This page intentionally left blank Copyright © 2006, New Age International (P) Ltd., Publishers Published by New Age International (P) Ltd., Publishers All rights reserved. No part of this ebook may be reproduced in any form, by photostat, microfilm, xerography, or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the publisher. All inquiries should be emailed to rights@newagepublishers.com P UBLISHING FOR ONE WORLD NEW AGE INTERNATIONAL (P) LIMITED, PUBLISHERS 4835/24, Ansari Road, Daryaganj, New Delhi - 110002 Visit us at www.newagepublishers.com ISBN (13) : 978-81-224-2552-9 Preface The book Consumer Behaviour and Advertising Management has been written for the management students of Indian institutions. It clearly explains the fundamentals of the subject and is designed to give an insight to the students with Indian examples. The book is written in simple language so that it can be understood by the students and teachers. Almost all the topics on consumer behaviour and advertising have been covered in this book. The entire syllabi of the I.E.T. has been covered and the book will be useful for the students. All the factors effecting consumer behaviour and some cases have been dealt in the book. In advertising, besides the promotional tools, five 5 Ms of advertising, ethical and social issues have also been dealt in a comprehensive manner. Both the sections of the book are supplemented with brief examples of cases for the understanding of the students. —Matin Khan This page intentionally left blank Acknowledgement This book could not have been written without the motivation and guidance of the publishers of New Age International (P) Ltd. They invited me to write a book on Consumer Behaviour and Advertising exclusively for the I.E.T. students. They guided me to cover all the aspects given in the course outline. My students, earlier, had appreciated and liked my book Consumer Behaviour which was written in simple language. I am thankful to the students who have been under me from a number of institutions. I would like to thank Mr. L.N. Mishra of Lucknow branch of New Age International (P) Ltd. who has been a source of inspiration. I want to acknowledge the help I received from my family members, and would like to thank my wife Shamin Khan, my daugh- ters Maria and Sara and my son Ishrat who gave me time and discussed various issues with me. In would like to thank Prof. and Head of Deptt. Prof. J.K. Sharma, Dr. S. Medhabi, Dr. Rita Narang and my other colleagues and students whom I have been associated with. Thanks are also due to others who have helped me in bringing out this book. —Matin Khan This page intentionally left blank Contents Preface v Acknowledgements vii PART I: Consumer Behaviour 1 Consumer Behaviour 3 1.1 Introduction to Consumer Behaviour—Definition 4 1.2 Reasons for Studying Consumer Behaviour 5 1.3 Applying Consumer Behaviour Knowledge 6 1.4 Marketing Strategy and Consumer Behaviour 8 1.5 Market Analysis 9 Questions 12 1.6 Consumer Behaviour and Market Segment 13 1.7 Bases for Segmentation 14 2 Psychographic or Lifestyle Segmentation 17 2.1 Introduction 18 Questions 23 3 Environmental Influences 25 3.1 Introduction 26 3.2 Individual Determinants 27 3.3 External Environmental Factors Affecting Consumer Behaviour 29 Questions 31 4Concept of Culture and Subculture 33 4.1 Introduction 34 Questions 40 [...]... introduction to consumer behaviour Consumer is the most important person The business revolves around the consumer. ” After finishing this chapter, one should be able to understand: • What is meant by consumer behaviour • Reasons for studying consumer behaviour • Understanding consumer behaviour • Marketing strategy and consumer behaviour CHAPTER 1 Consumer Behaviour 1.1 Introduction to Consumer Behaviour Definition... Consumer Behaviour Knowledge (1) Consumer behaviour knowledge is applied in Marketing Management A sound understanding of the consumer behaviour is essential to the long-term success of any marketing programme It is the corner stone of marketing concept which stress on consumer wants and needs, target market selection, integrated marketing and profits through the satisfaction of the consumers (2) Consumer. .. Baleno and other models For successful marketing, one should: 1 Find consumer needs of various segments 2 Position products (new and existing) to these segments 3 Develop strategies for these segments Practice greater selectivity in advertising and personal selling and creating more selective media and distribution outlets DHARM N-ADVER\AD1-1.PM5 13 CONSUMER BEHAVIOUR 1.6 Consumer Behaviour and Market... for Studying Consumer Behaviour The most important reason for studying consumer behaviour is the role that it plays in our lives We spend a lot of time in shops and market places We talk and discuss with friends about products and services and get lot of information from T.V This influences our daily lives Consumer decisions are affected by their behaviour Therefore, consumer behaviour is said to be... 240 241 241 242 242 243 PART II: Advertising Management 1 Advertising Management Overview 1.1 1.2 1.3 1.4 2 Advertising and Other Promotional Tools 2.1 2.2 3 Meaning Nature of Advertising Scope of Advertising Types of Advertising Questions Meaning Publicity Questions Role of Advertising in Promotion Mix Questions 4 Process of Advertising 4.1 4.2 Introduction The Customer and Competition DHARM N-ADVER\TITLE.PM5... Consumers are encouraged to reduce their consumption of these commodities (5) Consumer benefit from the investigation of their own behaviour When the consumer learns the many variables that affect his behaviour He gets educated and understands better how to effect his own behaviour What is learnt about consumer behaviour also benefit consumer in a formal sense There can be many benefits of a product, for... Sales (v) Product/Brand image Fig 1.2 Marketing strategy and consumer behaviour DHARM N-ADVER\AD1-1.PM5 9 CONSUMER BEHAVIOUR Then follows the process of decision-making, as shown in the rectangle which consists of the problem recognition, information search (which is both internal and external) then the evaluation and selection procedure, and finally the purchase After the purchase and use of the product,... customer and he is free from the botheration of occasional check-ups or risk The risk is considerably reduced and, the customer derives satisfaction with his decision to purchase Questions 1 What do you understand by consumer behaviour? What information is sought in consumer researches? 2 What are the reasons for studying consumer behaviour? 3 How would you formulate the strategy for consumer behaviour? ... needs and changing of the consumer behaviour and practice the Marketing Concept Levi Strauss & Co were selling jeans to mass market and did not bother about segmenting the market till their sales went down The study into consumer behaviour showed their greatest market of the baby boomers had outgrown and their needs had changed They therefore came out with Khaki or dockers to different segments and comfortable... Management of Advertising Agency 14.1 14.2 15 Function of an Advertising Agency Types of Agencies Questions Role of Advertising in National Development 15.1 15.2 General Advertising Cases and Institutional Advertising Questions Index DHARM N-ADVER\TITLE.PM5 349 351 352 355 357 358 361 362 369 This page intentionally left blank PART I Consumer Behaviour This page intentionally left blank 1 Consumer Behaviour . studying consumer behaviour Reasons for studying consumer behaviour • Understanding consumer behaviourUnderstanding consumer behaviour Understanding consumer behaviourUnderstanding. behaviourUnderstanding consumer behaviour Understanding consumer behaviour • Marketing strategy and consumer behaviourMarketing strategy and consumer behaviour