The Relationship Between Analysis of Consumer Behavior and Strategic Marketing Planning - Term Paper Example

?[Your full full December 05, Consumer Behavior – Marketing Strategy Introduction Before going to discuss the relationship between analysis of consumer behavior and strategic marketing planning, let us get a better understanding of what consumer behavior actually is. Tatum states, “Consumer behavior consists of the actions that consumers take in regard to making decisions about purchasing various goods and services”. The study of consumer behavior focuses on the factors that make consumers buy or reject a product. Some of the major factors, which influence consumers’ decision regarding purchase of a product, include price of the product, quality of the product, self-image, cultural factors, and social pressure. “Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class” (Shah). Analysis of consumer behavior is very important for the managers because it helps them develop marketing strategies in accordance with the mindset of the consumers. Strategic Marketing Planning Masters states, “Strategic marketing is a consumer-based approach to product promotion that identifies market segments and attempts to make them more profitable by providing superior value”. Strategic marketing is the type of marketing which managers use to create such plans for the company, which should not only motivate consumers to buy the products of the company but also should increase the productivity and profitability of the company. Productivity depends on the satisfaction and retention of customers of the company. When the customers will be satisfied from the products of the company, they will work as a source to attract more customers for the company and as a result, the productivity and the profitability of the company will increase. It is a fact that when a company makes a customer, it makes one customer, but when it loses a customer, it actually loses a hundred customers. So, such marketing plan should be implemented by the managers, which should not only retain old customers but also should be able to attract more customers. Some of the most effective marketing methods that can be included in strategic marketing plans include billboards, television ads, brochures, newsletters, and web based marketing. All of these methods have a significant importance in marketing of a company’s products. These methods really prove to be successful for the companies to make consumers buy their products. Perner states, “The study of consumers helps firms and organizations improve their marketing strategies”. Strategic marketing is the powerful force, which drives an organization towards achievement of desired goals and objectives regarding any innovation. A company should typically create and develop a well-written strategic marketing plan, which should be able to promote the innovative products of any organization. The main purpose of designing and implementing an appropriate strategic marketing plan encompasses two basic motives. First motive is to attract consumers towards the product whereas the second motive is to increase the productivity of the company. If a company becomes able to attract the customers in a competitive market through suitable and effective marketing techniques, its success and competitive edge in the market can really be guaranteed. Achieving market supremacy is the mission of most of the manufacturing companies and this mission can only be achieved through developing and launching such marketing campaigns strategies, which are able to reach a large number of consumers. Market supremacy can be achieved when a company uses such modes of marketing, which make use of latest technologies like internet, emails, television adds, and other stuff like that. When the managers of a company want to create a strategic marketing plan for a new product, they consult the plan with different departments, such as, sales, administration, and operation for of identification of marketing goals. It is the role of the strategic marketing managers to set up appropriate marketing mechanisms for the marketing and promotion of the products manufactured by the company. Consumers are always attracted towards a product, which is properly marketed. Therefore, it is very important for the managers to develop appropriate marketing strategies, which should be able to influence consumers’ decision regarding purchase of a product. Talking about the importance of an effective marketing strategy, we must say that it helps a company achieve market dominance in a competitive market. It can only happen when the company properly analyzes and evaluates basic demands of the customers and works on those demands to gain customer satisfaction. It not only helps the company penetrate in the competitive market but also helps in increasing quality of the products. Some of the major goals of a manufacturing company include attracting consumers, selling more products, and achieving higher levels of profits. If these goals are not met successfully or appropriately, a company can never achieve the ultimate goal of market domination. The strategic marketing manager of a company should give proper attention to the identification of the consumers’ needs, analysis of consumer behavior, and achievement of the marketing goals. He/she should analyze the competitive markets and opportunities in those markets in order to take such strategic decisions, which should be long-term in nature and should not distract or sidetrack sales and day-to-day marketing activities. When we talk about strategic planning process, we should also discuss those points, which need special consideration in the strategic marketing planning process. If the strategic marketing manager takes into account these points properly, the company will be able to develop such a plan, which will really help the company in the achievement of various goals and objectives. First focal point regarding strategic marketing plan is that the company should know what those basic needs are or issues that make the public prefer to buy from our company. Customers’ attitudes towards the company’s products should be thoroughly researched. Not only this, research regarding the product category and the competitive markets also has critical importance. The managers should also analyze the attractiveness and magnetism of the target markets. Managers should be able to identify and recognize customers’ needs and should take appropriate steps in order to make further improvements in those products that the customers buy from the company. Managers should examine the needs of the consumers and should take such steps, which should enhance the quality of the products along with attracting customers towards the company. The company should be able to know the groups of customers that are more attracted towards the company’s products and services and the groups of customers who are not attracted towards our company yet. The company should identify and examine the issues, which come in the way to stop certain groups of customers from coming to our company for their needs and desires. Such steps should be taken which could enable the company in meeting those needs and demands. Ways to Mold Consumers’ Buying Behaviors Direct Mail “Direct mail is a marketing technique in which the seller sends marketing messages directly to the buyer” (Withers). Direct mail is also a good method to mold consumers’ buying behavior. Companies send direct electronic mails to the key customers in order to provide them with the information about new products. Companies maintain a database where they store the email addresses of the key customers and whenever they manufacture a new product, they send an email to all customers. By looking at the business relationship through eyes and mindset of the customers, companies discover their needs and value expectations in order to manufacture an attractive product for the customers. Direct mail has been a strong tool to attract customers towards the products of any specific company because they make the customers feel valued when the customers receive emails from the company. Sales Promotions Sales promotion is a part of personal selling process, which makes a customer buy the products of the company. The main purpose behind implementation of sales promotion strategies is to increase the sales of the company by offering valuable benefits to the customers. King states, “Sales promotion can be targeted at the wholesaler, retailer or even at times the end customer”. Sales promotion also helps the companies increase their reputation in the eyes of the customers. Some companies make use of incentive rewards and online loyalty schemes to attract customers. It is a fact that if a company gives respect to the customers by keeping in view the available budget of the customers and meeting their needs and demands, it will help the company increase its sales and profits. A good sales promotion technique is one, which solves the customers’ budget problems by acknowledging the budget constraints and offering discounts (Edelman). Some of the most popular sales promotion techniques which most of the companies use include discount vouchers, customer loyalty cards, gifts, money off coupons, and discounts. Editorials and Public Relations Online editorials and newsletters play a beneficial role in creating awareness among the people about a company’s products. In most of the newsletters, customers are the focus of the companies. Whenever a company manufactures a new product, it informs its key customers through newsletters and online editorials in order to sell the product. Companies include the product’s specifications and features in the newsletter in order to give a detailed picture of the newly manufactured product. Same like newsletters and online editorials, social networks, such as, twitter and facebook also play an important role in creating awareness among the people. Personal contacts are also very important in this regard. Companies motivate their employees to maintain good working relationships with the customers in order to increase the sales and gain customer value. On-Site Communication Interactive mass communication is one the ways to reach a large number of consumers. Attracting customers towards the company’s products is the main goal of every company and to achieve this goal they make use of online promotions to make the visitors open their websites. Some of the main objectives of interactive marketing and mass communication include use of offline and online promotions, use of on-site communicators, and integration of communication channels. On-site communication is another aspect of creating customer value through interactive marketing. Leverkuhn states, “Businesses of all sizes use customer value as part of a greater analysis to determine how well they are supplying their customer base”. Using on-site communication, companies deliver effective, useful, and most relevant messages to the customers in order to make the customers aware of the products and services provided by the companies. On-site communication has proved to be a very effective in attracting customers towards the products of any specific company. Sales representatives and customers share useful information about the products, which results in creating value of the products in the eyes of the customers. The third objective of interactive marketing is to integrate all communication channels in the process of creating customer value. A communication channel is a medium through which a company delivers its messages to the customers. Companies make use of various types of communication channels, such as, telephones, emails, televisions, radios, and newspapers to communicate with the customers. Search Engine Marketing One of the best ways to sell the products of the company is through search engine marketing. The benefit of placing the advertisements on the search engines is that when a customer searches for any specific product on the search engine, he gets a complete list of products, which actually meet his requirements. Sometimes, users do not know the name of the company and they just type the name of product on the search engine’s address bar. In such cases, the search engine shows all links to the customer which contain the desired product. Search engines are one of the primary tools for anyone who is seeking information regarding any specific product. Companies need to pay the slotting fee to the search engine owners in order to remain at the top of the search engines’ lists. Conclusion Summing it up, analysis of consumer behavior is very important for the managers to develop effective marketing strategies, which are able to attract a large number of consumers towards the company’s products. Strategic marketing is the type of marketing, which managers use to develop marketing strategies based on the analysis of consumers’ buying behavior and marketing opportunities. There exist different communication methods, which companies can use not only to create customer value but also to mold consumers’ buying behavior. Works Cited Edelman, Daryn. “Sales promotion Techniques.” Ehow.com, n.d. Web. 05 Dec. 2011. King, William. “Sales Promotion Strategies.” Ezinearticles.com, 19 Mar. 2010. Web. 05 Dec. 2011. Tatum, Malcolm. “What Is Consumer Behavior?.” Wisegeek.com, n.d. Web. 05 Dec. 2011. Leverkuhn, Andrew. “What is Customer Value?.” Wisegeek.com, n.d. Web. 05 Dec. 2011. Masters, Terry. “What is Strategic Marketing?.” Wisegeek.com, 02 Sep. 2011. Web. 05 Dec. 2011. . Perner, Lars. “Consumer Behavior: The Psychology Of Marketing.” Consumerpsychologist.com, n.d. Web. 05 Dec. 2011. Shah, Asifo. “Factors Affecting Consumer Behavior.” Aipmm.com, 27 Jul. 2010. Web. 05 Dec. 2011. Withers, Bob. “The Advantages of Direct Mail as a Marketing Tool.” Articlesbase.com, 15 May 2008. Web. 05 Dec. 2011. Read More