About/Contact Info I am a business consultant for a leading North American business and [+/-] technology services company and have an MBA specializing in management.
Eleven new RSS feeds featuring some of the most popular subject areas have just been created. Now you can keep track of new articles by subject by subscribing to any one of the feeds below:
Welcome to DILAWRI.com, the place where you can improve your business- and people-management skills. Browse through our archives or search the site for the topics which interest you the most.
Make DILAWRI.com your competitive advantage for business news and advice by subscribing to our RSS feed which will keep you up to date on all new articles and advice like the valuable ones mentioned above! Technorati Profile
Last week’s article focused on how to motivate customers by addressing how your product or service is personally relevant to their lives. In this article, the discussion of customer motivation to purchase is continued as we look at the next factor in purchase decisions: the customer’s set of values.
Values are the enduring beliefs held by a person which help guide their perceptions of what is desirable or good. In the consumer’s culture, there can be an emphasis on individual values such as achievement or self-direction; collective values such as politeness, cleanliness, and responsibility; or on mixed-mode values such as security (e.g., national security or family security).
Organizations must understand how these types of consumer values affect consumption/purchase patterns, market segmentation, advertisement strategy, and last, but not least, ethics. Because consumers typically purchase and use products in ways which are consistent with their personal values, organizations can know more about what consumers like if they understand their values. Furthermore, this knowledge will help the organization determine which products to sell, where to sell them, and how to advertise them to various regional markets.
For example, individuals are more likely to buy gifts, send cards, and make long-distance phone calls in cultures where people value warm and close relationships; whereas this is much less likely to occur in cultures where there is less value placed on relationships. In one example, Campbell's Soup failed to make a significant mark in the South American markets because in many of these countries, serving canned soup to one's family seemed tantamount to accusing a mother of not caring enough to prepare a home-made soup. This area of the world places a great emphasis on how a mother cares for her children and her family; as a result, Campbell's had experienced some difficulty in approaching these markets.
When an organization understands the underlying values of its customers (or potential customers), it puts itself in a better position for developing a marketing strategy that best appeals to these customers, in whichever market they may exist.
When it comes to implementing a marketing strategy to sell a product or service, it is important to understand the motivations of both existing and potential customers. In a previous article, we had examined the ways in which leaders can motivate their employees; it is only fitting that we now also look at the ways in which customers can be motivated.
In order to look at how to position your products or services to new or current customers, we must look at the major driving forces behind customer motivation. In Part 1 of this series of articles, we will look at the first aspect of customer motivation: the personal relevance of the product/service to the customer.
For the product to be personally relevant to the customer, it must be involving or important enough for the customer to be willing to think about the issue and to ask themselves: "Do I really need to buy Product X from Company A?" If the consumer determines that the product or service is in fact highly relevant to them, organizations can expect an increase in the consumer's intention of purchasing the product or service. A product is more likely to be considered a hit if the organization employs a marketing strategy which focuses on: a) how the product addresses an existing problem faced by consumers; or b) increasing the awareness of new or potential problems which consumers might encounter if they choose not to buy the product.
Understanding the personal relevance of a product goes a long way in helping to predict the actual purchase intentions of a consumer, however, it is worth noting that these intentions may still differ from actual consumer purchase behaviours. Nevertheless, organizations must first determine the motivational factors behind consumer purchase decisions in order to construct an effective marketing strategy.
Measuring the personal relevance of a product is best achieved by presenting consumers with survey questions which ask them to rate their perceived importance of buying or using a product or service from your company on a rated scale. The measurement of a consumer's perception of product importance has been a successful method of linking the satisfaction of the consumer's experience (with either your brand or your organization) to their actual purchase intentions.
In Part 2, this discussion will continue by looking at the next factor in customer motivation: the customer's unique set of values and beliefs.
In order to motivate someone, you must have an understanding of the driving factors behind that person’s existing behaviour, and organizational systems in place which will foster employee motivation.
Maslow’s hierarchy of human needs states that human beings need to fulfill certain types of wants and desires in a specific order. From the more basic to the more complex levels, the human needs hierarchy according to Maslow consists of: 1) physiological needs; 2) safety/security needs; 3) love/friendship needs; 4) the need for self-esteem; and 5) the need for self-actualization.
What this means is that because people are at different “levels” within the hierarchy – e.g. some may be motivated by the need for long-term security (safety/security), whereas others may be motivated by the need to accomplish something big and meaningful (self-actualization), there will undoubtedly be different ways to motivate people.
In order to motivate someone, you must have an understanding of the driving factors behind the person’s existing behaviour as well as the proper organizational systems which will foster employee motivation.
What is required of these organizational systems is:
Regular communication with the employee Having regular discussions with employees will help in assessing what it is that actually motivates them.
Whether the individual has a need to feel safe and secure that they’re doing relevant and purposeful work, or to feel self-actualized in that the work that they’re doing is beneficial and of high importance to the organization, it is important to communicate with the employee regularly, find out what their motivating factors are, and ensure that they are on the right course.
A direct link between the goals of the employee and those of the organization Related to the previous concept is the alignment of the employee’s goals and objectives with those of the organization. When meeting with the employee to discuss his or her goals and objectives, it is helpful to share with them the importance of their contribution to the organization, and to guide them to choose goals that align nicely with those of the company. This need not be a one-way street however. If the employee’s goals are not immediately linkable to those of the organization, look for ways in which the person’s job activities can be enlarged or enriched.
By supporting the individual in their expanded or enriched role, the employee will be more fulfilled, and the organization will benefit by having a more motivated, high-potential individual within their ranks.
Linking compensation and rewards to the achievement and realization of goals Compensation and employee reward systems are an important part of the overall motivational systems within an organization. When an employee does an outstanding job, don’t be afraid to reward them for their efforts.
By regularly meeting with employees to assess their individual motivating factors and putting other organizational processes in place, you stand a far greater chance of motivating your people to accomplish goals that are purposeful and relevant to your organization.
It is clear to see then, that there isn’t a one-size-fits-all way to encourage and motivate people but rather a multitude of ways, depending on what the individual needs from the organization.