The process of developing a Comprehensive Strategic Marketing Plan. To choose an appropriate target market, one must understand how consumers make purchase decisions.
Research then discuss the concepts of "needs" and how these needs fit within the stages of the consumer behavior model.
Summarize how you would apply the above discussion to your product/service's target market and the competition. Note: even though you have "created" a product or service, it makes sense to research real companies and products that might be considered competitors.
Model of Consumer Behavior: Constrained Optimization
The consumer's objective, according to economic theory, is to select a set of product quantities that maximize satisfaction (or utility), subject to available income. The consumer expends all of their income (budget) and selects specific amounts of the two products. Product prices and income are predetermined and, consequently only the quantities of the two products are varied to maximize utility.
Characteristics of the utility function may be examined by inspecting indifference curves. An income restraint subsumes all possible combinations of product prices and income - although the values of prices and income are given at the time a consumption decision is made.
The consumers' decision for constrained utility maximization leads to a level of consumption of the two products corresponding to the condition that the indifference curve for the highest level of utility that may be obtained, given income, is tangent to the income restraint. The slope of the restraint is equal to the slope of the indifference curve. Different prices and/or income levels for the baseline and alternative scenarios yield different results.
Model of Consumer Behavior: Law of Demand
The law of demand states that if price declines, then the quantity demanded of the product will increase. The inverse relationship between price and quantity leads to the downward sloping demand curve.
The process of income constrained utility maximization leads to a level of consumption such that the consumer attains the highest level of satisfaction given their budget. This assumes prices are constant. If one product price is lowered, a new budget restraint is defined along with the corresponding utility maximizing quantities that conform to those shown in the demand schedule.
Deriving the law of demand using indifference curve analysis shows the inverse relationship between price and quantity demanded in each of these models the importance of consumer need is what leads to the demand curve and the indifference curve analysis.
Successful companies in the set marketing strategies geared to the needs of consumers taking into account any competition. However, the market is not uniform and a large number of segments exist, depending on income, taste, specific needs, cultural and religious background, etc. In addition, consumer needs are dynamic and ever-changing.
It makes sense to research real companies because in large import markets such as the European Union, Japan and the USA, consumers are demanding more sophisticated products. At the same time, improved logistics permit the delivery of fresher products from all over the world. But in developed countries, there also exist large segments of price-conscious consumers who demand standard low price products. In many developing countries, the most sought after and high value products are exported and only a small percentage is consumed domestically. Local consumption is met by low priced domestic production or by imports.
It makes sense to research real companies because in recent years, the growth in modern retail channels such as super and hypermarkets, consumer advertising, increased travel and globalization has converged international consumer tastes. However, consumer needs continue to be quite ...
In a 1974 comprehensive and well-cited solution, the response provides a vast amount of information in answer to the questions.