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Music System

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ASSIGNMENT
OF
MARKETING MANAGEMENT

{ LG MUSIC SYSTEM}

1. CONSUMER BEHAVIOUR PROFILE 2. IDENTIFY THE FACTORS AFFECTING CONSUMER BEHAVIOUR 3. EXPLAIN HOW BUYING TAKE PLACE

SUBMITTED TO SUBMITTED BY:
MS.GURDEEP SILKY ROLL NO. 52 SEC 319 MBA 1ST SEM

INDEX

1) INTRODUCTION TO LG AND LG’S MUSIC SYSTEM

2) CONSUMER BEHAVIOUR PROFILE OF LG MUSIC SYSTEM

3) FACTORS AFFECTING CONSUMER BEHAVIOUR

4) EXPLAIN HOW BUYING TAKE PLACE

5) BIBLIOGRAPHY

• INTRODUCTION TO LG

The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company. LG Electronics has set a new mid-term and long-term vision, aiming to achieve a position as one of the top three electronics, information, and telecommunication firms in the world by 2010.

As such, the company is embracing the philosophy of "Great Company, Great People," whereby only great people can create a great company, and pursuing two growth strategies involving "fast innovation" and "fast growth." Likewise, we seek to secure three core capabilities: product leadership, market leadership, and people-centered leadership.

• CONSUMER BEHAVIOUR PROFILE TO LG MASIC SYSTEM

Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose of goods, ideas or experiences to satisfy their needs and wants.

Consumer have positive attitude towards the lg’s music system and to all its other product. They believe that the LG brand is composed of four basic elements: values, promise, benefits, and personality. And it is this brand identity that turns the consumer's decision of purchasing an LG product into a form of self-expression and self-satisfaction. LG's slogan "Life’s Good" sums up our brand identity perfectly. It represents the quality of life that LG strives to deliver to all its customers and the personality and unique nature of our innovative company.

The stylized image of the human face consists of the letters L and G, the circular nature of the image represents the world, future, youth, humanity, and technology, and the red stands for friendliness and commitment.

Consumer believes that LG Electronics is a major global player in electronics & telecommunications, as it is operating 72 subsidiaries around the world with over 55,000 employees worldwide. It is known by the customers due to its best marketing techniques and the supply of best quality products. Now the LG is furture strengthening core competencies even more to further its reputation as the "Digital Leader" in electronic products and equipment in the digital era.

• FACTORS AFFECTING CONSUMER BEHAVIOUR

LG Music system is one of the most popular music systems in the World. Like other Products, it is also influenced by factors affecting consumer behaviour which are as follow:

1) Cultural Factors

2) Social Factors 3) Personal Factors 4) Psychological Factors

The Influence of these Factors on the behavior of the consumer buying LG Music System is explained below:

1) Cultural Factors: Cultural factors exert the broadest and deepest influence on behaviour of the customer buying LG Music system. Culture represents the set of basic values perceptions, wants, and behaviours learned by a member of society from family and other important. Every group or society has a culture, and cultural influences on buying behaviour may vary greatly from country to country. Culture also includes sub culture and social class which also have the effect on the buying behavior of customer.

2) Social Factors: The Behaviour of the customer buying LG Music system also by social factors, such as the
(i) Groups (ii) Family
(iii) Roles and status. Whether the person is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and purchases via online or mail order) again has an impact on the types of purchases made. We know that certain people are more likely to be imitated than others--e.g., those that are more similar to ourselves based on relevant factors such as age, social status, or ethnic group. It has been viewed that 60-70% of the customers belong to the middle aged group who like to buy the LG music system. And being the highly reputed and some what expensive product it has been highly used by high income group people . and thus it covers the high status people .

3) Personal Factors: Besides the factors explained above, Personal Factors also influence the behaviour of the customer buying LG Music System. Personal Factors includes Age and life cycle stage, Occupation, Economic situation Life Style etc. LG Music System is one of the most trusted brands in lifestyle products in both India and abroad.

4) Psychological Factors: Psychological Factors includes factors such as Motivation, Perception, Learning, Beliefs and attitude and it has great bearing on the buying behavior of the consumer. Attitudes refer to that mental state of the individual which represents his positive, negative or neutral feelings toward an object, concept or idea. Like other Products, consumers have certain perceptions, beliefs about LG Music System which directly influence the purchase of this Music System by consumers.

The Above Explained Factors such as Cultural Factors, Social Factors, Personal Factors and Psychological Factors etc. exert a deep influence on the behavior of the consumer buying LG Music System.

• CONSUMER BUYING DECISION PROCESS The consumer decision process is a road map of consumer's minds that marketers and managers can use to help guide product mix, communication and sales strategies. It consists of various stages, a buyer passes through in making choices about which products and services to buy.. The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. There are five stages of the decision process which consumer or prospective customer undergoes and each stage motivates the buyer to purchase. Only one stage is concerned with actual purchasing.

CONSUMER DECISION PROCESS FOR
LG MUSIC SYSTEM

LG Music System is a consumer durable good and it is a lifestyle product in both India and abroad. There are dozens of different brands available to choose from, and even more types within those brands. The stages through which a consumer passes while taking decision to purchase LG Music System are as follows:

1) Problem recognition 2) Information search 3) Evaluation of alternatives
4) Purchase Decision
5) Post Purchase Behaviour

1. Problem recognition: Problem recognition results when there is a difference between one's desired state and one's actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process. How do you decide you want to buy a particular product or service? It could be that your Music System stops working and you now have to look for a new one, all those MP3s’and CD’s you purchased you can no longer play! So you have a problem or a new need. For high value items like a Music System or a car or other low frequency purchased products this is the process we would take.

2) Information search: So the problem is Music System no longer works and we need to buy a new one. The solution is to go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that? Consumer often go on some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbours who may have the product you have in mind, alternatively you may ask the sales people, or dealers, or read specialist magazines etc. to help with their purchase decision. You may even actually examine the product before you decide to purchase it.

|Total set Awareness set Consideration set Choice set Decision |
|Sony |Sony |Sony |LG |
|LG |LG |LG |Sony ? |
|Samsung |Panasonic |Samsung | |
|Sanyo |Philips | | |
|Pioneer |Samsung | | |
|Philips | | | |
|Kenwood | | | |
|Panasonic | | | |

3) Evaluation of alternatives: The consumer has to consider various alternatives available before going to select a particular brand. Consumers allocate attribute factors to certain products, almost like a point scoring system which they work out in their mind over which brand to purchase. This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. For example, sound maybe better on the Sony product and price on the LG Music System , but price is more important to some consumers.. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the Sony Music System or LG Music System then which one shall it be? It could be that while evaluating different purchase options he may be influenced more by LG Music System and will take decision to buy that brand.
4) Purchase decision: Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. In the evaluation stage, the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred brand. The marketing organization must facilitate the consumer to act on their purchase intention. Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action. The Consumer who has taken decision to buy can purchase a Music System either from the store, the web, or over the phone etc.
5) Post Purchase Behaviour: Once the consumer has purchased and used the Music System, they will evaluate their purchasing decision. They compare the product's performance with their expectations. If the Consumer is not satisfied with Music System he/she has purchased, he/she will experience post purchase dissatisfaction. If the Consumer is satisfied, he/she will tend to say good things about the brand to others. On the other hand, dissatisfied consumer may abandon the product. The Consumer goes through above explained stages while taking decision to purchase a LG Music System.

• Bibliography

1. www.pg-india.com.

2. www.wikipedia.com
3. www.headandshoulders.com
4. Book:
Marketing Management
By: - Philip Kotler, Kevin Keller,
Abraham Koshy, Mithileshwar

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