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Assignment 1
Understand the role of personal selling within the overall marketing strategy
(LO1)
a.) Explain how personal selling supports the promotion mix ( LO1.1)
Push-pull strategy was originally developed from logistics and supply chain
management, now widely used in marketing. Push refers to a situation that a
product is being stamped in the customers mind after repeated advertising.
Companies typically push their product information to consumers. Pull implies
that the customer in turn feels the need to seek the product when the advertising stops.
Consumers typically pull these information when they need to purchase. Like all
major gold and jewellery retailer, CTF constantly invests a fair expense in advertising
and other promotional mixes, to push or instill a reputable company image in the
customers mind. It is of ultimate importance that customers have complete trust of
the jewellery retailers product, as the purchases represent both precious monetary and
sentimental value for them. Even in the absence of advertisement, the customers will
automatically pulled or drawn to CTF to seek jewellery product, simply because of
the image stamped on their mind with trust and likely fulfillment of their want-
satisfaction.
b.) Compare buyer behavior and the decision making process in different
situations ( LO1.2)
Understanding the buyers behavior and their purchase decision process are crucial to
identify the right market segment and design a marketing campaign that will attract
attention.
Consumers behavior are influenced by 4 main factors, cultural, social, personal and
psychological factors. Cultural factors include social classes ranked according to a
form of social hierarchy, and cultural trends widely followed by people to be
conformed or complied with social pressure. Social factors include reference groups
and membership groups related to social origin, age, work, etc., family, social roles
and status that individual is supposed to have and do according to his profession,
gender, etc. Personal factors include age and way of life (such as values, consumer
habits), purchasing power and revenue, lifestyle, personality and self-concept.
Psychological factors include motivation that drives a purchasing behavior,
perception, learning, beliefs and attitudes.
Buying interest and motivation are a combination of facts and emotion that generate
a feeling of the need to purchase. They are also the factors influencing the eventual
choice of a particular product. Buying interest and motives include profit or gain, fear
of loss, comfort and pleasure, avoidance of pain, love and affection, pride and
prestige. Profit of gain means saving or making money, more profit longer wear or
personal advancement. Fear of loss maybe preventing loss or reducing cost, safety
reasons, insurance, security, guarantee, etc. Comfort and pleasure includes enjoyment,
beauty, morale, entertainment, recreation, etc. Avoidance of pain includes protection
or relief of pain, less work, save time, no worry, etc. Love and affection includes
family, social approval, friendship, loyalty, security of loved ones, better public
relations, etc. Pride and prestige includes style, fashion, social acceptance, imitation,
honors, recognition, leadership, public image, etc.
For CTF, the customers buying valuable jewelry are often those buying for self use
purpose or gift for their beloved ones. In the former situation, a customer buys for his
or her own personal use, his/her buying interest & motives are mainly based on
pleasure, and to some extent based on pride and prestige. While as in the latter
situation, where a customer buys a piece of jewelry for his or her beloved ones (as a
gift), his/her buying interest & motives are mainly based on love and affection. The
buying behavior and decision making process can be very different as well as similar
in certain aspects.
In the former situation, for example, a middle age lady buying a piece of jewelry for
her own use, the consumer behavior is largely influenced by personal factors and
psychological factors. Personally, her lifestyle, when and where to wear the piece of
jewelry (eg. special occasions), her financial resource will determine the range of
value she is buying. If it is for daily use, she will consider more practical, affordable
and hard wearing material such as silver or karat gold. If it is for special occasion, she
will consider more elaborate pure gold items, additional precious stone, pearls, etc.
Psychologically, her motivation such as self pleasure, perception such as
appropriateness for her age and job environment, are other factors affecting her
buying behavior. To a certain extent, pride and prestige takes a certain effect
depending on her status and profession. The buying decision making process is fairly
typical and rational here, commencing with recognizing her own needs, searching for
information by browsing in shops or internet, then evaluate alternatives to make
buying decision. It is very much a logical process with the advantage of staying
within her needs and affordability.
In the latter situation, for example, a young guy buying a gift for his girlfriend, the
consumer behavior is heavily influenced by the cultural factors and social factors.
Culturally, his buying behavior is affected by the social class that they are in, and the
cultural trend widely followed by most people at the prevailing place and time. Being
in a working class, middle class or elite socialite determines the expected range of
value that he is going to purchase. Socially, he will be also concern with her
acceptance among her girl friends social group, family and even co-workers. The
more pronounce this factor will be if he is buying an engagement ring for marriage
proposal. He will have to consider the perception and conformity or compliance with
social pressure from the view of the recipient, whom in turns consider the same from
her family or peer. Therefore the decision making process will base more on problem
recognition than actual need. He has to ascertain not only her girlfriends likeness of
the item, but also the consequential perception from her peers or family. While
evaluating purchase alternatives and making purchase decision, the process is similar
but it is based on projected acceptance rather than fulfillment of certain needs. The
advantage is that he will carefully consider the recipients feeling when wearing the
gift. The disadvantage may be that he will more likely to over-spend his budget.