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Analyzing consumer markets

Analyzing consumer markets






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    Analyzing consumer markets Analyzing consumer markets Presentation Transcript

    • Analyzing Consumer Markets
    • Definition of Consumer Behavior
      • The study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
    • Overall Model Of Consumer Behavior
    • Cultural Factors
      • Fundamental Detriment of consumer’s wants & behavior
      • Set of values, perceptions, preferences, & behaviors acquired thru Family & key Institutions
      • Subcultures: Specific Identification & socialization for their members
      • Include Nationalities, Religions, Racial Groups & Geographic Regions
      • Large Subcultures indicate special marketing programs - Diversity Marketing
    • Cultural Factors
      • Why they do certain things: “Coz it’s the right thing to do”
      • Each individual perceives the world through his own cultural lens
        • Wedding associated with Champagne but Wedding associated with purity & holiness
        • South India: Coconut oil- Major source of cooking
        • Juices as health or occasional drink – Penetration required
    • Cultural Factors
      • Different Ethnic & Demographic niches don’t respond favorably to Mass Marketing
        • McDonald’s: No Beef Products used
        • Pepsi: All Hinglish Campaigns
        • McDonald’s: Aloo Tikki Burger
        • Fair & Lovely: Marriage to Aspirations
        • Pongal & Baisakhi Festivals celebrations
        • Horlicks : North India & South India
    • Social Class
      • Homogeneous & Enduring divisions in a society, which are hierarchically ordered
      • Members share similar values, interests & behavior
      • Reflection of Relative Wealth, Power, Prestige
      • Reflection of Income, occupation, Education & area of residence
      • Differ in dress, Speech Patterns, Recreational Preferences & other characteristics
    • Social Class
      • Each Class tend to behave more alike than persons from two different social class
      • Persons are perceived as occupying inferior or superior positions according to social class
      • Social class indicated cluster of variables I.e occupation, income, wealth, education & value orientation than by single variable
      • Individuals can move up or down the social class ladder during their lifetimes
    • Social Class- Importance
      • Show distinct product & brand preferences in many areas including clothing, home furnishings, leisure activities & automobiles
      • Consumers purchase certain products because these products are favored by members of their own or higher social class or avoid due to vice – a –versa
      • Social classes differ in media preferences, with upper class consumers preferring magazines & books and lower class preferring Television
      • Language differences among the Social Classes
    • Social Factors
      • Reference Groups :
      • Groups that have direct or Indirect influence on person’s attitude or behavior
      • Any person or group that serves as a point of comparison for an individual in forming either general or specific values, attitudes or behavior
      • Primary Groups: Family, friends, neighbors, co-workers – Direct Influencer
      • Secondary Groups: Religious, Professional
    • Reference Groups
      • Reference Groups expose an individual to new behaviors & lifestyles
      • Influence attitudes & self concept
      • Pressures for conformity that may affect actual product & brand choices
      • Aspirational Groups are those a person hopes to join
      • Dissociative groups are those whose values and behaviors an individual rejects
    • Reference Groups
      • Friendship Groups: Mera No 1
      • Work Groups: Van Heusen shirts
      • Brand Communities: Apple, Harley Davidson
      • Celebrities:
        • Adidas: Sachin Tendulkar
        • Lux: Madhuri Dixit
        • Ray Ban: Tom Cruise: Top Gun
    • Family
      • Most Influential primary reference group
      • Family of orientation: Parents & Siblings
        • Influence on Religion, Politics, Economics
        • Sense of Right & Wrong
        • Personal Ambition, Self Worth & Love
      • Family of Procreation:
        • Spouse & children
        • Product category buying variations according to influence
    • Role & Status
      • Role & Status define person’s position in its groups
      • A role consists of the activities a person is expected to perform
      • Each Role carries a status
      • People chose products that communicate their role & status in the society
      • Status symbol Potential of Products & Brands becomes very important
    • Roles & Status
      • Anil Ambani:
        • Mercedes SL 500
        • Chartered Planes
        • Seven Star Hotels
        • Armani Suits
        • Mont Blanc Pen
        • Golf
    • Analyzing Consumer Markets
      • 1. Personal Factors
      • Age & Stage in Life Cycle:
        • Need for different product categories changes with Life Stages
        • Tastes in Clothes, recreation, Automobiles are purely age related
        • Family Life Cycle influences consumption in a big way
        • Financial positions & Typical product interests of each group are different
    • Personal Factors
      • Occupation & Economic Circumstances:
        • Need & Consumption patterns for each occupation are going to be different
        • Companies tailor different products for each occupational group
        • Product Choice is affected by economic circumstances
        • Disposable Income patterns, Savings & assets, Debts, borrowing powers & attitudes to spending
        • Income sensitive goods are greatly affected by Personal Income, Savings & Interest Rates
    • Personal Factors
      • Lifestyle:
        • Person’s pattern of living in the world as expressed in activities, interests & opinions
        • Portrayal of the person’s interaction with the environment
        • Psychographics is science of measuring & categorizing consumer lifestyles
        • Different profiling of people
    • Personal Factors
      • Personality & Self Concept:
        • Personality refers to distinguishing psychological traits that lead to relatively consistent & enduring responses to environment
      • Three Distinct Properties:
        • Reflects Individual Differences : Categorization & Segmentation
        • Consistent & Enduring: Appeal to relevant Traits
        • Personality can change: Develop Products & Ideas
    • Personality
      • Brands Personality is the specific mix of human traits that may be attributed to a particular brand
      • Consumers are likely to choose brands whose personalities match their own
    • Brand Personalities
      • NIKE: Athlete: Michael Jordan
      • ADIDAS: Sports: Sachin Tendulkar
      • TAG : Style & Trendy: SRK, Tiger woods
      • Omega: Sophisticated & Class:Pierce Brosnan
      • Levi: Dependable & Rugged
      • BMW: Performance
      • McDonald's : Fun& Entertainment: Ronaldo
    • Psychological Factors
      • Motivation:
      • Needs are the essence of the Marketing Concept
      • Key to growth is ability to satisfy un filled consumer needs
      • Marketers don’t create needs, they make consumers more keenly aware of their unfelt needs
      • Markets are defined in terms of needs rather than Products
      • Motivation is a driving force that impels them to action
        • Driving Force is produced by a state of tension that exists as a result of unfulfilled needs
    • Motivation
      • Marketers must view Motivation as the force that induces consumption, & through consumption experiences, the process of consumer learning
      • Two Fundamental Concepts:
        • Need: A state of deprivation
        • Goals: Goals are sought after results of motivated behavior:
          • MBA from IIMs
          • Thirst quenching thru Tropicana Juice
          • Traveling by Chevrolet Optra
          • NIKE for jogging
      • Positive & Negative Motivation
      • Emotional & Rational Motive
    • Psychological Factors
      • Motivation:
        • A motive is a need that is sufficiently pressing to drive the person to act
      • Maslow’s Theory:
        • Human needs are arranged in form of hierarchy from the most pressing to the least pressing
        • People will try to satisfy their most important needs first & next most important & so on
        • Goal is to let the marketers understand how various products fit into the plans, goals & lives of consumers
    • Maslow’s Hierarchy Law Esteem Needs (Self Esteem, Status Social Needs (Sense of Belonging, Love) Safety Needs (Security, Protection) Physiological Needs (Food, Water, Shelter) Self Act Needs
    • Herzberg Theory
      • Two factor Theory:
      • Dissatisfiers & Satisfiers
      • An active Satisfier & absence of dissatisfier
      • Sellers should do their best to avoid dissatisfiers – Un sell the product
      • Supply the major satisfiers or motivators of purchase in the market
    • Perception
      • Process by which an individual selects, organizes & interprets information inputs to create a meaningful picture of the world
      • Perception vary widely among individuals exposed to same reality
      • Three Perceptual processes:
      • Selective Attention:
        • Challenge to present stimuli which people notice
        • Current Need, Anticipate, Large Deviations
      • Selective Distortion:
        • Tendency to twist info into personal meanings that fits our preconceptions
      • Selective Retention:
        • Selective Points retention
        • Drama & Repetition
    • Learning
      • Change in individual behavior arising from experience
      • Interplay of drives, cues, stimuli, responses & reinforcement
      • Learning theory indicates Marketers how they can build up demand for their product by building strong drives, using motivating cues, & providing positive reinforcement
    • Beliefs & Attitudes
      • A belief is a descriptive thought that a person holds about something
      • People’s beliefs about product & brand influence their purchase decisions
      • Marketers need to work upon beliefs consumers carry about their brand
      • A Brand triggers offs various nodes:
      • Reliance: Big, Reliable, Affordable Products, Efficient , Consumer Friendly
    • Attitudes
      • An attitude is person’s enduring favorable of unfavorable evaluations, emotional feelings, & action tendencies towards some objects or ideas
      • A frame of mind for liking or disliking, fairly consistent in nature
      • To fit the product into existing attitudes of persons