Answer 1:

INTRODUCTION:

Marketing segmentation is one of the most integral steps of developing a customer value-
driven marketing strategy. It refers to the research that is used by a company to divide a
larger market into smaller markets based on characteristics such as age, income, personality,
location and behaviour. Segmentation allows companies to know their potential customers,
identify the needs of the customers, determine how they can meet those needs and gain a
competitive advantage with their product and service.

Wearable technology plays an important role in motivating people. It allows you to track
your vitals like heart rate, calories burned and steps completed. This in turn helps people to
live a healthier life, develop healthy eating habits and achieve the fitness level they always
desired.

In the case of Yuva, the company is looking to cater to youth who are health conscious and
focussed on achieving their fitness goals through their product. In addition, the price of the
Yuva fitness band is pocket friendly without compromising on the quality and design of the
product. Market Segmentation would ensure the company caters to the right set of audience
and occupy a better product position in consumers’ minds relative to competing products.

CONCEPTS AND APPLICATIONS:

As a marketer, categorizing prospects into segments would help me focus on specific target
groups, tailor my efforts to maximize impact and understand the market structure. Below are
the types of market segmentation I would implement for the brand Yuva.

1. Geographical Segmentation

This type of segmentation groups users, based on their geographies such as regions, nations,
states, cities, etc. Considering Yuva is a brand catering to Indian Youth in a lower price
segment, our campaign will be nationwide and target those customers (youth) who are from;

Tier-1 Cities: Metropolitan cities, urban and suburban areas of these cities. These cities are
densely populated and the cost of living is high in these cities. eg: Delhi, Mumbai, Bangalore,
Kolkata, Ahmedabad, etc.

Tier-2 Cities: These cities have good infrastructure and transport facilities, higher growth
rate of industrial and allied sectors is seen in these cities. Population density is less than Tier -
1 cities but more than Tier -3 cities. eg: Gurgaon, Agra, Cuttack, Kanpur, Kozhikode, Nagpur
etc.

Tier-3 Cities: These cities have low population density and cost of living however the
market share of these cities could be potentially high as we are catering to youth in the lower
price segment category. eg: Udaipur, Ajmer, Nasik, Trichy etc.
2. Demographic Segmentation

Demographic Segmentation is a type of segmentation that divides a market based on

Demographics. Demographics are basic characteristics like age, gender, income, occupation,
education, marital status, religion or nationality. The benefit of demographic information is
the ease of collecting and analyzing it. With the help of demographic factors we can
understand, what products and services we buy, how will we use them and how much we
would be willing to pay for them. In the case of Yuva fitness band I would segment the
market on basis of the following demographic factors;

a) Age - Youth between the age group of 15- 24 years can be potential customers.

b) Gender -Young boys and girls, who are keen on achieving their fitness goals are
prospects.

c) Education - High school and college students who are fashionable and believe in physical
well-being can be seen buying the product.

d) Income - Youth who have recently graduated from college and acquired a job and those
who are already working and have expendable income can look forward to buying the ‘Yuva
PRO’ fitness band. However, the choice is completely subjective and depends on what
features the individual is looking for and what goals he wishes to achieve using the fitness
band.

e) Marital status - Single or married the product can be seen as a gift for the one you love
and care for.

f) Occupation - The Yuva fitness band could be a great buy for youngsters who are working,
travelling, into sports, gymnastics or any outdoor activity like trekking and hiking etc

3. Psychographic segmentation

Psychographic segmentation focusses on dividing the market on basis of Psychographics.

Psychographics are a person’s personality, values, attitudes, opinions, interests and lifestyles.
This type of segmentation is slightly difficult to identify than demographics as it is
subjective. Psychographic data is usually collected using surveys, interviews and analytics
data collected using Google and social media channels where customers reveal their personal
information.

For brand ‘Yuva’, the type of clientele that I would target using psychographics would be on
basis of;

a) Lifestyle - Youngsters who have a busy lifestyle outside their homes. They are frequent
users of smartphones and social media sites.

b) Interests and Motivation - Young people who want to create an active lifestyle, track
their sleeping cycle and exercising habits.

c) Personality – Young people are usually interested in travel, the latest technology, athletic
lifestyles and shopping online. A brand like ‘Yuva’ that has a colourful design and stylish
look will enhance their personality and help them achieve their fitness goals.
4. Behavioral Segmentation

Behavioral Segmentation divides users based on their behaviour and decision-making

patterns. It requires us to know about the customer’s actions. Marketers need to understand
the purchasing, consumption, lifestyle and usage patterns of buyers as it would help in
developing a more targeted approach. Behaviour also varies based on brand loyalty,
Occasions, Product benefits, User Status and User rate.

For brand ‘Yuva’, the customers that I would like to target using behavioral segmentation
depends on the behavioral variables enlisted below;

a) Occasion – Occasions play a vital role in influencing purchasing, usage and consumption.
Yuva fitness bands could be bought on regular occasions, special occasions, festivals and
gift-giving purposes.

b) Product Benefits – In terms of benefits, Yuva can target those who seek both a healthy
and fashionable lifestyle. Youth who are bored with the clunky look that other fitness
wearables provide are also potential customers.

c) User Status – Regular users will be targeted because of the trendy and fashionable look.
Youth who wish to lead a healthy lifestyle and have never used a fitness band will also vouch
for the product.

d) Customer loyalty – Yuva offers an opportunity for youngsters to be loyal customers by

offering a cost-effective and trendy product that helps achieve fitness goals. Yuva has two
products Basic and Pro, youth who are loyal users of different brands may become switchers
to Yuva because of its price competitiveness and fashionable look.

CONCLUSION:

Marketing Segmentation is a valuable tool that helps divide larger markets into smaller
segments and cater effectively and efficiently to the unique needs and wants of the customers.
Segmenting a market helps a marketer to be more efficient and productive and use time,
money and other resources wisely.

As a Marketing head, it is imperative, to focus our efforts on all the types of market segments
so as to increase the brand image and make Yuva recognizable, like a trendy and fashionable
wearable among youngsters. A strong market strategy and segmentation can increase Yuva’s
competitiveness in the market. Likewise, it can prove to be beneficial in improving its brand
reputation and image and enhance its recall value. Thus, improving customer retention,
customer engagement and expand the market.

To conclude, Segmentation is of paramount importance, in order to analyze the market, cater

to the specific needs of your target, increasing your company’s popularity and profitability.
Answer 2:

INTRODUCTION

Promotion is an activity of increasing awareness of a product or brand among customers,

with the view of improving sales and increasing popularity and loyalty of one’s brand or
product. Promotion is one of the most important elements of the Marketing Mix. There are
several types of promotions, they include Advertising, Public relations, Personal selling,
Sales promotions, Direct Marketing and Digital Marketing. Promotions give a business an
edge above the other in the same market that they serve, this is one of the most fundamental
reasons for offering promotions. Demand generation is highly imperative for a business and
promotion plays the role of a spark plug in the marketing mix of the company.

Yuva is a brand that has been recently launched, it is essential for the company to create a
buzz about the product. Being aware of the target audience, it is equally important to create a
great value proposition in order to stand apart from the competition and build strong
relationships. The company has made a decision to sell using the online route. Catering to
the Indian youth who are exposed to the internet, various social media sites and online
shopping portals moving ahead in the digital space seems to be a promising way ahead.

CONCEPTS AND APPLICATIONS:

Promoting online through various channels is one of the most effective ways for a business to
target their audience and boost revenue. A recent survey has revealed that 51% of people now
prefer to shop when products are promoted online. As the Marketing Head I would use the
following online channels to drive sales;

1) Facebook – Facebook is one of the best ways to promote a product online. Facebook has
about 100 million users in India between the age group of 18-24 which makes it an ideal
platform to promote the brand Yuva to the Indian youth. Although their interests and
purchase behaviours are broad, Tech, Retail, Apparel, Fitness products get the most clicks on
Facebook. Setting up a Facebook page and adding a link to the routes back to the brand Yuva
website can help increase sales. Facebook ads, can also prove to be beneficial in routing
traffic to Yuva’s website and maximizing revenue.

2) Instagram – Businesses have adopted Instagram as one of the major revenue-generating

tools. Nearly 75% of India’s Instagram users are between the age group of 18-24, hence
advertising brand Yuva would generate awareness for Yuva on Instagram. Instagram ads
work well in the form of Photo ads, Ads on videos, Ads displayed through Stories,
Collection ads and more. Instagram uses Facebook’s demographics to serve up ads to target a
niche audience thus making it a valuable tool that could contribute to the success of the brand
Yuva.

3) Twitter – Twitter is an excellent platform for businesses to reach and connect with a new
audience. A very important reason for using Twitter for promoting a product is that it costs
less and is relatively easy to set up and maintain a business profile. Engaging with influencers
on Twitter helps increasing followers, improves engagement on its site and drives traffic to
our website. Using appropriate Hashtags helps you gain visibility and encourages
engagement and interactions thus growing business. Twitter Ads can also be considered to
redirect traffic to Yuva’s website and boost sales.
4) Snapchat – Snapchat is a platform that has a great influence on youngsters between the
age of 18-24. It allows the exchange of messages, photos and videos. The story function
Snapchat has can be effective to gain followers and promote the brand Yuva.Snapchat can be
used to feature user-generated content that one can repost to increase engagement and
interactions which will promote the brand significantly.

5) YouTube - YouTube is the second-most widely used search engine in the world. Youtube
has a phenomenal user base of 31 million Indian youth. YouTube can help in SEO and
increase brand awareness for Yuva fitness band. It is imperative to optimize the metadata,
video’s title and description as it would catch user attention and make them curious to know
what Yuva brand has to offer. Demonstration videos can be used to explain the benefits and
use of the product, videos of events such as the product launch can be used to generate
excitement which would help increase traffic and improve sales.

6) E-commerce Websites - Platforms such as Amazon, Flipkart, and Myntra, the big players
of the online marketplace can also be used to increase the sales of the brand Yuva. These
websites are a marketplace for products such as Electronics, Fitness, Beauty, Apparel,
Fashion, etc. Online shopping is preferred a lot by youngsters. Hence, listing on such
platforms would be a viable option to grow a business.

CONCLUSION:

All the points mentioned above would prove beneficial in promoting the brand Yuva to the
Indian Youth and accelerate engagement and drive traffic which would lead to an increase in
sales. Promoting online is has become more popular among various businesses. Online
marketing is highly convenient, quick and amends can be made easier if required. It is a way
of saving costs and helps in catering to the right set of audiences. From data collection to
marketing 24/7, it provides businesses to rightly understand customer’s underlying needs and
wants thus helping them determine their value proposition.

As a Marketing Head one has to remember, to always monitor every activity related to brand
awareness and keep a close watch on competitors. Amends need to be made if the competitor
uses a more aggressive approach. The cost of promotions is also a factor that the Marketing
Head needs to be aware of and regulate efficiently. Promotions being the bread and butter of
the business it is a collective effort of the Marketing team to earn it.

Answer 3a:

INTRODUCTION

Consumer behavior is the study of how consumers behave before, during and after making a
purchase. The study of consumer behavior helps marketers understand consumer
expectations. Studying consumer behavior helps understand consumer buying patterns, the
reasons for them to be making a purchase and different types of products and services they
are intrigued to buy. This study helps Marketers to understand the likes and dislikes of a
consumer and release various products or services into the market based on their liking.
Consumers may look to purchase products and services based on desires. When the need or
want surges consumers start searching for products and services to fulfill their needs. They
may look at all the options at their disposal, taking note of the pricing to a brand’s reputation
before making the purchase. A large number of factors influence consumer behavior which
are as follows;

CONCEPTS AND APPLICATIONS

Demographics and behavioral changes help to analyze and understand consumer behavior.
Consumer behavior is based on the purchasing behavior of individuals where the customer is
the user of the product, he is also the buyer and he also makes a payment towards the product
he has decided to purchase. Yuva is a brand that aimed to target the Indian youth. As the
brand is trendy and stylish it is and caters to the low-price segment there will be factors such
as age, lifestyle, motivations that will influence the buying patterns of the targeted audience.

1) Marketing Factors

Every element of the marketing mix is considered to have the potential to affect the purchase
of the fitness band.

a) Product – The features, physical appearance, packaging and uniqueness would affect
buying decision making.

b) Pricing – Pricing plays an essential role in the buying decision of the product. Audiences
are often price-sensitive. Marketers must ensure that they fix the right price for a product
keeping in mind the price sensitivity of the target audience.

c) Promotion – Elements of Promotion mix such as advertising, personal selling, sales

promotion etc. affect consumer buying behavior. Marketers need to consider the nature of
customers while setting up promotions.

d) Place – Consumer behavior is dependant on the platform which is used to market a

product. Marketers must select the right channels and places to distribute their products
and services.

2) Personal Factors

Personal factors affect a consumers’ buying decision. The personal factors are as follows;

a) Age - Teenagers and Youngsters prefer trendy and stylish apparels, footwear, fitness gear.
Thus, Age plays a vital role in influencing their purchasing behavior.

b) Gender – Consumers’ buying behavior varies across genders. It is seen that men display
different approaches in their decision making and purchasing behavior than women.
 c) Income – People having higher income more is their spending power. But people with
less income have less expendable income that affects their purchasing behavior.

d) Education – Education is one of the major factors affecting consumer behavior. Educated
people understand their needs and wants and buy according to them. A person who is less
educated may have less knowledge or no knowledge of different products and services.

e) Occupation – Occupation also influences the buying behavior. People try to buy
according to their profession. For Example, A corporate professional may purchase more
formal clothes than a hotelier working in a restaurant where he would be expected to wear
a uniform.

f) Lifestyle – The lifestyle of a health conscious person would make him buy products that
would help keep him fit than a person who is not health conscious.

3) Psychological factors

Human psychology is also a major driver when it comes to consumer behavior. Although
difficult to measure, it surely has a powerful influence on buying behavior.

a) Motivation – Motivation of a person drives him/her to act in a certain manner. Marketers

can target consumer motivation to influence their buying behavior.

b) Attitude – The tendency of a person to respond to a situation, object or idea. Consumers

may possess a positive, negative or neutral attitude towards a product or brand that may
influence their purchasing behavior.

c) Perception – The impression formed by a person regarding an object or situation is

perception. When a consumer sees advertisements, promotions and reviews of a
particular brand or product he has his own impression about the product that becomes an
influencer for his purchase.

d) Learning – Changes in an individual caused by information and experience is

knowledge. A consumer who buys a new product and is satisfied with it will prefer
buying it again. Hence learning about a product and its benfits influences consumer
behavior.

e) Beliefs – A thought which a person has about a product or various things is called belief.
It may be because of experience, knowledge, trust or faith in a brand or product.

4) Social factors

The Society around an individual impacts consumer behavior. Buying is affected due to the
following factors.

a) Reference Groups – A reference group is a group of people who are related to each other
or who know each other. For example, friends and colleagues. Mutual friends. These
 people speaking about a product or service to another has an influence on their purchasing
behavior.

b) Family – The family of a person has a very impactful role on his buying behavior.
Children in a family are well informed and spread the word about certain products to their
parents.

c) Roles and Status – People having a higher role in an organization will enjoy higher
status compared to their subordinates. People purchase products based on their roles and
status in a firm.

5) Cultural factors

Culture includes people of various races, religions, values, traditions and ideologies.
Purchasing power is influenced by the culture of a community. Some cultural factors are;

a) Culture - Culture is another influencer of consumer behavior. It is most likely that a

person will follow the cultural values of his family, religious bodies, social environment
etc.

b) Sub-culture – A group within a cultural group is a sub-culture. Sub-cultural groups also

share the same beliefs and values. People from various religions, castes, geographies form
the sub-cultural group.

c) Social class – Every society all over the globe forms the social class. They include people
from various family backgrounds, occupations, education and residences. These people
coming from different classes of the society also has an influence on consumer behavior.

CONCLUSION

Each and every person is influenced by certain factors depending on his/her behavior during
making a purchase. They may be driven by factors such as personal, psychological, social,
environmental etc. but at some point, cultural factors are always seen affecting buying
behavior. Society also has its own effects on consumer behavior. Factors such as age, gender,
perception, motivation also are seen to have an influence on decision-making in the buying
process. Consumers are the most important factor in a consumer market and decision-making
lies in their hands.

As a Marketer for brand Yuva, one should bear in mind all the above factors affecting
buyers’ decision-making and their behaviors and then develop campaigns that would prove to
be beneficial to satisfy consumer wants and needs which ultimately increases sales of our
fitness band.
Answer 3b:

INTRODUCTION

The customer buying process is also called buying decision process. It is the journey that a
customer goes through before making a purchase or buying a product. The buying decision
process journey constitutes from the customer knowing about the product to him making a
purchase or buying the respective product. It is imperative that the marketing team
understands the buyer decision process as it would help them formulate a strategy that would
help a customer to understand that a particular product is launched with the purpose of
solving a problem and taking care of the underlying needs and wants.

The entire process of buying decision is divided into five stages. Recognizing the problem or
need, Searching for information Evaluating alternatives, Purchasing decision and Post-
purchase behavior. Purchasing begins when the customer feels a requirement for a product. It
arises due to internal or external stimuli. Post-purchase stage results in satisfaction or
dissatisfaction due to consumption of the product.

CONCEPTS AND APPLICATIONS

Yuva is a new brand recently launched into the market that is stylish and trendy. The target
audience being youngsters, they would go through the following decision-making process;

1) Problem Recognition / Need Recognition

It is the first stage of the customer purchase/buying decision process. Need is generated when
the customer finds a discrepancy between his desired state and current state. The need is
usually triggered by internal stimuli (hunger/thirst) or external stimuli (advertisements, word
of mouth). In the case of Yuva, a youngster may feel the need to achieve his fitness goals and
would want to monitor it through a fitness device, that’s where his need arises, which he may
want to satisfy.

2) Information search

After the customer recognizes his need, he may want to seek more information to fulfill it and
moves into the information search stage. The buyer to seek information can utilize various
sources. These include personal sources (family, friends and neighbors), social media,
commercial sources like advertisements, manufacturers dealers, etc. One of the most reliable
sources of information is through customer reviews on online channels, which play a crucial
role in impacting or influencing the buying decisions. Another important source of
information is print and visual media
3) Evaluation of alternatives

With the information in hand, customers are likely to evaluate various products and brands
that would best cater to their needs by offering value that they desire for. Generally, buyers
evaluate alternatives on the basis of product attributes, belief in the brand, degree of
importance to choose properly. Customer involvement is also important while making a
purchasing decision. If involvement is high then many brands are evaluated by customers,
else, only one brand may be evaluated.

4) Purchase decision

The purchase decision is also influenced by the surrounding environment. After seeking
information from various sources and evaluating many alternatives on the basis of
satisfaction, involvement, beliefs the customer purchasing choice could be affected by two
factors. First, people who are close to the customer give negative feedback about the product.
The second is unexpected situational factors. Hence, intentions and preferences do not always
lead to making a purchase.

5) Post-Purchase Evaluation

Companies’ work doesn’t stop after a sale is done. The company should be keen on
understanding customer views and behavior, post-sales. The consumer may either be satisfied
or dissatisfied after using the product. If the consumer is satisfied the chances of increasing
brand loyalty and the customer spreading the good word across can be highly beneficial to
the sales of the company, thus enhancing loyalty and retention of clients. On the other hand,
if a customer is dissatisfied or expectations are not met, bad reviews may be spread and
loyalty is affected. Hence it is important that companies promise only what they can deliver.
Cognitive dissonance (Consumer confusion) is also a common factor at this stage. Consumers
feel uneasy about discovering a defect in the product that they have purchased and about not
purchasing another brand.

CONCLUSION

Customers make their decision of buying a new product based on a need or problem that they
would like to have solved. For that, they research and try seeking information about various
products and evaluate a few alternatives. On receiving feedback from friends, family and
peers they set expectations of a particular product in their mind. If a seller promises more and
fails to deliver satisfaction to the consumer it will lead to discontent and that could result in
tainting the brand’s image and reputation. Customers are delighted when the product
performs or delivers beyond expectation. This helps the company to form a larger customer
base and be profitable.

As a Marketing head for Yuva, we need to set genuine claims for our product so that buyers
are satisfied. Understating performance levels enhance consumer satisfaction. Consumers
feeling unhappy about the product purchased and feeling sad for not opting for the other
product in the same category can give rise to cognitive dissonance. Cognitive dissonance is
the discomfort felt by a consumer due to post-purchase conflict. To reduce, cognitive
dissonance a company must measure satisfaction regularly and respond to customer
complaints and grievances. Hence as a marketer, I will pay close attention to all the factors
that a customer may go through while purchasing our fitness band so that we are prepared to
increase our brand loyalty and profit levels.