Brand Analysis Report: MKTG815 Consumer Behaviour at Macquarie Uni

This report provides a comprehensive analysis of consumer behavior, focusing on the application of various theories to the brand Marks & Spencer. It begins with an introduction to consumer behavior, its importance, and the role it plays in marketing strategies. The report then explores the profile of ...Read More

BRAND ANALYSIS REPORT
MKTG815
CONSUMER BEHAVIOUR
Macquarie University
Faculty of Business and Economics
Student Number:
Student Name:
Submission Date:

CONTENTS
Introduction................................................................................................................................1
Brand overview..........................................................................................................................1
Profile of the company...........................................................................................................1
Competition, environmental factors & consumer behaviour.................................................1
Analysis of the consumer behaviour theories............................................................................2
Consumer behaviour and its importance................................................................................2
Consumer behaviour theories and models..............................................................................3
Linking consumer behaviour theories to the brand “marks & spencer”....................................6
Consumer behaviour theories and its application...................................................................6
Future trends impacting marks & spencer.................................................................................9
How consumer behaviour impacts marketing strategy of M&S............................................9
Trends impacting Marks and Spencer..................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
Articulating about consumer behaviour, it is the element of the economic behaviour
which in turn displays the behaviour of humans. Because of the importance of social as well
as economic development in contemporary societies, a strong developmental process took
place in the study of consumer behaviour. Consequently, many companies and big brands are
considering consumer behaviour as their key marketing strategy (Yang, 2010). Concerning
this, the main aim of the present research report is to demonstrate the understanding of
consumer behaviour, its theories and concepts and its applicability in brand marketing. For
this purpose, Marks and Spencer will be taken into consideration which is one of the leading
multinational retailers in clothing. It has its operation in more than 30 nations all across the
globe. The present report study will throw light on the background of the brand, its product,
marketing and some vital environmental as well as competitive forces that interact with the
consumer behaviour of the product. It will also discuss various theories related to consumer
behaviours and will link the same with Marks and Spencer marketing. The final part of the
report will evaluate some future trends that might impact the firm.
Brand overview
Profile of the company
Focusing in relation to Marks and Spencer, it is one of the leading UK’s multinational
retailers engaged in selling clothing, home-ware and foods in many parts of the world. The
firm has expanded its operation and now they are serving around 40 nations all across the
world. They have given employment opportunities to more than 80000 people (Tse, 2015).
Further, the main aim of the firm is to drive growth in the market of UK and more expansion
in the international markets. At present, the clothing industry is very competitive and thus, it
is getting difficult for the fashion retailers like M&S to sustain and quality and productivity in
the clothing industry.
Competition, environmental factors & consumer behaviour
The company faced many downturns due to the economic recession and various
external factors, however, since 1990, the main reason behind the slump in the business of the
firm was the external factors in the market environment and the inability of the company to
get familiarize with these factors. There were many retailers in the market such as Next
which changed into string price and quality competitors to Marks and Spencer. Other than
this, there were many new retailers such as Zara and H&M who stepped into the clothing
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market and occupied a great proportion of the market (Sokolowski, 2013). Along with this,
many discount players like Primark and Matalan have also expanded their reach and offering
tough competition to M&S.
In addition to this, there were many old departmental stores that re-invested into their
business and developed as a brand led boutique collections such as Debenhams. Moreover,
because of the increased production capacity in the Asian markets there has been increased in
the influx of high-quality goods at cheaper process into western retailers. At the initial level,
Marks and Spencer were unwilling to alter their policy, however for the purpose of sustaining
and competing successfully in the market, it soon became a public relation disaster.
Furthermore, because of the modifications in the technology, the competitive advantage of
M&S was completely averted in the supply chain front (Alshurideh, Shaltoni and Hijawi,
2014). Thus, because of the unwillingness of the firm to counter back to these external
alterations and the top management being driven for profit, company faced huge losses and as
a substitute of long term growth, they ended up with a lost share in the market and damaged
image of the brand.
Analysis of the consumer behaviour theories
Consumer behaviour and its importance
It is being referred to as a new field of study which has been evolved after the Second
World War. Because of this concept, the market of the sellers was completed vanished and
there was a birth of the buyer’s market. There has been a paradigm shift in the attention of the
producers from product to the customers, particularly on the behaviour of the consumers.
Furthermore, because of the evolution of the marketing concept from sheer selling towards
consumer-oriented marketing has paved the way for the independent discipline of consumer
buying behaviour (Hasson, 2015). According to Walters, consumer behaviour is nothing but a
systematic process whereby they take decisions regarding timing, quantity, type and place of
products and services to be purchased. It is quite vital for the companies to study and
comprehend consumer behaviour in order to develop an effective marketing strategy. The
success or failure of the firm is being determined by the reaction of the consumers towards
this strategy. Today’s market place is very competitive and thus, to succeed firms are
required to provide more customer value in comparison with their rivals. For this, an
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organization is required to put in more efforts towards anticipating and responding to the
demands of the people (Kapoor, 2014).
Consumer behaviour theories and models
Researchers’ shows great interest in consumer decision making from a long time ago.
Several decades earlier economists such as John Von Neumann and Nicholas Bernoulli begin
to inspect the basis of consumer decision making. They emphasized mainly on the art of
purchase i.e. economic perspective (Moosmayer and Fuljahn, 2010). From this perspective,
the most famous model is the utility approach which entails that consumers make decisions
on the basis of the expected results of the decision. On the contrary, contemporary research
considers that there are a number of factors which impacts consumer behaviour such as
purchase intention, need recognition, analysis of alternatives, information search etc. The
modern marketing, on the other hand, has adopted a wide range of approaches in the study of
decision making and has drawn many traditions of psychology (Wright, 2010). Some of the
theories and models related to consumer behaviour are as follows:
Classical conditioning or Pavlovian theory
Talking in relation with the Pavlovian theory, it comes from the work of Russian
psychologists known as “Ivan Pavlov”. He carried out an experiment with dog wherein he
ranged a bell every time before he feeds a dog.
Figure 1: Pavlovian Theory
(Miller and Washington, 2014).
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He discovered later that is able to encourage the dog to salivate by ringing the bell
irrespective of whether the food is being provided to the dog or not. Thus, it can be concluded
from this experiment that learning takes place because of the process of association and major
element of the human behaviour is being conditioned in this manner (East and et.al, 2016).
Psychodynamic theory
This theory within the psychology is being credited to the work of Sigmund Freud,
who was the founder of psychoanalysis. He believed that the behaviour of an individual is
being subject to biological impact by instinctive forces or motivation which act as an outside
conscious thought. In other words, consumers are generally not able to comprehend their own
motivation due to the fact that psychological factors that shape them are normally
unconscious. Furthermore, he has determined three aspects of psyche such as ego, superego
and Id. Thus, the main principle of this approach is that behaviour is being identified through
the biological drives instead of environmental incentives or cognition of individual (Evans,
Jamal and Foxall, 2009).
There were many Neo-Freudian theorists such as Alfred alder, Karan Horney and
Stack Sullivan initiated an approach that paid attention to the quantitative measurement of the
personality traits in their trait theory. They have defined traits as the determinable features
which define an individual. Five dimensions of personality were discussed in the trait theory
such as openness to experience (love to do things in new ways), extroversion (talk to different
people), neuroticism (get upset easily), conscientiousness (always prepared) and
agreeableness (take time out for others).
Marshallian economic model
It is being developed by Alfred Marshall. According to this model, people will spend
their money on those products and services which offers them greatest satisfaction based on
their taste as well as relative prices of the same (Antonelli and Ferraris, 2017). Furthermore,
this theory has provided many valuable hypotheses and these are:
 If the prices of the goods and services are lower than there will be higher sales of
those goods
 Further, if both product and its substitute is available and prices of the original
product are higher than its substitute than the sales of the ancillary product will be
higher
 Lastly, when the consumer income is higher, higher will be the sales of the products
conditioned that the product is not inferior.
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Social psychological model
As per Economist “Thorstein Veblen”, the human is being considered as a social
animal wherein he or she follows the norms of the larger culture and to be more particular
standards of the sub-culture or group in which they operate. In other words, Veblen was of
the view of that individual desires as well as needs of the people are being developed and
impacted by the group membership. In addition to this, he also paid attention towards the
leisure class of the society in his theory that he assumed were impacted by the needs for
prestige rather than accomplishment and utilitarian (Lantos, 2015). While the opponents of
this theory argue that it might be exaggerated in scope but still the theory is very beneficial.
Further, it proposes that marketers should comprehend the social stimuli that influence people
for the purpose of better understanding the demand for the products.
Maslow’s need hierarchy theory
Although this theory is not being classified as the model of human behaviour, it still
offers valuable input to the theory of consumer behaviour. The need hierarchy theory is
related to the motivation of the people on the basis of the hierarchy of needs of human. There
is a lot of significance of motivation in the study of consumer behaviour (Kotler and Keller,
2009). According to the theory, there are five general needs of human that ranges from
biogenic needs to psychogenic needs. Once the first needs are satisfied, people seek to attend
higher level needs. There are five distinct levels such as physiological needs, safety &
security, social needs, self-esteem need and lastly, self-actualization
Linking consumer behaviour theories to the brand “Marks & Spencer”
Consumer behaviour theories and its application
Studying the behaviour of the consumers supports the firm in improving their
marketing strategies. Marks and Spencer can also improve their marketing tactics and efforts
by comprehending various issues like:
 How people feel, think, reason, and choose amid various alternatives, for example,
different brands and their products
 How consumer is being impacted by his or her environment such as family, media,
culture and signs (Wilson, 2014)
 The behaviour of the people at the time of making different marketing decisions and
shopping
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 How limited knowledge and data processing capabilities impacts the decisions and
marketing results
 How motivation impacts the selection of different products
 Findings the ways to make improvement in their marketing campaigns and strategies
for effectively reaching the consumer
Pavlovian model
Speaking in relation to the Pavlovian model, it does not offer a complete theory of
consumer behaviour because of the non-presence of some of the most vital phenomenon such
as perception, inter-personal impacts and sub-conscious impacts. However, this model can
contribute significantly to the marketing of Marks and Spencer by offering insights about the
advertising strategy and consumer behaviour to the marketers of the firm. For illustration,
Marks and Spencer has introduced a new brand St. Michael brand in the market of Europe
which was a highly competitive market (Dholakia, 2009). For this, the firm has attempted a
new habit for its new brand by quenching the existing brand habits of the consumer. It was a
big challenge for the firm to persuade people towards trying new band by making decisions
amid utilizing robust as well as feeble cues. While strong cues, for instance, distributing
sample of the products might be considered as the most expensive alternative, it is often
regarded as the best approach to target market of high brand loyalties. Marks and Spencer has
taken into account the reinforcing element of the model. And quality products were built in
order to develop a positive experience. Other than this, it is quite valuable to identify most
effective cues in leading brands like M&S (Easey, 2011).
As per Kotler, there is one more field in which this model provides comprehension
that is for advertising strategy. Marks and Spencer pays attention to repetition of advertising
as single exposure will not likely to work as a string cue and will not be able to induce
consciousness of an individual. Thus, repetition in advertising will have two desirable effects.
First, people will not forget and second, it will offer reinforcement because people will be
selectively exposed to the advertisement of the goods and services after purchase. For the
purpose of having effective result, advertisement should stimulate a strong drive in a person.
Psychodynamic model
According to the Kotler, one of the most vital marketing consequence that each and
every marketer should consider about the psychodynamic model is that people are being
encouraged both by economic and symbolic functional product concerns. For instance, a
slight change in the design of clothes will make them look more sensual than its functional
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connotation (Isaksen and Roper, 2012). Further, the significance of the model can also be
seen from the research perspective. Though interviewing as well as direct observation can
give more artificial features such as family income, age, gender etc. these approaches cannot
be utilised for founding the mental state which is intensely suppressed within people. The
Freudian theory has determined three aspects of psyche such as ego, superego and Id. Talking
in relation with ego, it is that system that intervenes amid id and the superego. Thus, it plays
the role of judge amid benefit as well as attraction. In order to reach the ego of people, Marks
and Spencer has developed such content that supports the customers in defining the world
positive about themselves. M&S can also make efforts and market the ego of the customers in
a different way.
Maslow’s need hierarchy theory
Regardless of its criticism, Maslow’s need hierarchy theory is believed to be useful in
the marketing strategy of firms. It offers comprehension of motivations of consumers and
products often helps in satisfying each of the needs of the consumers. Marks and Spencer
adopts Maslow’s need hierarchy theory while developing advertising appeals for their
products (Szmigin and Placentini, 2014). The main focus of the managers is to emphasize
their advertising appeal on the need level of their customers and offering input to the
positioning of the product. The basic need of customers is physiological needs and M&S
offers winter coats in winter season for satisfying the basic needs of the people. The second
need is security need and people might take into account the flammability of the coat and
clothes and thus, they offer those products in their stores. The third need is social needs
which are satisfied by purchasing fashionable clothes. Next is the esteem needs i.e.
recognition for others. Prestige and wish to enhance the reputation of the customer is the
main motivating force throughout the fashion gamut. Finally, self-actualization is often being
interpreted as an expression of creativity (Faulds and Mangold, 2014).
Future trends impacting Marks & Spencer
How consumer behaviour impacts the marketing strategy of M&S
Referring about the consumer behaviour in marketing, it is being defined as a process
of studying groups as well as individuals being related with the purchase and utilization of
products and services along with the mental, physical and emotional reactions surrounding
these activities. For achieving success in the current business scenario, each and every firm
including Marks and Spencer is required to recognize the needs, thinking and behaviour of
their consumers (Goldfingle, 2018). It is very vital to know the things that impact the
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purchase decision of people. Consumer behaviour might influence the marketing strategies of
M&S in several ways and these are as follows:
 Sales forecasts – Marks and Spencer is making use of sales forecast for estimating the
volume of sales for a particular period of time in a specified market. The past behaviour
of the customers can be studied for identifying sales in the near future.
 Internet research – Internet is being utilized by M&S for performing research on the
behaviour and activities of the consumers on the web. The outcomes of these researches
is helping the firm to find out the most attractive attributes of the product, the right price,
sales promotions techniques and market conditions (Elder, 2012). It is a really helpful
tool though expensive for marketing research. However, the flexibility of internet
research in terms of shifting demands of consumers as well as an ability to pinpoint
precise target areas makes it valuable.
Trends impacting Marks and Spencer
The recent world is continuously tilting out of control and to find balance in such type
of world, companies are required to make real efforts. Some of the future trend that might
influence the products of Marks and Spencer and the ways they market their offerings are
being defined underneath:
 Responsible consumerism – In the near future, one of the vital trends that will go
mainstream is responsible consumerism. With the growth in the easiness of
purchasing things, people will look out for the brands that will help them in making
better and more responsible choices. M&S is required to align themselves with the
social issues of their customers and concerns of the environment (Seven reasons why
Marks & Spencer is in trouble, 2018). Further, the firm needs to shift from sustainable
to regenerating mind-set.
 Digital and physical shopping converges – The different tracks of online as well as
physical retail will definitely meet in the near future. Digital retailers will offer space
physically and thus, M&S also needs to make changes in their store by combining the
latest technological features with the high tough personal store.
 Getting real – Brands will be required to understand their customers effectively and
deeply and not just to extract money from them. Fashion retailers need to be authentic
and real to sustain in this competitive market place (Vend’s Retail Trends and
Predictions for 2018, 2018).
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Conclusion
Thus, from the above study, it can be concluded that there are many steps being
undertaken by Marks and Spencer for understanding the behaviour of the consumers. Many
theories and models have been applied to understand its impacts. It was originated that firm
has applied consumer behaviour theories effectively in marketing their brand. However,
concerning the future trends of the market, still changes needs to be performed for sustaining
and achieving success in the market.
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