Consumer Behaviour

Written Assignment
Submitted to: Prof. Ravi Kowadkar Submitted on: 12th April, 2011

Submitted by: Hussain Tiewala Application No. 7333 FSLE 4

Hussain Tiewala App No. 7333 1) Most human needs are dormant much of the time. What factors cause their arousal? Find two
examples of ads that are designed to arouse latent consumer needs and discuss their effectiveness

Latent and Manifest Motives

Latent motives are those that are either unknown to the customer or ones that the customers are reluctant to acknowledge. Researching latent motives often requires use of projective techniques.

Emotion arousal as a product benefit Emotion reduction as a product benefit Emotion in advertising Emotional Arousal = More Processing of Ad Emotional Ads May be Remembered Better Positive Emotion the Brand = Positive Attitude Toward the Ad = Positive Attitude Toward

Page | 1

Hussain Tiewala App No. 7333 Emotions are often Classified Along the Dimensions of Pleasure, Arousal Dominance.

The two advertisements which I have selected which arouse latent emotions are:

This is an advertisement for a motor vehicle which is called the Toyota 4 Runner. In the advertisement it says that it is the smartest and most advanced SUV cars reach the top of market and currently the Toyota is at number one. It tells the consumer that this car is the best combination of power and luxury and because it is smart and advanced the customer would also be smart and advanced to purchase it.

Page | 2

Hussain Tiewala App No. 7333 The advertisement also talks about the various features of the car and concludes by saying that it will satisfy all the consumers needs giving the consumer the impression that it is almost customised to his personal requirements. The second advertisement I have selected Is the ad for Addiction perfumes starring Neil Nitin Mukesh.

Page | 3

Hussain Tiewala App No. 7333

This is a television ad where he is shown walking down the street and suddenly all the women around him are attracted to his fragrance and find him irresistible. This ad gives its viewers the impression that the product is a sexy and appealing fragrance to the opposite sex. It promts its viewers to believe that because this fragrance is so appealing to women when the actor uses it, it will have the same effect when used by other people as well. There is also the effective use of the ambassador who is depicted as a young and good looking guy who women would be attracted to, thus telling the audience that if they want to look like him, they have to start using the product.
2) Some marketers consider benefit segmentation as the segmentation approach most consistent with the marketing concept. Do you agree or disagree with this view? Why?

A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be Page | 4

Hussain Tiewala App No. 7333 viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Examples: Gender Price Interests Benefit Segmentation is the method of determining a target audience for a particular product in terms of those people who want the benefits the product offers. If the product is a fast sports car, for example, the target audience will be the segment of the population that wants the benefits of a fast sports car. According to me this would be the ideal form of segmentation which a marketer would consider most consistent. This form of segmentation can include a wide variety of consumers who may have different demographic and psychographic properties. It helps the company narrow down it base target audience and helps position the products accordingly as per the requirements of the segment. The advantage of this type of segmentation is that the marketer can focus on the benefits or perceived benefits of its products and accordingly appeal to all those potential consumers who are attracted to the product attributes. One potential pitfall to this approach is that consumers do not always know or cannot always identify a single benefit that influences them to make a purchase decision. Many marketers use a combination of bases that seem most appropriate when segmenting a market. Using a single variable is undoubtedly easier, but it often turns out to be less precise. There are different audiences for different perceived benefits. As an example: Dentifrice or toothpaste offers three distinct benefits, each of which will appeal to a different audience segment. One benefit relates to a tooth decay deterrent; the second, to a tooth whitener; and the third, to a mouth freshener. By segmenting the audience according to these benefits through the copywriting, the advertiser can position the product in three different markets to achieve maximum advertising effectiveness. 3) You are a marketing vice president of a large soft drink company. Your companys ad agency
is in the process of negotiating a contract to employ a female rock singer to promote your product. Discuss the reference group factors that you would raise, before the celebrity is hired.
A reference group is a group with whom an individual identifies to the point where the group dictates a standard of behavior. If I were in the process of employing a female rock singer to promote my product the factors that I would like raise would be: -

Looking at the perceived and current attributes of the product would it be suitable to have a famous celebrity endorse my product.

Page | 5

Hussain Tiewala App No. 7333

-

Based on the segmentation of my target audience what type of personality would I want to endorse my product. Who would be the celebrity whom I would employ and why would he be appropriate to promote the product. What is the celebrities brand image and will those attributes benefit my product. Does the perceived attributes associated with the brand ambassador match the attribute of my product? For eg if I was promoting a sportswear brand like adidas, I would prefer to use a personality like Sachin Tendulkar, who is known for his performance and ability, rather that promote it with Shahrukh Khan who would not suit the product characteristics. Do the characteristics of my target audience match with those of the brand ambassador. What are the current trends of the target market and does my ambassador match with those. Who are the influencers and opinion leaders and do they share the same opinions as the marketers. Is the current selected ambassador a right fit to promote the product.

4) For each of the following products identify the segmentation base that you consider best for
targeting consumers a) coffee b) Chinese soups c) Home exercise equipment d) low fat yogurt. Explain your choices.

Determining how to segment a market is one of the most important questions a marketer must face. Creative and effective market segmentation can lead to the development of popular new products, but unsuccessful segmentation can cost a great deal of money and still not yield the desired results. There are three main types of segmentation bases for businesses to consider descriptive bases, behavioral bases, and benefit baseseach of which breaks down into numerous potential customer traits. Descriptive bases for market segmentation include a variety of factors that describe the demographic and geographic situation of the customers in a market. They are the most commonly used segmentation bases because they are easy to measure, and because they often serve as strong indicators of consumer needs and preferences. Some of the demographic variables that are used as descriptive bases in market segmentation might include age, gender, religion, income, and family size, while some of the geographic variables might include region of the country, climate, and population of the surrounding area. Behavioral bases for market segmentation are generally more difficult to measure than descriptive bases, but they are often considered to be more powerful determinants of consumer purchases. They include those underlying factors that help motivate consumers to make certain buying decisions, such as personality, lifestyle, and social class. Behavioral bases also include factors that are directly related to consumer purchases of certain goods, such as their degree of brand loyalty, the rate at which they use the product and need to replace it, and their readiness to buy at a particular time. Businesses that segment a market based on benefits hope to identify the primary benefit that consumers seek in buying a certain product, and then supply a product that provides that Page | 6

Hussain Tiewala App No. 7333 benefit. This segmentation approach is based upon the idea that market segments exist primarily because consumers seek different benefits from products, rather than because of various other differences between consumers. The segmentation strategy I would use for the products mentioned above are: a) Coffee- the segmentation strategy I would use for coffee would probably be based on a combination of behavioural and benefit types of segmentation. Based on my products characteristics, I would determine who the ideal target audience would be. Coffee is mostly consumed by the working class thus I would have my segmentation based upon attributes which are common to these people. I would also try and promote certain characteristics such as flavour and taste and accordingly try to create niche segments based upon consumer response. Coffee is also considered as a reason for social interactions and can also be prepared in various ways such as cappuccino, lattes, etc. thus I would segment the markets of each and promote the products accordingly. b) Chinese Soup- the strategy I would use for Chinese soups would be on a descriptive basis. I would segment my Target audience based on age, occupation and taste specific consumers. Chinese soups are normally of the heat and eat variety and I would promote it mainly to housewives and working men and women. These soups are easy and quick to make and can be prepared as a tasty meal in quick time for children and adults. Due to the ease of preparation it could be marketed to working people who do not have time to prepare their own meals. It could also be marketed to elderly people. I would also have geographic segmentation as areas which have colder climatic conditions would have a higher consumption of soups. c) Home exercise equipment- the segmentation strategy I would use for home exercise equipment would be a mix of descriptive and benefit based strategies. Home exercise equipment can be used by all those people who are health conscious and do not have the time or the means to join a gym or go outside for a workout. I would mainly focus my marketing on businessmen and women who do not have the time and can stay at home and complete their work out. There are also people who might be obese and wanting to lose weight, who are reluctant to leave the house and thus could find this equipment useful. On a benefit basis I would also include the elderly as they would prefer to have some equipment at home so that they can remain fit even if they are not able to leave the house. d) Low fat yogurt- the segmentation strategy I would use is behavioural segmentation as this product is mainly based on personal attributes of people. It would be focused mainly on health conscious people who do not want to consume fatty foods and still have a nice desert which they can enjoy. This could be targeted mainly to females and could be offered in a wide assortment of flavours to attract women between the ages of 16-45. This could also be focussed upon obese people as an alternative to lose weight.

Page | 7