Who is important? How do they buy? What are their choice criteria?

Customers

Where do 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 factors
Age and stage in the life cycle Occupation & economic circumstances Personality & self concept Lifestyle & values

Brand personality
Sincerity (down-to-earth, honest, wholesome and cheerful) Excitement (daring, spirited, imaginative & up-to-date) Sophistication (upper-class & charming) Ruggedness (out doorsy & tough)
E:gLevis-ruggedness MTV- Excitement CNN-competence

Reference groups
Membership groups

Primary group Secondary group

Aspirational group Dissociative group

Buying roles
INITIATOR
INFLUENCER PAYER DECIDER BUYER USER

Consumer buying process

Need recognition & Problem awareness Information search Evaluation of alternatives Purchase decision Post-purchase behavior

Need recognition
Internal Stimulus

External Stimulus

Routine needs Evolved needs Emergency needs

Which product to buy?

Information search
Which brand to buy?
Internal Retrieving information from sources memory

sources

External sources

Personalfamily,friends,neighbours,acquintances

Commercial-advert, web-site, sales-persons

Public- mass media, consumer rating organisation Experiential-handling, examining, using the product

Entire Set Of Brands Available Or known

Evoked set Consideration Set Inert set Inept set

Choice set

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
Age & Lifecycle

Demographic-

Gender Life stages occupation

Geographic-

Urban Rural etc.

Behavioral-

Benefits sought Purchase occasion Brand loyalty Usage Perception& beliefs

Psychographic- Lifestyle

Personality

Strategies of segmentation
Niche - marketing One product one market strategy
One product, with different variations in the product but catering to the needs of different market segments Different products catering to the needs of one consumer segment.

One product many market

Many product one market Multiple niching

Many product many market

Market segmentation 1.Identify bases for segmenting the market. 2. Develop segment profiles.

Target marketing
3.Develop measure of segment attractiveness 4. Select target segments

Market positioning 5. 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 segments

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 organisations for 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 positioning
The way the product is defined by consumers on important attributes the place the product occupies in consumers minds relative to competing products.

A products 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 product
Positioning is: Not what you do to a product . But what you do to the minds of the prospect.

Company & product

Perdue (chicken)

Target customers
Qualityconscious consumers of chicken.

Benefits

price

Value proposition
More tender golden chicken at a moderate premium price

Tenderness

10% premium

Volvo (station wagon)

Dominos (pizza)

Safetyconscious upscale families. Convenienceminded pizza lovers

Durability and safety

20% premium

The safest, most durable wagon in which your family can ride.

Delivery speed and good quality

15% premium

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 chosen position to the market

Decision on positioning requires determining the

Competitive frame of reference by identifying

The target market The competition &

Identifying the
The ideal points-of-parity (POP) The points-of-difference (POD)

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

Choosing POPs & PODs

Relevance Distinctiveness Believability There are three deliverability criteria Feasibility

Communicability
Sustainability