Marketing Fundamentals and Buying Behavior Analysis

The assignment explores the concept of marketing fundamental and its application in capturing market share. It discusses various factors that influence buying behavior, including economic situation, psychophysical factors such as perception, beliefs, and attitudes. The report concludes that marketing fundamental can be used by organizations to target the right market and maximize sales. A suitable segmentation strategy is proposed for Tesla to satisfy customer needs.

Marketing Fundamentals

EXECUTIVE SUMMARY
Marketing fundamentals help the company in marketing plan and strategies. Through it
market reach of organisation can be enhanced and it can grab more market share. This report
discuses about different type of buying behaviour of consumers and its impact in marketing
strategy of the organisation. Influence of purchasing pattern on segmentation is also mention.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY .................................................................................................................................4
Factors that influence buyer behaviour and their implications for marketing and segmentation
strategies......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing fundamentals are the tools which can be used by the organisation in the
marketing of their company. It provides the directions to the marketing manager that how it can
do better marketing and implement marketing strategies. This report discusses about Tesla
which is an American automotive and energy company. The aim of this is to is to analyse the
factors that affect buyer behaviour and their implications on marketing and segmentation
strategies and it covers the influencing factors in the report.
MAIN BODY
Factors that influence buyer behaviour and their implications for marketing and segmentation
strategies
Buying behaviour is the decision of the consumer that attract him to purchase the
products which can fulfil the needs of customers. It can be influenced by the various factors such
as cultural and social environmental and its norms, inhibitions and aspirations etc. (Buying
behaviour, 2018). Person will buy that product which is available at reasonable price and have
better quality. There are many factors which can influence the buying behaviour such as:
Cultural factor:
It can influence the buying behaviour of consumers and it involves culture of different
regions, groups or even countries. It is important for Tesla to analyse this factor effectively so
that it can do marketing of the company on the basis of segmentation strategies. Without
analysing culture factor segmentation cannot not be done properly because organisation may not
know which market they have to target (Ruddy, 2013).
Social factors:
It can also influence the buying behaviour of customers and it is divided into three parts
which are as follows:
Reference group:
This group have ability to affect the buying behaviour of customers. The influence of this
group can vary across brands and products. For example, if a person wants to buy the clothes
than another person can suggest him that it should purchase the products from Zara brand. For
example, if a person want to buy a car than another person can suggest him that it should
purchase 6 airbag car. This group include opinion leader who can affect others by its skills,

ability or knowledge. So it is important for Tesla to analyse this factor and prepare marketing
and segmentation strategies according to it. It helps the company to maximise its sales.
Family:
It have strongly affected the buying behaviour of the consumers. For example, if a girl
want to purchase a car then his brother give suggestion that it should buy particular model of
the car from Tesla only so that girl can be influence the decision of his buddy. So it is difficult
for the Tesla to prepare marketing and segmentation strategies because it is not easy to the
analyse the purchasing behaviour of consumers (Flint and Golicic, 2016).
Role and status:
It can also affect the buying decision of customers for example, If a person is finance
manager at a reputed company and it want to purchase a car. In that situation it will buy that car
which suits his status and roles and it will not interested to purchase a normal brand and it prefer
BMW or Mercedes. A person can take the buying decision as per its role and status. Tesla can
develops different models of car as per the various status of people. If a consumer have low
income than it can purchase car which have minimum price. So it is important for Tesla to
make marketing and segmentation strategies as per this buying behaviour of customers.
Personal factor:
It can also affect the buying behaviour of consumers. It has divided in several parts which
are as follows:
Age: Life cycle and age can affect the buying behaviour of persons. Life cycle involves
single, married, young etc. Age includes child, youngster, old etc. So it is important for the Tesla
to analyse this factors and make segmentation strategies according to it so that company can
capture the more market share (Constantinides and Stagno, 2012).
Occupation: Occupation of a person can also influence the purchasing behaviour. For
example, Tesla can make car which have different types of features like. 2 air bag car, 4 airbag
car and 6 airbag car. If a person is high class businessman than it will 6 airbag car and if a
person is doing job than it will but 2 airbag cat because so of less facilities and price. . So it is
important for Tesla to make marketing and segmentation strategies as per the needs and
occupation of consumers and try to satisfy the wants of people.
Economic situation: Economic condition of people can influence the buying behaviour. For
example, If a person has more savings than it will prefer more expensive and quality product. If a

consumer has low savings and income than it will purchase those products which are available at
economical or cheap rate.
Psychophysical factors: There are various type of psychological factors which can affect the
buying behaviour of customers which are such as follows:
Perception: Perception of persons about anything can also influence the purchasing
behaviour of consumers. For example, if buyers have of company have perception that it
produce better quality of oil than than they will not prefer other organisation for buying oil. This
type of perception of people reflects that Tesla has good marketing strategy so that persons like
their products.
Beliefs and attitudes: All people have different attitude and beliefs towards the different
type of products. It shapes the brand image and influence the purchasing behaviour so traders
show their interest in them. Marketing manager of Tesla should change the attitude and beliefs of
consumers with special Towards Tesla, beliefs of people can increase when it provides quality
products to the consumers. So it can make marketing and segmentation strategies as per the
needs of person and try to satisfy them (Baines and Page, 2013).
So these are the various factors which can influence the buying behaviour. By analysing
these factors organisation can frame segmentation and marketing strategies which can help the
company to grab more market share.
CONCLUSION
As from the above report, it has been concluded that marketing fundamental can be used
by organisation to capture more market share and it provide help in effective marketing plan.
Tesla can make better segmentation strategies by analysing the buying behaviour of customers
and it help the company to target right market so that it can maximize its sales and satisfy the
needs of consumers.

REFERENCES
Books and Journals
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Constantinides, E. and Stagno, M. C. Z., 2012. Higher education marketing: A study on the
impact of social media on study selection and university choice. International Journal
of Technology and Educational Marketing (IJTEM). 2(1). pp.41-58.
Flint, D. J., Signori, P. and Golicic, S.L., 2016. Brand Management Fundamentals. In
Contemporary Wine Marketing and Supply Chain Management (pp. 97-115). Palgrave
Macmillan, New York.
Ruddy, M. J., 2013, January. Product Safety: Risk Management Fundamentals For the Safety
Professional. In ASSE Professional Development Conference and Exposition. American
Society of Safety Engineers.
Online
Buying behaviour. 2018.[Online]. Available Through:<https://study.com/academy/lesson/what-
is-consumer-buying-behavior-definition-types-quiz.html>