1

Assignment

on

The theories of Consumer Behavior

Course Name: Consumer Behavior

Course Code: MKT306

Submitted to: Submitted by:

Md. Rakibul Hassan Group: ‘PLATFORM’

Assistant Professor Session: 2016-17

Department of Marketing Department of Marketing

Jahangirnagar University Jahangirnagar University

Savar, Dhaka – 1342 Savar, Dhaka – 1342

Submission Date: 15 February. 2021

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Group profile

PLATFORM

Name ID Theory

Avijit Chakraborty 1733 BCG matrix, Cross cultural

marketing,

Sagor Ahmed 1734 Maslow's Hierarchy of Needs

Salah Uddin 1745 Ansoff strategy. Blue ocean

strategy

Shihab Shahriar 1746 Psychoanalytic Theory,

Reasoned Action Theory

Mehedy Hasan 1747 Freudian theory, Porter’s five

forces of competitive analysis

Bindu Das 1748 Friendship groups

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Table of contents

Introduction 4

Theory 1: Cross Cultural Marketing 5-6

Theory 2: BCG Matrix 6-9

Theory 3: Ansoff’s Matrix 9-11

Theory 4: Blue ocean theory 11-12

Theory 5: Friendship groups 12

Theory 6: Freudian theory 13-14

Theory 7: Porter’s Five Forces of Competitive Position Analysis 14-16

Theory 8: Maslow's Hierarchy of Needs 16-18

Theory 9; Psychoanalytic Theory 19-20

Theory 10: Reasoned Action Theory 20-22

Conclusion 22

Reference 23
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Introduction: This report consists of narrative and several theories based on marketing
perspective. It contains ten different theories along with real life implications. We have tried
to figure out how they work, which one is perfect on business and how management achieve
numerous objectives. The success of any business depends upon the market targeted and since
the choice and usage differs from persons to persons, we try to assemble market and people.
Usages of theories focused on region, culture, life styles, and core inheritance. The purpose of
the assignment is to identify consumers, goods, social media, technology and marketing
implications under these concepts.
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Theory 1: Cross Cultural Marketing

Cross Cultural Marketing: Cross Cultural Marketing is a research that takes place across the
cultural groups or nations. Cross cultural marketing has been done with two or more different
cultures. Due to Globalization and International marketing, Cross Cultural Marketing has
become very important. According to International view, to determine the degrees of adaption,
competitive advantage and attractiveness of the markets.

Cross Cultural Marketing includes many things such as

✓ Cross cultural consumer behavior.

✓ Cross cultural management practice.

✓ Promotional strategies.

✓ Product development.

✓ Distribution

✓ Marketing research method.

Uses of cross culture in marketing: One of the best ways to advertise is to successfully reach
across culture.

Understanding cultural norms: Cultural norms indicates the standard we live by. Cultural
norms are learned and reinforced from friends, society, and environment. Cross cultural helps
in many ways to understand the use of a certain country’s market. Advertising is needed to
succeed in global culture. But if we cannot cope with cultural norms of a country, the marketing
techniques of an organization goes in vain. So, it is essential to understand norms.

Knowing market: This is where we can use many experimentation and tools. By analyzing
people, culture, norms, we have to find the idea of knowing market. Knowing market helps to
identify potential customers. Before making final business decision, we have to know the
market. It helps us to sustain in the market.

Considering language barriers: The inability to converse in a language that is known by both
the sender and receiver is the greatest barrier to effective communication. When a person uses
inappropriate words while conversing or writing, it can lead to misunderstandings. The use of
poor words indicates oral communication gap. We have to realize the language barriers in
building business in foreign country. In order to start marketing campaign in another country,
cross cultural marketing helps us to understand the cultures.

Knowing what consumer thinks and value: Cross cultural marketing helps to identify
customers thoughts.

✓ Doing survey on consumer.

✓ Doing a discovery call.

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✓ Using social media.

Examples of cross-cultural marketing:

Coca-Cola:

When Coca Cola entered the China market, they named their product something that when
pronounced sounded like “Coca-Cola”. The only problem was that the characters used meant
“Bite the Wax Tadpole”. When they learned of their mistake, they later changed it to a set of
characters that mean “Happiness in the mouth”.

Fiat

Fiat released an ad in Italy in which actor Richard Gere drives a Lanica Delta from Hollywood
to Tibet. Gere is hated in China for being an outspoken supporter of the Dalai Lama – there
was a huge online uproar on Chinese message boards commenting that they would never buy
a Fiat car.

Parker pen

When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to have read “It
won’t leak in your pocket and embarrass you”. Instead, the company thought that the word
“embarazar” (to impregnate) meant to embarrass, so the ad actually read: “It won’t leak in your
pocket and make you pregnant”. This is a perfect example of why companies should use a
professional and complete translation agency to verify the correct translation of the line in
question to avoid such embarrassment!

KFC

It hasn’t just happened once. In Chinese the Kentucky Fried Chicken slogan ‘finger licking’
good came out as “Eat your fingers off”. When launching in Hong Kong, they used chickens
raised and fed in China. The Chinese feed their chickens fish – so the taste was nowhere near
the same as American KFC. The company had to close the shop and did not open until 10 years
later!!

Pepsi

When Pepsi expanded their market to China they launched with the slogan “Pepsi brings you
back to life”. What they didn’t realize is that the phrase translated to “Pepsi brings your
ancestors back from the grave.” A very messy mistake to make, especially for a brand trying
to build itself on a global level.

Theory 2: BCG Matrix

BCG Matrix: Business models are based on providing products or services that are profitable
now, but they also attempt to identify changes in offerings that will keep the company profitable
in the future. A BCG matrix helps organization to analyze current and future situations. BCG
matrix is known as Boston Consulting Group Analysis, the Growth Share Matrix, the Boston
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Box and the Product Portfolio Box. To analyze product lines, there are two variables. They are
relative market share and market growth rate. By combining these two variables into a matrix,
a company can plot their business units accordingly and determine where to allocate extra
resources, where to cash and where to divest.

The elements of BCG matrix are given below:

Stars: Stars are business unit with a high market share in a first growing industry. It generates
large amount of cash because of their high relative market share. It needs large investments to
fight with competitors. Successful companies should always have stars in their portfolio. Stars
are very good for corporate image.

Question Marks: Startup’s businesses usually start off as question marks. Question marks
means businesses operating with a low market share in a high growth market. They have the
potential to gain market share and become market leaders eventually. If Question Marks do not
succeed in becoming a market leader, they might degenerate into Dogs.

Cash Cows: After years of operating in the industry, market growth might decline, and
revenues stagnate. At this moment, Stars are likely to transform into cash cows. Because they
still have a large relative market share in a mature market. Cash cows therefore typically
generate cash in excess of the amount of cash needed to maintain the business.

Dogs: Dogs are considered to be business units in a slow-growing or declining market with a
small relative market share. These units typically break even (they neither create nor consume
a large amount of cash) and generate barely enough cash to maintain the market share of the
business. These companies are therefore not as interesting to investors as they are. Since there
is still money involved in these business units.
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BCG Matrix and the Product Life Cycle

Uses of BCG Matrix in business: The BCG matrix can be useful to companies if applied using
the following general steps.

Choosing the unit: Strategic Business Units, individual brands, product lines or the company
as a whole are all areas that can be analyzed using the BCG matrix. The chosen unit drives the
full analysis and key definitions. The market, industry, competitors and position will all be
based on the unit chosen.

Defining the market: Following the selection of the unit or area to be analyzed, the most
important stage for the rest of the matrix is the market definition. The incorrectly defined
market will result in an incorrect classification of the unit.

Calculating relative market share: At this stage, the relative market share of the chosen unit
must be calculated. This can be done in terms of revenue or share of a marker. The formula
used here is the division of the market share of the chosen brand or revenues by the market
share or revenues of the largest competitor in the industry. The result was plotted on the x-axis.

Calculating market growth rate: Online industry reports can be used to find the growth rate
for the industry. If this is not possible, it can be estimated by looking at the average revenue
growth of the industry's leading firms. This is a percentage of the measurement and is plotted
on the y-axis.
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Examples of BCG Matrix:

Fanta

a Coca-Cola product is one such example where the business units can be seen as a Question
Mark. As the brand has not been able to gain widespread popularity similar to Coke. Therefore,
the brand is losing its popularity. However, in some areas, it has been able to obtain a generous
sales volume.

Coca-Cola

It is an example of Cash Cows. This product is sold across 200 countries in a mature beverage
industry. The bottling partners in different regions help in making the finished beverages
available to the market. This is how the organization is earning a significant amount of revenues
from its finished products. In a mature industry, it is advisable for a company to keep the sales
volume high as the business unit is comparatively a good source to generate revenue.

Kinley

The bottled water Kinley, a Coca-Cola product, is one such example of Stars. This example is
suitable here because the mineral water industry is still viewed as a gradually growing segment
on an international scale. The rising population would require more bottled water to fulfill the
needs of the people. Due to the rising need for bottled water, the growth opportunities for this
business product in the industry has increased. Even though Kinley faces competition from
other competitors. Nevertheless, it is essential for the management to understand that the
bottled water brands will remain a source of significant sales in future

Diet Coke

Diet coke, a Coca-Cola product, is on such example of Dogs. It was launched with the motive
to offer consumers relatively healthier beverage option in terms of calories consumed.
However, the brand has not been able to fetch consumers’ interest, which led to declined sales
of this business unit. The soda industry has been matured in recent years; therefore, the growth
prospects for new products are limited now

Theory 3: Ansoff Matrix

Ansoff Matrix:

The Ansoff Matrix, created by the American planning expert Igor Ansoff, is a strategic
planning tool that links an organization’s marketing strategy with its general strategic direction.
It presents four alternative growth strategies in the form of a 2x2 table or matrix. One dimension
of the matrix considers” product” (existing and new) and the other dimension consider”
markets” (existing and new).
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Uses of an Ansoff Matrix:

An Ansoff matrix is a coordination mechanism that lets you see the potential development
opportunities for the company as part of a broader strategic planning effort. The hard job is to
pick one of the four growth techniques for Ansoff.

Market Penetration – It is often adopted as a strategy when the organization has an existing
product with a known market and needs a growth strategy within that market. This suggests
that the company will have to go out of its way to boost market share in order to expand.

Market Development – In the Ansoff matrix, product production applies to businesses that
have a strong market share in an established market and may also need to launch new products
for expansion. When the company has a strong customer base and understands that the demand
for its current product has reached saturation, product production is needed. The consumer
expansion technique is no longer realistic in this situation.

Product Development – When the company is entering a new market for existing goods, this
technique is used.

Diversification – If the commodity is entirely new and is being launched into a new market,
the diversification approach in the Ansoff matrix applies.

Examples:

Market Penetration – When it was released, Diet Coke was a big success, but it attracted
mostly female customers. It was rejected by men because it looked like more of a feminine
cocktail. A cure from Coca-Cola? Bloke Coke" or rather Coke Zero, which is essentially the
same in terms of taste and benefits, but placed and marketed squarely to capture the male
market share with Diet Coke that they were missing."
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Market Development – Leading footwear firms like Adidas, Nike and Reebok have entered
international markets for expansion. These companies continue to expand their brands across
new global markets.

Product Development – Nissan started to become the first to produce an electric car, with
environmental issues increasing among customers, rising oil prices and a demand for a reliable
automobile. In 2008, the Nissan Leaf was rolled out for public buying. In the electric car
market, Nissan has remained a pioneer.

Diversification – Samsung is an indicator of diversification. It originated as a brokerage firm

and eventually grew into banking, equity and retail. Today, it is mainly known for its division
of electronics. Initially, this group began with one product - a black-and-white TV package. It
entered the telecom market in 1980 developing telephone switchboards, then later into
telephones, fax machines, and mobile phones. In a diversified global range of companies,
including semi-conductors, electronics, cameras, watchmaking, clothing, music services, cloud
storage, and home automation, Samsung now has a commercial footprint.

Theory 4: Blue Ocean Strategy

Blue Ocean Strategy

Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new
market space and create new demand. It is about creating and capturing uncontested market
space, thereby making the competition irrelevant. It is based on the view that market boundaries
and industry structure are not a given and can be reconstructed by the actions and beliefs of
industry players.

Business keys of the Blue Ocean Strategy:

The competition is irrelevant – Taking a Blue Ocean plan means that the aim is not to
outperform the market or be the industry's best. Alternatively, the intention is to redraw market
borders and work within the new setting, rendering the competition intangible.

It’s more than theoretical – During go-to-market executions, some strategic planning
frameworks are based on assumptions that do not always pan out. Blue Ocean Approach, on
the other hand, emerged from a research that took place over 10 years and examined market
achievements and shortcomings in more than 30 sectors. It's focused on proven evidence rather
than theories that are unproven.

Differentiation and low cost can coexist– Consumers don't have to pick between value and
affordability, the Blue Ocean Plan claims. If an enterprise is able to understand what consumers
actually need and then rethink how to deliver that value, it is possible to obtain both
differentiation and low cost. This is called "innovation of value.

Examples:

iTunes – When iTunes hit the market, it addressed the issue of customers illegally streaming
music from the entertainment industry while also tackling the need for downloadable, a la carte
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albums. The Blue Ocean Strategy of iTunes created an entirely new music distribution segment
that encouraged artists to benefit and customers to purchase single tracks relative to whole
albums. iTunes has dominated this market space for years and is largely credited with driving
the growth of digital music.

Nintendo – Nintendo’s product was introduced in 2006 and the cost of development was
minimized. They were in the extreme Red Ocean where the game was ruled by Xbox and
PlayStation. The Wii was a full creation, gaming with a little console. They also launched
portable motion sensor sticks as well. So, Nintendo has offered a number of new advantages
and features in the gaming environment that were not there. They have built a completely new
blue ocean, where elderly people would want to purchase a device for youth, spanning non-
gamers, are their clients. And they're all at a very inexpensive price.

Theory 5: Friendship Groups

Friendship groups: Friends who give companionship, security, opportunities to discuss the
problems as well as give financial and mental supports at critical times. On the other hand,
groups mean two or more people involved to discuss any problems with them. In the other
sense, friendship groups defined as informal groups. They are usually pell-mell and lack
specific authority levels.

Friends influence the consumption pattern of individuals in certain category of products choice
of food habits, drinks, electronic devices etc. The Influence of friendship groups is important
to the marketer. The opinions and preferences of friends greatly influence a consumer while
selecting brands. Marketers of products such as clothing, fine jewelry, watches, snack, foods
beverages etc., have recognized the importance of peer group. So, they frequently depict
friendship situations in their advertisements. Purchase of a commodity, good or service is
guided by a host of factors. Each factor influences a purchase differently. While some stimulate
buying, the other might discourage a consumer. Friend’s pressure is one of those unique pushes
that a rational consumer considers before an actual or a potential purchase of any good or
service. Friend’s pressure rightly puts pressure of the peer or the persons surrounding for any
action, buying being the relevant one in this case. This is the time when teenagers develop deep
friendship among their peers and become permanent during their adolescence. Friend’s
pressure towards persons behavior is said to be a social phenomenon where the members of a
particular society or may not be influence negatively but majority are affected by the
undesirable behavior of those people who resist what others do. Looking to the different group
of factors that influence adolescence in their completion of their academic excellence it is
further hindered by developmental challenges. For instance, adolescents who commit
explanation of substance abuse through engaging with their friends likely to make unhealthy
decisions in their life that could interfere their life goals and make inconsistent choices. And
also, Friend’s pressure is the main indicator of teenagers into engaging drugs because they
begin to adapt this kind of lifestyle among their acquaintances
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Theory 6: Freudian theory

Freudian theory. In Freudian theory, the human mind is structured into two main parts: the
conscious and unconscious mind. ... In addition to these two main components of the mind, the
Freudian theory also divides human personality up into three major components: the id, ego,
and superego.

Aim of Freudian theory:

The fundamental aim is to highlight the implications of Freudian psychoanalytic theory on

managerial behavior. It is of high importance to understand the phenomenology of the human
mind before even consider that management is a skill that can be accurately learned.
Nevertheless, this research represents a modern perspective of the revolutionary and
controversial Freudian theory in order to provide a more suitable understanding of
consciousness and unconscious. Moreover, this interdisciplinary approach suggests the current
relevance of psychoanalysis based on its significant implications on managerial behavior. The
procedural detachment from the economic area is gradually individualized due to exhaustive
theoretical exposure.

A theoretical approach on managerial behavior: Kotler (2000) discussed the issue of

effective organizational arrangements considering that: "Top management is ultimately
accountable for the success of new products" Peter Drucker (1986) suggested that management
is a social function embedded in a culture and embedded in society. Synthetically, management
is the process of recognizing values, achieving organizational objectives and clarifying ideas
based on certain strategies. McFarland (1958) defines management as "a process, by which
managers create, direct, maintain, and maintain"

How it works: The Effective Executive, Drucker suggested certain fundamental practices
regarding business effectiveness that can be and is recommended to be learned,

❖ Managing time

❖ Choosing what to contribute to the organization

❖ Knowing where and how to mobilize strength for best effect

❖ Setting the right priorities

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❖ Knitting all of them together with effective decision-making.

Freudian psychoanalytic theories implications in business: Sigmund Freud (1856-1939)

was the founder of psychoanalysis. Freud provided a revolutionary approach of the human
psyche based on individual (clinical) case studies. His theories were strongly influenced by his
studies and diversified knowledge in medicine Psychoanalysis represents a procedural method
for investigating unconscious mind based on clinical experiences and knowledge obtained
during psychotherapy sessions. The fine boundary between conscious and unconscious
psychological processes is a key element in psychoanalysis. Freudian psychoanalytic theory
allocates significant effort in order to investigate the holes of human personality. Freud argued
that the unconscious continues to influence human behavior and experience. The unconscious
mind includes a conglomerate of feelings, memories, thoughts, emotions which exceeds the
conscious awareness. activity psychical forces are responsible for the distortion of the dream.
Freud (1913) revealed that children sometimes show complex and more obscure dreams.
Ahmed (2012) stated that Freudian psychology is largely based on objects that are guided by
needs, such as hunger, thirst, the avoidance of pain and sex.

Theory 7: Porter’s Five Forces of Competitive Position Analysis

Porter’s Five Forces of Competitive Position Analysis:

Framework/theory

Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E
Porter of Harvard Business School as a simple framework for assessing and evaluating the
competitive strength and position of a business organizationThis theory is based on the concept
that there are five forces that determine the competitive intensity and attractiveness of a market.
Porter’s five forces help to identify where power lies in a business situation. This is useful both
in understanding the strength of an organization’s current competitive position, and the strength
of a position that an organization may look to move into.

Strategic analysts often use Porter’s five forces to understand whether new products or services
are potentially profitable. By understanding where power lies, the theory can also be used to
identify areas of strength, to improve weaknesses and to avoid mistakes.

Porter’s five forces of competitive position analysis

The five forces are:

1. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is
driven by the: number of suppliers of each essential input; uniqueness of their product or
service; relative size and strength of the supplier; and cost of switching from one supplier to
another.

2. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven
by the: number of buyers in the market; importance of each individual buyer to the
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organization; and cost to the buyer of switching from one supplier to another. If a business has
just a few powerful buyers, they are often able to dictate terms.

3. Competitive rivalry. The main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and services, will reduce market
attractiveness.

4. Threat of substitution. Where close substitute products exist in a market, it increases the
likelihood of customers switching to alternatives in response to price increases. This reduces
both the power of suppliers and the attractiveness of the market.

5. Threat of new entry. Profitable markets attract new entrants, which erodes profitability.
Unless incumbents have strong and durable barriers to entry, for example, patents, economies
of scale, capital requirements or government policies, then profitability will decline to a
competitive rate.

Arguably, regulation, taxation and trade policies make government a sixth force for many
industries.

How do integrate Porter’s Five Forces into digital marketing plan?

The principles of Porter’s Five Forces can be transferred into anything, including digital
marketing plan. There are many key aspects of these forces that can help us develop a better
digital marketing strategy. Here are some digital marketing strategies available to our business
that can apply Porter’s Five Forces to in order to maximize plan.

1. Search engine optimization (SEO)

Search engine optimization (SEO) is a great option for our business to maximize their reach.
SEO is the process of boosting website’s ranking to the top of the search results. This is done
through optimizing website and choosing appropriate keywords.

A huge part of SEO is competition. There are many companies that will try to rank for certain
keywords. People will choose the first website that fits their needs best. As Porter’s Five Forces
states, when there is more competition, our company’s power is weakened.

1 So, how can we strengthen our company’s power through SEO?

The best thing we can do to maximize our SEO plan is to analyze our competition. If there are
more companies competing for our keyword, there is a chance that people can choose one of
our competitors.

2. Social media marketing

Our aim is to build up the power of our company by building a strong relationship with our
customers. One of the best ways to do that is through social media. Our platform can be used,
such as Facebook, Twitter, Instagram, or LinkedIn.
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3. Content marketing

Content marketing is one of the best ways to bring in new leads for business. Our can create a
blog, videos, or infographics to entice visitors. The point of content creation is to provide users
with helpful information that they are seeking.

In this case, our are a supplier. Our supply people with helpful information.

Real life example of porter’s law:

Bargaining Power of Starbucks’s Customers/Buyers (Strong Force):

Starbucks Coffee Company experiences the strong force or bargaining power of buyers or
customers. In Porter’s Five Forces analysis model, this force is based on the influence of
individual customers and groups of customers on the international business environment. In
Starbucks Corporation’s case, the following external factors contribute to the strong bargaining
power of customers:

1. Low switching costs (strong force)

2. High substitute availability (strong force)

3. Small size of individual buyers (weak force)

Toyota implication in business world:

In developed countries such as America or other European countries this threat is high for
Toyota because there are a lot of other car manufacturers in these countries who sell their
products with different deals such as now a day Citroen is selling most of their cars with 0
deposit and on no interest basis for up to three years which is a big threat for Toyota in UK.
Because due to the economic crisis the world is facing people are more interested in saving
money

Theory 8: Maslow's Hierarchy of Needs

Maslow's Hierarchy of Needs: Psychologist Abraham Maslow invented a theory of human

motivation based on the aptitude that there is a hierarchy of human needs. There are five levels
of human needs in Maslow's hierarchy of needs. These levels maintain rank in order of
importance from lower to higher level. The theory states that individuals try to satisfy lower-
level needs before higher level needs. This theory explains that when people enable to satisfy
his or her lower level then switch on next level. According to Abraham Maslow, the lowest
Level of unsatisfied needs strongly motivates a person behaviour.
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Physiological needs: According to Maslow Physiological needs are the most basic needs of
human. These basic needs are required to live. Basic needs are food, water, shelter, cloth and
sex. All these are call biogenic needs. Maslow said that physiological needs are dominant when
they are unsatisfied. At first human try to his/ her best to meet up physiological needs. Suppose
a person is very hungry. First aim of this person is to meet his/ her hungry anyway.

Safety and Security Needs: After satisfied physiological needs, individual focus on safety and
security needs. These needs are very important to maintain physical safety, order, routine,
familiarity and control over one's life and environment. Health care services and products are
one the example of safety and security needs. Savings accounts, insurance policies, education
and various vocational training are example of safety and security needs.

Social Needs: When individual satisfy his/ her physiological needs and safety needs. Then
people focus third level of Maslow hierarchy of needs. That is social needs. Social needs are
love, affection, belonging and acceptance.

Esteem Needs: When social needs are satisfied, the fourth level of Maslow hierarchy of needs
become active. Esteem needs are also divided in two types.

1 Inwardly directed needs: A person needs for self-acceptance, self-esteem, success

independence and personal satisfaction are inwardly directed needs.

2 Outwardly directed needs: These needs include needs for prestige, reputation, status and
recognition from others.

Need for Self- Actualization: Once people meet up their needs properly, they are forward next
and fifth level. The self-actualization is fifth level of Maslow hierarchy of needs. The self-
actualization means to an individual desire to fulfil his or her potential. To become everything
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that he or she can become. For example, a group of Scientist do hard to invent Covid 19
vaccine.

Evaluation of Maslow’s Theory: Maslow theory states that higher needs become the driving
force behind human behaviour when lower level of needs are satisfied. Maslow’s hierarchy
has worldwide acceptance in many social sites as it appears properly human behaviour. The
five level of needs generate most individual needs. This theory works with many human needs
and behaviour that shape consumer different product and services. Problem of Maslow theory
is that it is totally perception not tested by statistics materials.

Marketing Application of Maslow’s Theory: Every theory has some problem. Although it
has problem, it has been highly useful for marketer to create needs and market. Maslow’s
theory is used all over the world for market segmentation, the development of advertising and
other marketing communication.

Application five level in Marketing

1 Physiological need. Physiological needs are basic need of human beings. Basic needs are
food, water, cloth and convenience good. Pepsi, Coca-Cola, Mum water are the example of
Physiology needs. Customers of physiological needs are not so much sensitive. Here there are
many market segmentations according to culture, quantity and quality.

2 Safety and security need: Buying Insurance, preventive medical services and various
security system are safety and security needs. These are very sensitive product and services.
Sometimes consumers are not so much aware about these product services. So, Marketer need
extra care about creating needs and dealing with customer.

3 Social Needs: After meeting physiological and safety needs, consumers focus on buying
personal care and grooming products. Cosmetics, mouth wash shaving cream, beauty soap,
luxury cloth are the example of social needs products. Customer of these product are so much
price sensitive. Sometimes customers are all so quality sensitive. So, marketer need special
care in those consumers.

4 Esteem needs: High-tech and luxury product, fashionable dress, luxury car, sports car and
expensive furniture are the example of esteem need products. BMW car, IPhone, Apple watch
are the products of esteem needs. Consumers of these product are not price sensitive. They
think low price low quality. Consumers of these product are so much quality sensitive. Good
communication and best quality create company image and brand. So, marketers need extra
care about quality and communication, advertising.

5 Need for Self- Actualization: Hobby related product, exotic product and adventure trip are
the way of achieving self – actualization. Here also quality is most important. It also varies
one person to another. So, marketer need special care from producing goods and service to
sell.
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Theory 9: Psychoanalytic Theory

Psychoanalytic Theory

Psychoanalytic theory traces back to Sigmund Freud, the Austrian founder of psychoanalysis.
Theory: Consumers respond to symbolic concerns as much as they respond to those of business
and marketing. Theory implies external factors such as age and income cannot fully account
for consumer behavior. Instead, marketing messages that contain an emotional appeal to
consumers' feelings are often more effective than rational appeals.

Psychoanalytic theory includes many things:

i) It is frequently applied to a number of disciplines, including sales and marketing, to help

understand the consumer's motivations when it comes to making a purchasing decision.

ii) More precisely, Freud's theory has been applied to the relationship between the qualities of
a product, such as touch, taste, or smell, and the memories that it may evoke in an individual.

iii) Recognizing how the elements of a product trigger an emotional response from the
consumer can help a marketer or salesperson understand how to lead a consumer toward
making a purchase.

Psychoanalytic theory in business:

i) Past events and achievements.

ii) Companies become fixated on improving existing products or services rather than
innovating new ones a "phallocentric" culture, or a workplace dominated by male hierarchies
and stereotypes.

iii) Top-down management and power relationships.

Psychoanalytic theory in marketing:

Of course, where psychoanalytic theory really comes into play is how your customers feel
about products. Marketing has always played on subconscious desires to get people to buy a
product or try a service, and much of this is due to psychoanalytic theory from where human
desire drives. Psychoanalytic theory insists that there are reasons far deeper than "I like this"
that drive people to purchase something. For example-Maybe it speaks to the person they want
to be or reminds them of a product from their childhood or fills a subconscious void.
Understanding these reasons and what drives people to buy your product can take your
marketing to the next level. Take, for example, some of the earliest examples of psychology-
based marketing from the 1990s and 2000s. Ads portrayed an ideal life consumer could have
if they bought the company's product, whether that was cigarettes, cars or bikes. Advertisers
understood that their customers wanted and were able to improve their lives in every possible
way, and they played into that desire, thanks to the economic boom at the time. To understand
consumers more, one can create buyer a psychological profile of one’s typical or ideal
customer. One can assign things like gender, body type, hobbies, location, age, occupation or
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anything that helps define who one is selling to. Developing buyer personas can help one
narrow your focus and dive into how one develops one’s marketing psychology.

Real life examples of psychoanalytic theory:

Hazi Biriyani

After the independence of Bangladesh, Hazi Biriyani grew up famously for the delicious
Indian-subcontinent food Biriyani. Hazi Biriyani started from Puran Dhaka. Now so many
branches are across whole Bangladesh. Then the taste of Hazi Biriyani was nice. But nowadays,
the popularity of Hazi Biriyani is decreasing. Because of bad quality, mismanagement and
unhygienic environment of Hazi Biriyani restaurant, biriyani loving general people don’t prefer
to eating Hazi Biriyani. Despite all constraints, Hazi Biriyani Puran Dhaka Branch maintains
its tradition.

Navy Cigarette

When a new era 2000 started, an advertisement of navy cigarette shown on the television was
very popular at that time. The scenery of this ad was that a Royal British Navy Officer was
smoking with enthusiasm. After telecasting this ad, young generation was addicted to smoking
because on this ad, it was shown that cigarette might be the symbol of braveness, masculinity,
and a medicine of depression. This ad influenced many young generations.

Grameen Phone

Grameen Phone is a renowned sim company of Bangladesh. We should know that Grameen
Phone knows how to use emotion. In the game of psychology, Grameen Phone is ahead of
others. During the national events of Bangladesh, Grameen Phone telecasts many television
commercials based on patriotism. It is noticeable that Grameen Phone had been the sponsor of
Bangladesh National Cricket Team from 2002 to 2011.

Fresh Milk Powder

Fresh milk powder is a renowned company in Bangladesh. The brand ambassador of this
company is Bangladeshi cricketer Tamim Iqbal Khan. The TVC is very emotional where a
mother is very hopeful for her son. The motto of this ad was “ami jitle jite jaay maa”. This ad
touched many people’s heart.

Theory 10: Reasoned Action Theory

Reasoned Action Theory

The theory of reasoned action is a model for predicting people's behavior. The best predictor
of whether people will actually do something is whether they intend to do it. The TRA has been
used to predict a wide range of behaviors relating to health, voting & consumer purchases. The
theory of planned behavior must be applied to barriers to engaging in a behavior, authors say.
The research was an attempt to identify other factors such as social pressures.
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Applications of reasoned action theory:

TRA has been used in many studies as a framework for examining specific kinds of behavior
such as communication behavior, consumer behavior and health behavior. Many researchers
use the theory to study behaviors that are associated with high risks and danger like unethical
conduct as well as deviant behavior. In contrast, some research has applied the theory to more
normative and rational types of action like voting behavior. Researchers suggest that TRA can
be tested if “behavior is measured objectively without drawing a connection to prior intention”.
Most studies, however, look at intention because of its central role in the theory.

i) Brand Loyalty

TRA has been applied to redefine brand loyalty. According to TRA, the antecedents of
purchase behavior are attitudes towards the purchase and subjective norm. Marketing managers
should not be discouraged by a temporary disloyalty and need to strive for grabbing brand
loyalty when customers are showing loyalty to two of the three variables, but they need to
recheck their customers' brand loyalty when customers are showing loyalty to only one of them.
The main focus should be pointed at either enhancing the consumer's attitude toward their
brand or adjusting their brand to the social norms. New research investigated norms in social
media, contributing to TRA from a more updating perspective.

ii) Knowledge sharing in companies

TRA is used to examine the communication behavior in corporations. One of the behaviors
TRA helped characterize is knowledge sharing in companies. It is indicated that "the more
indirect decision-makers there are in organizations, the less effective is knowledge share"

Reasoned Action in marketing:

TRA can be applied to the field of public relations and marketing by applying the basics of the
theory to campaigns. A few examples of this is using it in a hotel marketing strategy and how
likely customers are to come back to the hotel based on behaviors. Brands and companies can
use this theory to see what consumers are going to buy and how to create materials for
campaigns based on this information. Other researchers investigated the consumers’
motivation and extended TRA model.

Real life examples of reasoned action theory:

Tattoo Making

If a student wants to get a tattoo but first considered whether his parents would approve or
disapprove of his contemplated behavior.

Condom

Generally, condom is used for birth control. If a couple wants to use condom, it depends on
whether how many children the couple wants to have.
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Corona Vaccine

A 2020 study examining corona patients’ behaviors surrounding the corona virus vaccine found
that TRA predicts military forces would encourage heads to get their soldiers vaccinated.

Conclusion: In this report, we want to show many theories and the benefits of these theories.
The use of these theories is massive. It helps to keep pace with modern marketing world.
It provides concepts name by which we observe and to explain relationships between
concepts. A company must position its products or services in the marketplace in such a way
that consumers believe they need a particular product for service or that a product or service
they need has a particular benefit. These theories allow us to explain what we see and to figure
out how to bring about change. It is a tool that enables us to identify a problem and to plan a
means for altering the situation.
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Reference:
✓ https://www.kwintessential.co.uk/blog/localisation/cross-cultural-marketing-flops-
you-wont-forget-in-a-hurry
✓ https://studiousguy.com/bcg-matrix-growth-share-matrix-definition-examples/
✓ https://corporatefinanceinstitute.com/resources/knowledge/other/maslows-hierarchy-
of-needs/
✓ https://www.business-to-you.com/ansoff-matrix-grow-business/
✓ https://www.clearpointstrategy.com/blue-ocean-strategy/
✓ https://apsa.org/content/psychoanalytic-theory-approaches
✓ https://www.sciencedirect.com/topics/medicine-and-dentistry/theory-of-reasoned-
action
✓ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3115290/
✓ https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html