The Internal Factors - Report Example

Table of Contents Introduction 2 Consumer Decision Making Process 2 Segmentation, Targeting & Positioning 4 Internal Factors Affecting Consumer Demand 7 Diffusion of Innovation & Social Change 12 Conclusion 13 References 14 Introduction The paper looks towards evaluating the manner in which internal factors have an impact on consumer decision making process with regard to Toyota Camry. The paper looks to evaluate the internal factors based on different dimensions which look at determining the manner in which consumer decision making process is carried out for Toyota Camry. This is followed by analyzing the internal factors which has relevance on consumer decision making while choosing Toyota Camry. The paper also looks to evaluate the same by looking into targeting, segmentation and positioning of the product with regard to consumer decision making. Lastly the paper presents the manner in which innovation and social changes has been brought about due to the different strategies and the manner in which the overall performance is being shaped up due to it. Consumer Decision Making Process A consumer decision making process passes different steps after which the purchase decision is taken. The different steps which consumers follows help marketers to develop marketing strategies so that proper targeting becomes possible. It is observed that consumers generally undergo every step under the consumer decision making process but at times might skip one or the other steps. The consumer decision making process which is involved while a consumer chooses Toyota Camry is Need Recognition: This looks at creating the required need among the customer so that they look for a car. The need here which needs to be aroused is of a car which will help people to travel, provide comfort, have a social status and will meet the different needs of the consumer. Marketers need to identify and develop those needs so that people start to look for a product like car. Information Search: When the need for the product is developed the consumer will start searching for information pertaining to car and will go to the extent of looking for all the information and gathering as much as possible. The person will use different sources like friends, family, co-workers, advertisements, displays, newspaper, radio and other person who has the required knowledge in the required field. This step will also look towards looking at Toyota Camry along with other players in the same segment and will make people understand different things about the car. Evaluation of Alternatives: The consumer then looks to evaluate the different alternatives which have been searched. The evaluation for a car will be done of different factors like design, sleekness, mileage, price, comfort, after sales service, resale value of cars and others. This is the point where marketers can play an active role and guide the behaviour of employees towards purchasing Toyota Camry by helping them in the evaluation of alternatives. This is the main step where the customer looks to make up his mind regarding the product which will be purchased. Purchase the product or service: This is the step where the purchase decision is taken by the consumer and the consumer looks at purchasing the car which has been selected from the different alternatives. The product is actually sold here to the customer and the necessary transactions involved with passing of the product to the customer takes place. Post Purchase Evaluation: This step aims towards understanding whether the steps which were undertaken by the customer provided the expected returns. At this step the customer compares the actual product with the expected result and based on it look to take future decisions regarding the product. If the customer is satisfied with the product then the customer will look for the same product again and again else will switch to other products. This is an important determinant as it helps to find long term prospective customers and at the same time provides an opportunity through which the future needs of the business is estimated based on the satisfaction level which the employees get. The consumer decision making process while looking to choose a car thereby undergoes different steps where each step guides the consumer in choosing the correct product based on the need and requirement of the customer. This is important for marketers as based on it the target market, positioning and segmentation is carried out which thereby helps to improve the future performance. Segmentation, Targeting & Positioning It has been suggested by Reynolds and Lancaste (2014) that segmentation is a process where the market is broken into smaller group so that the different areas through which business performance can be improved is looked at. This study has been backed by another study by Sandhusen, (2014); Lamb et al, (2013) which highlights that proper segmentation can help to improve the effectiveness of business and ensure that the different risk of the business is reduced. Segmentation of a market is thereby based on the following grounds for Toyota Camry and is as (Botha, 2013). Geographic Toyota Camry has its presence all around the globe and looks to cover all market over the globe. Toyota Camry has further aimed towards penetrating deep in all geographical locations so that overall framework can be achieved. Working on the global arena and looking towards dealing with the different necessities has helped to ensure that the overall opportunities have multiplied. Demographic Toyota Camry based on demographics looks to attract people who love comfort and are fond of cars. In addition to it Toyota Camry looks at attracting office goers, business class, housewives, young adults and all people who are looking towards a special car which has different features and will add towards the comfort of individuals. Further, the car has been priced slightly high which will thereby look to attract the elite customer based on demographics and will be aimed towards providing different features and facilities so that the different needs and easily met. Psychographic Toyota Camry has been launched in different variants and colour which will thereby help to deal with different section of the society in a better manner. This will thereby help to ensure that Toyota Camry looks at attracting the different dimensions through which people look towards attracting different people. The pricing of the car is further aimed towards looking at different section by having additional features being added at the higher price. This will help to meet the different needs and will provide a ready market through which business opportunities will maximize. Behaviouralistic The behaviouristic trait highlights that Toyota Camry looks to attract the elite cars who look to have cars different from other people in the society. This will thereby help to serve the different needs and will provide the customer with a feeling of being proud and will look to differentiate the product from others in the market based on quality offering. Positioning It has been stated by Petzer et al. (2014) that positioning is a mechanism where marketers look to keep their product in the eyes of the consumer and based on it look to identify the different marketing strategies which needs to be undertaken. The positioning statement which Toyota Camry looks to present is that the product is aimed towards an elite group of customer and looks to attract the rich and affluent section of the society. This can be said on the premise that the product has been priced high and looks at providing extra features and comfort at a slightly high price. Further, the positioning strategy identified by Toyota Camry is very near to those of competitors and has thereby looked towards positioning their product in the same band width. The positioning has been determined based on price, comfort, features, mileage, after sales services and other determinants which people look to observe while making the consumer decision making process. The positioning has thereby looked at different dimensions and has aimed towards determining the manner in which the overall long term prospect and relevance of the business will be determined (Jakki, 2014). The positioning statement which Toyota Camry has adopted also brings forward the manner in which communication will take place and helps to identify the mechanism which has been used to provide different advice to the customers (Kotler and Armstrong, 2010). A proper strategy has thereby enabled them to work on the different dimensions and determine the manner in which different directives will be undertaken for attracting and retaining customers. The overall positioning, targeting and segmentation strategy has been wisely developed keeping in mind the manner in which consumer decision making process is carried out and the manner in which different internal factors have a role in determining the goods that will be purchased. Internal Factors Affecting Consumer Demand Internal factors have a role in guiding individuals while looking to select a product or services and determine the manner in which the behaviour of individuals will be moulded. Organizations look towards understanding the different internal factors and the manner they have an impact on consumer decision making so that future decisions can be taken accordingly. Correct identification of the different factors will look towards bringing about the change in the manner different consumer decisions are taken. Some of the internal factors which have an impact on consumer decision making process are as Motivation: The demand for Toyota Camry is dependent and determined by the different needs which the car will look to provide. Since, the product is aimed towards attracting the elite group of customers it will help to ensure that the different needs of the individuals will be met. Looking at the same from the perspective of Maslow Hierarchy of Needs states that Toyota Camry looks to meet the self esteem needs as the product is priced high which only elite customers can get. This helps the people to ensure that their need for self esteem is met (Kotler, 2003). This will thereby ensure that the different needs of customers are met and help to ensure that there is differential between people having Toyota Camry and other cars. Looking at the same from McCelland trio theory of need highlights that people purchasing and using Toyota Camry will be able to meet their need for affiliation, power and achievement as it will look towards ensuring that the different needs will be better met. This will help people to ensure that they are able to ensure a social status so that the different needs will be easily met. Motivation is thereby an important dimension which has an impact on consumer purchase behaviour and determines the manner in which consumer will look towards purchasing the product. Personality: This is another important internal factor which has a role in shaping the manner in which consumer decision regarding the product or services is made. The big 5 personality trait theory shows that Toyota Camry helps to meet the social need as it provides an opportunity for people to gain a social symbol. People looking to purchase Toyota Camry further aim towards ensuring that the different social needs are met as it is a different car where people can thereby act as a difference between one person to another. Personality is further demonstrated by people carrying Toyota Camry cars as the car is differentiated and helps people to ensure that they are able to differentiate their product from others. This thereby ensures that people are able to use it as a social status and will be thereby be able to determine the manner in which different dimensions will be aimed at. Toyota Camry looks towards ensuring that the product is able to meet the personality need and thereby looks towards ensuring that the different dimensions are being better achieved. This is another important dimension which has an impact on the manner in which different decisions are taken and determines the manner in which people will look at ensuring that the consumer decision making process is better determined. Self-Concept: The believe that people feel that the product or service will fulfil will determine the manner in which people will look towards purchasing the product or service. Toyota Camry will look to work on the self concept of fulfilling the need of travel as car will ensure that people will be able to travel from one place to another. In addition to it the product will help to meet the self concept of being a differentiator as people using Toyota Camry will be able to ensure that they have a different social status within the society. This process will thereby look to identify the different mechanism through which different self concept of people will be met. This will help to ensure that people will be able to work on the different dimensions and will highlight the manner in which better results will be achieved. The process thereby looks towards ensuring that the process of self-concept helps to find out the different areas through which better decision making is ensured. Marketers through the understanding of self concept will be able to find out the different dimensions through which marketing strategies will be developed so that the overall mechanism will help to take better decisions. Perception: The perception that people have regarding Toyota Camry has an impact on decision making and determines the manner different decisions are taken. People perceive Toyota Camry as a product which is aimed towards the elite and is something which the rich and affluent class looks to purchase. People perceive Toyota Camry as a product which is superior to other cars in the same segment within the industry. People look to take decision based on different perception like quality, price, comfort, mileage and other determinants which helps them to perceive Toyota Camry as a product is high compared to others (Bechara and Damasio, 2005). The difference in perception has helped to ensure that people are even willing to pay higher as the people perceive that the product helps to meet the different needs in a better way. Since, Toyota Camry is perceived as one where people feel that the value which they get is more than they pay for which has thereby helped to ensure that the entire dimensions will be looked at. Marketers through the process will be able to ensure that better marketing decisions are taken and will be able to bring about the required change in the manner different business decisions are taken. Consumer Imagery: It is one of the internal factors which have an impact on consumer decision making as it determines the manner in which different dimensions are being looked at. Imagery is one where people look to position Toyota Camry and other products in their mind and the different areas based on which people look to differentiate the product from one another. These factors have an influence on purchasing habits and looks to impact people purchasing behaviour through competitor-based positioning, umbrella positioning and value-based positioning. Having clear cut imagery will help to ensure that the people are able to determine the manner in which positioning will be identified. People look towards garnering imagery for Toyota Camry through quality, price, comfort, mileage and other determinants which helps them to perceive Toyota Camry as a product is high compared to others. The imagery which people are able to achieve thereby helps to ensure that they look to determine the manner in which their purchasing habits will be determined. The process of having correct imagery ensures that business is able to determine the different dimensions based on which people look to develop an imagery for their product or services. This helps to develop appropriate strategies by determining the manner in which imagery for the product will be determined. The mechanism thereby looks towards garnering the mechanism through which consumer buying behaviour is understood and the different areas which will help to ensure that overall demand for products is understood. Learning: The purchasing habit of consumers is largely determined and understood through the learning process which people look to undergo. Past learning has a role here as people get influenced due to their past behavior and learning which guides them regarding the different steps to be undertaken. In addition to it new learning and information which a consumer gets through different sources like friends, relatives, friends and other sources have an impact on the manner in which different decisions are taken (Amemiya, 2011). People looking to purchase and use Toyota Camry are influenced by their past learning from the car. People using the car especially Toyota Camry or other car will be influenced by the different learning which they are able to garner through the purchase of the car. Positive impact will be witnessed in case a person who has used Toyota Camry if the person has positive learning from it. This will make people to purchase the same product again and again and will thereby help to guide the manner in which better decisions will be taken. Negative learning will make people to shift from the purchase of Toyota Camry to other cars in case they are not satisfied and people have negative learning. This thereby is an important determinant which shapes the manner in which consumer purchasing decision is undertaken and determines the manner in which people look to purchase the product. Marketers thereby will look towards ensuring that positive learning is developed which will thereby help to influence people towards purchasing the same product again and again. This thereby has a role in shaping the manner in which people look towards purchasing the product and determines the manner in which different dimensions are being looked at. Attitude: The attitude which people have towards a product determines the manner in which purchasing decisions gets influenced. The attitude of people towards Toyota Camry is determined by the manner in which people will be able to purchase different products and services. Since, people have a positive attitude towards Toyota Camry they will look towards purchasing the same product again and again. Attitude is one where people look to position Toyota Camry and other products in their mind and the different areas based on which people look to differentiate the product from one another. These factors have an influence on purchasing habits determines the manner in which the different dimensions are being looked at. Having clear cut attitude will help to ensure that the people are able to determine the manner in which positioning will be identified. People look towards garnering attitude for Toyota Camry through quality, price, comfort, mileage and other determinants which help them to perceive Toyota Camry as a product is high compared to others. The attitude which people are able to achieve thereby helps to ensure that they look to determine the manner in which their purchasing habits will be determined. The process of having correct attitude that ensures that business is able to determine the different dimensions based on which people look to develop a positive attitude for their product or services. This helps to develop appropriate strategies by determining the manner in which demand for the product will be determined. The mechanism thereby looks towards garnering the mechanism through which consumer buying behaviour is understood and the different areas which will help to ensure that overall demand for products is understood. Diffusion of Innovation & Social Change Toyota Camry has looked towards determining the manner in which innovation and social change has been garnered in the manner in which different factors have been looked at and determines the manner in which marketing and other activities are developed. This will look towards having a process through which business will be able to work on the different areas through which business performance will be improved. Toyota Camry has looked towards innovation and social change as their products has been developed keeping different things in mind. This has resulted in a widespread changes as it has helped to ensure that the product is developed for the elite group of customers. The innovation and change can further be seen from the fact that quality, price, comfort, mileage and other determinants which help them to perceive Toyota Camry as a product is high compared to others. This has thereby ensured that people are able to work on the different areas through which differentiation has been ensured. This has helped Toyota Camry to ensure that their targeting, positioning and segmentation is better and has been garnered based on different dimensions. A proper strategy has thereby enabled them to work on the different dimensions and determine the manner in which different directives will be undertaken for attracting and retaining customers. The overall positioning, targeting and segmentation strategy has been wisely developed keeping in mind the manner in which consumer decision making process is carried out and the manner in which different internal factors have a role in determining the goods that will be purchased. This reflects the manner in which Toyota Camry has looked to bring about the required changes and has aimed towards improving the overall dimensions through which changes has been ensured. It is also identified that the process which Toyota Camry has looked to use is one where they focus towards having continuous changes and improvements so that the different aspect can be better looked at. . This thereby ensures that people are able to use it as a social status and will be thereby be able to determine the manner in which different dimensions will be aimed at. Toyota Camry looks towards ensuring that the product is able to meet the personality need and thereby looks towards ensuring that the different dimensions are being better achieved. Identification of the important core areas and looking towards working on those has helped them to come with different change and has ensured innovation in the manner different activities are carried out. Conclusion The paper evaluates the manner in which internal factors have an impact on consumer decision making process with regard to Toyota Camry. The paper looks to evaluate the internal factors based on different dimensions which look at determining the manner in which consumer decision making process is carried out for Toyota Camry. This is followed by analyzing the internal factors which has relevance on consumer decision making while choosing Toyota Camry. The paper also looks to evaluate the same by looking into targeting, segmentation and positioning of the product with regard to consumer decision making. Lastly the paper presents the manner in which innovation and social changes has been brought about due to the different strategies and the manner in which the overall performance is being shaped up due to it. References Amemiya, T. (2011), Qualitative Response Models: A Survey, Journal of Economic Literature, 19: 1483-1536 Assael, H, C. 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