Applied Marketing Notes 2
Applied Marketing Notes 2
Applied Marketing Notes 2
Marketing
Session 2:
Influences
on
Customer
Behaviour
Segmentation , Targeting and Positioning
Segmentation can be defined as the process of dividing a varied and differing group
of buyers into smaller groups, within which broadly similar patterns of buyers’
characteristics and/or needs exist.
Targeting is the process of deciding how many of these segments the organisation
has the skills and capabilities to serve. Targeting should not be confused with
segmentation
Positioning, is the determination of the position the product or service will occupy in
the minds of the customers versus the competition.
More satisfied customers – communication and products are more relevant to them.
An effective STP approach must be developed from the situation analysis and
should answer the following questions:
How do we define the market – what is the scope and constitution?
Consumer Segmentation
The segmentation of consumer and business to business markets have different
approaches. The segmentation of consumer markets falls into 4 key areas:
demographic; geographic, psychographic and behavioral.
Multi-level Segmentation
Like consumer markets, business to business markets can also be segmented using
a number of different bases and can also adopt a multi-level segmentation approach.
Salesforce focus on their most important segments by breaking down the market by
geography, company size, business role and industry.
Targeting Markets
Positioning
When developing positioning, in line with 4C’s model (Jobber & Fahy, 2009)
marketers should aim for;
Creating Personas
Personas depict a static picture of the organisation's ideal buyer, their habits, needs
and behaviour.
Data for personas can be captured from a range of internal and external sources.
Such as market research reports, government data, sales data, Google analytics,
social media analytics etc.
Kotler’s Black Box Theory : A Model for Buyer Behaviour
There are several influences on purchasing and we know that certain outcomes will
take place but very little is known in terms of what goes on inside the prospective
purchaser’s head.
The Decision Making Process (DMP) is a model that attempts to identify the stages a
consumer may pass through towards purchase and beyond. A
Post purchase evaluation is important because if customers are not satisfied with the
decision, they have made then they are unlikely to repeat it. This is referred to as
cognitive dissonance
Influences on the Consumer Buying Process
The principle aim is to help firms and businesses improve their marketing strategies.
This is achieved by an understanding of how the environment may influence an
individual to purchase items, along with other influences from other factors (friends,
family, media and signs).
The consumer buying process is influenced by factors that can be grouped as either
individual to the consumer that is buying, or social factors that relate to the wider
groups that they belong to.
AIDA
Early adopters: Often respected opinion leaders within their social groups,
seen often as role models for others.
Laggards: Traditional, last in the social system, often they pay little attention
to opinions of others, they have more a clear point of reference in the past to
overcome, are often suspicious of new innovations and their decision process
is often lengthy.
Involvement Theory
Perceived Risk
Influence of Groups
Purchases can and very frequently are influenced by others. The influencers are
referred to as the Decision Making Unit.
This is important for marketers because if they do not understand the various roles in
the DMU marketing activity may fail as it is not aimed at the right person within the
DMU.
Reference Groups
Any groups, whether formally or informally constituted, to which an individual either
belongs or aspires to belong to.
You work for a small food manufacturer which sells its products online and through
several chains of retailers. Your manager has asked you to identify the key
differences between consumer and organisational buying behaviour to help improve
the sales performance of the sales team. Which of the following factors best explains
these differences?
1. Complexity
2. Time involved
3. People involved
4. Rationality
5. Information requirements
b. 1, 2 and 4 only
c. 2,4and5only
d. 1, 4 and 5 only
You work for an organisation that supplies parts to the automotive manufacturing
industry. You have recently been joined in your office by a new member of staff who
has come from a consumer marketing background. As part of their induction process
you explain the key influences on organisational buying behaviour. Which of the
following best describes the factors involved?
1. Straight rebuy, group factors, social and cultural factors and organisational
factors