marketing short course - harper adams university
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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
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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 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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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 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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
Problem recognition
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
Other Group Influences
Social class
CultureReference
groups
Family Sub-culture
Reference Groups
bull Membership
bull Aspirant
eg Harley Davidson
Reference Groups
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
Reference Groups
bull Membership
bull Aspirant
eg Harley Davidson
Reference Groups
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
Reference Groups
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
Consumer Segmentation Bases
Geographic
GeodemographicMulti-variable
Behaviour Psychographic
Demographic
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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)
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
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
Business Model Canvas
Value Proposition
So lets build some models
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
Business Model Canvas
Value Proposition
So lets build some models
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
Business Model Canvas
Value Proposition
So lets build some models
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
Business Model Canvas
Value Proposition
So lets build some models
Value Proposition
So lets build some models
So lets build some models
top related