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Customer Analysis



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  • 1. Customer Analysis
  • 2. Introduction
    • Marketing planning is ultimately driven by the marketing strategist,s perception of how and why customers behave as they do, and how they are likely to respond to the various elements of the marketing mix.
    • Despite the complexities of the market, it is imperative that the marketing strategist understands in detail the dynamics of the buying process.
  • 3. Model Of Buyer Behaviour
    • Who is in the market and what is the extent of their power with regard to the organisation?
    • What do they buy?
    • Why do they buy?
    • Who is involved in buying?
    • How do they buy?
    • When do they buy?
    • Where do they buy?
  • 4. Factors influencing consumer behaviour
    • From the viewpoint of the marketing strategist, the mix of cultural, social, personal and pschological factors which influence are NON CONTROLLABLE.
    • Efforts should be put into understanding how they interact and ultimately how they influence purchase behaviour.
  • 5. The significance of Culture
    • Culture: These are broad set of values or a set of beliefs broadly shared.
    • Sub culture: This include nationality groups, religious groups, racial groups, and geographical areas all of which exhibit degrees of differences in ethnic taste, cultural prefernces, taboos, attitudes and lifestyles.
    • Social Class:
  • 6. Social Class
    • The influence of subculture is subsequently affected by a third set of variables that is social stratification.
    • People within a particular social class are more similar than those from different social classes.
    • It is determined by a series of variables such as occupation, income, education and values rather than by a single variable.
    • Individual can move from one social class to another.
  • 7. Social Factors
    • Reference Groups
    • Family
    • Social Role and Status
  • 8. Reference group can be divided into four types
    • Primary membership groups: Informal and to which individuals belong and within which they interact.
    • Secondary membership groups: More formal, and less interaction typically takes place. Eg Trade Unions, Religious Groups, Professional Societies.
    • Aspirational Groups to which an individual would like to belong
    • Dissociative Groups whose values and behaviour the individual rejects.
  • 9. Family
    • For many products it is the family which exerts the greatest single influence on purchase behaviour:
    • (A) Family of orientation(Parents, Brothers and Sisters)
    • (B) Family of Procreation(Spouse and Children)
  • 10. Three patterns of decision making within the family
    • Husband Dominant: Life insurance, Cars, Televisions.
    • Wife Dominant: washing machines, carpets, kitchenware, and non living room furniture.
    • Equal: Living room furniture, holidays, housing, furnishing and entertainment.
  • 11. Role and Status
    • Here the major task before marketing manager is to position the products and brands in such a way that they reinforce the message suited to particular individuals and groups.
  • 12. Personal Influence on Behaviour
    • Age and life cycle stages
    • Occupation
    • Economic Circumstances
    • Lifestyle
    • Personality
  • 13. Psychological Influences
    • Motivation
    • Perception
    • Learning
  • 14. Motivation
    • Marketers should understand various motives involved.
    • Maslow,s Theory
    • Hergbergs’ Two factor theory
  • 15. Perception
    • It is the way in which motivated individuals perceive a given situation that determines precisely how they will behave.
    • Selective Attention: e.g Simply because of the enormous number of stimuli that we are exposed to each day, a substantial number are either ignored or given only cursory attention
  • 16.
    • Selective Distortion: It means that messages that confirm preconceived notions are far more likely to be accepted than those that challenges these notions.
  • 17. The buying decision process
    • There are three distinct elements involved in buying decision process.
  • 18. Three elements
    • Buying roles
    • The type of buying behaviour
    • The decision process
  • 19. The five buying roles
    • The initiator
    • The influencer
    • The decider
    • The buyer
    • The users
  • 20.  
  • 21. Buying Process
    • Recognition of problem
    • The search for information
    • Evaluation of the alternatives
    • The purchase decision
    • Post purchase behaviour
  • 22. Recognition of problem
    • Internal Stimuli
    • External sttimuli
  • 23. The Search for information
    • Personal Sources
    • Public Sources
    • Commercial Sources
    • Experimental Sources
  • 24. The influence of product on Marketing Strategy
    • Aspinall proposed a framework for classifying products.
    • He suggested five product characterstics that should provide the basis for identifying the products most effective marketing strategy.
  • 25. Five Chrs
    • The rate at which the product is purchased, consumed, and replaced( Replacement Rate)
    • The gross margin
    • The amount of adjustment that need to be made to the product so that it matches the precise need of customer
    • The time of consumption over which the product delivers the utilities demanded by the consumer.
    • The amount of searching time that consumer is willing to give to the product.
  • 26. Aspinall proposed three categories of product
    • Red Goods: High replacement rate, a gross margin, requires little adjustment, and have little consumption and searching time.
    • Orange goods: medium score across all five dimensions.
    • Yellow goods: Low rate of replacement, high gross margin, require substantial adjustment, and have significant consumption and searching time.