MKT503: Marketing and Consumer Behavior Strategies and Analysis

This report provides a comprehensive analysis of marketing and consumer behavior, focusing on B2B and B2C strategies. It delves into product positioning, niche markets, and the marketing mix, offering practical applications and recommendations for businesses. The report explores factors influencing consumer behavior, including internal and external influences, and examines the psychology behind customer decision-making. The study highlights the importance of understanding consumer psychology before launching new products or services, and it presents a detailed case study of Ace Yewt-ACE-EV, an electronic commercial vehicle manufacturer. The report also covers segmentation, targeting, and the practical application of marketing strategies, providing valuable insights for businesses aiming to achieve their marketing objectives. It also includes the practical application of steps in B2B business, recommendations to B2B and B2C markets, and marketing mix solutions for both sectors. The report's conclusion emphasizes the significance of customer behavior analysis for business success.

Marketing and Consumer Behavior 1
MARKETING and CONSUMER BEHAVIOUR

Marketing and Consumer Behavior 2
Table of Contents
Introduction.................................................................................................................................................3
Company background..................................................................................................................................3
B2b product positioning niche market....................................................................................................4
Practical application of steps in B2B business.........................................................................................5
Recommendations to B2B business.........................................................................................................5
Factors affect the consumer behaviour both in B2B...............................................................................6
External factors....................................................................................................................................6
Internal factors....................................................................................................................................7
B2C product positioning niche market....................................................................................................7
Factors that affect the perception of the b2c customers........................................................................8
Internal factors....................................................................................................................................8
External factors that influence the customer purchase decisions.......................................................9
Recommendations to b2c market...........................................................................................................9
Marketing mix to identify the solutions for both b2b and b2c....................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Marketing and Consumer Behavior 3
Introduction
The aim of the study is to develop an understanding on the nature and behaviour of the
customer while taking decision. It is very relevant for companies to understand the psychology
of the customer before launching any new product or service sin the market. It can be done by
learning the theories related to the decision making of customer, psychology of the same and the
marketing mix of the business organization itself to gain the marketing objectives. There are
various types of factors that affect the buying decision and behaviour of customer like internal,
external, pricing, etc. the company has to learn the market and then applies theory of product and
service positioning to achieve maximum sales (Van Doorn, et.al. 2010).
A business can achieve success by obtaining sufficient study on the customer behavior. It
can be related to many things like buying, paying, use and also the reuse of the same product. To
study the same, the study will explain the theories related to the customer psychology. It is
collective and individual in nature it can be affected by the environment, perception and
demography. By performing effective research on the same, the company Ace Yewt-ACE-EV
can easily predict the prodct preference and buying frequency of the customers.
The study of customer behaviour comes under the psychological functioning that is
related to the decision making, the motivation of the customers for a particular product, the
perception and attention of any product on the customer’s mind, knowledge and learning of the
same, social influences on the customers, group discussions done by the customers, emotions and
personality related to the products, an attitude of customer towards any product, etc. (Kwak, and
Kim, 2013).
Company background
Ace Yewt-ACE-EV group is famous as they manufacture electronic commercial vehicles
all over the world. The company is an Australian company that deals not only in Australia but
also all over the world. The company is hoping to expand their customer base up to 15000 by
2025. The car is successful as it lower downs the cost by 85%. The emission of carbon by the
cars of Ace Yewt in the environment is less by more than 70% which means very low impact on
the environment (Verhoef, Reinartz, and Krafft, 2010).

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B2b product positioning niche market
Product positioning for b2b market refers to hold a particular and specific position in the
mind and perception of the decision makers. It is not related to the product but to the mind of the
decision makers. To create the same in the mind of the decision makers, there are three things
that must be required by the company Ace Yewt (Kim, and Ko, 2012). They are
 Uniqueness of the products
 Importance to the customers
 Credibility
It refers to the objects and the evidence that a company can fulfil. It is also related to the
consistency of the company to deliver the same. It can be done by getting the clear views of the
customers of the mental impression they have after buying or using the product. The aim is to
find the target customer and then identify what they actually need. The company have to
determine what the customer wants and what the company is selling (Yi, and Gong, 2013).
There are various researched that will help us to let know the positioning strategy for
company Ace Yewt:
Step 1
There are various types of customer who are already well known with the company and
its product and services. They are also familiar with the competitors. The first work is to figure
out the current state of mind of the customers. Then the company have to try to bring unique
products.
B2B target niche market by making map. The map will help the company to determine
each and every attribute that can affect the brand positioning of the product. It will also help to
judge the customers perception for the products. The aim of doing this is to differentiate the
uniqueness Ace Yewt has as comparison to their customers
Step 2
After understanding and differtiate the uniqeness of the company, the next thing is to
analyse the cats that how this uniqueness is relevant to the target customers. It can be done by
asking the questions to the customers directly. It will help us to determine the perception of
customers for a particular thing in the product or brand (Neirotti, Raguseo, and Paolucci, 2016).
Step 3

Marketing and Consumer Behavior 5
At last, the company can make a single matrix in which they can figure out both the
above mentioned analysis. This matrix will help the company to get insights of the perception of
the customers that ace Yewt can use to devise their positioning strategy (Paridon, and Carraher,
2009).
Practical application of steps in B2B business
In the above part, we read about the plans, now we will learn about the practical
application of the same:
Positioning
As read above, the process will help the business organisation to get a clear view of the
perception of their customers and also the position that is hold by the company. It will further
help in the planning for the product related to the target market.
Repositioning
Under this the company Ace Yewt can have the advantage to uncover the innovative,
strong and new positions to consider. The overall aim is to allow the company to have maximum
ability to maintain competition present in the market (Sweeting, 2010).
Competitive intelligence
The above research will also help the company to gain knowledge about some specific
competition present in the market that may affect the working of the company in future. The
company can make plans and strategies to manage the competition.
New products
The above research will also help the company to the planning of the new product as it
will help in identifying the gap in which it’s very hard for the product to exist. The company will
go through the problems and issues and find out effective solutions to fill the gaps (Jasmand,
Blazevic, and De Ruyter, 2012).
Recommendations to B2B business
 There are so many things that the company should keep in mind while the positioning of
the products like
 The company still requires accounting the creditability of the positioning. It will help in
the positioning when the company wants to launch some new product in the market or
want to bring any innovation in the previous one. The company can ask directly to their

Marketing and Consumer Behavior 6
customers related to the believability of the claim and also ask the problems involve in
the same. through this the company has chance to validate the difference company has
as comparison form their customers and also the relevance of their message to the
customers
 The problems and issues with b2b business and suppliers is that they have groups and
team of individual who buy the products. In such case the company have to develop an
optimal approach in which they can develop position strategy for each and every
stakeholder. In this way, the company has an advantage to choose among the
stakeholders who can believe the uniqueness of the company from the other competitors.
 Market research can also help in determining the best target audience who have positive
views for the company
 The last but not the least in the implementation of the positioning strategies all over the
company. After the proper implementation, the company have to track the changes taking
place.
 They have to make and recreate the map periodically to manage the competition (Kumar,
2010).
Factors affect the consumer behaviour both in B2B
External factors
Status quo bias- There is a need to tell the customers that there is more risk and threat in status
quo bias. The company have to let know the customers that the current opportunities are more
effective than the unpredictable future one.
Economic condition- The rate of interest and the money market plays a vital role in making
decision. The fluctuation in both of these markets affects the decision making of the customers
Optical environment- The changes in the policy of the government affect the economy of the
country which directly or indirectly affects the buying decision of the business organisations.
Competition- The motive of each and every company is to gain profits more than the
competitors in the market. The competition s the major elements hat affects the buying decision
of the business organisation.
Social environment- There is an evolvement in the culture and societies which affect the
decision making of the companies as they have to keep themselves updated to stay in the market
(Palmatier, RJarvis, Bechkoff, and Kardes, 2009).

Marketing and Consumer Behavior 7
Internal factors
Objectives of business- The major internal element is the goals and objectives of the business
that affect the psychology of the business related to the purchase.
Technological factors- The decision makers of the company always consider technology as
major elements. They have to examine the current technology in order to keep themselves
update. It is one of the major factors in decision making of business organisations.
B2C product positioning niche market
B2C market refers to business to customer market in which the company deals with
directly the customers. The company have to identify the target segment before making any plan
for the positioning of the products. Although for this company the range of customers are
women, students and the middle class people. There are many factors that affect the buying
decision of the customers like the safety involves in the cars manufactured by the company.
Many of the customers claimed that the car is not as safe as the others but the other says
that car is very safe and easy to drive. The customer also looks for the value for the money the
pay for a particular product. Almost every customer feels that if they are paying for a product,
they will get the full value for the same. These factors affect the sale of the products and also the
reputation of the company. In this way, the positioning should help in all the issues and
problems. There are various researched that will help us to let know the positioning strategy for
company (Kotler, Bowen, Makens, and Baloglu, 2017). The steps of product positioning for b2c
customers. This is used to strengthen the business outcomes in market by developing core
competency in the existing market.
 there is a need to conduct a segmentation of the market
 the second need it so determine the target market of the company
 the third step is related to the identification of the attributes of the products
 after that the requirement is to collect the data from the target market that is the
customers and also the potential customers on the attributes of the identified products
 The need is to identify the likeness of the product in the heart and mind of the customers
among the total mindshare of the customers. This company has the advantage as they
moved in first in the electronic cars in Australia.
 Afterwards, the placement of the product at the right place is required that is related to
the luxury market segment, high value, economy market, low volume, etc.

Marketing and Consumer Behavior 8
 make a graph for the position of the product in which the correct position can be
determined
 At last but not the least, determine and identify what the company actually requires to
reach to the right position in the minds of the customers (Kumar, Bezawada, Rishika,
Janakiraman, and Kannan, 2016).
Factors that affect the perception of the b2c customers
Internal factors
Image in the market- This is the first thing that affects the behaviour of the customers. The
customer usually buys the product that has good image in the market.
Personal needs and motive of the customers- It is one of the most influential internal factors
that affect the perception of the customers. The need and want of the customers is related to the
lack of the same thing or may be the desire to buy any product. This need can motivate his or her
to make a decision for a product whether to buy it or not. This will help company to customize
its offered services and products in market to strengthen the overall outcomes and business
efficiency in long run.
The company has to focus on such needs and wants ad then do the positioning of the same in the
mind of the customers. Such strategies will help the company to grow and develop.
Personal attitudes- It is the next substantial factors that affect the perception of the customer.
Attitude refers to the thinking and feeling of customer towards any product. The attitude is the
reflection of the thoughts and feelings of the same. Attitude is something which is very hard to
be changed. It can be done by high manipulation as it is long lasting in nature.
So it is necessary for the company Ace Yewt to analyse the attitude of the company and change
it in the positive manner by serving them good products (Brumfield, and West, 2009).
External factors that influence the customer purchase decisions
The purchasing decision of the customers is not only affected by the internal factors but
also the external factors. These factors are the exterior factors that indirectly affect the perception
of the customers. External factors like culture, household structure subculture, groups, etc.
External factors are also comprises of socio cultural factors like family, friends, and the other
person affect the decision making of the consumers.

Marketing and Consumer Behavior 9
Culture- The shape of the decision making depends on the culture as it is related to the emotions
and the feelings of the customers. A particular culture can create the perception and change the
perception. The individuals are very much influenced by the culture. Other actors are family,
friends, etc. (Burke, 2011).
Recommendations to b2c market
With the above information we get to know that all the factors whether internal or external affect
the perception of the customers.
 To attain the success in the company, it is relevant for Ace Yewt to develop perfect
positioning of the product in the market by identifying the internal and external factors.
 It should focus on creating its core competency in market by focusing on the cost
leadership and product differentiation strategy.
 Market research can also help in determining the best target audience who have positive
views for the company
 Company should focus on strengthen its business process to increase its overall
outcomes.
 The strategic alliance should also be used by company to strengthen its overall outcomes.
 It also needs to focus on understanding the buying behaviour. A business could easily
achieve success by obtaining sufficient study on the customer behaviour.
Marketing mix to identify the solutions for both b2b and b2c
Product
We can observe that the customers are not too loyal for a product. They want full value for each
product so they analyse the options available and then make the choice. The company has to take
care of this and make decision according to the customer attitude.
Place
Now day the customers are highly inclined to purchase cars so they want the shops near to them.
The company has t take care of the location for the shops. The company can start new shops in
the various parts of the world to make the cars available easily and also to achieve good
impression on the attitude of the customers. They should cover the urban prime locations and
popular cities where there is youth (Sajeesh, and Raju, J2010)
Price

Marketing and Consumer Behavior 10
Price plays a vital role in the perception of the customer. They frame the perception by first
analysing the price of the products. The students and women may not have that high income so
there is need to keep the prices reasonable.
Promotion
The last aspect of marketing mix is promotion which is very important these days as the digital
world creates high impact on the customers. By creating promotion and awareness, the company
can achieve the targets (Wirola, Laine, and Syrjärinne, 2010).
Conclusion
In this study we have leant many things elated to the customers and their perception.
There are various types of factors that affect the decision making, perception, and purchasing
behaviour of the customers in the both markets that is b2b business or b2c business. We have
observed that there are few internal and external factors that have a huge impact on the buying
decisions of the customers and decision makers (Lacourbe, Loch, and Kavadias, 2009). The
undertaken process will help the business organisation to get a clear view of the perception of
their customers and also the position that is hold by the company. It will further help in the
planning for the product related to the target market
The analysis begins with the positiioning of the products among the b2b customers and
b2c customers of the company ace Yewt which is an electronic vehicles manufacturing company.
There are variety of data and facts we have discussed related to the positiioning of the company.
To sustain in the completion, the business organisations do anything as they collect the data and
information about their competitors. Afterwards they apply effective and efficient approaches
and theories to increase the value of the products of the company in the eyes of the customers
(Hassan.,and Craft, 2012).
References
Brumfield, H., and West, R. A. (2009). U.S. Patent No. 7,509,276. Washington, DC: U.S. Patent
and Trademark Office.

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