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)
Tension
Drive
Behaviour
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
Rational Motives
Erickson : Surprising small
Lifebuoy: kills germs you cannot see
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
Basic
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
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?
How motivation is useful in marketing? unconscious motivation Motivating with Money Provide Other Incentives Implement a Loyalty Program Enhance Perceived Risk Arouse Consumers Curiosity
Unconscious Motivation
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 perceived risk increases search Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk
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.