IMPACT OF PROMOTION ON CONSUMER BEHAVIOR
Marketing strategies impact of daily lives of the consumer significantly:
1. They act as the source of information for new products/services available in the market.
2. It influences the way they think and perceives, their beliefs, thoughts, attitudes and their buying decisions.
On an average, a consumer is exposed to several promotional tactis every day. The television alone accounts for 6 hours of commercial advertisements every week (Lamb et al). In addition to the television, consumers also gain information from other forms of mass media like magazines, newspapers, radio, etc.
IMPACT OF MARKETING STRATEGIES ON CONSUMER BEHAVIOR BY GOVT AND KLEPPER
The impact of marketing strategies on consumer behaviour is explained by Govt and Klepper (1982) as a process life cycle consisting of four stages:
The description you provided outlines the four stages of the product life cycle, a concept widely used in marketing and product management. Let’s delve into each stage:
INTRODUCTION:
Objective: In this stage, the organization introduces a new product to the market.
Characteristics: Sales start to grow as consumers become aware of the product. Marketing efforts focus on creating awareness and promoting the unique features and benefits of the product.
Challenges: High costs associated with product development and marketing. Profits may be low due to initial investments.
GROWTH:
Objective: The product experiences a rapid increase in sales.
Characteristics: Consumer acceptance grows, and the product gains market share. Marketing efforts shift towards building brand loyalty and expanding the customer base. Competitors may enter the market.
Challenges: Increased competition and the need for product differentiation. Managing increased demand and potential supply chain challenges.
MATURITY:
Objective: The product reaches a stable phase with consistent sales.
Characteristics: Sales reach their peak and stabilize. Market saturation occurs, and competition intensifies. Marketing strategies focus on maintaining market share, cost efficiency, and customer retention.
Challenges: Saturated market leads to increased competition, price wars, and the need for constant innovation to stay relevant.
DECLINE:
Objective: Sales begin to decline as the product faces challenges from newer alternatives.
Characteristics: Market conditions change, and the product becomes less attractive to consumers. Factors such as technological advancements, changing consumer preferences, or the introduction of substitute products contribute to the decline.
Challenges: Declining profits, potential need for product repositioning or discontinuation. Companies may choose to divest or revitalize the product through rebranding or new features.
Understanding and effectively managing each stage of the product life cycle is crucial for businesses. It helps them allocate resources appropriately, adjust marketing strategies, and plan for the future development or replacement of the product. Successful companies often have a portfolio of products at different stages of the life cycle to ensure sustained growth and profitability.
MODIFICATION OF MARKETING STRATEGIES
The marketing strategies of many organizations can be modified by simply understanding issues such as:
- The psychologies of how consumer think, feel, reason, and select between different options of brands and products.
- The psychology of how the consumer is influenced by his or her environment which include he culture, media to which the individual is exposed, family etc.
- The behaviour of consumers while shopping or making other marketing decisions.
- Restrictions in consumer knowledge or information processing abilities have the ability to inflicted decision and therefore the marketing result.
- How consumers’ motivation and decision policies change with different products that differ in their level of importance or interest that they hold for the consumer.
- How marketers can adapt to these psychologies and improve their marketing campaigns and marketing strategies which may create more impact in the minds of the consumer.
