Overview

Consumer Behaviour is a study of how, why and what people do when they buy products or avail of some services. It attempts to understand the buyer decision making process It is a study of how individuals and groups recognise and determine their needs How they purchase and experience goods and services to meet these needs Consumer behaviour develops methods to quantify, forecast and influence the behaviour of consumers Focus would be on personal consumers who buy goods and services for their own use

Introduction
Consumer behaviour reflects: The totality of decision Whether, What, Why, How, When, Where, How much/ How often/How long About the consumption Acquisition, Usage , Disposition Of an Offering Products, Services, Activities, Ideas By Decision Making Units Information gather, Influencer, Decider, Purchaser, User Over Time Hours. Days, Weeks. Months ,Years

Need for understanding Consumer Behaviour

Companies have moved to a Marketing Orientation for following reasons Shorter Product Life Cycles Evolving Consumer preferences Environmental concerns Changing Life styles Faster technology adoption

Consumer Behaviour and Marketing Strategies

Study of customers is important for improving marketing strategies It enables understanding of how consumers select from among different alternatives The influence of the environment on the consumer The analysis of the behaviour of consumers while making decisions How consumer motivation and decision strategies differ between products depending on interest or importance How to adapt and improve marketing campaigns or strategies to penetrate markets

Marketing Concept
Market concepts is developed on account of requirement of ensuring a better satisfaction level than the competition Companies that focus on meeting customer needs are able to grow and adapt to changing business environments Consumer research is important because consumers have different psychological and social needs apart from basic functional needs Consumers and consumer behaviour has to be studied in-depth

Product Positioning
The company must position its product so that each market segment perceives the product as better fulfilling its specific needs than the competition The three important elements are market segmentation, targeting and positioning Market targeting is the selection of one or more of the segments identified for the company to pursue Positioning refers to the development of a distinct image for the product or service

Consumer Behaviour Strategies

Marketing mix consists of the four elements (4 Ps) Consumer behaviour strategies need to be analysed in combination with marketing mix elements This will facilitate insight into the success or failure of a brand A brand strategy can be formulated after considering a number of concepts associated with a competitive situation It is important to note that all elements of the marketing mix are important Marketing mix elements are important not only in their combination but also in the timing of these combinations

Customer Relationship
Customer relationship is of fundamental importance for a company Customers are the core of the companys organisational culture The factors for successful relationship between companies and customers are: Customer value, high levels of customer satisfaction, customer trust and a structure that ensures customer retention

Customer Value
Customer value is the ratio between the customers perceived benefit and the resources used to obtain these benefits A value proposition has to be developed and the customer expectations which will result, will have to be continuously fulfilled by the company in order to be competitive Customer satisfaction is a consumers perception of performance of a product or service in relation to expectations Also important is the establishing and maintaining consumer trust

Customer Retention
Customer retention strategy ensures that customers stay with a company. It is a strategic corporate goal which recognises that all customers are not equal. Selective relationships are build up based on profitability Customers consumption values and patterns are closely monitored Classifying customers according to profitability levels goes beyond traditional segmentation

Customer Power
New technologies has resulted in consumers having more access to information Consumers have the power to locate the best prices for products and services and companies have to be more competitive Companies have to offer a larger variety of products and services Digital communication is a two way interactive exchange and effectiveness can be quickly measured There is also the possibility and means to organise more information on consumers

Consumer Decision making Process

In the factors that influence consumer behaviour companies take into account the external stimuli This is comprised of the marketing stimuli i.e. four Ps and the environmental stimuli which consists of the economic, technological, political and cultural aspects The consumer decision making consist of buyer characteristics and the buyer decision process Finally , there are two closely related post decision activities, purchase behaviour and post purchase evaluation

What is Market Segmentation

Market Segmentation is required for catering to the specific needs of consumers Differentiated products are more profitable than standard products Marketing of consumer goods key elements are segmentation, strategic targeting and product or service positioning Evaluation of segments help in product development and devising suitable marketing strategies

Market Segmentation Utility

Segmentation research is used to identify the most appropriate media in which to place advertisements Product centric approach is required together with innovation that is timely and adds value Focus on segments leads to better advertising effectiveness and optimum utilisation of revenue Introduction of new brands in specific segments is also on account of competition

Market Segmentation - Basis

Market segmentation should be on basis of characteristics relevant to product or service The segment should have adequate customer size so as to be profitable Consumer segments should be stable and likely to grow The segment should also be easily accessible with an economic reach

Consumer Segmentation
Consumer segmentation can be based on consumer rooted features and cognitions as well as consumption specific facts and attitudes Important factors for consumer rooted segmentations are facts that are evidence based and easily determinable Demographics and Psychographics( lifestyles) are the most common categories used for segmentation Hybrid segmentations are used in most cases

Indian Market - Diversity

India is a tremendous marketing opportunity and characterised by rising income levels, increasing disposable incomes and consumption levels Diversity is a key characteristic together with rich heritage, religiously diverse, social hierarchy, joint family, numerous languages Hence products need to be aligned with local culture Communication, packaging etc have to be also in local language

Indian Market - Opportunities

Consumption and spending pattern of urban and rural customers are changing at a fast pace Socio-economic changes are resulting in creation of new markets and expansion of existing markets There is an elite class of consumers living in the top 30 cities of the country who can be identified with any developed country in terms of consumption habits There is a large size of limbers who also are a large market size Aspirants provide opportunities for low-priced brands / commodities

Rural Indian Market

Rural market has a huge potential and is a differentiated market Rural disposable incomes are growing and present opportunities to companies There is a requirement for a rural marketing mix with relevant advertising and use of nonconventional media Finally rural GDP is not totally dependant on agriculture

Adapt to Indian Culture

Companies must understand Indian culture in order to succeed in Indian market McDonalds sell McAlooTikkiBurger & Pizza McPuff Disney cartoon shows are in Hindi Electrolux and other brands make fridges which can withstand long power cuts and keeps food fresh

McDonald in India

The Local Campaign

The Green Fun begins here Selection of Indian Spices A strong bite in every mouthful Creamy Spicy Crunchy paneer

Local Initiatives
Community Involvement at the national level (South & West) McDonald's Fight against Malnutrition Nareshwadi Project Go Green Campaign McDonald's Traffic Safety Week in Association with Mumbai Police McDonald's Voting Initiative