consumer behavior and business strategy

8/4/2019 Consumer Behavior and Business Strategy

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Session 2

Salma Rahman


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Market driven strategies are characterized by:1. Shared vision about the market and future change2. Selecting avenues for delivering superior value to

customers3. Positioning the organization and its brands in the

marketplace using distinctive competencies4. Recognizing potential value of collaborative

relationships with customers, suppliers, distributionchannel members, internal functions and evencompetitors

5. Reinventing organizational designs to implementand manage future strategies


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Consumer Value

Marketing Strategy

process

Market AnalysisMarket SegmentationMarket StrategyImplementation

Study of Consumers


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CONSUMER

Market AnalysisConsumer

CompanyEnvironmental

Political/ Legal

ImplementationIn marketplace

Marketing MixStrategies

ProductPrice

PromotionBrand 7Rs

MarketSegmentation

DemographicSituational

Psychographic


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Consumer insight & product development

Consumer Environment

Corporate strengths and resources Current and potential competitors

Market environment


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Consumer insight & product development

Product failuresA new product must satisfy customers needs, wants and

expectations, not those of a management team.


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Consumer insightis an understanding of

consumers expressed and unspoken needs andrealities that affect how they make life, brand

and product choices.


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Corporate strengths and resources

Current and potential competitors

Market environment


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One market customized(standardized product) products

or

Market Aggregationor

MassMarketing


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Identifying an appealing to consumers with similarbehavior, not necessarily similar characteristics.


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CONSUMER CHARACTERISTICSDemographicsAge Education Marital Status

Gender Family size OccupationEthnicity Nationality Religion

Income Life stage Living arrangements

PsychographicsActivities Interests Opinions

Purchase and consumption behavior

Shopping location preferences Brand loyaltyFrequency of purchase Benefits sought

Media used How usedPrice sensitivity Rate of use

Values

CulturePersonality


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GEOGRAPHIC AL CHARACTERISTICSNational boundaries

Regional boundariesUrban vs. rural

Post codes

SITUATIONAL CHARACTERISTICSWork vs. leisure usage

TimeWhere used


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Consumer buying behavior vs.Consumption

analysis

Or

Why & how people buy vs. Why & howpeople consume


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CONSUMER INFLUENCES

External influences

Culture and values

Demographics, income and social

class

Reference groups and households

Marketing activities

Internal influences

Needs, motives and emotions

Perceptions and memory

Personality & lifestyles

Attitudes

Decision-process influences Problem recognition

Information search

Alternative evaluation

Outlet selection

Purchase

Post purchase

MARKETINGDECISIONS

Market Segmentation

Target segment/s

Single or multiple-target

segments

Product positioning

Key product differentiation

variables

Position relative to competition

Marketing Mix Product features

Price level

Promotional appeal

Place (distribution)


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1. Why did you choose the school at which you are now studying?2. Why did you buy your clothes from Levis, Wrangler or any other retail chain?

3. How do you allocate the 24 hours of each day between studying, working,watching television, sleeping, eating, working out in a gym, listening to musicor participating in a sport?

4. Do you usually cook your food from scratch, microwave it or buy it alreadycooked in a restaurant to eat there or take home? Why do you eat certain typesor brands of food most often?

5. If you had the choice of attending a sports event, visiting a museum attendinga concert, or spending the evening with games and internet chats on your

computer, which would you choose?

6. When you buy a car, do you plan on buying a new or used car? Which model ormake will you most likely choose?7. Which advertisements do you like and which do you dislike? How do they

influence your purchasing decisions?8. Did you donate blood this year? Do you give time or money to help people with

medical or economic problems, or do you leave those problems for otherpeople to solve?

9. Did you vote in the last election? For whom and why?

consumer behavior and business strategy

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