2. • An individual who buys products or services for personal use
and not for manufacture or resale.
• A consumer is someone who can make the decision whether
or not to purchase an item at the store, and someone who
can be influenced by marketing and advertisements.
• Whenever someone goes to a store and purchases a toy,
shirt, beverage, or anything else, they are making that
decision as a consumer.
3. Parameter
Traditional
Modern
Source of Income
Single source
Multiple sources
Disposable Income
Less
More
Choice
Less product choices Plenty of choices
Product awareness
Relatively low
Sound knowledge
Spending pattern
Preferred saving
Prefer to spend
Shopping pattern
Functional
Lifestyle & comfort
Technology
Low need and
availability
Habituated
5. • Youth population(20-40 yrs) is more than
54%
(Increase in healthcare services resulted in declining death rate and
rise in life expectancy)
• Increased migration from rural to urban
areas( approx 32%)
(workforce moving to urban areas in search of better education,
healthcare, lifestyle and opportunities)
• Cultural Transitions
(Retain the core but flexible to change, Amalgamation of New and
Old)
6. • GDP- growing at an average rate of 6% for past
five years
• Transition:
Lower Income
Group (18%)
Middle Income
Group(56%)
Higher Income
Group(26%)
• Per capita income: Rs 5,729 per month, increased
by 11.7% compared to previous fiscal.
• Increasing disposable income.
(estimated to be $ 1700 p.a. by 2014)
• Av. Industrial Growth Rate is 3.7% last year,
showing increased consumption.
8. Rise in income level
Rise in living standard
Higher purchasing power
Higher aspirations for luxury and lifestyle
Rising demand for goods and services
9. • Youth deviating from local products to
branded products.
• Customers like to be associated with a
brand.
• Shift in attitude: from need based to choice
based.
• Shift from unorganized retailing to
organized retailing.
10. • Rising level of dependency on technology.
• Impact of television.
• Changing mediums of promotion and
distribution
• 24X7 shopping through e-commerce.
• Call Centre Boomers:
(being set up even at rural places, provide enough employment
opportunities)
19. 1. Languages
2. Symbols and
signs
3. Rituals and
customs
4. Traditions
• Tailor-made
communication in tune
with regional language
• Integrate within marketing
mix to get connected.
• Anticipate and touch
through product and
promotion
20. 1. Individual and
Family
2. Society through
conformity
3. Success and growth
4. Age and
youthfulness
5. Happiness and
adaptability
6. Religion and
spirituality
• Address individual from the
backdrop of the family
• Bank upon deep rooted
societal values for quick
connection
• Link individual achievement
with group cohesiveness
• Appreciate age and role of
patriarch
• Create your message on
positive sides of life
• May link with brand building
activity for unique positioning
21.
22. • Mc Donald projected itself into Indian market
by valuing consumer‟s eating habits and
sustained itself by valuing Indian purchasing
power.
• Cadbury identified the ritual of gifting sweets
to people during festivals and now enjoying a
vast customer base.
• General Mills (Pillsbury Atta) targeted Indian
mothers by showcasing the new behavioral
changes occurring in their children.
23.
24.
25. • Femina, magazine for women, communicated
the core value of India i.e. “…know nothing
can stop me from trying and breaking chains
and flying…”
• Nestle got positive feedback from customer
by launching “Maggi vegetable Atta noodles”
working on the platform of Indian definition of
health “Health is wealth”.
• Horlicks Mother- prioritizing families health,
Moov Mother- ensures happiness of family in
turn gets recharged by Moov.
• Big Bazaar- projects people and happiness
with catchline like “Khushiyon se bhari jholi”
26.
27. 1.
• Need Recognition And Problem Awareness
2.
• Information Search
3.
• Evaluation Of Alternatives
4.
• Purchase
5.
• Post-Purchase Evaluation
28.
29. • Selective Attention is the phenomenon of
being able to focus one's attention on a
particular stimulus while filtering out a
range of other stimuli.
30. • Selective retention, is the process when
people more accurately remember
messages that are closer to their interests,
values and beliefs, than those that are in
contrast with their values and beliefs,
selecting what to keep in the memory,
narrowing the informational flow.
31. • Selective distortion is a term that refers
to the tendency of people to interpret
information in a way that will support what
they already believe.
32. • In US, Coors changed its label from
“Banquet Beer” to “Original Draft”,
consumers claimed the taste had changed
even though the formulation had not.
• The case cites the example of Rotarians,
who were given same portions under the
labels “Medium” and “Large”. Those who
received “Medium” meals ate more.
33. • Decision framing is a manner in which
choices are presented to and seen by a
decision maker
• Consumers can be given a „nudge‟ via
some small features in the environment
that attracts attention and alters behaviour
• Mental accounting refers to the way
consumers code, categorise and evaluate
final outcomes of choices
34. • According to Richard Thaler, mental
accounting is based on a set of core
principles:1. Consumers tend to segregate gains
2. Consumers tend to integrate losses
3. Consumers tend to integrate smaller
losses with larger gains
4. Consumers tend to segregate small gains
from large losses
35.
36. • Toyota did not have a presence in the
luxury car segment, so it introduced a new
line of cars under the Lexus brand
37. • In case of packaged food products,
nutritional facts are given on the
packaging are standard for one serving.
• But due to variations in the actual serving
size offered, consumers are often left with
incorrect information
38. • Companies give innovative names to their
products to create a perception of offering
more value for money
• Names such as Super Size, Jumbo,
Whopper and Petite etc. create confusion
in consumer‟s mind, which is then used by
the companies to sell the products
39.
40. • In case of packaged food products,
nutritional facts are given on the
packaging are standard for one serving.
• But due to variations in the actual serving
size offered, consumers are often left with
incorrect information
41. • From the case study, we observe that
when club members were given the same
quantity of food under different serving
labels, Medium and Large, the ones who
had Medium labelled meals ate more
42. • Instead of offering a small, medium or large
serving, Starbucks has named its drinks as
Tall, Grande and Venti
• Can be taken up as an example of good
branding
• It fits into Starbucks selling itself as a lifestyle
brand
• Naming caters to a sense of luxury. For e.g.
having a Grande Latte Half-Caf is more
glamorous than a having just a Regular
Decaf coffee
43. False health benefit claims by Pom Wonderful that taking in pomegranate
juice reduces the risk of cancer. Product pushers have inflated the medical
benefits of their products to woo the self-conscious . For instance, here are
three recent examples of egregiously misleading health and fitness ads.
Reebok's EasyTone Shoes: Reebok ran a series of ads on its easy tone
and RunTone shoes featuring lithe and toned models professing the
benefits of the footwear's special toning soles. It claimed that the muscles
would be toned upto 11 percent more than when you wear regular
sneakers. The LA Times reported that an FTC investigation found the only
thing that EasyTone shoes actually did was make it uncomfortable to walk.
As a result, Reebok was forced to refund more than $25 million in
purchases
44. Airborne Herbal Supplement: The result of a second grade
teacher's research, the herbal supplement became a national
phenomenon after it appeared to finally provide the
cure/prevention for the common cold that science had yet to
figure out.
Dannon Activia Yoghurt: In 2009, a federal judge found that
Dannon's claims that a daily serving of Activia would relieve
irregularity and help expedite the digestion process were
totally unsubstantiated. It turned out the company had been
charging a 30% premium on the "probiotic" yogurts over other
brands when in reality the contents in the cups were all the
same.
45. Looking at the amount of misleading advertisements that pervade
modern media, consumers should be wary any time they hear that
a product is "scientifically proven" to work. Unless the advertiser
specifically states that its claims have been validated by the FDA,
there's no reason to trust any purported medical benefits of any
piece of merchandise, whether it's shoes or cold medicine. Often,
these health and fitness products are just modern interpretations
of the snake oil that bankrupted early settlers in the Wild West.
