When and why a firm embarks on the idea of a new product development process? Discuss. Explain with reference to any consumer durable company of your choice and the reasons there of.

 A consumer is an individual or organization that purchases goods or services for personal or commercial use. Consumers can be divided into various segments based on demographic, psychographic, geographic, and behavioral factors. Understanding the behavior of consumers and their buying patterns is crucial for marketers as it helps them develop effective marketing strategies to meet the needs and wants of their target audience.

The importance of understanding consumer behavior for marketers:

1. Develop Effective Marketing Strategies: Understanding consumer behavior helps marketers to develop effective marketing strategies that resonate with their target audience. By studying consumer preferences, marketers can tailor their product features, pricing, promotion, and distribution strategies to meet the needs and wants of their target audience. For instance, a marketer of a premium smartphone may target consumers who value cutting-edge technology and premium features, while a marketer of a budget smartphone may target consumers who prioritize affordability and basic features.
2. Increase Sales: Marketers who understand consumer behavior are more likely to increase their sales. By understanding consumer needs and preferences, marketers can develop products and services that meet consumer needs and preferences, leading to increased sales. Additionally, by studying consumer buying patterns, marketers can develop pricing and promotion strategies that appeal to their target audience, leading to increased sales.
3. Build Brand Loyalty: Understanding consumer behavior also helps marketers to build brand loyalty. By developing products and services that meet the needs and preferences of their target audience, marketers can build a loyal customer base that is more likely to repurchase and recommend their products to others. Additionally, by studying consumer behavior, marketers can develop marketing campaigns that appeal to the emotions and values of their target audience, building stronger connections between consumers and their brand.

Illustration with an Example:

Let's consider the example of a fashion retailer that wants to launch a new line of clothing for women. The retailer wants to understand the behavior of its target audience to develop effective marketing strategies. Here are some of the ways the retailer can benefit from understanding consumer behavior:

1. Develop Products That Meet Consumer Needs: By understanding the preferences of their target audience, the fashion retailer can develop clothing that meets their needs and preferences. For instance, if the target audience values comfort and practicality, the retailer may focus on developing clothing that is comfortable and functional.
2. Pricing and Promotion Strategies: By studying the buying patterns of their target audience, the fashion retailer can develop pricing and promotion strategies that appeal to them. For instance, if the target audience is price-sensitive, the retailer may offer discounts or promotional offers to encourage them to make a purchase.
3. Build Brand Loyalty: By studying the behavior of their target audience, the fashion retailer can develop marketing campaigns that resonate with them. For instance, if the target audience values sustainability, the retailer may develop a marketing campaign that highlights the sustainable materials and ethical manufacturing practices used in their clothing line. This can help build brand loyalty among consumers who value sustainability.

In conclusion, understanding consumer behavior is vital for marketers as it helps them develop effective marketing strategies that meet the needs and preferences of their target audience. By understanding the behavior of consumers, marketers can develop products and services that meet consumer needs, develop pricing and promotion strategies that appeal to their target audience, and build brand loyalty.

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