LOUNGE WEAR

A MAHARASHTRA manufacturer

Wants to start RETAIL business

WHERE To start???
Buyers/Users/
Consumers?
1. Who buys our product?
2. Who does not buy it?
3. What need or function does it serve?
4. What market needs are being satisfied by
current product/brand offerings?
5. What are the three benefits that my target
customers will get from my product?
6. What price are they paying?
7. When is the product purchased?
8. Where is it purchased?
9. How will my customers know about my
product?
WHY
is this behaviour shown?

1.Age
2.Occupation
3.Income
4. Gender
5.PERSONALITY
SEGMENTATION

• Demographics
• Psychographics
• Behavioral
• Benefits sought
• Income segmentation
• Region segmentation
• Age segmentation
• Gender segmentation
• Education segmentation
• Occupation segmentation
1. Bachelor stage: Few financial burdens. Fashion opinion leaders.
Young, single, not living at Recreation oriented. Buy: basic home equipment,
home furniture, cars, equipment for the mating game;
vacations.

2. Newly married couples: Highest purchase rate and highest average purchase
Young, no children of durables: cars, appliances, furniture, vacations.

3. Full nest I: Home purchasing at peak. Liquid assets low.

Youngest child under six Interested in new products, advertised products. Buy:
washers, dryers, TV, baby food, chest rubs and cough
medicines, vitamins, dolls, wagons, sleds, skates.

4. Full nest II: Financial position better. Less influenced by

Youngest child six or over advertising. Buy larger-size packages, multiple-unit
deals. Buy: many foods, cleaning materials, bicycles,
music lessons, pianos.
 The VALS segmentation system:
An 8-partPrimary
typology
Motivation

• Groups with High

Resources
1. Actualizers
2. Fulfilleds
3. Achievers
4. Experiencers
• Groups with Lower
Resources
1. Believers
2. Strivers
3. Makers
4. Strugglers
energy, self-confidence, intellectualism, novelty seeking,
innovativeness, impulsiveness, leadership, and vanity
 Psychographic Segmentation
• Grouping people according to attitudes, value,
and lifestyles
• Porshe example
– Top Guns (27%): Ambition, power, control
– Elitists (24%): Old money, car is just a car
– Proud Patrons (23%): Car is reward for hard work
– Bon Vivants (17%): Car is for excitement, adventure
– Fantasists (9%): Car is form of escape
Psychographic Segmentation
 Behavior Segmentation

• How much they use it

• How often they use it
• User status :potential users, non-users,
ex-users, regulars, first-timers, and users
of competitors’ products.
• Law of disproportionality/Pareto’s Law –
80% of a company’s revenues are
accounted for by 20% of the customers
 Benefit Segmentation

• Benefit segmentation focuses on the value

equation
– Value = Benefits / Price
• Based on understanding the problem a
product solves, the benefit it offers, or the
issue it addresses
 Influencing Buyer Behavior

Maslow’s
Hierarchy of
Needs
Buyer Decision
Making
Model
 Buyer Decision Process
Purchas
Product Choice e
Decisio
Post purchase
n Behavior
Evaluation
of Alternatives
Information
Search
Need Recognition
 Buyer Decision Process
Step 1. Need Recognition

Buyer
Recognizes Needs Arising
State Where From:
the Buyer’s a
Needs are Problem Internal
Fulfilled and or a Stimuli –
the Buyer is Need.
Hunger
Satisfied.
External
Stimuli-
Friends
 TYPES of Info-Search

Pre-Purchase vs. Ongoing

Internal vs. External

Deliberate vs. Impulsive

Amount of Info-Search

Amount of Search

Product knowledge
 degree of
Involvement
during Info-Search
Types
Types of
of Risk
Risk Affecting
Affecting Search
Search

Monetary
Monetary Psychological
Psychological

Functional
Functional Social
Social

Physical
Physical