Relationship Between Consumer Behavior & Target Markets | caztuning.info
Marketing: Consumer Behavior and Segmentation. Types of Buying Decision Behavior Difference between brands Significant Complex buying . and sellers work more closely together and build long-term relationships. The trouble with this method of segmentation, however, is that there is often not a good correlation between personal characteristics of consumers and what they. highlighting the relationship between the consumer, the product, and the situation in segmentation validates the fact that a range of consumer behaviours can.
For example, a large segment may be profitable even though the competition it attracts tends to keep prices down. A smaller segment may be profitable if, for example, it is price insensitive or can be targeted efficiently e.
Some segments are not cost effective.
For example, a small group of consumers would love to have a no- sports news channel similar to CNNbut we are just, too small a group to profitable. There are three levels of segmentation. Levels here refer to the tradeoff between the difficulty of implementing a segmentation scheme and the benefits that result. The first level of segmentation involves personal characteristics-e. This is a fairly easy method of segmentation to employ because: For example, if we want to reach males ages fifteen through thirty-five, we can find out which TV shows they watch from firms such as Nielsen similar services exist for newspapers and magazines.
The trouble with this method of segmentation, however, is that there is often not a good correlation between personal characteristics of consumers and what they want to buy. Perhaps males may want more flavor, and be willing to settle for more calories, in a soft drink than women do, but there is a great deal of within group variation.
Interestingly, it has been found that people who live in the same area, as operationalized by their zip-codes, tend to share a many consumption relevant characteristics.
Consumer Behavior Market Segmentation
Firms such as Claritas will sell profiles of zip-code based communities that can be used in aiming messages at particularly receptive residents.
For example, the U. However, one could be couch potato who comes home and eats fast food while watching television.
- Relationship Between Consumer Behavior & Target Markets
- Consumer Behavior - Market Segmentation
The other could be a health enthusiast who spends his time exercising. Several firms have tried to come up with psychographic profiles of consumers. Since most of these programs are proprietary, there is not a lot of published research on their usefulness.
The firm had seen a disappointing response to its advertising campaign featuring a herd bulls used to symbolize the bull market. A lot of consumers responded, but not the wealthier ones the firm had hoped for.
The second level is benefit desired—that is, segmenting on what someone wants rather than who he or she is.Consumer Behavior - Market Segmentation
Implementing segmentation on benefit desired is more difficult since we have to research for each product category. This method, then, lends itself extremely well to strong product positioning—we make a product that offers specific benefits, and we aggressively promote this fact to interested consumers.
A drawback, however, is some efficiency is lost in marketing communication. While we can look up which television programs males ages twenty to thirty watch, we do not have this information for the segment of consumers that prefers scented over unscented hand soap.
Target markets are specific market segments that businesses identify as being more likely to buy their goods or services than other market segments. An understanding of consumer behavior provides important clues that can help you identify market segments most likely to respond to your product or service offerings and marketing communication programs. Quantitative Market Segmentation When identifying target markets, marketers commonly employ four types of quantitative and qualitative market segmentation tools to assess influences that affect buying decisions: Geographic and demographic influences help to identify market segments by quantitative, observable factors such as location, age, family income, gender, education attainment, occupation and ethnicity.
These observable influences provide insight into "who is" your target market and can help make inferences about cultural, social and lifestyle influences that drive consumer behavior. Qualitative Market Segmentation Psychographic and behavioral influences are qualitative, emotional factors that help explain "why" your target market behaves as it does.
Psychographic influences include beliefs, attitudes, personality, values, opinions, interests and self image.
Role of Market Segmentation in Judging Consumer Behaviour
Behavioral influences relate to relationships that consumers have with brands in terms of knowledge, experience, usage and perceptions. These include brand attributes, perceived brand benefits, brand loyalty, usage rates and usage occasions.
They are relevant in terms of assessing levels of cognitive versus intuitive involvement in buying deliberations. Low-Involvement Buying Decisions Consumer decision-making is different for purchases that require high involvement than purchases that don't.