Professional Documents
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Consumer Behavior
Consumer Behavior
Need to study ?
You cannot take the consumer for granted any more
Therefore a sound understanding of consumer behavior
is essential for the long run success of any marketing
program
Learning Model
This model suggests that human behavior is based on some core
concepts the drives, stimuli, cues, responses and
reinforcements which determine the human needs and wants and
needs satisfying behavior.
Drive A strong internal stimulus which compels action.
Stimuli These are inputs which are capable of arousing drives
or motives.
Cues It is a sign or signal which acts as a stimulus to a
particular drive.
Response The way or mode in which an individual reacts to
the stimuli.
Learning Model
Buying Decision
Consumer Buying Behavior-Consumer buying behavior is the study of an
individual or a household that purchases products for personal consumption.
The process of buying behavior is shown in the following figure
Buying Situations
It is not only products differ. Even the buying situation differs. Each time the buyer
is to take a purchase decision, it may or may not be the same as the previous one.
The differentiation between the two buying situations may be caused by the
absence of any or all of the following factors.
1. Awareness about competing brands in a product group.
2. Customer has a decision criteria and
3. Customer is able to evaluate and decide on his choice.
Viewed against these parameters ,one may observe that it is not the product that
differentiates one buying situation from another; rather it is the time that the buyer
spends in learning and evaluating the alternatives or finally selecting one of
them .Howard and Sheth have described these buying situations as being:
1. Routinized response behavior
2. Limited problem solving and
3. Extensive problem solving.
Marketing Strategy
Market Segmentation
Product Classification & Features
Channel Distribution & Promotion
Background of watch
It is difficult to imagine a world without clocks. People in
the modern economy depends on the ability to measure
time.
Obelisk Shaped Sundials (Egypt)
Mechanical Clock (Italy & England Mid Fourteenth
Century)
Wrist Watch (Queen of Naples)
Japan
Hong Kong
Others
Switzerland
Japan
Hong Kong
Others
19%
15%
9%
4%
55%
22%
77%
1993 World Production of Watch and Movement in Value (Millions Swiss Francs)
Branding
Developing
a
brand
strategy can be one of the
most difficult steps in the
marketing plan process.
Rolex as a Brand
Marketing strategy
Marketing strategy is a process that can allow an
organization to concentrate its limited resources on
the greatest opportunities to increase sales and
achieve a sustainable competitive advantage.
A marketing strategy should be centered around the
key concept that customer satisfaction is the main
The following Marketing Strategy Rolex follow to
goal.
get a sustainable position in the market
Single Market Strategy (Rich, Athletes, Celebrities
Etc)
First in Strategy (Waterproof Patent)
Market Opportunist (Harwoods Company)
Luxury Market
Luxury Adventure
Exclusive Customer
Fashion
Prestige Sports
Bond 007
Market Segment
WEALTHY CUSTOMER
CELEBRITY
SPORTSMAN/ ATHLETES
EXCLUSIVE CUSTOMER
ASTRONAUT
Competitive Analysis
Value in mio CHF
Countries
2003
2002
2001
USA
Change in
2003/2002
2003/2001
(+)
(-)
(+)
(-)
3.50%
-8.30%
1534.
1507.6 1482 1.80%
1
896.7 997.4
978
10.10
%
556.7 610.4
667.4
-8.80%
538.7 519.7
468
3.70%
515.9 580.6
718.7
11.10
%
Japan
France
UK
Germany
China
UAE
Russia
179.6
80.4
212.2 221.3
127.1 101.7
16.60%
15.10%
123.30
451.10
%
%
176.4
-4.10% 20.30%
103 25.00%
23.40%
32.6
28.20%
Market positioning
6
5
4
3
2
Growth 2001-2003
Growth 2002-2003
1
0
-1
Product Classification
1. Pocket & Purse Watch (Jeweler y)
2. Wrist Watch (Premium & Sports)
With following Features :
Accuracy (Chronometer)
Quality (Swiss Made)
Design (1933, The Masterpiece of Watch
Championship)
All Proof (Greatest Triumph in Watch
Making)
Channel Distribution
Executing an effective channel sales strategy is a
critical component of a successful channel business
endeavor. Its formulation and design depends on
thorough and careful analysis and planning.
It follows certain steps that begin with understanding
your channels, down to the continuous management
of recruited partners.
Probably one of the most vital and challenging steps
in formulating channel sales strategy is selecting the
potential channel partners.
Channel development of Rolex by following examples:
Promotion
Promotion is one of the four elements of marketing
mix (product, price, promotion, distribution). It is the
communication link between sellers and buyers for
the purpose of influencing, informing, or persuading
a potential buyer's purchasing decision
Rolex use Brand
Ambassador to
promote its Product
SWOT of Rolex
Strengths
Quality
Commitment to Excellence : The Rolex
name itself is well established
Reputation : Well known name.
Manage demand
Swiss-Made : It is considered a luxurious
item
Mechanical Movement
Advertising
Loyal customers
Market share leadership
Unique products
Strong financial position
High R&D
Innovation
Opportunities
Expansion of Luxury Brands
Lower Price Levels
Market Share Snapshot
Maintain Exclusivity of Brand
Weaknesses
Style limitations
High price limits market
Myopic Management
Threats
Desirability Diminished Relative to other
Luxury Brands
Change in trend : Cheaper technology ,
Economic slowdown
Product substitution
Expensive, flashy items are seen as
wasteful and frivolous