Sunder Sing, just escaping homelessness is clearly proud that he was able to save and buy
apair of Nikes. He could undoubtedly have purchase a different brand that would have met
hisphysical needs as well for much less money which he does not say why he bought the
moreexpensive Nikes, a reasonable interpretation is that they serve as a visible symbol that
SunderSingh is back as a successful. Sunder Singh is not Unique among low-income
consumer inwanting and buying items such as Nike shoes. As one expert says. “The low
income consumer wants the same product and servicesother consumer want”. He suggests that
marketing efforts reflect those desires. Another expert state. There’s this stereotype that they
don’t have enough money for toothpaste and that’s just nottrue. There has been some
significance to them being called lower income, but they do buy [Link] working poor are
forced to spend a disproportionate present of theirs income on housing,u t i l i t i e s a n d m e d i c a l
c a r e d u e t o l a c k o f i n s u r a n c e . T h e y g e n e r a l l y r e l a y o n p u b l i c transportation,
they spend a smaller portion of their relatively small income on meals awayfrom home and
all forms of entertainment such as admission, pets and toys; they spend verylittle on their
own financial security. However Sunder Singh illustrated they spend the samepercent of
their income though a smaller amount on apparel and accessories. Nike is the number
one global sports brand in the world. Its famous ‘swoosh’ is instantly recognizable. For youth
Nike is a fashion brand. Sunder Singh, a 32 years single man withoutfamily and cheated by
his girl friend; currently a newspaper seller after losing his best & hours shift job with 2
employer proves that he belongs to economically lower middle [Link] from own
saving a second hand Nike shoes from flea market shows he loves to havea fashion like an
upper economy class consumers. For him Nike means a fashionable icon. Sunder Singh
virtually belongs to “believers” of VALS approach to psychographics segmentation
What does the purchase of a product like Nike mean to Sunder Singh? Sunder Sing, just escaping
homelessness is clearly proud that he was able to save and buy a pair of Nikes. He could undoubtedly
have purchase a different brand that would have met his physical needs as well for much less money
which he does not say why he bought the more expensive Nikes, a reasonable interpretation is that they
serve as a visible symbol that Sunder Singh is back as a successful.
He suggests that marketing efforts reflect those desires. Another expert state. There’s this
stereotype that they don’t have enough money for toothpaste and that’s just not true. There has
been some significance to them being called lower income, but they do buy things. The working
poor are forced to spend a disproportionate present of theirs income on housing, utilities and
medical care due to lack of [Link] generally relay on public transportation, they spend a
smaller portion of their relatively small income on meals away from home and all forms of
entertainment such as admission, pets and toys; they spend very little on their own financial
security.
However Sunder Singh illustrated they spend the same percent of their income though a smaller
amount on apparel and accessories.
2. What does the story say about our society and the impact of marketing on consumer behavior?
“Society can exist without Marketing, but Marketing cannot exist without Society”Marketing is the
management process of anticipating, identifying and satisfying customer’s requirements. The various
conventional marketing tools- advertising, branding, direct marketing, sales promotion, publicity & public
relations. Effect of marketing on society, in particular on Vulnerable Groups Marketing and society, the
commensuration of the two words raises a few eyebrows, as it is highly debatable. On the one hand,
Society thrives on the marketing efforts of the Companies, while another school of thought argues that
marketing makes the society more [Link], striking a balance between the two is the
challenge faced by the Marketers.
The society expects the business to be ethical and desires corporate executives, at all levels to apply
ethical principles in other words, guidelines as to what is right and wrong, fair and unfair, and morally
correct, when they make business decisions. Advertisers are traditionally use techniques to which children
and adolescents are more susceptible, such as product placement in TV shows, tie in between movies and
fast food restaurants, to mention a [Link] there exist many marketing evils that lure people to buy
even when not required.
Case III Star Airways
1. What is likely to be the decision process in case of choosing an airline?
Buyer decision processes are the decesion making processes undertaken by consumers in regard
to a potential market transaction before, during, and after the purchase of a product or service.
More generally, decision making is the cognitive process of selecting a course of action from
among multiple alternatives. Decision making is said to be a psychological construct.
This means that although we can never "see" a decision, we can infer from observable behaviour
that a decision has been made. Therefore we conclude that a psychological event that we call
"decision making" has occurred. It is a construction that imputes commitment to action. That is,
based on observable actions, we assume that people have made a commitment to effect the
action. In general there are three ways of analysing consumer buying decisions. They are: *
Economic models - These models are largely quantitative and are based on the assumptions of
rationality and near perfect [Link] consumer is seen to maximize their utility *
Psychological models - These models concentrate on psychological and cognitive processes such
as motivation and need recognition.
They are qualitative rather than quantitative and build on sociological factors like cultural
influences and family influences. * Consumer behaviour models - These are practical models
used by marketers. They typically blend both economic and psychological models. Consumer
decision making is best summarised in the following diagramProblem recognition: The need for
new airlines Consumers of India received a problem with the product that is offered by other
similar airlines. The consumer choose product because of their quality and service. Information
Search: Surfs the internet to learn about airlines. View TV ad, hear from family members or
friends.
May read certain magazine when at home or outside Evaluation of Alternative and selection
compares several airlines in terms of reputation and available features, Price point and discount
offered free [Link] decision: Choose on airline it has a feature that really appeals to him
and buys it Purchase Behavior dissonance and complex evaluation.
2. Would this plan suggested by the vice president help in convincing the customers to use Star
Airways? Give your reasons. Consumer decision making process is a list of steps that are carried
out by consumers concerning to a potential market transaction, before, during and after the
purchase of a product or service. The process includes identifying the problem, collecting
information, evaluating the alternatives, making the purchase decision and evaluating post
[Link] search when a consumer discovers a problem or a need, he or she is likely
to search for more information on how to solve it.
The information search stage involves gathering information from various sources in order to
make a better-informed decision, it helps clarifies the options open to the consumer which may
involve internal search Understanding customer needs is the keystone to Star Airways success.
The most successful companies understand the value of their customers as they measure success
through the amount of customers they serve each [Link] customer base is a goal and a
challenge that every company must face. Listening to customers and researching the market will
provide a company with opportunities to become an industry leader. Finding cost effective ways
to meet customer demands are at the root of the challenge. Star Airways must face this challenge
head-on while keeping the customer in the forefront of any action the company takes. They must
develop products that will appeal to customers and draw in new business.
This problem solution will discuss opportunities and well as analyze an optimal [Link] will assist
Star Airways in achieving their goals. The variety of successful strategies in use today was in full display
at the ATW Winning Strategies conference in Washington, where some of the airline industry's keenest
minds shared their wisdom. Dr. Adam Pilarski, senior VP at consultancy Avitas, opened the conference
with a controversial statement, "the myth of overcapacity is an urban legend," pointing out that
historically high load factors should push fares up. "If airlines don't make money when they have the
highest load factors ever, there is something wrong with their business model. He implied that airline
managers over think their strategies and fail to follow what he called "Adam's Rule: Revenue greater than
cost equals good.
" The first thing to do is "Don't be stupid," he said, adding a list of "stupid" strategies: Don't
insult customers. No extreme yield management. No bad airline names. No adversary relations
with employees. Do not have stupid business plans. "Please remember you are in a service
industry," he said, and try to avoid what former Continental CEO Gordon Bethune referred to as
"sky nazi" cabin [Link] criticized "nickel-and-dime" attitudes toward cutting amenities,
scoffing at airlines' publicized moves to remove olives and pillows.
You must cut costs in ways that make sense, related to productivity. " Cost control "has to fit the
business model, and must be related to productivity. " The plan suggested by the VP Marketing,
Anil Saxena, felt that the company needed to advertise its dedication to quality and rebuild an
image of being discussions with the advertising agency to launch a campaign in the near
[Link]: Convincing the Consumer when a company wants their product to sell to
consumers, they give them a reason why their product is better than others. Advertising sells to
consumers wants not just to their needs. People need a car but want a Cadillac. They need
clothes, but they want Ralph-Lauren.
When most people flip though ads the go fairly fast, therefore it must grab their attention. A
good ad allows the reader to instantly recognize the concept being communicated. It sends a
simple and easy message to the reader of the benefits they will get if they use their
[Link], cigarette, and alcohol ads in the mid 1900's persuade the reader that their products
provide a beneficial and pleasurable experience.
Case IV Mouse-Rid 1. Has Shobha identified the best target market for Mouse-Rid? Why or why
not? Shobha has targeted women for the product. She feels that women are the best group to
target because they don’t like the mess or the risks created by traditional mouse traps.
This is a good marketing segment to start off with but there are a couple of things that Shobha
could have improved [Link] off, she should have probably segmented women into a couple
different groups. In today’s world all women don’t’ stay at home and take care of kids. In fact
the population of women that do that is rapidly shrinking and being replaced by independent
professionals. In effect, by targeting women that stay at home, Shobha is targeting a shrinking
market. She could probably segment women into a couple different categories. For example:
working women, single women, house wives, etc.
There are also other markets which Shobha could [Link] other market segments that hold
large potential for the Trap-Ease are market like environmentalist, animal lovers, corporate
business and families. The Trap-Ease mouse trap is re-useable and therefore creates less of a
strain on the environment which would make it very attractive things for environmentalists and
people who care about the earth. The environmentalist market is also growing as people became
more aware of global warming and other problems such as deforestation. Animal lovers would
love the Trap-Ease mouse trap because it doesn’t require poison or pose the risk of snapping
closed on a paw or tongue of a [Link] Business would probably like the Trap-Ease mouse
trap because of its high qualitymore futuristic image and the fact that it would create as much of
a mess. They wouldprobably be less hesitant to have them sitting around the office.
Families with kidsshould be the primary market segment of Trap-Ease seeing as it will probably
be their largest. Mouse traps and poison pose a very large risk to infants and toddlers and
caringmothers and fathers would probably happily buy a product which would better protecttheir
[Link] seems that the Trap-Ease mouse trap has positioned itself in the market as being a
veryinnovative and well engineered product. It has done this by winning awards from tradeshows
and magazines. If it is better able to connect these features of the mouse traps withthe needs and
wants of their target consumers then they should be able to generate alarger demand. They could
also try to change it’s position a little bit. Trap-Ease could also position the product as causing
less waist because it is re-useable o rthey could lower it’s cost and make it more affordable.
By making it “the mostaffordable, innovative mouse trap” on the market they could probably
gain some moredemand. Another way in which they could position their product would be by
having an incredibly good customer service team that could deliver services to their customers
thatwere having problems using the product. By having a good customer service team theycould
build better relationships with their customers and increase their customer equity The marketing
mix of a company consists of the four P’s: Product, Price, Place [Link] Trap-
Ease only has one product, their mouse trap. They probably could create a couple different
versions of their mouse trap in order to offer more variety. The higher price of their mouse trap
seems to be consistent with a quality differentiationstrategy but they probably could offer a wider
range of prices on the different models oftheir trap if they chose to widen their product range.
Right now they are trying todistribute their product through stores like Kmart and Safeway.
A really good market tohit would probably be the [Link] on in the internet are often
times into quality,ease of use, and innovativeness and don’t mind spending a little more money
to get whatthey want. It is also a high profit market because it reduces transportation costs and
thereare no middle man costs. The promotion of the Trap-Ease mouse trap seems to be one
oftheir largest problems. They should promote over the internet for certain on sites thatthey think
their target market will be visiting and they should also think about putting outads on TV. In this
changing high tech environment magazine ads aren’t enough [Link]-Ease America’s
competition is any company that creates mouse traps.
They face amarket in which large volume of low quality low cost mouse traps are sold. There
arealso poisons that are sold which are a danger to pets and animals as well as the mice theyare
supposed to kill. There are also other versions of live catch mouse traps out there. An example of
one of Trap-Ease’s competition is d-CON who offers both baits and traps. They actually also
offer a version of a no touch mouse trap in which you don’t have totouch the mouse after you
have trapped [Link] are selling this for 150 which is higher then the suggested retail price for the
Trap-Ease mouse trap which is 1:0 six times more expensive. This would suggest that Trap-Ease
has priced lower then some of its competitors which will give it apricing advantage.
Companies such as Havahart offer traps which humanely catcheverything from mice to voles and
shrews and are competition for the humane factors ofthe Trap-Ease trap. Other competitors
include: Victor, JT Eaton and Riddex. The first thing I would do to change Trap-Ease’s
marketing strategy would be to increasethe amount of people in their marketing [Link]
Martha was probably trying tokeep down costs by not hiring anyone for her marketing team she
made one importantmistake. One of the most important things when coming out with a new
product is themarketing because until you’ve communicated the benefits of your product to the
consumer there will not be sufficient demand for it. Her entry into the market was toosmall scale
and chances are that with such an innovative product that the company willdo better in the long
run with a larger scale entry. She should have asked for a largerbudget and hired more people for
the marketing team.
She should have then put muchmore work into the Analysis of her target markets and perhaps
expanded her scope oftarget markets while increasing the segmentation. This would allow her to
betterdifferentiate her product. I would put in operating controls and strategic controls in order to
monitor the marketingteam’s progress and make sure that what they are doing is consistent with
the company’sgoals and strategy. These controls would very important for gathering the
informationthat would form the strategies in the coming [Link] would also probably help to do
amarket audit at some point during the first year just to make sure that things are
runningsmoothly and it shouldn’t cost that much to do one at such an early stage in thecompanies
development because of the smaller volume of papers to audit. Summary Targeting: The
targeting should have been done within a broader demographic area. Slums, warehouses, go
downs, docks, kirana shops, retail stores, restaurant, canteens and cold storages must be targeted
for potential customers.
The segmenting must avail wholesalers and the intermediaries too part from the retailers.
Marketing channels like Toll-free numbers, newspaper, television, radio and mobile marketing
must be used effectively to target MEN. Pest control companies must be primarily targeted and a
joint venture can be planned if necessary. We should target to environmentalists, animal lovers
and corporate business. 2. Does Shobha have enough needed data on consumer behavior? What
type of consumer research should Shobha conduct? Shobha have no enough needed data on
consumer behaviour. She should adopt the following data collection methods • DATA
COLLECTION METHODS DESK RESEARCH OR SECONDARY DATA “Secondary data
consists of information that already exists somewhere, having been collected for another
purpose”.
In other words, secondary data are those which have been collected by someone else and which
have already been passed through statistical process, there are two sources of this data: Internal
sources - this is data which is available within the company, although companies do not make
full enough use of the information that is routinely collected. External sources - this is data
which has been published for commercial reasons.A key source of secondary data is the library
service and most good libraries have a wide range of sources. Some government data is available
free, other secondary data can be very expensive. It is important in a research project to know
what data is available since this will guide the structure and format of the fieldwork in the
primary data collection stage. It is possible that secondary data sources can provide the complete
answer to the problem under scrutiny. The least it will do is save time and money in directing the
scope of the field work.
It can also influence the choice of data collection methods used in the field ork. Primary Data -
Kotler and Armstrong say that “primary data consists of information collected for the specific
purpose at hand”. In other words, primary data are those, which are collected afresh and for first
time and thus happen to be original in character. Once the desk research is complete the
researcher will have a much clearer idea of: • The up-to-date and relevant data • What data still
needs to be collected to find a solution to the problem under scrutiny. • To achieve the data and
information the research teams need to answer certain questions: What is it necessary to know?
Who will have the information which is sought? What is the best method (quick and efficient) to
use to collect this data? • It is important to streamline the answers to these questions to avoid
collecting a mass of irrelevant data by inappropriate or inefficient methods. The two types of
data are: Quantitative Data - As the term implies this is data which is expressed in numbers.
Quantitative data is quite easy to collect, and a large amount of reliable and valid data can be
collected largely by questionnaire in quite a short period of time.
It is a fairly formal [Link] data arises from what is termed “closed questions” because the
respondent is restricted in the choice of answer the respondent can give. Qualitative data -
Qualitative data is obtained from group discussions or in-depth interviews and its findings are
based on content rather than numeric analysis. Qualitative data is said to be much more
subjective than its counterpart. Questions are open-ended and can lead to a free ranging and in-
depth discussion on a specific point which provides a variety of rich data. There are no numbers
or digits in this data and it is not subject to statistical [Link] OF PRIMARY
DATA COLLECTION 1) OBSERVATION : Observation becomes a scientific tool and the
method of data collection for the researcher when it serves a formulated research purpose is
systematically planned and recorded and is subjected to checks and controls on validity and
reliability.
Under the observation method the information is sought by way of investigators own direct
observation without asking from respondent. 2) SURVEYS: Surveys are concerned with
describing, recording, analyzing and interpreting conditions that exist or [Link] researcher
does not manipulate the variable or arrange for events to happen Surveys are only concerned
with conditions or relationships that exist, opinions that are held, processes that are going on,
effects that are evident or trends that are developing. They are primarily concerned with present
but at times do consider past events and influences as they relate to current conditions. 3)
Experiment: Experiment may be conducted in lab or in the field. The researcher can test the
relative sales appeals for package, designs, price, promotional offers and copy themes etc. , by
designing suitable experiments to identify cause and effect.
The first thing I would do to change is marketing strategy would be to increasethe amount of
people in their marketing team. Although Shobha was probably trying to keep down costs by not
hiring anyone for her marketing team she made one important mistake. One of the most
important things when coming out with a new product is the marketing because until you’ve
communicated the benefits of your product to the consumer there will not be sufficient demand
for it. Her entry into the market was too small scale and chances are that with such an innovative
product that the company will do better in the long run with a larger scale [Link] should have
asked for a larger budget and hired more people for the marketing team. She should have then
put much more work into the Analysis of her target markets and perhaps expanded her scope of
target markets while increasing the segmentation. This would allow her to better differentiate her
product.
I would put in operating controls and strategic controls in order to monitor the marketing team’s
progress and make sure that what they are doing is consistent with the company’s goals and
strategy. These controls would very important for gathering the information that would form the
strategies in the coming [Link] would also probably help to do amarket audit at some point
during the first year just to make sure that things are runningsmoothly and it shouldn’t cost that
much to do one at such an early stage in thecompanies development because of the smaller
volume of papers to audit. 3. What type of advertising can influence consumers for this type of
product? . The low cost of posters and handbills encouraged a numberof publishers to
experiment with other methods. Method were useful fo rinforming and reminding and reminding,
they could not do the whole promotional job.
Theywere used only to reach each consumer personally. The merchant still used personal
persuasiononce the customers were attracted to his store. The invention of hand press increased
the potentialities of advertising. times, posters had made their appearance, and assumed the
function of fostering demand for the product. CASE VI Impact of Retail Promotions on
Consumers 1 Why would some consumers have high-involvement levels in learning about this
sales promotion? A good definition of sales promotion would be as follows: “An activity
designed to boost the sales of a product or [Link] may include an advertising campaign,
increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging
demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price
reductions, door-to-door calling, telemarketing, personal letters on other methods”. More than
any other element of the promotional mix, sales promotion is about “action”.
It is about stimulating customers to buy a product. It is not designed to be informative – a role
which advertising is much better suited to. Sales promotion is commonly referred to as “Below
the Line” [Link] promotion can be directed at: • The ultimate consumer (a “pull
strategy” encouraging purchase) • The distribution channel (a “push strategy” encouraging the
channels to stock the product). This is usually known as “selling into the trade” Some customers
show high level of involvement in sales promotion is to know about the features product,
competitor’s product which replace the same product, price and discount offered for the product.
Additional kit or benefit for the product, and to know what the new arrivals in the market are.
Customers will also learn about he stores and its goodwill by such type of sales promotions.
Is a level of 75 per cent comprehension realistic among those who become aware of an ad? Why
or why not? Results of the study showed that ad exposure was 75 per cent and ad awareness level
was 68 per cent and was considered as high. Only 43 percent respondents exposed to and aware
of the ad copy could accurately recall important details, such as the name of the store promoting
the retail sale. Just 43 per cent correct interpretation was considered as low. Of those who could
accurately interpret the ad copy, 32 per cent said they intended to respond by purchasing the
advertised· products ' and 68per cent sad they had no intention to [Link] yields an overall
intention to buy of 7 per cent. The largest area of lost opportunity was due to those who did not
accurately interpret the ad copy. The post-promotion survey indicated that only 4.
2 per cent of the target market customers made purchases of the promoted products during the
promotion period. In terms of how the buyers learned of the promotion, 46 per cent mentioned
newspaper A (Hindi), 27 per cent newspaper B (Hindi), 8 per cent newspaper (English), and 15
per cent learned about sale through word-of mouth communication. Do you think such
promotions are likely to influence the quality image of the retail store? Explain. Basically,
promotion is first introduced in the 4Ps of marketing. The four Ps represents the marketing mix
(Product, Price, Place ; Promotion) and the promotional mix is the important term used to
explain the set of tools of the business. This is applied to achieve benefit of its products and
services from its consumer and the followings are (Advertising, Public relation, Direct
Marketing, Personal selling and Sales promotion) On the other hand consumer behaviour is
another important aspect in the retail business [Link] are not always normal/simple
buyer.
There are many aspects involved in buying decision process. They hold strategic shopping
manner at the time of buying a product or services from a company. The main aim and objective
of this research is such promotions are likey to influence the qulity immage of the retials store.
Such Sales promotion has a great impact and influence on consumer buying behaviour in the
retails stores – based on Tesco retail store. Such sales promotion role has a great impact on
consumer buying [Link] has a great and strong significance role on retail industry sector.
Basically sales promotions strategies used as a short-term technique tool which principal
objective is to influence the ultimate buyers to try a brand or change their mind to another brand.
Sales promotion represent to discount a brand, it can be directly or indirectly, directly price reduction or
indirectly through coupons ; premiums. But when the retail stores withdraw the sales promotion, then the
normal price should have had a inferior value and the result of this should have had a negative impact on
consumer buying [Link] study focuses the significant attitude, perception of the consumer
behaviour and it reflects the consumer loyalty on the basis of customer relationship management. Here
the findings and analysis have discovered the vital reason that impacts positively on consumer buying
behaviour and in the sales volume
