products and services. Secondly after segmenting the particular market the retailer must understand the process of targeting the prospective customers. Thirdly the retail operations of a company earn success in their strategy of positioning themselves in the light of the large number of competitors targeting the said market. The process of marketing segmentation in the context of retail management signifies the identification of those consumers to which the retailer desires to offer its products and services. The retail company also focuses to design its marketing programs, which aim to serve the consumers identified in the above context. Herein, the retail company also decides to opt between targeting the mass market and in their operations to classify the whole market into specific segments. Retail companies by segmenting the market-identified aims at rendering better control over the specific groups of consumers and in understanding their specific likes and dislikes. Proper marketing strategies involve the creation of separate marketing alignments for the different consumer groups identified along the whole market. The behavior of the consumers of the different marketing segments is analyzed depending on certain parameters. Firstly the retail company judges whether the consumer groups desire to make purchases of goods and services rendered by the specific retailer. Secondly the retailer analyses whether the consumers belonging to the particular segment has the potential of purchasing the goods and services provided by the company. Thirdly the retail company must also gauge the number of prospective consumers in the different consumer segments, which has the potential of generating adequate profits and sales revenue for the company. The retail company in this connection must rightly estimate the number of prospective customers residing in the particular segment so as to make successful planning of the amount of merchandise to be allocated in the stores of the region. Further the geographic position of the large customer bases helps to conduct promotional activities in an efficient manner. Retail companies selling niche products must render special emphasis to understanding the income level of the consumers in the specific region and also endeavor to focus on the how the consumers perceive their product and service (Ogden, 2005, pp.69-70). The markets being properly segmented the retail company now endeavors to understand the behavior of the consumers of the different target or focus groups. In understanding the buying behavior of the consumer groups the retail company focuses on the desires and preference patterns of the consumers. This study helps the retail companies to make proper cost allocations for rendering effective assortments in the promotion and merchandising operations aimed at such focus groups. Effective retail strategy aims at understanding the psychology, economic and social profile of the consumers along with their specific locations for correctly targeting the right consumers in selling the goods and services. (Ogden, 2005, pp.70-71; Berman, 2007, p.222). The positioning activities of the retail companies take into consideration the perception of the different consumers of a particular consumer segment. Segmentation activities taken in the earlier stage divides the mass market into homogeneous sectors based on the factors of consumer behavior pertaining to the consumers’ economic and social position. The preferences and geographic positions of the consumers are also analyzed. The positioning activities of the retail companies constitute associating the product and service offered by them with the characteristics of the consumers of the particular segments. Thus strategizing a higher position in the market encompasses the enhancement of the association with the consumer groups. Retail companies in order to create a successful brand image enhance on the parameters of customer loyalty, which helps the companies to maintain a large base of loyal customers. The consumer groups through improved association with the retail companies develop their perception about the products and services offered which in turn makes the consumers feel more aware and learned. Thus the retail companies employ several marketing, promotional, product and service mixes to create increased brand awareness in the target or mass market. The retail companies also enhance on the parameter of store atmospherics through bettering up the layouts, the lighting, sound and other arrangements to attract the attention of the consumers and develop their perceptions for the products and services offered (Zentes, Morschett, & Klein, 2007, pp.126-129; Swodoba, Morschett, Rudolph, Schnedlitz, & Klein, 2009, p.102). Marketing Mix of Marks and Spencer-Effects of Consumer Behavior The luxury departmental retail stores of Marks and Spencer until recently made a mark in rightly addressing the needs and desires of the women population of the region of United Kingdom. However in recent times a decline in markets share of the retail company can be observed in successfully targeting the consumer segment with the growth of another retail firm ASDA in collaboration of Wal-Mart in that sector. To counter the decline and to successfully target the mass market of women consumers the company has taken resort to certain marketing mixes. The retail company Marks and Spencer, in order to attract the attention of the specific consumer segment, women in the clothing sector started introducing a host of fashionable products. The huge assortment of fashion merchandises introduced creates a visual appeal in the minds of the consumers who thereby feel attracted to the same. Further the marketing mix strategies of Marks and Spencer also created a visual appeal to the active women customers through the introduction of sporting wears. Furthermore the retail company also created a separate segment in the women’s wear where the company created some specially designed categories for women. These specially designed clothing wear created a niche segment in the target market for they aimed at targeting the women customers of higher income levels. The marketing mix envisaged by Marks and Spencer not only focused on creating the right merchandise for the women population but also focused on developing their pricing, quality, promotional and advertising standards aimed at attracting the target market (Lancaster & Withey, 2006, pp.85-86; Gilbert, 2003, p.271; Wilmshurst & Mackay, 2002, p.413). Thus Marks and Spencer’s marketing mix strategized customization of the products produced by focusing on the needs and aspirations of the target groups. The entire set of merchandising activities right from the production, distribution, pricing and promotion operations of the company is conducted keeping in mind the desires of the consumers (Marketing Mix, n.d.; Dennis, n.d.; Zentis, 2006, p.181). Marketing Communication Channels of Marks and Spencer to influence Consumer Decisions The departmental retail company of United Kingdom has created an electronic commerce channel of marketing communication to attract large groups of customers spread along a wide market base to their products and services. However the Internet marketing communications strategy of the retail firm is under severe criticism by marketers for it is assumed that the company may lose its personal touch with the consumers (Hines & Bruce, 2001, p.217). The retail company also uses the advertising as a prominent tool of marketing communication, which sets promotional objectives for its different products and services. The advertising of the new and fashionable product lines by the retail arm serves as a key in influencing the buying decisions of the consumers. Further the advertising communication channels of the company helps the company to venture into the realms of direct contacts with the consumers in a more effective manner (Kitchen & Pelsmacker, 2004, p.28). The United Kingdom retail company, Marks and Spencer being a high street fashion departmental store believes that marketing communications is further enhanced with the prospective customers through proper availability of stores and gaining knowledge about customer tastes and preferences. The retail company though expends amount on advertisement activities yet it believes that marketing activity should be more customer centric than merely focusing on enhancement of brand value. This activity of Marks and Spencer in making stores gets properly connected to the customer network and conducting a wide range of market research activities to judge the preference patterns of customers takes much longer time to attract potential buyers than extensive advertising. However Marks and Spencer has earned considerable success in this communication strategy (Monye, 2000, p.98). In another case the high street fashion retailer in United Kingdom after demise in its sales countered a strategy based on building its corporate branding through conducting of extensive marketing communications. Marketing communication conducted by a company in designing its corporate brand image to the mass market is known as the strategy of corporate communications. Further the entire ambit of corporate communications taken by a company can be essentially divided into three parts viz. primary, secondary and tertiary. The primary communication taken by Marks and Spencer was through the enhancement of its product features in the fashion market and making the operations more customers centric. Secondary type of corporate communications involves the extension of its brand image through mass advertising and promotional activities. Both the primary and secondary type of corporate communications is manageable by the company. The tertiary type of marketing communication is the uncontrolled part and depends on the exchange of opinions by the customers and other external stakeholders. The range of corporate communications taken by Marks and Spencer was not only to enhance the company’s brand image but also to expand their understanding of changing consumer tastes and preferences (Balmer & Greyser, 2003, pp.310-311). The retail company also renders focus on its public relations strategy to improve its relations to the consumers in the mass market. Through effective public relations the company focused on expanding its loyalty programs and meeting customer needs through the presentation of more fashionable and sophisticated products (Moss & DeSanto, 2002, pp.266-267). The consumer decision-making process begins with identification of the consumer needs, which also accounts for the problem generation owing to changes in such. The retail or marketing company having identified a specific need needs to conduct extensive research based on such. Consumers in the mass market would also try to adopt new alternatives to the existing product for satisfying their needs. Marks and Spencer through extensive study of their consumers’ behavior and need changes are continuously developing newer products and developing store images to make the customers feel and purchase the product. Finally the marketing and retail companies also conduct research based on the customer’s evaluation having used the product through gaining proper feedback (Buyer Behavior-Decision Making Process, n.d.). The theory of diffusion in relation to consumer behavior shows that products introduced in the market pass through a specific life cycle viz. introductory stage, the growth stage, the point of maturity and finally the market for such product tends to decline. Marks and Spencer in regards to the diffusion theory depends on spontaneous innovation, which helps the firm to present unique and sophisticated products to the customers (Diffusion of Innovation, n.d.). Another popular buying behavior theory related to the retail market is the “Theory of Merchandise Buying Behavior”. Firstly consumers tend to buy such products from retailers, which have the potential of satisfying their requirements both psychological and physical. Further the requirements of merchandise are governed by economic benefits like offers and discounts and availability of different product categories. Secondly the buying behavior of the merchandise is also related to the potential of the suppliers who satisfy the quality and volume parameters of the merchandise. The choice parameters of the consumers are mainly fixed along these angles, which are controlled by the retail company (Sheth, 1980, pp.1-7). The company Marks and Spencer in this regard not only presents to the customers a wide range and assortment of different types of products but also renders specific offers and discounts to the customers through their websites and advertisements. (Current Offers, 2011). Further the suppler community of Marks and Spencer is dedicated to presenting the customers with natural products both in the apparel and non-apparel segment. The products, which are mainly organic in nature, render enhanced sustainability to the customers. (How do we do business, 2011). Conclusion Consumer Behavior is an important paradigm, which needs to be studied by a marketing company or retail firm in order to rightly, satisfies the growing needs of the consumers. The behavior of the consumers pertaining to a particular region is analyzed based on their income levels and also on the social, psychological and demographic profiles. Retail companies tend to also analyze the density of consumers pertaining to a certain region through which they render merchandises and conduct promotions. Marks and Spencer to excite the consumer behavior resorts to continuous innovations and presents the customers with newer products, which are fashionable in nature. The company has also a wide range of suppliers who mainly use natural materials to manufacture such products, which enhances the company’s image. References 1. Malhotra, N. (2008), Marketing Research: An Applied Orientation, 5/E, Pearson Education India 2. D’Souza, L. (2009), Understanding Consumer Buyer Behavior, available at < http://marketingbones.com/understanding-consumer-buyer-behavior/> (Accessed on February 28, 2011). 3. “Marks and Spencer” (2011), Available At < http://corporate.marksandspencer.com/aboutus> (Accessed on February 28, 2011). 4. Ogden (205), Retailing: Integrated Retail Management, Dreamtech Press. 5. Berman (2007), Retail Management: A Strategic Approach, 10/E, Pearson Education India. 6. Zentes, J., Morschett, D. & H. Klein (2007), Strategic Retail Management: Text and International Cases, Gabler Verlag. 7. Swodoba,B., Morschett, D., Rudolph, T., Schnedlitz, P., & H. Klein (2009), European Retail Research, Gabler Verlag. 8. Lancaster, G. & F. Withey (2006), CIM Coursebook 06/07 Marketing Fundamentals, Butterworth-Heinemann. 9. Gilbert (2003), Retail Marketing Management, Pearson Education India. 10. Wilmshurst, J. & A. Mackay (2002), The fundamentals and practice of marketing, Butterworth-Heinemann. 11. “Marketing Mix” (n.d.), tripod.com, Available At< http://university-essays.tripod.com/marketing_mix.html> (Accessed on February 28, 2011). 12. Dennis, C. (n.d.), The Marketing Mix, Available at < http://www.bola.biz/marketing/mix.html> (Accessed on February 28, 2011). 13. Zentes, J. (2006), Strategic Management: New Rules for Old Europe, Gabler Verlag. 14. Hines, T. & M. Bruce (2001), Fashion marketing: contemporary issues, Butterworth-Heinemann. 15. Kitchen, P. & P. Pelsmacker (2004), Integrated marketing communications: a primer, Routledge. 16. Monye, S. (2000), The handbook of international marketing communications, Wiley-Blackwell. 17. Balmer, J. & S. Greyser (2003), Revealing the corporation: perspectives on identity, image, reputation, corporate branding, and corporate-level marketing : an anthology, Routledge. 18. Moss, D. & B. DeSanto (2002), Public relations cases: international perspectives, Routledge. 19. “Buyer Behavior-Decision Making Process” (n.d.), tutor2u.net, Available At: http://tutor2u.net/business/marketing/buying_decision_process.asp (Accessed on March 1, 2011). 20. “Diffusion of Innovation” (n.d.), consumerpsychologist.com, Available at (Accessed on March 1, 2011). 21. Sheth, J. (1980), A Theory of Merchandise Buying Behavior, Available At (Accessed on March 1, 2011). 22. “Current Offers” (2011), marksandspencer.com, Available At < http://www.marksandspencer.com/Offers/b/82867031> (Accessed on March 1, 2011). 23. “How do we do business” (2011), marksandspencer.com, Available At < http://corporate.marksandspencer.com/howwedobusiness/our_policies/sustainable_raw_materials/sustainable_processes>(Accessed on March 1, 2011). Read More

 

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