chapter 3 consumer type

7/28/2019 Chapter 3 Consumer Type

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Ibrahim Sameer (MBA - Specialized in Finance,B.Com Specialized in Accounting & Marketing)


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Consumer Orientation Customer orientation refers to customer-centric

business. This model provides a personalizedcustomer experience that focuses on establishing

healthy relationships between service providers and

consumers by first identifying a customer's needs.


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Product Orientation This orientation focuses on the production of the

product and is based on the assumption that the more

you can produce, the more you can sell. There is an

assumption that customers wish only to buy the

product produced and have no other motivations forpurchasing.


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Product Orientation For product orientation to be successful, monopoly

market conditions normally have to exist and this is

rarely seen today.


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B2C B2C is an acronym for "business to consumer". A B2C

business is one that provides products or services

direct to the consumer.


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B2B The term business-to-business, also called B2B, is a

way to describe the transactions that take place from

one company conducting commerce with another

company. The consumer in these trades is always

another business.


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B2C vs. B2B


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Definition

What is the meaning of Segmentation?


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Definition Dividing a market into distinct groupswith distinct

needs, characteristics, or behavior who might require

separate products or marketing mixes.


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DefinitionWhat is the meaning of Segmentation?

Segmentation is a way for organizations to divide up

the mass market into smaller groups of potential

customers with similar characteristics.


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Requirement for Segmentation

EffectiveSegmentation

Measurable

Accessible

Substantial

Differential


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Requirement for Segmentation Measurable

Measurable/identifiable and lead to ease of

identification (who is in each segment?)

It is large enough to measure i.e. it is identifiable and

of a substantial enough size.


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Requirement for SegmentationAccessible

Accessible lead to the marketer being able to reach

selected market targets through marketing efforts.


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Requirement for Segmentation It has to be accessible i.e. possible to reach potential

customers via organization's promotion anddistribution channels.

It can be cost-efficiently reached by market

intervention


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Requirement for Segmentation Substantial

Substantial segments that are sufficiently large to be

worthwhile serving as distinct market targets.

It has to be large enough to earn profit


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Requirement for Segmentation Differentiable

Meaningful segments that have different

preferences/needs, and show clear variations in

market behavior/response to specialized marketing

efforts.


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Requirement for Segmentation It has to be stable or durable so that it does not vanish

over time It has to be internally homogeneous (i.e. potential

customers in the same segment prefer the same

product qualities) and externally heterogeneous (i.e. as

different as possible between segments).


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Requirement for Segmentation It needs to respond similarly to a market stimulus.


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Segmentation Bases Different basis of segmentation include the following:

Geographic segmentation

Demographic segmentation

Psychographic segmentation


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Segmentation Bases Geographic segmentation

This is where a market is segmented into geographicsections, for example by country, by region, by city, or

by town. Geographic segmentation works on the

principle that consumers in a certain geographic area

have similar characteristics, values and attitudes.


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Segmentation Bases Certainly this can be seen clearly by some brands who

segment by country, adopting their brand and

products to suit the cultural differences in each

country; for example, by adapting menus, or the

colour/size of packaging, etc.


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Segmentation Bases Demographic Segmentation

Demographic factors include: age, sex, family life cycleand income; and the market is segmented accordingly.

For example, the clothing industry segment on a

mixture of demographic criteria, i.e. clothes for men,

women and children.


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Segmentation Bases Retailers in the clothing trade will target different age

groups, e.g. Top Shop and Top Man target the younger,

18-25-year-old market, whereas Next target the 25-plus

age group. Many brands have developed for customers

at certain stages of the family life cycle.


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Segmentation Bases Common examples should be retailers such as Early

Learning Centre and Mother Care who are aimed at

families with young children, while other brands such

as the Saga travel company specialize in holidays for

pensioners.


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Segmentation Bases Psychographic Segmentation

This is where consumers are grouped together becausethey share similar attitudes, values, beliefs and/or

lifestyles.


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Segmentation Bases For example, some industries such as the entertainment

industry have been developed around lifestyle, and

examples of this can be seen in recent years in the UK with

the growth in private gyms targeted at people wishing to

follow a particular healthy lifestyle; and in coffee shops

catering for a more mobile population, such as business

people and retired people on days out.


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Segmentation Bases Other brands have changed or have been developed to

support a specific consumer group's values, such as the

introduction of ecologically friendly products or

organic foods, while consumers who share concerns

about animal welfare will buy free range eggs.


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Targeting Define Target Marketing?

Consists of a set of buyers who share commonneeds or characteristics that the company decides

to serve.


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Targeting Selecting Target Market Segments

Undifferentiated (mass) marketing

Differentiated (segmented) marketing

Concentrated (niche) marketing


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Targeting Undifferentiated strategy

Sometimes referred to as mass marketing is when an

organization aims its resources at the entire market

with one particular product in the hope that a

sufficient amount of buyers would be attracted.


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Targeting For example, Coca Cola used to do this with its original

Coca Cola drink.


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Targeting Concentrated strategy

Where an organization concentrates its marketing

effort on one particular segment e.g. Rolls Royce cars

aim its vehicles at the premium segment.


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Targeting Differentiated strategies

Where an organization targets several segments and

develops distinct products/services with separate

marketing mix strategies aimed at the varying groups.


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Targeting For example, an airline can offer business class, first

class and economy class tickets with separate

marketing programmes to attract the different groups.


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Q & A

chapter 3 consumer type

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