How marketing influences consumer behavior
Marketing is an essential component that every business owner should use to expand their reach. Eventually, this will grow their customer base and increase their revenue. The success of a business largely depends on the level of marketing strategies implemented and how they are effectively executed. One of the ways marketing impacts businesses is through its influence on consumer behavior.
Consumer behavior is understanding the actions and decisions consumers make when they are looking to buy a product or service. Understanding the psychology behind consumer behavior can help you create better marketing campaigns, improve your product offerings, and ultimately increase your sales and revenue. With IFTTT, an automation service that lets you connect and integrate over 800+ services, offers a guide on lead generation, which can help you better understand your audience so you can tailor your marketing strategies to their needs. In this blog, we will discuss how marketing influences consumer behavior and how business owners can leverage this knowledge for their success.
Table of Contents
- Why is consumer behavior important?
- Understanding customer preferences
- Improving marketing strategies
- Staying competitive
- 5 factors that influence consumer behavior
- Psychological factors
- Social factors
- Cultural factors
- Personal factors
- Economic factors
- How does marketing influence consumer behavior?
- Emotional appeals
- Brand awareness
- Product differentiation
- Scarcity and urgency
- Brand loyalty
- Build your brand with IFTTT
- Why is consumer behavior important?
Why is consumer behavior important?
Consumer behavior plays a major role in the success of any business. Understanding the influences, motivations, and decision-making processes of consumers helps businesses optimize their strategies to cater to their target audience. By developing an in-depth understanding of consumer behavior, businesses can thrive in a highly competitive marketplace and achieve long-term success. Let’s take a closer look at why consumer behavior is important.
Understanding customer preferences Consumer behavior research provides valuable insight into what drives your target audience, their preferences, and what they are looking for when they make a purchase. By analyzing customer data, including online and offline behaviors, businesses can develop insights into customer needs, interests, and pain points. Understanding customer preferences helps companies to make more informed decisions when developing a product or service, creating marketing campaigns, or developing a sales strategy. For example, if a scooter business comes to an understanding that customers prioritize scooters that are lightweight more than any other factors, then the business should focus on manufacturing scooters that are lightweight instead of using resources that are not as important to customers like color.
Improving marketing strategies Consumer behavior research also helps businesses develop targeted marketing campaigns. By understanding their target audience’s preferences, interests, and behaviors, businesses can develop marketing messages that resonate with their customers. For instance, companies can analyze customers’ responses to certain campaigns to understand which messaging works best, which platforms their customers use the most, and what type of offers or promotions their customers respond to. This information helps businesses develop marketing plans that appeal to and retain customers.
Staying competitive Lastly, staying ahead of consumer trends and preferences is critical for remaining competitive in the marketplace. By understanding and anticipating customer preferences, companies can develop new products, offer new services, and provide a better overall experience. For example, companies that identify a shift in consumer preferences towards environmentally sustainable products early can get ahead by offering eco-friendly products and services.
5 factors that influence consumer behavior
Psychological factors Psychological factors such as motivation, perception, and attitude also play a key role in determining consumer behavior. For instance, a person's motivation for buying a product may be influenced by their need for safety, security, or social status. Additionally, perception - how they perceive the product or service - can also impact their decision-making process. A positive perception can lead to a more favorable attitude and ultimately a purchase.
Social factors Social factors such as family, friends, and social media have a significant impact on consumer behavior. For example, word-of-mouth recommendations from friends and family can be more influential than traditional advertising. In today's social media-driven world, influencers and online reviews can also play a critical role in shaping consumers' opinions and purchasing decisions. If you take a look at TikTok, it is a platform where users and businesses can easily go viral compared to other social media platforms. There are thousands of small and big businesses that increased in brand awareness and drove up in sales because they had either simply advertised their product or service out there for users on TikTok to see or had other users showcasing it.
Cultural factors Culture, beliefs, and customs determine what people consume in different geographical areas. Cultural factors like religion, ethnicity, and language can influence consumer buying decisions. For instance, in the United States, gift-giving on Christmas and Valentine's Day is precisely what the culture dictates.
Personal factors Personal factors such as age, income, gender, and education have a significant effect on consumer behavior. For example, a young person with limited income is more likely to make purchasing decisions based on price, while an older, more affluent individual may be focused on quality.
Economic factors There are two components when we talk about economic factors: personal income and government policies.
Consumers with higher incomes tend to make more significant purchases, and those with lower incomes will naturally buy low-end products. The amount of disposable income that an individual has after taking care of the essential expenses determines their purchasing power and behavior.
Government policies on taxes and subsidies impact consumers' purchasing behavior. Policies that make production expensive for businesses and taxes high on goods will increase the price of the products, and consumers will move to cheaper alternatives. On the other hand, policies that reduce taxes and provide subsidies will lead to a decrease in the prices of goods and an increase in demand.
How does marketing influence consumer behavior?
Emotional appeals Marketing messages that use emotional themes like love, happiness, and sadness can create a significant impact on our decision-making. For instance, advertisements with cute puppies or heart-melting moments can create a sense of happiness, trust, and love on the product or brand being advertised. Marketers use these emotions to create a sense of connection or empathy with the consumer, influencing their behavior.
Brand awareness Marketing creates awareness for a brand, which in turn influences and enhances the consumer's perception of the brand and its products. Through marketing efforts like adverts, social media campaigns, and direct marketing, businesses can push their brand into the marketplace, which helps consumers familiarize themselves with the brand in order to build brand loyalty and trust among consumers. With increased brand awareness, consumers tend to trust the brand and are more likely to buy their products.
Product differentiation Marketing plays a significant role in helping businesses differentiate their products from others in the marketplace. Through outstanding marketing campaigns, businesses can communicate how their products are different from others, creating a unique identity for their brand. Consumers recognize products based on their unique features and benefits, and this differentiation impacts their decision-making process. For example, if there were a granola bar that has healthier ingredients and lower calories compared to others, then consumers who prioritizes their health over taste are more likely to purchase it.
Scarcity and Urgency Marketers often employ scarcity and urgency tactics to influence consumer behavior. They use techniques such as time-limited offers, flash sales, and limited edition products that create a sense of exclusivity and urgency. When consumers perceive the item or product as scarce or limited, they feel the urgency to act quickly and make a purchase, leading to impulsive buying behavior.
Brand loyalty Building brand loyalty is essential for marketers, as they want to create a loyal customer base. The goal of this strategy is to create a connection and build trust with the customer that will result in repeat purchases over time. Marketers can leverage techniques such as providing excellent customer service, creating a rewards program, or using personalized marketing messages to keep customers coming back. As a result, consumers develop an emotional and psychological connection with the brand.
Build your brand with IFTTT
Understanding how marketing influences consumer behavior is vital for any business. From the psychology of consumer behavior to brand image, social influence, decision-making process and emotional appeal, marketers need to understand how they can influence each of these factors to create compelling marketing campaigns. By doing this, they can increase brand loyalty, drive sales, and ultimately grow business revenue. As technology evolves, businesses must adapt their marketing strategies to stay relevant in the fast-paced world of marketing. In order to stay on top of your game, using IFTTT is a great way to do so. We have Applets that can help boost your social media game and streamline other aspects of your marketing works. Here is a handful of our most popular social media Applets:
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