Decision making process

1. Customers
Who is
important?
What are
their choice
criteria?
How
do they buy?
Where
do they buy?
When do
they buy?
Understanding customers : the key questions

2. What is consumer behaviour
Study of how the individuals ,groups or
organisations
select, buy, use and dispose
of goods, services, ideas or
experiences to satisfy their needs

3. Factors influencing
consumer behaviour
Cultural factors
Social factors
Personal factors
 Age and stage in the life cycle
 Occupation & economic circumstances
 Personality & self concept
 Lifestyle & values

4. Brand personality
Sincerity (down-to-earth, honest, wholesome and cheerful)
Excitement (daring, spirited, imaginative & up-to-date)
Sophistication (upper-class & charming)
Ruggedness (out doorsy & tough)
E:g-
Levi’s-ruggedness
MTV- Excitement
CNN-competence

5. Reference groups
Membership groups
 Primary group
 Secondary group
Aspirational group
Dissociative group

6. Buying roles
INITIATOR
INFLUENCER
PAYER
DECIDER
BUYER
USER

7. Consumer buying process
Need recognition &
Problem awareness
Information search
Evaluation of alternatives
Purchase decision
Post-purchase
behavior

8. Need recognition
Routine needs
Evolved needs
Emergency needs
Which product to buy?
Internal Stimulus
External Stimulus

9. Information search
Which brand to buy?
sources
Retrieving information from
memory
•Personal-
family,friends,neighbours,acquintances
•Commercial-advert, web-site, sales-persons
•Public- mass media, consumer rating organisation
•Experiential-handling, examining, using the product
Internal
sources
External
sources

10. Entire
Set
Of
Brands
Available
Or
known
Consideration
Set
Evoked
set
Inert
set
Inept
set
Choice
set

11. Market segmentation
Dividing a market into distinct groups
with
•Distinct needs
•Distinct characteristics or
behavior
who might require separate products or marketing mixes.

12. Why segmentation
Through market segmentation, companies divide large, heterogeneous
markets into smaller segments that can be reached more effectively
and efficiently with products and services that match their
unique needs

13. Bases of segmentation
Demographic-
Age & Lifecycle
Gender
Life stages
occupation
Behavioral-
Benefits sought
Purchase occasion
Brand loyalty
Usage
Perception& beliefs
Geographic-
Urban
Rural
etc.
Psychographic- Lifestyle
Personality

14. Strategies of segmentation
•Niche - marketing One product one market strategy
•One product many market One product, with
different
variations in the product
but catering to the
needs of different market
segments
•Many product one market Different products catering to the
needs of one consumer segment.
•Multiple niching Many product many market

15. Market segmentation
1.Identify bases for
segmenting the
market.
2. Develop segment
profiles.
Target marketing
3.Develop measure
of segment
attractiveness
4. Select target
segments
Market positioning
5. Develop
positioning for
target segments.
6. Develop a
marketing mix for
each segment.

16. Market segmentation – Company identifies different ways
to segment the market.
&
Develop profiles of the resulting
market segments
Target marketing- evaluating each market segment’s
attractiveness
&
Selecting one or more of the market
segments to enter.
Marketing positioning- setting the competitive positioning for
the product
&
creating a detailed marketing mix

17. Target market
A target market is a group of people or organisations
for which a company
Designs
Implements and
Maintains
a marketing mix intended to meet the needs of that group,
resulting in mutually beneficial and satisfying exchanges.

18. Product positioning
The way the product is defined by
consumers on important attributes – the
place the product occupies in consumer’s
minds relative to competing products.
A product’s position is the complex set of
 Perception
 Impression &
 Feeling
That the consumers have for the product compared with competing
product

19. Result of positioning
Customer- focused value proposition
A cogent why the target market should buy the product
Positioning is:
Not what you do to a product .
But what you do to the minds of the prospect.

20. Company
&
product
Target
customers
Benefits price Value
proposition
Perdue
(chicken)
Volvo
(station wagon)
Domino’s
(pizza)
Quality-
conscious
consumers of
chicken.
Safety-
conscious
“upscale”
families.
Convenience-
minded pizza
lovers
Tenderness
Durability and
safety
Delivery speed
and good
quality
10%
premium
20%
premium
15%
premium
More tender
golden chicken at
a moderate
premium price
The safest, most
durable wagon in
which your family
can ride.
A good hot
pizza,delivered to
your door within 30
minutes of
ordering at a
moderate price.

21. Choosing a positioning strategy
Three steps:
•Identifying a set of possible competitive advantages
upon which to build a position
•Choosing the right competitive advantages
•Selecting an overall positioning strategy
The company must effectively communicate and deliver the chosen
position to the market

22. Decision on positioning requires determining the
Competitive frame of reference by identifying
•The target market
•The competition
•The ideal points-of-parity (POP)
•The points-of-difference (POD)
&
Identifying the

23. CATEGORY MEMBERSHIP
the products or set of products with
which a brand competes
&
which functions as a close substitutes
Target market
•Buyer behavior
•Identify the consideration set consumer use in making
brand choices
•Buying roles

24. Point-of-difference (PODs)
Attributes and benefits consumers strongly associate with a brand ,
positively evaluate, and believe that they could not find to the same
extent with a competitive brand.
Point-of-parity (POPs)
Associations that are not necessarily unique to the brand but may
infact be shared with other brand.
•Category POPs
•Competitive POPs

25. Category point- of- parity
Associations consumers view as essential to be a legitimate and
credible offering within a certain product or service category
They represent necessary- but not necessarily sufficient-conditions
for brand choice
Competitive point-of-parity
Associations designed to negate competitors points-of-difference

26. Choosing POPs & PODs
Relevance
Distinctiveness
Believability
There are three deliverability criteria
Feasibility
Communicability
Sustainability