DIVYADEEP: November 2013

A consumer’s buying behaviour is influenced by cultural, social, and personal factors.

1. Cultural Factors

Culture is the fundamental determinant of a person’s wants and behaviour.Each culture consists of smaller subcultures that provide more specific identification and socialization for their members.

2. Social Factors

Social factors such as reference groups, family and social roles and statuses affect our buying behaviour.

3. Personal Factors

Personal factors include the buyer’s age and stage in the life cycle; occupation and economic circumstances; personality and self-concept; and lifestyle and values.

Analyzing the difference and difference in Marketing Approach

Marketing Approach –

Marketing is a process in which we show our customers a path to reach there aspiring personalities by using our product/service.

Five ways of marketing approaches are

· Décor

· Merchandise

· Product display

· Product range

· Pricing

Décor: It is a multi–faceted profession in which creative and technical solutions are applied within a structure to achieve a built interior environment. The interior design process follows a systematic and coordinated methodology, whereby the needs and resources of the client are satisfied to produce an interior space that fulfills the project goals.

Merchandize: Behind the scenes, there is another factor at work. Corporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. It includes every walk of life and therefore encompasses a enormous captive audience for promotion features. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to seasonal and promotional changes. As products change, so will a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked store, even when it is not. Increases as the number of pertinent merchandise facts included in the advertisement increases." –Charles Edwards – Leader

Product display: The way we display our store in whole market environment as well as the way we display our products in store.

Product range: Different designs or variations of the same product platform that appeal to different market segments. Complete portfolio of the products that a company manufactures and or/ markets.

Pricing: This are the few pricing strategy’s we follow to attract customers, based on the market environment and the customers those who come to store,pricing strategy price system is selected, PLC Mgt, Value pricing, Product Sabotage, Price elasticity of Demand, Time based Pricing, Suggested Retail Price, Purchasing power, Psychological Pricing, Options pricing, Group Buy, Cost the limit of pricing.

Up-market shopping mall

Décor-

With today's seemingly unlimited competition, numerous shopping centers are faced with the need to critically examine themselves. Examine your shopping center as a consumer or retailer would. Does the center look sharp and appealing? What needs to be improved? Often this might include facade improvements, parking lot repair, better signs, entrance/exit changes, lighting, new roof repair, store fronts, beautification, and more. Physical deficiencies can loom large in the consumer's mind if newer, more modern shopping centers are located nearby.

Merchandize- The way in which items attract the public is changing into the technical age of Electronic Promotion.

This evolution brings moving images and sound to the once static ad. board, it is visually eye catching and provides far more data in a non pushy form. Patrons just can’t help but put a stop to and watch the dynamic monitor, influencing their selection of procure, which is what merchandising is all about.

Where these dynamic indoor (or out-of-doors) LCD TVs are placed is evenly important as the item they portray. Often monitors are located at the point of sale, where the shopper queue to pay for their purchase, but can also be converted by the moving ads to pick up the advertised goods, on screen next to them, and pay for it too whilst at the till point. Another innovative way is to screen the display in the floor of the store, where customers are attracted to the ads and are drawn to the electronic concept along with the retailer’s shop floor layout.

This is the way forward in a demanding world of sales, where every individual is a prospective sale. It opens up a whole new concept for promoting merchandise and visually communicates the advertisement to the consumer in a modern, contemporary and unique way.

Product Displays – Focus is also paid in displaying different types of consumer goods. Display cases in malls are designed for intelligent space utilization that makes them very functional for the places like exhibitions too. Available in different dimensions and shelf configuration, the structure of the stands is modular making them perfect for easy installation.

Product Range - Mall includes almost everything you ever wanted under one roof. It covers wide range of variety from apparels to accessories, beauty products, health productions, electronic gadgets, recreational equipments, home decoration and so on.

Pricing- With increase in the price in the area acquired for the shop in mall, Brand names, air conditioning , Appealing environment and offering recreational activities prices are higher and

The products are expensive. As a final aside, the larger stores and shops in town will have price-marked goods, so haggling is generally not possible.

Example- DLF Promenade, Select Citywalk, MGF Metropolitan.

Traditional Market

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. It is preferred due to; a rooted habit of making purchases traditionally, the tangibility of the product, more apparent communication with salespeople, stronger purchase sensations and instant transactions.

Décor- Interior is done making use of the space available.

Merchandizing- Banners plays very important role in merchandizing

Product Display- Products are displayed in a way that it grabs the attention of consumers

Product Range- Wide range of product s are available.

Pricing- Prices are flexible also includes bargaining.

Example- Janpath, Dilli Hart

Weekly Market

A Street market is an outdoor market such as traditionally held in a market square or in a market town, and are often held only on particular days of the week. Very similar markets, or bazaars can also be found in large enclosed spaces, instead of on a street. It is full of great treasures like handicrafts, shoes, clothes, CDs, movies and electronics, and much more! Here the selection is endless and the prices are rather cheap, especially with the help of a few bartering techniques .Here you will find a variety of items ranging from blown glass, ceramics, jewelry,clothes, footwears, accessories and much more. As in many markets, you will also be entertained as you shop with street performances, and there is always a chance to stop for ice cream or snack to make time for more shopping!

Décor- It is restricted by the restriction in infrastructure development

Being an outdoor market with limited space decoration is not of prime importance.

Merchandizing- All the trading activity takes place without any banners or hoardings. And the method adopted by them is to promote through word of mouth. It can also be found from the study that the accessibility plays a very crucial role. The market which is accessible by motorized road functions better.

Product Display- Because of lack of space products are displayed or aligned in a manner where consumer is able to see the product’s presence and can choose accordingly.

Product Range- It includes unbranded products like household items, vegetables, fruits often used by the masses.

Pricing- Prices are low. Although you will probably get a great price anyways, don’t forget to negotiate for the best price!

Example- Monday market Tilak Nagar, Malka ganj.

Local Retail Shop

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Décor-Interior of the local retail shop is of not of prime importance as comparatively the area size is larger than the malls and they make sure to use the entire space effectively. On special occasions decoration takes place mainly at the entrance or the place where it can grab customer’s attention. Entire shop is furnished in the way it is required.

Merchandizing- Hoardings , Posters promoting particular brand and also giving offers as given by the manufacturer.

Product Display-As per the furnishing in the shop products are arranged according to their usage, more selling products are kept in front.

Product Range-Offers huge variety from health care, personal care,ice creams, eatables, stationeries and so on.

Retail pricing-The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.

Example- South Extension, Vasant Kunj

ASPECTS OF CONSUMER BEHAVIOUR

*Processes that are likely to precede the purchase*	*Purchase act*	*Activities which often follow the purchase*
Clarification of wants media exposure	Actual purchase No. of items brought at one time	Who uses the product Storing and maintaining the product
Examinig alternative products	Timing of the purchase	Setting where the product is typically used
Searching for information	Place where purchase was made	Evaluating the products performance
Shopping	Price paid	--------------------
Talking with others	How Purchased- Cah/Credit	-------------------------
*Processes that are likely to precede the purchase*	*Purchase act*	*Activities which often follow the purchase*
Clarification of wants media exposure	Actual purchase No. of items brought at one time	Who uses the product Storing and maintaining the product
Examinig alternative products	Timing of the purchase	Setting where the product is typically used
Searching for information	Place where purchase was made	Evaluating the products performance
Shopping	Price paid	--------------------
Talking with others	How Purchased- Cah/Credit	-------------------------

DIVYADEEP

Friday, November 1, 2013

Nature's pic

MARKETING APPROACH AND ASPECTS OF CONSUMER BEHAVIOUR

A Glimpse from the growing Ecommerce Industry in India