Consumer Behaviour - Assignment

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CONSUMER
BEHAVIOUR
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Table of Contents
INTRODUCTION...........................................................................................................................3
.........................................................................................................................................................3
MAIN BODY...................................................................................................................................3
Consumer Decision Making Process..........................................................................................6
Consumer Behaviour Model.......................................................................................................8
ENGEL KOLLAT BLACKWELL MODEL.........................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
This report covers issues such as marketing of electric vehicles, 7 p's of marketing,
marketing campaigns all in order to know how Land Rover is spreading the awareness among
people and how they are promoting their upcoming vehicle the new Range Rover electric which
is going to launch in 2021 and they are introducing a crossover with Jaguar. This report also
emphasises on how companies are tying up with the government and how the government is
providing the benefits to general public on their own with a focus on saving the environment and
thinking about a clear future. Companies and the government of many nations are working on
these because if not now then their will be no resources to provide or safe. Elctric vehicles don't
emit carbons in the air as compared to the cars which runs on gasoline.
MAIN BODY
Marketing campaign means promoting the products through different types of social
media including television, radio, print and other type of online platform. These are used by
company operating in highly competitive market. Range Rover electric must use marketing
campaign strategies to market their products. The marketing campaign of Range rover electric
car should focus on increasing the sales of this electric car as much as possible as they have to
cover the previous year losses. They must adopt aggressive marketing campaign techniques to
brand their electric car. Range Rover must focus their marketing efforts in China as there
government is heavily pushing use of fully electric cars.(Jeong, 2017) Government is already
helping and increasing the awareness of electric cars and vehicles which are hybrid and they are
not just promoting in one countries but many countries are doing it as to save the nature and
betterment of the environment. To promote it Government is providing people with benefits such
as rebates on purchases, exemptions on tax, credits on tax and perks like they will allow these
cars on the lane which are made specifically for buses and there will be no charges imposed
when traveling out of the city or on express highway. Charges on parking, toll taxes are levied
for electric cars. The amount is on redemption is calculated on the basis of range of battery and
size of the vehicle. Some countries are also increasing the benefits on the conversion of fuel
vehicles to electric vehicles or to hybrid electric vehicles from combustion engine vehicles. Land
Rover is preparing to launch their first vehicle which is fully electric of them and they have
announced in the market that they are coming up with a crossover which is a luxury car and it s
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going to be twinned with the Jaguar XJ and it is going to be launched in late 2021. They have
launched a new car Defender as a flagship for off- road vehicle and now the British manufacturer
is putting their focus on electric models. This measure is taken to cover up the recent losses
which Jaguar and Land rover were facing so now they are coming together with their first
electric vehicle. The prototype of Range Rover electric vehicle was shown in 2017 and now they
are taking to compete with the likes of Porsche Macan and Audi E- tron Sport back. Land Rover
is using various promotional tools and activities to increase awareness among people so when
they launch the car it will be a instant hit. They are tying up with government so that they can
reduce the prices of vehicles and more measures such as redemption on tax etc.
MARKETING CAMPAIGN
The Range Rover electric car uses Facebook and YouTube to market their product as
around more than 80% of the customer are in these two social medias, so this helps the
advertisement reach people who have indicated their interest in buying car. Researches have
shown that auto ads have double the normal average Facebook ads. Land Rover conducted a
survey in which they got to know that most people don't trust electric cars they don't have
confidence which can make them switch to electric vehicles. Studies showed that more
awareness is needed to spread into the market so that they can have more faith in this sector.
That is why Land rover is focusing on advertising and promoting these cars to an extent.
Companies have invested around $2 billion in the market to encourage people about electric
vehicles. To accelerate the shift to make people shift to electric vehicles Land Rover are working
on policies that will combine them with the power grid so that it will be beneficial for the
drivers, companies and users using electricity.(Hauge and Ellingsen, 2018) If the deal works
successfully not only vehicles will be more efficient but it will also help up to improve the
renewable resources such as solar energy and wind energy. Their aim is to a future with clean
energy and renewable resources. By promoting more Land Rover is helping families with low
income as electric vehicles don't emit carbon in the air which is good for them as electric
vehicles don't pollute the air. The government is also working on to reduce the prices of electric
vehicles so that more and more peoples are influenced to buy these vehicles. In the terms of
service these cars are cheaper to run on the road in terms miles.
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7P's OF MARKETING MIX
Range Rover will be launching an electric car in 2021, the company has made a investment in
this are to cover the recent heavy business losses in the previous year.(Diehl, 2018) The
company must keep in mind the 7p's of marketing mix.
PRODUCT
Since the customer are now being aware about the environmental conditions then ever
before and also the prices of petrol and diesel are rising at a fast rate the electric car introduction
will most probably be successful. Also, this Range Rover electric car would give a tough
competition to the all electric Porsche macan and also the forthcoming Audi e-tron. So the
launch of the Range Rover electric car is pretty right decision for the company to grow in the
current market and cover all of its losses.(Folger, Poole and Stutman, 2017)
PRICE
The company must make sure that the prices set by them are appropriate to the realities of
the current market conditions. Since Range Rover has provided with excellent products to their
customers the company has build up a great brand value, so for their new Range Rover electric
the company has adopted a premium pricing policy as the company thinks that the customer can
pay a bit extra for their electric car.(Harff, 2018)
PLACE
This decision must be taken keeping in mind that the location is suitable to the customers,
as this can greatly affects the company's sales and an appropriate location can boost up the sales.
Range Rover has an excellent network of distribution as it takes help of the parent company Tata
group for the distribution of its products. The Range Rover electric has been planned to have
major sales in United Kingdom, India and China. So Range Rover electric can easily deal with
this factor while selling its electric car because of having a strong distribution channel.
PROMOTION
Range Rover electric has a strategy to launch an auto show before the launch of any
product to generate maximum coverage of their product. They can use all type of social media
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platform to market their electric car, they generally put their launch videos on YouTube. This
factors too can easily be dealt by Range Rover.
PEOPLE
This P include employee of the Range Rover electric car like sales executive, manager,
helpline staff etc. After the launch of the Range Rover electric car, Range rover should mainly
focus on their helpline staff as they will solve the customer queries and problem with the new
electric car. This will help the company to solve the customers problems. Range Rover electric
should work on these feedback and keep improving their Range Rover electric car.
PROCESS
This P involve the different processes involved in delivering the product to the customer.
This P will help in fast standard delivering of the product and thus saves the time and money by
increasing their efficiency. Range Rover electric car has standard process of delivering their car
through their parent company's showrooms. The customers have easy access to these showrooms
and thus have an efficient process in delivering of their electric car.(Rahim, 2017)
PHYSICAL EVIDENCE
This P refers to everything the customer of Range Rover electric car will see when
interacting with the sales person. This will include the environment of the showroom where the
company is selling their car, the packaging, the branding etc. The showroom interior, fixtures
and layout will show the brand image and this may help increase the company's sales.
Consumer Decision Making Process.
Problem recognition – Marketers use this stage as this stage describes the first thing customer
face in decision-making is problem recognition or need. So if marketers want to make their
company successful then they should know the need of customer and if marketers will able to
find out what are the problem they faced during finding their need, then they will able to impact
directly to customers mind. For example as Range Rover marketer had found the need of
consumer and now they are making electric cars for their customer.(Green, 2018)
Information Search – When customer clears the first stage of decision-making now they look for
information about their need. Marketers can use this stage by letting know which type of
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information or data customer is in need of to take decision. As decision taking is not easy until
there is full information about the thing person need. So marketers can provide information as
per their need and which will help them in finding their target market as well. For example Rang
rover has found the need of customer in Auto mobiles industry, and they have taken all the
information which customer has collected in second stage and also provide them information to
take decision.(Sunstein, 2018)
Evaluation of Alternatives After finding all the information, customer finds so many
alternatives to take decision as collecting information helps customer in getting so many ideas
and things to get upon it, at this time marketer can provide the customer their product so that
they can compare it with other products. Rang rover has given its customer a to purchase the
electric car which will help them a lot in taking decision.
Purchase – Purchase is the most important decision for customer as they have taken decision of
finding need, getting information about need then evaluation of alternatives, after all this
decision the most vital decision is purchase decision. Once customer had purchased product then
customer can't change mind as all the money will be spent in it. All the hard work of marketers
in early stages leads customer to purchase their product. If customer purchases car of Rang rover
then he is only eligible to give review, and the review is in next stage of customer decision-
making process.(Burke, Hsiang and Miguel, 2015)
Post Purchase – Post purchase only explain either customer is satisfied or not, as customer had
purchased product then the thing which give them value is satisfaction. Customers are only
satisfied when they get those qualities and features which they have expected during purchase, if
they didn't get what they had expected then they get dissatisfy and give bad reviews to company.
Rang rover are creating their products in such a manner that after selling their product they will
only get good review as per their experts had told.
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Consumer Behaviour Model.
ENGEL KOLLAT BLACKWELL MODEL.
This model is giving information about consumer behaviour with taking perspective of decision
making process in the way of four steps and also help in finding other consumer behaviour
related information. This model also helps in solving complex problems and also it is a learning
model.
The four steps which come under this model:
Information process : Information process in this model defines that when a person receives
stimuli form the market through the marketing by company. So when person sees so many things
in market, everything is in mind for some period, but as the things which gives him high stimuli
remains in customer mind for long period of time. Stimuli plays a get role in consumer behaviour
as id stimuli is high for any product or service then customers will keep those things in mind
until they will purchase it. For example Rang rover is giving advertisement of its new electric car
and if the advertisement and marketing of its new car is attractive then customer will have great
stimuli over it otherwise they will see it and forgot about this after few hours or minute. So
information processing tells that how information process in consumers minds.(Boulding, 2018)
Central Control Unit : The first thing which comes to consumers mind is information and this
information retention in mind are manage in central control unit. As we see in computer there is
control unit which control and save all the data which we have received or saved in past, similar
to this humans are having central control senses in mind which helps them to save the
information which they are need. Generally humans remember those things which are essential
for them, or the things which they want to keep n their mind. This central control unit give them
power to compare the things by their past experience. For example Rang rover has given their
advertisement of new product now its totally depends upon customer that they want its product
or not, as customers already make idea in their mind by comparing its product with other
companies product which is in mind of consumer.
Decision process – In earlier discussion of decision process its had been discussed that it
contains decision making problem which is faced by consumer while purchasing any product.
The process includes, understanding the need after understanding the need the next thing comes
is finding the information related to the need found, then after getting information consumer start
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making alternatives and after making it the most important thing which comes in decision
making process is purchase decision, when the purchase decision has made the last thing which
consumer do is giving is consumer is satisfied or not.(Girvan, 2017) Decision making is very
important things as it requires so much knowledge and information as if decision is wrong then
each and
External influence : External influences consist the things which come in environment and also
those factor which are not in persons control. The factor which influence consumer behaviour
are like culture, technology, political, society and other environment factors. External factor
gives a great impact on consumer behaviour as they directly affect consumers minds and health.
External factor make decision making hard for consumers. For example as Rang rover is
launching its new electric cars so for customers it is very hard to take decision of purchasing it as
they are having high influence of external environment. This environment is very broad or macro
which is so dynamic that it is not in any person hand to understand it as it contains so many
things in it.(Wallensteen, 2018)
CONCLUSION
In this report it had been concluded how companies are marketing their product to make
consumer buy it. In this report the company who's example is given is Rang rover, it is launching
a new cars which are electric cars. There are many marketing strategies which Rang rover is
using to make their cars famous and may get good profit from it. Company has manufacture its
product to get consumer high stimuli over it. This report also provide description about decision
making of the consumer. Also this report include consumer behaviour model of Engle Kollat
which describe consumer behaviour. Consumer behaviour is the main thing which marketers has
to understand as to make their company brand in their mind.
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REFERENCES
Books and Journals
Boulding, K.E., 2018. Conflict and defense: A general theory. Pickle Partners Publishing.
Burke, M., Hsiang, S.M. and Miguel, E., 2015. Climate and conflict. Annu. Rev. Econ.7(1),
pp.577-617.
Diehl, P., 2018. Environmental conflict: An anthology. Routledge.
Folger, J., Poole, M.S. and Stutman, R.K., 2017. Working through conflict: Strategies for
relationships, groups, and organizations. Routledge.
Girvan, N., 2017. Corporate imperialism: Conflict and expropriation. Routledge.
Green, L.C., 2018. The contemporary law of armed conflict.
Harff, B., 2018. Ethnic conflict in world politics. Routledge.
Hauge, W. and Ellingsen, T., 2018. Causal pathways to conflict. In Environmental conflict (pp.
36-57). Routledge.
Jeong, H.W., 2017. Peace and conflict studies: An introduction. Routledge.
Rahim, M.A., 2017. Managing conflict in organizations. Routledge.
Sunstein, C.R., 2018. Legal reasoning and political conflict. Oxford University Press.
Wallensteen, P., 2018. Understanding conflict resolution. SAGE Publications Limited.
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