Marketing Principles Activities Processes

Question: Discuss about the Marketing Principles Activities Processes. Answer: Introduction: According to Pride (2011), marketing principles are the activities or a range of processes that involves determining the customer needs and providing it for them. Nescafe is an instant coffee brand which has market across the world. The brand is owned by Nestle S.A. which is a transnational food and drink company in Switzerland (Nestle.com 2016). It is the number one brand in instant coffee in Australia and rules the market. The product is available in various forms and flavours such as Cappuccino, Dolce Gusto, Decaf, Mild, Strong, Greenblend, Blend 43 and many more (Nescafe.com.au 2016). These forms help in addressing the needs of diverse customers who consume the beverage. According to the research released from Roy Morgan, 38% of the Australians buy instant coffee for 12 months out of which 50% bought Nescafe (Boothroyd 2013). The coffee companies need to understand their customers and create differentiation through their offerings. The aim of this report is to critically analyse the theories and marketing principles. Nescafe conducts several marketing activities and it plays a significant role in the current market position of the brand. It is necessary to evaluate the factors that affect the purchase decision process of customers. This helps in making changes and addressing the customer needs effectively. This report addresses the consumer decision-making process by following a series of steps to make a purchase decision. The report further addresses the four factors that affect purchase decision process of consumers. The level of satisfaction or needs fulfilled by Nescafe is also assessed using Maslows Hierarchy of Needs theory. Steps in Consumer Decision-Making Process There are five stages or steps that can be used to make a decision for purchasing the product. They are: Need Recognition- It is the most important step in which the consumer may be attracted to Nescafe due to its aroma, taste and habit. It is an internal stimulus that would result from a physiological need felt due to hunger or thirst (Pride 2011). Information Search- Selecting a coffee brand does not require substantive information search. It can be simply bought from the store shelf based on internet information. The information must be present in the customers memory due to previous experience with Nescafe or Nestle (Pride 2011). Evaluations of Alternatives- After the information is collected for Nescafe, the consumer shall evaluate alternative coffee brands such as Gloria Jeans and Vittoria Coffee which are popular in Australia. The comparison shall mainly be made on the basis of price. The consumer may also consider substitute like other beverages such as tea or juices (Adams 2012). Purchase- After evaluating the different products and brands available to satisfy the needs, the customer shall made purchase decision. The product quality, price and refreshment level shall be considered for making the purchase decision (Pride 2011). Post-Purchase Behaviour- After purchasing the product, the customer shall share their opinions about Nescafe. As Nescafe is an instant coffee brand, the consumers tend to involve at a low level and they shall make further purchase on loyalty (Aguirre-Rodriguez et al. 2012). Factors Influencing Consumer Decision-Making Process Consumer behaviour us the study in which the customers select, use or dispose the products. The consumers behaviour is influenced by four factors namely: cultural, social, individual and psychological factors (Pride 2011). Cultural factors- The purchase decision for Nescafe shall be influenced by sub-cultural factors such as social class and age. The coffee drinkers have a high social class and belong to the age group over 20 (Lysonski and Durvasula 2013). Social factors- The purchase decision for Nescafe is affected by the brands that offer discounts and higher satisfaction. Also, it is also influenced by reference groups in which the group in society influences the purchase behaviour (Lysonski and Durvasula 2013). Individual factors- Nescafes purchase decision is dependent on factors such as age, life-style and self-concept. A person with a higher perception and self-evaluation is more likely to consumer coffee on a regular basis. Coffee also determines the interests and lifestyle which influences the purchase decision (Lysonski and Durvasula 2013). Psychological factors- The purchase decision depends on psychological influences such as selective retention in which the consumers support personal beliefs. He shall make a purchase if he has had a good experience with Nescafe or has a need for it (Lysonski and Durvasula 2013). Maslows Hierarchy of Needs The Maslows Hierarchy of Needs is a psychological theory developed by Abraham Maslow that speaks of the lower needs to satisfy before the higher-order needs (Taormina and Gao 2013). They are described as under: Physiological- Coffee is needed in the form of drinks and one does not look much into the brewing method. It satisfied the basic need of thirst and a habit. Instant coffee is made quick that motivates the consumers to purchase Nescafe (Taormina and Gao 2013). Safety- It also helps in securing health benefits providing benefits to the body. Coffee has an association with alertness that helps in beginning the day with spiked energy. It helps in assuring that the things in the capacity shall be done effectively (Taormina and Gao 2013) Love/ Belonging- the purchase decision for Nescafe may also be influenced due to social needs such as love or belonging. The beverage helps in establishing connections with friends, business partners, family and colleagues. People may drink coffee to fit in a social group where everyone enjoys the beverage (Taormina and Gao 2013) Esteem- Coffee is perceived a luxury beverage and it helps in boosting self-confidence. Nescafe is a globally renowned brand and people consume it more than other brands. Drinking coffee may help in enhancing self-esteem as the confidence level shall increase by its physiological properties (Taormina and Gao 2013). Self-actualization- After fulfilling the physiological, safety, belongingness and self-esteem, the consumers may simply want coffee because of its goodness. Nescafe may be demanded by the consumers as it helps in creating a moment and positive space. The coffee lovers may go into the production chain to buy the best coffee and enjoy the different flavours available (Taormina and Gao 2013). References Adams, J., 2012. Australia's American coffee culture.Australasian Journal of Popular Culture, 2(1), pp.23-36. Aguirre-Rodriguez, A., Bosnjak, M. and Sirgy, M., 2012. Moderators of the self-congruity effect on consumer decision-making: A meta-analysis.Journal of Business Research, 65(8), pp.1179-1188. Boothroyd, A., 2013.Nescafe remains leader in Aussie instant coffee market | Food Beverage. [online] Foodmag.com.au. Available at: https://foodmag.com.au/nescafe-remains-leader-in-aussie-instant-coffee-market/ [Accessed 27 Aug. 2016]. Lysonski, S. and Durvasula, S., 2013. Consumer decision making styles in retailing: evolution of mindsets and psychological impacts.Journal of Consumer Marketing, 30(1), pp.75-87. Nescafe.com.au, 2016.A fresh start for everyone everyday. [online] Nescafe. Available at: https://nescafe.com.au/products [Accessed 27 Aug. 2016]. Nestle.com, 2016.Which products and brands do you own?. [online] Nestle.com. Available at: https://www.nestle.com/ask-nestle/our-company/answers/which-products-and-brands-do-you-own [Accessed 27 Aug. 2016]. Pride, W., 2011.Marketing principles. South Melbourne, Vic.: Cengage Learning. Taormina, and Gao, 2013. Maslow and the Motivation Hierarchy: Measuring Satisfaction of the Needs.The American Journal of Psychology, 126(2), p.155.