Importance of Understanding Buyer Behavior

Marketing effort starts with the identification of buyer needs. Buyer needs go on changing with the passage of time. A marketer should analyze and understand buyer behavior carefully because:

• Different persons, communities and organization have different needs because they exist in the different environment.
• Their needs go on changing and may demand different goods and services in different situations.
• Different persons may demand different goods and services at the same time.
• Some needs are fulfilled while some are not.
• Degree of need fulfillment, by and large, depends upon the marketing environment that exists in the market.

 A marketer is said to be successful in understanding consumer behavior when he is capable of understanding the consumer need, especially the unfulfilled needs. At the same time, he must be capable of assuring the six O’s. when he is capable of seeking the right answers to the questions, it can contribute a lot to the entire strategic planning process in marketing.

Importance of understanding buyer begavior

• Assess the actual need of consumer
• Establish the firms marketing objective
• Define, analyze and understand marketing requirements
• Reduce the uncertainty in the market
• Measure the impact of its strategy
• Know about the use of product information by the consumers

Assess the actual need of consumer: The study of consumer behavior enables a marketer to asses, the nature of consumer needs and wants, and the best way of satisfying them.

Establish the firms marketing objective: The study of consumer behavior helps the marketer to develop several marketing objectives. For example, how the company wants the consumers to view its products.

Define, analyze and understand marketing requirements: The study of consumer behavior makes the marketer capable of identifying, analyzing and understanding consumer’s needs which help them segment rightly the market and seek the advantage of market segmentation.

Reduce the uncertainty in the market: The study of consumer behavior helps the marketer to reduce the uncertainty that may affect marketing program, and hence enables a firm to anticipates the effects of its marketing decision on consumers.

Measure the impact of its strategy: The study of consumer behavior allows a firm to measure the impacts of a strategy. Thus, understanding consumer behavior is a basis for performance evaluation of the firm. For example, a marketing institution may know that local consumers place a high value on friendly service.

Know about the use of product information by the consumers: A through study of buyer behavior enables the marketer to understand how a consumer use information about the product and company. This understanding of information use facilities the development of marketing policy.