Target consumer—description and insight

Discuss about the Consumer Behavior Influenced By Different Factors.

Consumer behavior is a complex subject which is influenced by different factors such as psychology, sociology, social anthropology, marketing and economics, specifically behavioral economics. A consumer can react to a certain product differently from another consumer if two of them are coming from different background or their behavior can be different in different country. Therefore while introducing a product to market; it is important to understand the behavior of consumer of that particular market. Ion this report the nominated product is Samsung Smart TV (w660f LED HDR) and competitive product is Sony Smart TV (X7000E). The nominated product is a newly developed electronic product from the company Samsung. The product has many features which is good enough to attract customers. The TV has ultra HD certified true color and clarity. The TV has impressive brightness and shadow detail which makes the watching experience lively and memorable for the users. With the help of one remote control all features of the TV can be controlled and hence it is another unique selling point for this product. The content and features of the TV can be controlled using the remote and all application can be simultaneously managed. This TV has an exceptional picture and very adequate built in speakers. The price makes this TV a great value. Therefore this TV is occupying market and it is giving tough competition to other products in the market. The main purpose of this report is to plan a proper marketing strategy using all factors of marketing mix to make suitable marketing plan for the competitive product which is Sony Smart TV (X7000E). The report will consist of understanding of targeted customers who can potentially buy the TV made by Sony over the nominated product. In order to make this happen proper strategy has to be made and understanding of proper marketing and customer behavior theory is important. In the next part of the report, analysis of value proposition and marketing mix of the nominated product has to be carried out. After that the value proposition and marketing mix of the competing product has to be carried out. After that at the end of this report justification will be given regarding the proposed value proposition and marketing mix strategy for competing product will change consumers’ preference.

Sony is world renowned brand which has developed a loyal customer base over the years. So the company has developed a loyal customer base over the years and the main targeted section of the customer of this TV must be this loyal customer base of Sony. Following the theory of consumer behavior traditional approach and modern approach can be applied. According to traditional approach of consumer behavior theory, consumer is generally rational and consumers try to get the maximum return of their money in terms of utility of the product (Andreasen, 2010). According to the modern approach of consumer theory, consumer is not always rational and they can be influenced by these factors namely needs, motives and decision. In this case the targeted group of consumers may belong to any of these two categories. They will decide their shopping preference or product based on their needs motives and gradually decision will be taken by them at the end (Su, 2017).

Explanation and analysis of value proposition and marketing mix strategy of the nominated product

Most common features of the consumers can be of three types, such as a consumer with high income and he has proper idea of the product and services, its price and utility etc. this section of consumers will be targeted customer for this products as they are rational and they will chose the product based on the features and innovating characters (Wang et al. 2015).

Another type of consumers has preference scale and they rank products by their price or the incomes of the consumers are the main deciding factor here. They will also be targeted customer for the competing product as the product is made for the customers who has tight budget but looking for high quality product.

Another type of consumers looks for products which are most favorable. These types of consumers are consistent in nature and they compare all type of products available in market before choosing the appropriate product. If the product is high in quality and if the product can provide enough value against the price of the product, consumers will certainly opt for the product. These are also targeted customers of the competing product as Sony always makes products which have many new features and the products are technologically very high in quality.

According to the theory of indifference demands and needs of the consumers are met by different type of product with effective combination of them. Consumers with same income groups and products with same price – these two factors play important role in the purchase of a product. This theory says that consumers are indifferent as the combination of products will provide them similar benefits (Armstrong et al. 2015)

Another important theory is theory of revealed preference which explains the needs of the consumers can be revealed through their habits. After choosing combination of products, the chosen combination may become reveled preference when it is compared to other products or combination (Quilumba et al. 2015).

Another theory of consumer behavior is game theory, which illustrate the behavior of consumers to take risk while buying a product. The game may depend up on other factors like experience, the character of the player or consumer etc (Jerath et al. 2015).

All these theory provide a clear insight about the targeted audience in this case. The competing product will be targeted to all these section of consumers. Different types of consumers may have different choice and preference and they may look after different features in the product. But their insight will mostly depend up on the above mentioned factors or theories. This is how they can be categorically targeted and the marketing of the product will be prepared keeping in mind the projected consumer behavior.

Marketing mix will certainly help to reach out to the customers in order to make the product desirable to them. Value proposition is important part of marketing of a product as it the powerful statement of value. But there are other factors as well which plays important role in purchasing decision of the buyers. In case of the nominated product, features of the products will primarily influence the customers. The features must be innovative and unique. Then comes the price of the product. Price will certainly determine the demand of the product in market and it will also give competitive edge over the rival companies. Value proposition comprises customer service as well; flexible finance plan and other buying option will help the consumer to but the TV (Datta et al. 2017). The purchase of the TV will depend upon the information of the product, such as how consumers are getting information about the new product, it matters a lot. Different buying options or convenience will affect the sale of the product (Kotler, 2015). Therefore various factors like innovation, service or feature altogether make a product attractive or desirable to the consumers. The TV has a lot of new features and it offers flexible payment option to the buyers (Payne et al. 2017). Also the company is proving different types of pre and post sell services such as free warranty of the product and replacement in case of faulty product etc.

Marketing mix of the TV is comprised of product, pricing strategy of the product, promotion and place or distribution. The designs, new features, technological excellence of the TV are the main factors which will attract customers to buy the product. Naming, branding, differentiation and market reputation of Samsung have also been significant in this regard (Armstrong et al. 2014). The product has been promoted through various media such as traditional mode and online mode as well. The company has been promoting the product through their social media pages and it has given them a lot of advantage. The product is available in the registered showroom of Samsung and also it is available online (McDonald & Wilson, 2016). Many online retailers such as Amazon.com are also officially selling the product. Therefore it can be said the product can be purchased from different sources. Pricing has been done keeping in mind the competitor’s strategy and also according to the quality and service of the product (Anker et al.2015). Also there are many discounts and promotional policies available which helps the marketing of the product.

It was not at all long time ago, that Sony was considered as a king of the hill in the category of electronic goods manufacturing industry across the world. However, with the time, that position has been eclipsed by the Samsung. Nowadays, this specific state of affairs can be observed commonly in household electronic devices, being availed and used by hundreds and thousands of consumers across the globe (Steenkamp, 2017). The Sony, which once was recognised for its technical and technological superiority, is now facing severe market competition and is in a vulnerable market position. Now the question is how does Samsung become popular over Sony, which was once recognised for its brand loyalty as well as for its market value? The answer will be values proposition and branding strategy. Definition wise value proposition refers to the market innovation strategy, service provision and unique features and quality of products being offered by a company with the aim to attract consumer from every corner of globe.

Keeping eyes on the branding strategy or more specifically on the value proposition approach of Sony, it can be observed that, “branding” is one of the simplest and most effective strategies being undertaken by the competitive organisation in order to maintain consistency in market position (Batra & Vashisht, 2017).  Consistency in banding glossary indicates to the ability of an organisation to convey the organisational mission and unique characteristics features of their products to the consumer, so that they can make distinct differentiation for the specific brand with respect other similar brands and products. This can be considered as one of the effective way for any brand to create brand identity, brand essence and brand images in international corporate market.

Innovation can be considered as one of the important features, by using which, till now Sony is maintaining a consistent market position in electronic industry across the globe. Sony Smart TV X7000E can be considered as a good example associated with the innovation. If one tries to make a comparison between the Samsung smart TV w660f LED HDR and Sony Smart TV X7000E, then it can be observed that, high and most upgraded version of software system is being used in Sony smart TV (Nenonen & Storbacka, 2018). Apart from that it has smart phone connectivity feature, in order to provide high definition picture quality 4KX-Reality PRO and live colour technology has been used in every product of Sony X7000E range. By analysing the current market scenario of electronic industry, it can be observed that, this specific model is established itself as flagship model for Sony over the products being manufactured and promoted by Samsung. The best picture quality, clarity in sound makes this specific product of Sony as a standalone choice for the global consumer, specifically those who wants to purchase such TV from which they can get ultimate detail of high dynamic range of viewing experiences.

In fact this particular product of Sony can be considered as perfect amalgamation of luxurious design and the most upgraded and scientific technology, which is designed with the aim to uplift the TV viewing experiences along with the market position of Sony to a considerable range.

From the inception to 20^th century, Sony has ruled over the electronic industry across the globe, but from mid 20^th century to throughout the late 2000s, the company faced struggles and obstacles, specifically after the entry of Samsung in international electronic market. In such situation, in order to regain and rejuvenate the previous position, the company has the necessity to adopt an effective marketing mix strategy, which will include the factors like product, people, price and promotion (Hacklin, Björkdahl & Wallin, 2017).

For any business organisation, product is considered as one of the most important element on which brand identification and brand image depend to a greater extent.  Lack of bran evolution can be considered as one of the biggest reason, for which, nowadays Samsung has ruled over Sony in electronic market. In order to regain the previous market position, The foremost necessity of the competitive brand should be to understand the disruptive force of change like newly emerging form of communication and entertainment, digital communication, connectivity and so on, which, in most recent time impact upon the taste and preferences of consumer towards electronic goods largely.

Pricing strategy in marketing mix of Sony should be such that it can easily meet the affordability range of any consumer (middle class buyer to higher-end consumer) across the globe (Batra & Vashisht, 2017).

Successful launching of a product or an effective promotion can enable a company to draw the consumer towards own products or brand. For Sony, effective promotional strategy can be an effective way out to rejuvenate and resurrect the previous brand value and image among the global consumer.

People in marketing mix strategy is considered as the most important element on which growth and development of any brand or company depend to a large extent (Steenkamp, 2017). Proper market evaluation, adaptation of effective range of innovation in product manufacturing and operational process can be considered as a good way for Sony to acquire and retain consumer from international level.

Sony X7000E Smart TV can be considered as such product which ha own originality and which can provide extraordinary viewing experiences to the consumer.

In order to make a justification about why value proposition strategy and marketing strategy of Sony for its competing product may change the consumers’ preference, then it can be said that, one can consider the unique features associated with Sony X7000E Smart TV.

Nowadays, consumers are trying to avail such household electronic goods specifically TV which can give ultimate viewing experience to them. Compare to the Samsung smart TV w660f LED HDR, Sony X7000E Smart TV has several unique features, like its 4K HDR technology, ultra HD resolution, HDR video content, high definition picture clarity and soon. These features can potentially provide extraordinary range of visual expression to the consumer (Lancaster & Massingham, 2017). Apart from that, the effective pricing strategy can also be considered as effective way by which Sony can easily grab the attention of consumer from the Samsung. From the “pricing” point of view, Sony always tries to provide products and services to the consumer at premium price without compromising with the quality of products. Proper market evaluation is another effective strategy, being undertaken by Sony in most recent times, by which Sony can again starts its journey of returning to the mind of consumer (Armstrong et al. 2015).

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