An abstract
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 Needs
o 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 Levels
o 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 Influences
o Motivational levels differ greatly between individuals and are influenced by
many external variables. These include the social value of making the "right"
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.
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.
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.
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-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 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.
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 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 Insights
The 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,Appraisal
Product 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,Sciences
Measurement 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,Development
As 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 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,Insights
The 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, 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,Appraisal
Product 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,Sciences
Measurement 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.
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.
Chefmanship
As 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,Health
This 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
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
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.
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.