Successful Implementation of Marketing Strategies - Case Study Example

Table of Contents Introduction 03 Definition of Consumer Behaviour 04 Model of Consumer Behaviour 04 Factors Influencing Consumer Behaviour 05 Consumer Behaviour and Development of Marketing Strategies 07 Consumer Behaviour and the marketing Mix 08 Conclusion 09 References 10 Introduction Understanding the consumer behaviour is very important as the product and services which a company develops is for the consumers ultimately. So consumer behaviour is as important as studying other factors of marketing. This report highlights the importance of consumer behaviour in the successful implementation and implementation of marketing strategy. Why different marketers have seriously emphasised on evaluation of this factor to a huge extent. Initially the report discuses the meaning of consumer behaviour and the model of consumer behaviour which highlights its importance as a strategy making from a marketing perspective. Then we come across the factors of consumer behaviour as an important element in strategy formulation and implementation. Then the report makes an in-depth analysis of consumer behaviour and marketing strategies and also how the elements of marketing mix too consider it in evaluation of the policies. Thus the study in total highlights the importance of consumer behaviour and the successful development and implementation of marketing strategy citing examples from the real world business environment. Definition of Consumer Behaviour Consumer behaviour is defined as the understanding of how the consumers obtain, dispose and consumer products and services. It is a study of the factors of the buying behaviour of the customers and developing the strategies accordingly (Demirdijian and Senguder, 2004). The three primary activities of consumer behaviour are: Obtaining: It refers to those activities that lead to the purchasing of any product. The activities could be searching for product information, evaluation of alternatives and even choice of purchasing. Consuming: It is very necessary for a product, that is bought, as the conditions of when, where and what circumstances the product shall be consumed. The product that a consumer purchases highly depends on its consumption values. Disposing: It is how the consumer gets rid of the product and its packaging. The ecological standpoint of the consumer’s behaviour is an important point of consideration. Some packing is also taken for future use by many customers. Understanding of the consumer behaviour is very important for the smooth running of a product and the success for its developing a good brand image depends hugely on the correct evaluation of the consumer behaviour. Model of Consumer Behaviour The model of consumer behaviour or the decision making consists three main elements namely, marketing and other stimuli, the buyer’s black box and the buyer’s response (PETER, 2008). The three elements are studied as under: Marketing and other stimuli: The consumers are guided by two different stimuli, the first being the marketing mix elements and the second being the environmental factors like economic, technological, political and cultural. The Buyer’s Black Box: The stimulus which is presented by the marketers and the environment is dealt by the buyer’s black box. It has two major characteristics the buyers characteristics and the final decision making process. The buyer’s characteristics are influenced by factors like social, cultural, personal and psychological. These factors have a direct impact upon the purchase decision making with consideration to the need, information and availability of choice. These factors have influenced the decision for not just the present purchasing decision but also the future decision making. The Buyer’s Response: The buyer’s response is a reflection of the decision making falls within the process of buyer’s black box. The decision is based upon the marketing perspectives and factors such as product, brand, timing, amount, etc. It has become very clear with understanding the model that the strategy making process is required to consider the consumer behaviour as each activity of the buyer influences the buyer’s purchasing of different products and services in comparison to the similar products of the rivals. Factors Influencing Consumer Behaviour The buying pattern and the behaviour of a consumer can be understood by the characteristics like cultural, social and personal factors and the basic psychological factors. The factors are: Cultural factors: This is considered the biggest factor in influencing the customer behaviour. Culture sways an individual’s existence, thought and behaviour by influencing their habits. The cultures are made up of subcultures and large subcultures have scope for developing potential markets. If a company wants to approach any new market, the cultural characteristics are to be perceived to develop suitable marketing strategy (JACOBY, 2002). Some big fast food brands and food chains have also developed the system of cross-culture like the case of McDonald’s which has introduced Maharaja Macs at McDonald’s India, Teriyaki McBurgers at McDonald’s Japan and Kosher and Non-Kosher restaurants in McDonald’s Israel. With this McDonald’s has successfully integrated to variety of countries and earned a lot of profits. Social Factors: Factors like the reference group, families and social roles influence the consumer behaviour socially. Reference groups influences the consumers behaviour both directly and indirectly (SCHULTZ, 2006). The marketers need to constantly scan these social elements to develop marketing strategies for products and services, for example, Barista has its maximum coffee outlets in locations of corporate offices as friends, business people and corporate employees are their main target customers. Personal Factors: The personal characteristics of individuals are very much important in deciding the consumer behaviour. Factors like the buyer’s age, occupation, life style, needs and changes to the existing products and services are to be considered by the policy developers to build the marketing strategies. For example companies like McDonalds and KFC have introduced veg inclusions in their menus in India as a huge number of consumers in this country prefer them over the non-veg food. Psychological Factors: Psychological factors like the personality and the buying pattern of the consumer is always assessed by the strategy makers. A buyer’s choice is influenced by five psychological factors namely, motivation, perception, personality, ability and knowledge (Anton, Camarero and Carrero, 2007). Thus any company that creates it strategies for marketing have to consider these factors to decide upon the exact requirements of the market and develop products and services accordingly. Consumer Behaviour and Development of Marketing Strategies As we have already studied the factors that affects the consumer behaviour towards buying and selection of products. It is also necessary to understand how the strategies are developed considering those factors. The sales and profitability of the company are directly affected by the consumer behaviour. A failure in the consideration of the factors shall make it more challenging task for the marketers as a selection of the right target market shall help in the development of correct marketing strategy. The sales strategies are based on how a group of target customers react in different technique situations (Fine, 2010). Knowing the habits of the consumer helps to improve the quality of the existing products as it helps in understanding the type of products that are required in the market. Without customer satisfaction the motive of increased sales cannot be achieved and so why and how of the consumption behaviour is to be studied. The behaviour intents the purchasing decision which indirectly is a voting for the candidates they want to stay in this hypercompetitive market (BAGOZZI, 2002). It is to be noted further that consumer behaviour is not just required for developing strategies of existing products but also the introduction of new products. For example if a marketer is planning to introduce a non-halal restaurant, it has to formulate strategies as per the consumer behaviour. The nationality, religion and values are to be considered as a part of the approach towards strategy making. So the development of financial strategies is requires consideration of consumer behaviour as the strategy shall be more in the positive direction resulting in growth and profitability. Failing in such issues shall lead to complete disaster consequences which shall result in failure of marketing policies and ultimately the business as a whole. Consumer Behaviour and the Marketing Mix The seven P’s of marketing mix are also influenced by the consumer behaviour as they form an integral part of the marketing strategy by any organisation or marketer. i. Product: The benefit from a product is the result of the decision making of the customer. Deciding upon which product is essential or which is of no use is the first in the direction in the decision making process. ii. Price: The cost of product may be beyond the price tags is many cases. But the pricing of a product is very crucial as price plays a significant role in the consumer deciding upon buying the product. iii. Place: Convenient location helps in making purchase easier and faster. The marketers should make decisions upon product availability at all convenient location through proper distribution system. iv. Promotion: Promotion is not done to the customers but it surely has an impact on the purchase decision making. With the use of tools like TV commercials, advertisements, billboards and other such measures the promotion policy tends to leave an impression on the minds of the customer hence effecting sales. v. People: Business is not just about money but is surely about people. I some cases the product is the person as loyalty towards a particular hairdresser or the same restaurant chef. vi. Process: The way of delivering the services also affects the circumstances which lead to buy. A meal at McDonalds is required to be followed by a simple process to ensure that the consumer does not face much problem and also helps in rendering faster services. vii. Physical Evidence: The physical aspect of a service relates to the pleasure one receives from that service. For example the ambience, food, décor, table linen and cutlery all are a part service of providing pleasure. Thus it is very essential to understand the consumer’s behaviour and liking in determining the strategy based upon the 7 P’s of marketing mix. Big chain restaurant giants like McDonalds and KFC have attained a perfect blend of the marketing mix and consumer behaviour in making their strategies to capture markets and have opened a large number of successful stores all round the world (Thrassou and Vrontis, 2009). Conclusion For a successful international marketing and proper evaluation and implementation of marketing principles the evaluation of the consumer behaviour is very necessary. As discussed in the project the factors of cultural, social, personal and psychological has great importance in a customer’s choice of products and services. For international marketing success understanding of cultures has always proved fruitful. The report has highlighted through the study of models and factors and other such elements and inclusion of examples of big market players has presented a better understanding of the topic. References Anton, C., Camarero, C., Carrero, M. 2007. ‘The Mediating Effect of Satisfaction on Consumers’ Switching Intention.’ Psychology and Marketing, Vol. 24, No. 6, pp. 511-538. BAGOZZI, R., et al., 2002. The Social Psychology of Consumer Behaviour. Buckingham: Open University Press. Demirdijian, Z.S., Senguder, T. 2004. ‘Perspectives in Consumer Behavior: Paradigm Shifts in Prospect.’ The Journal of the American Academy of Business, pp. 348-353. Fine, L.M. 2010. ‘Altruism and Hedonism: A Review and Discussion of Recent Findings in the Marketing and Consumer Behavior Literature.’ Business Horizons, Vol. 53, pp. 241-246. JACOBY, J., 2002. Stimulus-Organism-Response Reconsidered: An Evolutionary Step in Modeling (Consumer) Behavior. Journal of Consumer Psychology, 12, (1) 51-57. PETER, P. J., et al., 2008. Consumer Behavior and Marketing Strategy. Singapore: McGraw Hill. SCHULTZ, J., 2006. Vehicle of the self: The social and cutural work of the H2 Hummer. Journal of Consumer Culture, 6, (3) 57-86. Thrassou, A., Vrontis, D. 2009. ‘A New Consumer Relationship Model: The Marketing Communications Application.’ Journal of Promotion Management, Vol. 15, No. 4, pp. 499-521. Read More