presentation on consumer motivation with practical study. 2014

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Page 1: presentation on consumer motivation with practical study. 2014

Assignment on

Submitted to: Sir Shiraz Aslam Mian

Submitted by: Aamir Raza Ali

An abstract

Page 2: presentation on consumer motivation with practical study. 2014

Consumer motivation is an internal state that drives people to identify and buy products or services that fulfill conscious and unconscious needs or desires. The fulfillment of those needs can then motivate them to make a repeat purchase or to find different goods and services to better fulfill those needs.

1. Hierarchy of Needso Consumer motivation is linked to Maslow's "hierarchy of needs." According to

this model, motivational drivers have different levels of importance. The most common needs are physiological and concern basic survival--the need for food, shelter and safety. Higher-level needs include social ones (for relationships and love), esteem needs (recognition and status) and self-actualization needs (fulfillment of self). According to Maslow, an individual must meet lower-level needs before being motivated to fulfill higher-level needs.

Motivational Levelso Depending on how important a purchase is to an individual, his motivational

levels may vary from low to high. Influences include familiarity with the purchase, status factors and overall expense and value. Where fulfillment rewards are low, as with groceries, motivation levels are also relatively low and involve little decision-making behavior. Conversely, with a complex, risky and emotionally-charged process such as buying a new house, the drive to achieve the "right" result is high.

o Motivational Behavior

o The behavioral aspect of consumer motivation concerns the actions someone takes before purchasing and consuming goods or services. A person might do a lot of research--evaluating alternatives, testing and sampling--before making a selection. She might decide to buy something based on which goods or services most closely meet and satisfy motivational wants and needs. Marketers aim to gain the most impact and eventual sales by linking their products and services to clearly defined consumers needs and by understanding what motivates people to buy.

o

Motivational Influenceso Motivational levels differ greatly between individuals and are influenced by

many external variables. These include the social value of making the "right"

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decision, beliefs about brands and alignment of brand values and personal values. If other people are involved in the decision, their motivation also affects the behavior of the primary consumer.

Accessing Motivation

Companies and marketers use a number of different tools to help them understand consumer motivation in relation to their products and services. This may help them orient their markets according to different buyer motivation. Marketers use pre-purchase and post-purchase focus groups, one-to-one interviews and online or postal surveys to develop their understanding of consumers' motivational drivers.

Introduction

Motivation refers to the inner state of arousal that leads people to behave the way they do. It occurs when a need is aroused within the consumer that they have to satisfy. If that need, is not satisfied then the consumer will undergo a certain amount of tension – the greater the need the more intense is the state of tension. This drives the consumer to engage in relevant activity to achieve their goal and satisfy the need. Many factors can affect motivation, including personal relevance, perceived risks and a consumer’s personal values. The outcomes of high motivation include goal-relevant behavior, high-effort information processing and high levels of involvement.

Definitions:

“Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal”.

motivation results from the interaction of both conscious and unconscious factors such as the (1)power of desire or need, (2) incentive or reward value of the goal, and (3)expectations of the individual and of his or her peers. These factors are the reasons one has for behaving a certain way. An example is a student that spends extra time studying for a test because he or she wants a better grade in the class.

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Motivation as a physiological force:

Marketers use the trick “motivation” to influence the consumers to their products and services. They give different satisfaction able things to consumers which they wants fulfill. There are some factors which consumers want to fulfill them and get satisfaction.

Needs:

Every individual has needs. Some are innate and some are acquired. Innate needs are physiological, they include the needs for food, water, air, clothing, shelter and sex etc. because they are needed to sustain biological life, and the biogenic needs are considered primary needs or motives.

Acquired needs are needs that we learning response to our culture or environment. These may include needs for self-esteem prestige, affection, power, and learning, and relationship, friendship. Because acquired needs are generally psychological they are considered secondary needs or motives.

Goals:

Consider your strengths and weaknesses. A goal is not realistic if it is not achievable. Although you may want to set product goals that are highly ambitious, they will be nothing more than pipe dreams if you can't achieve them. Take some time to consider how fast a writer you are, how experienced you are with the project at hand, how well you know the material and how much research you will have to do. Think about how much you can comfortably write in one sitting, and how many sittings you can comfortably fit into one day. 

Rational versus emotional motives

In marketing term rationality means that consumers select goals based on totally objective criteria, such a size weight price or miles per gallon, in rationality, person makes his her decision on basis of his own experience, learning, knowledge thinking etc. whereas emotional motives means selection of goals according to personal or subjective criteria like pride fear affection or status. In emotional motives consumers often makes their decision on the bases of others like advertisement, friend’s advice attraction able things and others.

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Dynamics of motivation

There are some reasons why needs driven human activity never ceases include the following:

Needs are never fully satisfied:

Most human needs are never fully or permanently satisfied. For example most people regularly seek companionship and approval from others to satisfy. For example a person may satisfy a need for power by working as an administrative assistance to a local politician but this various taste of power may not sufficiently satisfy her need.

New need emerge as old needs satisfied:

Some motivational theorists believe that a hierarchy of needs elicits and that new higher order needs emerge as lower order needs are fulfilled. For example a man whose basic physiological need food house etc are fairly well satisfied may turn his efforts to achieving acceptance among his neighbors by joining their political clubs and supporting their candidates.

Goal influence success and failure:

A number of researchers have explored the nature of the goals that individuals set for themselves. Broadly speaking, they have concluded that individuals who successfully achieve their goals usually set new and higher goals for themselves. That is they raise their level of aspiration. This may be due to the fact that their success in reaching lower goals makes them more confident of their ability to reach higher goals. In contrast, those who do not reach their goals sometimes lower their levels of aspiration. Thus goal setting is sometime is a function of success and failure.

Maslow hierarchies of needs

Physiological needs

Physiological needs are the physical requirements for human survival. If these requirements are not met, the human body cannot function properly and will ultimately fail. Physiological needs are thought to be the most important; they should be met first.

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Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements while maintaining an adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may also shape said instinct

Safety needs

With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety – due to war, natural disaster, family violence childhood, abuses, etc. – people may (re-)experience post traumatic stress disorder. In the absence of economic safety – due to economic crisis and lack of work opportunities – these safety needs manifest themselves in ways such as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, etc

Love and belonging

After physiological and safety needs are fulfilled, the third level of human needs is interpersonal and involves feelings of belongingness. This need is especially strong in childhood and can override the need for safety as witnessed in children who cling to abusive parents. Deficiencies within this level of Maslow's hierarchy – due to hospitalist, neglect sunning, keeping out etc. – can impact the individual's ability to form and maintain emotionally significant relationships in general, such as:

Friendship Intimacy Family

Esteem

All humans have a need to feel respected; this includes the need to have self-esteem and self-respect. Esteem presents the typical human desire to be accepted and valued by others. People often engage in a profession or hobby to gain recognition. These activities give the person a sense of contribution or value. Low self-esteem or an inferiority complex may result from imbalances during this level in the hierarchy. People with low self-esteem often need respect from others; they may feel the need to seek fame or glory. However, fame or glory will not help the person to build their self-

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esteem until they accept who they are internally. Psychological imbalances such as depression can hinder the person from obtaining a higher level of self-esteem or self-respect.

Self-actualization

"What a man can be, he must be. This quotation forms the basis of the perceived need for self-actualization. This level of need refers to what a person's full potential is and the realization of that potential. Maslow describes this level as the desire to accomplish everything that one can, to become the most that one can be. Individuals may perceive or focus on this need very specifically. For example, one individual may have the strong desire to become an ideal parent. In another, the desire may be expressed athletically. For others, it may be expressed in paintings, pictures, or inventions. As previously mentioned, Maslow believed that to understand this level of need, the person must not only achieve the previous needs, but master them.

Advantages and disadvantages of motivation

Motivation provides us with energy to purse outcomes. The energy may come from an inside source or an outside source. These sources can be defined as either extrinsic or intrinsic motivation. Extrinsic motivation lies

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outside of the individual and the task being performed, whereas, intrinsic motivation lies within the individual and task.

Advantages of Intrinsic Motivation:

Long-lasting

Self-sustaining

Focuses on the subject rather than the reward or punishment

Disadvantages of Intrinsic Motivation:

Slow to change the behavior

Requires lengthy preparation and special attention

A variety of approaches may be needed to motivate students

Advantages of extrinsic motivation:

Quickly changes behaviors

Requires little effort or preparation

Requires little knowledge of the student

Disadvantages of Extrinsic Motivation:

Provides distraction from learning

Difficulty in determining appropriate rewards and punishment

Ineffective after a long period of time

Once the reward is removed, motivation is lost

Both motivational types can influence the learning behavior of a student. Research suggests that extrinsic rewards can have a negative impact on intrinsic motivation; therefore, extrinsic methods should be used carefully. 

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Practical study of

Unilevers

History:

Unilever is a European based company with headquarter in London. And their shares are quoted in many stock exchanges of European countries. They deal in all kind of products from animal products to human products. Unilever has their subsidiaries in over 80 countries.

William lever commences business in England as a grocer. He establishes lever brother in 1827 in England. Sunlight was their first product. And in other hand, margarine uni established his company in Netherlands in first half century of 18th century. Both then combined their business later after the decline of their business. Then they named their company Unilevers brothers.

When you are one of the largest consumer goods company in the world, the importance of effective knowledge management takes a new dimension. It plays a critical role in the process of building individual customer relationship. The quality of direct interaction experiences can have a lasting impact on consumers and those within their social networks.

In North America, the Unilever consumer contact center handles approximately3.5 million contacts annually in support of hundreds of products within over 90 brand families. On any given day—at any given minute. Unilever contact center representative are working toward the end goal of delivering world-class service to its consumers.

Research and development

Unilevers

Packaging: Packaging is an essential part of the total brand offering which is critical to the success of FMCG companies. The battle for the "shelf" and for the

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consumer’s attention will be won or lost through the effectiveness of our packaging. It can also drive tremendous value for both the companies’ top-line and it's bottom-line. 

Regulatory: Regulatory Affairs helps to ensure we can get Unilever's products into the market and keep them there. We work with R&D team members and Legal and Nutrition Advisors to ensure that our products meet the specific requirements of the countries and also with the country authorities to obtain Regulatory approvals to market our products. We help to guide project teams through Regulatory obstacles & opportunities to ensure a clear path into the market place with maximum impact

Consumer Technical InsightsThe Consumer Technical Insight role is to investigate how a consumer ‘need’ or ‘desire’ translates into a product.  What does it really mean in scientific terms to have shiny hair? When consumers say that they want thick bleach, what do they really mean? When they ask for tastier, spicy soup, what do they want? If you change the packaging of a deodorant can, can you predict how consumers rate the product?

Processing engineering development Unilever operates globally over a thousand processing units in approximately three hundred factories. In order to convert raw materials into products, a vast array of process technologies are applied, like drying, granulation, freezing, dispersion, filtration, grinding, neutralization, pasteurization, forming, extruding, dosing and homogenization. Process development within R&D is the link between product design and factory process ability.

Process Development is important in Product Technology (e.g. Structured Liquids), Category Innovation (e.g. new formats) and Supply Chain strategy (e.g. minimization of plant complexity). Accordingly, R&D Process Development interacts closely with global and other regional teams.

Product,AppraisalProduct appraisal/evaluation is where in-vitro & in-vivo technical tests are conducted to perfect and verify product performance and the related claims we make. Unilever’s products are evaluated to ensure that we deliver products that meet consumer needs in the everyday environment. So when we make hard hitting claims, we know that our products really so deliver on these promises. 

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Unilever’s Product Appraisal department works closely with the formulation design and marketing teams, using global best practices, to deliver a world class view of our products

Measurement,SciencesMeasurement Science is the core scientific and research base of the R&D function. The main expertise of Measurement Science is the application of latest advancement technology and globally endorsed Unilever standard methods to analyze all the ingredients and raw materials used in laundry detergents, machine and dish wash, skin care and food products.

The analytical information is used for quality control, storage stability clearance; pilot and main plant trial monitoring and other project related matters as well as for competitor product analyses. Additionally, tools are in place to identify new technology, which with the help of other global technology experts, can be linked to competitor patents and claims.

Formulation,DevelopmentAs a Formulation Development Technologist, you will work in a diverse and exciting environment on various regional and local projects.  Whether the product is a deodorant, shampoo or ice cream, our role is to make the marketing idea come to life ensuring all the sensorial properties (taste, aroma, appearance, feel, and smell) excite and delight the consumer.  This is done through a good understanding of the science of products and how this can be applied to give benefits for the consumer.Regular interaction is required with Chefmanship, Marketing, Nutrition & Health, Packaging, Regulatory, consumer marketing & Technical Insights, supply management, process engineering and Technical Management teams in the relevant countries. 

Packaging,Development 

Packaging is an essential part of the total brand offering which is critical to the success of FMCG companies. The battle for the "shelf" and for the consumer’s attention will be won or lost through the effectiveness of our packaging. It can also drive tremendous value for both the companies’ top-line and it's bottom-line.  A packaging professional’s role is highly complex, very diverse and multi-functional which spans the entire development process and has many business and technical connections. This entails developing the best structural packaging design concepts for the brands, and then

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engineering these into workable formats using the latest technologies. Key internal interfaces for the packaging team are with Supply Chain and Marketing, and externally with raw material, equipment and packaging suppliers. 

Regulatory Regulatory Affairs helps to ensure we can get Unilever's products into the market and keep them there. We work with R&D team members and Legal and Nutrition Advisors to ensure that our products meet the specific requirements of the countries and also with the country authorities to obtain Regulatory approvals to market our products. We help to guide project teams through Regulatory obstacles & opportunities to ensure a clear path into the market place with maximum impact. Externally to the Regulators, we are Unilever's face, representing the company's views & positions on technical aspects & issues and communicating the impacts back into the business. We are therefore key to growing Unilever's competitiveness by ensuring compliance of our products, facilitating speed to market and creating the Regulatory landscape that will allow Unilever to land it's outstanding innovations.

Consumer,Technical,InsightsThe Consumer Technical Insight role is to investigate how a consumer ‘need’ or ‘desire’ translates into a product.  What does it really mean in scientific terms to have shiny hair? When consumers say that they want thick bleach, what do they really mean? When they ask for tastier, spicy soup, what do they want? If you change the packaging of a deodorant can, can you predict how consumers rate the product?

Consumer Technical Insights leads and owns the link between the consumer and technology by obtaining feedback from consumers through consumer product evaluation, observation of consumer habits and sensory research.  In short, how can we create that do their job and enhance the consumer experience? 

Processing,Development,(Engineering) 

Unilever operates globally over a thousand processing units in approximately three hundred factories. In order to convert raw materials into products, a vast array of process technologies are applied, like drying, granulation,

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freezing, dispersion, filtration, grinding, neutralization, pasteurization, forming, extruding, dosing and homogenization. Process development within R&D is the link between product design and factory process ability.

Process Development is important in Product Technology (e.g. Structured Liquids), Category Innovation (e.g. new formats) and Supply Chain strategy (e.g. minimization of plant complexity). Accordingly, R&D Process Development interacts closely with global and other regional teams.

The key interface is with Supply Chain who are the receivers of process specifications. The main working areas in this interface involve the execution of plant trials; development and maintenance of process and equipment specifications, which are the blueprints for new processing investments; and the input into manufacturing technology strategy. 

In addition Process Development will interact with Regional Marketing and Finance teams within project teams to grow and optimize product mixes.

Product,AppraisalProduct appraisal/evaluation is where in-vitro & in-vivo technical tests are conducted to perfect and verify product performance and the related claims we make. Unilever’s products are evaluated to ensure that we deliver products that meet consumer needs in the everyday environment. So when we make hard hitting claims, we know that our products really so deliver on these promises. 

Unilever’s Product Appraisal department works closely with the formulation design and marketing teams, using global best practices, to deliver a world class view of our products. 

Measurement,SciencesMeasurement Science is the core scientific and research base of the R&D function. The main expertise of Measurement Science is the application of latest advancement technology and globally endorsed Unilever standard methods to analyze all the ingredients and raw materials used in laundry detergents, machine and dish wash, skin care and food products.

The analytical information is used for quality control, storage stability clearance; pilot and main plant trial monitoring and other project related

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matters as well as for competitor product analyses. Additionally, tools are in place to identify new technology, which with the help of other global technology experts, can be linked to competitor patents and claims.The MS team supports mainly formulation design in analysis of ingredients and products during development stages as well as product benchmarking exercises. It also gives advice and technical support to R&D, plants and corporate bodies.

ChefmanshipAs an Innovation chef, you will be required to draw on your extensive knowledge of food trends: regional and global; fusion of flavors; and consumer needs.

You will work closely with the teams of Food Technologists, Nutrition Scientists, Brand Development and Brand Building Marketers and Consumer Marketing and Technical Insight team members. The first step in every project is for the innovation chef is to create the ‘from scratch’ benchmark, which we as a team match in the form of an industrial product.

The innovation chef supports the technologists throughout the development process, assisting with taste sessions, formulation and recipe development, and ensuring that the make-up instructions on the artwork are correct.

Nutrition,and,HealthThis is an exciting scientific area within R&D, where within AMET the function operates either regionally or locally. Nutritionists mainly support the introduction and maintenance of Nutrition and Health related product-innovations in the local country as well as ensure nutritionally sound communication and marketing of food products with a health proposition.  They represent Unilever in the external world of nutrition and build networks with key influencers of nutrition within the local country or regionally.

Nutritionists within the business mainly interface with Marketing, Corporate Communications, Product Development and Regulatory Affairs.  Nutritionists also network globally with the wider community of Unilever Nutritionists to share best practice, gain knowledge and keep up to date with the latest developments in science and nutrition

Vision & strategy

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Unilevers

it is a global food and consumer goods giant that serves over 2 billion consumers every day in more than 180 countries around the world, but Unilever’s global management team is convinced that the key to their future success lies in 16 emerging markets, of which Pakistan is one.

Vision of Unilevers:

We help people around the world meet everyday needs for nutrition; hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.

Strategy: In 2009, we launched what we call The Compass – Unilever’s strategy for sustainable growth. At the heart of that vision is our philosophy of working to create a better future every day for our consumers and the communities in which we operate.

Another key element of our strategy is our aim of doubling the size of Unilever while reducing our impact on the environment. It’s a goal we’re seeking to

achieve by developing new ways of doing business through which we can minimize our direct impact.We’re also working with our suppliers, consumers and the retailers who sell our brands to improve their sustainability credentials too.

Priorities and principles

Unilever is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life. 

Five key priorities provide the foundation for our brand’s campaigns. Read some examples of how different brands are upholding these principles.

Strategy in Pakistan:

About 56% of Unilever’s revenues come from emerging markets; a number that Manwani says could rise to as high as 75% over the next few years. In

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Pakistan, the company operates two subsidiaries, Unilever Pakistan and Unilever Pakistan Foods, both of which are publicly listed on the Karachi stock exchange. For the year 2011, the company’s Pakistani subsidiaries earned combined gross revenue of over Rs73 billion, or about 1.3% of the global total for Unilever.

Growth in Pakistan is significantly higher. While Unilever’s global revenues grew by around 5%, revenues in Pakistan grew by a much stronger 9.9%, even when taking into account the rupee’s depreciation against the euro, the company’s global reporting currency. In Pakistani rupees, gross revenues of both companies grew by nearly 17%.

Swot analysis; Strength:

Unilevers is a big multinational company. Sound and experienced management. Management of product is familiar with the philosophy and

demographic of customers. Strength brand image and brand quality. Market leader as Unilevers has 43% of market share. Large sale force.

Weakness:

Loss of some product share as Rexona against lux. Low market share in KPK.

Opportunities:

High rate of population growth. Rising literacy. New market segmentation and fashion growth.

Threats:

Possible increase of shares of nestle and others.Rising inflation, which cause of low power of purchasing?Profit decrease due to low currency rate of Pakistan.

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Conclusion:

Thus Unilevers is a one of the greatest company in the world. It has its business in more than 80 countries. There are few countries where Unilevers depends to grow their profit, Pakistan is one of them. It has strong brand image, strong business in stock markets. Pakistan gives 1.3% of profit from total profit. They hope that they will increase this ratio up to 3.5 in next few years.

Recommendations:

Although Unilevers is multinational company yet it can increase their business more in Asian especially south Asian not in Europe. They should decrease their prices so that they have competitive advantage in market against nestle etc. they should increase their business activities in backward areas especially in KPK.

References:

Aamir Raza Ali, Allama Iqbal Open University, Islamabad, Pakistan.

www.unileverpakistan.com

www.unilever.com

Joseph wisenblit.