Two employees in an organization with a similar designation and with similar incomes may still opt for different

products and services one may be driving a Chevrolet Spark (petrol version) using a Airtel HTC mobile and subscribing SBI Contra SIP and also investing money in share market, while the other may be owning a Maruti Zen (diesel Version) using a Tata Indicom Nokia Mobile, investing in postal and LIC of India. Why this situation?

This example shows that people in a very similar situation may still act or behave differently. Every person is driven to satisfy a specific need in a different way, resulting in variation in the consumption of goods and services, from individual to individual. Both have different motivational goal to satisfy.

Motivation is defined as stimulation of any emotion or desire operating upon ones will and prompting or driving it to action.

MEANING OF MOTIVATION

FEELING HUNGRY? (unfulfilled need)

Want to eat? (tension)

Search for alternatives to reduce your hungry (drive) If at home ask mummy what is in the kitchen to eat. (learning) If mummy is not there you will remember that she prepared some cake yesterday (Cognitive Processes) You eat the cake (Behavior) and this satisfies your hunger (goal or need is fulfilled) or it might not have satisfied your hunger (goal not fulfilled)

Model of the Motivation Process

Learning

Unfulfilled Needs, wants And desires

Tension

Drive

Behaviour

Goal or need Fulfillment

Cognitive processes Tension Reduction

Motivation

Motivation can be described as the driving force within individuals that impels them to action

Motive: An unobservable inner force that stimulates and compels a behavioral response and provides specific direction to that response.

Needs

Primary needs: or innate needs or motives. (Need for food, for water, for air, for clothing, for shelter and for sex) Secondary needs: or acquired needs that we learn in response to our culture or environment. (these may include needs for self-esteem, for prestige, for affection, for power and for learning)

Goals

Generic goals: Water to quench summer thirst

Product-specific goals: Lipton's Iced tea to quench summer thirst

The Selection of Goals

Personal experience Prevailing cultural norms and values Goals accessibility in the physical and social environment Self Image ( a product that is perceived as matching a consumers self-image has greater chance of being selected) Interdependence of Needs and Goals

Positive and Negative Motivation

Positive drives are needs, wants and desires.
Sunflower oil for healthy family Toothpaste for fresh breath

Negative drives are fears and aversions

Sunflower oil for reducing the chances of heart attack Toothpaste to stop bad breath

Rational versus Emotional Motives

Rational Motives: implies that consumers

elect goals based on totally objective criteria, such as size, functions, price .

Emotional motives: imply the selection of

goals according to personal or subjective criteria such as pride, fear affection and status

Rational Motives

Erickson : Surprising small Lifebuoy: kills germs you cannot see Apex Exterior paints from Asian Paints: time proof beauty Dabur Chyavanprash: immunity against infections M-seal :seals all leaks

Emotional motives
The way how the brand makes you feel. Close-up: confident Franklin templeton: secure Axe: irresistible JK tyres: In control Liril: fresh NIIT: inspired life begins at NIIT

Maslows Motive Hierarchy

5. Advanced 4. Self-actualization: This involves the desire for selffulfillment, to become all that one is capable of becoming. Esteem: Desires for status, superiority, self-respect, and prestige are examples of esteem needs. These needs relate to the individuals feelings of usefulness and accomplishment. Belongingness: Belongingness motives are reflected in a desire for love, friendship, affiliation, and group acceptance.

3.

2.

Safety: Feeling physical safety and security, stability, familiar surroundings, and so forth are manifestations of safety needs. They are aroused after physiological motives are minimally satisfied, and before other motives. Physiological: Food, water, sleep, and to a limited extent, sex, are physiological motives. Unless they are minimally satisfied, other motives are not activated.

1.
Basic

Marketing Strategies and Maslows Hierarchy

Physiological: Food, water, sleep, and to a limited extent, sex, are physiological motives.
Products : Health foods, medicines, sports drinks, low cholesterol food, exercise equipment, bed, travel sleep bags.

Theme : Burnol Antiseptic cream

Marketing Strategies and Maslows Hierarchy

Safety: Feeling physical safety and security, stability, familiar surroundings, and so forth are manifestations of safety needs. Products: Smoke detector, preventive medicines, insurance, seat belts, retirement investments, sunscreen, data protection (new), vehicle safety (brand image) Theme: Lakme sunscreen lotion, pension plans of icici pru, Hepatitis B injection

Marketing Strategies and Maslows Hierarchy

Belongingness: Belongingness motives are reflected in a desire for love, friendship, affiliation, and group acceptance.
Product: personal grooming, food, entertainment, clothing, greeting cards, jewelry and diamonds

Theme: Country club (Bring your Friend)

Russels spoken English

Marketing Strategies and Maslows Hierarchy

Esteem: Desires for status, superiority, selfrespect, and prestige are examples of esteem needs. Product: Clothing, liquor, furniture, hobbies, stores, cars
Theme :Raymond A complete man

Marketing Strategies and Maslows Hierarchy

Self-actualization: This involves the desire for selffulfillment, to become all that one is capable of becoming.

Product: education, vacation, charity

hobbies,

sports,

some

Sheths Five Needs

Functional needs Those needs which satisfy physical/functional purpose, e.g. soap (Lux, Santoor, Dove)

Social needs Needs that allow identification with desired group, e.g. logos (Versace) Emotional needsThose needs which, create appropriate emotions, e.g. joy on getting gift or giving gifts (Titan) Epistemic needs The Need for knowledge/information, e.g. newspaper (DNA, Times of India, Economic Times) Situational needs The needs, which are contingent on time/place, e.g. emergency repairs or swine flu medicines

The Challenge of Understanding Consumer Motivation

Mel Fisher is the executive director of Mel Fisher Maritime Heritage Society. He searched a treasure For nearly fifteen years and meanwhile lost one son Also. He ultimately found the treasure. Why did he Search for treasure? Why do people go for credit cards?

The Challenge of Understanding Consumer Motivation

Reasons underlying consumer motivation are not always obvious Research is necessary to discover real motivations behind behaviors

People dont always want to disclose real reasons for their actions
People dont always know why they do what they dounconscious motivation Motivations change over time

How motivation is useful in marketing? unconscious motivation

Motivating with Money

Provide Other Incentives Implement a Loyalty Program

Enhance Perceived Risk

Arouse Consumers Curiosity

Why do women bake?

Unconscious Motivation

Pillsbury Doughboy appeal to unconscious Needs?

Motivating Consumers
Motivating with Money
Price cuts, specials, rebates, and coupons motivate purchase Resulting sales may increase, but profits may not

Attracts consumers less likely to repeat

Price reductions may increase price sensitivity

Motivating Consumers
Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase

There are limitations and shortcomings for this strategy in addition to the products offered as a premium being valued less (value-discounting hypothesis)

Motivating Consumers
Implement a Loyalty Program
Motivate repeat buying by providing rewards to customers based on how much business they do with the company

Tracks consumer purchases and provides estimates of Customer Lifetime Value

Motivating Consumers
Enhance Perceived Risk
Perceived risk: consumers apprehensions about the consequences of their behavior (buying and consuming the product)

Greater search

perceived

risk

increases

Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk

Informing Consumers of Their Risks

Motivating Consumers
Arouse Consumers Curiosity
For new products, educating potential customers is crucial Curiosity often leads to an enhanced need for information May advertise a benefit that is not normally associated with the product

Arousing Curiosity

Case Study Thomson was a limited company manufacturing vending machines. These machines could be used for automatic vending of cigarette packs, match boxes, tea, coffee, cold drinks, chocolates and many other products. The vending machines had to be programmed for vending various items. One machine could handle a variety of products as well. These were to be installed at shopping centres, cinema halls, public places, hotels, etc. The manufacturer started with installing these machines in various parts of the city for selling coffee and tea. The machines became popular, as they served the customers with both tea/coffee at a standard price and the customer had the choice of having strong or light, with or without sugar, more and more machines were set up at strategic places like bus stations, railway platforms, etc. so that the customer had an access to the beverage, whenever he needed it. In the beginning, an attendant was also required to stand with the machines, as they were not fully automatic. Later, fully automatic machines were developed, which could work without the help of an attendant. The attendant had to come only once, to replenish the stocks and take out the cash from the machines. A difficulty that was faced, was that these machines did not accept torn notes or some coins which got stuck in the. To overcome this difficulty, the company was contemplating to introduce a card system, which could be purchased with Rs.100 or its multiples and on using these cards, the amount would get debited automatically and the balance would be known by the consumer. The survey showed the results, but a lot of effort would be required to motivate the consumer to buy these cards. The company also contemplated providing the consumers with other products as well. These could be cigarettes, soaps, oils, cold drinks, chocolates, biscuits, etc. Discuss the various issues of this cases. Bring out solutions to the issues listed.

Home work for next class