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Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

What is Buyer Behaviour?

The wealth of products and services produced in a country make our economy strong. Almost a the products, which are available to buyers, have a number of alternative supplies; i.e., substitutive products are available to consumers, who make a decision to buy products. Therefore, a seller, most of his time, seeks buyers and tries to please them. In order to be successful, a seller is concerned with

  • Who is the customer?
  • What do consumers buy?
  • When do consumers buy?
  • How do consumers buy?
  • From where do consumers buy?
  • Why do consumers buy?

A buyer makes a purchase of a particular product or a particular brand and this can be termed “product buying motives.” And the reason behind the purchase from a particular seller is “patronage motives.”

A buyer makes a purchase of a particular product or a particular brand and this can be termed “product buying motives.” And the reason behind the purchase from a particular seller is “patronage motives.”

The term individual buyer, consumer, end user and individual user refer to the same, a buyer who buys product and service for end/final use. Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology, and economics. It attempts to understand the buyer decision making process, both individually and in groups.

The term individual buyer behaviour, consumer buying behaviour and end user behaviour all stands for the same. The study of consumer behaviour is the study of how individuals make decisions to spend their available resources (time, money effort) on consumption-related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it.

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Use following books for M.COM

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Role or importance of study of consumer behaviour can be explained with reference to the points stated as under:

Useful for Dealers and Salesmen:

The study of consumer behaviour is not useful for the company alone. Knowledge of consumer behaviour is equally useful for middlemen and salesmen to perform their tasks effectively in meeting consumers needs and wants successfully. Consumer behaviour, thus, improves performance of the entire distribution system.

Adjusting Marketing Programme over Time:

Consumer behaviour studies the consumer response pattern on a continuous basis. So, a marketer can easily come to know the changes taking place in the market. Based on the current market trend, the marketer can make necessary changes in marketing programme to adjust with the market.

Achievement of Goals:

The key to a company’s survival, profitability, and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitors. Thus, consumer behaviour helps in achieving marketing goals.

More Relevant Marketing Programme:

Marketing programme, consisting of product, price, promotion, and distribution decisions, can be prepared more objectively. The programme can be more relevant if it is based on the study of consumer behaviour. Meaningful marketing programme is instrumental in realizing marketing goals.

Modern Philosophy:

It concerns with modern marketing philosophy – identify consumers’ needs and satisfy them more effectively than competitors. It makes marketing consumer-oriented. It is the key to succeed.

Creation and Retention of Consumers:

Marketers who base their offerings on a recognition of consumer needs find a ready market for their products. Company finds it easy to sell its products. In the same way, the company, due to continuous study of consumer behaviour and attempts to meet changing expectations of the buyers, can retain its consumers for a long period.

Consumer Differentiation:

Market exhibits considerable differentiations. Each segment needs and wants different products. For every segment, a separate marketing programme is needed. Knowledge of consumer differentiation is a key to fit marking offers with different groups of buyers. Consumer behaviour study supplies the details about consumer differentiations.

Predicting Market Trend:

Consumer behaviour can also aid in projecting the future market trends. Marketer finds enough time to prepare for exploiting the emerging opportunities, and/or facing challenges and threats.

Developing New Products:

New product is developed in respect of needs and wants of the target market. In order to develop the best-fit product, a marketer must know adequately about the market. Thus, the study of consumer behaviour is the base for developing a new product successfully.

Competition:

Consumer behaviour study assists in facing competition, too. Based on consumers’ expectations, more competitive advantages can be offered. It is useful in improving competitive strengths of the company.

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Marketing management  Structure

Marketing management employs tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter’s five forces, analysis of strategic groups of competitors, value chain analysis and others.[1] Depending on the industry, the regulatory context may also be important to examine in detail.

In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor’s cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

Marketing management often conduct market research and marketing research to perform marketing analysis. Marketers employ a variety of techniques to conduct market research, but some of the more common include:

  • Qualitative marketing research, such as focus groups and various types of interviews
  • Quantitative marketing research, such as statistical surveys
  • Experimental techniques such as test markets
  • Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company’s marketing analysis.

Studying consumer behavior is very much emphasized for the following reasons.

  • Helps to understand consumer motives
  • To satisfy need of customers
  • Helps to understand consumer preferences
  • Helps to understand consumer choices
  • Helps to understand consumer psychology

 Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Recommended Mcom Notes

M. Com. (Part-I)

M. Com. (Part-II)

Need for studying buyer behavior for Marketing Management Mcom sem 2 Delhi University

Recommended read:

Part A Firm and Market for Managerial Economics Mcom Delhi University
Unit I Demand and The Firm for Managerial Economics Mcom Delhi University

Need for studying buyer behavior for Marketing Management MCOM sem 2 Delhi University

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