Model of buyer behavior in consumer markets Marketing stimuli Product Price Place Promotion Other stimuli Economic Technological Political Cultural Buyer’s Characteristics Cultural Social Personal Psychological Buyer’s decision process Problem recognition Information search Evolution Decision Post-purchase behavior Buyer’s decisions Product choice Brand choice Retailer choice Purchase timing Purchase amount
Segmentation Methods Geographic segmentation: geo-marketing databases. Type of household in particular post- codes. Other variables (income, ethnicity, household size, etc). Demographic segmentation: life-stage analysis, age, gender, income and social class. Psychographic segmentation: lifestyle, personal values and attitudes. Behavioral segmentation: customer’s knowledge of the product, point of purchase, purchase pattern and frequency, intensity of use, benefits, loyalty, etc.
Multivariate segmentation Multivariate analysis uses more than one variable in the development of market segmentation and examines several elements simultaneously, for example gender and age. Once these groupings are established, it becomes possible to give meaningful labels to the clusters, such as “young aspirational urbanite”.
Developing the marketing mix Product Design Features Quality Quantity Variations Packaging Brand Service Price List Price Discounts Credit terms Repeat purchase Payment terms Promotion Advertising Direct marketing Sales promotion Coupons Bundling Joint promotion Loyalty programs Public relations Place Geography Channels Retailers Opening times Order taking Fulfillment Delivery
Position and positioning A product’s position ultimately depends on the attitudes of people in the target market. Firms will seek to position their products to increase sales. Either marketers accept customer attitudes as they are and tailor the product to fit these attitudes OR they seek to change attitudes. Positioning indicates how a company wishes to compete in the market place.
Positioning The process of creating an image for the product in the minds of customers. The activity directed towards creating and maintaining an intended product concept and image in the minds of targeted customers. Arranging for a brand or product to occupy a clear and distinctive place in the minds of target customers relative to competing products and brands.
The role of positioning To strengthen the power of messages directed at customers. To target a particular segment. To ensure that the product is differentiated in the minds of customers. To decide on the ground on which to compete. To analyze re-positioning possibilities.
Position in the market The location of a product or service alongside key competitors in the mind of consumers. The way customers perceive a product relative to competing products. Refers to the place the product occupies in the customer’s perceptual map of the market.