How Does Consumer Behaviour Determine Marketing Strategies That Companies Implement in the Market - Term Paper Example

Consumer Behaviour for Marketing Introduction Consumer Behaviour is a process through which a consumer goes through before making a decision of purchasing a product or a service for his or her end use. A consumer is someone who purchases products or services for his or her personal consumption from the market. Consumer interest is therefore the ability and willingness of consumers to purchase goods and services in accordance with their need, taste and their financial position (East, Wright & Vabhuela, 2008). Individuals purchase products and services because they need them, for social status or for gift purpose. On the other hand they doesn’t purchase because it’s not a requirement, it’s not within their taste or because they cannot afford (East, Wright & Vabhuela, 2008). Other consumers purchase depending on the time some make purchase during festive seasons, others during birthdays’, during anniversaries and others at marriage or any other special occasion. Therefore there are several factors that influence consumer buying decisions ranging from social, psychological, and economical factors. Consumer Behaviour thus explains why and why not decisions of consumers while buying goods and services, when decisions of consumers while buying the products and finally how these consumers decides to purchase the products. For these reasons Consumer Behaviour determines marketing strategies that a firm employs in its marketing mix for product positioning (East, Wright & Vabhuela, 2008). Marketing Analysis Understanding of 4Cs results to better market analysis. This involves understanding of prevailing conditions, consumer, company and competition (East, Wright & Vabhuela, 2008). The main objective of any company is to provide greater value to its customers. To achieve this learning of consumer Behaviour is key in determining their needs, what they value for the company to concentrate on offering these needs better than its competitors in prevailing physical, economical and technological environmental conditions. Therefore anyone involved in physical role of assessing, obtaining, using or disposing products or services is a consumer (Michman & Mazze, 2006). On the other hand a customer is someone who makes the actual purchase of a product or a service from a specific firm. He is defined by a particular firm or a product. However, consumer not only emphasizes on actual customer but also the users of the product. For instance, specific products are purchased by specific members of the family. Therefore varied consumer Behaviour roles are played by various family members. Marketers are required to keep all consumer Behaviour roles in mind but at the same time focus on the actual buyers who makes the final decision on whether to buy or not (Michman & Mazze, 2006). To uncover consumer feelings and emotions, bring out their hidden attitudes requires use of motivational research. Several companies’ uses questionnaires requesting customer feedback on their satisfaction levels, new product ideas and future needs. Using these feedbacks received, marketing mix is adjusted streamlining the marketing strategies in the market (Michman & Mazze, 2006). The external environment analysis is also done using marketing research and industrial analysts’ feedback. This is facilitated by companies’ financial conditions, sales force and companies’ sales quantity (Michman & Mazze, 2006). Study of these varied factors results to better consumer needs understanding. This factor includes: population, geography, sex, age factor, incentive level, literacy level, linguistic diversity, dress, food, religion, habits and fashion (Michman & Mazze, 2006). During market analysis, competitions strengths and weaknesses, their anticipated actions and reactions to firms’ strategies and plans study must be done (Michman & Mazze, 2006). On getting this information, the firm will now act accordingly by strategies on techniques that will out do the competition using strategic marketing mix techniques. Research is therefore most relied upon in delivering this role (Cherney & Kotler, 2011). Operating conditions of the firm is also another factor determining Consumer Behaviour. This conditional factors includes: economical and physical environment, technological environment, government regulations, among others (Cherney & Kotler, 2011). These factors affect the needs of consumers, for instance, environmental deterioration and pollution may result to innovation and utilization of safer products. Individuals here have safety concerned and are health conscious resulting to maximum sales of safer products by firms producing these products. Recession restricts to larger extent of flow of money resulting to varied marketing strategies’ formulation (Cherney & Kotler, 2011). The entire markets should also be segmented. This process assists the firms in managing consumer behaviours. This involves dividing the market into portions of entire larger market with same needs and into those whose needs are homogeneous. These segments are characterized by same needs (Cherney & Kotler, 2011). Marketing Strategy Consumer Behaviour is influenced by marketing Strategies of the firm. Formulating marketing strategies therefore provides advanced consumer value (Cherney & Kotler, 2011). Directing the 4ps of marketing mix in the target market is a marketing strategies formulation process. Generally decision making process followed by customers involves targeting a particular Target market through product, price, promotion and place decisions. Products are the valuable tangible things offered by firms to consumers for satisfaction of needs (Cherney & Kotler, 2011). Price is the monetary value attached to the product that a consumer needs to pay to get the right of using the products. Distribution commonly referred to as place is the channel that goods and services follow in order to arrive at the final consumer. This is through agents, wholesalers, retailers or direct selling. Outlets of distribution play a very critical role in ensuring that goods and services reach the final consumer (Cherney & Kotler, 2011). They provide various utilities involving place, time, and possession. Notably some products can be marketed through the middlemen or distribution channels while others can be marketed by the firm directly to the final consumers. Promotion is another marketing mix that determines consumer Behaviour; it involves change of attitudes of the final consumer in channels of distribution to enable them favor firms’ products or services. This involves use of advertising, sales promotion, personal selling and publicity (Cherney & Kotler, 2011). Consumer Decision Process Consumer in making his purchase decision, a decision making process is followed. This comprises of a set of steps that the consumer undergoes. Firstly consumers make specific purchase decision as a process of solving a particular problem. These problem solving decisions are aimed at creating conducive atmospheric environment in our homes (Cherney & Kotler, 2011). To do this search for information is undertaken to determine how this conducive atmosphere can be offered. This results to alternative evaluation which is achieved through cost benefits analysis technique that helps consumers decide on which brand image or product is suitable for resolving the problem adequately and suitably. From there a purchase decision is made on the product used by the consumer. The continued use of products or services majorly depends on consumer satisfaction resulting to repeat purchases. On other hand products or services might be rejected by consumers due to dissatisfaction from these particular products (Cherney & Kotler, 2011). A successful marketing strategy is the one that enables consumers to see the need that the firm’s product or services can solve by offering the best resolution to the problem. A successful marketing strategy therefore is the one in which marketers emphasizes on brand image by highly positioning it in the mind of consumers (Sherry, 1995). Products and services thus needs to be position in accordance to what the consumer dislikes or likes. Brand possessing the right brand image will sell the most in the market. If the initial consumer analysis was done in alignment with consumer decision process then sales are most probably to be optimum. Profitability comes if the firm retains its customers therefore repeat purchase is a critical factor resulting from consumer satisfaction (Sherry, 1995). Conclusion In conclusion, it’s significant to note that consumer behaviour determines marketing strategies that companies implement in the market. Therefore understanding of consumer behaviour is key factor that firms should invest on in creating their product, positioning this product in the mind of consumers and in segmenting its markets(Sherry, 1995). Clear understanding of the company, company consumers, company competitors and environmental conditions at any given point time facilitates proper implementation of product, price, place and promotional strategies that the company might be having in order to gain competitive advantage in the market. It is also important to note that even though the firm focuses on the interest of consumers, who actually determines buyer decision should be put in my mind always by company researchers. Finally it’s critical to highlight the fact that marketing is majorly influence by consumer behaviour as they determine company sales that generates company revenue (Sherry, 1995). References: Sherry, F. (1995).Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook. New York, NY: Sage Publications. East, R., Wright, M. & Vabhuela, M. (2008).Consumer Behaviour Applications in Marketing. New York, NY: Sage Publications. Peter, J. & Olson, C. (2004).Consumer Behavior and Marketing Strategy. New York, NY: Mcgraw-Hill (Tx); Cherney, A, & Kotler, P. (2011).Strategic Marketing Management. Cambridge: Cerebellum Press; 6 edition Muller, B. & Johnson, C. (2009).The Psychology of Consumer Behavior. New York, NY: Springer Michman, D. & Mazze M. (2006).The Affluent Consumer: Marketing and Selling the Luxury Lifestyle.Chicago, CA: Praeger. Read More