Consumer Buying Decision Process in Marketing Phases and Strategies
The four marketing phases and strategies consumers generally pass through before they develop the conviction to buy a product are as follows:
a) Awareness: In this phase, consumers become conscious of the existence of a particular brand or product. They may come across the product through various channels, such as advertising, word-of-mouth, or online research. For example, a consumer might see a television commercial for a new smartphone model.
b) Interest: Once consumers become aware of a product, their interest is piqued, and they start gathering more information about it. They may seek product reviews, compare features and prices, and evaluate how the product meets their needs. For instance, a consumer might read online reviews and visit multiple websites to gather information about the smartphone’s specifications, user experience, and pricing.
c) Evaluation: In this phase, consumers assess the alternatives and compare different products or brands. They consider quality, price, features, reputation, and value for money. Consumers may also seek opinions from friends, family, or online communities. For example, a consumer might compare the smartphone they are interested in with other models, looking at factors such as camera quality, battery life, and overall performance.
d) Purchase: The final phase occurs when consumers have evaluated the options and decided to purchase. They have developed the conviction that their chosen product will satisfy their needs and provide value. The purchase can happen online or in physical stores, depending on consumer preferences. For instance, the consumer buys a smartphone online after finding a reliable seller offering a competitive price.
It is important to note that the progression through these phases may not be linear, and consumers can move back and forth between stages based on the experiences and information they encounter.
Advertising Strategies for Different Accounts in Marketing Phases and Strategies
Response hierarchy in marketing phases and strategies models provide a framework to understand how consumers move through awareness, knowledge, liking, preference, conviction, and purchase stages. As an executive with an ad agency, Sherrell can plan communication strategies for the three accounts effectively using these models. Here is a straightforward process for each of the three ad campaigns:
a) Used car showroom: In this case, the primary objective would be to create awareness and generate interest among potential car buyers. Sherrell can develop a campaign focusing on the showroom’s wide selection of high-quality used cars, emphasising features like low mileage, warranty, and certified pre-owned options. The campaign could include engaging visuals and testimonials from satisfied customers, showcasing the showroom’s reliability and trustworthy reputation.
b) Home appliances maker: The goal might be to move consumers from the knowledge and like to this account’s preferences and conviction stages. Sherrell could develop a campaign highlighting the brand’s range of innovative and energy-efficient appliances, emphasising superior performance and cost savings. The campaign could leverage customer testimonials and endorsements from experts in the field, building credibility and creating a preference for the brand over competitors.
c) Soap company: In this case, the focus would be on generating preference and conviction for the soap brand. Sherrell can develop a campaign highlighting the soap’s unique qualities, such as natural ingredients, gentle formula, and skin benefits. The campaign could use emotional appeals, storytelling, and demonstrations to connect strongly with consumers, emphasising the brand’s commitment to health and well-being.
Categories of Place Advertising in Marketing Phases and Strategies
There are four main categories of place advertising, and their advantages in marketing phases and strategies are as follows:
a) Outdoor Advertising: This category includes billboards, transit ads, and street furniture ads. The advantages of outdoor advertising are its broad reach, ability to create high visibility and repeated exposure, and the potential to target specific geographic areas. An example of outdoor advertising would be a billboard promoting a local restaurant strategically placed near a busy intersection or along a frequently travelled highway.
b) Point-of-Purchase (POP) Advertising: POP advertising refers to displays and promotions within retail stores to influence purchase decisions. The advantages of POP advertising include capturing consumers’ attention at the point of sale, promoting impulse buying, and increasing product visibility. An example would be a product display near the checkout counter in a grocery store featuring a new snack brand and offering samples to entice customers to purchase.
c) In-Store Advertising: This category involves various ads placed within retail stores, such as signage, shelf-talkers, and aisle banners. The advantages of in-store advertising include reaching consumers already in a buying mindset, reinforcing brand presence, and influencing purchase decisions at the moment of choice. For instance, a supermarket might use in-store advertising to promote a new line of organic products with attractive signage and product information.
d) Trade Show Advertising: Trade shows are events where companies showcase their services and products to industry professionals and potential buyers. The advantages of trade show advertising include the opportunity to interact directly with the target audience, build brand awareness among industry influencers, and generate leads for sales. An example would be a technology company participating in a trade show to demonstrate its latest gadgets and engage with potential business clients.
Categories of Place Advertising in Marketing Phases and Strategies
The conflict between marketing and sales departments in marketing phases and strategies can arise due to differing perspectives, goals, or approaches. Marketing typically focuses on a long-term plan to build brand equity, create awareness, and generate leads, while sales teams often have short-term targets and prioritise closing deals. To address these conflicts, the following approaches can be helpful:
a) Effective Communication: Encouraging open and transparent communication between marketing and sales teams is crucial. Regular meetings, joint planning sessions, and sharing insights can align their objectives and reduce misunderstandings. For example, marketing can provide sales teams with detailed customer profiles and market research, enabling them to understand the target audience better.
b) Collaboration and Goal Alignment: Creating shared goals and metrics that both marketing and sales departments can work towards can foster collaboration. When both teams have a common objective, such as increasing revenue or market share, it can help reduce conflicts and encourage cooperation. For instance, marketing and sales can jointly develop campaigns and promotions tailored to specific customer segments, aligning their efforts for better results.
c) Performance Evaluation and Incentives: Implementing performance evaluation systems that measure the effectiveness of marketing efforts and sales performance can help address conflicts. Rewarding collaboration and teamwork through incentives can motivate both departments to work together. For example, marketing and sales teams can receive bonuses or recognition when they achieve joint revenue targets or launch a new product campaign.
Examples of Conflict and Channel Power in Marketing Phases and Strategies
A relevant example of marketing and sales conflict in marketing phases and strategies could be when the marketing team launches a promotional campaign with discounts and offers to attract new customers. However, the sales team may feel that the promotions must improve their ability to sell at a total price or negotiate better customer terms. To address this conflict, marketing and sales could collaborate on setting clear guidelines and communication channels to ensure that promotions support both short-term sales goals and long-term brand objectives.
Channel power refers to a channel member’s ability to influence other channel members’ behaviour. Various types of channel power exist:
a) Reward Power: This type of power involves a channel member’s ability to provide rewards, such as financial incentives, higher margins, or access to exclusive products, to influence the behaviour of other channel members. For example, a manufacturer may offer higher profit margins to retailers, prioritising promoting their products over competitors.
b) Coercive Power: Coercive power is based on the ability of a channel member to impose penalties or punishments on other channel members. This power can enforce compliance with specific policies or pricing strategies. An example of coercive control is a manufacturer threatening to withhold product supply from a distributor who violates pricing agreements.
c) Legitimate Power: Legitimate power has to be derived from the formal position or role a channel member holds within the distribution channel. It is based on the authority and other channel members’ acceptance of that authority. For instance, a franchisor has legitimate power over franchisees within a franchise system.
d) Expert Power: Expert power arises from a channel member’s superior knowledge, expertise, or specialisation in a particular domain. This power can influence other channel members based on trust and credibility. For example, a manufacturer of medical devices may possess expert ability when providing training and guidance to distributors and healthcare professionals.
A relevant example of channel power in marketing phases and strategies is the relationship between a large retail chain and its suppliers. Due to its size and market dominance, the retail chain may hold reward power by offering preferred shelf space or higher sales volumes to suppliers who meet specific criteria, such as providing promotional support or favourable pricing. The retail chain’s reward power can significantly influence the behaviour and decisions of suppliers as they strive to secure advantageous positions within the channel to maximise sales opportunities.
References:
- “SWOT Analysis: Definition, Advantages, and Limitations” – An article explaining the concept of SWOT analysis as a strategic planning tool to assess a company’s strengths, weaknesses, opportunities, and threats. Link: https://www.investopedia.com/terms/s/swot.asp
- “Marketing Strategy: Definition, Types, and Examples” – A guide that explores various marketing strategies, including product differentiation, market segmentation, and more. Link: https://www.investopedia.com/terms/m/marketing-strategy.asp
- Mas, Santiago. The Seven Ps of the Apple Watch’s Marketing-Mix. GRIN Verlag, 22 Aug. 2018.
Marketing Phases and StrategiesDecision-Making
