a new take on matters

Definition
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society

Assumption
The principle assumption upon which the theory of consumer behavior and demand is built is: a consumer attempts to allocate his/her limited money income among available goods and services so as to maximize his/her utility (satisfaction).

Applications of Consumer Behavior

For making better marketing campaigns

For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon

Public policy Social marketing involves getting ideas across to consumers rather than selling something Studying consumer behavior should make us better consumers

The Consumers Buying System

The process of brand purchase How consumers think, feel and act when deciding what to buy How a brand can leverage each stage of this process by:

Unlocking key consumer insights Discovering ways of positively influencing the consumer over competition Identifying meaningful contact points to communicate with him

The Consumers Buying System

Trigger

Experience

Consider

Buy

Search

Choose

Trigger Category Motivators

Consumer begins to think about a purchase

Consider Frame of Reference

Consumer thinks of what satisfactions he wants from the purchase

Search Information Sources

Collects and evaluates information

Choose Brand Discriminators

Begins to form preferences for brands

Buy POS Impact

Consumer has made up his mind, but can stay with or change decision

Experience Brand Satisfaction

Consumer is using the brand post purchase

What kind of purchase is it? Routine, impulse, solution, lifestyle or a combination

What is the purchase needed for?

Self maintenance, self expression, self reward, self improvement

What are the best available information sources?

Active to passive sources Direct experience, WOM, Editorial, Media, Collaterals

What values best separate or elevate the brand?

Functional & Non-functional Benefits, Personality, Values.

Where is the brand strong or weak?

Moment of truth: Distribution/ Availability, Display, Price/Promotion s, Trial, Sales Staff, After-

Did the brand meet my expectations?

Brand Delivery: Performance as promised? Reassurance

consumer are
reshaping the

that

- Charles Darwin

Mega Trend I

The Cosmopolitan People

Internationalism Bangladesh i World Class

The Cosmopolitan People

The global hi-street

Blending of Cultures

Breakdown of the North-South divide

Tangail

Saree Bogura Doi Chittagong Mezbaan Barisal Shutki

Blending of Cultures

Rise of the ethnic-chic

Bibi

Russell, Paan Masala, Ghazals, Asian Food, Remixed Music djuice: local lingo/ethos

Globalisation Vs. Pluralism Paradox

Diversity as an opportunity Wide options for segmentation, targeting and positioning

Personal Care: Western : Loreal, Revlon Ethnic : Vicco, Dabur Hybrid : Biotique, Himalaya

Mega Trend II

Time is the new currency

Boom in convenience products & services

Fast food, Ready-to-wear, Appliances, Home delivery Phone/Net Banking, Flexi-load, Online transaction culture Allen Solly Workwear, Tanishq: 9 to 5, Womens Credit Cards

The work-wife revolution

The retailing boom

Hyper Markets, Super Markets, Specialty Stores

Expanding Personal Space

Multiple brand usage within category within home

Soaps
Mom Dad Son Daughter Infant : : : Dove Imperial Leather Denim : Palmolive J&J

Consumer Upgrading

Moving up the price-performance ladder Entry level moving up

Family Orientation

Increased involvement of kids and wife in purchase decision, across categories Family targeting :

Fantasy Kingdom, Agora, Cream n Fudge, Pizza Hut, Horlicks Shoppertainment, Vacation/travel packages

Family driven lifestyle

Mega Trend III

I want it now!

I want it now!

Buy now, pay later

Credit Cards, Loyalty Cards

Fast-buck, fast-fame culture

KBC, Close Up 1, Khude Gaanraj, Super Hero Super Heroine

I want it my way!

New values & attitudes - breakdown of stereotypes Increasing personalisation

Shampoos for hair-types Creams for skin types Jeans for fits

I want it my way!

Servicisation of products :

Surf Excel Wash Advisory, Asian Paints Colour Matching, Lakme Beauty Service

Divergent role models

Sachin Tendulkar, David Beckham, Michael Schumacher, Sania Mirza, Bill Gates, Shahrukh Khan, Rakhi Sawant, Britney Spears, Tom Cruise

Health and Wellness

Looking good, feeling good Eating right Combating the ills of todays lifestyle Stretching youth

anti-aging metro-sexual

Gyms, Beauty Clinics, Health foods, Personal care products, Health care services

On-the-go lifestyle

Hi mobility, multi-tasking Need for instant connectivity/access

Cell-phones, PDAs, Laptops, GPS, Google

New shorthand

sms, mms, email lingo

i-pod, FM Radio, Coke Mobile, Mobile food Information, Communication, Entertainment

Need for on-the-move consumption

ICE on the move

The Schizophrenic Consumer

Dr. Jekyll Pattern

Mr. Hyde Pattern

Dining at Italian Restaurants Wearing Armani suits Splenda with tea

Having fuchka by the roadside T-Shirts from Bangabazar Finishing with Rosgulla

Prayers at mazar before exams

Partying in Westin afterwards

Mega Trend IV

The Neo-Nawabs

Second generation trading class Young urban professionals & entrepreneurs Been-there-done-that rich kids

I have arrived!

Conspicuous consumption Badge brands

Tommy Hilfiger, Armani, Tag Haeur, Mont Blanc, Bose, Rockford Fosgate, Prada, Salvatore Feragamo, Single malts, Cohiba cigars, Evian Farmhouse bashes, glitzy Shaadis, exotic vacations, golf on Fridays

Social mobility

Exclusive niche marketing opportunities

Food for Thought

Consumer
Disappearance of Mr & Mrs. Average Consumer The Age of the Individual Time as the new currency A wired world

Marketplace
Clutter, clutter everywhere Darwinian pressure on products and services Threats to brand loyalty and long-term value

Implication
Need for fresh ideas in Brand Marketing, that connect with the changing consumer, to reshape markets.