High Income people with positive attitude towards flying becomes viable Target segment
for Airline
2) Develop profiles of resulting segments
Each segment is profiled in terms of distinguishing Attitudes
Behaviour
Demographics
Psychographics
Media consumption habits
Segmentation Class Exercise:
Ready to Cook Wheat Flour for Non-users
Identify Segment profitability determine segment profitably. High value product, layal
customers, niche, unique distribution channel, low competition segments more profitable
Final Segment evaluation Evaluate the segment scheme based on the results of the
previous steps.
-Requirement of Effective Segmentation
1. Measurability Degree of size and purchase power
2. Substantiality Large & Profitable
3. Accessibility Should be in position to be reached
4. Actionability Marketing programs can be implemented
Total Consumer
price
Product
Value
Service
Value
Personal
Time Cost
Effort Cost
Money Cost
Psychic Cost
Store salesman
d. Image Differentiation
o Symbols (Versace)
o Colour / Design(Heineken)
o Atmosphere( Shoppers stop)
o Event ( Redbulls)
7) What you mean about positioning, Define with example.
Answer)- An act of designing and communicating the companys
offer so that it occupies a DISTINCT & VALUED place in the target customers mind.
NOT what you do to product
Is what you do to customers mind
Important Criteria
Select a differentiator
o
o
o
o
o
o
Important
Distinctive
Superior
Communicable
Affordable
Profitable
Example
Huggies
Fair &
Handsome
Dollar
Ball bearings
Industrial hardware
Communication equipment
Heavy engineering
Cars
Machinery manufacturers
Commercial vehicles
Automobile ancillaries
Semi-conductors
Ship building
Fasteners
AREAS /
CHARACTERISTICS
INDUSTRIAL MARKETS
CONSUMER MATKETS
Market
GEO Concentrated
Few Buyers
Products
Technically Complex
Customized
Non Technical
Standardized
Service
Very Important
Somewhat important
Channel
Buyer Behavior
Various Functional
specialists involved Mainly
Rational buying decisions.
Interpersonal relationship
between buyers and sellers.
Promotional
Importance to personal
selling
Importance to Advertising.
Pricing
Competitive bidding /
Negotiated prices
MRP
42
Purchasing in Govt. units
DGS&D agency finalizes rate contracts for standard products for Govt. units.
Main Tasks / Procedure : Registration of the firm & its Products, Tender Advertisements,
no negotiation in Open tenders, negotiations done in closed / limited tenders.
Orders Finalised on lowest bidders (suppliers offering Lowest prices / Landed Costs)
11) PHASES IN INDUSTRIAL BUYING DECISION MAKING PROCESS.
Answer)PHASE 1 :- Recognizing A problem / need
PHASE 2 :- Determining Characteristics & Quantity of needed product / Service
PHASE 3 :- Developing specifications of the product
PHASE 4 :- Searching & Qualifying Suppliers
PHASE 5 :- Obtaining & Analyzing suppliers offers
PHASE 6 :- Evaluating & Selecting Suppliers
PHASE 7 :- Selecting an order routine
PHASE 8 :- Post Purchase evaluation
12) Buying Situations / Buy-classes.
Answer)- 1.New Task / New Purchase
2. Modified Re-buy / Change in supplier
3. Straight Repeat Purchase
Each of these situations would have different implication for Marketers & Buyers
1. New Task / New Purchase :
buyers have limited knowledge and experience of the new product/service
More information is obtained/Sought
More people are involved as risks are more
Decisions take longer time
2. Modified Re-buy / Change in supplier :
when the firm is not satisfied with the performance of existing suppliers, or
there is a change in product specifications
3. Straight Repeat Purchase :
Such decisions are routine
Buying centre
It is also called purchase committee , buying committee or decision making unit
consists of individuals and groups
who take part in buying decision making process,
have common objectives & share common risks.
Component
(2)
Differences
among individual
buyers caused by
factors :
Background of
individuals
(Education, role
& life style).
Their information
sources. Active
Search Perceptual
Distortion
Satisfaction with
past purchases
Variables that
Determine if
buying decision is
autonomous or
joint : A) Product
Specific Factors :
Time Pressure
Perceived Risk
Type of Purchase
B) Company
Specific Factors :
Company Size
Company
Orientation Degree
of Centralisation
Component (1)
Componen
t (3)
Methods used
for conflict
resolution in
joint-decision
making
process :
Problem
Solving
Persuasion
Bargaining
Politicking
Situational Factors
Supplier or
Brand Choice
Example 62
Real Good Chilled & Yummies chicken at D-Mart
Owner Rakesh Jhunjunuwala
Purchase Manager Raja Reddy
Store Manager (Vashi) Shefali Jain
Merchandiser Sneha Ghole
Company Salesman Shambhu Nath Verma
Role Play (Buyer behaviour)