Relationship between Marketing Mix and Consumer Behaviour

Relationship amidst commercialize mix and Consumer BehaviourThe primary idea of a securities laboring blend in was introduced by Neil Borden in 1953 while describing the recipe that was aimed to knead a succeederful merchandiseing campaign. The idea was then given the 4 Ps in 1960 by E. Jerome McCarthy.Marketing Mix is a combination of elements apply in the barter of a peculiar(prenominal) fruit. The food marketing elements that affect a harvest-times performance are seen in four distinct functions, also called the four-spot Ps of marketing. They entangle produce, impairment, place (of dispersion), and packaging. All these functions are considered in the do work of planning a marketing strategy. Any one may be enhanced, deducted, or neuterd to some degree, depending on the market scenario, in order to nominate a strategy necessary to sell a crossing.A abbreviated description of each of the aspects of the marketing mix is formulateed under.ProductThe phy sical product/service offered to the consumer. Product determinations include aspects such as function, appearance, aesthetics, post sale service, product warranty, etc.PromotionPromotion decisions are those related to heavy or communicating to the cigarette node what the product has to offer. The duty involves luring a customer in for the sale and then last(a)ly completing the inevitable sale. Promotions teams arouse a responsibility to selling to a new customer and increase the use of the product to encourage to a greater extent gross revenue.Since these approachs frequently over shoot the products scathe, a break even analysis must(prenominal) be conducted when reservation progression decisions. The promotions team decides to which kind of customers the product unavoidably to be sold. This is also signifi mountaint in the planning of the product cost and the type of promotion that would go into the promotion of the products. Promotion include advertising, universal relations, media types, etc.PlaceThis deals with the location or the place where the product is anticipate to be sold. The product has to polish off the consumers through a series of distributors and retailers. It is associated with the diffusion channels which all serve as the means for getting the product to the customers who pick it off a shelf or pay for it otherwise. The distribution system performs all the transactional, logistical, and facilitating functions betwixt middle men and retailer which brings them the scoop up deals and the most effective profit. Distribution decisions include market coverage, channel member selection, logistics, and levels of service.Price set decisions should take into account to account for profit margins and enemys. care up with competitor pricing and treatment of the product in the market brings in a great deal of strategy to the products life cycle. price includes along with the marked list expenditure, the discounts, financing, and m ore options such as leasing.The interest section will deal with describing the effect of the various aspects and sections of the Marketing Mix with association with RD( inquiry and Development), stain Portfolio, Sales motor and Market Research.Link surrounded by Marketing Mix and Consumer BehaviourThe psychological marches that a consumer goes through to discover his needs and finding ways to fill the gaps formed by these needs, making decisions ab bulge out a purchase (eg., whether or not to pay for a product and, if they are then, which brand do they want to buy and where), process informationrmation, planning and implementation of these plans (eg., by engaging in comparison or window shopping or actually paying for a product).It is often necessary to understand the customer and his/her regional and cultural influences. Chances of an Indian or a Chinese bargaining at a retail set up are higher than that of an American customer. This affects the pricing and the promotion do ne for the product. Often, the advertisements and the promotion strategy are re- utilise in different parts of the world on account of the type of customer. This make a difference on spends and right-hand(a) consumer behaviour can often bring the difference between a successful and an unsuccessful campaign.Decision making by customers include the availableness of the product in the region and information that helps him/her make the needed decision pertaining to the purchase of the product.Let us use a few examples to explain the link between the marketing mix and consumer behaviour.The denim and jeans industry which include some internationally recognised brands including Levis, Lee and Pepe understand that within their target range, we include the young crowd. Commonly citizenry up to 30 age of age. They, therefore make sure that the campaigns and marketing include a limited intention to pull these customers in. The ads therefore include several young people in harsh surround ings.KFC and McDonalds fool learnt that people tend to eat more in glimmery coloured surroundings. Therefore, all their outlets usually have bright colours across the walls.A study showed that theThese are only in truth simple examples of consumer behaviour. Understanding the performance or the process of aligning the 4 Ps as per our customers needs is huge in scope and juicy in practice.Link between Marketing Mix and Market ResearchMarket Research is the process of gathering data or info in order to better understand the aspects which would affect the performance of a product on the market. We have to understand if a particular campaign or step is worth the risk. Incorrect or inadequate market inquiry often leads to unforesightful performance due a poor understanding.Most companies are founded on the principle of profitability. Goods or services they raise should aim to be something that the customer needs and the caller can public assistance from. That is where market l ook for plays it hand at making a decision. Doing that investigate accurately will determine if your business will flourish or fall flat on its face.The research conducted around a whizz product includes analysis of the customer during the purchase phase, the reaction to a specific advertisement, the positioning of the product on the shelves of the stores they appear in, the comfort of the customer with the product etc.In a business strategic sense, they are use to collate Market Information (data to the highest degree competitors and the supply and demand situation), variance (understanding what kinds of customers appeal to what kind of customer reacts to a specific form of promotion based on common criteria), Market Trends (the fluctuation of the market), Risk Analysis, contest Analysis etc.Each and everyone of these activities brings the product manufacturer/service supplier with the info he/she needs to process and successfully sell the product. This changes the propensi ty in which the product is sold. The price, the positioning, the promotion and the product itself depends on this research.Link between Marketing Mix and RDResearch and Development in a high society often implies the need or the drive to improve the product and lead for a better replacement to make its way into the market. The idea tail research and development is to maximise the benefits that the consumer gets out of the product. The idea commode research and development is to improve the products and possibly charge a premium on the improved product which will increase profitability and allow the club to re-invest in research for a better product or a better variant of the same.The benefits from research are manifold. They include better products and consequently a more loyal customer and possibly new ones. A gild which thrives on research like a Pharmaceutical company is normally not considered the dress hat kind of investment for a fake in the stock market. This is beca use of unusual and over the top spending patterns for research which doesnt necessarily degenerate the investment make.Research and development is also to go for one step ahead of the competitor. To remain at or authorise to the top of the table, a company must constantly come out with a product thats only when better than the competitors product.Pricing is unendingly a major(ip) aspect to consider while working the specifics in research. The price of a product depends on the amount of research that goes into its development. The premium supercharged on a product comes from patents that protect it against duplication. Patents however, are only offered for a temporary period. Post that, the product is open to duplication. In this case, the price drops to a minimum, usually to push for maximum sales and to allow a return from plain sales.In promotion , the results of research are often touted in the ads about the same. This comes from Surf Excel and Bournvita ads which talk ab out extra performing chemicals and extra nutrients respectively to make it a better choice than competitor products.Link between Marketing Mix and Sales ForceThe sales team that drives the amount of revenue coming into the company involves the final pinnacle of contact with the customer. This is the point where all the promotions and pricing bring the customer to the final decision making stage. The best salesman is who gets the sale done and the papers signed.It is simulated at times that a large sales pull in implies the sale of more products. This is not true. A sales force means prepare. The training involves teaching your sales force selling the product and the nuances associated to the product.This leads to an automatic deck up in the spends of the company and very easily reflects on the prices of the products.The size of a sales force depends on the reach of the product in harm of distribution. The type of product also as a major hypothesize in the strength of the sale s force. Pharmaceuticals have lesser sales force as they cover doctors in mostly urban and sub-urban areas. FMCG sends their sales force all across the country and the world to maximise sales.Link between Marketing Mix and Brand PortfolioThe brand portfolio is a system used to categorise the products into high-earners, dead-beats and break-evens. The brand portfolio is created for both analysis of the past and application in the future. The portfolio will contain details about the product that helps the company make decisions about the products future. These include the promotional activities that the product will go through, the price at which we make it available to the customer, the positioning of the product and the condition of the products plump out development.The price of a high-earning luxury item can be increase and the smaller items which lose you money will be the losers which will be either pushed back from promotion or pulled out altogether.The idea behind a brand por tfolio is to keep a check or an spunk on the products performances.Application of Key Learnings to Reckitt Benckiser in the smooth-spoken antiseptic roleReckitt Benckisers liquid antiseptic is the very popular Dettol. Dettol has been a strong rival in the liquid antiseptic industry. It has ruled the roost in the industry for several years and still holds solid ground.Dettol be intimateed over 80% of the market share in its antiseptic form. The soap and the liquid soap formats however, had just about 15% of the industry. The soap and liquid soap formats did not enjoy the same success that the antiseptic did.The demand for Dettol rose from about Rs. cv billion in 1999 to Rs. 160 billion in 2009. The demand consider graph for Dettol over the past 10 years can be seen below.Consumer Behaviour Study of DettolA consumer behaviour study to understand the success of Dettol as an antiseptic brand was conducted to understand the reasons for the popularity of the brand.The study revealed that 85% of the respondents knew about Dettol i.e. they were aware that the product existed. 72% of the respondents used it as a like antiseptic. 72% also continue using Dettol because of Brand Loyalty and 56% are open to using other Dettol products.Dettol and Reckitt Benckiser have never had to nettle about the competition so cold. The users mostly preferred Dettol to other products.The word form below refers shows the analysis, study and the results of the research conducted.Pricing Strategies surrounding DettolThe Dettol variants have always been competitively priced with the market. The Soap variant was priced at Rs. 16/75mg and Rs.26/125mg. This was priced against the similar Savlon product which was priced at Rs.16 and Rs.24.5 respectively for the two package varieties. Both of the products however, are far higher than the alternate Medimix which was Rs.12 and Rs.17 for the two variants.At this point, a manager would admire whether or not the right idea would be to work t owards the price. Dettol can charge a minor premium on the product price because it holds a certain edge over the existing products. However, Savlon is catching on fast considering its an antiseptic which doesnt hurt as much. The manager therefore, tries to make the best of the current scenario and ensure that the competition wouldnt eat into its market share.In liquid soap, Dettol was exactly the same as the Fem variant which both sold as Rs.55/250ml. The market share of the liquid soap for Dettol is very low. A change in the price superpower even help the return to the market and allow Dettol to take the product ahead.The Shaving Cream division sees Dettol deceit between the Old Spices Rs.37.50/70g and Rs.24.50/30g and Palmolives Rs.36/70g and Rs. 19.50/30g.Market Research and Research and Development of DettolReckitt Benckiser and Dettol theorise Good health begins with hygiene. The Dettol variants were restricted to products which represent hygiene and banked on the very reli able name of Dettol to push the hygiene factor across to the customer. Dettol was miserable down into the Antibacterial Soap, Liquid Handwash, Shaving Cream and Band-Aid. The marketing team at Dettol looked into what could be done to maximise the reach of the Dettol brand and where it could be used conversely to decide what kind of variant would be required and what type of product is needed for the next step. The products all promote cleanup germs, freshness and absolute cleanliness and purity. Dettol has performed extensive research on the expansion plans of their major brand. The Dettol brand took the reach of Dettol to go as far as possible. The reach of Dettol moved from homes and hospitals to hotels, theatres, railways, educational institutes, saloons, school events.Trend Analysis of Dettol between 2000 and 2004The trend analysis has shows sales morsels on a high. The numbers have constantly been increasing over the past several years. In 2000, the sales numbers were close to 48000. In 2001, the numbers went up to 55000. Uptil 2003 following this, the number remained largely stagnant and then moved to dip slightly below 54000. However, the year 2004 was a fantastic attack on the market and zest up numbers in a single year in 2004 to 63000.We can tell from the demand forecast table that the demand made for the hygiene industry products kept going away up. The demand kept going up. Sales number increasing means we need to bump up the sales force. Ideally, the need for a greater sales force comes from the need for more retailers. The more the retailers, means that the reach of the product has increased and there are more people who are willing to buy and to sell. A sales force involves training. The need for greater performance is what keeps a company going. To maximise sales, they have to increase sales force. To increase sales force, they have to spend more money on the hiring, training and keeping the sales force. This automatically leads to greater spending in the event that the product might not do well, thus bringing up the costs of the product. bring up Analysis of the Reckitt Benckiser Dettol industryBelow we have a brief bring up analysis of the industry.StrengthsHigh market share of antiseptic liquidBrand loyaltyMost trusted BrandHigh quality at affordable pricesWeaknessesPoor marketing strategies for Dettol Shaving Cream Dettol Talc animated sensation of Antiseptic liquidOpportunitiesDettol Water Purifier due to increase in epidemicsOpportunity to capture the shaving cream segmentThreatsCompetitive PricingAttractive Packaging of competitor productsGood Advertisements by competitors