Evaluation of Alternatives: After gathering all relevant information, consumers establish criteria for evaluation, features that they may want or does not want. Marketers try to influence decisions by giving multiple alternatives within brands. 4. Purchase decision: At this stage, the consumer has already made a decision regarding buying alternative, product, package, store, method of purchase, etc. At this stage, the marketer can include schemes on products, train sales employees to be cordial so that purchase decision is finally converted to a purchase.
The Engel, Kollet, Blackwell model sees consumer decision making process as creating a need then making sense of the need taking into consideration personal characteristics and external factors. The Howard-Sheth model is like the previous model however instead of just taking into consideration the import of the need consumer also looks at brand choice and if there is any negativity associated with the brand before the purchase is made. Avinash Kaushik came up with his model known as: See, Think, Do and Care (STDC). This is where the consumer becomes aware of a need or want, then thinks about solutions in acquiring that need, after which the consumer is looking to purchase. The final stage is where companies show how much they value their loyalty in purchasing a product more than once.
2- Marketing Strategy: It can be defined as Firm’s plan to unify its all the targets and goals of Marketing into one single strategic plan. An amazing marketing strategy can be achieved by analyzing the market and paying attention on its product, and the needs of its users to attain the sustainability and the higher profits. It can be further identified with set of segments on which Marketing depends upon, via focusing on targeted markets by posturing the product or its services under positioning method. Segmenting, Targeting & Positioning It assists the organization to indentify customer needs, opportunities in the market, and plan accordingly to target specific areas for better business. It can be classified in behavioral, demographical, psychographical, and geographical aspects of segmentation.
Competition forms an integral part of any business. It is the reason why companies constantly innovate and perform better as it is a determinant in defining a company’s success or failure. A competitive strategy will enable a company to position itself better from other forces that determines industry competition (Porter, M. E., 1985). Two key concept surrounds a competitive strategy: attractiveness of industries for long-term profitability and factors affecting it and determinant of relative competition within an industry. Porter’s five forces affect the attractiveness of an industry and those forces are to be considered when devising a strategy for the firm: • Threat of entry of new competitors: the price fixed by the firm, which will deter
To set up a competitive advantage and enhance productivity, associations must see their clients, as well as, their opposition. It is noted that porters five forces analysis turned into an important part in any official’s business toolbox. The model gives direction to help structure key choice listing to make deciding industry engaging quality elements adding to the force of focused competition, the threat of new entrants and substitute commodities, and the bargaining power of customers and suppliers. Furthermore, depending upon a combination of these forces, approaches could be determined whether to enter an industry new to the association or to appropriate forces contributing to low business attractiveness (Fyall & Garrod, 2005). It seems porter 's five forces model depends intensely on building up the attractiveness of an industry.
RefreshNow: Case Study Question 1 RefreshNow should consider the cost of product implementation; such may include the need for more in-house staff to support the implementation, which includes such activities as marketing and advertising. The company should also consider the competitive environment with a focus on their competitors, the competitors pricing strategies, their market share. Another significant factor the company should consider is the profit potential with a focus on the product’s potential impact on bottom-line revenue. Focus should not only be on the product itself but also on its potential to open more doors to new opportunities for revenue. Question 2 Solution Price per Unit $2 Variable Cost per Unit $1.9 Total Fixed Cost$40,000,000
Ailawadi, Lehmann & Neslin (2003) define brand equity as “outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name” positing that, the advantages a product attains as a result of the power it’s brand name has. Yoo et al. (2000) also describe it as “the difference in consumer choice between the focal branded product and an unbranded product given the same level of product features”. Yoo and Donthu (1997) further tended to the estimation question by making and testing the psychometric properties of an arrangement of scales trying to gauge customer based brand equity. Aaker (1991) defines it “as a set of brand assets and liabilities linked to a brand, its name and symbol that add to or
(Anon, 2009) To better comprehend the exercises through which a firm forms competitive advantage and makes shareholder value, it is convenient to disparate the business framework into an arrangement of value generating activities alluded to as the value chain. The value chain model is a valuable investigation instrument for characterizing an association's core competencies and the exercises in which it can peruse leverage by understanding expenses in a better way and crushing them out of the value adding activities. Also, through differentiation by concentrating on those activities connected with core competencies and capabilities so as to perform them better than contenders do. (Netmba.com,
This literature review would try to analyse and review previous related literature. It would review the communication process, marketing communication and decision making process of the consumer that is important for success in a market. Thus, the success of an organization depends on their ability to accurately communicate to consumers, which would help their decision making process. More importantly, this chapter would also explain the theoretical framework for this study. It starts with introducing the communication process, marketing environment in general and marketing communication.