Post on 17-Jul-2015
transcript
Customers
Who is important?
What are their choice
criteria?
Howdo they buy?
Wheredo they buy?
When do they buy?
Understanding customers : the key questions
What is consumer behaviour
Study of how the individuals ,groups or organisations
select, buy, use and dispose
of goods, services, ideas or experiences to satisfy their needs
Factors influencing consumer behaviour
Cultural factors
Social factors
Personal factorsAge and stage in the life cycleOccupation & economic circumstancesPersonality & self conceptLifestyle & values
Brand personalitySincerity (down-to-earth, honest, wholesome and cheerful)
Excitement (daring, spirited, imaginative & up-to-date)
Sophistication (upper-class & charming)
Ruggedness (out doorsy & tough)
E:g-
Levi’s-ruggedness
MTV- Excitement
CNN-competence
Reference groupsMembership groups
Primary group Secondary group
Aspirational group
Dissociative group
Consumer buying processNeed recognition & Problem awareness
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behavior
Need recognition
Routine needsEvolved needs
Emergency needs
Which product to buy?
Internal Stimulus
External Stimulus
Information search
Which brand to buy?
sources
Retrieving information from memory
•Personal-family,friends,neighbours,acquintances
•Commercial-advert, web-site, sales-persons
•Public- mass media, consumer rating organisation
•Experiential-handling, examining, using the product
Internal sources
External sources
Market segmentation
Dividing a market into distinct groups with
•Distinct needs•Distinct characteristics or behavior
who might require separate products or marketing mixes.
Why segmentation
Through market segmentation, companies divide large, heterogeneous
markets into smaller segments that can be reached more effectively
and efficiently with products and services that match their unique needs
Bases of segmentation
Demographic-
Age & LifecycleGender
Life stagesoccupation
Behavioral-
Benefits soughtPurchase occasion
Brand loyaltyUsage
Perception& beliefs
Geographic- UrbanRural
etc.
Psychographic- LifestylePersonality
Strategies of segmentation
•Niche - marketing One product one market strategy
•One product many market One product, with different
variations in the productbut catering to the
needs of different market segments
•Many product one market Different products catering to theneeds of one consumer segment.
•Multiple niching Many product many market
Market segmentation1.Identify bases for
segmenting themarket.
2. Develop segment profiles.
Target marketing
3.Develop measureof segment
attractiveness4. Select target
segments
Market positioning5. Develop
positioning for target segments.
6. Develop a marketing mix for
each segment.
Market segmentation – Company identifies different ways to segment the market.
& Develop profiles of the resulting
market segments
Target marketing- evaluating each market segment’s attractiveness
& Selecting one or more of the market
segments to enter.
Marketing positioning- setting the competitive positioning for the product
& creating a detailed marketing mix
Target market
A target market is a group of people or organisationsfor which a company
Designs Implements and
Maintains a marketing mix intended to meet the needs of that group, resulting in mutually beneficial and satisfying exchanges.
Product positioningThe way the product is defined by consumers on important attributes – the place the product occupies in consumer’s minds relative to competing products.
A product’s position is the complex set of Perception Impression & Feeling
That the consumers have for the product compared with competing product
Result of positioning
Customer- focused value proposition
A cogent why the target market should buy the productPositioning is:
Not what you do to a product .
But what you do to the minds of the prospect.
Company &product
Targetcustomers
Benefits price Value proposition
Perdue(chicken)
Volvo (station wagon)
Domino’s(pizza)
Quality-conscious consumers of chicken.
Safety-conscious “upscale” families.Convenience-minded pizza lovers
Tenderness
Durability and safety
Delivery speed and good quality
10% premium
20% premium
15% premium
More tender golden chicken at a moderate premium price
The safest, most durable wagon in which your family can ride.
A good hot pizza,delivered to your door within 30 minutes of ordering at a moderate price.
Choosing a positioning strategy
Three steps:
•Identifying a set of possible competitive advantages upon which to build a position
•Choosing the right competitive advantages
•Selecting an overall positioning strategy
The company must effectively communicate and deliver the chosenposition to the market
Decision on positioning requires determining the
Competitive frame of reference by identifying
•The target market
•The competition
•The ideal points-of-parity (POP)
•The points-of-difference (POD)
&
Identifying the
CATEGORY MEMBERSHIP
the products or set of products with which a brand competes
&which functions as a close substitutes
Target market
•Buyer behavior•Identify the consideration set consumer use in making brand choices
•Buying roles
Point-of-difference (PODs)
Attributes and benefits consumers strongly associate with a brand ,positively evaluate, and believe that they could not find to the same extent with a competitive brand.
Point-of-parity (POPs)Associations that are not necessarily unique to the brand but may infact be shared with other brand.
•Category POPs
•Competitive POPs
Category point- of- parity
Associations consumers view as essential to be a legitimate and credible offering within a certain product or service category
They represent necessary- but not necessarily sufficient-conditions for brand choice
Competitive point-of-parity
Associations designed to negate competitors points-of-difference