The Role of Perception in the Design of Effective Marketing Activities - Term Paper Example

The Role of Perception in the Design of Effective Marketing Activities Introduction In designing strategies for specific products or services, marketers embrace societal needs and ethical business practices because ethics, like preference, may be considered a product of values. To some, the suggestion that an orderly and analytical process of decision making, not only on a personal level – but more so in business, should include the discussion of highly controversial ethical issues, about which honest differences of opinion are common and self-deceiving rationalization endless, is repugnant. Ethics, after all, encompass wider perspectives of human concerns ultimately affecting business organizations. Marketers recognize that a person’s buying choices are influenced by four major psychological processes – motivation, perception, learning and beliefs and attitudes (Kotler, 1980, 144). In this regard, the objective of this essay is to develop a critical awareness and understanding of consumer and organizational buyer behavior and how they can be influenced by marketing activity. Specifically, the following aims would likewise be addressed: (a) to describe the principal aspects of human psychology which influence consumer behavior and decision making; (b) to identify the main social, cultural, and environmental influences on buyer behavior; (c) to distinguish between consumer and organizational buyer behavior; and (d) to evaluate critically the range of marketing techniques which can be employed to influence consumers. The Role of Perception in Buying Behavior As clearly identified by Kotler, perception is one of the four major psychological processes that influence the buyers’ choices, in addition to motivation, learning beliefs and attitudes. Perception is defined as “the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world” (Kotler, 1980, 147). Accordingly, he averred that “perception depends not only on (1) the character of the physical stimuli but also on (2) the relation of the stimuli to the surrounding field and on (3) conditions within the individual” (ibid). The IBS Center for Management Research (ICMR) explains that perception “is the process through which a person forms an opinion about the various stimuli he receives from his sensory organs. (It) is concerned with understanding how the consumer views a product or service. The five senses of a person help him in this process. The marketer uses various props to stimulate the consumer, that is, through the use of colors, sound, touch, taste, or smell, to observe the product” (2010, par. 1). There are mental processes that are clearly manifested in every consumer’s decision-making when faced with vast alternative courses of action. As Kotler proffered, there are three mechanisms which explain the rationale for people’s diverse perceptions of practically the same stimulus object or situation. These aspects of human psychology influencing consumer behavior and decision making are more commonly known as the selective exposure, selective distortion, and selective retention (Kotler, 1980, 147). Aspects of Human Psychology Influencing Consumer Behavior Studies reveal that knowing is the end of a chain that begins with perceiving (by the senses), continues through thinking (by which the brain converts external events into images and symbols such as words), and ends in remembering (which stores information in memory, for later retrieval). Psychologists prefer the term cognition, which includes the processes of inquiry and analysis or synthesizing alternatives and processes prior to decision-making. Cognition covers every mental activity that is commonly regarded as thinking or knowing: perceiving, recognizing, learning, conceptualizing, imagining, problem-solving, remembering, reasoning, and judging (Reader’s Digest, 1990, 172). The three mechanisms mentioned above explain people’s different perceptions to same stimuli. Selective exposure indicates “the perception by an individual of certain, more relevant, facts or advertisements but not of others; a process by which people avoid stimuli in their environments, such as leaving the room while commercials are on TV; and the conscious or unconscious exposure to a limited set of information, messages, or media” (American Marketing Association, 2010). This mechanism makes marketers more aware that their strategies should be designed in such a way that people would notice their advertisements or promotional campaign from the vastly available ads in the market. Larger promotional materials are more noticeable than those smaller in size. Colorful advertisements are more effective than ads printed in black and white materials. People who are motivated to purchase a certain need are conceived to have greater tendencies to notice advertisements that answer their need. Likewise, consumer goods located in a distinct place assist consumers in anticipating that they can select a variety of choices from that situation. Selective retention, on the other hand, is defined by the Monash Marketing Dictionary (2009, par. 1) as “the perceptual process in which people subconsciously are most apt to remember information that confirms their previously held attitudes”. Concurrent with the example abovementioned, people would tend to purchase certain products or services which conform to their interests, preferences, and beliefs. They will definitely forget much of the information and details of other products they are least interested in and in which they perceive would benefit them the least. For example, students undertaking degrees in information technology and communication are most interested in computer specifications and capacities than students taking health related courses due to their need and preferences as required of their field of endeavor. Finally, selective distortion means “the perceptual process which occurs when people subconsciously try to make new information fit their old ideas about something” (Monash Marketing Dictionary, 2009). An example of this in that when a consumer intends to buy a specific brand of a cellular phone, the qualities and specifications that suits one’s purpose for buying is the one that is reinforced. Any good qualities of a competing brand would out rightly be dismissed and negated. Stanton (1978, 122) identified that the psychological forces that influence consumer buying behavior are learning experiences, personality, attitudes and beliefs, and self-concept. One or more motives within the individual triggers the behavior to have preference over a particular product based on ones experiences, personality, values and self-worth. The choice, which is a matter of preference and perception, will ultimately lead to ones satisfaction. Factors Influencing Buying Behavior Several factors within the consumers’ environment influence their buying behavior, to wit: social, cultural, and environmental factors. Social factors indicate the income level a person belongs to in the community. This factor affects the kind and frequency of products preferred and purchased depending on one’s financial status and social norms. Friends, family and other relatives or associates also influence buying behavior in terms of the advice and comments that they make based on preconceived notions or past experiences. On the other hand, culture makes a profound impact on consumer buying preferences. The impact of culture on the marketing functions of global organizations is so relevant and profound that it cannot be discounted in its unique attributes. In global organizations, culture plays an important part in influencing and affecting the host organizations’ operations in terms of interacting with a collective group of people, whose values, beliefs and traditions are diversely variant from theirs. An article entitled Culture contained interesting and diverse definitions of culture depending on perspectives: “culture encompasses diverse elements of traditions, attitudes, knowledge, beliefs, religions, concepts of time and space, universal concepts, artifacts, among others, which are unique to a group of individuals across generations”. The following elements are critical in understanding corporate culture in global markets: legal environment, language, social setup, material culture, politics, and education and values. Language is an important factor that needs to be learned for efficient global operations in foreign markets. The legal environment encompasses laws, rules, regulations and pertinent licensing requirements to do business. The social setup considers religion, values, and traditions of the society as they interrelate to business organizations. Material culture takes into account innovative products, services, and achievements unique to the national culture but must be imbibed by the host organization in their business activities. The political system considers structures and governance which impact global transactions. Finally, the educational system and values takes into account the general academic structure available in the foreign country and the values that the population has ingrained on education, as a whole. All of the factors have to be evaluated and closely examined by the organization planning to expand its operations to various markets with cultural orientations that are diversely contrary to what the organization has been accustomed to. Environmental influences include forces of demand and supply in the market affecting buying behavior. Sometimes, consumers wait for after Christmas promotions and other holiday-induced sales before purchasing items that they need or want. Likewise, purchasers can anticipate that any perceived price increases in certain products due to lack of supply. In this case, they would opt to stock on consumer products to avail of the low prices while supply lasts. Consumer versus Organizational Buying Behavior The difference between consumer versus organizational buying relies mainly on the type of product and the ultimate use for which the product is intended in its present form. Consumer goods are “destined for use by ultimate consumers or households and in such form that they can be used without further processing” (Stanton, 1978, 137). Examples of consumer goods are readily consumable food items, toiletries, detergents, and the like. Convenience goods, shopping goods and specialty goods fall under consumer products whose purchase is based on the buying habits of the customers. In contrast, organizational or industrial goods are “destined to be sold primarily for use in producing other goods or rendering services as contrasted with goods destined to be sold primarily to the ultimate consumer” (Stanton, 1978, 137). As such, buying behavior is influenced by the same factors enumerated above except for the intended use for the product or service purchased. In this regard, marketing strategies must be designed appropriately depending on the target market for the product. Marketing Techniques and Strategies Depending on which phase the business is in, an appropriate strategy is applied. During the period of creative evolution, all energies are concentrated in making and selling a new product (Greiner, 1972, 41- 42). Strong management skills and strong leadership styles are needed during this period to answer to the needs of the customers as they react to the new product being introduced. One must focus on the strengths and competencies in the market niche one is targeting to firmly establish a particular strategy to ensure a successful move for the business firm. The differences in the application of a marketing strategy depend on the consumer buying behavior, among others and the factors that influence them. This means that the ability to conceive of a business in strategic terms must be evaluated in terms of the goals for the firm. Those involved in the strategic process should be concerned with how a strategy can be evaluated so that it may be continued, amended, or abandoned as appropriate. The marketing strategy for new products, for example, should be categorized in three parts: (1) focus on the potential size, structure, behavior of the target markets with the intended positioning of the products, and the sales, market share, and profit goals being projected for the first few years; (2) outlining of the intended product price(s) depending on the materials used, style, and sizes; distribution strategy, and marketing budget for advertising and promotions for the first few years; and (3) projecting the intended long-run sales and profit goals, as well as the marketing mix strategy over time (Kotler, 1980, 324 – 325). Pursuing growth means being able to conquer barriers or constraints to achieving organizational goals. From among the identified barriers to growth, the following factors are the most prominent: (1) financial budget, (2) level of demand of the product or service in the market, (3) managerial and human resource skills, and (4) increasing competition, among others. (Storey 1994, 155) The critical factor for businesses is to identify which constraint prevents it from pursuing its goals to grow and succeed. By being able to address these barriers, business organizations would be able to develop the appropriate growth strategy and ensure its success in its well identified market niche. Conclusion Society is now faced with advancement in technology which pervades and dominates all facets of a person’s life. Various professionals from diverse endeavors have envisioned the fast pace of technological breakthroughs as risky in the sense that new devices are put to work before there is the capacity or the will to control destructive side effects. These are manifested in the features and facilities offered by electronic businesses and automated customer services. As ICMR appropriately indicated, “marketers make use of perception to formulate marketing strategies. The marketers use a perceptual map, wherein they find out the attributes or the characteristics that the consumer associates with the product and they create the product accordingly. Thus, development of a brand or the logo of the product, packaging of the product, etc., have to be made keeping the consumers perception in mind” (2010, par. 5). Knowledge of the consumer buying behavior is not an assurance that the decision maker would choose the most appropriate alternative in all circumstances. It only serves as a guide for decision makers to consider all relevant factors before coming up with the most appropriate choice. The most important lesson one must be aware of is that individuals and groups learn from the experiences that they encounter. Scenarios requiring marketing choices should be taken as opportunities to enhance one’s skills and strengthen one’s abilities to face whatever challenges the future brings. In the end, the focus of marketing is still to satisfy the customers’ needs. Reference List American Marketing Association, 2010. Dictionary. [Online] Available at: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=S. [Accessed 30 July 2010]. Culture, n.d. [Online] Available at: http://www.tamu.edu/classes/cosc/choudhury/culture.html. [Accessed 30 July 2010]. IBS Center for Management Research (ICMR), 2010, Consumer Behavior: Chapter 5. [Online] Available at: http://www.icmrindia.org/courseware/Consumer%20Behavior/CBC05.htm. [Accessed 30 July 2010]. Kotler, P., 1980. Marketing Management: Analysis, Planning and Control. Prentice-Hall, Inc. Monash Marketing Dictionary, 2009. Selective distortion. [Online] Available at: http://marketing.businessdictionaries.org/Public-Service-Advertising-Glossary/H/1/Selective_Distortion. [Accessed 30 July 2010]. Monash Marketing Dictionary, 2009. Selective retention. [Online] Available at: http://dictionary.babylon.com/selective_retention/. [Accessed 29 July 2010]. Reader’s Digest, 1990. ABC’s of the Human Mind. The Reader’s Digest Association, Inc. Stanton, W., 1978. Fundamentals of Marketing. Mc-Graw Hill, Inc. Read More