It is only a few decades back that consumer behavior emerged as a highly specialized area under marketing. “Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.” (Management Study Guide, 2012) There wasn’t the concept of consumer behavior when Ford started making their cars on assembly line. The only color that the customers could get then on the car was black. But as and when industrialization happened and more and more products came into the market, companies started focusing on the desire and need of the customers. This became more important with the beginning of globalization and when companies started cross border business. The concepts that the marketers were focusing on was market segmentation, targeting and positioning. But in the recent years, the marketing practitioners are puzzled about these concepts. They are doubtful whether these traditional concepts are valid for current marketing environment. The objective of this essay is to analyse the situation in the light of these concepts in the current environment and advise the marketers for the best way to approach customers. Traditional Marketing Practices Segmentation, targeting and positioning are three core concepts of traditional marketing practices. Marketers have been focusing on these concepts to the core of understanding the consumer behaviour and introducing products that the customers want. Segmentation: Market segmentation is the process of identifying and targeting the right customers. “It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs.” (Riley, 2010) Marketers segment the market because the needs and wants differ from one customer to the other. But there definitely can be a group with common characteristics which is in other words called a segment. The most common kinds of segmentation are geographic, demographic, behavioural and psychographic. Geographic segmentation groups customers based on customer location and region. Demographic segmentation does it based on age, gender, occupation, and other demographic factors. Behavioural segmentation divides customers based on the customer behaviours and psychographic segmentation does it based on the personality and lifestyle of the customers. Debates have emerged recently regarding the relevance of market segmentation in the modern marketing environment. The behavioral aspects of customers are changing in such a way that they are not limited by the demographic, lifestyle, or other segmentation factors. An example for this is the initial failure of the world’s cheapest car Tata Nano. Tata segmented the market and targeted the Nano car to the common man. Least importance was given to value of the product. But when the car was actually launched in the market, it made terrible low sales. When the company made a post launch market study, it was understood that the customers does not want a car that is of least value and the one that is tagged as a cheapest car. The company now revamped the car and entirely changed its marketing strategy and experienced success. (Cleveland, 2011) Targeting: Targeting is the activity that follows segmentation. Targeting is the process of aiming the market that has been identified through the segmentation process. “Target Marketing refers to a concept in marketing which
Consumer Behaviour and Decision Making Introduction Marketing is a concept that has emerged and evolved over years. There will be no other discipline in this universe that is as influenced and affected by the changes in the environment as marketing is. Sometimes, it takes years to observe a change in the marketing pattern…
In Egypt, Vodafone was operating their business on software from Business Objects. The manager’s task was to observe business performance and make decisions about business. The manager ensures better utilization of data, for example, billing information, customer information, sales information and inventory information.
This is considered critical because it is through this assessment that a medical professional can ascertain the historical details of a patient, crucial for determining subsequent way of treatment and progress of the a patient. Arnold (2006, pg. 502) further elaborates that proper assessment of a patient, therefore, requires an examination of the state of the art.
Agricultural activities are very important as they facilitate the production of food in abundance, fibers for clothing, and necessary materials for building houses. Therefore, agriculture enables individuals to enjoy a high quality lifestyle and helps in meeting people’s needs; furthermore, agriculture provides job opportunities for many Canadians.
The effective choice of customer on instant noodles is now seen as critical to gaining improvements in organizational performances. This is potentially good news for those involved in buying behavior because it means that there is greater interest in our subject than before.
This report highlights the importance of market research and consumer buying behavior in the light of Grand Days Out plc, an organization that owns and operates theme parks and other leisure activities. It starts of by identifying three Critical Success Factors for the company.
This is largely to due to the increase in complexity of modern organizations, the number of divisions or sub units within a division through which several decisions has to go through for approval. Apart from this, nine out of ten times an organization faces a situation to take decisions regarding organizational and transformational process.
In this context, consumers consume products not only for their intrinsic value but also as status symbols that are supposed to confer perceived and notional benefits like increased social recognition and to move up the social
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The author states that the consumer decision making process can be described as the several steps taken with regard to psychological determination of a final result according to the results obtained at each particular stage. By interviewing an individual one can determine the decision making process that they underwent.