ANALYZING MARKETS

Analyzing Consumer Markets

Consumer Behavior is the study how individuals, groups and organizations select, buy, use and dispose off goods, services, ideas or experiences to satisfy their needs and wants.

Factors affecting consumer behavior are :

Cultural factors :

5 star available in various quantities and is easily affordable irrespective of the social status. since Indians love to eat sweet after their meals , they generally prefer chocolates . Thus, 5 Star is consumed in various parts of India in the form of an after food dessert.

Social factors :

The behavior of people can be affected by family, friends, co-workers, religious groups, professional groups, inspirational groups etc. another direct influence is the family of procreation i.e. the person’s spouse and children.

Reference groups such as family and friends consume 5 star and hence other people looking at them also feel like trying it. Hence in this way socially the use of a product is effected.

Personal factors :

A person’s age, occupation, personality and perception of oneself, lifestyle, values etc also affects the choices we make.

5 Star is consumed by any one and every one in the society. No special status or personality or lifestyle is required to do the same.

Theories which govern the consumer behavior are :

Freud'sTheory

It is a sales theory which supposes that consumers choose whether or not to purchase a product due to unconscious desires and motivators, and that the qualities of the product, such as touch, taste or smell, remind them of past events. Recognizing how the elements of a product trigger an emotional response from the consumer can help a marketer or salesperson understand how to lead a consumer toward making a purchase.

When we link this theory to 5 star we find that most of the time it is consumed without any actual stated reason. It is consumed  just for a mood change, or when there is a craving to eat something sweet.

Maslow's Hierarchy of Needs 

Maslow's Hierarchy of Needs is a "content theory" of motivation"

The classes of needs were summarized by Maslow as follows:

5 Star is consumed in India as a dessert either after meal or anytime anywhere. Hence, according to this theory, 5 Star falls under the basic need  i.e. the psychological needs.

Herzberg's Two Factor Theory

Herzberg's theory is related to certain characteristics of job related to job satisfaction, while certain other factors are related with job dissatisfaction. These factors are:

 Here 5 star's seller has a role to play. He need to identify the motivators  or the person who is satisfied by its characteristics and taste.

Analyzing Business Markets 

A business market consists of all organizations that acquire goods and services used in the production of other products and services that are sold, rented or supplied to others.

Characteristics of business markets

• Fewer, larger buyers
• Close supplier-customer relationship
• Geographically concentrated buyers
• Derived demand
• Inelastic demand
• Fluctuating demand
• Professional purchasing
• Many buying influences 
• Multiple sales calls
• Direct purchasing
• Reciprocity
• Leasing

 In a business scenario there are three types of buying situations

• Straight rebuy
• Modified rebuy
• New task 

 Factors Influencing Business Buying Behaviour are depicted in figure below

For any confectionery to be manufactured , the supply chain include raw material suppliers to the manufacturer. Extensive search is done about the supplier. Quotations etc are called and one with the best price and service is fixed. Cadbury does regular checks to maintain the quality of 5 star. It also make sure that time to time new variants are launched.