Effective Marketing Skills for

Farmers

Becky PayneSenior Lecturer in Marketing and Management

Course Outline

bull What is marketing

bull The implications of Consumer Behaviour

bull The Business Model Canvas

bull The Value Proposition Canvas

bull Making use of Market Research

bull Integrated Marketing Communications

What is Marketing

Course Outline

bull What is marketing

bull The implications of Consumer Behaviour

bull The Business Model Canvas

bull The Value Proposition Canvas

bull Making use of Market Research

bull Integrated Marketing Communications

What is Marketing

What is Marketing

Marketing hellip

bull is a management process

bull is about seducingdelighting

customers

bull identifies and anticipates

requirements

bull meets customers wants and needs

profitably

Environmental Scanning Defined

Environmental Scanning is the

collection and evaluation of

information from the wider marketing

environment that might affect the

organisation and its strategic

marketing activities

Elements of the External Environment

Technological

Political

regulatory

Sociocultural

Economic

Competitive

Chosen Business

For example Sociocultural

bull Demographics

bull Culture

bull Attitudes

bull Current issues

Changes in Leisure Activities

bull Earlier retirements

bull Desire for travel abroad

bull Active holiday agendas

Social Amenities for the Golden Age

Environmental Scanning Defined

Environmental Scanning is the

collection and evaluation of

information from the wider marketing

environment that might affect the

organisation and its strategic

marketing activities

Elements of the External Environment

Technological

Political

regulatory

Sociocultural

Economic

Competitive

Chosen Business

For example Sociocultural

bull Demographics

bull Culture

bull Attitudes

bull Current issues

Changes in Leisure Activities

bull Earlier retirements

bull Desire for travel abroad

bull Active holiday agendas

Social Amenities for the Golden Age

Elements of the External Environment

Technological

Political

regulatory

Sociocultural

Economic

Competitive

Chosen Business

For example Sociocultural

bull Demographics

bull Culture

bull Attitudes

bull Current issues

Changes in Leisure Activities

bull Earlier retirements

bull Desire for travel abroad

bull Active holiday agendas

Social Amenities for the Golden Age

For example Sociocultural

bull Demographics

bull Culture

bull Attitudes

bull Current issues

Changes in Leisure Activities

bull Earlier retirements

bull Desire for travel abroad

bull Active holiday agendas

Social Amenities for the Golden Age

Changes in Leisure Activities

bull Earlier retirements

bull Desire for travel abroad

bull Active holiday agendas

Social Amenities for the Golden Age

Issues to Consider

bull Population distribution

bull Household patterns (eg average

number of occupants per household

expenditures across product categories)

bull Available disposable income

bull Changes in consumer preferences

Task 1

Using our case study identify as many

external factors that might impact upon our

ability to sell our products and services

successfullyhellip

(10 minutes)

Consumer Behaviour

Consumer Behaviour looks at hellip

bull The psychology of how consumers think feel reason and

select between different alternatives (eg brands products and

retailers)

bull The psychology of how the consumer is influenced by his or

her environment (eg culture family signs media)

bull The behaviour of consumers while shopping or making other

marketing decisions

bull How consumer motivation and decision strategies differ

between products that differ in the level of importance or interest

that they have for the consumer

bull How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach the

consumer

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Task 1

Using our case study identify as many

external factors that might impact upon our

ability to sell our products and services

successfullyhellip

(10 minutes)

Consumer Behaviour

Consumer Behaviour looks at hellip

bull The psychology of how consumers think feel reason and

select between different alternatives (eg brands products and

retailers)

bull The psychology of how the consumer is influenced by his or

her environment (eg culture family signs media)

bull The behaviour of consumers while shopping or making other

marketing decisions

bull How consumer motivation and decision strategies differ

between products that differ in the level of importance or interest

that they have for the consumer

bull How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach the

consumer

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Behaviour

Consumer Behaviour looks at hellip

bull The psychology of how consumers think feel reason and

select between different alternatives (eg brands products and

retailers)

bull The psychology of how the consumer is influenced by his or

her environment (eg culture family signs media)

bull The behaviour of consumers while shopping or making other

marketing decisions

bull How consumer motivation and decision strategies differ

between products that differ in the level of importance or interest

that they have for the consumer

bull How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach the

consumer

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Behaviour looks at hellip

bull The psychology of how consumers think feel reason and

select between different alternatives (eg brands products and

retailers)

bull The psychology of how the consumer is influenced by his or

her environment (eg culture family signs media)

bull The behaviour of consumers while shopping or making other

marketing decisions

bull How consumer motivation and decision strategies differ

between products that differ in the level of importance or interest

that they have for the consumer

bull How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach the

consumer

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Situational Influences

Defined the situation in which consumers receive

information has an impact on their behaviour

Whether one is alone or in a group in a good

mood or bad in a hurry or not influences the

degree in which one sees and listens to market

communications

Is it better to advertise near a happy or sad TV

program Calm or exciting

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

The Decision-Making Process

Problem Recognition

Information evaluation

Decision

Information search

Post-Purchase Evaluation

Problem recognition

bull What kind of purchase will address problem

bull How can the product be obtained

bull What information is needed

Information Search

The Decision-Making Process

Problem Recognition

Information evaluation

Decision

Information search

Post-Purchase Evaluation

Problem recognition

bull What kind of purchase will address problem

bull How can the product be obtained

bull What information is needed

Information Search

Problem recognition

bull What kind of purchase will address problem

bull How can the product be obtained

bull What information is needed

Information Search

bull What kind of purchase will address problem

bull How can the product be obtained

bull What information is needed

Information Search

Information Search

Ongoing

Search

Purposeful

Search

Information Evaluation

hellip involves a process of narrowing

down a wide list of potential

options to an evoked set typically

by constructing performance criteria

with which to judge choices

Information Evaluation

hellip involves a process of narrowing

down a wide list of potential

options to an evoked set typically

by constructing performance criteria

with which to judge choices

bull Consumers may use rules of thumb to

decide

Choose the cheapest

Choose the most expensive

Select the brand used before

Others

Decision

Post-Purchase Evaluation

bull Affects likelihood of repeat purchase

bull May evoke cognitive dissonance

Post-Purchase Evaluation

bull Affects likelihood of repeat purchase

bull May evoke cognitive dissonance

Purchasing Situations

Routine Limited Extended

Routine Problem-Solving

Situation

bull Low risk low price

Purchase stages

bull Awareness

bull Trial

bull Repeat purchase

Limited Problem Solving

Situation

bull Moderate price

moderate risk

bull Relatively infrequent

purchase

Extended Problem Solving

Situation

bull High cost high risk

bull Infrequent purchase

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Routine Problem-Solving

Situation

bull Low risk low price

Purchase stages

bull Awareness

bull Trial

bull Repeat purchase

Limited Problem Solving

Situation

bull Moderate price

moderate risk

bull Relatively infrequent

purchase

Extended Problem Solving

Situation

bull High cost high risk

bull Infrequent purchase

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Limited Problem Solving

Situation

bull Moderate price

moderate risk

bull Relatively infrequent

purchase

Extended Problem Solving

Situation

bull High cost high risk

bull Infrequent purchase

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Extended Problem Solving

Situation

bull High cost high risk

bull Infrequent purchase

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Personality

Personality can play a role

in consumer behaviour

particularly with high

involvement products (eg

choice of holiday car

location of home)

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Perception

Selective

attention

Selective

retention

Selective

perception

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Hierarchy of Needs

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Consumer Buying Decision-Making Process

Situational

influences

Individual

influences

Group

influences Marketing mix

Decision-making

process

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Group Membership

Affects individuals by helping to

bull Differentiate between essential and non-essential purchases

bull Prioritise purchases where resources are limited

bull Define meaning of a product and its benefits

bull Foresee post-purchase implications

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Other Group Influences

Social class

CultureReference

groups

Family Sub-culture

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Reference Groups

bull Membership

bull Aspirant

eg Harley Davidson

Reference Groups

Family Life Cycle

Reference Groups

Family Life Cycle

Family Life Cycle

Task 2bull Several of your friends tell you about a great movie that has just

come out

bull When you go to your friendsrsquo homes they usually serve some

unusual cocktails This has become a talking point among your

friends Next week your friends are coming to your house

bull You overhear another student stating that Heinz is their favorite

brand of Baked Beans

bull When you flick through a magazine you notice that several

celebrities are wearing the same stylelook of clothes

bull You start a new job You dress very formally on the first day but

you notice that most other employees at your level dress more

casually

bull Yoursquore about to buy a new smart phone and read in the newspaper

that Applersquos smart phone is now the most popular one in the world

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geographic Segmentation

and Instant Hot Chocolate

bull Ideal for UK market (homesequipped with kettles nicebedtime drink or substitutefor tea low calorie treat)

bull Less so for French market(kettles uncommon norm ofmaking hot chocolate withmilk rather than water)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geographic Segmentation

and Instant Hot Chocolate

bull Ideal for UK market (homesequipped with kettles nicebedtime drink or substitutefor tea low calorie treat)

bull Less so for French market(kettles uncommon norm ofmaking hot chocolate withmilk rather than water)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geographic Segmentation

and Instant Hot Chocolate

bull Ideal for UK market (homesequipped with kettles nicebedtime drink or substitutefor tea low calorie treat)

bull Less so for French market(kettles uncommon norm ofmaking hot chocolate withmilk rather than water)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Geographic Segmentation

and Instant Hot Chocolate

bull Ideal for UK market (homesequipped with kettles nicebedtime drink or substitutefor tea low calorie treat)

bull Less so for French market(kettles uncommon norm ofmaking hot chocolate withmilk rather than water)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Demographic Segmentation

bull Age

bull Gender

bull Race

bull Income

bull Occupation

bull Social status

bull Family structure

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Geodemographic Segmentation and Acorn

bull The analysis of people by

where they live

bull Micro-targeting system

bull Targets by neighourhood

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Lifestyle Orientations in the USA

Lifestyle Orientations in the USA

Psychographic Segmentation

bull Lifestyle

segmentation

bull Categories

ndash Activities

ndash Interests

ndash Opinions

ndash Demographics

Who does Quorn target

Source copy Quorn httpwwwquorncouk

Why Use Psychographic Segmentation

bull To define a target market

bull To create a new view of the market

bull To position the product

bull To better communicate product attributes

bull To develop overall strategy

bull To market social and political issues

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Behaviour Segmentation

bull End use

bull Benefits sought

bull Usage rate

bull Loyalty

bull Attitude

bull Buyer readiness

eg usage segmentation in

the soup marketbullDinner party starter

bullWarming snack

bullMeal replacement

bullRecipe ingredient

bullEasy office lunch

bullGet Well Gift

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Once segment definedhellip

What about individual consumerrsquos

relationship with the productservice

hellip ldquoBuyer readinessrdquo

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Behaviour Segmentation

bull End use

bull Benefits sought

bull Usage rate

bull Loyalty

bull Attitude

bull Buyer readiness

eg usage segmentation in

the soup marketbullDinner party starter

bullWarming snack

bullMeal replacement

bullRecipe ingredient

bullEasy office lunch

bullGet Well Gift

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Once segment definedhellip

What about individual consumerrsquos

relationship with the productservice

hellip ldquoBuyer readinessrdquo

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Behaviour Segmentation

bull End use

bull Benefits sought

bull Usage rate

bull Loyalty

bull Attitude

bull Buyer readiness

eg usage segmentation in

the soup marketbullDinner party starter

bullWarming snack

bullMeal replacement

bullRecipe ingredient

bullEasy office lunch

bullGet Well Gift

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Once segment definedhellip

What about individual consumerrsquos

relationship with the productservice

hellip ldquoBuyer readinessrdquo

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Consumer Segmentation Bases

Geographic

GeodemographicMulti-variable

Behaviour Psychographic

Demographic

Once segment definedhellip

What about individual consumerrsquos

relationship with the productservice

hellip ldquoBuyer readinessrdquo

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Once segment definedhellip

What about individual consumerrsquos

relationship with the productservice

hellip ldquoBuyer readinessrdquo

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Loyalty Segments

bull Current loyal user continuing purchase

bull Current customer switching possible

bull Occasional user could become loyal

bull Occasional user switching possible

bull Non-user could become user

bull Non-user unlikely to become user

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

The AIDA Response Hierarchy Model (aka The Loyalty Ladder)

Awareness

Interest

Desire

Action

St Elmo Lewis (1908)

Is it appropriate to define

identify and target segment for

all consumer products

Segmentation Targeting Strategies

Undifferentiated Differentiated Concentrated

Undifferentiated Strategy

Marketing mix The market

eg Petrol Large economies of scale BUT

someone more focused than you may lsquostealrsquo your

customers

Differentiated Strategy

Marketing mix 1 Segment 1

Marketing mix 2

Marketing mix 3

Segment 2

Segment 3

eg Ford and Cadbury more expensive but

spread risk of loss of market share detect new

opportunities earlier

Cadburyrsquos Market Segments

bull Immediate eat

bull Home stock

bull Kids

bull Seasonal

bull Gift

Segmentation Targeting Strategies

Undifferentiated Differentiated Concentrated

Undifferentiated Strategy

Marketing mix The market

eg Petrol Large economies of scale BUT

someone more focused than you may lsquostealrsquo your

customers

Differentiated Strategy

Marketing mix 1 Segment 1

Marketing mix 2

Marketing mix 3

Segment 2

Segment 3

eg Ford and Cadbury more expensive but

spread risk of loss of market share detect new

opportunities earlier

Cadburyrsquos Market Segments

bull Immediate eat

bull Home stock

bull Kids

bull Seasonal

bull Gift

Undifferentiated Strategy

Marketing mix The market

eg Petrol Large economies of scale BUT

someone more focused than you may lsquostealrsquo your

customers

Differentiated Strategy

Marketing mix 1 Segment 1

Marketing mix 2

Marketing mix 3

Segment 2

Segment 3

eg Ford and Cadbury more expensive but

spread risk of loss of market share detect new

opportunities earlier

Cadburyrsquos Market Segments

bull Immediate eat

bull Home stock

bull Kids

bull Seasonal

bull Gift

Differentiated Strategy

Marketing mix 1 Segment 1

Marketing mix 2

Marketing mix 3

Segment 2

Segment 3

eg Ford and Cadbury more expensive but

spread risk of loss of market share detect new

opportunities earlier

Cadburyrsquos Market Segments

bull Immediate eat

bull Home stock

bull Kids

bull Seasonal

bull Gift

Cadburyrsquos Market Segments

bull Immediate eat

bull Home stock

bull Kids

bull Seasonal

bull Gift

Concentrated Strategy

Marketing mix 2 Segment 2

eg Local farm shop detailed customer knowledge high

risk if competitorrsquos spot profit may enter market with

economies of scale of differentiated strategy

(eg supermarkets)

Task 3

What do you think a business model is

What is it for

10 minutes

Task 3

What do you think a business model is

What is it for

10 minutes

Business Model Canvas

Value Proposition

So lets build some models