Customer Insights

SESSION IV

Learning Outcome:

Understand the key factors that

influence customer behavior
 Assessment Criteria

At the end of this session you should be able to:

• Assess the individual factors and group influences on buyer behaviour
• Discuss the adaptation of the marketing mix in the context of
different consumer requirements
 Marketing Mix in Context

Marketing Mix:
The specific collection of actions & associated instruments employed by an
organization to stimulate acceptance of its ideas, products & services is what
constitutes the marketing mix
It is a set of tools which can be coordinated by marketers in order to target their
market segments, generate demand for their offerings and meet customer needs
The Marketing Mix is applicable to both B2C and B2B markets as well as other
business models, and can be applied in a local, regional and international
context
 Marketing Mix in Context

Components of the marketing mix:

Understanding all the components of the marketing
mix is vital when planning
The marketing mix consists of 7 elements:
Traditional marketing mix: consists of 4 elements:
product, place, promotion, and price
Extended marketing mix: consists of 7 elements,
including the 4Ps of the traditional marketing mix
and an additional 3 elements: people, processes,
and physical evidence
 Marketing Mix in Context

Unique attributes of services:

The extended marketing mix was introduced due to the unique
attributes of services:
• Inseparability
• Intangibility
• Perishability
• Variability
 Marketing Mix in Context

Co-ordination and balance:

Whichever version of the marketing mix is used, the key to success is to ensure
that all of the ingredients are coordinated and compatible
The real value of utilizing the marketing mix is ensuring that each of the elements
is appropriate for the target segment and that all elements are balanced to
reinforce each other & offer brand support
In addition to coordination & balance to support a consistent brand message, the
Marketing Mix elements can also be varied to meet the needs of different target
groups
 Marketing Mix in Context

Co-ordination and balance:

The marketing mix can be co-ordinated and adjusted to:
• Link to specific objectives and target markets
• Meet the needs of different customers
• Differentiate and position offerings
• Build and support a brand
• Achieve competitive advantage
• Build and maintain relationships with customers
 Marketing Mix in Context

Marketing Mix Application:

The marketing mix can be applied in differing contexts defined by aspects such as:
• Nature of the product: application to both physical goods and services
• Nature of the business: commercial (B2C, B2B), government (G2C, G2B),
NPOs, educational etc.
• Market Conditions: marketing environment changes
• Size of the organization: small, medium, large
• Scope of operations: local, regional, multinational, global
 Marketing Mix in Context
Marketing Mix Application:
When applying the marketing mix, marketers should consider:
• Segmentation: process of dividing a market into distinct subsets (segments), of
consumers with common needs or characteristics and selecting one or more to
target with a distinct marketing mix. Segmentation provides the information
required to make decisions on the appropriate marketing mix to deploy
• Targeting: involves the evaluation of the segmented markets to determine their
attractiveness and select the most attractive. The selected target market can
then be approached with a targeted marketing mix, ensuring it fits the target’s
needs
• Positioning: the act of designing an organisation’s offering and identity so that
they occupy a meaningful and distinct, competitive position in the target
customer’s mind (Kotler, 2003). It provides a guide as to how to utilize and
present the marketing mix
 Marketing Mix in Context

Marketing Mix Application:

When applying the marketing mix, marketers should
consider:
Value Proposition:
Refers to the value (sum of benefits), an
organization promises to deliver to customer
should they choose to do business with the
organization e.g. purchase a product. This offers
a guide as to what value to deliver, as well as how
to deliver this value to the target audience via the
marketing mix
Value Proposition Canvas
 Marketing Mix in Context

Marketing Mix Application:

When applying the marketing mix, marketers should consider:
Brand, Branding and Brand Equity:
A brand refers to a name, term, sign, symbol, and design or a
combination of these intended to identify the goods or services of
one seller and or group of sellers, and to differentiate them from
those of competitors’ (Kotler, 2000)
Brand Equity refers to the ‘commercial’ value or value premium an
organization generates that is derived from consumer perception of
the brand name of a particular product, (in contrast to a generic
one), rather than from the product or service itself
This identifies the important elements to be consistently present to
Aaker’s Brand Equity Model
the target audience facilitated through deployment of the marketing
mix
 Thank you!

Any Questions?