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The effect of advertising on consumer behavior
Influence of advertising on consumer behavior
The influence of advertising on consumer behavior
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Industry
There are three separate market segments: road bikes, mountain bikes, and youth bikes. Each of these segments range in differences such as size, price, product sensitivity, product preferences, and consumer viewing habits. Frequently, customers were interested in finding the lowest price to fulfill their needs. Our firm speculated the upgrading the mountain bike would encourage our customers to spend more money for a better quality bike; however, we discovered that customers were not interested in paying the extra money for an improved bike.
All of these factors are important to monitor as this will directly affect the decision making process. Bike size and price range will help to determine the size of the market as far as existing competitors and estimate the base price in each market segment. Product dimension sensitivity and preference indicates the expectation of the products from our consumer’s viewpoint. It is important to interpret the market segment reports and to analyze how the segments are influenced by advertisement such as televisions, magazines and internet. It is important to invest money in advertisement media to attract consumer in each market segment without over spending or under spending. The media viewing habits help to determine the best way to reach the customer for each segment.
Customers were looking for a well branded bike with high quality and the lowest price. Depending on the market segments, the customers had different preferences of what they wanted from a company. Customers influenced by advertisement options, price, quality, public relations, and many other factors that strongly altered their buying decision.
The segments changed throughout the entire simulation. In the beginning, we ...
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...d our money in each segment. For example, in the first year we were given the option to spend $500,000 to invest in advertising. We decided on using all $500,000 which gave us the highest awareness and shareholder value for that year. As the rollovers continued we made a few errors in terms of financing our budget for marketing, which mirrored in our attempt to sell the highest amount of bikes.
Conclusion
Each rollover taught us a valuable lesson, from pricing strategy to which direction we wanted our company to move, to gaining ultimate control over the company. By gaining more access per rollover, we were able to figure out the different areas of the simulation slowly. We learned how to control each internal area and the range of interconnected between all of those areas. In the end, we had to be able to make changes that positively altered our other operations.
Marketing research is the systematic design, collection, analysis, and reporting of data and its findings relevant to the specific marketing situation that a company faces (Kotler, 2012). By researching the motorcycle rider, Allstate is able to identify who they are and what they experience. In 2008, Allstate conducted a “Who’s Behind the Helmet” survey. They defined their qualifications as a motorcycle owner who is 18 years of age or older with an income of $50,000 or more. (Floyd, 2008). The 500 person sample size produced insightful and interesting details for Allstate. Jeff...
Delivering the requested number of products successfully matching different market segments, consumers, and their expectations in terms of price, age, reliability and ideal positioning on market perceptual map (graph above).
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
The first strategic alternative for Harley-Davidson (HD) to address is that of adjusting pricing. Throughout the years HD has been known for its ability to provide high quality motorcycles to its customers, however this quality comes at a high price. To those customers who are willing and able to pay HD’s higher price for quality the present pricing schedule is acceptable. Unfortunately, to those unable to pay this higher price HD’s motorcycles are unattainable making competitor bike financially more appealing. In order to increase HD’s sales, and consequently in...
The aim of this report is to therefore assess the following elements of marketing by explaining how each one will be incorporated into marketing the SmartTrainer.
At the beginning of the Glo Bus simulation our team developed a strategy that would allow us to compete with the other seven teams and put us in a position to gain a competitive edge. During the first few phases we were able to give a strong showing, however as the game progressed it was clear that other teams were implementing a similar strategy and making headway into our space. Reacting to the market changes was showing negative effects on our growth so we developed a new strategy to set us apart and allow our company to compete.
This advertisement portfolio shows two print ads and a TV commercial ad that Acme Widget wants to use to advertise its new bicycle. This portfolio intends to motivate adult bike riders to buy the new Acme Widget beach cruiser bicycle that is going to be lunched on its 125th Anniversary. The target market of Acme Widget bicycle is adult bike drivers. This is because they cover the large percentage of bike riders in the United States. This makes is a good target market of Acme Widget.
Brand selection: the advertisements, messages and discounts offered consumers to try something new with lower price for a variety of product, restaurant menu, branded handbag and so on.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Harley Davidson is unique in that their customers are some of the most loyal. Not only is Harley Davidson a product, but it has morphed more so into a culture of loyalty. The customers are typically for life, displaying the four buying behaviors of loyal customers. The customers make regular or repeat purchases, purchase everything possible that could be used, encourages others to buy, and are immune to competitors. Much of the loyalty Harley Davidson has been a direct result of listening to their customers.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people, which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affects the products in two ways. Firstly, by basic demand, which builds consumer desires for old products of the company and secondly, refers to a new brand of the company.
There are five categories of motorcycles can be found in the world. Each of motorcycles has their advantages that give convenience and satisfaction for people. The categories of motorcycles such as cruiser, sport bike, standard, dual purpose and dirt bike. The categories of motorcycles can be recognized as seventh category fro...
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
Even with commodities, there are quite a few parameters which brands can use to position themselves to capture a place in the consumer’s memory and consequently in their shopping basket. A few of the more widely accepted of them are: Consistency of Product Quality, Customization of the product to the extent possible, Providing a wider range of products, Identifying the most profit generating segments of the market and modifying or adding an offering to cater to their specific needs, Unique packaging, Emotional Branding and even basing branding on building a unique image to the extent of professing to have a brand personality. In fact focusing on getting consumers to build an emotional identification with the brand and its personality has a far longer lasting effect and builds far greater loyalty than focusing on just functional and utility attributes which a competitor would also able to easily match if not surpass.