• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Analyzing consumer markets
 

Analyzing consumer markets

on

  • 990 views

 

Statistics

Views

Total Views
990
Views on SlideShare
990
Embed Views
0

Actions

Likes
0
Downloads
29
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    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