Slide 1

How many times do you make decisions throughout the day? What should I wear today? What
perfume should I put on? What am I going to have for lunch? If you think about it, we make many
buying decisions every day without giving them much thought.

These decisions, as insignificant as they might seem, keep marketers up at night. Because decoding
the processes behind customers’ decisions means that we can use that info to boost revenue.

Consumer behaviour is a comparatively new field of study. The concept ‘consumer behaviour’ has
been gaining importance since 1960. The evolution of marketing concept from a mere selling concept
to consumer-oriented marketing has resulted in consumer behaviour becoming an independent
discipline.

Consumer behavior is the study of consumers and the processes they use to choose, use (consume),
and dispose of products and services, including consumers’ emotional, mental, and behavioral
responses.

Studying consumer behavior also helps marketers decide how to present their products in a way that
generates a maximum impact on consumers.
A consumer behavior analysis should reveal:

 What consumers think and how they feel about various alternatives (brands, products, etc.);
 What influences consumers to choose between various options;
 Consumers’ behavior while researching and shopping;
 How consumers’ environment (friends, family, media, etc.) influences their behavior.

Slide 2
Marketing strategy, is conceptually very simple. It begins with an analysis of the market the
organization is considering. This requires a detailed analysis of the organization’s capabilities, the
strengths and weaknesses of competitors, the economic and technological forces affecting the
market, and the current and potential customers in the market. On the basis of the consumer analysis
undertaken in this step, the organization identifies groups of individuals, households, or firms with
similar needs.
These market segments are described in terms of demographics, media preferences, geographic
location, and so forth. Management then selects one or more of these segments as target markets on
the basis of the firm’s capabilities relative to those of its competition (given current and forecast
economic and technological conditions). marketing strategy is formulated. Marketing strategy seeks
to provide the customer with more value than the competition while still producing a profit for the
firm.
Marketing strategy is formulated in terms of the marketing mix; that is, it involves determining the
product features, price, communications, distribution, and services that will provide customers with
superior value. This entire set of characteristics is often referred to as the total product. What is the
Starbucks total product? Clearly, it is much more than coffee. Places such as Starbucks and the Hard
Rock Cafe are selling experiences as much as or perhaps more than food and beverages—and they
are doing so around the world
An “experience” occurs when a company intentionally creates a memorable event for customers.
Today, many firms are wrapping experiences around their traditional products and services in order
to sell them better.

Slide7
Economic model
In this model, consumers follow the principle of maximum utility based on the law of diminishing
marginal utility. The consumer wants to spend the minimum amount for maximizing his gains.
Economic man model is based on:
Price effect:  Lesser the price of the product, more will be the quantity purchased.
Substitution effect:  Lesser the price of the substitute product, lesser will be the utility of the original
product bought.
Income effect:  When more income is earned, or more money is available, more will be the quantity
purchased.

This model, according to behavioral scientists, is not complete as it assumes the homogeneity of the
market, similarity of buyer behavior and concentrates only on the product or price. It ignores all the
other aspects such as perception, motivation, learning, attitudes, personality and socio-cultural
factors. It is important to have a multi disciplinary approach, as human beings are complex entities
and are influenced by external and internal factors. Thus, price is not the only factor influencing
decision-making and the economic model according to scientists have short comings.

Sociological Model:-
This is concerned with the society. A consumer is a part of the society and he may be a member of
many groups in a society. His buying behaviour is influenced by these groups. Primary groups of
family friends and close associates exert a lot of influence on his buying. A consumer may be a
member of a political party where his dress norms are different. As a member of an elite
organization, his dress requirements may be different, thus he has to buy things that conform to his
lifestyles in different groups.
Looking at the stats, according to MuseFind 92% of consumers trust influencers more than
advertisement and celebrity endorsements, while according to Variety teens perceive YouTube stars
as 17 times more engaging and 11 times more extraordinary than “regular” stars.
Influencer marketing can be defined as a process of identifying and activating individuals who have
an influence over a specific target audience or medium, in order to be part of a brand's campaign
towards increased reach, sales, or engagement. Influencer marketing is an extension to the original
concept of word-of-mouth marketing, focusing on a social context and performed in a more
professional way. It is a form of relationship building which may be very helpful for brands that seek
to expand their audience and turn them into loyal customers through trust and authenticity
Slide 9
Social media is a huge influence on consumers when they are attempting to build awareness about a
particular product. When people face a problem, they start searching for a solution. But most of the
times people do not know which product or service will solve their problems.  
How do people get to know about your product?  A large section of the audience gets to know your
brand through the content that is distributed on social media.
Top 8 social networks drove more than 31% of overall traffic to sites! 
The aim of every business is to influence consumer behavior.  If you do not have a brand presence on
social media, you are missing out on an important opportunity to influence your consumer buying
behavior.
Slide 10
Social media has resulted in the evolution of social proof as a greater force for buying
decisions. Social proof has emerged due to the tendency of people to imitate the behavior of people
around them or people imitate people who have influence over them.
Happy customers tend to go about praising the products with likes, shares, reviews and comments on
social media. Marketers are making social space more transparent by sharing reviews, comments,
likes, tweets and pins of their happy customers to generate brand trust and increase conversion rate.
Sharing testimonials, case studies, pictures, comments and videos of happy customers will build
greater trust and will work well on your landing, page, consulting page and sign-up page as well.
The power of social proof cannot be undermined when social media has become integral part of
buyers and sellers. Social marketers looking to sell their products should have a solid social proof in
form of case studies, images, video, pod cast interviews and influencers as part of their selling
strategy. All this will eventually increase the conversion rate. 
Slide 11
Many social media users have signed up for social media groups/forums that they are interested
in. When consumers see promotions, discounts and deals on social media, it influences their buying
behavior.
64% of online consumers wait to buy things until they go for sale,
Social media is an inexpensive platform that gives brands instant reach to billions of active social
media users. Brands should ensure that target audience sees your products, likes them and shares
them on social media, which helps to influence consumer behavior.
Slide 12
Consumers are more likely to buy when they get recommendations from a person they
trust. Celebrities and popular people inspire their audience and influence their buying behavior.
It is true that 49% of consumers seek guidance from social media influencers before making a buying
decision.
For example, an influential gamer would endorse gaming and tech products. Consumers on social
media look up to these influencers for recommendations and advice on products. A positive influence
will encourage the consumer to buy the product.
Influencer marketing can work wonders for your brand by attracting more customers. Many
marketers are replacing celebrities with YouTube, Instagram, and Snapchat influencers. These online
stars are providing unfiltered feedback on products, and consumers love it.

It should be obvious from the examples that organizations are applying theories and information
about consumer behavior on a daily basis. Knowledge of consumer behavior is critical for
influencing decisions not only about which product to purchase but also about which college to
attend, which charities to support, how much recycling to do, whether to seek help for an
addiction, and so on.
Today, as never before, we cannot take our business for granted. That’s why understanding—and
therefore, learning to anticipate—consumer behavior is our key to planning and managing in this
ever-changing environment.

Slide 3:-

These advertisements are targeting the same consumers with very similar products, yet they use two
very different approaches. Why?
They are based on different assumptions about consumer
behavior and how to influence it

 Social media isn’t enough for good marketing. Good causes aren’t enough. Even great
interaction isn’t enough. Marketing must center around the product. And in today’s society,
the more personalized you can make your messaging and products, the more irresistible you
will become.
 The 2014 summer “Share a Coke” campaign and the idea was to personalize the brand and
help people share it with their friends, at the same time offering them a chance to interact
with Coke.

 ”What made this campaign so wildly successful? Aimed at Millennials and teens, the concept
not only appealed to their desire for individualization, but also for relationships. “For teens
and Millennials, personalization is not a fad, it’s a way of life,” “It’s about self-expression,
individual storytelling and staying connected with friends.

 ‘Share a Coke’ taps into all of those passions. “Seeing an iconic brand that literally has your
name on it is powerful. It connects you to the brand and prompts you to purchase.
 Customers find personalization irresistible.
 Pepsi
In 2010, Pepsi’s “Refresh” campaign was an attempt to differentiate the brand by creating unique
opportunities for customers to interact with Pepsi and share its value with others, especially via social
media.
 In a radical leap of faith, Pepsi decided to mix all traditional marketing, focusing all efforts
on social media marketing and using the money saved—$20 million—to give to charities. Pepsi
generated an online lottery that randomly selected charities, which customers could then go onto
social media pages and vote on—while at the same time interacting with Pepsi and building social
relationships.
 Like Coke, Pepsi aimed this campaign at Millennials. The difference, however, was that
Pepsi’s plan was a flop. It cost them 6 percent of their market share and an estimated half-billion
dollars. It also made them drop to third place for most popular soft drink (below Coke and Diet
Coke). Why? They promoted a socially responsible image more than Pepsi.
 Yes, they met their goals for social media, receiving over 80 million votes, almost 3.5 million
likes on Facebook, and gaining almost 60,000 Twitter followers.
But as one blogger said, “They achieved all the false goals and failed to achieve the only legitimate
one.” In other words, they didn’t sell more Pepsi.

Slide 4

In their 2019 Personalization Development Study, Monetate outlined the ROI of personalized

 Personalized marketing drives growth: 93% of companies with an “advanced personalization

 The higher the investment, the better the returns: Companies with ROI of 2x or more said
personalization made up at least 20% of their marketing budget.

 Personalization drives long-term customer value: Brands that had the highest personalization
ROI (3x or more) focused on loyalty as their top KPI. Companies with lower ROI targeted short
term measures like average order value.
Slide 6

True personalization is deeply understanding your customer’s journey. Once you know what they
need, you can serve them the right message at the right time, and drive business results.

according to Gartner, the stakes are high. In a recent survey, they discovered brands are at risk of
losing 38% of their customers because of poor personalization.

There’s no magic button you can press to become immediately personalized. It’s a tough process that
requires marketers to work closely with IT, operations, and digital teams.

But at the end of the day, the potential for revenue generation is huge. The science supports it, and
customers are asking for it.