The black box model shows the interaction of stimuli, consumer characteristics, and decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box model is related to the black box theory of behaviorism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The black box model considers the buyer’s response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality … Continue reading Black Box Model

Complex Buying Behaviour Consumers go through complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. Consumers are highly involved when the product is expensive, bought infrequently, risky and highly self-expressive. Typically the consumer does not know much about the product category and has much to learn. F01 example, a person buying a personal computer may not know what attribute to look for. Many of the product features like “16K.memory” “disc storage”, “screen resolution” carry no meaning to him or her. This buyer will pass through a learning process characterized by first … Continue reading Types of Buyer Behaviour and appropriate marketing strategies

A consumer’s buyer behavior is influenced by four major factors: 1) Cultural, 2) Social 3) Personal 4) Psychological. Example 1 A consumer buying his Dinner is influenced by: 1) Cultural – South Indian/ North Indian 2) Social – Family Special Item 3) Personal – Favorite Desert 4) Psychological – Tasty Example 2 A consumer buying his Dress is influenced by: 1) Cultural – Traditional/Trendy 2) Social – Mom’s choice 3) Personal – Favorite color 4) Psychological – Perception of best fit Continue reading Factors influencing Consumer Buying Behaviour

The Customer Buying Process (also called a Buying Decision Process) describes the process a customer goes through before he buys a product. Understanding a customer’s buying process is not only very important for Salespeople, it will also enable them to align their sales strategy accordingly. Many scholars have interpreted the process over the years; however, the five stages framework remains a good way to evaluate the customer’s buying process. Problem/Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Behavior Example 1 Lunch Foodpanda Holtels Filter based on cheapest price Order food Satisfied with Service provided Example 2 Pen Search … Continue reading Steps in Buying Process

Consumer Behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Application of Consumer behaviour in Marketing The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, … Continue reading Consumer Behavior and its application in Marketing

The process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Example The Apple brand is associated with innovative and premium products The Axe brand is associated with youthfulness Continue reading Branding

Marketing communications is essentially a part of the marketing mix. Promotion is what marketing communications is all about. Marketing communication aims at conveying a firm’s message as effectively and accurately as possible. The process is as follows:  Sender, Encoding, Transfer Mechanism, Feedback, Response and Decoding. Source– A source is also referred to as a sender.  The sender has a message to convey to others. The sender can be anyone from a brand manager (in a major corporation such as Nike or Budweiser) to a salesperson in a smaller organization.  At times, celebrities are used to endorse products and act as a … Continue reading Marketing Communication Process

Differentiation is an important part of the marketing of the product.  This means that the product is different from its competitors.  Product differentiation can be achieved through: Distinctive design– e.g. Dell Laptop; Apple Laptop Branding – e.g. Nike, Reebok Performance – e.g. Mercedes, BMW Unique Selling Point (sometimes called a Unique Sales Proposition) is a feature or benefit that separates (or differentiates) a product from its competitors. The concept of a USP is one of the basics of effective marketing and business that has stood the test of time.The USP could be a lower price, a smaller version of the … Continue reading Differentiation and Unique Selling Point (USP)

In order to be an effective and efficient business, you should seek out your target customer market. There are three main issues to consider when determining your target market: Market segmentation Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. Some different ways you can segment your market include the following; Demographics which focuses on the characteristics of the customer. For example age, gender, income bracket, education, job and cultural … Continue reading Segmentation Targeting Positioning (STP)