BM7101 Understanding

Markets and Customers

Your
Marketing,
Future
Consumer
Plan
Behaviour &
Segmentation

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Agenda

9:30 - 10:00 – Module overview and introduction

10:00 - 11:00 – Marketing STP/Identity and consumption
11:00 - 11:15 – Break
11:15 - 12:30 – Group Influences/Cultural Influences
12:30 - 1:15 – Lunch
1:15 – 3:00 – Active vs Passive Consumers/Values and perception/Preview of
remaining lectures
3:00 – 3:15 Break

3:30 – 4:30 Summary / Assignment brief and next steps

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 Definitions

Consumer behaviour defined: Consumer behaviour defined:

Consumer Behaviour is the activities The dynamic interaction of affect and

people undertake when obtaining, cognition by which human beings
consuming and disposing of products conduct the exchange aspects of their
and services (Blackwell 2001) lives (Bennett 1995)

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 A model (consumer dynamics)

Cognition (thought
process)

Personal and
environmental factors

Affect Conation (intended

(emotion) behavior)

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Marketing
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 Guess the product

Number of Toyota Prius cars sold in the

United Kingdom (UK) from 2000 to 2018*

https://www.statista.com/statistics/310740/
toyota-prius-sales-in-the-united-kingdom/
Technology Adoption

Diffusion of Innovation, Innovation

adoption lifecycle Rogers,1962

Adaptors
Innovators

Laggards
Majority

Majority
Early
Early

Late

2.5% 13.5% 34% 34% 16%

 The Marketing Mix – 4Ps

All marketing decisions need to be informed by the behaviour of the

target audience

• Price

• Product

• Place (channel)

• Promotion

And three new ones…

• People
• Process
• Physical Objects

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 Customer Experience

What type of experiences are customers looking for?

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Beyond decision making models

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Rise of Images

• From product demonstration and verbal information-based

to image-based displays

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 Rise of images

Apple – Colour flood

https://youtu.be/d8LJXcQhD0k

Sony Bravia Ball Bounce Commercial

250000 multi coloured bouncy balls down
the streets of San Francisco.

http://www.youtube.com/watch?v=7DrFY3
H-u8w
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Module Introduction

T Mobile:
https://www.youtube.com/watch?v=NB3NPN
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Utilising products to express
yourself: A strong or a soft side?

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Products and Inner desires

• E.g. Sexual desire and taboo in Kuwait

by Fajer al Mutawa (2010) European Advances in
Consumer Research
• Objects as safe tools to express inner desires

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And a thought before the break…

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Module Introduction

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 Background

• Increased competitive environment.

• Proliferation of new products.

• Mass marketing Target Marketing.

Organisations must identify which market subgroups they can

serve best and most profitably.

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 Mass Customisation

• Consumer Uniqueness

• ‘Because you are worth it’ L’Oreal

• One-to-one marketing (fine-tuned segmentation)

• e.g. Original Levi Stores in New York (the perfect

fit for just $10 more, saving storage costs)

• Brands: signs of the importance of symbolic

meanings in the marketplace

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STP :
an interconnected process

Source: Kotler et al. (2001)

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Segmentation

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 STP stage one:
Segmentation

• Segmenting markets: a foundation for

superior marketing performance

• = dividing the market into smaller groups

of buyers with distinct needs,
characteristics, background, values or
behaviours that might require separate
marketing strategies or marketing mixes.

• Large heterogeneous markets 

smaller distinct groups
(similar within its members &
dissimilar across members of other groups)

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 Criteria / Bases
for Market Segmentation

1. Geographic 3. Behavioural
• Region • Attitudes
• Country • User status
2. Demographics • User rate
• Age • Occasion
• Gender • Benefits sought
• Family life cycle • Loyalty status
• Family size
• Occupation
4. Psychographics
• Income
• Personality traits
• Education • Physiographic lifestyle
• Nationality • Values
• Religion
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Depths of Segmentation

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 Demographics

•Very commonly used.

•Consumer’s needs & wants often vary
according to demographic variables (i.e. age,
gender).
•Often used after segmentation, to describe Gillette
the segment

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(Demographics) Family Life
Cycle – Holiday Preference

How would you expect their needs/wants to differ?

And what would you suggest if you were say TUI?

•Bachelor
•Married with no children
•Full Nest
•Empty Nest

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 Psychographics –
Schwartz Value Domains
(56 Different Values organised into 10
Motivational Domains)

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(Behavioural) User status

a. Influencer
b. Purchaser
c. User

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 Market Segmentation

Using Multiple Segmentation

Bases

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 A caveat...

But not all of the above criteria always give

you useful segments....

So what makes a segmentation effective?

How are you going to decide which of the
criteria are the most effective?

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Requirements for Effective
Segmentation

To be useful, market segments must be:

Measurable Accessible

Substantial Differentiable

Actionable
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Evaluating Target Markets

Which one(s) to go for?

•Segment size and growth.

•Company objectives and resources.

•Expected profitability.

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STP

• After we have identified different market

segments based on our criteria, we have
finished our segmentation process (S)

• We then need to judge which of these are

worth targeting (T) and what image to build
for our offering (product/serving) (P)

(Cravens and Piercey ch.4 is an excellent read)

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Positioning

“ Positioning is the act of

designing the company’s
offer and image so that it
occupies a distinct and valued
place in the target customers’
minds.”
(Ries & Trout, 1976)

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Differentiation and Positioning

Developing a Positioning Statement

To (target segment and need) our (brand) is

(concept) that (point of difference)

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 Repositioning examples

From ‘owning’ the distinctive attribute of speed in the pizza

delivery business (‘ 30 Minutes or It’s On Us’) ...

...to the company delivering the hottest and freshest pizza ( a

pizza bag ‘that thinks it’s an oven’)

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Key Points

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