Posted in Marketing and Strategy Terms, Total Reads: 377
Definition: Consumer Goods Marketing
Consumer goods are the products that we (final consumers) see in a store i.e. the final products obtained after production or manufacturing. Example: Jewellery, Clothes, automobiles, processed foods etc. Goods like steel, that we do not use directly unless processed, are not considered to be consumer goods.
a. Convenience goods- Easily available and most frequently used goods.
Example: Soaps, staple foods, milk etc.
b. Shopping goods- These type of goods need to carefully analysed before buying. Example: Clothing, furniture etc.
c. Speciality goods- Goods with unique attributes and brand identities.
Example: Luxury cars, professional cameras etc.
d. Unsought goods- These are the goods that the consumer does not much know about or does not really care to know about it, unless hears about it from someone. Example: Newly launched cell phone, some differently processed foodstuffs etc.
The marketing of these consumer goods is known as consumer goods marketing. It involves targeting directly the individuals rather than businesses. It does not include the middlemen.
A thorough research needs to be conducted on factors such as consumers’ buying habits, buying location, type of goods purchased etc. The results are then used to predict the future trends in a products’ demand and also to decide the price of the final product.
Some of the strategies that a company can use to use influence consumers’ choices are:
a. Connecting on an emotional level: A consumer (generally, Indian consumers) thinks more of emotionally than logically while buying a product.
Example: If a person of about 25-30 years is given a choice to choose a glucose biscuit amongst Parle-G and Tiger, he/she is more likely to choose Parle-G. It is because of the memories attached to the brand. Some brilliant examples of ads that connect on an emotional level are:
b. Keep the brand visible: The brand should be visible to the consumers in some or the other way. It could be through corporate giveaways, logos, hoardings, advertisements etc. Example: As soon as a customer looks at an orange tick mark, he/she should think of Nike.
c. Distinguish yourself: Create a unique image for yourself in the market. Example: As soon as one thinks of Hazelnut spread, Nutella should come up to his/her mind or when someone says furniture, people think of ‘Ikea’.
d. Make people feel they are already using your product: This can be done by building a brand image or a product image in the minds of the consumer. Example: Toothpaste ads that show the before and after effects of using a toothpaste.
e. Never neglect the core criteria: Never ignore the core competencies on which the company has been built.
Example: Nokia was a market leader in cell phones, before the introduction of Android operating systems. Later Samsung, on account of its updated technology started gaining the position of the market leader. To tackle this situation, Nokia came up with Windows phone. Nokia has a tagline ‘Connecting people’. But these windows phone were very less compatible to the available software and applications as compared to the android phones. Thus, this lead to the fall of Nokia.
Thus, understanding the consumer and the consumer psyche is the most important thing in consumer goods marketing.