Understanding Consumer Behavior

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Understanding consumer behavior is very important in any organization that deals with the wants and the needs of the consumers. Consumer behavior refers to the study of groups, individuals or organizations and the process they are using in selecting, securing, using and disposing of services, products, ideas and experiences for their needs to be satisfied. It also involves the impacts that the products and services have to the society. It is important for a marketer to understand consumer behavior in the marketplace because there are different people in the society and therefore, their needs are very different. When a marketer can understand the needs of the buyers, especially the needs that are not yet fulfilled the organization is likely to be successful because whatever they are going to sell is likely to be bought by the customers. This paper will thoroughly discuss the importance of marketers to understand consumer behavior (Aaker, David & Gary, 57).

First and foremost, when marketers understand consumer behavior, it becomes easy for them to access the real needs of the consumers. As mentioned in the introduction part, consumers are different and hence they have different needs. When their behavior has been understood by the marketer, the marketer will be able to know what products and services are needed by the consumers and this helps the organization in knowing what exactly to produce and sell. This also helps the demography as they will get exactly what they need from the sellers or in this case the organization. Therefore, the study of consumer behavior enables a marketer of any organization in carrying out the assessment of the nature of the needs of the consumers and the best alternative to satisfying their consumers. Secondly, understanding of consumer behavior helps a marketer in establishing the objectives and goals of the organization. When a marketer understands the behavior of customers, he/ she will be able to develop marketing objectives and goals for the organization. When an organization or a company has effective goals and objectives, the company will work hard towards achieving the given goals and objectives and hence, achieving its success.

Thirdly, understanding of the consumer behavior helps a marketer to define, carry out the analysis and understand the marketing requirements. The study of buyers' behavior helps the marketer in the identification, analysis, and understanding of the behavior of the customers and their needs (Assael & Henry, 39). This hence helps the organization in segmenting the market rightfully and also taking the advantages of the market segmentation. There are very many advantages of segmenting a market in the right way, for instance, it helps an organization to compete favorably with other competitors. So with the knowledge of market segmentation the company or the organization, in this case, is likely to experience the advantages that come with proper market segmentation. Fourthly, the understanding of consumer behavior helps the marketer in reducing the uncertainty and the risks in the market. In every market, there are uncertainties that are likely to affect the marketing program of the organization and therefore understanding those uncertainties will enable the organization to make right marketing decisions because it will know the consequences of making wrong decisions (Hawkins, Delbert, Roger & Kenneth, 51). When an organization makes right marketing decisions, it will be able to minimize the risks that are associated with it making the wrong decisions, and that will help it achieve its goals and objectives.

The fifth significance of understanding consumer behavior is that it helps the marketer in understanding the dynamic and evolving nature of the market.  The study of consumer behavior mainly focuses on the dynamic and evolving nature of the market.  This hence helps the manager of the company or the organization to be alert, dynamic and active in satisfying their customers better and faster than their competitors. This will hence make the organization to be successful over its competitors.  When the behavior of the consumers is studied, the organization will be able to watch the movements of the market. The sixth importance of studying consumer behavior is that it helps the organization in measuring the impacts of the strategies it is using. The study of the customers' behaviors enables an organization to measure the impacts of the strategy that it is using to be successful. Therefore, this means that the understanding of consumer behavior is a foundation for an organization's evaluation. Lastly, the knowledge of consumer behavior helps the organization in knowing how their consumers use product information. This hence helps the company in developing their marketing policy.

Question #2

Product positioning is a very important element in every marketing plan. Product positioning refers to the processes that are used by the marketers to know how best they can communicate their products characteristics to their targeted customers. This communication is based on the needs of the customers, the competitive pressure that the company faces and the available channel of communication (Loudon et. Al.70). Effective product positioning is very important as it makes sure that the marketing messages favors the target customers and forces them to take action of buying the products. Product positioning is a kind of marketing that gives the benefits of the product to the intended or the particular audience. Through focus group and the market research, marketers can be able to determine the kind of audience to target. There are seven steps in the product positioning process (Nelson, 312). The steps will be discussed in the following paragraph.

First and foremost, the process begins with the organization knowing its target audience well. It is very importance for marketers to identify their target audience. This helps them to understand the preferences and the needs of their customers. People are different, and hence, individuals have varied needs, interests and preferences.  It is impossible for two individuals to think on the same line. This step helps the organization in knowing what is expected of them by their customers. It hence helps the organization in working towards making sure that the product they produce fulfills the demands of their customers. The second step is the identification of the features of the product. It is essential for the marketers to be fully aware of the characteristics, benefits, and disadvantages of the product. It is normally said that one cannot sell something unless he/ she is fully convinced that that thing will help him/ her. The information of the product helps the marketers to know what they are going to tell their targeted customers during promotions and advertisements. For instance, if a marketer is selling a Samsung phone, the targeted customers will be more convinced if the marketers are using the same kind of phone they are advertising.

The third step is the unique selling propositions. It is important for every product in an organization to have its unique selling proposition. This means that they should have features which are unique. It is the responsibility of the organization to create unique features of its brands and then communicate the unique features to the audience (Solomon, 10). This step helps the marketers in convincing the audience on why they should use their products. The forth step is identifying the competitors. It is essential for a marketer to be fully aware of the offering of the competitor. This step helps the marketers to let their customers know why they should purchase their products over the products that are being offered by their competitors. It also helps the marketers in knowing that they should never underestimate their competitors. The fifth step knows how to promote the brands. The marketers should choose the right advertisement for their products. The sixth step involves maintenance of the brand's position. These include highlighting the benefits and the advantages of the products and always make sure that the products are of high quality (Peter et. Al. 20). There is importance as to why a company should choose product positioning for itself. The importance is as follows; it helps in making the company market-oriented, it helps the company in coping up with the market changes, it helps the company in meeting the expectations of the buyers, it helps the company in promoting the loyalty and the goodwill of the consumers, it helps the company in designing best promotional strategy and finally, it helps the company to win interest and the attention of the customers. McDonald's has good strategic positioning. It has many activities that are different from the activities of its competitors. These activities include; selling goods at customer friendly prices and selling high-quality foods. The expansion strategies that can be used in expanding the positioning strategy for the McDonalds are; internalization, diversification, and integration.

Works Cited

Aaker, David A., and J. Gary Shansby. "Positioning your Product." Business Horizons 25.3 (2012): 56-62.

Assael, Henry. Consumer Behavior and Marketing Action. Kent Pub. Co., 2014:37-90

Hawkins, Delbert, Roger J. Best, and Kenneth A. Coney. Consumer Behavior. McGraw-Hill Publishing, 2009.50-51

Loudon, David L., and Albert J. Della Bitta. Consumer Behavior: Concepts and Applications. McGraw-Hill Companies, 2014:60-99

Nelson, Phillip. "Information and consumer behavior." Journal of political economy 78.2 (2010): 311-329.

Peter, J. Paul, Jerry C. Olson, and Klaus G. Grunert. Consumer Behaviour and Marketing Strategy. London: McGraw-hill, 2009:20

Solomon, Michael R., et al. Consumer Behavior: Buying, Having, and Being. Vol. 10. London: Pearson, 2014.

September 18, 2023

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