When a company decides to produce a product, it is its duty to target the needs of potential consumers. The concept of consumer behavior is important because it allows companies to understand which aspects of their product’s design and marketing will appeal most to potential customers. Consumer habits go beyond what people are just buying – an understanding of consumer habits could also help a company decide where they should invest more resources with less risk. This article discusses the concept of consumer behavior, how it applies to advertising, and what companies should do to make their products more appealing.
1. Product development
The first step a company must take in marketing is to develop a product that is appealing to consumers. The product must have the right quality and features and be priced at a fair value. However, if a company is not careful, it can produce a product that is not desirable to customers and therefore fails. The concept of consumer habits helps companies develop products that will appeal to consumers.
2. Pricing
Once a company develops a product and decides how much to price it, it must also determine where to sell it. Pricing should be set to appeal to as many customers as possible while also keeping the company in business – or even turning a profit. Consumer habits help companies price their products at a fair value. For example, suppose a company knows that most people are willing to pay a premium for high quality. In that case, they can decide to price their product above the industry average to achieve higher profit margins.
3. Marketing
Marketing is another step in creating a successful business, and it includes advertising, sales promotions, and public relations. Advertising is one of the biggest expenses for companies, so understanding consumer habits allow them to advertise effectively. For example, if a company knows that consumers value price over other factors, they should invest more in advertising and promotions where the cheapest price will be most effective.
4. Designing a new product
Companies must also understand consumer behavior in regards to their product design. A company may want to design a product that appeals to its target audience. For example, suppose a company wants to target younger consumers and create products targeting teenagers. In that case, they should develop products that appeal to teenagers, such as trendy colors and fashionable designs. On the other hand, if a company wants to appeal to an older audience, they should design their products with an older feel.
5. Understanding consumer motivations and behaviors
A big part of understanding consumer behavior is understanding what motivates customers to purchase a certain product over another. The concept of consumer habits helps companies understand why people choose their products over others. For example, if a company’s product is extremely popular, but the sales are decreasing, they should examine why this trend is occurring and make changes if needed.
6. Investing
It can also help a company decide where to invest their marketing and advertising money with the least risk. For example, if a company’s target audience is teenagers, but their product appeals to the older audience, they may want to change their advertisement strategy to appeal to younger people. Suppose a company only invests in advertising with print and television advertisements. It will be ineffective at reaching new customers and consumers who prefer to buy online instead of in stores.
7. Create an effective marketing plan
A company’s marketing plan includes everything from advertising to public relations. If their product appeals to their target audience, but the product is not of good quality or priced competitively, their marketing plan will not be effective. The concept of consumer behavior helps companies develop a successful marketing plan that will help them achieve the goals they have set for themselves. If a company does not understand consumers, they risk losing customers and investing in ineffective advertising strategies.
Conclusion
By understanding consumer behavior, companies can design products that will appeal to the different groups of consumers in the market. They can also price their products to be competitive in the market and decide where they should invest their advertising budget in reaching customers.
