Consumer behavior includes multiple elements that must be recognized, enumerated, and assessed depending on their specific product or service needs. According to me, the most interesting element of consumer behavior is the cognizance that acts a motivating factor to buy or ignore the product. Consumers make difficult buying decisions, and these buying methods are the main elements of the examination for the marketers. For an emerging expert in consumer behavior the expert must focus on research. Reducing the gap between conventional devices and the new equipment, surveys and feedbacks from the existing and potential consumers are also vital. According to , feedback is gained when one variable that is influenced by a second variable, now exerts influence on the second variable.
Evangelists belief on Sales Failure
TiVo failed in its forecast and undervalued its consumers, and they did not take the complete benefits of their established loyalty. TiVo was aware of their loyalty and TiVo converts, but they did not take the advantage of their loyalty although those consumers were keen on TiVo. TiVo could offer them some rewards or discounts, or one on one offer (buy X get Y). TiVo could introduce incentives when consumers shared their passion to friends.
Consumer reluctance to buy TiVO. Couch Potato is a lazy person, who would not be interested in any initiatives provided by TiVo, as they are comfortable with the traditional TV.
Executive belief and understanding. The top executive at NBC may be interested to know why the marketing strategy failed and know the cause. The top executive must initiate a different marketing strategy, or terminate Keast. The founder of TiVo would love to hear that the marketing team has recognized the strategic concerns and would address them at the earliest.
Stages in TiVo exploratory journey
The management’s approach to research in TiVo evolved gradually, as initially they were not aware of the unseen problems with their estimate. Getting started on a research begins with selecting a problem, which can be generated by reviewing past set of theories, observation, and by analyzing practical problems . The research approaches taken by TiVo were that the company introduced the concept of Myopia, without any focus on the strategies to confront consumer behavior. Lot of focus was provided on the product, technology, developments made in the television industry, but TiVo failed to focus on consumer behavior.
Exploratory Journey. Keast was curious to know the impact of TiVo on consumer, so the survey was performed to know the methods used by the consumer in using the product. The surveys evaluated consumer satisfaction, relative value of features, interests of TiVo users, and lifestyle impact, if any. Survey data may not tell the whole story . These surveys did not focus on finding the gaps between the customer intentions of buying the product and buying it in reality.
Guidance to Keast. After analyzing the case study, I would advise Keast on the following terms. TiVo penetrated slowly in the market, and provided an opportunity for Keast to find the reasons behind the slow entry and avoid the mistake in further upgrades. Keast must have strategized a new marketing approach to convince the consumers with the new technology, and analyzed the price on a regular basis to expand the customer base. Price analysis is a critical factor, and an extremely low price compared to others indicates that the seller did not fully understand the requirement or performed a mistake . Keast must have done a pre-launch survey to understand the requirements of consumers, as many consumers are hesitant to adopt a new technology, which they are unaware.
Speed Race: Benelli and QJ Compete in the International Motorbike Arena Case Study
Ans 1.1. In the current competitive market, companies choose the merger and acquisitions (M&A) as one of the quickest strategic option. In M&A, the culture of the contacts is limited to remote projects as the complete distinctiveness of both companies could be modified. Ineffective associations as the results during mergers and acquisitions as there are high possibilities of cultural clash between both the organizations. Culture is also challenging to address because changing it requires the visible and active support and engagement of business leaders .
Chinese Qianjiang (QJ) group acquired the Italian Benelli company after winning the bid against a Russian sports car manufacturer. After the M&A, Benelli, held the administration, manufacturing process, and research and development in Italy. The consequences of M&A were positive; however, QJ started seeing problems in the integration process because of the cultural differences like behavior and business processes between Italian and Chinese employees. These cultural differences were the seeds for the growth of dissimilar mindsets and practices. Cultural experience appeared everyday due to contrary working atmosphere in China and Italy.
Ans 1.2. The Boston Consulting Group (BCG) Matrix is a model used to investigate the group of strategic business units, reserves, investments, and products rendering to their money making competencies whose role is to provide comparative market share and market progression rate. A BCG Matrix is a four-quadrant diagram that shows categorization of products and services handled by a firm to analyze pushing of products and on which products the firm can spend more resources . BCG Matrix graphically represents variances in divisions in terms of Relative Market Share (RMS) and business growth rate. BCG Matrix agrees to a multidivisional business to achieve its business portfolio by inspecting the RMS, and the Market
Growth Rate (MGR) of each division relative to all other divisions in the organization.
The tables, Table 1, Table 2, and Table 3 analyze the BCG Matrix of the product Portfolios of Bellini. The sales performances and the financial results are disappointing in comparison to the QJ’s plans, while comparing them to the Benelli’s potentials. The tables also compare the registration of the vehicles against the direct Italian competitors Morini, MV, and Triumph.
Ans 1.3. The present market environment is characterized by global competition than the more fluid domestic and international markets in the past. The Chinese companies, for example QJ, face inexperienced environments, where the business practices, prototypes, simulations and routines, including the administrative, financial and legislative rules are completely different from those established in China. To solve this issue, QJ must adequately prepare for international business or investment, analyze the environment of the target country to determine its level of economic and political risk and opportunity .
QJ is focusing on the motorcycle industry through the acquired Italian company, Benelli, which has products in the heavy segment, and in the scooter sector. QJ also focuses on the scooter sector, and also the lower price segment in the market. Benelli as a reputed brand had offered good quality products in sports; however, after the M&A with QJ, QJ derived industrial plans and increased the workforce. Benelli faced stiff competition from Triumph in the scooter industry. Benelli could have averted damages, if they knew the competition and manufactured luxury motorcycles, with better performances with lower prices than its competitors.
Benelli Company was motivated for M&A with QJ as it had faced increased competition from Japanese manufacturers, and had lost sizeable investment, faced by liquidation. After M&A, if QJ can solve this issue by greater market visibility and a wide range of value products.
International Marketing Exam
Ans 1: In intra-form trade, the company’s product manufacturing products happens in global countries, both for local sale and also to export internationally, including their own home countries. The multinational companies (MNCs) progressively manage the global trade flow from their native countries. For example, Texas Instruments, the semiconductor company has its production plant in Japan, and it markets the semiconductor chips not only in Japan, but also exports them from Japan to U.S. and other countries.
Ans 2: The four stages of consumption processes are Access, Buying Behavior, Consumption characteristics, and Disposal. Access describes if the consumer can access the product or service. Buying behavior stage describes the decision process of the consumers whether they are in a state to buy the product. Consumption characteristics inform about the factors that impact the consumption patterns and the disposal stage describes about the consequences of product disposal.
Ans 3: The weaknesses of lifestyle based segmentation are that the values are very common to associate to consumption forms in a particular product category. These segmentations are not actionable and not stable as they keep changing over time. Lifestyle segmentation is particularly widespread in advertising circles.
Ans 4: Hyper competition means that all the companies face with a form of aggressive cooperation, which is harder than unchallenged competition; however, it is not flawless competition where the company is atomistic and not in a position to influence the market. Hyper competition is followed in the industries such as fast moving advanced technology companies, airlines, and processed foods.
Ans 5: Strategic Alliances serve as a coalition of two or more organizations to achieve strategically significant goals those are commonly beneficial because the companies, those operating in technology serious industries, may not be leading in all the required technologies. Alliances can be proven by a modest licensing agreement between two partners, but they can also be a thick web of ties. Alliances vary on the skills brought in by the partners.
Ans 6: The key sources of foreign marketing information are to know the advertising regulations and restrictions in a foreign market. Polycentric orientation is a feature of international marketing that refers to an inclination of companies to the presence of important local traditional differences across markets, demanding operations in each nation being observed independently. Gathering information about independent intermediaries to export is required.
Ans 7: The measures considered by the exporters to hedge themselves against antidumping procedures are the marketing strategies such as trading-up, service enhancement, and distribution and communication. According to me, service enhancement is the best, as this strategy tries to sideline from the price competition, and makes the exporter trade with low risk, and is less susceptible to dumping charges.
Ans 8: Many advertisement regulations are known to be aggravating or lighthearted, and having an established advertising rules and restrictions is advantageous for the consumers and advertisers. Marketers can cope with the advertising regulations by keeping track of regulations and pending legislation, screening the campaign at the initial stages, lobbying activities, challenging the regulations in the court, and by adapting the marketing mix strategy.
Ans 9: The popularity of private labels and the market share is much higher in Europe, when compared to Asia. Private labels are popular because the retailers rely more on store brands to attract the price sensible customers, and to expand their product offerings. In countries like Japan and Asia, consumers are brand conscious, unlike European consumers.
Consumer Behavior Exam
Ans 1: The role of consumer analysis in developing market strategies are the following. The companies exist to provide value to the customers, as without the consumer the companies would never be present. Every consumer is unique, expects respect, has emotions and feelings, and must not be considered as a value in a spreadsheet or a bar in the graph. Customers share their experiences, so it becomes a protocol for the companies to provide better customer service, as it is an investment and not an expense. The markets must follow a combined approach with the consumer rather than focusing on their behavior. Marketing operations transparency enhances consumer trust. The companies can enhance profits by obsessing about serving consumers well.
Ans 2: The Wheels of Consumer Analysis tool helps the marketers know the different levels such as societies, industries, market segments, and individual consumer. Health issues concern the society, and everyone wants to have good fitness level; the marketers develop equipment’s that promote health. For the industry level, deviations in consumer cognition, affect, and behavior can intimidate the present products and may also provide prospects to improve products more reliable with new values and performances. At the market segment level, the marketers develop products for a group of consumers based on the resemblance in their cognition, affect and behavior. For example, consumers concerned about health may start a new sport to be healthy. The marketers can manufacture different shoes for indoor sports and outdoor sports. At the individual consumer level, the tool can help the marketers investigate the consumption history, specific purchase, or a particular consumer’s partial purchase.
Ans 3: Small-business entrepreneurs practically do not know about the market segmentation. Large organizations develop their in-house segmentation systems by pulling out their proprietary customer data. Segmentation and positioning decisions for large organizations enable them to discover high, medium and low profitable consumers. Most small-businesses entrepreneurs position the products depending on the thoughts of the business owner, their family, and certain friends and consumers, which they refer as sample.
Ans 4: Three types of subjective meanings that consumers may construct to symbolize experiential aspects of the perfume would be to smell the perfume, apply it on handkerchief or fingertips, and check if the perfume attracts the opposite sex. A few strategies used by marketers to influence each meaning would be to provide different color to the perfumes, create a sensuous image with a puzzling slogan that displays some intellectual concept of the brand, or providing cash back guarantee if the consumers do not like the perfume after initial use.
Ans 5: The relevant products as the basis for intrinsic self-relevance after considering the differences between consequences of possession and consumption are the ones that provide importance to social visibility (for example, Are people aware that I have this product?), and time commitment. The consumer must have the means-end knowledge about a product category. My purchasing behavior would be influenced by involving in the product and knowing its product characteristics and functional consequences.
Ans 6: Comprehension cannot occur without attention. Through attention, consumers select some information and ignore other information that enhances when consumer stimulation is high. Consumers move to comprehension after gaining attention. Memorability is a variation in comprehension that is relevant to recall; the other variations such as level and elaboration influence Memorability. Marketing approaches that excite consumers to involve in products, and intricate comprehension processes improve the recall ability. For example, Starbucks coffee provides a rich ambience to enhance attention by good atmosphere, tasty and quality coffee, music and good customer service.
Ans 7: The components of problem representation are an end goal, a goal hierarchy comprising of subgoals, relevant product knowledge, and heuristics by which consumers investigate, estimate, and incorporate this information in decision making. Marketers influence the consumers’ problem representations by portraying consumers in advertisements as demonstrating and later trying to solve a purchase problem in a specific manner.
Carpenter, G., & Wyman, O. (2009). The impact of culture on M&A: Doing something about it. Retrieved from mmc.com: http://www.mmc.com/views/Mercer_impactCultureM&ATransactions.pdf
Jackson, S. (2007). Research Methods: A Modular Approach (Illustrated ed.). Cengage Learning.
Kotabe, M., & Helsen, K. (2009). Global Marketing Management (5 ed.). John Wiley & Sons, Inc.
Mullen, B., & Johnson, C. (2013). The Psychology of Consumer Behavior. Psychology Press.
Murphy, E. J. (2008). Guide to Contract Pricing: Cost and Price Analysis for Contractors, Subcontractors, and Government Agencies (5th ed.). Management Concepts Inc.
Orcullo, N. A. (2008). Fundamentals of Strategic Management. Rex Bookstore, Inc