Problem Recognition

Business managers need to be skilled, have expertise in problem recognition and solution techniques to be the greatest help in guiding their company towards greater success.

In problem recognition, the consumer recognizes a problem or need or want. The buyer recognizes a difference between his or her actual state and some desired state.

The need can be generated by internal stimuli when one of the person’s normal needs − hunger, thirst, sex, etc. rises to a high level sufficient to become a drive. A need can also be generated by external stimuli.

At this stage, the marketer should evaluate the consumer’s perspective by considering the basic questions like −

• What kinds of needs or problems or efforts arise.
• What brought them about and
• How it led the consumer towards the particular product.

Maslow’s Hierarchy of Needs
American Psychologist Abraham Harold Maslow believes that, needs are arranged in a hierarchy form. Only after a human has achieved the needs at a certain stage, does he move to the next one. The pyramid diagram showing the Maslow needs hierarchy.

According to Maslow's theory, when a human being goes up the levels of the hierarchy has fulfilled the needs and wants in the hierarchy, one may ultimately achieve self-actualization. Maslow in the end concluded that, self-actualization was not a regular outcome of satisfying the other human needs. Human needs as identified by Maslow are as follow −

• At the bottom of the hierarchy level are the "Basic needs or Physiological needs" of a human being − food, water, shelter, sleep, sex etc.
• The next level is "Safety Needs − Security, Order, safety and Stability". These two steps are important for the physical survival of the person.
• The third level of need is "Love and Belonging", which are psychological needs; when individuals have taken care of themselves physically, they are ready to share themselves with others, such as with family, friends and relatives.
• The fourth level is achieved when individuals feel comfortable with what they have achieved. This is the "Esteem" level, the need to be capable and recognized, such as position, status and level of success.
• The fifth level is the "Cognitive" or the "self-actualization" level, where individuals intellectually stimulate themselves and explore for their growth.

Finally, there is the "Aesthetic" level, which is the need for harmony, unity, order and beauty.

Market Positioning

Market Positioning means selecting a marketing mix that is most suitable for a target market segment. The following illustration shows a product positioning map. A well-positioned company will beat the competition that has a comparable offering. The company that clearly articulates what it does, why it's relevant and how it's different helps customers make better and faster buying decisions. Why are we suggesting you get our help? When we place a Chief Outsider with your company, or consult with you on a strategic direction, you get access to the human capital of our entire executive marketing team.

Market Segmentation

Market segmentation depends on two levels − the strategic level and the tactical level. At a strategic level, it has a direct link with the decisions on positioning. At a tactical level, it relates with the decision of which consumer groups are to be targeted. We will discuss here the parameters based on which a market can be segmented. Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers.

Marketing Strategies

Consumer behaviour is the study of the way people seek, purchase, use, evaluate and dispose of products and services. It is the phycology of marketing, and it is used to determine why consumers seek one product alternative from the other.
But why do consumers seek and purchase products? This is linked to the ideology of needs and wants. Needs and wants exist if a consumer is unsatisfied, consumers seek and purchase the products that can provide them with maximum satisfaction.

Developing Marketing Concepts

There are 5 different concepts of marketing, each of which vary in the function that they deal with. For example – production concept deals with production and selling concept deals with selling. Each of the concept was developed as per the need of the market. As the market changed, so did the concepts of marketing. And today, we have an opportunity to look at all 5 concepts of marketing and what they represent.

Buying Decision Process

The marketer is responsible for selling the goods in the market so he must have the knowledge how the consumers actually make their buying decisions. For this he must study the consumer buying decision process or model. It involves five stages:

Demand Analysis

The Demand Curve
The quantity of a particular good or service that a consumer or group of consumers want to purchase at a given price is termed as demand. It is the consumer’s ability or willingness to buy a specific product.

Consumer Behavior - Significance

Consumer behavior covers a broad variety of consumers based on diversity in age, sex, culture, taste, preference, educational level, income level, etc. Consumer behavior can be defined as “the decision process and physical activity engaged in evaluating, acquiring, using or disposing of goods and services.”

With all of the diversity to the surplus of goods and services offered to us, and the freedom of choices, one may speculate how individual marketers actually reach us with their highly definite marketing messages. Understanding consumer behavior helps in identifying whom to target, how to target, when to reach them, and what message is to be given to them to reach the target audience to buy the product.

Consumer Behavior - Consumerism

Consumerism is the organized form of efforts from different individuals, groups, governments and various related organizations which helps to protect the consumer from unfair practices and to safeguard their rights.

The growth of consumerism has led to many organizations improving their services to the customer.