Answer to Question #206565 in Management for GOG

Question

SUBJECT : CONSUMER BEHAVIOUR

Why is it important for marketer to understand consumer behaviour , give 8 points for importance with elaboration ?

Answer 1

In economics, consumer behaviour studies how individual clients, groups, or firms choose and utilize products and services to satisfy their needs and wants. In other words, it reflects on the customer’s actions in the market and the fundamental aim for those actions. On the other hand, a marketer is an individual or a group that ensures clients are retained. Therefore, marketers have to understand consumer behaviour. They expect that understanding them would enable them to determine the products and services required in the marketplace. They also expect to know the obsolete products and services present the goods to the consumers.

Importance of a marketer to understand consumer behaviour

1.     Consumer differentiation: It entails distinguishing a customer from other customers. It is significant for a marketer since it helps develop different marketing strategies for different target groups based on demographics or geographical location. Thus, customer differentiation leads to serving many people, which leads to a firm’s growth.

2.     Customers retention: Consumer behaviour also entails retaining the existing clients. Thus, marketers need to understand consumers’ behaviour for them to retain customers. Marketers should develop tactics that would convince clients to purchase the goods again and again.

3.     Design relevant marketing schedule: Understanding consumer behaviour ensures a marketer creates effective and efficient marketing campaigns. The campaigns could be based on factors like the different consumer groups. Each target group could have its campaign based on their tastes and preferences on products or services. Also, how the campaign is conducted could be based on the specific consumer group. For instance, if it’s a good targeting the youth, the advertisements could be run on social media platforms in a fashioned manner for them to be attracted.

4.     Predicting market trend: A market relied on consumer consumption. Thus, conducting a consumer behaviour analysis indicates a shift in the market. When a marketer researches consumer behaviour, it enables them to save a lot of resources. It is because it makes them avoid producing goods that might not be profitable at that time.

5.     Competition: Different brands offer competitive advantages. It is significant for a marketer to understand consumer behaviour since it enables understanding and facing competition. For instance, studying consumer behaviour makes the marketer know if the client is buying from the competitors and why.

6.     Innovate new products and services: Studying consumer behaviour helps marketers innovate new products or services for their clients. The innovation aims to meet customers’ needs and wants. It leads to customer retention and attracts new clients.

7.     Improve customer service: Researching on consumer behaviour assists a marketer in developing a client service strategy. In most circumstances, the services depend on demographics. For instance, a marketer would spend more time on other customers who have less knowledge of their products and services to ensure they know every detail. Thus, consumer behaviour helps a marketer to develop relevant customer service.

8.     Stay relevant in the market: Knowing consumer behaviour helps marketers ensure they remain pertinent. The world is dynamic, and changes occur in daily lives. Therefore, marketers should be aware of the market trend and current products and services to remain relevant and avoid losing their market shares.