Consumer Behavior and Marketing Psychology: Daikin's Marketing Mix

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This report provides a detailed analysis of Daikin's marketing mix, focusing on its portable air conditioning systems. It examines the current market communication mix, including advertising, group influence, and cultural considerations, in relation to consumer behavior and marketing psychology principles. The report assesses the effectiveness of Daikin's strategies, such as targeting consumer attitudes and influencing buying decisions. It then analyzes the alignment of Daikin's communication mix with established marketing components, identifying strengths and weaknesses in areas like personal selling, sales promotion, public relations, direct marketing, and packaging. Finally, the report offers strategic recommendations to enhance Daikin's marketing efforts, particularly in personal selling, public relations, and direct marketing, to improve overall market performance and consumer engagement.
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Running head: CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Consumer Behavior and Marketing Psychology
Name of the Student
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1CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Abstract:
The main aim of the paper is analysing the current marketing mix used by Daikin. In this report,
a concise overview of the portable air conditioning offered by Daikin and market performance of
this portable has been demonstrated. For the analysis purpose of the current marketing mix of
Daikin, a critical examination of this communication mix has been demonstrated in this paper.
Also, critical analysis has been done regarding whether the current communication mix
demonstrates a strong alignment with the previous finds or not. Also, a strategic recommendation
has been provided aligning the marketing mix that was identified misaligned in the previous
findings.
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2CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Table of Contents
Overview of the Product:.................................................................................................................3
Current Market Communication Mix of the Organization:.............................................................3
Analysis of the Communication Mix:..............................................................................................6
Strategic Recommendations:...........................................................................................................8
References:....................................................................................................................................10
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3CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Overview of the Product:
In the current context, the main focus has been provided on the portable air conditioner
systems. In recent times this portable air conditioner has become very much popular in the
market. The portable air conditioner is actually a self-contained portable system, and this type of
system is quite appropriate for a single room cooling purpose (Ravindra et al. 2016). These
portable air conditioners are generally having wheels so that it can be moved in different rooms.
In this way, the portable air is actually a useful alternative to the window units.
Considering the current market performance of the portable air conditioner, it is actually
performing very well. It is also expected that there will be a gradual growth for the market of the
portable air conditioner (Subiantoro, Iman and Ooi 2018). The portable air conditioner is gaining
so much of market attraction as it has several advantages. A portable air conditioner is actually a
single unit for air conditioning, and it consists of wheels for moving purposes. Due to this fact it
can be adjusted in less space easily. This is the main reason that the portable air conditioner is
gaining so much of market attraction. Also, there some other reasons which are enhancing the
market performance of the portable air conditioner. These include low power consumption, less
noisy and user convenience (Balan and Yashvanth 2020). These all factors are contributing
towards the market performance of portable air conditioner.
Current Market Communication Mix of the Organization:
In the current context, the selected organization for the analysis is the Daikin Industries
Ltd. The Daikin is currently one of the prominent brands in the portable air conditioning market.
Daikin has achieved this position in the market by creating a strong influence over potential
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4CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
customers (Sharma 2019). In this aspect, the current marketing communication mix of Daikin
has played an important role.
In the marketing communication mix targeting the attitude of the consumer is very much
important (Bacik et al. 2018). In this aspect, the main aim of Daikin is changing the attitude of
the customers towards their products. Here, they try to create a positive attitude of the customers
regarding their products. In this aspect, clear communication with the customers is important,
and Daikin is actually working on these. In this context, Daikin is successfully demonstrating the
products offered by them through the advertisement both online and offline. Also, they are
highlighting the main strengths of their products and creating campaigns for developing a better
brand image (Sitorus 2017). In this way, Daikin is currently targeting the attitude of the
customers, which is quite effective in nature.
The group influence is another factor that can be useful for boosting the overall sales of
the organization (Gao et al. 2016). In this aspect, Daikin is using the group influence by
providing customers with peer status. Generally, Daikin offers high quality and premium
products, and due to this, it is often considered by premium customers. Thus, providing high-
quality products and services, it is always attracting a specific group of peoples (Manova and Yu
2017). In this way, Daikin is becoming admire for many of the customers, which is helping them
to boost the overall sales.
Culture of the targeted customers is also an important factor contributes to the sales of the
products (De Mooij 2019). In the aspect of marketing, culture is important as it establishes the
foundation regarding how the potential consumers think, processes information and
communicate. This is important for creating the promotional content of the products. If anyhow
the content hurt the culture of the targeted consumers, then they will never buy the products. For
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5CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
this reason, Daikin briefly analyses the culture of the market and creates promotional content
according to that. This is a great strategy for creating promotional content.
The social class of the consumers is also crucial in this context. There are mainly three
social class in society which are lower class, upper class and middle class (Bertaux and
Thompson 2017). The lower class always prefer lower-priced products where the upper-class
consumers always prefer the best product irrespective of the price. The middle-class people
always prefer durable and low priced product considering the quality of the product. Considering
this, Daikin prepares products for all of these social class so that the percentage of their overall
sales can be improved. This is a good strategy for capturing a large share of the market.
How consumers learn about a specific type of products is also crucial in the marketing
communication mix. Here, the main target of the organization is reading the mind of the
customers which will be providing more effective communication and will be helping in more
targeted innovation and road maps (Hutchinson and Eisenstein 2018). Here, Daikin is very much
focused on the cognitive learning process of humans. The factors that are associated with the
cognitive learning process are the familiarity of the information, the relevancy of the information
and the interest of the information. In this aspect, Diakin always tries to make the consumers
familiar with their products by providing relevant information, and they always try to create
interest among the consumers. This is actually a quite effective technique that is employed by
Daikin.
Influencing the buying decision of the consumers is also crucial to gain an extra amount
of sales. In this stage, the consumer is ready to buy, and it is the responsibility of the
organization to prepare a clear path for the consumer so that they can purchase the product (Tan,
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6CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Ojo and Thurasamy2019). In this aspect, Daikin provides free installation of the portable air
conditioner, which influences the buying decision-making process of the consumers.
Analysis of the Communication Mix:
From the previous assessments, some important aspects of the communication mix have
been founded. From this, it has been founded that there is a total of six elements that are
associated with the communication mix. These six elements are advertising, personal selling,
sales promotion, public relation, direct marketing and packaging.
The communication mix that has been applied by Daikin is having some appropriate
methods for advertising. In this aspect, the advertising technique implemented by the Daikin is
quite effective for attracting new customers. For the advertisement purpose, Daikin has
successfully demonstrated its products to the customers in both the online and offline format. In
this way, they were able to cover most of the consumers (Singal et al. 2019). The demonstration
procedure was quick and efficient, which made the communication mix of Daikin aligned with
findings from previous assessments. Also, the promotional content made by Daikin was
considering the culture of the customers, which has also contributed to the overall alignment of
the communication mix.
Another important aspect of the previous assessment was personal selling. Personal
selling is considered as the most expensive process of marketing communication. In this aspect,
businesses need to personally sell the products and need to develop a relationship with the
customers (Cummins, Peltier and Dixon 2016). For this reason, it is actually one of the most
rewarding aspects of all of the marketing procedure. Considering the current communication mix
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7CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
of Daikin, their business unit is lacking this portion. Thus, in this section, the communication
mix of Daikin is aligned.
The sales promotion is another important aspect of the communication mix, identified
from the previous assessment. The sales promotion is referred to as a purchase incentive that is
provided to the customers at the time of purchase (Van Heerde and Neslin 2017). In the current
context, the main sales promotion offered by Daikin is a free installation of the portable air
conditioning system. In this way, the current communication mix of Daikin is aligned with the
finding of the previous assessments.
Public relation is another important factor of the marketing mix that has been assessed
from the previous assessments. Here, it has been assessed that the public relation is actually
referred to how the relationship is handled with the peoples that are affected by the business,
including the customers also (Madsen and Verhoeven 2019). In this case, the flow of the
information is also considered. The public relation becomes more important as the size of the
organization increases. For a good pubic relation maintaining a proper image of the brand is
important. In the current context, Daikin is maintaining a proper image of them by creating high
quality and market-leading products. It is the main way, through which Daikin is maintaining
their public relations. Here, it can also be improved further by bringing some specific type of
improvements.
Another important component of the marketing mix identified from the previous
assessment is direct marketing. Direct marketing is the process where the organization directly
reaches to the consumers without any type of intermediate channels for the advertising purposes
(Godwin 2018). Direct marketing includes telemarketing, direct mail, online marketing etc. In
the current context, the marketing mix of Daikin is not having any type of these procedures. For
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8CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
this reason, it is not aligned with the findings from the previous assessments. So, improvements
are required in this section.
The last component of the marketing mix is the packaging (Farber 2018). The current
packaging that is provided by Daikin is quite professional, and no further improvements are
required in this section. So, in this section, it can be concluded that the packaging element
assessed in the previous assessment is aligned with the current marketing mix of Daikin.
Strategic Recommendations:
In the current context, it has been assessed that there are several areas where current
communication mix of Daikin is misaligned with the marketing mix assessed from the previous
assessments.
First, it has been assessed that the communication mix of Diakin is not aligned with
personal selling. Thus, it is important to align this with the current marketing mix of Daikin. For
integrating the personal selling with the current communication mix, Daikin can hire local
peoples as their employees who will be demonstrating their current product to the potential
consumers and ultimately it will be boosting the overall sales.
In this aspect, it has been assessed that Daikin is maintaining a good line of public
relation, but it can be improved further. In this case, Daikin is actually maintaining a good public
relation by providing premium products, including the portable air conditioners. For this reason,
it is aligned with the findings from the previous assessments. In this aspect, this marketing mix
of Daikin can be strengthened more by bringing improvements in the flow of the information. In
this aspect, the flow of information is already at the optimal condition with the customers, but it
is not optimal with the others. Thus, improvements must be there in the information flow with
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9CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
the shareholders, partners, employees and the governments. In this way, public relation can be
improved further, which will be helping to strengthen the current marketing mix.
Lastly, the direct marketing section of Daikin is not optimized. For this reason,
recommendation is also provided in this section for improving the current process of direct
marketing. There are several processes that can be utilized for bringing improvements in direct
marketing. In this aspect, it is important to directly reach to the consumers to improve the direct
marketing procedure. Here, customers can reach out directly when Daikin launches any type of
new products. Also, for any type of new service, offers and product improvement, direct contact
should be made with the customer so that awareness can be created among the customers. There
are several ways that are recommended here which can be used for direct marketing purpose.
These include sending direct mail to the customers, telemarketing through which updates can be
provided through calls and online marketing. Online marketing can be used for any type of new
product or services.
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10CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
References:
Bacik, R., Fedorko, R., Nastisin, L. and Gavurova, B., 2018. Factors of communication mix on
social media and their role in forming customer experience and brand image. Management &
Marketing, 13(3), pp.1108-1118.
Balan, K.N. and Yashvanth, U., 2020. Energy audit in residential building–replacement of
portable air conditioner by an energy efficient centralised air conditioner. International Journal
of Ambient Energy, 41(2), pp.179-182.
Bertaux, D. and Thompson, P., 2017. Pathways to social class: A qualitative approach to social
mobility. Routledge.
Cummins, S., Peltier, J.W. and Dixon, A., 2016. Omni-channel research framework in the
context of personal selling and sales management. Journal of Research in Interactive Marketing.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Farber, J.M. ed., 2018. Principles of modified-atmosphere and sous vide product packaging.
Routledge.
Gao, L., Wu, J., Qiao, Z., Zhou, C., Yang, H. and Hu, Y., 2016, October. Collaborative social
group influence for event recommendation. In Proceedings of the 25th ACM international on
conference on information and knowledge management (pp. 1941-1944).
Godwin, R.K., 2018. Money, technology, and political interests: The direct marketing of politics.
In The politics of interests (pp. 308-325). Routledge.
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11CONSUMER BEHAVIOR AND MARKETING PSYCHOLOGY
Hutchinson, J.W. and Eisenstein, E.M., 2018. Consumer learning and expertise. In Handbook of
consumer psychology (pp. 117-145). Routledge.
Madsen, V.T. and Verhoeven, J.W., 2019. The Big Idea of Employees as Strategic
Communicators in Public Relation. Big Ideas in Public Relations Research and Practice
(Advances in Public Relations and Communication Management, 4, pp.143-162.
Manova, K. and Yu, Z., 2017. Multi-product firms and product quality. Journal of International
Economics, 109, pp.116-137.
Ravindra, G.A., Rajendra, D.N., Prakash, M.S., Devidas, J.R. and Balwant, T.R., 2016. Review
Study of Portable Air Conditioner. International Journal of Engineering and Management
Research (IJEMR), 6(2), pp.40-43.
Sharma, V., 2019. Daikin India: Paradise Lost. Vikalpa, 44(3), pp.124-126.
Singal, R., Besbes, O., Desir, A., Goyal, V. and Iyengar, G., 2019, May. Shapley Meets
Uniform: An Axiomatic Framework for Attribution in Online Advertising. In The World Wide
Web Conference (pp. 1713-1723).
Sitorus, S.A., 2017. Marketing communication mix and innovation on customer retention and
sustainable competitive advantages in culinary tourism business environment in the City of
Medan. Journal of Environmental Management and Tourism (JEMT), 8(24), pp.1579-1590.
Subiantoro, A., Iman, A.N. and Ooi, K.T., 2018. Improving the efficiency of portable air
conditioners in open-air shops and cafes in the tropics by separation of dehumidification and
cooling processes. In 4th International Conference on Building Energy, Environment (Vol. 278,
pp. 840-44).
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