MO1-Analyzing Customer Behaviour

Marketing and Sales Management
Level IV
Based on November 2023, Curriculum Version 2
Module Title: Analyzing Consumer Behavior for

Specific Markets
Module code: LSA MSM4 M01 1123
Nominal duration: 100 Hour
Prepared by: Ministry of Labor and Skills

November, 2023
Addis Ababa, Ethiopia
Acknowledgment
Ministry of Labor and Skills wish to extend thanks and appreciation to the many
representatives of TVET instructors and respective industry experts who donated their time
and expertise to the development of this Teaching, Training and Learning Materials (TTLM).
Table of Contents
Acknowledgment ....................................................................................................................... I
Acronym ................................................................................................................................. III
Introduction to the Module ....................................................................................................... 1
UNIT ONE: PRODUCT and SERVICE MARKET ................................................................. 2
1.1 Market information ........................................................................................................ 3
1.2 Consumer attributes ....................................................................................................... 6
1.3 Product or service features ............................................................................................. 7
Self-Check 1............................................................................................................................ 12
UNIT TWO: CONSUMER INTEREST ............................................................................... 14
2.1 Consumer need............................................................................................................. 15
2.2 Marketing of a product or service ................................................................................ 18
2.3. Types of consumer behavior ............................................................................................ 33
2.4 Consumer responses..................................................................................................... 42
2.5 Organizational behavior ............................................................................................... 43
Self-Check 2............................................................................................................................ 48
UNIT THREE: MARKETING STRATEGIES ...................................................................... 50
3.1 Concept of marketing strategies................................................................................... 51
3.2 Influences of marketing strategies ............................................................................... 55
3.3 Legal and ethical obligations requirements ................................................................. 58
Self-Check 3............................................................................................................................ 61
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Ministry of Labor and Specific Markets
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Acronym
B2B---------------------------------------------------------Business-to-business marketing
B2C---------------------------------------------------------Business-to-consumer marketing
CEO---------------------------------------------------------Chief Executive Officer
CRM -------------------------------------------------------Customer Relationship Management
DMs---------------------------------------------------------Direct Messages
RO -----------------------------------------------------------Return on investment
SAAS--------------------------------------------------------Software-as-a-service
SEO --------------------------------------------------------Engine Optimization
SMART------------------------- Specific, Measurable, Achievable, Relevant and Time-Bound.
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Introduction to the Module
In marketing and sales management field analyze consumer behavior for specific markets
is very important for the consumer‟s the company.
It helps to know about market information, attributes of consumers and product and service
features.
This module is designed to meet the industry requirement under the Marketing and Sales
Management occupational standard, particularly for the unit of competency: Analyze
Consumer Behavior for Specific Markets.
This module covers the units:
 Product and service market
 Consumer interest
 Marketing strategies
Learning Objective of the Module
 Identify product and service market
 Assess consumer interest
 Apply marketing strategies
Module Instruction
For effective use of this module trainees are expected to follow the following module
instruction:
1. Read the specific objectives of this Learning outcome.
2. Follow the instructions described below 3 to 5.
3. Read the information written in the ―Information Sheets Try to understand what are being
discussed. Ask you teacher for assistance if you have hard time understanding them.
4. Accomplish the ―Self-check‖ given at the end of each information sheet.
5. If you earned a satisfactory evaluation, proceed to next information sheet. However, if
your rating is unsatisfactory, contact your teacher for further instructions.
UNIT ONE: PRODUCT and SERVICE MARKET
This unit is developed to provide you the necessary information regarding the following content coverage
and topics:
 Market information
 Consumer attributes
 Product or service features
This unit will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:
 Gather information on the market
 Identify consumer attributes
 Identify product or service features
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1.1 Market information
A set up where two or more parties engage in exchange of goods, services and information is
called a market. Ideally a market is a place where two or more parties are involved in buying
and selling. The two parties involved in a transaction are called seller and buyer.
Customer segmentation
Customer segmentation is the division of an audience into targeted groups with shared
buying characteristics. Each customer segment purchases your product to fulfill the same
needs and often communicates through similar channels. Their purchase drivers shape
product, sales and marketing decisions.
Active customers
Are clients that have purchased a company‟s products or services during the last twelve
month period.
Inactive customers
Dormant customers are shoppers who have engaged with a brand in the past but are not doing
so now. Retailers also refer to them as inactive customers. These customers had previously
responded to a brand‟s outreach, including promotional emails, direct mail, social media ads,
etc., and made a purchase as a result of that interaction. But now, those shoppers have
stopped engaging with a brand or its marketing and have not made a purchase.
Reasons customers go dormant
Every brand aims to create loyal, life-long customers. But despite even the most clever
marketing strategies, there will always be a segment of a brand‟s customers that stop
engaging and buying. Understanding why customers disengage and become inactive helps
brands in two ways:
 Brands that know why customers go dormant can craft highly personalized win-back
strategies.
 Brands can potentially identify trends (like poor customer service in a particular region),
address the issue and prevent more customers from becoming dormant.
While each customer is unique, there are typically a handful of reasons that shoppers stop
buying from merchants.
Such reasons include:

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 Poor customer service
 Poor product quality
 Lower prices on similar products from a competitor
 Change in life circumstance
 Little to no connection to the brand
Identifying dormant customers
The criterion that classifies a customer as dormant will vary by industry and category. Brands
that sell big-ticket items, like engagement and wedding rings, would not consider the
customer dormant after only 6 months because that kind of jewelry is meant to be a one-time
purchase. An apparel brand, on the other hand, might consider putting a customer in a win-
back or reactivation campaign after 6 months because apparel can be purchased almost
constantly.
Brands looking to segment dormant customers should consider the following as well as their
industry and context.
 Time since last purchase
 Type of purchase
 Purchase frequency
 Type of interaction (brands should consider more than purchase behavior when
identifying dormant customers)
Former customers
Former customer means an individual all contractual relationships with a company on
provision of a product or a service by the company were terminated or expired, but the
company is still allowed to process and keep his/ her personal data according to the
applicable laws and regulations and the personal data protection framework.
Product usage
Product usage is the data that represents how and when your customers are using your
product. Product usage data is a crucial resource for any business, as it can help you
understand your consumer better. These insights can help you make better business decisions
and optimize your marketing campaigns.

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1.1.1 Types of Markets
1. Physical Markets - A physical market is a set up where buyers can physically meet
the sellers and purchase the desired merchandise from them in exchange of money.
Shopping malls, department stores, retail stores are examples of physical markets.
2. Non Physical Markets/Virtual markets - In such markets, buyers purchase goods
and services through internet. In such a market the buyers and sellers do not meet or
interact physically, instead the transaction is done through internet. Examples - Rediff
shopping, eBay etc.
3. Auction Market - In an auction market the seller sells his goods to one who is the
highest bidder.
4. Market for Intermediate Goods - Such markets sell raw materials (goods) required
for the final production of other goods.
5. Black Market - A black market is a setup where illegal goods like drugs and
weapons are sold.
6. Knowledge Market - Knowledge market is a set-up which deals in the exchange of
information and knowledge based products.
7. Financial Market - Market dealing with the exchange of liquid assets (money) is
called a financial market.
Financial markets are of following types:
 Stock Market - A form of market where sellers and buyers exchange shares is called a
stock market.
 Bond Market - A market place where buyers and sellers are engaged in the exchange of
debt securities, usually in the form of bonds is called a bond market. A bond is a contract
signed by both the parties where one party promises to return money with interest at fixed
intervals.
 Foreign Exchange Market - In such type of market, parties are involved in trading of
currency. In a foreign exchange market (also called currency market), one party
exchanges one country‟s currency with equivalent quantity of another currency.

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 Predictive Markets - Predictive market is a set up where exchange of good or service
takes place for future. The buyer benefits when the market goes up and is at a loss when
the market crashes.
Market Size
The market size is directly proportional to two factors:
 Number of sellers and Buyers
 Total money involved annually
Marketing Information
Marketing information means all and any information (whether or not recorded in
documentary form or on computer disk or tape) relating to the marketing or sales of any past
present or future product or service of the company or any group company including:-
Sales targets and statistics
 Market share and pricing statistics
 Marketing surveys and plans
 Market research reports
 Sales techniques
 Price lists
 Discount structures
 Advertising and promotional material
 The names, addresses, telephone numbers, contact names and identities of customers and
potential customers of and suppliers and potential suppliers to the company or any group
company, the nature of their business operations, their requirements for any product or
service sold to or purchased by the company or any group company and all confidential
aspects of their business relationship with the company or any group company.
1.2 Consumer attributes
A consumer is a person or a group who intends to order, or use purchased goods, products,
or services primarily for personal, social, family, household and similar needs, who is not
directly related to entrepreneurial or business activities. The term most commonly refers to a
person who purchases goods and services for personal use.
The end-user of any product or service is also known as the consumer.

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A customer always purchases a product or service, but might not be the end user. A
consumer is always the end user of a product or service, but might not have purchased it.
1.2.1 Types of consumers
When a company sells a service or a product, it must first identify and classify the various
categories of customers before marketing to them.
A. Commercial Consumer: Consumers who buy in huge amounts but are unsure
whether or not they require the product are known as commercial consumers.
Additionally, they occasionally correlate unique needs with their purchasing orders.
B. Discretionary Spending Consumers: These individuals have distinct purchasing
tendencies. They usually buy a lot of clothing and technology devices.
C. Extroverted Consumers: These individuals favour distinctive companies and
become devoted customers after they have gained the brand‟s confidence.
D. Inferior Goods Consumer: Consumers that buy inferior items have a low income
and purchase things at low costs.
A consumer is somebody who decides to choose whether or not to buy something at a store
or is affected by advertisements and marketing.
When someone walks to the store to purchase clothing, a toy, a beverage, or whatever else,
they are making a consumer decision.
Any individual who purchases things for a price that has been either promised to be paid or
partly paid & partly promised is referred to as a consumer.
Consumer attributes
Consumer attributes are characteristics, properties and behaviors that can be used to describe
a consumer. These are data fields that can be collected in a customer database or software
such as analytics that captures customer data.
1.3 Product or service features
1.3.1 Products
A product is an offering you sell to customers to satisfy a need or want.
It is the item offered for sale. A product can be a service or an item. It can be physical or in
virtual or cyber form.

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A product can be classified as tangible or intangible. A tangible product is an actual physical
object that can be perceived by touch such as a building, vehicle, gadget, or clothing. An
intangible product is a product that can only be perceived indirectly such as an insurance
policy. These Services can be broadly classified under intangible products, which can be
durable or nondurable.
Characteristics of a product
Intended for customers: This differentiates products from projects or anything else you may
produce for your own use or enjoyment. Products are typically created with the intent of
being sold and consumed by someone else — whether that is an individual consumer or a
business.
Created to provide benefits to a market : Identifying a market need and meeting it can be
challenging but at a base-level, a product should provide some sort of advantage to users.
Exchanged for value. The most typical value exchange is money meaning, products have a
price and can be bought and sold. In some cases products will be offered in exchange for
feedback, exposure, a trade, or other forms of value.
Types of products
Beyond physical, virtual, and hybrid, products can be classified in other ways. You can start
by splitting products among three major customer categories consumer, business, and
industry.
A. Consumer products
Consumer products, or business-to-consumer (B2C) products, are sold to end-users and
intended for personal use. The consumer product category is commonly broken down further
by purchasing behavior — as different characteristics can influence the way customers buy
products. The table below explains the four major consumer product types by purchasing
behavior:

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Table 1.1 Consumer product types
Purchasing behavior Description
Convenience Convenience products are purchased frequently and with little planning or
effort. They are widely available, easy to obtain, and typically have a low
price.
Example: Magazines, on-demand software and services
Shopping Shopping products are purchased less frequently than convenience
products and have a higher price. Buyers compare attributes such as
quality, style, and price before making a purchasing decision.
Example: Clothing brands, airline tickets
Specialty Specialty or niche products have features that appeal to a specific group of
customers. This type of product requires more targeted promotion to reach
the right people.
Example: Vertical market software such as real-estate or banking
applications
Unsought Unsought products have little awareness or proactive demand among
customers. Because customers do not perceive an immediate need for these
products, the benefits must be directly promoted to generate interest.
Example: Life insurance, reference books
B. Business products
Business products, or business-to-business (B2B) products, help other companies create their
own products or operate their business. Business products can also be referred to as
horizontal market products — present in multiple industries and supporting a wide range of
business needs. Examples of business products include raw materials, equipment, supplies,
business services, and software.
Business software is a major sub-category of B2B products. Examples include accounting,
customer relationship management (CRM), human resource management, and product
development software. These applications can be further categorized by the size of the
company that uses them (e.g., enterprise software).
C. Industry products

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Industry products, or vertical market products, serve broad business sectors such as energy,
healthcare, financial services, or information technology. Rather than cater to a large variety
of use cases, industry products are tailored to meet the needs of a specific industry (e.g., a
healthcare application for managing patient data).
1.3.2 Services
Services are intangible, value-added activities that a company provides to its customers. They
are the core of what a company does to create value for its customers and generate revenue.
Services can be physical or digital. Physical services are those that you can touch, feel, or
see, such as a haircut or a massage. Digital services are those that exist in the digital world,
such as an app or a website.
Services are often complex and involve multiple steps to complete. They may require special
skills or knowledge to perform. And they may need to be delivered in person, online, or
through some combination of both.
A service business is any business that provides a service to its customers. Service businesses
can be small businesses, like a corner store or a one-person operation, or they can be large
companies with thousands of employees, like an airline or a hotel chain.
A service is defined as an intangible good that is produced and consumed simultaneously.
This can be contrasted with a physical good, which is a tangible product that is produced and
then consumed at a later time. While this definition may seem straightforward, the concept of
a service can be difficult to wrap your head around. In this blog post, we will explore what
services are and some examples to help you better understand this idea.
The three types of services
I. Consulting services involve providing professional advice to businesses in order
to help them improve their operations. This can include anything from helping
with strategic planning to improve customer service.
II. Training services involve providing businesses with the necessary skills and
knowledge to improve their performance. This can be done through workshops,
seminars, and even online courses.

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III. Support services involve providing assistance to businesses when they need it
most. This can include technical support, customer service, and even
administrative support.
1.3.3 Product and service features
A product feature is a specific function or characteristic of a product that provides value to
customers. It can include capabilities, design elements, or performance upgrades. For product
managers, defining and prioritizing features to build is a key aspect of the role.
Product features are specific properties or elements of a product that distinguish it from
similar products on the market and provide considerable value to consumers. For instance,
one of the features of electronic equipment is the length of its battery life. Features simply
refer to a product's characteristics and capabilities.
Product benefits
Product Benefits are the reasons customers buy the product or service. For example, the
benefits of some ovens to buyers include safety; ease of use, affordability, or in the case of
many ovens that feature stainless steel casings prestige.

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Self-Check 1
Part-I: True or False
1. Ideally a market is a place where two or more parties are involved in buying and
selling.
2. A customer always purchases a product or service, but might not be the end user.
3. A consumer is always the end user of a product or service, but might not have
purchased it.
4. A product feature is a specific function or characteristic of a product that
provides value to customers.
5. Product benefits are the reasons customers buy the product or service.
Part-II: Choose the correct answer
1. _________a set up where two or more parties engage in exchange of goods, services
and information.
A. Customer segmentation B. Market C. Active customers D. Dormant customers
2. ________is the division of an audience into targeted groups with shared buying
characteristics.
3. _______Are clients that have purchased a company‟s products or services during the
last twelve month period.
4. _______are shoppers who have engaged with a brand in the past but are not doing so
now.
5. _______is the data that represents how and when your customers are using your
product.
A. Consumer B. Product usage B. Product D. Consumer attributes
6. _______is a person or a group who intends to order, or use purchased goods,
products, or services primarily for personal, social, family, household and similar
needs, who is not directly related to entrepreneurial or business activities.

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7_______are characteristics, properties and behaviors that can be used to describe a
consumer.
8. _______is an offering you sell to customers to satisfy a need or want.
Part-III: Answer the following questions accordingly
1. Discuss on the three types of services.
2. List some characteristics of a product.
3. Discuss some types of consumers.

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UNIT TWO: CONSUMER INTEREST
and topics:
 Consumer need
 Marketing of a product or service
 Consumer buying behavior
 Consumer responses
 Organizational behavior
 Investigate consumer need
 Review marketing of a product or service
 Taste consumer buying behavior
 Analyze consumer responses
 Assess organizational behavior

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2.1 Consumer need
Every customer shows inclination towards particular products and services.
Consumer interest is nothing but willingness of consumers to purchase products and
services as per their taste, need and of course pocket.
Consumer needs are the driving force behind every purchase decision. When a person has a
need, they are looking for a product or service that will satisfy that need. The more effective
a brand is at detecting these needs and offering products or services that meet them, the more
sales it will have.
According to the American psychologist Abraham Maslow, our general needs are organized
hierarchically into 5 levels:
I. Physiological needs: These are needs directly related to human survival such as
eating, drinking, and maintaining a good state of health. This means that food
products, beverages, and medicines would be at this level (the base of the pyramid).
II. Security needs: This level is about a human being's need to be protected. This
includes everything from access to housing to alarms and life insurance.
III. Belonging needs: All people feel the need to be part of a group and to connect, in
some way, with the world around them. This level includes all those products and
services that promote social activities or signify that the buyer is part of a certain
group.
IV. Esteem needs: These needs are related to self-esteem and are manifested through
acquiring products that represent your status in society like cars or jewelry.
V. Self-realization needs: This is the top of the pyramid and where needs related to
individual happiness are included. These are much more specific. For one person, it
may be to travel; for another, it could be getting a university degree.
According to Maslow, all individuals need to fulfill their needs according to this hierarchy.
For example, the person will need to meet physiological needs before meeting security needs.

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2.1.1 Types of consumer needs
 Functionality
Customers expect products or services to solve their problems or meet their needs effectively.
 Price
Most customers have a budget when it comes to products or services that meet a specific
need. This means that the price of the product or service should be tailored to your target
audience.
 User Experience
Customers prefer products and services that are easy to use, have intuitive designs, and
provide a pleasant overall experience.
 Reliability
It is important that the product is reliable and that consumers are able to use it for a long
enough time.
 Efficiency
The product should be simple to use so that people don't have to spend a lot of time
getting familiar with it.
 Compatibility
As far as possible, you should try to offer a product or service compatible with other
products the customer is already using.
 Empathy
Ensure that your customer service is well-trained and friendly since the user is looking for
answers and for the brand to be understanding. It is important that the customer service is
quick and reliable as well.
 Transparency
Customers value transparency. They appreciate clear and open communication about
pricing, service terms, company updates as this fosters trust. The more transparency and
sincerity, the more customers trust a brand.
 Control
Consumers desire the ability to make their own decisions during the buying process.
 Options

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Customers like to have different options before making a purchase. Providing a variety of
choices allows customers to select the best-suited products or services for their
preferences.
 Information
Customers seek relevant information about products or services before and after purchase,
often through blogs or social media. That's why it is important to have a blog with articles
related to the products or services offered a profile on social networks, or any medium that
serves as a platform to keep consumers informed.
 Accessibility
Offering multiple communication channels, such as email, phone number, WhatsApp
Business, or live chat, ensures easy access to a brand's support and assistance.
 Fairness
All customers want to feel like they are getting a fair deal from the brands that they
purchase products or services from. This applies not only to pricing but also to the
customer service, return policy, warranty, and so on.
Identify and respond to consumer needs
There are several ways to identify consumer needs.
Customer data analysis is one of the most important ways to do this. This can identify
common patterns and problems that can arise before, during, or after a purchase.
It's also be worth checking interactions to find out what the public thinks of your brand and
whether the products or services offered have met their needs as they expected. The type of
questions they ask or the content that generates the most engagement are clues to what
consumers are looking for.
You can even directly ask people for their opinions through surveys or by inviting them to
leave a comment on any of your platforms.
Competitors are another source of information since the problems that customers mention
about the product or service of another company are data that can be used to favor your
brand.
Lastly, conduct keyword research and track trends to understand what customers are
searching for. This can provide valuable information about their interest and needs.

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Responding to consumers’ needs
Once you have identified your customer's needs, responding to them effectively is important.
Here are a few tips to help you do that.
 Adaptability and Continuous Analysis: Consumer needs evolve over time, so
regular analysis is necessary to stay current. Stay flexible and be ready to adjust your
strategies to meet changing needs.
 Excellent Customer Service: Offer top-notch customer support to address inquiries
or concerns promptly. A strong support system can provide valuable insights into
what customers care about most.
 Seamless Buying Experience: Make the purchasing process as smooth and user-
friendly as possible. Eliminate any obstacles that might deter customers from
completing their purchases.
 Proactive Problem-Solving: Address any issues or problems that arise swiftly and
efficiently. This demonstrates your commitment to customer satisfaction.
 Actively Listen to Customers: Encourage open communication with your customers
and actively listen to their feedback. This will help you better understand their needs
and preferences, enabling you to provide tailored solutions.
Remember, understanding your customer's needs and responding to them effectively is the
key to building strong and lasting relationships, fostering customer loyalty, and driving the
success of your business.
2.2 Marketing of a product or service
Marketing: Traditionally, marketing is defined as only as advertising and selling. But in
modern terms, marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, delivering and exchanging products and
value with others.
And also marketing includes not only “telling and selling”, but fulfilling customer needs. In
this case, marketing mixes are essential tools that are combined to satisfy consumers‟ needs
and manager relationships with customers. Marketing process is also important in
implementing marketing activities effectively and efficiently. Marketing process consists of

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five steps, in four of which companies create value for their customers, whereas in the last
step they capture the value from the customers. i.e.
 Understanding customer needs & wants in the market
 Designing marketing strategy based on customer needs
 Construct an integrated marketing program to provide value
 Building valuable relationship with customers and generating customer satisfaction
 Capturing value from customers to obtain profits
2.2.1 Types of marketing
A. Business-to-consumer marketing
B2C stands for business-to-consumer. It‟s a type of business model geared toward individual
buyers. This is a common sales model that applies to both brick and mortar and online
retailers. The brands that most people are familiar with are probably B2C, for example:
 Amazon
 Walmart
 Google
 Facebook
It is a business model where businesses provide services directly to the consumer, without
the interference of any intermediaries. This model is especially popular in e-commerce, and
became the gateway where local businesses could thrive by putting up a storefront of their
own for customers to choose and make purchases from.
Examples of business-to-consumer
Businesses that engage in business-to-consumer transactions are known as B2C companies,
as opposed to B2B companies that deal with other businesses. However, the two don‟t
exclude each other.
For example, Microsoft performs both business-to-consumer transactions — when it sells
electronics to individuals — as well as business-to-business commerce — when it deals with
its suppliers or corporate clients. While B2C initially referred to any product or service sold
in-person to individuals, after the dotcom boom it became synonymous with online selling.

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Because with the rise of e-commerce, traditional stores have lost ground to online giants such
as Amazon and e-Bay .These online businesses eliminated physical retailers by streamlining
products from manufacturers directly to individuals, at lower prices.
The 5 key B2C business models
When talking about online sales, there are 5 popular B2C business models, depending on
what entities are involved and how revenue is made
I. Direct sellers these are online retailer sites where customers can buy products directly.
Examples are samsung.com and zara.com.
II. Online intermediaries without owning any product or service, online intermediaries
simply connect sellers and buyers. Think of businesses such as flight booking platforms
such as Skyscanner.
III. Advertising-based B2C advertising-based businesses rely on providing high-quality
content to attract traffic which they then leverage to sell advertising for other products or
services. Almost all publications that offer free content operate under this model.
IV. Community-based in this model, businesses market their products to online
communities built around common interests. Facebook is the best example. The social
platform earns revenue by helping businesses reach audiences with high targeting
precision.
V. Fee-based These B2C companies offer services or content in exchange for a subscription
fee. Examples include entertainment platforms such as HBO Go and Netflix, but also
publications such as Wired and The New Yorker, that have a free-read limit until they
start charging for their content.
Advantages of Business to Consumer
B2B and B2C are completely two different models; however, every model has some specific
characteristics. Some of the advantages of business to consumer model are as follows;
Increased Awareness
According to an estimate, as on January 2020 more than 4.5 billion people use the internet
across the world. The market over the internet doesn‟t have any boundary, companies, and
businesses are using the internet and multiple platforms to target their customers directly.

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They‟re doing it by spreading information about their product when people have the
awareness and knowledge, then they‟d demand it.
Better Interaction
When buyers and sellers directly communicate with one another, then it‟s highly likely that
the seller would satisfy the buyer‟s needs and requirements, because now the seller knows
the exact requirements of the buyer. Instead when there are multiple layers of middlemen are
involved.
Better Service
When businesses directly contact consumers, then they have to be very cautious about their
product, delivery, and other services. All of these things combined to impact the perception
of customers. If a customer has a better experience with the service, then it‟s probable that
he‟d come again.
Refined Messaging
The messages businesses send to their consumers are very precise. Marketing team of
businesses and companies work on their messages what they have to send to their customers
so that the message shouldn‟t be out of the context. It should mean what it‟s planned to mean
it.
Disadvantages of Business to Consumer
The following are some of the top disadvantages of B2C:
Increased Competition in the Market
B2C businesses face huge competition in the market. Most B2B companies have already
established themselves by operating in every possible service. It has created a big
competition for start-ups. To sustain itself, one has to market its brand and product to an
extreme level. There is vast competition in pricing as well. Thus, an attractive manner is
requisite to influence the target audience.
Retention of Customers
Because of the vast competition, companies must discover essential strategies to retain their
customers while differentiating their services from the competitors. Serving as per consumer
niche is quite essential for sustainability. B2C companies must invest tremendously in
attracting customers and marketing their brands. Robust strategies are necessary to retain the

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customer, as the selling cost to already existing consumers is relatively lower than the new
ones.
Low Margin
Companies must discover powerful ways to gain lost revenue by concentrating on quantity.
However, this increases the risk of missing existing customers due to quality issues that
eventually affect the business‟s profit. In such situations, one can offer discounts, but only if
there is a need for clearance of old stock. If a company is launching a new product, then there
must be an introductory discount. This further motivates or influences the target customer to
try the newly launched product.
B. Business-to-business marketing
As the name suggests, business-to-business marketing refers to the marketing of products or
services to other businesses and organizations. It holds several key distinctions from B2C
marketing, which is oriented toward consumers.
Any company that sells to other companies. B2B can take many forms: software-as-a-service
(SAAS) subscriptions, security solutions, tools, accessories, office supplies, you name it.
Many organizations fall under both the B2B and B2C umbrellas.
B2B marketing campaigns are aimed at any individual(s) with control or influence on
purchasing decisions. This can encompass a wide variety of titles and functions, from entry-
level end-users all the way up to the C-suite.
In a broad sense, B2B marketing content tends to be more informational and straightforward
than B2C. This is because business purchase decisions, in comparison to those of consumers,
are based more on bottom-line revenue impact. Return on investment (ROI) is rarely a
consideration for the everyday person at least in a monetary sense but it‟s a primary focus for
corporate decision makers.
In the modern environment, B2B marketers often sell to buying committees with various key
stakeholders. This makes for a complex and sometimes challenging landscape, but as data
sources become more robust and accurate, B2B marketers‟ ability to map out committees and
reach buyers with relevant, personalized information has greatly improved.

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C. Direct marketing
Direct marketing is a form of advertising that communicates a marketing message directly to
a potential customer. A direct marketing campaign happens through emails, social media
DMs, mail-order catalogs, promotional flyers and coupons, telemarketing, and door-to-door
visits. Direct marketing differs from other forms of advertising that use mass
distribution marketing channels, such as TV ads.
Aims direct marketing
Even though a direct marketing campaign might reach millions of people, each instance of
direct marketing should feel like a one-on-one conversation between a brand and a potential
customer.
To achieve this, direct marketers use personalization techniques, such as mentioning the
recipient‟s name or referencing a recent action they‟ve taken.
The main aim of personalized outreach is to persuade a prospect to take action. That action
could be:
 Viewing a website
 Making a phone call to learn more
 Returning a postcard or form to request a quote
 Giving your name and email address
 Making a purchase
Types and examples of direct marketing
Direct marketing is a targeted form of advertising used on prospects who are determined to
be likely buyers.
Here are six common types of direct marketing and examples of how marketers might use
channels to reach a target audience:
 Email
Email marketing can be used as a direct marketing strategy. Through email, marketers send
promotional messages, announcements, and newsletters to current or potential customers.
These communications can include special offers, promo codes, or other relevant
information.
Newsletters

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Newsletters are regularly distributed emails that provide updates, information, and
entertainment. They serve as a consistent touchpoint between a brand and a customer, and
can be segmented to increase personalization. For example, followers of a running club on
social media might receive an email newsletter with tips for improving your speed, alongside
a coupon for discounts on new sneakers.
 Social media
Social media marketing uses platforms like TikTok, Facebook, and Instagram to reach
audiences. Brands can send direct messages or use targeted ads to reach potential customers,
leveraging a vast user base and data-rich environment.
Social media DMs
Direct messages on social media are personalized messages sent to followers or potential
customers. They offer a direct and instantaneous line of communication, allowing brands to
address specific customer queries, concerns, or interests.
Targeted social ads
Targeted ads are tailored based on a user‟s age, gender, interests, purchase and browsing
history, and other demographic factors. This allows brands to reach the right audience with
the right message. For instance, followers of Instagram influencers popular with teens might
be served Facebook ads for an acne remedy, based on the assumption that they‟re more likely
to be interested in the product.
 Catalogs
Catalogs, printed or digital booklets that showcase a brand‟s products, are the historic form
of direct marketing. They are typically sent to customers who have shown previous interest
in products, offering a tactile and branded way to browse.
 Flyers, postcards, and coupons
These marketing materials can be sent physically through mail or digitally via email. They
often include information about recently launched products and services, or news of an
upcoming sale or special event.

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Direct mail
Direct mail involves sending physical marketing materials, like flyers or postcards, to
potential customers.
While sometimes seen as an old-fashioned form of direct marketing, the presence of a
physical (perhaps personalized) piece of branded content in your prospect‟s home can be a
more persuasive sales tool than an email sitting in their inbox.
 In-person (direct selling)
In-person direct selling involves selling products or services to customers face-to-face. This
allows for immediate feedback and personal interaction, enhancing the customer‟s
connection with the brand.
Pop-ups
Pop-ups are temporary sales spaces that allow customers to experience products or services
firsthand. They offer a unique and engaging shopping experience, often in high-traffic areas,
to reach a broad audience.
Direct selling
Direct selling often involves personal selling tactics, such as door-to-door sales or event
sales. This approach allows for an emotional connection between the salesperson and the
customer, often leading to higher engagement.
 Telemarketing
Telemarketing involves contacting potential customers over the phone to sell products or
services. This direct approach allows for immediate interaction and response, making it a
powerful tool for sales and customer engagement.
Cold calling
Cold outreach is a specific telemarketing strategy where businesses call large lists of
potential customers, often without prior contact. Despite being unsolicited, it can reach a
broad audience quickly and can generate leads if executed effectively.
SMS
SMS marketing involves sending promotional text messages to customers. With the rise of
messaging apps like WhatsApp and Facebook Messenger, businesses are finding new ways

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to reach customers via text. For example, a brand might send a text message with a reminder
about items left in a shopping cart.
D. Idea marketing
Ideation is an essential part of a marketing team's responsibilities. It is the process of coming
up with new and creative ways to engage your audience and drive growth. After all, every
breakthrough marketing program or campaign starts with an idea. But on a more tactical
level, ideation can include identifying new content ideas, sales tools, or techniques to reach
prospective customers.
Managing requests is another big part of what a marketing team does. Typically, these
requests come from customer-facing teams that need information, assets, or other materials to
best represent your company's brands and products.
But it can be difficult to capture and organize all the incoming ideas and requests that come
your way let alone decide which ones to implement. Since everything is coming from
different groups and channels, you may be keeping a tally of it all in a static document that
requires constant updating.
This is where idea management comes in. It is the process of gathering, storing, prioritizing,
and selecting relevant insights to improve your existing marketing programs and inspire new
ones. The goal is to capture the strongest ideas so you can include them on your marketing
roadmap and ultimately improve what you deliver to customers.

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Table 2.1 Marketing ideas
Marketing ideas and requests come from
Executives Executives might ask for major efforts such as a website

redesign, updated logo, or content package aimed at a new
audience the company wants to target.
Product The product team might request content for an upcoming
launch or collateral to help educate customers about new
functionality.
Sales Salespeople might ask for specific sales enablement tools
with custom branding, such as market research, data sheets,
updated competitor analysis, or help with an upcoming
presentation.
Customer support The customer support team might inquire if there is any
existing content on a particular topic that customers are
talking about or if there are plans to hold training or
publish new related content.
Human resources and These teammates might need supporting marketing
operations
materials to post on an online job board or for a company
event.
Prospects and customers Customers may submit comments about your product or
service through your website or social media channels. But
most customers will not approach the marketing team
directly. Instead, you might be proactive in asking for
feedback at the end of a marketing video, then use that
feedback to improve future work.
Marketing Your marketing teammates have ideas and requests of their

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own. For example, the content team might want the ability
to submit ideas for future blog posts in a portal and
organize them by category. Or the field marketing team
might share ideas for future campaigns based on their
discussions with customers.
E. Marketing of goods
A good is a tangible item made of the material which customers can touch and own. Goods
are about real things. For instance, a car, a pair of shoes, a computer, a table, etc .
F. Public sector marketing
Public is the group of people that influence the business activities of a company or people
who have real or potential interest in the company. This public is responsible for building
your company‟s image amongst the customers or the industry.
Public sector marketing is about managing the relationships between government
organizations, the public sector, and other parties that are seeking services from them.
These parties can include individuals, groups of individuals, organizations, or communities.
The types of publics in marketing environment of a company
 Financial Publics
These are the people that affect a company‟s funding. Banks, investors, brokerage firms,
stock holders etc. These types of publics affect a company‟s ability to take loans, favorable
payment terms etc. They also determine how the customers or other publics perceive a
business.
Example: If a company is a supplier of some auto-part to an automobile giant and if the
automobile giant fins that the product is faulty, it may directly hinder the company‟s ability
to work with the other giants. Or if a company is known to always be in losses, investment
houses may refrain from investing in such companies.
 Media publics
This type of publics generally use newsletters, articles, blogs, magazines, radio
announcements etc. to make a perception about a business in the minds of the stakeholders.

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Having good media relations can always help a company hide its faults and highlight its
strengths. But if the media relations are not good, it might lead to heavy losses.
 Government publics
The Government rules and regulations need to be followed while operating a business. Any
change in the rules should be noted and corresponding alterations should be done in the
business procedures.
A business should always be updated about the Government policies and may consult a
Government official or advocates etc. for doing so.
 Citizen-action publics
These are the voluntarily or involuntarily formed public groups for the benefit of the general
consumer. These include consumer groups, environmental groups and minority groups etc. A
company‟s PR department needs to be updated about what these groups have to say
regarding the company.
The general public that might affect the business should be known and efforts should be
taken to keep friendly relationships with them.
 Local publics
These include the neighborhood citizens, general local bodies etc. A community relations
officer needs to be appointed to solve the issues of the local public.
 General publics
General public includes the general customers. The customers brand perception is very
important for the company‟s success. Various advertising campaigns might be undertaken to
build a healthy image.
General public‟s perceptions can be judged through their feedback on social media.
 Internal publics
A company‟s employees, managers, distributors, suppliers, volunteers, stakeholders, Board
of Directors etc. are very important assets of a company. If the internal public is happy and
content, then only they will try to increase the goodwill of the company, in the outside world.
Newsletters, memos, company meetings etc. can be used to educate and motivate the
employees.
G. Services marketing

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A service is an action of doing something for someone else. It is not made of the materials
hence it is intangible. Services are about experiences. For instance, taking a TAXI, attending
a business lesson, having a haircut, a train trip from Paris to London, etc.
H. Telemarketing
Telemarketing is the process of selling products or services over the telephone. Businesses
sometimes refer to it as “inside sales” or “tele-sales.”
IT is an advertising technique used by companies to contact potential customers and talk to
them about their products and services. Traditionally, it is done by phone but nowadays,
companies also use videoconferencing, especially in more advanced stages of the purchasing
process.
The best-known example of telemarketing is cold-calling, where a company contacts a
person for the first time with the intention of selling its products or services.
However, this technique has many other applications, including:
 Generating leads
 Confirming attendance at events
 Post-sales follow-up
 Evaluating customer satisfaction
Best practices for telemarketing success include:
 Customer information. The caller should know why the people being called are
good prospects did they open an email message about the product or enter a prize
drawing at a trade show?
 Knowledge. Individuals placing the sales calls should know the products they‟re
selling and the companies they represent, and should also be able to answer questions
about both. They should also be trained in typical purchase objections and how to
overcome them in a conversation.
 Empathy. An empathetic telemarketer who demonstrates listening skills is better able
to develop a customer relationship than a caller who is focused on nothing more than
the sale.

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 A campaign. Because customers need several contacts in different forms advertising,
direct mail, and so on the telemarketing call needs to be part of a larger marketing
effort.
Advantages of Telemarketing
 More personal communication: Compared to email marketing, telemarketing is a
more personal approach that can facilitate the connection between the seller and
the prospect. This can be especially beneficial for businesses that sell high-value
products or services.
 Get in touch with a large number of customers in a short time: Telemarketing
allows businesses to reach many potential customers in a short time. This can be a
valuable way to generate leads and sales.
 Low cost: Telemarketing can be a relatively low-cost way to market a business.
This is especially true when compared to other marketing channels.
 Help clean databases: It can be used to help clean up and update customer
databases. This can be helpful for businesses that want to ensure they are only
marketing to customers interested in their products or services.
 Offer a large amount of information about the product or service: Adapt your
product or service exactly to the potential customer's needs.
 Create a good impression and experience for the customer: This can help your
business build relationships and encourage repeat business.
Disadvantages of Telemarketing
 It is intrusive: You are interrupting the potential customer to offer them
information they have not requested. This can be perceived as intrusive and
negatively affect the company's reputation.
 Restrictions and exclusion lists: These are telephone numbers that cannot be used
for telemarketing.
 Investment to train agents: Ensuring that the customer service reps are following
the company's script and best practices.
 Conversion rate is low: It is difficult to find the right person and the right time to
offer your services, especially if you do not have a good database.

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Examples of Telemarketing
I. Product sales: This is the most common type of telemarketing, where a salesperson
calls a potential customer to try to sell them a product. The calls can be made to both
new and existing customers.
II. Sale of services: This type of telemarketing is similar to product sales, but the
salesperson is trying to sell a service instead of a product.
III. B2B telemarketing: This is directed to businesses rather than individual
customers. Businesses use B2B telemarketing to sell their products or services to
other businesses.
IV. Inbound telemarketing: This is when a potential customer calls a company rather
than the other way around. This type of telemarketing is often used for customer
support to gather feedback from customers.
V. Technical support: Another example of a customer contacting the brand, in this
case, to request help with a problem related to the product or service.
VI. Satisfaction surveys: This type is used to gather feedback from customers about
their satisfaction with a company's products or services.
VII. Political telemarketing: This type is used by political campaigns to contact voters
and inform them about candidates, policies, and more.
2.3 Consumer buying behavior
Consumer behavior is the actions and decisions that people or households make when they
choose, buy, use, and dispose of a product or service. Many psychological, sociological, and
cultural elements play a role in how consumers engage with the market.

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Figure 2.1 Consumer behavior
2.3.1 Types of consumer behavior
Marketers must understand several types of consumer behavior to create effective marketing
strategies and meet customer needs. This section will look at the four types of customer
behavior and how they affect businesses.
A. Complex buying behavior
When customers are actively involved in the purchasing decision process and are aware of
the significant differences between the various brands, this happens. Before making
purchasing decisions, consumers conduct extensive research, gather information, and
evaluate alternatives.
B. Dissonance-reducing buying behavior
This type of behavior happens when people make expensive or risky purchases and then feel
uncomfortable or confused about their decision. Consumers may seek reassurance,
information, or feedback from others to reduce confusion.
C. Habitual buying behavior
This happens when customers make purchases with minimal decision-making and
marketing efforts or information search. Based on prior experiences, they have developed
brand and customer loyalty also buying habits, and they may buy things out of habit,
convenience, or familiarity.
D. Variety-seeking buying behavior

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This type of behavior happens when customers are not deeply involved in the purchase
decisions but seek variety or uniqueness in their purchases. They may most often change
brands or products to satisfy their curiosity or need for variety.
Importance of consumer behavior
 Better marketing and communications
As living standards, trends, and technology keep changing, consumers‟ choices also keep
varying. Understanding how these factors affect customers‟ buying habits helps
organizations design their messaging accordingly. Thus, having insights into consumers‟
purchase behavior can help marketers in meeting their objectives.
 Improve customer retention
It is far more beneficial to retain an existing customer than to gain new customers. It‟s easier
to sell new products and services to your existing customers than to find new ones.
Entrepreneurs who are able to retain their customers and create strong relationships manage
to create strong new brand loyalty for their businesses. Customer loyalty can prove to be a
promoter of your business and spread positive word of mouth.
Satisfied customers share their happy experiences with their friends and family.
So, retaining as many customers as possible should be the goal of entrepreneurs interested in
growing their companies.
 Increase customer loyalty
Understanding customer behavior helps in finding out ways to boost customer loyalty, which
in turn, will lead to higher sales and a strong brand. Analyzing trends in sales can aid in
offering discounts as well as suggesting the best products and services to them.
 Better plan inventory
Researching customer attitudes helps companies plan inventory and stock raw materials. In
the case of a service-based business, the management team can better plan their human
resources. If businesses see a trend in demand for specific products, they are likely to send
more purchase orders to their suppliers. Consumer behavior data can help them to balance
demand and supply.
 Increase sales

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A company always aims to satisfy specific market niches. Even if the company operates in
different sectors, it should target potential buyers in each segment. If you know your
customers well, you can have better conversations with a high probability of closing the deal.
Knowing who you are selling to makes it possible to clearly define your objectives in the
market. Learning more about consumer behaviors helps to define the main customers that
come directly to the company.
Your inventory should be stocked with products that meet the requirements of your potential
buyers.Instead of taking random shots and trying to sell to anyone, having knowledge about
your customers‟ likes and dislikes helps in making smarter decisions. Such a strategy has a
higher chance of generating sales.
 Research competition
Studying consumer buying behavior helps in understanding the competitive market. You can
plan on how to position your products and services to offer competitive advantages.
Consumer buying behavior
Consumer buying behavior studies how consumers buy, use, and dispose the product of the
company where as consumer market is all the individuals and households that buy or acquire
goods and services for their personal and family consumption.
For example, Addis Ababa consumer market consists of millions of people who consume
each year goods and services worth a significant sum of Birr. Consumers make many
business decisions every day.Most large company‟s research consumer buying decisions in
great detail to answer questions about what consumers where they buy, how and how much
they buy, when they buy, and why they buy.
Consumer buyer behavior is influenced by four key sets of buyer characteristics, i.e. cultural,
social, personal, and psychological. Buying behavior may vary greatly across different types
of products and buying decisions.

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Table2.2 Factors that affect consumer behavior
Cultural Social Personal Psychological
 Culture  Groups and Social  Age and life cycle stage  Motivation
networks
 Sub- culture  Occupation  Perception
 Family
 Social class  Economic situation  Learning
 Social status and roles
 Life style  Beliefs and
attitudes
 Personality and self-concept
2.3.2 Factors affecting consumer buying behavior

I. Personal (individual)factors affecting consumer buying behavior
A buyer‟s decisions are also influenced by such personal characteristics as age and life- cycle
stage, occupation, economic situation, lifestyle, personality and self-concept.
 Age and life- cycle stage: People change the goods and services they buy over their
lifetime. Tastes in food, clothes, furniture, and recreation are often age related.
Buying is also shaped by the stage of the family life -cycle. Family life cycle
represents the stages through which families might pass as they mature over time.
Marketers often define their target markets in terms of life-cycle stage and develop
appropriate products and marketing plans for each stage. Traditional family life-cycle stages
include young singles and married couples with children.
However, marketers today are increasingly approaching to a growing number of alternative
nontraditional stages such as those listed below:
 Unmarried couples
 Singles marrying later in life
 Childless couples
 Same - sex couples
 Single parents

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 Extended parents (i.e. those parents with young adult children returning home) for
example, many companies are now reaching out to serve the fast- growing groups of
the recently divorced persons.
In short, companies are constantly adjusting their marketing approach in order to target
products and services to consumers based on their life stages. The goal of these
companies is to create brand loyalty early on and to develop long-term relationships with
customers by getting closer to consumers.
 Occupation: A person‟s occupation affects the goods and services s/he buys,
allowing marketers to identify and specialize in such. Blue color workers (i.e.
workers who do a job to which they are physically contacted) tend to buy clothes
related to their work. In contrast, white color workers (executive/ managers) buy
more business suits. Therefore, marketers try to identify to occupational groups that
have an above-average interest in their products and services.
 Economic situation: Economic situation includes some variables like; income,
interest rates, savings have an effect on choices and during recession many companies
have been forces to redesign and reposition their offerings. A marketer dealing with
income sensitive goods and services should consider the personal income, savings,
and interest rates.
 Lifestyle: Lifestyle is a person‟s pattern of living as expressed in his or her activities,
interests and opinions. It profiles the whole pattern of interactions with the world. It
can also help to observe changes in values and buying behaviors. People coming from
the same culture, social class, and occupation may have quite different lifestyle.
Consumer’s life style can be:
 Self-oriented: these groups include principle oriented buyers who buy based on their
views of the world.
 Status oriented: base their purchase decisions on the actions and opinions of others.
 Action oriented: are buyers who are driven by their desire for activity, variety and
risk taking.
 Personality and self-concept: It is the unique psychological characteristics that
distinguish a person or group. It can be useful in analyzing behavior for particular

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product or brand choices. Brands are also supposed to have personalities attributed to
them by marketing and consumers are likely to choose those that match their own. To
understand consumer actions marketers must understand relationship between
consumers‟ self-image and possessions. Personality is usually described in terms of such
traits or characteristics as self-confidence, dominance, sociability, autonomy,
defensiveness, adaptability, and aggressiveness.
II. Social factors affecting consumer buying behavior
A consumer‟s behavior is also influenced by such social factors as the consumer‟s small
groups, family, and social roles and status.
 Group: Group represents two or more people who interact to accomplish individual or
mutual goals. A person‟s behavior is influenced by many small groups. Groups that have
a direct influence and to which a person belongs are called membership groups. In
contrast, reference groups serve as direct (face- to- face) or indirect point of comparisons
and have an influence on persons‟ behavior and attitudes. People often are influenced by
reference groups to which they do not belong. For example, an aspirational group is one
to which the individual wishes to belong, as when a teenage football player hopes to
plays someday for Ethiopian national team. Marketers try to identify the reference groups
of their target markets. Reference groups expose a person to new behaviors and lifestyles,
influence the person‟s attitudes and self -concept, and create pressures to conform that
may affect the person‟s product and brand choices.
 Opinion leaders: Opinion leaders are people within a reference group, because of special
skills, knowledge, personality or other characteristics, exerts social influence on others.
Many marketers try to identify opinion leaders for their products and direct marketing
efforts toward them. In other cases, marketers may use buzz marketing by enlisting or
even creating opinion leaders to spread the word about their brands.
 Word of mouth influence -the influence of personal words and recommendations of
trusted friends, associates, and other consumers on buying behavior.
 Online social networks -online social communities- blogs, social networking
websites, and virtual worlds- where people socialize or exchange information and
opinions. These are used by marketers to promote products and build customer

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relationships. Although most brands have a social media presence, this requires
marketers to be careful as they are hard to measure and control.
 Family: Family members can strongly influence buying behavior. The family is the most
important consumer buying organization in a society, it has been researched extensively
and marketers are interested in their internal roles. Moreover the typical roles of husbands
and wives involvement varies widely by product category, by usage in the buying process
and marketers need to adapt. In addition, children have a strong influence on all family
decisions. Buying roles change with evolving consumer lifestyles. For example, the wife
could traditionally be the main purchasing agent for the family in the areas of food,
household products, and clothing.
III. Cultural factors affecting consumer buying behavior
Cultural factors exert a broad and deep influence on consumer behavior. The marketer,
therefore, needs to understand the role played by the buyer‟s culture, sub culture, and social
class.
a. Culture: It is the set of basic values, perceptions, wants and behaviors learned by a
member of society from family and other important institutions. It is also a dominant
factor in shaping consumer‟s behavior as most human behaviors are learned. Culture is
the most basic causes of a person‟s wants and behavior. Human behavior is largely
learned. Every group has a culture. Therefore, Cultural influences on buying behavior
may vary greatly across and within countries. Marketers are always trying to spot cultural
shifts in order to create new products that might be wanted. For example, the cultural
shift toward greater concern about health and fitness has created a huge industry for
health and fitness services, exercise equipment and clothing, and lower fat and more
natural foods.
b. Subculture: It represents a group of people with shared value systems based on common
life experiences and situations. Each culture contains smaller subculture. Subcultures
include nationalities, religions, racial groups and geographic regions. Many subcultures
make up important market segments, and markets often design products and marketing
programs tailored to their needs.

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c. Social class: It represents relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors. Social class is a ranking with in a
society determined by the members of the society. Almost every society has some form
of social class structure. Social class is not determined by such single factor as income.
Instead, it is measured by a combination of income, occupation, education, wealth and
etc. Marketers are interested in social class because people within a given social class
tend to exhibit similar buying behavior. Social classes show distinct product and brand
preferences in areas such as clothing, home furnishings, leisure activity, and automobiles.
Social is not an indication of spending capability rather it is an indication of preferences
and lifestyle.
IV. Psychological factors affecting consumer buying behavior
A person‟s buying choices are further influenced by different major psychological factors:
 Motivation: A person acts at all because he or she experiences a need and all behaviors
start with a need. A need must be aroused or stimulated before it becomes a motive.
Thus, a motive is a need sufficiently pressing to direct the person to seek satisfaction of
the need. When a need is not satisfied it may lead to drive (motive). So in marketing
purchase results from a drive to satisfy some need patterns (motivation). There are two
most popular theories of human motivation.
 Freud suggested that people are unconscious about the forces that shape their
behavior and cannot understand them. Motivation researcher use techniques to search
for consumers‟ hidden needs.
 Maslow suggested that human needs are organized in a hierarchy (psychological,
safety, social, esteem and self-actualization needs). Person attempts to satisfy the
most basic needs first, moving to the next steps once the previous is finished or
satisfied.
 Perception: It is process by which an individual select, organize and interpret
information to form a meaningful picture of the world. A motivated person is ready to
act. How the person acts is influenced by his or her own perception of the situation. Since
behavior can take many forms a person gather information from the environment to help
in making decision of choice. What we perceive- the meaning we give something sensed-

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depends on the objects and our experiences. This influences a person in different ways as
perceptions are diverse because of the following three perceptive processes.
 Selective attention (paying attention by exception): People are exposed to a great
amount of stimuli every day. It is impossible for a person to pay attention to all these
stimuli. Therefore, Selective attention is the tendency for people to screen out most of
the information to which they are exposed.
 Selective distortion: It describes tendency of people to interpret information in a
way that will support what they already believe. Here new information is compared
with a person‟s existing frame of reference (experience/knowledge) if an
inconsistency is discovered; the new information will be selectively distorted to
conform to the established beliefs. For example, assume you want buy a certain
product called „x‟; you may hear a salesperson mention some good and bad points
about a competing product. Because you already have a strong preference to product
„y‟, you are likely to distort those points about the competing product in order to
conclude that product „x‟ is the better product. Marketers must understand the
mindset of consumers and how these will affect interpretations of advertising and
sales information.
 Selective retention (long term memory actively retain): People will forget much that
they learn, but will tend to retain information that supports their attitude and beliefs.
Selective retention means that consumers are more likely to memorize positive
characteristics of their favored brand, and forget such of a competing brand.
Therefore, marketers worry whether consumers will at all perceive their offers.
Consumers are worried whether they are affected by marketing messages without
knowing it-subliminal advertising-as there are so many out there.
 Learning: Learning is changing in an individual‟s behavior resulting from
observation and experience. Drive describes an internal stimulus calling for action
and it turns into a motive once directed at stimulus object. Cues determine when,
where and how a person responds influencing response in interest to buy the product.\
 Belief and attitude: Belief is a descriptive thought that a person holds about
something based on knowledge, opinion and faith and can make up brand and product

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images. Attitude describes person‟s consistently favorable or unfavorable evaluations,
feelings and tendencies toward an object or idea.
2.4 Consumer responses
Consumer response is the positive or negative feedback a company receives about its
products, services or business ethics. A consumer response can be solicited by the company
or initiated by a consumer. The response can include a letter or answers to questions about a
product or issue within the company.
Function
Customer response can help a company improve its overall quality of a product or service.
For example, if an automaker desires to know the overall customer satisfaction regarding a
new vehicle, it can send surveys to all of its customers. A company can send a postage paid
envelope to collect the information. Once the information is collected, the company can then
send it to the engineers, sales people and other departments.
Benefits
A consumer response can benefit a customer and a company. The company benefits because
it can gather information needed to enhance or correct a product. For example, if a bookshelf
is too difficult for customers to assemble, a company can collect the information and make
corrections to the product. Customers benefit from a consumer response because they can
voice their opinion about the product and compel a company to modify the product.
Time frame
There are different types of consumer responses. Among them are surveys, phone inquiries
and in-person questionnaires. The surveys include a set of questions about a product or
service. There might be multiple choice questions or blank lines for comments. The phone
inquiries can include a hotline set up by the company for customers to call or calls made to
the customers by representatives of the company. In some cases, the company may send a
representative to a public place to find people who have heard about or used the product or
service. The representative may ask questions and fill out paperwork provided by the
company.
Significance

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A consumer response has been significant in many industries. A cereal company may earn
more profits due to the response from children and their parents about a product. A clothing
retailer may find out why it's not selling merchandise in certain departments by collecting
information from its customers.
Six types of consumer responses:
1. See/Hear: the Perception Facet
2. Feel: the Affective or Emotional Facet
3. Think/understand: the Cognitive Facet
4. Connect: the Association Facet
5. Believe: the Persuasion Facet
6. Act/Do: the Behavior Face
2.5 Organizational behavior
Organizational behavior is the study of how individuals and groups interact within an
organization and how these interactions affect an organization‟s performance toward its goal
or goals. The field examines the impact of various factors on behavior within an
organization.
The focus of organizational behavior tends to center around employee productivity. For
example, organizational behavior studies have shown that employees who feel valued and
appreciated tend to be more motivated and productive, leading to increased profits for the
organization. However, organizational behavior can also focus on the ways in which
organizations can better manage, change and improve behavior in order to achieve desired
outcomes (i.e., productivity, employee well-being, or workplace satisfaction).
2.5.1 Benefits of understanding organizational behavior
Understanding organizational behavior can help companies and businesses create and
cultivate a positive culture and work environment that will ultimately improve the
organization as a whole.
Benefits of organizational behavior have been shown to include:
 Increased employee satisfaction
 Increased customer satisfaction
 Increased innovation

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 Increased productivity and performance
 Increased trust between employees and the company/management
 Better communication within the organization
 Bringing out leadership qualities of employees
 Employees are more likely to behave ethically
 Reduction in employee burnout
 Reduction in worker attrition and turnover
2.5.2 Elements of organizational behavior
Human behavior is a complex and multifaceted area of research that‟s constantly evolving
and changing with the times. In the realm of organizational behavior, the research thus far
has shown that four key elements contribute to human behavior within a workplace:
I. People: Everyone brings their own personality, values and communication style to a
workplace environment. The interaction of employees with work and with one another is
perhaps the most important element in a work environment.
Example: People are the most important element of organizational behavior. Their attitudes
and beliefs shape how the workplace operates, and how work is completed. For example,
someone who is highly motivated and enthusiastic about their work may inspire others to do
the same.
Some employees may value timeliness over perfection and prioritize meeting deadlines over
taking care of themselves. Others might value both equally, while still others might prioritize
self-care over the other two. It‟s important to create a team of individuals who can work
together effectively and efficiently, and who possess the values and personalities that are
well-suited to the job at hand. This will help ensure that the boundaries between work and
personal life are maintained, and that goals are met in a timely manner.
II. Structure: Refers to the relationships and roles of employees to one another and within
the company. Includes elements such as hierarchies, job descriptions, depart mentation
and compensation system.
Example: The structure of an organization can influence how work is carried out. A
hierarchical system with clear roles and responsibilities, for example, may encourage people
to work together in a structured, efficient manner.

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Some organizations maintain strict hierarchies and role definitions, while others choose to
adopt a less rigid, more collaborative approach. A chosen structure and its proper (or
improper) management can provide workers with clarity or lead to chaos and confusion.
These structural elements can dictate how effectively and comfortably employees are able to
suggest changes, ask for help and escalate problems. If your organization seems to struggle
with these issues and it is reflected in the behavior of the staff, it may be time to take a look
at the structures in place.
III. Technology: The machines, tools and resources provided to employees to perform their
job duties, work with customers and otherwise function within a role and as a part of the
organization.
Example: Technology can have a huge impact on organizational behavior. Automated
systems can streamline processes, making it easier for people to do their jobs. Likewise,
poorly-designed systems can easily grind production to a halt.
Have you ever been to a hospital that seems to be constantly out of essential supplies? Or a
retail establishment where the point-of-sale system reboots every 10 minutes? These
operational failures of supply chain systems can have a massive impact on both customer and
employee satisfaction. Ensuring that your employees have the tools necessary to perform
well in their roles is critical to the overall success of the company.
IV. External environments: Both internal and external environments included. This refers
both to physical environments (lighting, space, furniture, etc.) and broader conditions
(economy, customers, politics, etc.)
Critical to understanding organizational behavior is grasping that all four of these
components make up the culture of a company and the way in which the employees behave
within it. Company leaders can create change within their organization by pinpointing areas
of weakness and adjusting accordingly.
Example: The external environment can also have a significant impact on an organization.
Economic conditions, for example, can affect the availability of resources, while changes in
the law can create new challenges. Companies must be aware of their external environment
in order to adapt and remain competitive.

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Imagine for a moment a large and highly profitable company paying a CEO and top
executives large year-end bonuses, but claiming there‟s no “room in the budget” to hire
desperately needed staff or replace broken essential equipment. Employees receive the blame
and are assigned impersonal remediation modules on how to improve performance when
quotas are not met, are assaulted by customers while on the job or experience disciplinary
action after admitting to mistakes made while overworked due to staffing shortages.
Meanwhile, the economy is trash, most of the company‟s employees aren‟t paid a living
wage and the benefits provided by the company are sparse or nonexistent.
Tips for Improving Organizational Behavior
An organization fosters increased opportunity for success with an efficient and effective team
in a comfortable, safe environment. We‟ve put together some tips that can help you and your
team.
Hire Great Candidates
Choosing exceptional candidates during the hiring process will help your business thrive.
Paying said candidates what they‟re worth can help with this. Creating a job listing that
accurately reflects the role you‟re hiring for as well as the company‟s “vibe” will go a long
way in attracting the right kind of people for the job. It is also a good idea to hire for
personality and values rather than preexisting skills. Skills can be taught fairly easily, but the
same cannot often be said for personal qualities.
Build Leadership
A good leader can bring out the best in a staff and promote innovation, collaboration and
trust. Poor leaders will invariably hold teams back or break them apart, and it remains critical
that chosen leaders know how to and do so effectively.
Clearly Define Expectations and Goals
A clear set of rules, guidelines and goals builds the foundation upon which employees
operate. Rules and expectations should be clear with explicitly noted consequences, and they
should apply to everyone (yes, even management). Goals should be “SMART”: Specific,
Measurable, Achievable (or Actionable), Relevant (or Realistic) and Time-Bound.
Utilize Functional Technology

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It‟s only a half-truth that the poor workman blames his tools—you can‟t effectively wash
dishes with a hammer. A team cannot operate to its greatest capacity without efficient
systems, adequate resources and functional equipment. Ensuring your team is provided with
what they need in a timely manner will make a world of difference.
Motivate Your Team
Great motivation is internal, not created by barking orders or making demands. Employees
will feel motivated to do well when they know that they are valued as a person and not just a
worker, they feel as though their work matters and they fully understand the why and how of
what they‟re being asked to do.
Create a Positive Work Culture
Creating a work environment where employees feel safe, valued and respected can help
every organization improve. Investing in meaningful rewards, a relaxed atmosphere,
providing adequate and appropriate training and compensating staff appropriately go a long
way in promoting the happiness and well-being of employees, customers and a business
overall.

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Self-Check 2
1. Traditionally, marketing is defined as only as advertising and selling.
2. Direct mail involves sending physical marketing materials, like flyers or postcards, to
potential customers.
3. A service is an action of doing something for someone else.
1. _________is nothing but willingness of consumers to purchase products and services
as per their taste, need and of course pocket.
A. Direct marketing B. Consumer needs C. Consumer interest D. Business-to-consumer
2. _______it‟s a type of business model geared toward individual buyers.
3. _______is a form of advertising that communicates a marketing message directly to a
potential customer.
4. ______are the driving force behind every purchase decision.
5. ______refers to the marketing of products or services to other businesses and
organizations.
A. Marketing B.B2B marketing C. Physiological needs D. Security needs
6.____is a social and managerial process by which individuals and groups obtain what
they need and want through creating, delivering and exchanging products and value with
others.
7.______are needs directly related to human survival such as eating, drinking, and
maintaining a good state of health. This means that food products, beverages, and
medicines would be at this level (the base of the pyramid).

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8. ____ is about a human being's need to be protected. This includes everything from
access to housing to alarms and life insurance.

1. Types of consumer needs
2. Identify and respond to consumer needs?
3. List some advantages of telemarketing

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UNIT THREE: MARKETING STRATEGIES
and topics:
 Concept of marketing strategies
 Influences of marketing strategies
 Requirements of the marketing plan
 Understand marketing strategies
 Understand influences of marketing strategies
 Identify requirements of the marketing plan

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3.1 Concept of marketing strategies
A marketing strategy is a long-term plan for achieving a company's goals by understanding
the needs of customers and creating a distinct and sustainable competitive advantage. It
encompasses everything from determining who your customers are to deciding what
channels you use to reach those customers.
Marketing strategy describes the process of how businesses and organizations understand
their markets and their methods for influencing profitable customer action.
Marketing strategy is all about:
 Understanding who buys your products and services.
 Understanding how you‟ll motivate them to take profitable action.
 Understanding your competitors who are trying to do the same thing.
 Understanding how you‟ll measure marketing activities and refine your approach
moving forward.
A company‟s marketing strategy is its plan for reaching potential consumers and converting
them into paying customers for its goods and services. A marketing strategy includes:
 Research: Analysis of target markets, competition, pricing triggers, buying behaviors, and
more.
 Positioning: Differentiation in value promises, packaging look and feel, conversion
messaging, and more.
 Promotion: Actual marketing of products and services through content, relationships, and
experiences with the goal of influencing profitable customer action.
 Measurement: Proving value, learning from success and failure, and iterating future work to
fulfill marketing goals.
3.1.1 Components of marketing strategy
A Marketing Strategy uses high-level elements to determine a company‟s current value
position and outline a future marketing direction. It generally contains:
 A Marketing Outcome: The end result a company wishes to achieve
 A SWOT analysis: An internal and external review of an organization to determine its
strengths, weaknesses, opportunities, and threats
 The Target Audience: The ideal customer a company wants to reach

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 A Budget: The money allocated to marketing efforts
 A Product Mix: The analysis of product, price, place, and promotion the key
components in successfully marketing anything.
 Marketing Tactics: The actions taken to accomplish a marketing objective.
 A Content Schedule: A living document that blueprints when and where content will
be posted.
 A Marketing Timeline: A chronological plan, including an end date, of the
marketing strategy.
 Accountability: What success will look like and how to record it.
Steps to create marketing strategy:
1. Begin with a documented marketing plan: A strong marketing strategy requires
research and communication. A written plan with crucial information acts like a
roadmap for marketers to travel to your desired destination—the goals you aim to
influence.
2. Understand your target audience and the market: Researching customers, market
trends, and competition empowers marketers to differentiate products, pricing,
distribution, promotion, packaging, and positioning. Accurate research to direct
marketing efforts is essential for a marketing strategy—and team—to be successful.
3. Define your unique value proposition and key differentiators: In this step, marketing
strategists translate research into action. Marketing must influence product research and
development, brand identity with visuals and voice, and unique positioning and benefits
statements.
4. Set marketing goals and objectives: After marketing strategists understand the market
opportunity, they may set smart, measurable, achievable, relevant, and timely (SMART)
goals.
5. Identify the marketing approaches and media to reach your target audience: The
goal of marketing is to generate profitable customer action. Marketing strategy focuses
on stakeholders and practitioners by documenting marketing funnel stages, selecting the
marketing tactics with the greatest potential to influence the goals and objectives, and
defining the channels the organization will leverage to execute the plan.

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6. Execute and publish marketing activities: A marketing plan is only beneficial when a
company actualizes it. Marketing strategists must identify when campaigns will launch
and how contributors will collaborate with their resources to make the vision a reality.
7. Measure and analyze results: Successful marketers measure how their activities
influence the goals and objectives outlined in the marketing strategy. From there,
ideation from audits may lead to tests and iterations that may be even more influential in
achieving marketing goals.
3.1.2 Types of marketing strategies
1. Brand Positioning Strategy
A brand strategy is a comprehensive plan for linking your distinctive value to the appropriate
target at every point of contact.
Brand positioning occurs regardless of whether you consciously include it in your marketing
plan. You can affect this view proactively by designing your brand positioning before
publishing content and defining your brand voice first.
2. Public Relations Strategy
Public relations is responsible for establishing and maintaining a positive connection with the
public. To avoid falling behind, marketers must learn how to connect their public relations
activities efficiently with other aspects of marketing.
Your public relations activities must target the appropriate audiences using the right
strategies, and each strategy should have quantifiable objectives.
3. Product Marketing Strategy
Product marketing is like the interface between sales, marketing, and product development.
The majority of product marketing operations often concentrate in the bottom third of the
marketing funnel the thing that assists someone in making a final purchase decision and
converting to successful, loyal customers. You can strategize the product marketing for better
results.
4. Digital Marketing Strategy
A well-structured digital marketing plan is required to succeed as a business in today‟s digital
world.
5. Inbound Marketing Strategy

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This strategy for attracting and engaging customers creates an organization that provides
value and earns trust.
Rather than interrupting individuals who have not indicated an interest in your
products, inbound marketing seeks to attract those who have previously acknowledged a
need.
6. SEO Content Strategy
SEO is mainly concerned with content. With content marketing, SEO as we know it
accelerated and gained popularity. Content marketers today have a greater potential than ever
to leverage SEO-driven strategy.
7. Content Marketing Strategy
The content strategy ends in the publication of successful content. While you may have
prepared your content and blog pieces, promoting them and ensuring that they reach your
audience is an entirely different challenge.
8. Social Media Content Strategy
A social media content strategy details the information you publish on various social media
platforms while also defining how to connect with your audience.
This strategy saves you time and helps you manage your social media accounts more
effectively.
9. Email Marketing Strategy
Email marketing strategy is crucial for any business because, through emails, organizations
engage with customers, segment them, and strategize their further marketing plans.
10. Video Marketing Strategy
Video marketing is an ever-increasing trend. The returns of marketing from YouTube and
TikTok are proof. Producing high-quality video content takes time.
11. Internal Marketing Strategy
A marketing strategy that focuses on fostering employee loyalty, competence, and
engagement by “selling” your product and vision to them is called an internal marketing
strategy.
12. Editorial Strategy

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An editorial plan specifies the content formats, distribution channels, and procedures that
power your marketing activities and enable you to achieve your marketing objectives.
It is always focused on your target audience. As a result, an editorial strategy establishes
clear criteria and expectations for content creation based on what your audience wants.
13. Ecommerce Marketing Strategy
Marketing is the first consideration when starting an Ecommerce shop. Once you‟ve decided
on what to offer, you‟ll probably wonder how to increase traffic to your site and convert that
traffic into sales.
3.2 Influences of marketing strategies
Influence of marketing strategies on consumer decision making
Marketing strategies influence the actions and decisions of a consumer.
Consumer decision-making process is the way in which your customers identify their
wants and needs, research solutions for their needs, and make a decision to purchase. This
process also includes periods of consideration and post-purchase evaluation.
I. Engage with your Audience Online and Offline
In this digital world, everyone is hyper-connected and consume content on multiple platforms
and devices. Companies can start a conversation on various social media platforms and
engage their audience in it. However, consumers have now become more skeptical of
businesses and more cautious with their spending on a particular product or service. So, it is
important to engage customers in conversations where they perceive your message and
intentions as sincere. Also, businesses should inspire them to advocate their product and
service on their behalf by engaging them offline.
II. Understand the Needs of your Potential Customers
To influence consumers‟ decisions about purchasing a product or service, companies need to
understand their requirements and identify how to deliver a marketing message that appeals
to them. Many businesses believe that they can use social media to influence or change the
way customers think. But they can only win over people by creating mobile-friendly content
that fits their needs and preferences. If they are not sure what consumers are looking for, then
they should directly ask them through various social media platforms or emails.

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III. Apply the Golden Rule
Being attractive has its perks, and it can increase a business‟ likability and its trustworthiness.
Striking website design has the power to influence customers and compel them to buy
products and services of a particular company. Out of some of the most fantastic design
techniques that are used to make a website look captivating, one is the Golden Ration. It is a
design concept that is concerned with proportions in areas, such as art, design, and
architecture. It can be used to work out the most visually appealing font size, proportions,
margins, column widths, and line heights.
IV. Use the Foot-in-the-Door Technique
This concept is used to increase compliance rates and influence consumers to make a
purchase decision. In simple words, it is a tactic that aims at getting a person to a bigger
request by making them agree to a modest request first. Businesses use these techniques to
influence consumer‟s behavior by asking them for something small in the first place. If they
comply with their first small request, then they will be more likely to feel obliged to act
consistently to the next and more significant request. So, by using this compliance tactic,
companies can make the customers opt for their products and services.
V. Be Available 24/7 for your Customers
If companies want to influence consumer behavior, then they need to focus on making
emotional connections with them through positive customer experiences. And that‟s possible
when they are available for their consumers twenty-four hours a day, and seven days a week
to resolve their queries. A study found that 42% of customers who complain on social media
platforms expect a response within 60 minutes. Further, 57% expect the response time at
night and on weekends.
So, these were a few strategies that businesses can use to influence consumer behavior and
make them choose their product or service over others. Since we are living in the digital
world, more focus should be made on online marketing strategies than offline because people
are good at tuning out brand-related content on social media platforms, like Facebook,
Twitter, and LinkedIn.

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Influence of marketing strategies on consumer behavior
Consumers are influenced by marketing in many ways. It is important for marketers to
understand how marketing affects consumer behavior, which can be altered or shifted
towards certain brands as a result of their efforts. To better understand this, let‟s look at how
marketing influences consumer behavior through three factors: recall and memory, emotional
response, and loyalty.
These three consumer behaviors are heavily impacted by personal factors as well as
marketing messages and strategies. By understanding how these behaviors can be influenced,
marketers can create more effective campaigns that better target their audiences and reach
them on an emotional level.
1. Recall and Memory of Your Brand
Memory plays a vital role in how marketing affects consumer behavior. The ability to recall
past experiences and impressions can influence the decisions we make when it comes to
purchasing products or services. Memory, therefore, should be considered when marketers
craft marketing campaigns to better reach their target audience.
Marketing campaigns rely not only on the rational motivations associated with making a
purchase but also on psychological motivations that have been encoded in our memories
from past experiences.
By understanding how memory affects consumer behavior, marketers can better understand
which psychological factors influence human behavior when it comes to buying products and
services. This understanding can then be used to create marketing campaigns that are tailored
for specific audiences to more successfully reach their target consumer.
2. Emotional Response to Your Brand
As a business, understanding an audience's emotional response to your brand is an important
factor in driving customer behaviors and decisions. Psychological and social factors has a
profound impact on how marketing influences consumer behavior when it comes to how
consumers feel about your brand.
By understanding how emotional response affects customer behavior, businesses can create
marketing strategies that target customers‟ emotions. This will help them shape their brand
and create a stronger relationship with the market they are trying to reach.

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Companies must also take into account current trends and buying behaviors when creating
campaigns in order to remain relevant and stay ahead of the competition.
3. Loyalty to Your Brand
Loyalty is an important factor in driving customer acquisition and retention. When customers
show preference to certain brands consistently, they are more likely to make purchases from
that brand over others. Cultivating brand loyalty can lead to more repeat customers who can
provide your business with long-term revenue and growth.
Additionally, loyalty can reinforce the quality of your product or service, influence positive
consumer beliefs and lead to higher customer satisfaction and purchase decision.
By understanding the trends in customer loyalty, businesses can create strategies to better
engage their audience and build relationships with their most loyal customers. This will help
attract more new customers while also retaining the existing ones.
3.3 Legal and ethical obligations requirements
Code of practice
A code of practice can be a document that complements occupational health and safety laws
and regulations to provide detailed practical guidance on how to comply with legal
obligations, and should be followed unless another solution with the same or better health
and safety standard is in place, or may be a document for the same purpose published by a
self-regulating body to be followed by member organizations.
Codes of practice published by governments do not replace the occupational health and
safety laws and regulations, and are generally issued in terms of those laws and regulations.
They are intended to help understand how to comply with the requirements of regulations. A
workplace inspector can refer to a code of practice when issuing an improvement or
prohibition notice, and they may be admissible in court proceedings. A court may use a code
of practice to establish what is reasonably practicable action to manage a specific risk.
Equivalent or better ways of achieving the required work health and safety may be possible,
so compliance with codes of practice is not usually mandatory, providing that any alternative
systems used provide a standard of health and safety equal to or better than those
recommended by the code of practice.

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Organizational codes of practice do not have the same authority under law, but serve a
similar purpose. Member organizations generally undertake to comply with the codes of
practice as a condition of membership and may lose membership if found to be in violation
of the code.
Cultural expectations and influences
Businesses interested in marketing to various cultures and demographics must be aware of
the buying behaviors of their potential customers. To market a product effectively, keep
engaged with the wants and needs of your multicultural consumers. Marketers have long
recognized that traditional or mainstream marketing techniques do not work for every
demographic. You need a different marketing plan to sell clothes in France than you would if
you were selling the same clothes in the U.S.; consumers in different markets perceive
advertising and price point in different ways. Research the market to ascertain the key
differences between the communities you want to market to, and then adjust your marketing
practices to accommodate the multicultural marketplace.
Ethical principles
A marketing strategy details how a business can offer products and services to satisfy the
needs of members of a target market. Ethical marketing strategies ensure that the needs are
real and that the products and services meet those needs. Over the long term, an ethical
marketing strategy is effective because customers derive the benefits they expect from using
the products or services your company offers.
Regulation
A highly regulated industry is any type of business or industry that is controlled by
government rules and regulations. Healthcare, pharmaceuticals, alcohol, tobacco, finance and
motor vehicle manufacturing are all highly regulated industries.
Marketing teams in a highly regulated industry face several challenges when advertising and
trying to reach their target audiences in personal, effective ways, due largely in part to the
guidelines they‟re required to follow as a highly regulated industry.
For example, when marketing alcohol and tobacco products, platforms like Google and
Facebook have strict policies in place prohibiting alcohol and tobacco promotion, creating
several obstacles for companies looking to reach people.

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Understanding the Regulatory Landscape
Businesses operating in a highly regulated industry have to maintain regulatory compliance,
which is the adherence to the laws, guidelines and specifications relevant to a business in any
highly regulated industry. Violating or failing to follow regulatory compliance requirements
can result in consequences like legal punishment, federal fines and a significant hit to your
company‟s reputation.
Regulations are generally enacted to protect someone — like the general public or your
employees — or something — like the integrity of commerce and business processes.
Regulatory compliance can be present across virtually all industries, as well as within the
workplace.

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Self-Check 3
1. Loyalty is an important factor in driving customer acquisition and retention.
2. Understanding an audience's emotional response to your brand is an important factor
in driving customer behaviors and decisions.
3. Memory plays a vital role in how marketing affects consumer behavior.
1. ________is a long-term plan for achieving a company's goals by understanding the
needs of customers and creating a distinct and sustainable competitive advantage.
A. Consumer decision-making process B. marketing strategy C.All are correct
2. _______is the way in which your customers identify their wants and needs, research
solutions for their needs, and make a decision to purchase.
A. Consumer decision-making process B. marketing strategy C.All are correct
1. How influence of marketing strategies on consumer behavior?
2. List some of influence of marketing strategies on consumer decision making.

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Reference
 PHILIP KOTLER, Principles of Marketing, fourth edition
 Paul Hague, A practical guide line to Market Research
 Dr.Rashmi Ranjeeta Das, PRINCIPLES OF MARKETING
 Rudani R.B – Basics of Marketing Management – S. Chand
 Kotler, Philip, Gary Armstrong, PrafullaAgnihotri and AhsanUlHaque.Principlesof
Marketing. 13thedition. Pearson Education

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Developers Profile
No Name Qualification Region College Mobile E-mail
number
1 TADDESE BUSINESS A.A Lideta 0922934005 tadde.t21@gmail.com
TESFAYE GUTA ADMINISTRATION(MBA) Manufacturing
College
2 ENDALE MESFIN Marketing and Sales A.A Addis Ketema 0912054592 endalemesfin27@gmail.com
BERHE Management (BA) Industrial
Marketing Management College
(MA)
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MO1-Analyzing Customer Behaviour

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Marketing and Sales Management

Module Title: Analyzing Consumer Behavior for

Prepared by: Ministry of Labor and Skills

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Executives Executives might ask for major efforts such as a website

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2.3.2 Factors affecting consumer buying behavior

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Part-III: Answer the following questions accordingly

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