Factors that have an influence on Consumer behaviour

4175 words (17 pages) Essay

1st Jan 1970 Marketing Reference this

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Barry Champion is an enthusiastic cinemagoer and film enthusiast, has slowly created what may be many people’s dream that is to own his small group of cinemas. He started by purchasing a very run-down cinema near Bakewell in Derbyshire which had been family owned. Originally Victorian, it had not had a lot of money spent on it, in terms of upkeep or modernization. Barry Champion spent two years transformed the two hundred seater ramshackle Royal Cinema in Bakewell,into a cosy and well patronized local cinema, new seating, a new payment area, a new sweets kiosk, and splitting the original single auditorium into two, as an upstairs and down stairs cinema showing a wide range of movies, transformed the Royal, after the refurbishment he won the Prestigious Best Rural Cinema award presented by The British Academy of Film and Television Arts(BAFTA).After the Royal he bought the Rex in Skipton and transformed it to a successful business.

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Recently he completely the purchase of his third rural cinema, the Plaza. This Cinema is in a small industrial town called Elderwood in the West. It currently seats 250 maximum with both a downstairs stalls area and small gallery upstairs. This business currently it’s not performing well so Barry Champion hired a Market consultant to research and investigates the markets for the plaza.

The Plaza Cinema in Elderwood is a similar business, in a new environment but, also possibly a very different business. My advice for Barry Champion is to analyzing consumer markets, to use Porters Generic Strategy, Ansoffs Matrix Strategy, Marketing mix strategy in opening and developing his newly acquired cinema business.

When analyzing consumer behavior Barry Champion should address the following;

WHAT INFLUENCES CONSUMER BEHAVIOR;

Consumer behavior;

The study of how individuas, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experience to satisfy their needs and wants.

When analyzing consumer buying behavior it’s important to analyze carefully the influences of it, where consumer buying behavior is influenced by factors such as cultural, social, and personal factors.

CULTURAL FACTORS;

Culture is the fundamental determinant of a person’s wants and behavior, where consumer behavior influenced by culture, subculture and social class.

Since culture is differ from one society to another it’s important to consider set of values, perceptions, preferences, and behavior of people who are potential customers of our newly business.

Subculture is a smaller group of culture that includes nationalities, religions, racial groups and geographic regions. It’s essential to consider subculture when opening new business because it provide particular identification and socialization for their members which will enables the company to design specialized marketing programs to serve them.

Social classes are from divisions in a society, which are hierarchically well thought-out and whose members share related values interest and behavior. Identifying social classes will help The Plaza Cinema in Elderwood designing its services accordingly to social classes of its customers based on occupation, income, wealth, education and value orientation.

Understanding social classes also will enable the company to know what kind or types of movies are most preferred by a certain social classes.

SOCIAL FACTORS;

Social factors are other influences of consumer buying behavior, where social factors such as reference groups, family, social roles and statuses are considered;

Reference groups consists all group that have direct or indirect influences on his/her attitudes or behavior, where group have direct influence are called membership groups such as family, friends neighbors and co-workers. Understanding social factors will enable to know who are the real influencers, after understanding it will be helpful for company to create an environment which can attract customer to come and watching movies at The Plaza Cinema in Elderwood.

Family is the most influencer of customer buying behavior, when a family consists of parents and children among themselves one can be an influence of others to go to the cinema, let’s say children are the ones who influence the family to come to the movie theatre.If so the company must conduct a research to find out what kind of movies are suitable for children to watch together with their parents and some other activities that will make the family enjoying when they came to the theatre.

Roles and statues is another influencer of customer behavior due to that the company must be aware of it, because some of the customers choose product or services that reflect and communicate their role and actual or desired status in the society.

PERSONAL FACTORS;

These are factors influenced by personal characteristics, personal factors include the buyers age and stage in the life circle; occupation and economic circumstances; personality and self-concept; and lifestyle and values. It’s very imperative to know personal factors because many of these characteristics have a very direct impact on consumer behavior.

Age and stage in the life cycle;

Customer buying behavior is related to number of age, family life circle, gender.Oftenly customer buying behavior depend on age,gender.Most of youth(teenagers)aged between 15-25 they most prefer romantic and violence movies, compared to adult customers who prefer adventures movie, being able to know personal factors associated with your customers will give the company one step ahead.

Occupation and economic circumstances;

It’s vital to know occupation and economic circumstances of your customers since people buy goods or services depending on economic circumstances (income level).This can facilitate the company to redesign, reposition and reprice their service by considering occupation and economic welfare of people of that area.

Personality and self concept;

Personalities characteristic are differing from one person to another also consumers choose and use services that have a brand personality consistent with their own actual self-concept (how one views oneself).

Lifestyle and values;

Lifestyle is a person’s pattern of living in the world as expressed in activities, interests and opinions; lifestyle portrays the whole persons interacting with his or her environment. In order the business to become successfully the company must conduct a research on relationship between products or services and the lifestyles of customers they target.

(Kotler & Keller, 2006)

PORTERS GENERIC STRATEGIES;

I advise them to use Porter generic strategies (Cost Leadership strategy) because of the following reasons;

Since the market is surrounded by many competitors it is better to use this strategy because Plaza Cinema will offer its service at average industry prices and earn a profit higher than that of its competitors and gain more market share.

The company can have access to the capital required to make a significant investment in providing its services.

I advise them to use Differentiation strategy due to the following reason;

After Barry Champion bought that theatre from the previous owner he made some improvement for the theatre in order to offer unique attributes (differentiation strategy) that are valued by customers and customer will perceive to be better than or different from others which will enable them to charge premium price.

NCC Consumer Behavior Notes

ANSOFFS MATRIX STRATEGY;

I advise them to use Product development strategy because it will help them to offer quality service and be ahead of competitors.

Source: (Tutor2u, 2010)

MARKET PENETRATION STRATEGY

I advise Barry Champion to consider Market Penetration Strategy because it will help the company to gain more market share with its current markets.

MARKET DEVELOPMENT STRATEGY

By considering Market Development Strategy Barry Champion he will be able to decide whether he can find or develop new markets for its currents products.

PRODUCT DEVELOPMENT STRATEGY

It’s important for Barry to understand Product development strategy because it will help him to decide whether he can develop new product or service of potential interest to its current markets.

DIVERSIFICATION STRATEGY

This strategy will help him to review opportunities to develop new products or service for new markets

MARKETING MIX STRATEGY;

Product/Service-My advice for Plaza Cinema is to change technical equipments and bring new ones.

Before Barry Champion bought the Plaza they used to show foreign movies with English subtitles but in order to satisfy customer needs it’s better to change those foreign movies into local language(English).

Also there are toilet problems which required work to bring them up to date and meet Healthy and Safety regulation.

In terms of price my advice for them is to use penetration price strategy which will help to attract many customers and acquire more market share than competitors.

In order to creates awareness to potential customers of Plaza Cinema they must promote via well known media, online advisement.

Selling of tickets will take place via online for those who could not manage to come to our shop, nearby local shop such as supermarkets visited by many people.

(Kotler & Keller, 2006)

TASK 2

It’s very important for Barry Champion to understanding Consumer behavior in order to know the Decision Making Unit (DMU) and Decision Making Process of his potential customers because they play an important role in understanding how consumers make their buying decisions.

Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services.

Consumer behavior

Decision Making Unit-Is a group of people who directly or indirectly influences the purchase of product or service.

Decision making unit includes all the members of the business who play important roles in the purchase decision process;

Initiators-These are the people in the organization who request that something must be purchased.

Users-These are the people who use service, in order the company to offer quality service they must depend on customers to help them define service requirement.

Influencers-These are the people who influence the buying decision. It’s important for Barry Champion to pay attention on influencers because they will help him in define specifications and also provide information for evaluating alternatives.

Deciders-These are people who decide on product on requirement, so Barry Champion must carry out a research in order to know what is required by its customer, by doing that he will be able to deliver quality service to the market.

Approvers-People who authorize the proposed actions of deciders or buyers. In order the company to offer quality service and maintain it for a long period, they need someone who can approve the quality of service before reach to the customers.

Gatekeepers-These are people who have the power to prevent information reaching to the members of buying center. Most of Cinemas they facing security problems such as people violence, thefts and so on. In order to prevent those problems there must be a good communication between them and security measures so customers can be assured security for them and their properties when they came to the Cinema to watch movie.

Decision making unit also include people outside the target customer organization such as marketing channel, technical advisors, consultants, government officials. It very important for Barry Champion to get along with these people for example government officials, as we know in every country or state they have their own rules and regulation concerning Cinemas by considering them company can operate under rules and regulation of the country or state.

(Robbins & Coulter, 2005)

Decision Making Process-Is the process of making a choice between a numbers of options and committing to a future course of actions.

The importance of understanding the decision making unit and decision making process of his potential customers and those who used to attend the plaza before he purchased it;

It will help the company to know what kind of service (movies) customers preferred to watch during the weekdays or weekends.

Another importance is that, it will help the company to know how customers they can buy that service (via online, local shops or via distributors).

Understanding decision making unit and decision making process will help Barry Champion to find out why (what influence them) people come to Plaza Cinema to watch movies.

Also will help him to know about his/her competitors.

It will make Barry Champion to be aware of the complexity of human motivation in general and consumer motivation in particular.

It will enables Barry Champion to appreciate marketing activities more by helping marketing people to analyze how individual advertisements and commercials, sales presentations and service designs attempt to persuade consumers.

It will makes Interact better consumers by giving Barry Champion a better understanding of own decision processes.

(NCC Consumer Behavior Notes)

Interact company can gather and obtain information of his potential customer from;

Talking with the current customers.

Visiting customer in their homes or offices.

Information from our staff/distributors who work directly with customers

Searching on the competitor websites to see their customer list.

Questionnaires at your showroom.

Conduct market research on customers to explore their habits and behaviors

Social surveys by social organizations.

Articles in newspaper.

Income and expenditure levels from statistics office.

Marketer’s researchers.

Via the web.

Conducting a customer survey by delivering questionnaires.

Get customers comments via the web;

Comments via websites are a good way for a company to obtain information, where company websites can be used as a place for customers to add their comments and opinions about the service provided by the company. This can be done by set a comment form linked with a company email system.

Conducting a survey;

This is among the best way a company can use to gather and obtain accurate information by using people who have the skills to do that job such as independent researcher or a market research company.

(Kotler & Keller, 2006)

TASK 3

COMPETITOR ANALYSIS is the process of identifying the performance and marketing strategy of competitive brand or products in the market place. In to plan an effective market strategy marketers need to know about the competitive environment and find out all they can about competitor products, prices, communications channel quality, and services so as to determine areas of competitive advantages and disadvantages.

Source; Answers Corporation (2010)

http://www.answers.com/topic/competitor-analysis , date 20/10/2010

CENTURY CINEMAX;

Is the newly cinema theatre in Dar-es-salaam Tanzania, three screens, including the largest in East Africa and all with Dolby Digital surround sound.

In order to do competitor analysis on Century Cinemax,

SWOT ANALYSIS and MICHAEL PORTER FIVE FORCES are the best models which can give a clear picture about CENTURY CINEMAX;

First let look on SWOT ANALYSIS;

SWOT ANALYSIS is a business model used to analyze what are the strengths, weaknesses, opportunities and threats of your competitors competing in the same market.

Source; HRM Advice (2008)

hrmadvice.com/…/hr-swot-examples.html, date 23/10/2010

The followings are Strengths of Century Cinemax;

Location of Century Cinemax is amongst its strengths, Century Cinemax located at Mlimani city the place crowded with a lot supermarket (Shoprite), pubs, bankies and many business offices, and due to this many people are visiting that area so it’s easy to know what is going on at Century Cinemax.

The price is affordable to all kind of people not to a certain class of people so anyone can go there.

The competition it’s not big enough compared to other countries where there a lot of Cinema theatre.

They have big screen which you can’t find anywhere all over east Africa.

High quality sound technology (Dolby Digital sound) which makes them reliable on providing quality service.

They have big theatre which can handle a large number of customers.

Weakness of Century Cinemax;

Undifferentiated services with other companies which offering the same service as Century Cinemax.

They don’t have enough (Advertisement) promotional activities so it’s difficult for someone who is outside of the city or don’t make frequently visit at Mlimani City to know what is going on there.

Opportunities of Century Cinemax;

Since the Cinema industry it’s not yet bigger Century Cinemax can acquire a lot of market share without a big fight.

Century Cinemax is a new cinema company because of this many people will have desire to come see/experience the difference.

Threats of Century Cinemax;

Entrance of competitor is a big threat to Century Cinemax because they will have to fight for little market share since Cinema Industry it’s still growing.

Price war is another threat when other companies on the market decide to lower their price in order to attract more customers.

Introduction of new, innovative service also is a threat because they will be able to match with Century Cinemax so customers will have two options where to go when they want to watch movies.

(NCC Consumer Behavior Notes)

TASK 4.

MARKETING PLAN

Is a written document that summarizes what the marker has learned about the market place and indicates how the firm plans to reach its marketing objectives. Marketing plan contains the following executive summary and table of contents, situation analysis, marketing strategy, financial projections, and implementation control.

EXECUTIVE SUMMARY

The Plaza is a cinema in a small ‘once’industrial town called Elderwood in the West Yorkshire. It currently seats 250 maximum with both a downstairs stalls area and a small gallery upstairs. Over the last few years the patrons have dwindled, so that the largest audience that attends now gathers to watch foreign films with English sub-titles.

SITUATIONAL ANALYSIS

The Plaza was currently purchased by Barry Champion from previous owner hired the consultant to investigate the markets for the Plaza who doesn’t have the cash or capital investment to put into the business. After he bought the Plaza he hired the marketing consultant to research and investigates the market for the Plaza.

SWOT ANALYSIS

Its show the strengths, weakness opportuties, threats of the company.

The followings are Strengths of Century Cinemax;

Location of Century Cinemax is amongst its strengths, Century Cinemax located at Mlimani city the place crowded with a lot supermarket (Shop rite), pubs, banks and many business offices, and due to this many people are visiting that area so it’s easy to know what is going on at the company.

The price is affordable to all kind of people not to a certain class of people so anyone can go there.

The competition it’s not big enough compared to other countries where there a lot of Cinema theatre.

They have big screen which you can’t find anywhere all over east Africa.

High quality sound technology (Dolby Digital sound) which makes them reliable on providing quality service.

They have big theatre which can handle a large number of customers.

Weakness of Century Cinemax;

Undifferentiated services with other companies which offering the same service as ours.

They don’t have enough (Advertisement) promotional activities so it’s difficult for someone who is outside of the city or don’t make frequently visit at Mlimani City to know what is going on there.

Opportunities of Century Cinemax;

Since the Cinema industry it’s not yet bigger compared to others countries Century Cinemax can acquire a lot of market share without a big fight.

Century Cinemax is a new cinema company because of this many people will have desire to come see/experience the difference.

Threats of Century Cinemax;

Entrance of competitor is a big threat to Century Cinemax because they will have to fight for little market share since Cinema Industry it’s still growing.

Price war is another threat when other companies on the market decide to lower their price in order to attract more customers.

Introduction of new, innovative service also is a threat because they will be able to match with Century Cinemax so customers will have two options where to go when they want to watch movies.

MARKETS NEEDS;

When a company enters to the market first they have to know the market needs. Understanding market needs can help the company to come out with well planned strategies to satisfy their customers and win the market. Marketers must consider the following when they evaluate market needs

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Quality service-In every markets people they most prefer quality service, nobody can spend on product or service of low quality or can not satisfy his or her needs, so its important for the company to offer quality service to the market.

Well design service-People are differ from one to another’s in order the company to satisfy both customers they can collect information from them so company can design its services by using information from customers. For example a company can conduct a research to customer of different ages to know what kind of movies they like so when they are design hey will do it according to customer needs.

Customer service-The company must serve well the customer so they can be loyal and feels they are part of company, in order to do this company must hired people who knows how to serve customers(customer oriented).S

MARKET STRATEGY;

Marketing strategy for Century Cinemax include;

Market segmentation:

Since most of local people thinking Cinemas is a western culture, Century Cinemax can segment its market into two;

1. Local movies

2. Foreign movies

This will attract different people, local people and foreigners too.

Targeting:

Our targeting will be categorized based on income level but our main target are youth because they can spend on it;

1. Low income

2. High income

Due to the location of Century Cinemax some of the people they think its very expensive so low income earners they can not afford the service, in other side there are some people who preferred expensive service. This strategy will help the company to acquire both of customers.

Positioning:

We will make an effort to be known as a customer oriented company in the market.

MARKETING MIX:

Marketing mix for Century Cinemax will include;

Pricing-Price penetration is our price strategy because the aim of Century Cinemax is for people of different income level to afford our services.

Distribution-Selling of tickets will take place to the selling point at the plaza, also we will sale our tickets via our agencies such as well known supermarkets, petrol stations, boutiques,barbershops,we choose these places because they are visited by a number of people during the day also it will promotes the company too.

Advertisement and promotion-We will use well known media such as TV, magazine, newspapers especial those which are close to youth, also we will offer discount for those who comes together with their families.

CONTROLS:

The company will take control measures on the following in on order to make it develop in terms of profitability and providing quality service to its customers;

1. Revenue

2. Expenses

3. Customer satisfaction

4. Product development

(Kotler & Keller, 2006)

Barry Champion is an enthusiastic cinemagoer and film enthusiast, has slowly created what may be many people’s dream that is to own his small group of cinemas. He started by purchasing a very run-down cinema near Bakewell in Derbyshire which had been family owned. Originally Victorian, it had not had a lot of money spent on it, in terms of upkeep or modernization. Barry Champion spent two years transformed the two hundred seater ramshackle Royal Cinema in Bakewell,into a cosy and well patronized local cinema, new seating, a new payment area, a new sweets kiosk, and splitting the original single auditorium into two, as an upstairs and down stairs cinema showing a wide range of movies, transformed the Royal, after the refurbishment he won the Prestigious Best Rural Cinema award presented by The British Academy of Film and Television Arts(BAFTA).After the Royal he bought the Rex in Skipton and transformed it to a successful business.

Recently he completely the purchase of his third rural cinema, the Plaza. This Cinema is in a small industrial town called Elderwood in the West. It currently seats 250 maximum with both a downstairs stalls area and small gallery upstairs. This business currently it’s not performing well so Barry Champion hired a Market consultant to research and investigates the markets for the plaza.

The Plaza Cinema in Elderwood is a similar business, in a new environment but, also possibly a very different business. My advice for Barry Champion is to analyzing consumer markets, to use Porters Generic Strategy, Ansoffs Matrix Strategy, Marketing mix strategy in opening and developing his newly acquired cinema business.

When analyzing consumer behavior Barry Champion should address the following;

WHAT INFLUENCES CONSUMER BEHAVIOR;

Consumer behavior;

The study of how individuas, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experience to satisfy their needs and wants.

When analyzing consumer buying behavior it’s important to analyze carefully the influences of it, where consumer buying behavior is influenced by factors such as cultural, social, and personal factors.

CULTURAL FACTORS;

Culture is the fundamental determinant of a person’s wants and behavior, where consumer behavior influenced by culture, subculture and social class.

Since culture is differ from one society to another it’s important to consider set of values, perceptions, preferences, and behavior of people who are potential customers of our newly business.

Subculture is a smaller group of culture that includes nationalities, religions, racial groups and geographic regions. It’s essential to consider subculture when opening new business because it provide particular identification and socialization for their members which will enables the company to design specialized marketing programs to serve them.

Social classes are from divisions in a society, which are hierarchically well thought-out and whose members share related values interest and behavior. Identifying social classes will help The Plaza Cinema in Elderwood designing its services accordingly to social classes of its customers based on occupation, income, wealth, education and value orientation.

Understanding social classes also will enable the company to know what kind or types of movies are most preferred by a certain social classes.

SOCIAL FACTORS;

Social factors are other influences of consumer buying behavior, where social factors such as reference groups, family, social roles and statuses are considered;

Reference groups consists all group that have direct or indirect influences on his/her attitudes or behavior, where group have direct influence are called membership groups such as family, friends neighbors and co-workers. Understanding social factors will enable to know who are the real influencers, after understanding it will be helpful for company to create an environment which can attract customer to come and watching movies at The Plaza Cinema in Elderwood.

Family is the most influencer of customer buying behavior, when a family consists of parents and children among themselves one can be an influence of others to go to the cinema, let’s say children are the ones who influence the family to come to the movie theatre.If so the company must conduct a research to find out what kind of movies are suitable for children to watch together with their parents and some other activities that will make the family enjoying when they came to the theatre.

Roles and statues is another influencer of customer behavior due to that the company must be aware of it, because some of the customers choose product or services that reflect and communicate their role and actual or desired status in the society.

PERSONAL FACTORS;

These are factors influenced by personal characteristics, personal factors include the buyers age and stage in the life circle; occupation and economic circumstances; personality and self-concept; and lifestyle and values. It’s very imperative to know personal factors because many of these characteristics have a very direct impact on consumer behavior.

Age and stage in the life cycle;

Customer buying behavior is related to number of age, family life circle, gender.Oftenly customer buying behavior depend on age,gender.Most of youth(teenagers)aged between 15-25 they most prefer romantic and violence movies, compared to adult customers who prefer adventures movie, being able to know personal factors associated with your customers will give the company one step ahead.

Occupation and economic circumstances;

It’s vital to know occupation and economic circumstances of your customers since people buy goods or services depending on economic circumstances (income level).This can facilitate the company to redesign, reposition and reprice their service by considering occupation and economic welfare of people of that area.

Personality and self concept;

Personalities characteristic are differing from one person to another also consumers choose and use services that have a brand personality consistent with their own actual self-concept (how one views oneself).

Lifestyle and values;

Lifestyle is a person’s pattern of living in the world as expressed in activities, interests and opinions; lifestyle portrays the whole persons interacting with his or her environment. In order the business to become successfully the company must conduct a research on relationship between products or services and the lifestyles of customers they target.

(Kotler & Keller, 2006)

PORTERS GENERIC STRATEGIES;

I advise them to use Porter generic strategies (Cost Leadership strategy) because of the following reasons;

Since the market is surrounded by many competitors it is better to use this strategy because Plaza Cinema will offer its service at average industry prices and earn a profit higher than that of its competitors and gain more market share.

The company can have access to the capital required to make a significant investment in providing its services.

I advise them to use Differentiation strategy due to the following reason;

After Barry Champion bought that theatre from the previous owner he made some improvement for the theatre in order to offer unique attributes (differentiation strategy) that are valued by customers and customer will perceive to be better than or different from others which will enable them to charge premium price.

NCC Consumer Behavior Notes

ANSOFFS MATRIX STRATEGY;

I advise them to use Product development strategy because it will help them to offer quality service and be ahead of competitors.

Source: (Tutor2u, 2010)

MARKET PENETRATION STRATEGY

I advise Barry Champion to consider Market Penetration Strategy because it will help the company to gain more market share with its current markets.

MARKET DEVELOPMENT STRATEGY

By considering Market Development Strategy Barry Champion he will be able to decide whether he can find or develop new markets for its currents products.

PRODUCT DEVELOPMENT STRATEGY

It’s important for Barry to understand Product development strategy because it will help him to decide whether he can develop new product or service of potential interest to its current markets.

DIVERSIFICATION STRATEGY

This strategy will help him to review opportunities to develop new products or service for new markets

MARKETING MIX STRATEGY;

Product/Service-My advice for Plaza Cinema is to change technical equipments and bring new ones.

Before Barry Champion bought the Plaza they used to show foreign movies with English subtitles but in order to satisfy customer needs it’s better to change those foreign movies into local language(English).

Also there are toilet problems which required work to bring them up to date and meet Healthy and Safety regulation.

In terms of price my advice for them is to use penetration price strategy which will help to attract many customers and acquire more market share than competitors.

In order to creates awareness to potential customers of Plaza Cinema they must promote via well known media, online advisement.

Selling of tickets will take place via online for those who could not manage to come to our shop, nearby local shop such as supermarkets visited by many people.

(Kotler & Keller, 2006)

TASK 2

It’s very important for Barry Champion to understanding Consumer behavior in order to know the Decision Making Unit (DMU) and Decision Making Process of his potential customers because they play an important role in understanding how consumers make their buying decisions.

Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services.

Consumer behavior

Decision Making Unit-Is a group of people who directly or indirectly influences the purchase of product or service.

Decision making unit includes all the members of the business who play important roles in the purchase decision process;

Initiators-These are the people in the organization who request that something must be purchased.

Users-These are the people who use service, in order the company to offer quality service they must depend on customers to help them define service requirement.

Influencers-These are the people who influence the buying decision. It’s important for Barry Champion to pay attention on influencers because they will help him in define specifications and also provide information for evaluating alternatives.

Deciders-These are people who decide on product on requirement, so Barry Champion must carry out a research in order to know what is required by its customer, by doing that he will be able to deliver quality service to the market.

Approvers-People who authorize the proposed actions of deciders or buyers. In order the company to offer quality service and maintain it for a long period, they need someone who can approve the quality of service before reach to the customers.

Gatekeepers-These are people who have the power to prevent information reaching to the members of buying center. Most of Cinemas they facing security problems such as people violence, thefts and so on. In order to prevent those problems there must be a good communication between them and security measures so customers can be assured security for them and their properties when they came to the Cinema to watch movie.

Decision making unit also include people outside the target customer organization such as marketing channel, technical advisors, consultants, government officials. It very important for Barry Champion to get along with these people for example government officials, as we know in every country or state they have their own rules and regulation concerning Cinemas by considering them company can operate under rules and regulation of the country or state.

(Robbins & Coulter, 2005)

Decision Making Process-Is the process of making a choice between a numbers of options and committing to a future course of actions.

The importance of understanding the decision making unit and decision making process of his potential customers and those who used to attend the plaza before he purchased it;

It will help the company to know what kind of service (movies) customers preferred to watch during the weekdays or weekends.

Another importance is that, it will help the company to know how customers they can buy that service (via online, local shops or via distributors).

Understanding decision making unit and decision making process will help Barry Champion to find out why (what influence them) people come to Plaza Cinema to watch movies.

Also will help him to know about his/her competitors.

It will make Barry Champion to be aware of the complexity of human motivation in general and consumer motivation in particular.

It will enables Barry Champion to appreciate marketing activities more by helping marketing people to analyze how individual advertisements and commercials, sales presentations and service designs attempt to persuade consumers.

It will makes Interact better consumers by giving Barry Champion a better understanding of own decision processes.

(NCC Consumer Behavior Notes)

Interact company can gather and obtain information of his potential customer from;

Talking with the current customers.

Visiting customer in their homes or offices.

Information from our staff/distributors who work directly with customers

Searching on the competitor websites to see their customer list.

Questionnaires at your showroom.

Conduct market research on customers to explore their habits and behaviors

Social surveys by social organizations.

Articles in newspaper.

Income and expenditure levels from statistics office.

Marketer’s researchers.

Via the web.

Conducting a customer survey by delivering questionnaires.

Get customers comments via the web;

Comments via websites are a good way for a company to obtain information, where company websites can be used as a place for customers to add their comments and opinions about the service provided by the company. This can be done by set a comment form linked with a company email system.

Conducting a survey;

This is among the best way a company can use to gather and obtain accurate information by using people who have the skills to do that job such as independent researcher or a market research company.

(Kotler & Keller, 2006)

TASK 3

COMPETITOR ANALYSIS is the process of identifying the performance and marketing strategy of competitive brand or products in the market place. In to plan an effective market strategy marketers need to know about the competitive environment and find out all they can about competitor products, prices, communications channel quality, and services so as to determine areas of competitive advantages and disadvantages.

Source; Answers Corporation (2010)

http://www.answers.com/topic/competitor-analysis , date 20/10/2010

CENTURY CINEMAX;

Is the newly cinema theatre in Dar-es-salaam Tanzania, three screens, including the largest in East Africa and all with Dolby Digital surround sound.

In order to do competitor analysis on Century Cinemax,

SWOT ANALYSIS and MICHAEL PORTER FIVE FORCES are the best models which can give a clear picture about CENTURY CINEMAX;

First let look on SWOT ANALYSIS;

SWOT ANALYSIS is a business model used to analyze what are the strengths, weaknesses, opportunities and threats of your competitors competing in the same market.

Source; HRM Advice (2008)

hrmadvice.com/…/hr-swot-examples.html, date 23/10/2010

The followings are Strengths of Century Cinemax;

Location of Century Cinemax is amongst its strengths, Century Cinemax located at Mlimani city the place crowded with a lot supermarket (Shoprite), pubs, bankies and many business offices, and due to this many people are visiting that area so it’s easy to know what is going on at Century Cinemax.

The price is affordable to all kind of people not to a certain class of people so anyone can go there.

The competition it’s not big enough compared to other countries where there a lot of Cinema theatre.

They have big screen which you can’t find anywhere all over east Africa.

High quality sound technology (Dolby Digital sound) which makes them reliable on providing quality service.

They have big theatre which can handle a large number of customers.

Weakness of Century Cinemax;

Undifferentiated services with other companies which offering the same service as Century Cinemax.

They don’t have enough (Advertisement) promotional activities so it’s difficult for someone who is outside of the city or don’t make frequently visit at Mlimani City to know what is going on there.

Opportunities of Century Cinemax;

Since the Cinema industry it’s not yet bigger Century Cinemax can acquire a lot of market share without a big fight.

Century Cinemax is a new cinema company because of this many people will have desire to come see/experience the difference.

Threats of Century Cinemax;

Entrance of competitor is a big threat to Century Cinemax because they will have to fight for little market share since Cinema Industry it’s still growing.

Price war is another threat when other companies on the market decide to lower their price in order to attract more customers.

Introduction of new, innovative service also is a threat because they will be able to match with Century Cinemax so customers will have two options where to go when they want to watch movies.

(NCC Consumer Behavior Notes)

TASK 4.

MARKETING PLAN

Is a written document that summarizes what the marker has learned about the market place and indicates how the firm plans to reach its marketing objectives. Marketing plan contains the following executive summary and table of contents, situation analysis, marketing strategy, financial projections, and implementation control.

EXECUTIVE SUMMARY

The Plaza is a cinema in a small ‘once’industrial town called Elderwood in the West Yorkshire. It currently seats 250 maximum with both a downstairs stalls area and a small gallery upstairs. Over the last few years the patrons have dwindled, so that the largest audience that attends now gathers to watch foreign films with English sub-titles.

SITUATIONAL ANALYSIS

The Plaza was currently purchased by Barry Champion from previous owner hired the consultant to investigate the markets for the Plaza who doesn’t have the cash or capital investment to put into the business. After he bought the Plaza he hired the marketing consultant to research and investigates the market for the Plaza.

SWOT ANALYSIS

Its show the strengths, weakness opportuties, threats of the company.

The followings are Strengths of Century Cinemax;

Location of Century Cinemax is amongst its strengths, Century Cinemax located at Mlimani city the place crowded with a lot supermarket (Shop rite), pubs, banks and many business offices, and due to this many people are visiting that area so it’s easy to know what is going on at the company.

The price is affordable to all kind of people not to a certain class of people so anyone can go there.

The competition it’s not big enough compared to other countries where there a lot of Cinema theatre.

They have big screen which you can’t find anywhere all over east Africa.

High quality sound technology (Dolby Digital sound) which makes them reliable on providing quality service.

They have big theatre which can handle a large number of customers.

Weakness of Century Cinemax;

Undifferentiated services with other companies which offering the same service as ours.

They don’t have enough (Advertisement) promotional activities so it’s difficult for someone who is outside of the city or don’t make frequently visit at Mlimani City to know what is going on there.

Opportunities of Century Cinemax;

Since the Cinema industry it’s not yet bigger compared to others countries Century Cinemax can acquire a lot of market share without a big fight.

Century Cinemax is a new cinema company because of this many people will have desire to come see/experience the difference.

Threats of Century Cinemax;

Entrance of competitor is a big threat to Century Cinemax because they will have to fight for little market share since Cinema Industry it’s still growing.

Price war is another threat when other companies on the market decide to lower their price in order to attract more customers.

Introduction of new, innovative service also is a threat because they will be able to match with Century Cinemax so customers will have two options where to go when they want to watch movies.

MARKETS NEEDS;

When a company enters to the market first they have to know the market needs. Understanding market needs can help the company to come out with well planned strategies to satisfy their customers and win the market. Marketers must consider the following when they evaluate market needs

Quality service-In every markets people they most prefer quality service, nobody can spend on product or service of low quality or can not satisfy his or her needs, so its important for the company to offer quality service to the market.

Well design service-People are differ from one to another’s in order the company to satisfy both customers they can collect information from them so company can design its services by using information from customers. For example a company can conduct a research to customer of different ages to know what kind of movies they like so when they are design hey will do it according to customer needs.

Customer service-The company must serve well the customer so they can be loyal and feels they are part of company, in order to do this company must hired people who knows how to serve customers(customer oriented).S

MARKET STRATEGY;

Marketing strategy for Century Cinemax include;

Market segmentation:

Since most of local people thinking Cinemas is a western culture, Century Cinemax can segment its market into two;

1. Local movies

2. Foreign movies

This will attract different people, local people and foreigners too.

Targeting:

Our targeting will be categorized based on income level but our main target are youth because they can spend on it;

1. Low income

2. High income

Due to the location of Century Cinemax some of the people they think its very expensive so low income earners they can not afford the service, in other side there are some people who preferred expensive service. This strategy will help the company to acquire both of customers.

Positioning:

We will make an effort to be known as a customer oriented company in the market.

MARKETING MIX:

Marketing mix for Century Cinemax will include;

Pricing-Price penetration is our price strategy because the aim of Century Cinemax is for people of different income level to afford our services.

Distribution-Selling of tickets will take place to the selling point at the plaza, also we will sale our tickets via our agencies such as well known supermarkets, petrol stations, boutiques,barbershops,we choose these places because they are visited by a number of people during the day also it will promotes the company too.

Advertisement and promotion-We will use well known media such as TV, magazine, newspapers especial those which are close to youth, also we will offer discount for those who comes together with their families.

CONTROLS:

The company will take control measures on the following in on order to make it develop in terms of profitability and providing quality service to its customers;

1. Revenue

2. Expenses

3. Customer satisfaction

4. Product development

(Kotler & Keller, 2006)

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