customers, segmentation, target marketing what individuals are my prospects?
TRANSCRIPT
Customers, Customers, Segmentation, Segmentation,
Target MarketingTarget MarketingWhat What
Individuals are Individuals are My Prospects?My Prospects?
Customer Buying ProcessCustomer Buying Process
Need RecognitionNeed Recognition Information SearchInformation Search Evaluation of AlternativesEvaluation of Alternatives Purchase DecisionPurchase Decision Post-purchase EvaluationPost-purchase Evaluation
Need RecognitionNeed Recognition Unmet needs identified – Current Unmet needs identified – Current
Satisfaction does not equal desired Satisfaction does not equal desired satisfactionsatisfaction Internal StimuliInternal Stimuli
Hunger, thirst, fatigueHunger, thirst, fatigue External StimuliExternal Stimuli
Advertising, window shopping, salespeople Advertising, window shopping, salespeople interactionsinteractions
Example: You brush your teeth this morning Example: You brush your teeth this morning and realize you are out of toothpasteand realize you are out of toothpaste
DemandDemand
Wants are not equal to demand in Wants are not equal to demand in the marketplacethe marketplace
Demand requires the customer’s Demand requires the customer’s ability and willingness to purchase ability and willingness to purchase backs up their want for the backs up their want for the product.product. You want a BMW … but you also You want a BMW … but you also
NEED to eat and pay rent!NEED to eat and pay rent!
Information SearchInformation Search
How much time, expense, and effort?How much time, expense, and effort?
RISK … financial, social, emotional, RISK … financial, social, emotional, personalpersonal Passive information searchPassive information search
Attentive and receptive to ads, information Attentive and receptive to ads, information encounteredencountered
Active SearchActive Search Seek out additional information by browsing Seek out additional information by browsing
the Internet, visiting the showroom, talking to a the Internet, visiting the showroom, talking to a salesman or associatessalesman or associates
Evaluation of Evaluation of AlternativesAlternatives
Evoked Set – various products or Evoked Set – various products or brands consideredbrands considered
Evaluation becomes a desire or Evaluation becomes a desire or want for a particular product or want for a particular product or service/brandservice/brand
If my product isn’t in the evoked If my product isn’t in the evoked set, not in the game!set, not in the game!
Purchase DecisionPurchase Decision
Assist the customer’s decision by Assist the customer’s decision by reducing riskreducing risk Warranties Warranties Service contractsService contracts Credit availability or lay awayCredit availability or lay away
Post Purchase Post Purchase EvaluationEvaluation
Delight – exceed expectationsDelight – exceed expectations Satisfaction – meet expectationsSatisfaction – meet expectations Dissatisfaction – do not meet Dissatisfaction – do not meet
expectationsexpectations Cognitive Dissonance – unsure of Cognitive Dissonance – unsure of
the product’s performance relative the product’s performance relative to expectations … nagging feeling to expectations … nagging feeling you made the wrong decisionyou made the wrong decision
Factors Affecting the Factors Affecting the Consumer Buying Consumer Buying
ProcessProcess Decision Making ComplexityDecision Making Complexity
Higher risk, more involved, need infoHigher risk, more involved, need info Social InfluencesSocial Influences
Culture, reference groups, family, Culture, reference groups, family, opinion leadersopinion leaders
Situational InfluencesSituational Influences Never go to the grocery store hungry!Never go to the grocery store hungry! Theme Park and Unexpected Rain!Theme Park and Unexpected Rain!
MarketMarket a set of a set of
individuals or individuals or organizations organizations that desire a that desire a product or product or service and service and are willing to are willing to buy itbuy it
Business MarketsBusiness Markets
Commercial Commercial MarketsMarkets Buy raw materialsBuy raw materials Facilitating goods Facilitating goods
and servicesand services Communications, Communications,
transportation, transportation, agricultureagriculture
Reseller MarketsReseller Markets Channel Channel
intermediariesintermediaries WholesalersWholesalers RetailersRetailers BrokersBrokers *resale for a profit*resale for a profit
Business MarketsBusiness Markets
Government Government MarketsMarkets Federal, state, Federal, state,
county, citycounty, city Purchases related Purchases related
to services to services provided provided
Fire trucks, Fire trucks, ambulances, ambulances, supplies and office supplies and office materialsmaterials
Institutional Institutional MarketsMarkets Non-commercial Non-commercial
organizationsorganizations Churches, Churches,
charities, schools, charities, schools, hospitalshospitals
Buy finished goods Buy finished goods that facilitate their that facilitate their missionmission
Business Market Business Market CharacteristicsCharacteristics
The Buying CenterThe Buying Center Group decisionGroup decision
Hard and Soft CostsHard and Soft Costs Monetary, shipping, installation (hard)Monetary, shipping, installation (hard) Opportunity cost, downtime, human Opportunity cost, downtime, human
resource concerns (training)resource concerns (training) Example: New software for billingExample: New software for billing
Business Market Business Market CharacteristicsCharacteristics
ReciprocityReciprocity One business sells copiers and services One business sells copiers and services
and it is understood they will use your and it is understood they will use your advertising servicesadvertising services
Mutual DependenceMutual Dependence Nissan is disrupted if Calsonic goes Nissan is disrupted if Calsonic goes
downdown Walmart loses business, Proctor and Walmart loses business, Proctor and
Gamble revenues declineGamble revenues decline
Business Buying Business Buying ProcessProcess
Problem RecognitionProblem Recognition Develop Product SpecificationsDevelop Product Specifications Vendor ID and QualificationVendor ID and Qualification Solicit Proposals and BidsSolicit Proposals and Bids Vendor SelectionVendor Selection Order Processing Order Processing Vendor Performance ReviewVendor Performance Review
Market Matching Market Matching StrategiesStrategies
Mass-Market StrategyMass-Market Strategy Segmentation StrategiesSegmentation Strategies
Multisegment StrategiesMultisegment Strategies Focused (Concentrated) Focused (Concentrated) StrategiesStrategies
Segmentation Segmentation StrategiesStrategies
Concentrated Concentrated StrategyStrategy one one
marketing marketing mixmix
one segment one segment of the larger of the larger marketmarket
Ex: PorsheEx: Porshe
Multisegment Multisegment StrategyStrategy two or more two or more
marketing marketing mixesmixes
two or more two or more segmentssegments
EX: GMEX: GM
Individualized Individualized Segmentation StrategiesSegmentation Strategies
One to One MarketingOne to One Marketing Unique product for each customer in Unique product for each customer in
the target segment (B2B), Burger the target segment (B2B), Burger King, HealthcareKing, Healthcare
Mass CustomizationMass Customization Build a BearBuild a Bear
Permission MarketingPermission Marketing Opt in for email communicationsOpt in for email communications
No Segmentation No Segmentation StrategiesStrategies
Mass-Market Strategy Mass-Market Strategy (Undifferentiated (Undifferentiated Approach)Approach) one marketing mixone marketing mix target entire market for target entire market for
entire product categoryentire product category EX: Ford Model A/TEX: Ford Model A/T
Marketing Marketing SegmentationSegmentation
Identifying groups of people Identifying groups of people with shared characteristics with shared characteristics within the broad markets for within the broad markets for consumer or business productsconsumer or business products
aggregating these groups into aggregating these groups into larger segments according to larger segments according to their mutual interest in the their mutual interest in the product’s utilityproduct’s utility
Steps to Steps to SegmentSegment Identify the needs structure of the Identify the needs structure of the
consumer populationconsumer population Group the customers into Group the customers into
homogeneous segmentshomogeneous segments Id factors that are correlated with Id factors that are correlated with
the segments (segmentation the segments (segmentation variables)variables)
Select your target marketSelect your target market Develop your positioning strategyDevelop your positioning strategy
Segmentation Segmentation VariablesVariables DemographicsDemographics
age, income, sex, age, income, sex, family life cyclefamily life cycle
GeographicsGeographics regions, climate, regions, climate,
densitydensity Behavioral Behavioral
benefits sought, benefits sought, usage rates (80/20 usage rates (80/20 principle), principle), purchase occasionpurchase occasion
Psychographic Psychographic SegmentationSegmentation
MotivesMotives Personality – Personality –
fashionistas, fashionistas, techiestechies
Lifestyles –healthy, Lifestyles –healthy, antiestablishment antiestablishment - independent- independent
GeodemographicGeodemographic College studentsCollege students
Target MarketsTarget Markets
these are the aggregate these are the aggregate segments that you will segments that you will direct your marketing direct your marketing efforts towardsefforts towards
You’re prospects!You’re prospects!