UGC NET MBA Unit-7

Consumer Behaviour, Branding, SCM, CRM, Services, Retail & Emerging Marketing

1. CONSUMER AND INDUSTRIAL BUYING BEHAVIOUR

🔸 Meaning

Consumer behaviour is the study of how individuals or groups select, buy, use, and dispose of goods, services, experiences, or ideas to satisfy their needs and wants.

It combines psychology, sociology, economics, and marketing to understand why people buy.

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🔸 Characteristics

1. Dynamic process – changes with trends and technology

2. Involves emotional and rational factors

3. Influenced by cultural and social context

4. Varies by product type and involvement

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🔸 Consumer Decision Process (EKB Model)

Five Stages:

1. Problem recognition – awareness of need.

2. Information search – internal (memory) & external (advertising, reviews).

3. Evaluation of alternatives – comparing products based on attributes.

4. Purchase decision – choosing a specific brand/product.

5. Post-purchase behaviour – satisfaction or cognitive dissonance.

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🔸 Theories of Consumer Behaviour

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🔸 Factors Influencing Consumer Behaviour

A. Cultural: Culture, subculture, social class
B. Social: Reference groups, family, role and status
C. Personal: Age, lifestyle, occupation, economic status
D. Psychological: Motivation, perception, learning, beliefs, attitudes

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🔸 Industrial (Organizational) Buying Behaviour

Industrial buying is complex, formal, and multi-personal.
Buyers purchase raw materials, equipment, or components for further production or resale.

Participants in Buying Center (Buygrid Framework):

1. Initiators – recognize need

2. Users – actually use the product

3. Influencers – provide specs

4. Deciders – approve supplier

5. Buyers – place the order

6. Gatekeepers – control information flow

Types of Buying Situations:

• New Task – first-time purchase

• Modified Rebuy – some changes

• Straight Rebuy – routine re-order

Industrial Buyer Motivations:

• Economic factors (cost, efficiency, service)

• Relationship quality (trust, reliability)

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🟩 2. BRAND MANAGEMENT

🔸 Definition

A brand is a distinct identity (name, symbol, logo, design, or combination) that identifies a product and differentiates it from competitors.
(According to the AMA: “A name, term, design, symbol, or any feature that identifies one seller’s good or service.”)

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🔸 Roles of Brands

• Identification: Distinguish products

• Differentiation: Build positioning

• Trust & Loyalty: Create repeat purchases

• Emotional Appeal: Build relationships

• Financial Asset: Adds monetary value (brand equity)

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🔸 Brand Equity

The value added by the brand to the product.

Key Dimensions:

1. Brand Awareness – recognition & recall

2. Brand Associations – mental connections

3. Perceived Quality – customer’s perception of excellence

4. Brand Loyalty – repeat buying

5. Other Assets – patents, trademarks

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🔸 Models of Brand Equity

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🔸 Branding Strategies

1. Individual Brand Name – Tide, Ariel, Pampers (P&G)

2. Family / Umbrella Brand – Sony, Samsung

3. Co-Branding – Intel Inside + HP

4. Brand Extension – Dabur Honey → Dabur Juice

5. Private Label – Big Bazaar’s “Fresh & Pure”

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🔸 Brand Loyalty Types

• Cognitive Loyalty: rational preference

• Affective Loyalty: emotional liking

• Conative Loyalty: commitment to buy again

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🔸 Brand Extension vs. Line Extension

• Brand Extension: new category under same name (Amul Ice-cream → Amul Butter)

• Line Extension: same category, new variant (Pepsi → Pepsi Max)

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🔸 Brand Positioning Statement

Format:

“To [target market], [brand] is the [frame of reference] that [point of difference] because [reason to believe].”

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🟩 3. LOGISTICS AND SUPPLY CHAIN MANAGEMENT (SCM)

🔸 Concept

SCM is the integration of procurement, production, inventory, transportation, and distribution to deliver customer value efficiently.

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🔸 Components

1. Inbound Logistics – raw material sourcing

2. Operations – manufacturing

3. Outbound Logistics – warehousing, transport, distribution

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🔸 SCM Drivers

1. Facilities – location and capacity

2. Inventory – stock levels

3. Transportation – speed and cost trade-off

4. Information – coordination, tracking

5. Sourcing – vendor selection, contracts

6. Pricing – impacts demand pattern

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🔸 Value Creation in SCM

• Minimizes total cost

• Enhances responsiveness

• Reduces lead time

• Improves customer satisfaction

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🔸 Supply Chain Design Decisions

• Centralized vs. decentralized network

• Outsourcing vs. in-house logistics

• Push vs. Pull systems

• Global sourcing and e-SCM (use of IT and automation)

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🔸 Sales Force & Personal Selling

• Personal selling: face-to-face persuasion and relationship-building.

• Sales Force Management: recruitment, training, motivation, compensation, performance evaluation.

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🟩 4. SERVICE MARKETING

🔸 Characteristics of Services (IHIP Model):

1. Intangibility – can’t be touched or stored

2. Heterogeneity (Variability) – quality varies

3. Inseparability – produced and consumed simultaneously

4. Perishability – can’t be inventoried

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🔸 7 Ps of Service Marketing

Product, Price, Place, Promotion, People, Process, Physical Evidence.

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🔸 Service Quality – SERVQUAL Model (Parasuraman, Zeithaml, Berry)

Five Dimensions:

1. Reliability – performing promised service dependably

2. Responsiveness – prompt help to customers

3. Assurance – trust and courtesy

4. Empathy – caring and attention

5. Tangibles – physical facilities and appearance

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🔸 Service Recovery

Steps to handle service failure and regain trust:

• Apologize

• Offer compensation

• Empower employees

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🔸 Service Brand Management

Focus on consistent experience, trust, emotional appeal (e.g., Marriott, Indigo).

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🔸 Service Firm Strategies

• Manage demand and capacity (pricing, reservations)

• Differentiation through experience

• Training and empowerment of staff

• Customer relationship programs

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🟩 5. CUSTOMER RELATIONSHIP MARKETING (CRM)

🔸 Concept

CRM is an approach to identify, attract, retain, and enhance customer relationships for long-term profitability.

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🔸 CRM Types

1. Operational CRM: automates sales, service, and marketing.

2. Analytical CRM: data-driven analysis for insights.

3. Collaborative CRM: integrates communication across channels.

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🔸 CRM Process

1. Identify potential customers

2. Collect and store data (using CRM software)

3. Analyze and segment customers

4. Customize communication

5. Build loyalty (reward programs, follow-ups)

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🔸 Customer Lifetime Value (CLV):

$$CLV=(Averagepurchasevalue\times Purchasefrequency\times Customerlifespan)-Acquisitioncost$$

Indicates the total profit a company can expect from a customer.

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🔸 Benefits

• Enhanced retention and satisfaction

• Reduced marketing costs

• Better forecasting

• Personalization

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🟩 6. RETAIL MARKETING

🔸 Definition

Retailing = Activities involved in selling goods/services directly to final consumers for personal use.

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🔸 Functions

• Breaking bulk

• Providing convenience

• Information and after-sale service

• Creating experience

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🔸 Types of Retail Formats

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🔸 Recent Trends in Indian Retail

• Online–Offline integration (Omnichannel)

• Mobile-based shopping apps

• AI-driven personalization

• Private labels growth

• Experiential retailing

• Sustainable retail (green stores)

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🟩 7. EMERGING TRENDS IN MARKETING

🔸 e-Marketing

Use of digital networks to promote products and services (email, web, apps).
Tools: SEO, PPC, affiliate marketing, blogs.

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🔸 Direct Marketing

Communicating directly with target consumers to obtain an immediate response.
Tools: Telemarketing, catalogs, SMS/email campaigns, direct mail.

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🔸 Digital Marketing

Encompasses all online channels:

• Social media (Instagram, YouTube)

• Content marketing

• Influencer marketing

• Video and mobile advertising

• Analytics & AI personalization

Advantages: Targeted reach, cost-effective, measurable results.

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🔸 Green Marketing

Marketing eco-friendly and sustainable products.

Examples:

• Paperless billing, electric vehicles, organic products.
  Benefits: Improves brand image and meets ethical expectations.

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🟩 8. INTERNATIONAL MARKETING

🔸 Concept

Application of marketing principles in more than one country.
Objective: exploit global opportunities and manage cross-border challenges.

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🔸 International Market Entry Modes

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🔸 International Marketing Mix Adjustments

1. Product: Standardize or adapt to local tastes

2. Price: Consider currency exchange, tariffs

3. Place: Distribution networks and local partnerships

4. Promotion: Language, culture, media differences

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🔸 Challenges in Global Marketing

• Political instability

• Cultural barriers (language, symbols)

• Currency fluctuations

• Legal regulations

• Ethical and environmental issues

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