Analyze the Consumer Behavior Essay
One could argue that in order for marketing strategies to be successful, an organization needs to be well informed on consumer behavior. Organizations must first have a clear understanding of what the term consumer behavior means and how it is related to marketing. Information provided by studying or researching consumer behavior can give insight on the 4 P’s, which consist of product, price, promotion and place. Marketing professional and organization should understand that these things are all influenced by consumer behavior.
Consumer Behavior and Marketing
Consumer behavior is defined as “the study of individuals, groups, or organizations and the process they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and impacts that these processes have on the consume and society” (Hawkins, Mothersbaugh, & Best, 2007, p. 6). Although this definition is very broad, it will allow room to explore influences and consequences on consumer decisions. Consumer behavior and marketing go hand-in-hand. In order for marketing strategies to be successful, marketers must first understand what consumer behavior is. For example, todays growing technology puts more challenges on companies to compete with other businesses from around the world that they would have not other wise heard of. Global marketing is higher than it has ever been because of these technologies. You can find American stores and restaurants all over the world.
Burger Kings, Subways, and McDonalds, are on every other corner in Europe. The consumers in these countries however, do not have the same behaviors as consumers in the United States. For the companies to be successful they must research and understand the consumer behavior in each area they place a store or restaurant. Businesses need to know who their target audience is, their wants, needs, their location, and how they will react to promotions (Dietrich, 2014).
This information can be gathered through the use of surveys and studying the past behaviors of consumers (Dietrich, 2014). Marketers can use past information such as sales reports and marketing databases to assist in analyzing consumer behavior. Understanding what a consumer thinks, feels, and the reasons they choose certain products over others helps companies make decisions about future products. Companies and organizations use the information gathered from consumer behavior to design marketing campaigns.
Deciding to Purchase
With any shopping experience, the 4 P’s of marketing always place a role. There are times when one or two of these elements may have more importance than others. In one recent shopping experience, the product, price, promotion, and place did not have equal weight. Although the product and price were very important, promotion had the highest influence on the decision to purchase this particular product. The place had no weight at all. The product being considered was a YSL foundation with a price point of fifty-five dollars. As a make up artist for a large company, there are many options for free foundations, which made it a difficult decision to make.
The reputation of the products company played a large role in deciding to go ahead with the purchase. The product was sampled at a local store in which it was available for purchase. However, it was purchased through the stores online services. By purchasing online, consumers are able to receive other promotional offers not available in-store. By offering free samples and some full size products, the company is able to track buying habits and consumer behavior.
Conclusion
Consumer behavior plays a large role in marketing by providing information to organization and marketing professional. The information gathered is used to influence marketing strategies intended to sell products services or other goods to consumer. Without an understanding of the ideas, thoughts, and needs of consumers, companies would simply make assumptions, which can be a costly mistake. Studying consumer behavior is more important now than ever with the advancement in technology over the years.
Companies now have the power to reach across the globe to sell their products and services to consumers that were previously unreachable. For these international businesses to be successful, they must understand the consumer behavior of those in the area they are targeting. Understand consumer behavior can give marketing professionals insight on the likelihood of consumers choosing online shopping over in-store purchases.
