CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS Institute of Management Studies (Autonomous) pg. 1 INTRODUCTION Marketing:- Marketing is as old as human civilization. Many people see marketing only as advertising or selling. In reality, true marketing doesn’t involve the art of selling what you make but knowing what to make. Modern organizations gain market leadership by understanding consumer needs and finding solutions that delight customers. If customer value and satisfaction are absent, no amount of advertising or selling can compensate. The aim of marketing is to build and manage profitable customer relationship and that is the need of the hour. Marketers around the globe must study the consumer needs and wants, select target market they can serve best, and design product, services and programmers’ to serve this market. They attract new customers by promising superior value, they keep and grow current customers by delivering superior satisfaction. Marketing has gone beyond business function, it is considered and adjudged has a distinct philosophy, in that it guides the entire organization towards sensing, serving and satisfying consumer needs. Marketing encompasses not only manufacturing companies, wholesalers and retailers but also covers all kinds of individuals, organizations, lawyers, accountants and doctors. They use marketing to manage the demand for their services. Even politicians in our country use marketing strategy to get rates. The organizations in this competitive era need to know how to define and segment markets, develop attractive value propositions and build strong equity. They must also know how to price their products or services to make them attractive and affordable. In addition they should know how to choose and mange intermediaries to make their products available to customers Technological advancements, rapid globalization, and paradigm shift in economic system that is moving away from socialism to capitalism, cross-cultural relationship and other environmental developments are causing profound changes in the market place. The
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CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS
Institute of Management Studies (Autonomous) pg. 1
INTRODUCTION
Marketing:-
Marketing is as old as human civilization. Many people see marketing only as
advertising or selling. In reality, true marketing doesn’t involve the art of selling what you
make but knowing what to make. Modern organizations gain market leadership by
understanding consumer needs and finding solutions that delight customers. If customer value
and satisfaction are absent, no amount of advertising or selling can compensate.
The aim of marketing is to build and manage profitable customer relationship and that
is the need of the hour. Marketers around the globe must study the consumer needs and
wants, select target market they can serve best, and design product, services and
programmers’ to serve this market. They attract new customers by promising superior value,
they keep and grow current customers by delivering superior satisfaction. Marketing has gone
beyond business function, it is considered and adjudged has a distinct philosophy, in that it
guides the entire organization towards sensing, serving and satisfying consumer needs.
Marketing encompasses not only manufacturing companies, wholesalers and retailers
but also covers all kinds of individuals, organizations, lawyers, accountants and doctors. They
use marketing to manage the demand for their services. Even politicians in our country use
marketing strategy to get rates.
The organizations in this competitive era need to know how to define and segment
markets, develop attractive value propositions and build strong equity. They must also know
how to price their products or services to make them attractive and affordable. In addition
they should know how to choose and mange intermediaries to make their products available
to customers
Technological advancements, rapid globalization, and paradigm shift in economic
system that is moving away from socialism to capitalism, cross-cultural relationship and
other environmental developments are causing profound changes in the market place. The
CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS
Institute of Management Studies (Autonomous) pg. 2
marketers cannot be mute speculators in the face of rapidly changing marketing environment.
These new development and horizons signify a brand new world of opportunities for pro-
active and forward thinking marketers.
Today marketers must build and manage profitable customer relationships from the
view point of customer orientation. They should also build and manage strong brands;
harness new marketing technologies in this digital age owing to explosion of the internet
resultant business, business to consumer, consumer to consumer and business to consumer
are having dramatic on both buyers and marketers who serve them. Today marketers must
know how to leverage new compute, information, communication and transportation
technologies to connect more efficiently and effectively with the customers and marketing
partners in this new digital age.
As technological development makes the world an increasingly smaller place,
marketers must know and market their brands globally and in socially responsible ways. The
best practices in marketing of products or services will ensure the global success.
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Institute of Management Studies (Autonomous) pg. 3
Market:-
The term market is used to mean “an aggregate of potential demand for a commodity
or service”.
“Market is a set of actual and potential buyers of a product.”
-PHILIP KOTLER
Philip Kotler also defines market as “an area of atmosphere for a potential exchange”.
Market is one which makes possible the exchange of goods or services for a consideration.
Relevance of Marketing:-
Marketing is consumer oriented process: A business exists to satisfy human needs.
Therefore, it is essential that the organization must first find out the customer needs.
Only such goods should be produced which best satisfy consumer needs. In the words
of Levitt, instead of trying to market what is easiest for us to make, we must find out
much more about what the consumer is willing to buy.
Market starts and ends with the customers [c2c]: Marketing starts even before
production starts under consumer oriented marketing, it is essential to understand
what customers really want, understanding of customers wants is possible only when
the information is collected from the customer regarding their taste, fashions, buying
habit, etc. therefore, establishment of proper information system is essential for the
success of marketing function. Marketing research helps the organization to
understand customer wants; reliable information helps the organization to produce
right type of goods that are needed by the customer.
Marketing is the guiding element of business: In the past marketing was considered
as a function concerned with getting goods and services into the hands of the
customer. Today marketing is much more than this, modern marketing is a function
directed towards economic development of the country and in raising the standard of
living of the people. Modern marketing involves the integration of various activities
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involved in marketing process. The responsibility of modern marketing is to research
customers at a maximum speed with minimum cost.
Marketing is a system: Marketing has been viewed as an ongoing or dynamic
process involving a set of interacting and interrelated activities to reach customers. It
receives inputs from the environment in the form of valuable in formation. Using this
valuable information, organization supply the desired products and services to satisfy
the customers’ needs and thereby earn profit.
Marketing is a goal oriented process: Marketing seeks to achieve some useful goals
like any other business activity. The very basic aim of marketing is to generate a
considerable amount of profit through customer satisfaction. Increase in volume of
sales, increase in profit and increase in growth are the three objectives of marketing.
While attaining this objective, organizations should assume social responsibility to a
great extent.
Marketing is a process of exchange: Marketing is essentially a process of exchange
of goods and services or exchanges between the buyers and sellers. Goods and
services are handed over to the buyers by the organization and the customers in turn
give the money to the organization. One more important exchange observed in
marketing is information, marketing information is exchanged between the buyers and
the sellers. Information is power. Information is the foundation of which the
organizations success depends.
Marketing is a process: marketing involves various functions to be performed in an
order. Various activities should be properly related. This process should be flexible.
Any changes in social and environmental factors influence the marketing process.
Relevance of Marketing
Consumer Oriented Process
Starts and ends with Customers
Guiding Element of
BusinessIt's a System
It's a goal oriented process
Process of Exchange
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Approaches to the study of Marketing:-
Five basic approaches are commonly used to describe the marketing system. Commodity
approach, functional approach, institutional approach, managerial approach, and system
approach.
1. Commodity approach: Under the commodity approach we study the flow of a
certain commodity and its journey from the original producer right up to the final
consumers.
2. Functional approach: We concentrate our attention on the specialized services or
functions or activities performed by marketers.
3. Institutional approach: Under the institutional approach, main interest center round
the marketing information or agencies such as wholesalers, retailers, transport
undertakings, banks, insurance company, etc.
4. Managerial approach: Combines certain features of commodity, institutional and
functional approach.
5. System approach: A system is set of interaction or interdependent groups
coordinated to form a unified whole and organized to accomplish a set of objectives.
In the model of system approaches we have objectives, input, processor, output,
feedback. The objectives direct the process
Approaches
Commodity
Functional
ManagerialInstitutional
System
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Consumer Behavior:-
Consumer behavior is defined as the behavior that consumers display in searching for
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs. Consumer behavior focuses on how individual make decisions to spend
their available resources on consumption related items. That includes what they buy, why
they buy it, when they buy it, where they buy it, how often they use it, how they use evaluate
it after the purchase and the impact of such evaluations on future purchases and how they
dispose of it.
As individuals all differ in many ways in likes, dislikes, attitudes, cultural
background, income level, etc. Despite such differences, there is a common factor among all
of us. We buy, use or consume regularly food, shelter, clothing, transportation, education,
equipment, necessities, luxuries, services and even ideas. As consumers, we all play an
important role in the overall health of the economy. The buying decisions we make affect the
demand for basic raw materials, for transportation, for production, for banking, etc. They also
effect the employment of workers and the deployment of resources, the success of some
industries and the failures of others.
Buyer behavior model:-
Consumer behavior is a very complex subject because the needs, wants and demands of
human beings are innumerable. The buyers are also influenced by various internal and
external factors. Consumer behavior studies, therefore depends on all major social sciences
like economics, psychology, sociology and anthropology. The influence of this social science
has prompted marketing experts to propound certain consumer behavior models for
explaining model behavior. They are:-
1. The Economic model: The economics of consumer behavior views the buyer as a
rational man and his buying decisions will only be concerned with utility. Deriving
maximum utility from products using his resources will be the economic man’s sole
objective.
2. The Learning model: The learning model takes its cue from the Pavalovian stimulus-
response theory. According to this model, buyer behavior can be influenced by
manipulating the drives, stimuli and response of the buyer. This model is based on
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man’s ability to learn, forget and discriminate.
3. The Psycho-Analytical model: This model is founded on Freudian psychology.
According to this model, the individual consumer has a complex set of deep seeded
motives that drive him towards certain buying decisions.
4. The Sociological model: According to the sociological model, the individual model
buyer is influenced by society. He is influenced by intimate groups and social classes.
5. The Howard-Sheth model: This is a model of buyer behavior totally different from
the marketing view point. The buyer is analyzed here as a system with stimuli has the
input into the system and behavior has the output of the system. In between the inputs
and the outputs, there are variables affecting perception and learning.
Buyer Behavior
Model
Economic Model
Learning Model
Psycho-Analytical
Model
Sociological Model
Howard-Sheth Model
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Factor influencing Consumer Behavior:-
Consumer Behavior is influenced by cultural, social, personal and psychological
characteristics.
1. Cultural characteristics:
Culture: Cultural factors like the buyer’s culture, sub culture and social class
exert the broadest and seep set influence on consumer behavior. Culture is the
most fundamental determinant of person’s wants and behavior. As a person
grow up in society, he learns a basic set of values, perceptions, preferences
and behavior through a process of socialization involving the family and other
key institutions. Marketing people look for cultural shift to find out new
products that may be demanded concerned about health and fitness.
Sub-Culture: The main culture includes smaller groups of sub-cultures within
its fold that provide more specific identification and socialization for its
member sub-culture like nationality, groups, religious groups, racial groups,
communities and geographical various have distinct characteristic life styles.
Social classes: Social classes are homogenous social stratifications in society
whose member share similar values, interest and behavior. Upper class,
middle class, lower middleclass, and lower class are such social classes. Social
class is determent by occupation, income, education, etc. consumers within a
social class may have similar buyer behavior and product and brand
performance.
2. Social characteristics: Social factors like consumers reference groups, family, social
roles, status also influence buyer behavior.
Reference groups: Reference group influence buyer behavior very strongly.
Membership groups can be primarily groups which have direct influence like
family, friends, neighbor and coworkers. Secondary groups can be religious
organizations and trade union. Marketers identify opinion leaders and make
direct marketing efforts towards them. Members of groups watch their leader’s
style and behavior and try to emulate them.
Family: Members of the buyer’s family can exercise a strong influence on the
buyer’s behavior. The family consist of parents, spouse and children.
Marketing people are interested in the roles and influence of the husband, wife
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and children on buying decision. Decision makers, in case of some goods and
services, will be husband oriented, wife dominant and equal.
Roles and status: A buyer may belong to many groups at the same time, like
family, clubs, and associations. His position in each group will be specified by
his role and status. Such roles and status will also influence some of his
buying decisions.
3. Personal characteristics: : Buyer behavior is also influenced by the buyer’s personal
characteristics, notably his or her age and life-cycle stage, occupation, economic
circumstances, life style, personality and self-concept.
Age and Life-Cycle stage: The needs, wants and demands for goods and
services change in the buyer’s life time. Buyers taste in food, clothes, furniture
is related and likely to change. Family lifestyle consists of stages like young
singles, newly married, married with children, elderly couple living alone or
single parents consumptions is shaped by the stage in which the buyers
present.
Occupation: Buyers consumption pattern is also influenced by his occupation.
A factory worker may buy work clothes, work shoes, lunch box, while a
company executive may buy expensive suits, watches, travel accessories,
tickets for air travel, luxury cars, etc.
Economic Circumstances: Economic circumstances of the buyer will affect
his protect choice. This consists of his spendable income, savings and assets,
borrowing power and attitude towards spending and saving.
Lifestyle: Lifestyle is an individual way of living, which is reflected in his
activities, interests and opinions. Consumers with the same cultural, sub
cultural, occupational and social class background could have varying
lifestyles. This is a factor that has to be thoroughly studied by marketing
people.
Personality and self-concept: Personality is the persons distinguishing
psychological characteristics that lead to relatively consistent enduring
responds to his or her own environment. It is described in terms of such traits
like self-confidence, dominance, autonomy, sociability, defensiveness and
adaptability.
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4. Psychological characteristics: Motivation, perception, learning, beliefs and attitudes
also influence buyer behavior.
Motivation: Boyer’s needs are normally biogenic and psychogenic. When
they are aroused to a sufficient level of intensity they become motives, urging
the buyer to seek satisfaction. Abraham Maslow explained the driving force of
people’s needs as consisting of a need hierarchy. This included physiological
needs, safety needs, social needs, esteem needs and self-actualization needs.
Perception: Once motivated, how the motivated buyer acts is influenced by
his or her perception of the situation. That is, how the buyer receives, selects,
organized and interprets information. Buyers can emerge with different
perception of the same stimulus object because of three perceptual processes –
selective exposure, selective distortion and selective retention.
Learning: Buyers learn through their action. Learning involves changes in the
buyer’s behavior as a result of his experiences. The buyers learning is
produced through his interplay of drives, stimuli, responses and reinforcement.
Beliefs and attitudes: People beliefs and attitudes also influence the buyer
behavior. Beliefs may be found on knowledge, opinion. Attitudes reveal the
judgments, feeling and tendencies of the buyer towards an objects or an idea.
Marketers should try to fit their product offerings into the buyers existing
attitudes rather than trying to change attitudes, which is a difficult task.
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Consumer Perception:-
Introduction:-
As we are being different individuals tend to see the world in our own special ways.
Individual act and react on the basis of their thinking, nature and philosophy of life not on the
basis of reality. For understanding consumer behavior, one must try to understand his
perception.
Every individual perceives the world through his own perception. “Because individual
make decision and take action based on what they perceive to be reality, it is
important that marketers should understand the whole implication of perception and
its related concepts. So that can more readily determine what factors influence
consumers to buy.
The world as we see is different than what it is in reality. Once year as per ones
perception, not what really set?
People working in an organization differ in their action due to difference of opinion.
It is a source of one’s knowledge about the world.
Every individual perceives the world through his senses like hearing, touch, smell,
and sight, awareness of heat, cold, pain and pleasure.
People working in an organization differ in terms of physical feature like age and sex,
background characteristics like training and education and one’s personality traits like
aggressiveness, submissions, optimistic. All these factors helps in the formation of one’s
perception.
Meaning of Perception:
“Perception includes all those process by which an individual receives information about his
environment – seeing, hearing, tasting, feeling and smelling”.
-JOSEPH REITZ.
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Nature of Perception:-
In fact perception refers to the manner in which an individual experiences the world
as every individual approaches the life differently.
One hears, as per ones perception, not what really said. People buy what is best to
them, not what is best. It is due to perception that a particular job may appear good to one and
bad to another.
An individual’s own needs, objectives, problems, interests and background controls his
perception in each situation. Every individual has a perceptual world that he’s selective and
partially concentrating on his interest and likings.
o Understanding the difference between the perpetual world and real world is important
to the study of consumer behavior as well as human relations.
o People’s perception is determined by their needs as for instance mirrors at amusement
park distort the world in relation to their tension.
o In fact perception is more important for the manager who wants to avoid making
errors. While dealing with people and events in the work policies. In order to deal
subordinates effectively, a manager must understand their perceptions properly.
o There is difference between perception and sensation. Sensation is the response of a
physical sensory organ but perception is more than just a sensation.
Factors affecting Perception:-
1) INTERNAL FACTOR:
a. Need and desire: Prof. Maslow has given needs hierarchy what effects
individual perception like basic need, safety and security needs, love and
affection needs, ego and esteem needs and finally self-fulfillment needs.
b. Personality: One’s personality has got deep impact on one’s perception like:-
Individuals who have strong and secure personality perceive others as
warm and secure.
Individual weak in certain aspects tends to find faults in others.
Self-accepting individuals perceive themselves as liked, wanted and
accepted by others.
Person having confidence and faith in their individuality perceive
things favorably.
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2) EXTERNAL FACTOR:
a. Size: Size takes that larger the object, the more likely it will be perceived.
Bigger machine, larger building and pictures get more attention than smaller
ones.
b. Intensity: Intensity, normally attracts to increase selective perception. Strong
and high intensity likes leads to high perception while doing “neon signs
advertisements”.
c. Motion: The principle of motion states that people will pay more attention to
moving objectives in the field of vision.
d. Repetition: Generally repeated external stimulus attracts more attention than a
single time.
e. Status: It is seen that one’s perception is also influenced by the status of
perceiver.
f. Contrast: The contrast principle states that external stimuli which stand out
against the background will attract more attention.
3) STIMULUS FACTOR:
a. Similarity: The principle of similarity states that the greater the similarity of
the stimuli, the greater tendency to perceive them as a common group.
b. Proximity: Things being equal, things near to each other tend to be perceived
as belonging together.
c. Principal of Continuity: The principle of closure and continuity emphasis
that an individual tends to fill gaps in complete pattern of stimuli in ways that
make them meaningful.
d. Principle of Context: In the perception the principle of context is of immense
importance. Different words, symbols, gestures, pose, etc. have got different
meaning in different context.
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Perceptual Process:-
Perceptual process is a complex concept through which people process information
into decisions and attention. It is a way of impression about oneself, other people and daily
life experience.
It is process through which people receive, organize and interpret information from their
surroundings and environment. The perceptual process has got mainly 4 stages. They are:-
1. Input stage
2. Processing stage
3. Output stage
4. Behavior stage
1) INPUT STAGE: There are many things in the environment through which perceiver
are effected like information, objects, events and people and this is known as input.
2) PROCESSING STAGE: It involves:
a) Confrontation
b) Registration
c) Interpretation
d) Feedback
e) Reaction
In fact perception starts when an individual is confronted with a stimulus
situation.
Under second stage of registration there is involvement of physiological
mechanism. To sensory physiological ability is to see and hear which effect
one’s perception
In third stage of perceptual interpretation deal which interference has drawn
observed meaning from perceived events or objects?
Then the fourth stage of feedback is important for interpreting the perceptual
data. Psychological feedback like facial expressions, change in tone of voice
and rose eyebrow is likely to effect and individual behavior at work.
Finally perception ends in reaction which may be positive and negative.
3) OUTPUT STAGE: Due to perceptual input and processing mechanism there is
perceptual output which an individual gets in the form of changes in one’s attitude,
opinion, beliefs, feelings, etc.
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4) BEHAVIOR STAGE: The perceiver behavior is shaped by the perceived outputs i.e.
change in attitude, behavior, opinions, belief and approach.
Characteristics of the Perceiver:-
One’s needs and motives: Perceiver’s needs and motives effect his perception. A
need is a feeling of tension when one thinks he is missing something.
One’s beliefs: An individual’s beliefs have got a deep effect on one’s perception.
A fact is conceived not on what it is but what a person believes it to be.
One’s past experience: One’s past experience good or bad, effects the one’s
perception.
One’s expectations: It is the expectations which effect the perception of a person.
In an organization technical, non-technical, financial and non-financial people
have got different expectations and perception.
Current psychological state: An individual psychological and emotional and
mental setup may influence how he perceives the things.
One’s Self-concept: In fact one’s self concept plays an important role in
perceptual selectivity.
Situation: The situation in which an individual sees the objects deeply effects
one’s perception.
Dynamics of Perception:-
Sensation – Immediate and direct response of the sensory organs to the stimuli.
Stimulus – Any unit of input to any of the senses.
Sensory Receptors – Eyes, Ears, Nose, Tongue and Skin.
The Absolute Threshold:-
o The lowest level at which an individual can experience a sensation. [Detecting
difference between “Something” and “Nothing”.
Sensory Adaption:-
o Getting used to Senses.
CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS
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The Differential Threshold:-
o Minimal difference detected between two similar stimuli.
o Ernest Weber 19th Century.
Marketing Applications:-
o Negative changes are not readily seen (price rise, reduce in quantity).
o Positive changes are clearly seen.
Elements of Perception:-
Perceptual Selection
Perceptual Organization
Perceptual Interpretation
Perception Selection:-
Consumer are by nature selective, they unconsciously exercise a great deal of
selectivity as regards different stimuli present in the environment. There are a number of
stimuli in the environment and the individual cannot perceive all of this.
Factors affecting Perceptual Selection:-
1. Nature of Stimuli: There are numerous marketing related stimuli that effect
consumer’s perception. Such as type of product, physical feature, packaging, color,
brand name and advertisement.
2. Motives: In fact a motive perceives things. The stronger the need, the greater the
tendency to receive related stimuli and ignore the unrelated stimuli in the
environment.
3. Expectations: It is generally seen that people see what they expect to see and they
expect to see what they used to see based on their past experience.
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Selective Perception:-
Selective Exposure – People look for pleasant and sympathetic messages and avoid
painful or threatening ones.
Selective Attention – People look into ads which will satisfy their need.
Perceptual Defense – People avoid Psychologically threatening ones. Hence
constantly change the ad nature. [Smoking – warning with words, and now images]
Perceptual Blocking – People block stimuli which is bombarded.
Perceptual Organization:-
People see everything as a whole.
Gestalt Psychology.
Figure and Ground
Grouping
Closure
Figure and Ground:-
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Institute of Management Studies (Autonomous) pg. 18
Grouping:-
Closure:-
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Perceptual Interpretation:-
Stimulus are often highly ambiguous or weak.
Stereotypes.
Physical Appearances.
Descriptive terms.
First Impression.
Halo Effect.
Stereotypes:-
People carrying biased pictures in their minds of the meanings of various stimuli.
People hold meaning related to stimuli.
Stereotypes influence how stimuli are perceived.
Problematic Ad of United Colors of Benetton:-
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Institute of Management Studies (Autonomous) pg. 20
Physical Appearances:-
People associate quality with people in the ads.
Attractive models have positive influence.
Colors of Juices.
Shape of the Package.
For example: Which one is orange juice?
Descriptive Terms:-
Stereotypes are reflected in Verbal Messages.
o Accenture – High Performance, Delivered.
o KFC – Finger licking’ good!
o Mc Donald’s – Happy Meal! (targeting Indians who are price conscious)
First Impressions:-
First impressions are lasting.
The perceiver is trying to determine which stimuli are relevant, important or
predictive.
CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS
Institute of Management Studies (Autonomous) pg. 21
Halo Effect:-
Consumers perceive and evaluate product or service or even product line based on
just one dimension.
Important with spokesperson choice.
Tampering the Halo Effect is detrimental to the organization.
For Example:-
o Toyota – Quality.
o Ford – Safety.
o Sony – Music.
o Samsung – Android.
The Halo Effect helps Adidas break into new Product Categories!!!
Consumer Imagery:-
Consumers perceived images about the product, services, prices, product quality,
retail stores and manufacturers.
People buy the product to enhance their self-image (relating themselves to the
product).
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Institute of Management Studies (Autonomous) pg. 22
Positioning:-
Image of the product in the minds of the customer is also called as POSITIONING.
Image of your product gear up your sales, but the product should also deliver its
performance or quality.
Product Benefits should be focused more than its physical attributes.
Umbrella Positioning:-
Nicolo Pome, UK marketing director for Nivea’s parent Company Beiersdorf, said
“We wanted to find a more relevant role for the Nivea brand in our target
markets’ minds”. The awareness of the Nivea brand is vast but we needed to find a
way to engage with the audience to a greater degree.
An umbrella strategy is Marketing practice that involves selling many related
products under a single brand name.
For Example: LION.
Positioning Products and Services:-
Model of Strategic positioning:
CUSTOMER PERCEPTION TOWARDS TITAN PRODUCTS
Institute of Management Studies (Autonomous) pg. 23
Typology of Strategic Positioning:-
Top of Range – Upper Class – Rolls Royce
Service – Impressive Service – Pizza Hut – 30 Mins
Value for Money – Affordability – Megamart
Reliability – Durability – Lakshmi Grinders – 7 years Warranty