Anda di halaman 1dari 33

Customer segmentation

And target marketing

The buying process depicts the possible range of activities that may occur in making purchase decisions. The buying process often involves a parallel sequence of activities associated with finding the most suitable merchant of the product in question. The choice of a suitable merchant may actually take precedence over the choice of a specific product.

Buyers Behavior in consumer Market

The consumer buying process Stages :need recognition (need, want , demand) key issues  consumer needs and wants are not the same .  An understanding of consumer need is essential for market segmentation and the development of marketing program.  Marketers must create the appropriate stimuli to foster need recognition.

Stages : information search (passive and active) Key issues :  Consumers trust internal and personal sources of information more than external sources.  The amount of time, effort , and expense dedicated to the search of information depends on: (1) the degree of risk involved in the purchase (2)the amount of experience that the consumer has with the product category, and (3)the actual cost of the search in terms of time and money



Internal sources- personal experience, sourcesmemories ,advice from friends, coworkers etc. External sources magazine , website packaging, display and salespeople. Risk financial risk (home) , emotional (photographer for marriage) risk, personal (surgeon) risk, social risk (clothing) Expertise the consumer has with the product category Cost in terms of time an money

Stages : evaluation of alternatives (consumers choice criteria can change during the process) Key issues :  Consumer translate their needs into wants for specific products or brands.  Consumers evaluate products as bundles of attributes that have varying abilities to satisfy their needs.  Marketers must ensure that their product is in their evoked set of potential alternatives  Marketers must take steps to understand consumers choice criteria and the importance they place on specific product attribute.

 1. 2.


There are several important considerations for the marketers during the evaluation stage. The marketers product must be in the evoked set of potential alternatives. It is vital that marketers take steps to understand consumers choice criteria and the importance they place on specific product attributes. Marketers must often design marketing programs that change the priority of choice criteria or change consumers opinion about a products image.

Stage :purchase decision Key issues :  A consumers purchase intention and the actual act of buying are distinct concepts.  Several factors may prevent the actual purchase from taking place.  Marketers must ensure that their product is available and offer solutions that increase possession utility.

The key issue for marketers during the purchase stage are product availability and possession utility.  Product availability is critical , the goal is to put the product within the consumers reach wherever that consumer that consumer happens to be.  Ease of taking possession , delivery ,installation , packaging credit.

Stage : post purchase evaluation Key issues :  Post purchase evaluation is the connection between the buying process and the development of long term customer relationships.  Marketers most closely follow consumers response (delight, satisfaction , dissatisfaction, or cognitive dissonance )to monitor the products performance and its ability to meet customers expectations.


Post purchase evaluation Delight .the products performance greatly exceeds the buyers expectations. Satisfaction .the products performance matches the buyers expectations Dissatisfaction ..the products performance falls short of the buyers expectation. Cognitive dissonance (post purchase doubt).the buyer is unsure of the products performance relative to his or her expectations.

Factors that effect the consumer buying process

Decision making complexity: the complexity of the complexity: purchase and decision making process is the primary reason why the buying process will vary across consumers and with the same consumer in different situations. Individual influences: some individual factors , such as age, life cycle occupation and socioeconomic status are fairly easy to understand and incorporate into the marketing strategy. Social influences: s, such as culture ,sub culture , social class , reference group, and family have a profound impact on what , why , and how consumers buy. Situational influences:

Common situational influences in the consumer buying process

Physical and spatial influences  Examples: retail atmospherics ,retail crowding, store layout and design.  A comfortable atmosphere or ambience promotes lingering ,browsing and buying.  Crowded stores in terms of people or spatial layout may cause customers to leave or buy less than planned.



Social and interpersonal influences : Examples: shopping in groups , sales people , other customers. Consumers are more susceptible to the influences of other consumers when shopping in a group. Rude salespeople can end the buying process. Obnoxious or other customers may cause the consumer to leave or be dissatisfied.


Temporal (time) influences Example ,lack of time , emergencies and convenience Consumers will pay more for products when they are in a hurry or face an emergency . Lack of time greatly reduces the search for information and the evaluations of alternatives. Consumers with ample time can seek information on many different product line alternatives.

Purchase task or product usage influence  Special occasions  Buying for others  Buying a gift  Consumers may buy high quality products for gifts or special occasions.  The evoked set will differ when consumers are buying for others as opposed to themselves.

Consumer dispositional influences  Stress  Anxiety  Fear  Fatigue  Emotional involvement  Good/bad mood

Consumers suffering from stress or fatigue may not buy at all , or they may induldge in certain products to make themselves feel better. Consumers who are in bad mood are exceptionally difficult to please. An increase In fear or anxiety over a purchase may cause consumers to seek additional information and take a great pains to make a right decision.

Buyer behavior in business market

Unique characteristic of business market  The buying center economic buyers, technical buyers , and users  Hard and soft costprice , downtime ,opportunity cost , and human resource cost.  reciprocity  Mutual dependence -suppliers shut down , loss of the customer.

The business buying process

Problem recognition  Developing product specification  Vendor identification and qualification  Solicitation of proposals or bids  Order processing -negotiating the credit terms, setting firms delivery dates and any final technical assistance needed to close the purchase.  Vendor performance review

Environmental condition  Organizational factor

Market segmentation


Traditional market segmentation approach: Mass marketing Differentiated marketing-multi segment and marketingmarket concentration Niche marketing higher price for the product that match their specialized needs. Does not attract competitors Customers find highly desirable.

Individualized segmentation approach  One to one marketing  Mass customization  Permission marketing personalization (payment term , shipping terms , delivery location)

Criteria for successful segmentation

Identifiable ad measurable  Substantial  Accessible  Responsive  Viable and sustainable-the segment must sustainablemeet the basic criteria for exchange including being ready, willing ,and able to conduct business.

Identifying market segments

Segmenting consumer market  Behavioral segmentation  Demographic segmentation  Psychographic segmentation  Geographic segmentation

VALS consumer profile

Innovators  Thinkers  Achievers  Experiencers  Believers  Strivers  Makers  Survivors

Segmenting business market

Type of organization  Organizational characteristics  Benefits sought or buying processes  personal and psychological characteristics  Relationship intensity

Targeting marketing strategies

Single segment targeting  Selective targeting  Mass market targeting  Product specialization  Market specilaization

Single segment targeting

Selective targeting

Mass marketing

Product specialization

Market specialization