Understanding consumer behavior is key for brands wanting to stand out and grab their audience’s attention. Knowing what motivates people and what they’re looking for is the ultimate knowledge for brands wanting successful marketing strategies.
What is it?
When it comes to marketing, consumer behavior is about understanding how people make purchasing decisions. This includes what people like, what’s considered “normal” or popular, how much money they have, what marketing tactics work, and even environmental factors. Marketers use this knowledge to find patterns in behaviors and come up with different strategies that speak directly to certain types of customers.
Why is it important to understand?
If you want to sell more and build awareness for your brand, you’ve got to know what influences people’s buying decisions. That’s where consumer behavior comes in! By understanding their behavior, you can tailor your marketing efforts to target specific groups, improve brand loyalty, and identify emerging trends. This can also help you stay ahead of your competition and adapt to changes.
Factors of consumer behavior:
PERSONAL
Several different factors influence consumers’ behavior. Personal factors can affect how people buy things. Age, gender, income, education, personality, and lifestyle can all influence what someone buys and what they prefer.
For instance, younger people are more likely to buy trendy clothes, while older people might prefer a more classic look. People with higher incomes tend to pay more for higher-quality products. It’s also critical to consider personality traits like risk-taking and impulsivity. Some people are more impulsive shoppers than others. Different techniques are required to target each of these groups. Your strategy for one won’t necessarily work for others.
To hit the mark with your audience, your brand needs to do some market research to understand the demographics and psychographics of your target audience. This will help create strategies that directly address the needs and interests of your market, making your campaigns more successful and boosting sales.
PSYCHOLOGICAL
Did you know that our brains affect our shopping habits? It’s true! Psychological factors, like motives, perceptions, learning, attitudes, beliefs, and values, can affect what we buy and why we buy it.
For example, someone’s motives, or the reasons they do things, can steer them toward certain products. How people see things can also make them feel more positive or negative about a brand or product. Not only that, beliefs and values can shape your target audience’s attitudes and purchasing decisions. To understand your audience better, you should know these factors. Use them to create marketing strategies that your audience will love.
SOCIAL
Social factors can affect how and what people buy! Things like the people we hang out with, family, culture, and social class can all influence consumer decisions.
If a group of people is obsessed with a particular brand, chances are others will try it too. Family influence also plays a major role in giving advice and support that influences purchasing decisions. Plus, different cultures and social classes have different values and beliefs.
It’s crazy how much the environment can influence consumer behavior! By considering these social factors, you can create marketing strategies that resonate with your audience’s values and beliefs.
SITUATIONAL
There are different situations that affect consumer behavior too! Yep, things like where someone is when making a purchase, what time of day it is, and even what’s available can all come into play.
For example, someone might be more likely to buy a cozy sweater if they’re shopping in a chilly store, or they might be more likely to grab a coffee in the morning than in the afternoon. If a specific product is out of stock, chances are they’ll go with a different brand altogether. Your brand needs to understand these factors so you can market your products effectively.
The Planning Phase
Once you’ve considered all consumer behavior factors, it’s time to plan your marketing strategy accordingly. Advertising campaigns, promotional offers, and brand reputation can all influence purchasing decisions. Successful marketing strategies can create brand loyalty and trust, which leads to repeat purchases. On the other hand, negative publicity or incohesive marketing efforts can push your potential customers away.
The WAY you market your product can also affect consumer behavior. This is because different techniques appeal to different audiences.
For example, you may use social media influencers to market to younger generations. If you’re targeting older generations, you’d use traditional print advertisements. Understanding consumer behavior is the first (and most significant) step in developing your marketing strategy. Focusing your marketing efforts on tactics that don’t resonate with your target audience wastes time, resources, and budget.
How to utilize consumer behavior in experiential marketing
Experiential marketing is about creating immersive and engaging consumer experiences that leave your audience wanting more of your brand. Understanding consumer behavior is an essential part of experiential marketing success.
It all comes down to knowing what attracts the right people to your event. If you’re a youthful brand, you’d want to add bright colors, loud music, and hands-on activities to your event. If you’re a clean food brand, consider making all aspects of your event sustainable.
Understanding consumer behavior allows your brand to hone in on your creativity and create out-of-the-box events for your audience that they’ll remember forever.