Question 1 Answer

❖ Marketing Concept:
The marketing concept involves identifying consumer needs and wants and then producing products
(which can be goods, services, or ideas) that will satisfy them while making a profit.
Understanding consumer behavior is essential for a company to find success for its current products as well as new
product launches. Every consumer has a different thought process and attitude towards buying a particular product. If
a company fails to understand the reaction of a consumer towards a product, there are high chances of product failure.

Due to the changing fashion, technology, trends, living style, disposable income, and similar other factors, consumer
behavior also changes. A marketer has to understand the factors that are changing so that the marketing efforts can be
aligned accordingly and these are;

1. Consumer Differentiation:

In marketing, consumer differentiation is a way to distinguish a consumer from several other consumers. This helps to
make a target group of consumers with the same or similar behavior.

Though you have a targeted customer demographic in your business, you can still have variations between individual
customers. Each group of consumers are different and their needs and wants differ from other groups. When a marketer
is knowledgeable about differentiation of each group of consumers, he can design separate marketing programes.

Consumer differentiation will help to tailor your strategies to the needs of varying customer groups. When consumer
differentiation is done, you can expand the width and breadth of your services. You will be able to effectively serve a
wider group of people.

For example, if you own a car lot that sells both new, high-end vehicles as well as pre-owned, economical vehicles, you
would need to take two different messaging approaches. In reaching out to your high-end customers you would focus
on luxury, perception and prestige, while on your pre-owned vehicles, you would market on the premise of selling
reliable cost-effective transportation.

2. Retention of Consumers:

“Consumer behavior is of most importance to marketers in business studies as the main aim is to create and retain
customers” says Professor Theodore Levitt (Kumar, 2004).

Consumer behavior is not just important to attract new customers, but it is very important to retain existing customers
as well. When a customer is happy about a particular product, he/she will repeat the purchase. Therefore, marketing
the product should be done in such a way that it will convince customers to buy the product again and again.

Thus, it is very evident that creating customer and retaining them is very important. This can be done only by
understanding and paying attention towards the consumer’s buying behavior.

For examples: Rewarding consumers for doing business with a brand. Rewards programs encourage customers to
return by giving them discounts, exclusive access, or special offers. Starbucks has one of the most popular and
praised customer rewards programs.

3. Design Relevant Marketing Programme:

Understanding consumer behavior allows you to create effective marketing campaigns. Each campaign can speak
specifically to the separate group of consumers based on their behavior.

For example, while targeting kids market, you may have to look out for venues such as TV ads, school programes and
blogs targeting young mothers. You will need to take different messaging approaches for different consumer groups.

A study of consumer behavior enables the marketers to understand what motives consumers to make purchases.
Furthermore, the same motive can be utilized in advertising media to stir the desire to make a purchase.
Moreover, marketers should take decisions regarding the brand logo, coupons, packing and gifts on the basis of
consumer behavior.

4. Predicting Market Trend:

Consumer behavior analysis will be the first to indicate a shift in market trend. For example, the recent trend of
consumers is towards environment friendliness and healthy food. This changing market trend was observed by many
brands including McDonalds. Based on the consumer behavior, McDonald’s brought healthy food options.

By conducting consumer behavior study, a company saves a lot of resources that might otherwise be allocated to
produce a product that will not be sold in the market.

For example, in summer a brand will not waste its resources for producing a product that will not sell in summer. Based
on consumer behavior the company decides on production strategy which will save on warehouse costs and marketing
costs.

5. Competition:

One of the most important reasons to study consumer behavior is to find out answers to some of the questions:

Is the customer buying from your competitor?

Why is a consumer buying from your competitor?

What features attracts a consumer to your competitor products?

What gaps are your consumers identifying in your products when compared to your competitors?

Studying consumer behavior facilitates in understanding and facing competition. Based on consumers’ expectations,
your brand can offer competitive advantages.

Within an industry, all businesses that offer the same products and services are in direct competition. For example,
anyone who sells electronics is a direct competitor with other sellers of electronics. All media consulting firms are in
direct competition with each other.

6. Innovate New Products:

We all know some of the big names such as New Coke, Crystal Pepsi, Colgate Kitchen Entrées, Earring Magic Ken Doll,
and Wheaties Dunk-a-Balls Cereal. Can you see the similarities in these products? Yes, they all failed!!

The sad truth is that most new products and new ideas end up in failure. There is an estimate of new product failures –
they range from 33% to 90% based on the kind of industry.
Companies consistently strive hard to improve the success rate of their new products or new ideas. One of the most
important ways is to conduct sound and thoughtful consumer behavior study.

For example: With the help of consumer behavior analysis, Nike realized that most of its target audience is not
professional athletes, but many of them were striving to be more like them. So at the 2012 Olympics in London, Nike
introduced a campaign to encourage athletics called ‘Find Your Greatness’. It aimed to promote the aspirations of being
an athlete, not just with high-performing athletes, but wanted to include all people regardless of their physical capability.
The campaign was well planned and was data-driven, of course, carefully analyzed before taking any action. This
message inspired many consumers and had enormous appeal for target consumers.

7. Stay Relevant in the Market

When the world is changing as rapidly as it is happening today, the biggest challenge we all face is staying relevant to
our target market. And do you know what is the main reason behind the rapid changes? It is the ever-changing behavior
of our customers.

Today’s consumers have greater choices and opportunities, which means they can easily switch to a company that offers
better products and services.

“The pre-eminent skill required to shift ahead in the twenty-first century is the ability to see and seize.” -Adamson and
Steckel, authors of Shift Ahead.

Losing relevance will only cost the company its market share.

For Example; Sony Walkman failing to stay relevant in the digital music era, and the taxi industry doom with no
preparedness to battle the UBER uprise!!

8. Improve Customer Service

Consumers require different levels of customer service, and understanding the differences within your customer base
will help you provide the most appropriate service for individual needs.

For example, if you own an electronics store, high school or college students who buy a new laptop are more likely to
understand the features they’re looking for than a person buying his first computer. With the first demographic, your
service goal will be to provide information about the latest trends in technology, while with the second demographic,
you’ll need to spend more time educating the customer, finding out what his specific needs are, and even teaching him
how to use the features of his new electronic device.

Question 2 Answer
❖ Behavioral Targeting is a technique used in online advertising and publishing, where data from visitor
browsing habits (e.g., search terms, sites visited, purchases) is used to display relevant ads and offers and improve
campaign effectiveness. It is a marketing method that uses web user information to strengthen advertising
campaigns.

Behavioral targeting allows advertisers and publishers to target customers based on their behaviors across different
websites. For example, if someone browses Amazon for cooking knives without making a purchase, Amazon’s
advertising network can show this visitor more ads for knives on other websites, increasing the eventual likelihood
of a purchase.
 For many companies, traditional advertising can feel like an arbitrary, hit-or-miss operation. Carefully crafted
messages sometimes fall short without an apparent reason. Potential customers don’t connect with the product in
a way that encourages them to engage and purchase. These less desirable results often stem from marketers
creating ads that fail to address the viewer’s particular interests and desires. They can also result from reaching
the wrong audiences altogether.

❖ The Impact of Technology on Consumer Behaviour

The influence of technology on consumer behavior is impossible to ignore. New technology has empowered
consumers. They have unlimited access to information and demand products and services when they want. Social
media has given consumers a bigger voice and new channels to communicate with brands and share their opinions
with peers.

As the speed of technology and trends in consumer behavior accelerate, companies have to evolve quickly. The brands
that deliver on consumer demands will thrive, and those that are slow to react will not survive.

The following are technological advancements which helps in targeting behaviour of the consumers;

1. Consumers Are More Connected

Consumers are more connected to business than ever before. Using smartphones, they can research products, ask
sales questions, and purchase products no matter where they are and what they are doing.

For example, the time spent commuting to work on a train or bus has been massively changed because of technology
and connected devices. According to a study by the Centre for Economics and Business Research, UK consumers spend
over £22.8 billion per year online shopping while using public transport.

When it comes to social media, consumers use these channels to interact with brands and submit customer service
queries. But also as a resource to help them make purchasing decisions. According to GlobalWebIndex, 54% of social
media users have used social media to research products.

With consumers becoming hyper-connected, there is an increasing number of opportunities to engage new and
existing customers. However, companies need to understand how they can cut through the noise and meet consumer
demand.

2. Consumers Use Multiple Devices

In 2019, mobile accounted for 50.44% of total global internet traffic and 77% of total digital minutes in the US. Along
with increased household penetration of tablets and wearables, consumers use a wide variety of devices to access the
internet and purchase products.

Consumers don’t use a single device throughout the buyer’s journey. According to a Google report, 90% of consumers
use more than one device to accomplish a single task online. A shopper looking to purchase a product might start the
journey after seeing an advertisement on television and research products using their smartphone. After evaluating
different products, they might use their laptop to check pricing and complete the purchase.

Companies need to be there with the right messaging at the right time, whichever device their customer uses to reach
out. Determining how to reach every audience segment and how digital touchpoints interconnect is the challenge that
needs to be overcome.

3. Customers Have Higher Expectations

Consumers’ expectations are at an all-time high as a result of the influence of technology. With digital pioneers
continually raising the bar, your customers compare the experience of buying from you to your competitors and the
experience they receive from Amazon, Netflix, etc. Consumers expect more responsive, relevant, and targeted
communication, products, and services from the companies they buy from.

Companies used to have set business hours, and consumers would have to wait before contacting a customer service
representative or purchasing a product. Consumers now expect tailored experiences on demand.

If a consumer is forced to wait for a response from customer service or to buy a product, they will find a competitor
that offers a better experience. The bar for satisfactory customer experience is higher, with consumers expecting more
and more from companies.

Consumers are aware of their power and will use it when they don’t receive a positive experience when dealing with a
company. According to a study by American Express, over 50% of Americans have scrapped a planned purchase
because of a bad customer experience, and 74% of people have switched brands because the purchasing process was
too difficult.

For businesses that fail to acknowledge and meet consumer demands, smaller market share and irrelevance will result.

Conclusion

Technology is continually evolving and will always impact consumer behavior. The speed of that change is getting
faster and faster. With IoT and 5G still emerging, companies need to prepare by identifying trends now and capitalizing
before it is too late.

The influence of technology is a powerful catalyst for change. If companies don't move with technology, they will be
left behind and see their market share fall.

Question 3 Answer
❖ Model of the Motivation Process:
The motivational process is the steps that you take to get motivated. It is a process, that when followed produces
incredible results. It is amazing what you can do if you are properly motivated, and getting properly motivated is a
matter of following the motivational process. Like any other process it takes a little work and foresight and
planning on your part. However, the return on your investment of time is significant, and it is important when
needing extra motivation that you apply the motivational process.

The Model of Motivation Process is presented in the following diagram;

Employee motivation is of crucial concern to management; mainly because of the role that employee
motivation plays in performance.

5 Steps of Motivation Process

1. Identify Unsatisfied Needs and Motives.

2. Tension.
3. Action to satisfy needs and motives.
4. Goal accomplishment.
5. Feedback.

Steps of motivation process explained below;

1. Identify Unsatisfied Needs and Motives

The first process of motivation involves unsatisfied needs and motives. Unsatisfied needs activated by internal
stimuli such as hunger and thirst.

They can also be activated by external stimuli such as advertisement and window display.

For example: Every individual has needs, they are innate and acquired. Innate needs are also called
physiological needs or primary needs which include food, water, air, shelter or sex, etc.

2. Tension

Unsatisfied needs to create tension in the individual. Such tension can be physical, psychological, and
sociological. In this situation, people try to develop objects that will satisfy their needs.

For example : To reduce tension, every individual strives for fulfilling their needs. This basically, depends on
each individual how they fulfill their needs i.e. individual thinking and learning (experiences). Therefore,
marketers try to influence the consumer’s cognitive processes.

3. Action to satisfy needs and motives

Such tension creates a strong internal stimulus that calls for action. The individual engages in activities to
satisfy needs and motives for tension reduction.

For this purpose, alternatives are searches and choice are made, for example earning more money.

4. Goal accomplishment

Action to satisfy needs and motives accomplishes goals. It can be achieved through reward and punishment.
When actions are carried out as per the tensions, then people are rewarded others are punished. Ultimately
goals are accomplished.
For example: A HR manager can accomplish the goals of the company by giving perks, promotions,
incentives etc to their employee for showing good performance so from this their employees will be motivated
toward their work. and will work dedicatedly.

5. Feedback

Feedback provides information for revision or improvement or modification of needs as needed. Depending
on how well the goal is accomplished their needs and motives are modified.

Drastic changes in environment necessitate the revision and modification of needs.

Usually, performance is determined by;

1. ability,
2. environment and
3. motivation.

If any of these three factors is missing or deficient, effective performance is impossible.

For example: A manager may have the most highly qualified employees under him and provide them with
the best possible environment, but effective performance will not result unless the subordinates are
motivated to perform well. Therefore, management can do its job effectively only through feedback because
from this manager can be able to know how to motivate their employees to work for the accomplishment of
organizational objectives.

Or

For example: To meet the client's needs, Sam has worked overtime. He does this with a positive attitude and
understands it will benefit her team. Give her feedback that shows how much you appreciate her extra efforts.