mkt segment & buyer behavior
TRANSCRIPT
Group Members
Sandip Dey - 412
Hardik Mota - 453
Om Deshpande - 410
Rohan Desai - 408
Mehul Mehta - 446
Mayank Nigam - 460
Market A set-up where two or more parties (also called buyers and sellers) are engaged in transaction of goods and services in exchange of money is called a market.
What is Market Segmentation
A marketing concept which divides the complete market set-up
into smaller subsets comprising of consumers with a similar taste,
demand and preference Where, one market segment is totally distinct
from the other segment.
Need for Market Segmentation
Helps the marketers to understand the needs of the
target audience
Helps the marketers to devise appropriate marketing strategies and
promotional schemes
Gives the customers a clear view of what to buy and what
not to buy
Helps the organizations to target the right product to the right customers at
the right time
Reach a wider audience and promote their products
more effectively
Types of Market Segmentation
Geo
grap
hic
Segm
enta
tion
Beh
avio
ral S
egm
enta
tion
Dem
ogra
phic
Se
gmen
tatio
n
Psyc
hogr
aphi
c se
gmen
tatio
nPersonality traits, lifestyle, or values
Loyalties of customers
Geographical areas
Age, family size, gender, income, occupation, education,
Consumer Buying Behaviour
How individuals, groups and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
Factors affecting Consumer Buying Behaviour Cultural factors -- The fundamental determinants of a person’s wants and behaviour
- Marketers should decide how to best market their existing & new products
e.g. Cultures & Sub Cultures in India
Social factors –(Reference Groups, Primary/Secondary)- Have a direct/indirect influence on attitude & behaviour
-Marketers must determine how to reach and influence
e.g. Primary – Dell & Ford Car, Sec - Religious Associations, Political Parties
Personal Factors- Consumers often select and use those brands which are personality consistent
- Marketers should carefully organize brand experiences to express such
brand personalities
e.g. Newlyweds-US (Wedding Industry), Joie de Vivre(hospitality)
Psychological Factors- Motivation
- Perception
- Learning
- Beliefs and attitudes
Factors affecting Consumer Buying Behavior
Consumer Behavior Applications
Marketing strategy For making better marketing campaigns
E.g. Food advertising
Social marketing Involves getting ideas across to consumers rather than selling
E.g. Campaign by Dr. Marty Fishbein
Make us better consumers Studying consumer behaviour
E.g. Buying a 64 liquid ounce bottle of laundry detergent
1. Traditional
Economical-With limited purchasing power and a set of needs/tastes, a consumer allocates his/her
expenditure over different products at a given prices so as to maximize utility.
Learning- Helps marketers to promote brands with strong drivers, which lead to positive
reinforcement from the consumers.
- Helps to understand how consumer learn to respond in new marketing situations or
how they have learned and responded in the past in similar situations.
Eg. Same brand offering different variants - HP
Models expressing Consumer Behavior
Psychological - How Marketers identify & utilize Human needs and motives that determine
buying process
- Human behaviour is the outcome of Id, Super Ego, Ego
Eg. Buying a luxury car
Sociological- Buyer’s interactions with society play a major role in influencing his buying
behaviour.
- Marketers learn the common behavioural patterns of society & try to influence
the buying pattern of consumer.
Models expressing Consumer Behavior
2. Contemporary Models-
Howard Sheth Model –- Explains rational brand behaviour shown by buyers
- Helps understand consumer behaviour by identifying the variables
which influence consumers viz. Input stimuli, Output, Hypothetic constructs
Nicosia Model – - Explains buying behaviour by establishing a link between the organisation and
its prospective customer.
- It tells us how the activities of the firm influence the consumer and result in his
direction to buy.
Models expressing Consumer Behavior
EBM Model( Engle, Blackwell and Miniard ) –- Assumes consumer behaviour as a decision making process in the form of five
steps and other variables which occur over a period of time.
The five steps are –
1. Problem Recognition,
2. Information Search,
3. Alternative Evaluation,
4. Choice,
5. Outcome
Models expressing Consumer Behavior
2. Contemporary Models-
Organizational Buying Behavior
Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
Characteristics of an Organizational Buying Behavior
Bulk Purchasing
Close relationships and service are needed.
Demand is derived from the production and sales of buyers.
Demand fluctuations are high as purchases from business buyers magnify
fluctuation in demand for their products.
The organizational buyers are trained professionals in purchasing.
Several persons in organization influence purchase.
Lot of buying occurs in direct dealing with manufacturers.
Factors affecting an Organisational Buying Behaviour Environmental factors
Environmental factors leads to technological shift, focus shift of product to demand product the firm is selling, sudden drop in availability of product due to rise in demand.
Organizational factorsChanges in purchasing department organization like centralized purchasing, decentralized
purchasing , changes in purchasing practices like long-term contracts, relationship purchasing are the organization factors.
Interpersonal factorsThese factors are the relationship between buyers and sales representatives of
various competitor companies.
Individual factorsThese factors related to the buyer. What sort of ways of interacting and service are
appreciated by the buyers and what ways are considered as irritants ? Marketers have to understand the reactions of buyers
ExamplesHallmark’s personal expression products are sold in more than 41,500 retail outlets nationwide and account for almost one of every two greeting cards purchased in the United States. Each year Hallmark produces 19,000 new and redesigned greeting cards. Hallmark has also embraced technology. Musical greeting cards incorporate sound clips from popular movies, TV shows, and songs. Online, Hallmark offers e-cards as well as personalized printed greeting cards that it mails for consumers. For business needs.
TVS Motors comes out with product ‘ Jupiter ’ in two-wheeler segment to beat ‘ Honda Activa ’ and ‘ Hero Maestro ’ to acquire the rest market by designing and launching the product as similar to Honda ’ s Activa. So study of the market segmentation and buyers behavior made them to order, purchase and manufacture such range of products.
Distinguishing Factors Organizational market Consumer market
Few buyers and high volume Large buyers and less volume
Customized offerings Commoditized offerings
Close supplier-customer relationship Brand association
Professional & Multiple buying influences Single or family influence on buying
Multiple sales call Few sales call
Distinguishing Factors
Organizational market Consumer market
Derived Demand Direct demand
Less influence on market Direct influence on market
Inelastic demand Elastic demand
Direct purchase from manufacturer Purchase through showrooms, distributors etc
Conclusion
Market segmentation is required to connect to target audience with focused energy.
Products should be designed taking in view the problems of target market segment.
Advertisement is a key in consumer market whereas relationship with customer is
important in organizational customer.