(5 )Analyzing Consumer Markets

Consumer market:  refers to the market where people purchase products/services for consumption and

are not meant for further sale.
Culture: Culture is the fundamental determinant of a person’s wants and behaviors acquired through
socialization processes with family and other key institutions.
Motivation: Motivation is defined as energizing, directing and sustaining employee efforts.
Subcultures: Nationalities, Religions, Racial groups, Geographic regions
Nationalities: Nationality is a legal identification of a person in international law, establishing the person
as a subject, a national, of a sovereign state.
Religions: as the belief in and worship of a superhuman controlling power, especially a personal God or
gods.
Geographic regions: A region is a basic unit of geographic study. It is defined as an area that has
unifying characteristics.
Model of Consumer Behavior: Consumer behavior is the study of how people make decisions about
what they buy, want, need, or act in regards to a product, service, or company. Consumer behavior
models include the black-box, complex, and personal-variable models.
Perception: Selective Attention, Subliminal Perception, Selective Retention, Selective Distortion.
State Farm Mental Map: around a long time, safe, responsive, personal service, good reputation,
dependable etc.
Perceived Risk: Functional, Physical, Financial, Social, Psychological, Time
Stages between Evaluation of Alternatives and Purchase: purchase decision, attitude of other,
purchase intention, evaluation of alternative
Characteristics of Social Classes: Within a class, people tend to behave alike, Social class conveys
perceptions of inferior or superior position, Class may be indicated by a cluster of variables (occupation,
income, wealth), Class designation is mobile over time.
Social Factors: Reference groups, Family, Social roles, Social roles
Reference Groups: Membership groups, Primary groups, Secondary groups, Aspirational groups,
Dissociative groups.
Sources of Information: Personal, Commercial, Public, Experiential
 (Analysis Business market)
Business market: is defined as the selling of products and services to other businesses to be resold or
used to make other items or services for sale. An example of a business market is selling wood to
a company to use in creating its products.
Organizational buying: refers to 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.
Opportunism: is some form of cheating or undersupply relative to an implicit or explicit contract.
Top Business Marketing Challenges: Expand understanding of customer needs, compete globally as
China and India reshape markets, Master analytical tools and improve quantitative skills, Reinstate
innovation as an engine of growth, Create new organizational models and linkages
Characteristics of Business Markets: Multiple sales calls, Derived demand, Inelastic demand,
Fluctuating demand, geographically concentrated buyers, Direct purchasing, Fewer larger buyers, Close
supplier-customer relationships, Professional purchasing, Many buying influences.
Buying Situation: Straight rebuy, Modified rebuy, New task
The Buying Center: Initiators, Users, Influencers, Deciders, Approvers, Buyers, Gatekeepers.
8 Stages in the Buying Process Buy phases; Problem recognition, General need description, Product
specification, Supplier search, Proposal solicitation, Supplier selection, Order-routine specification,
Performance review.
Vendor Analysis: Vendor analysis is the assessment of current or prospective suppliers with respect to
their Vendor's business model. vendor analysis is to determine your company's purchasing needs.
Handling Price-Oriented Customers: Limit quantity purchased, Allow no refunds, Make no
adjustments, Provide no services.
Order Routine Specification: Stockless, purchase plans, Vendor-managed inventory, Continuous
replenishment.
Establishing Corporate Trust and Credibility: Expertise, Likeability, Trustworthiness.
 (Marketing Segment and targets)
A market segment: consists of a group of customers who share a similar set of needs ad wants.
A target market: refers to a group of potential customers to whom a company wants to sell its products
and services.
Customization: combines operationally driven mass customization with customized marketing in a way
that empowers consumers to design the product and service offering of their choice.
Effective Targeting Require: Identify and profile distinct groups of buyers who differ in their needs and
preferences, Select one or more market segments to enter, Establish and communicate the distinctive
benefits of the market offering.
Four levels of Micromarketing: Segments, Local areas, Individuals, Niches
Demographic Segmentation: Age and Life Cycle, Life Stage, Gender, Income, Generation, Social Class.
Preference Segments: Homogeneous preferences: exist when consumers want the same things.
Diffused preferences: exist when consumers want very different things.
Clustered preferences: reveal natural segments from groups with shared preferences.
Loyalty Status: Switchers, shifting loyal, Split loyal, Hard-core.
Effective Segmentation Criteria: Measurable, Substantial, Accessible, Differentiable, Actionable.
Steps in Segmentation Process: Needs-based segmentation, Segment identification, Segment
attractiveness, Segment profitability, Segment positioning, Segment acid test.
Segmenting for Business Markets: Demographic, Operating Variable, Purchasing Approaches,
Situational Factors, Personal, Characteristics.
Segmenting Consumer Markets: Geographic, Demographic, Psychographic, Behavioral
Geographic: segmentation involves segmenting your audience based on the region they live or work in.
Demographic: Demographic segmentation refers to the categorization of the target market based on
specific variables like age, education, and gender.
Psychographic: Psychographic segmentation capitalizes on this by dividing customers based on
psychological factors, which include behaviors, personalities, lifestyles, and beliefs.
Behavioral: Behavioral segmentation is the process of sorting and grouping customers based on
the behaviors they exhibit.