Buyer behavior Essay
Blackwell, Miniard and Engel have proposed a very generic model of consumer problem solving in their text. The authors have related consumer decision making process as a goal directed problem solving process for consumers. By this we mean that when going for a decision or selecting between choices, a consumer is first exposed to a problem that creates confusion in his mind that what to think. This confusion and problem arises because there is a gap between his goals and the available services and products.
In order to bridge this gap the consumer then takes help from the consumer decision making model and thus solves this problem by following a defined process. First of all the consumer recognizes a process and identifies for the differences between his ideal expectations and the situation and state of the product market. By using this problem solving process, Lamborghini can look into what are the main problems faced by consumers and potential customers in the market.
Then it can come up with solutions in order to relate with the product, for example those customers who want speed with safety because they use this car for both family and status thus, Lamborghini can market this car as may be ‘safety with speed and status’ (Woodside 1992). After recognizing the problem the consumer then searches for a solution and thus he tends to seek information about substitutes. This is the time when the organization is expected to provide the customers with the information they need and thus leaving an image for them as the perfect solution to think upon.
Lamborghini can also target these customers by providing its promotional material and text to corporate heads, business executives and people with heavy bank accounts in order to be the first to be in their mind. As the product is quite expensive, thus there is very less chance that any consumer would avoid considering the alternatives that are available in the market. This is the fourth stage of the consumer problem solving process where Lamborghini can provide the consumers with text and promotional material giving them a detailed overview of their product, its competitiveness and its edge over the other products.
Then in the fifth stage the consumer buys the product and then makes further evaluation of the company and the product after the use of the product. By getting consumer feedback and providing after sales services, Lamborghini can come up with new strategies and ways in order to please its customers. As the product is designed for a very narrow based market, thus identifying different tastes, wants and preferences of consumers is very because they can subdivide under different categories. Each potential customer can be provided with information according to the subdivision he belongs to and thus more customers can be satisfied (Bettman 1975).
There are a lot of levels in which problems are solved by the consumers depending on the effort they put in while deciding for a product that range from low involvement / low knowledge to high involvement/ high knowledge. There are 2 more levels in between these extremes. However in case of Lamborghini, as this product is a luxury item with a heavy price tag thus the consumers are highly involved. However as far as knowledge is concerned, there can be two cases, high or low, due to the two different target markets that we have already discussed.
This is because corporate and status conscious customers want the best without having much knowledge about the performance about the running and speed of the car. The price tag and the brand does it all for them where as sports car lovers do take information into account to a great extent. Here below is a table that shows the difference in problem solving effectiveness of both the target markets. End Goal Considerations Decision Process Using a decision sequence model, such as SOSTAC, develop an appropriate communications strategy (including media and message) for this target market.
A decision making model is a model that manufacturers use in order to devise a marketing plan that is strategically designed for ensuring maximum communication with the consumers which will in the end help in attracting more customers for the company. The decision making model that has been discussed in the research paper is known as the Sostac business model which stands for Current situation, Objectives, Strategy, Tactics, Actions and lastly the control of the firm over its operations in order to market its product in the most efficient way(Moner 1973).
This model is closely related with the consumer buying and purchasing behavior because the methods of information collection and generating of information are designed in such a way they can be used to promote and market for the consumers, according to their tastes and preferences. This model also helps an organization to realize its own position in the market and identifies the weaknesses and strengths of the firm. Basically the main function of this model is communication.
The company first acquires information from the consumers that includes their intentions, attitudes, objectives and behavior towards a certain product, and then the company communicates comes up with a market strategy and plan in order to highlight these demands of consumers in their product. The company has to gather information regarding itself as well in order to see what actually is the current position of the company in the market so that the strategies it comes up with can be designed in the similar manner? A small developing business cannot claim and adopt strategies of a well established running business.
In the case of Lamborghini, we will conduct a SOSTAC analysis in order to analyze its true position in the market as well the strategies it can use to market its products. Situation: In this subhead, the company first analyses where it is now. Lamborghini has to analyze itself in the automobile in order to see how the industry, competitors and the consumers look up to it. For this the company should take into account three further concepts that include the Swot analysis, the pet analysis and its competitive position in order to construct the negative and positive side of the companies’ actual position.
In the Swot analysis Lamborghini analyzes its strengths weaknesses threats and opportunities in the automobile industry and the consumer market. The strengths of the company are that it has been providing quality sports cars from a number of years and is known in the sports car industry in the world. Lamborghini is a brand name and it has many loyal rich customers who came back again and again for newer models. As the SUV that the company is producing is a very luxurious car and also very happy on products, thus it is easy for the company to target its potential market with few other sports car manufacturers.
Competition in the sports car industry between these few players is quite intense because every company tries to focus on the small potential market for sports cars (Dhar 1997). This can be looked upon as weakness of the company from the external side because companies like Ferrari BMW and AUDI are also producing and marketing quality sports cars like Lamborghini. Also as the company is marketing a branded and a luxurious expensive car, it cannot flood the market by mass production and reduced prices.
The reason behind this is that along with marketing for the SUV, the company also has to maintain its luxury brand image and the status of producing ‘A’ class cars. Thus they cannot fall below a certain standard to attract more customers. Opportunities for the company in this case are that more and more credit facilitation programs are being launched by banks and financial institutions as known as auto loans and thus the company can target even those customers who have recently been promoted to high salary jobs and thus have the ability to pay for the installments.
Lamborghini is also providing such auto loans to customers as well in order to make availability of funds to them. Private franchise owners are also coming into the scene even from the developing countries and thus the company also sees great opportunities and potential in the markets of these countries, again targeting the top notch people of their society. TV shows like Top Gear and Red Line have also aired entire episodes on the performance and the characteristics of the car and has helped in educating them well about the car.
Lastly, in the SWOT analysis, Lamborghini also faces threats from the external side as the industry is coming up with new technology in racing and there has been a race going in this regard. Also there is a huge cost of business also involved in research and development because the research and development going on in this field are one of the most advanced levels of researches ever.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 5 June 2017
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