CONSUMER BEHAVIOUR AND

NEUROMARKETING
MODULE -1 INTRODUCTION
 CB- CONCEPTS & DIMENSIONS
 APPLICATION OF CB KNOWLEDGE IN MARKETING DECISIONS – 1.3
 SEGMENTING, TARGETING AND POSITIONING – 1.4
 IMPACT OF TECHNOLOGY ON CB AND STRATEGIC MARKETING
 CHARACTERISTICS OF INDIAN CONSUMERS – 1.5
 CUSTOMER-CONSUMER-BEHAVIOUR

 Customer – purchases and pays for a product or service

 Consumer - is the ultimate user of the product or service; the

consumer may not have paid for the product or service

 Behaviour – a person’s action or reaction to some situation

CONSUMER BEHAVIOR - CONCEPT 1.1

Who is a Consumer?
Consumer is basically a person, or an organizational unit, that plays a role in
the consumption of a transaction, with the marketer, or an entity.
• So, Consumer is not only the buyer, not only the payer, it is he or she is also the
user, he or she also maybe a decision maker.
• The term Consumer, refers to, both the households, and the business units.
CONSUMER BEHAVIOR - CONCEPT 1.1

Why Understanding CB is hard?

Consumer’s behaviour is unpredictable. Consumers may
order least healthy food when there was a healthy choice.
Eg: More number of online consumers order French fry over
green salad.
EG: CB & SUSTAINABLE CLOTHING

 The heavy environmental effect of the fashion industry

 our purchase intention and willingness to pay a premium price for sustainable
fashion products. Our results show that environmental concern and perceived
value positively affect purchase intention and the willingness to pay a
premium price regardless the type.
 CONSUMER BEHAVIOR - CONCEPT 1.1
Role of consumers
• Initiator - Who brings the information to the house, about any product, or any brand
• Gatekeeper - Influences the family’s processing of information. The Gatekeeper has the
greatest expertise in acquiring and evaluating the information
• Influencer - One who influence for purchase
• Decider - Who is taking the decision
• Buyer - Buyer is the person, who is going to pay the cheque, for this particular purchase
• User – The one who ultimately uses the products.
CONSUMER BEHAVIOR - CONCEPT 1.1

Multiple roles of an individual consumers

When a person, feels the need, to buy a packet of cigarette. And,
he only decides, which brand to buy. He only initiates his purchasing
thing. He decides, which brand, he will finally buy. He buys it. And,
he consumes it. So therefore, he actually plays all the roles, all the
five roles, in the buying decision-making process. So, an individual
may play, only a single role also. Individual may play, multiple
buying roles. Or, an individual may play, all the roles, as well.
 CONSUMER BEHAVIOUR – CONCEPT 1.1
 Traditionally, it has been said that, Consumer Behaviour is the study, where we try to
understand, why people buy, any product.
But in current context
 Study of consumers’ choice during searching, evaluating purchasing and using
products and services that they believe would satisfy their needs.
 Consumer behavior explains how people decide to spent their money, time and
effort on goods that marketers offer for sale and describes which products and
brands consumers select and why, when and where they purchase them?
 Consumer behavior incorporates ideas from several sciences including
Psychology, Sociology, Anthropology, Communication.
 CONSUMER BEHAVIOUR – CONCEPT 1.1
Psychology, Sociology, Anthropology,
Communication and CB
Psychology: Study of human minds and mental factors that affect CB (Needs, personality
traits, perception, learned experiences, attitudes)
Sociology: Study of the development, structure, functioning and problems of human
society.
Anthropology: Compares human societies'’ culture and development (Cultural values and
subculture.
Communication: Is the process of imparting or exchanging information personally or
through media channels and using persuasive strategies.
 CONSUMER BEHAVIOUR – CONCEPT 1.1

Characteristics of Consumer Behavior

Systematic Process: ( Need identification, Information
search, Alternative evaluation, Purchase decision, Post
purchase behavior)
Impacted by multiple factors:
Varies across region:
Essential for marketing:
CONSUMER BEHAVIOUR – CONCEPT 1.1

Characteristics of Consumer Behavior

 CB varies from person to person:
 CB varies depends on the product:
 Reflects status:
 CONSUMER BEHAVIOUR – DEFINITION 1.1
Consumer Behavior, are those acts of individuals, directly involving of training,
using, disposing of economic goods and services, including the decision process, that
precedes and determines the acts – Engel 1995.
In this case, precedes means, whatever activities like evaluation of brand, searching
of the information about a particular brand. So, this kind of decisions precede and, what
kind of decisions after consumption also, how do we dispose the product, that also comes
under, the purview of the behavior of the Customer. For example, if you have a bottle of
Mineral Water in India, even after consumption of that Mineral Water, we use it as a
Water Dispenser.
Consumer behavior is the decision process and physical activity, which individuals
engage in when evaluating, acquiring, using or disposing of goods and services – Louden
& Bitta
 CONSUMER BEHAVIOUR – MEANING 1.1
Consumer behavior is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.
It refers to the actions of the consumers in the marketplace and the underlying motives
for those actions. Marketers expect that by understanding what causes the consumers to
buy particular goods and services, they will be able to determine—which products are
needed in the marketplace, which are obsolete, and how best to present the goods to
the consumers.
 CONSUMER BEHAVIOR – CONCEPT 1.1
Why consumer behavior is important?
• It helps marketers understand what influences consumers’ buying decisions.
• By understanding how consumers decide on a product, they can fill in the gap in the
market and identify the products that are needed and the products that are
obsolete.
• Studying consumer behavior also helps marketers decide how to present their
products in a way that generates a maximum impact on consumers.
• Understanding consumer buying behavior is the key secret to reaching and engaging
your clients, and converting them to purchase from you.
 CONSUMER BEHAVIOR – CONCEPT 1.1
Why consumer behavior is important?
• What influences consumers to choose between various options; Consumers’ behavior while
researching and shopping?
• How consumers’ environment (friends, family, media, etc.) influences their behavior.
• Consumer Behavior, provides an eye-opening lesson, regarding the individuals decision-
making to optimize utility from consumption, with their available resources
Now what are the resources ?
Their money
The time – to take the purchase decision
Effort – for searching the product, evaluating the product, acquiring the product.
 CONSUMER BEHAVIOR – CONCEPT 1.1

Why consumer behavior is important?

The study of Consumer Behavior, answers the following questions.
 What the customers are buying?
 Why they are buying it? How they are buying it? When they buy it? Where
they buy it from?
 And, how often, they buy it?
 NATURE & SCOPE OF CONSUMER BEHAVIOR
The knowledge of consumer’s needs and wants attitudes and beliefs helps firm to
improvise their marketing strategies by understanding issues such as
 How consumers think, feel comprehend and select amongst various competing brands.
 How they are influenced by their environment (Eg: culture, family, signs media)
 What is the pattern of shopping behavior they are exposed to?
 What are their motivational parameters?
 How their decision strategies differ between products that differ in their perceived
level of importance
( These understanding help the marketers to adapt and improve their marketing
campaign and strategies to more efficiently reach to the customers.)
 CB CONCEPT - DISCUSSION

Brand name and consumer perception

•BMW – Costly car
•Parle Marigold Biscuit – Affordable brand
CB CONCEPT - DISCUSSION
 CB - DIMENSIONS
Consumer behaviour dimensions are the various factors that influence how consumers
make decisions to purchase goods or services. These include
 Psychological
 Social
 Cultural
 Economic aspects
Psychological factors involve the individual's mental process and include motivation,
perception, learning, and attitude. Social factors refer to the influence of family,
friends, and peers. Cultural factors refer to the influence of a person's culture, such as
language, religion, beliefs, values, customs, and norms. Economic factors involve the
availability of financial resources, such as income and economic trends.
 CB CONCEPT - DISCUSSION

Environmental stimuli
Environmental Stimuli refers to like, how my culture, influences my decision-making? How
my subculture, influences my decision-making?
Eg –
Bengali celebrate Durga Pooja
North Indians celebrate Diwali
Purchasing of this kind of Jewelry, and Dresses, and all this, will go in up search, during
the time of Diwali.
CB CONCEPT - DISCUSSION

Environmental stimuli
• Children, are influencing the decision making.
• Promotional Offers, the Distribution Offers, the Discounts, are also considered
as some Environmental Stimuli.
 CB CONCEPT – DISCUSSION
Pattern of shopping behavior Environmental stimuli

 What is the pattern of shopping behavior, customers are exposed to? Do they want, to go to
the shopping mall, for purchasing?
 Or, do you want to buy, from the Kirana stores? So, and why?
 What are the motivational parameters of the purchase? Am I buying it, for my regular use?
For example, I am a customer, who is buying a dress for my regular use, may be around 500
to 1000 Rupees. But, whenever I am going for an occasional use such as wedding ceremony, I,
me the same customer, is buying a dress of say, 2000 or 3000 Rupees.
 CB CONCEPT – DISCUSSION
Important Vs less important purchase
 What are my motivation to purchase?
 What is the purpose of my purchase?
 how the decision strategies differ between products?
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Purchasing of Important product – More involvement in decision making
If the product is less important – Less involvement in decision making
Eg: Cardiac care service Vs A packet of biscuit – Matter of health / Matter of one week consumption
These understandings help the Marketers, to adopt and adhere to, whatever is happening to
the environment, Customer’s needs. And accordingly, they can improve their marketing campaigns or
strategies, to more efficiently reach to the Customers.
 CB CONCEPT – DISCUSSION
Important changes in the nature of modern
consumers
 Movement from collectivism to the individualism ( Joint family – nuclear family- Single parent )
Individualistic purchase pattern rather than collective.
 Trade up and trade down and Value Vaulters ( Regular wear sandals Vs Party wear shoes )
Socioeconomic pyramidal structure become diamond structure – Middle class up
surging- Seek for premium products with value– Seek Value discounts & Quantity discounts.
 Value Vaulters - Increasing in developing economies ; focus on health & fitness is on the
upsurge due to multiple illness – Mushrooming of Multi gyms, slimming products, Spa, Cosmetic
Surgery.
 Online Shopping Boom - Working woman & busy life style
DISCUSSION – MODULE 1- TOPIC 1.1
Change in Consumer Behaviour during pandemic-video
 How we work to how we shop to how we entertain ourselves. These rapid shifts have
important implications for retailers and ‘ consumer-packaged-goods companies.
 Work - Rise of unemployment On-the-go consumption decline Remote working.
 Shopping and consumption - Surge in e-commerce, Preference for trusted brands, reduced
shopping frequency, Shift to stores closer to home, Polarization of sustainability.
 Life @ HOME – Coffee shop, restaurant, entertainment center.
 Play and entertainment – Preference for digital entertainment, Entertainment channel shift,
Additional playtime.
 Travel and Mobility - Reduction in tourist spend and travel retail Increase in domestic
tourism.
 Communication & information - In-person sampling decline Shift in media consumption
INDIAN CONSUMERS TODAY
 Buying into a better life – high disposable income – eating out, films and
entertainments, credit cards and willingness to buy, Mall is the new culture
 Consumers need constant change and new products

 Loyal to socially responsible brands - safety products

 Rise of the middle class – tech savvy, young educated consumers, use of
Internet and mobile phones

 Indian Consumers have growing appetite for cars, computers and clothes
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

KEY TERMS
 Marketing - is human activity directed at satisfying needs and wants
through exchange processes.
 Human Need – deprivation(lack) state felt to by an individual.
 Wants – are the form that human needs take and are shaped as per
the person’s culture and individuality.
 Demands - want become demands when backed by purchasing
power
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Marketing Concept :
Marketers must satisfy consumer needs
effectively by making only those products
that consumers are likely to buy.
 How to satisfy?
 What consumers are likely to buy?
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3
What is marketing Strategy?
A marketing strategy is a long-term plan for achieving a company's goals by
understanding the needs of customers and creating a distinct and sustainable competitive
advantage. It encompasses everything from determining who your customers are to
deciding what channels you use to reach those customers.
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Marketing strategy helps to determine
 How your company positions itself in the marketplace
 The types of products you produce
 The strategic partners you make and the type of advertising and promotion you undertake.
 Strategy should frame to satisfy customer, through the four elements of the marketing mix
product, price, place promotion.
 APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

“The Best way to serve the customer is the way the

customer wants to be served”
All customers are not alike
 Firms must study customers’ diverse needs
 Satisfy the desires of specific customer segment
APPLICATION OF CB KNOWLEDGE IN MARKETING
DECESION 1.3
What marketers must Know to Apply CB in
Marketing decisions?
 How consumers think, feel comprehend and select amongst various competing
brands.
 How they are influenced by their environment (Eg: culture, family, signs media)
 What is the pattern of shopping behavior they are exposed to?
 What are their motivational parameters?
 How their decision strategies differ between products that differ in their
perceived level of importance ?
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

What Extra Marketers must Understand to

apply CB in marketing during Digital Era?
Online purchase pattern & Trend
Artificial Intelligence – Possibilities of brand
collaboration
 Changing pattern of consumer behavior
Eg: If someone sends their residential address during a Whats app chat,
the recipient of the chat may get a trigger from uber.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Benefits of, anticipating the trends of Customer

Behaviour
 Helps to companies to calculate future gain.
 By understanding the trend the industry can
craft a market by channeling a latent need.
 The firm will be able to quickly adapt the
change.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Impact of anticipation of the CB-Trend

Marketers can bridge this gap, between the affordability and the need: Godrej
Chotookool, they have understood, that there is a latent need of Refrigerator, or a
Cooler, or a Preservator, in the rural India. But, they do not have the buying
capacity, to buy a Refrigerator. So, if you understand this trend, then we can devise

the product, which can bridge this gap, between the affordability and the need.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Why women are buying Cosmetics

They have the habit of using cosmetics.
To boost the confidence level .
To groom themselves .
Habit of spending more on cosmetics.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Why understanding behavioral pattern

 Devise several products
 devise different channel
Eg: Swasthya Chetna campaign of Lifebuoy
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3
Swasthya Chetna campaign of Lifebuoy
Lifebuoy soap in 1990, was not doing so well, So, they came up with a Swasthya Chetna
campaign, in which they have clubbed with several international organizations, for promoting a
product against diarrhea. They actually visited, several schools. And there, they only carried a
Microscope, a Towel So, they have shown the children, that without using any soap, or washing
their hands, how much of germs, they are having in their hands. And, when they have used the
Lifebuoy, and they washed their hands. And then, their hands are put under the Microscope. So,
that time, they can see, how much the germs or so. So, this way, they have promoted this
particular philosophy of antidiarrheal campaign, to the children. And, these children, later
became the ambassadors for Lifebuoy, for their further, or future rural campaigning. So,
anticipating the trend, anticipating the latent needs, anticipating the problems of the Customers,
may give a mileage to the marketers, in future. Second, unearthing the trend, the industry can
craft a market, by channeling a latent need.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

NIRMA VS WHEEL IN RURAL INDIA

If you anticipate the trend in the very beginning, or if you anticipate the
trends quite early, then actually, you can respond to those changes, very quickly. For
identify the Rural India, has an aspiration for a brand. So, that time, as a brand of
detergent, if you identify that, Nirma entered in the Rural India, as the First National
Brand. Seeing this, Hindustan Lever, they have also understood that, there is an inter
land in the rural India. So, their answer to Nirma, was their Wheel. So, which
otherwise, Hindustan Lever was selling their surf, and those kind of variations,
probably to the urban market, mostly. Now, when they have identified that, you
know, Nirma is doing a good business, in the rural India, they have a plan to launch,
Wheel there. So, this is how, you need to respond, very quickly, to the changes.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

Plans, attacks, strategies, towards the

competitor
Even the market leader will have to frame some defense
strategies, to do that a marketer must know.
• The changes, which are going on, in the Customer side,
• Customers mind set
• Customer’s lifestyle
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3
Impact of demographic factors on CB and its application in
marketing decision
 Aging of the population – Strategies to serve product and service
accordingly Eg: Pilgrim tour, Elders’ diaper, apartment system with
medical care.
 Fitness at the rise - Customized fitness service/ Health products
 Single parent households – Impulsive decision making, sometimes,
they are very rational
 Women in the workforce – Increased online purchase
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION 1.3

HOW TANISHQ IS FOCUSING ON WORKING WOMEN POPULATION

Tanishq, which is one of the leading jewellery brand of our country, they are
specifically coming with brand of jewellery, which is known as Mia, that is targeted
towards the working Lady segment. They have recently launched, My Expression contest,
which is a campaign like, the Customers, they can actually share, different kind of
designs.
They first need to login, in the Tanishq website. And then, they can share different
kind of Designs of Jewellery. And, the Top Ten Best Designers, will be called for, around
1 Lakh Rupees Prize money. And, they will be accordingly recognized.
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION

TECHNOLOGICAL TRENDS

 24*7 inter connected world

 More access to information
 Availability of smart products
 Tech savvy customers
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION
(TECHNOLOGICAL TRENDS ON CB)
APPLICATION OF CB KNOWLEDGE IN MARKETING DECESION
Impact of CB on Marketing
 Develop marketing strategies through market segmentation which will help
in redesigning and repositioning of existing products
 Help to determine whether to stick on with Product oriented strategy or to
adopt service oriented strategy.
 Marketers can tailor their products according to customer needs.
 Helps to adopt smart and time saving production and distribution method.
 Instead of rampant promotion marketers will emphasize on emotional,
cultural and social values.
APPLICATION OF CB KNOWLEDGE IN
MARKETING DECESION - DISCUSSION
https://www.youtube.com/watch?v=XowaDm1GEVk
https://www.youtube.com/watch?v=PSLpdM6EYTQ
 SEGMENTING, TARGETING AND POSITIONING – 1.4

Market Segmentation: The process of dividing a market into subsets

of consumers with common needs or characteristics. Each subset represents
consumer needs that are different from those shared by other group.

Targeting: After dividing the market into distinct groups, the company
must select segments that are profitable and reachable, as well as feasibly
targetable within its objectives and resources.
A target market is the group of potential customers for whom the entire
marketing efforts are planned and the marketing mix is designed.
Eg: Dove targets high income consumers and lifebuoy targets the base of the
pyramid category
 POSITIONING:
The process by which a company
creates a distinct image and identity for its
products, service and brands in consumers’
minds. The image differentiates the company’s
offering from competition by communicating
to the target audience that the product, service
or brand fulfills the target consumers needs
better than alternatives.
 WHY MARKET SEGMENTATION

Precise satisfaction of customer needs (Eg: Need may vary for

bachelors, 3 member family and 6 member family. Need varies
between urban and rural customers )
Increased Profits through – better positioning of chosen segment
effective allocation of resources
Retain Customers - appeal to customers at different stages of their life
Segment Leadership- attain maximum profitability
Focused marketing communications - ascertain media channels that
can particularly reach the target group
 MARKET SEGMENTATION
Why Market Segmentation
A Brand Conscious Customer, while buying an Apparel concerned about
brand. But, while buying a brand of Biscuit, He/she may not be brand
conscious. So, while buying Biscuit, and while buying apparel he might be
very different. So therefore, if you have to group the Customers, you have
to group them, based on the Product category also. And, how homogenous,
each group are, with respect to a particular Product category. So therefore,
we say that, Market Segmentation can be defined as the process of dividing
the Market, into groups of individuals, with homogeneous needs. It is the
process of identifying, and describing, the potential target Markets.
 STEPS OF MARKET SEGMENTATION

1) Analysis of consumer product relationship

Understand the characteristics of the Customers, then actually, the marketer can
design a customized Product, based on the needs of a particular group of Customers.
Eg: Godrej Chottocool.
2) Decide the relevant bases for segmenting the market
3) Choose the suitable segmentation strategy
BASE OF MARKET SEGMENTATION
A: QUNATITATIVE FACTORS - Numerical
1) Consumer intrinsic (Demographic) – Age, Gender, Income, Education,
Occupation, Household seize, Family life cycle, Social Class, Religion
2) Consumption based (Determined numerically) – Product volume bought,
rate of purchasing, frequency of engaging -in leisure activities.
B: COGNITIVE FACTORS - Cannot be determined numerically reside in
consumers mind
1) Consumer intrinsic – Personality traits, cultural values, attitude towards
politics and social issues.
2) Consumption based – Benefits sought in products and attitude towards
shopping
BASE OF MARKET SEGMENTATION
 MARKET SEGMENTATION
1) Geographic Segmentation:
A) Region: Eg: North India, South India, Hilly Region, Plain Region.
B) size of the City: Metro Politian city, Rural Village, Tier-1, Tier-2, Tier-3 city.
C) Population Density: How thick is the Population, in that area – Design distribution
channel.
• C) Climatic changes: Humid climate, in Eastern and Western part of the country, we see
that people wear, more of Cotton made Garments. Launching of microwave oven for
specific dishes which are popular in East and West.
 DEMOGRAPHIC SEGMENTATION.
2) Demographic Segmentation:
A) Age: Fluoride free paste for kids, Shoe seize – Adult, Kids
B) Gender: Female Segmentation by Horlicks – Women's, Mothers’ etc.
C) Occupation: Lifestyle vary- Mia my expression context.
D) Family Size: Product design – Pouches sachets- 200/500 gram pack.
E) Education: Smart products.
F) Social Class: Upper/ Middle/ Lower – Eg: Portray the product is for UC.
G) Religion: Religious wise, the festival pattern will differ.
 DEMOGRAPHIC SEGMENTATION.
Implication of Family Life Cycle
H:Family Life Cycle: Bachelorhood- Electronic gadgets, Mobile handsets,
single serving packs, Ready to eat food, Newly Wedded- Honeymoon
packages, Furniture, home decorative Full-Nest-1 (Couple with Children) –
Tour packages. Full Nest 2- With less than 5year child – Baby products,
Medicine , crèche. Full Nest 3- Grown-up children – Education, Apparel,
Gadgets Empty-Nest – Adult children are not staying with family – Tour,
Medical Solitary Survivor – Any one partner is surviving – Medical,
Spectacles, Old age homes.
ADVANTAGES OF DEMOGRAPHIC SEGMENTATION
1) Easiest and most logical way of classifying people.
2) Data can be measured more precisely.
3) Most cost effective way to reach locate and reach specific segment.
4) Using Demographics marketers can identify new segment created by shift in
populations’ age income and location.
5) Determine many consumption behaviors, attitudes, and media exposure
pattern.
Eg: Products are gender specific, Music preference vary based on age – This
information can be used by local radio stations, Leisure activities, media use etc.
vary as per age, education and income.
 GEO-DEMOGRAPHIC SEGMENTATION
 Hybrid segmentation.
 Combine geography & Demographic factors.
 Based on Demography will categories first.
Population density
Urban, Sub urban
Age, Family life cycle
Lifecycle group
adaptation of technology
 PSYCHOGRAPHIC SEGMENTATION

 Relates to Psycho aspects of the Customers.

 Describes the motive of the Customer, to buy a Product.
Eg: Car for luxury/ Car for safety.
 Life style – Frequent user of technology-Online purchasing.
 Perception- what perception do I have, towards a particular Product.
 BEHAVIOURAL SEGMENTATION
 How frequently use the Product ?
 Eg: Cigarette manufacturers, Alcohol manufacturers.
 Companies like Vodafone, Airtel, plan their packages, based on the frequency of use.
 User status: That is, the User's readiness state.
Whether they are immediately ready to purchase.
Whether, they are just got the information, about the Product. So, based on that,
further information could be provided, to the Customer.
What is the loyalty status of the Customer, for a particular brand?
• User situation: It shows that, the Social Environmental condition of the Buyer.
 CRITERIA FOR USEFUL SEGMENTATION

 Measurability : Ability of the firm to obtain information about the seize

nature and Behaviour of a market segment.

 Accessibility : Degree to which the targeted segment can be reached.

 Sustainability : Refers to the seize of the market / Whether the segment

can generate adequate volume of sales for its feasibility or not.

 Congruity : How similar the members within the segment are in terms of
behaviours or characteristics.
 TARGETING
After dividing the market into distinct groups, the company must
select segments that are profitable and reachable, as well as feasibly
targetable within its objectives and resources. A target market is the group
of potential customers for whom the entire marketing efforts are planned
and the marketing mix is designed. Eg: Dove targets high income consumers
and lifebuoy targets the base of the pyramid category.
TARGETING TYPES:
 Undifferentiated strategy
 Concentration strategy
 Multiple segment strategy
 TARGETING TYPES
1) Undifferentiated strategy - We say that, it is a kind of Mass Market. In
Mass Market, we, like Tata salt. Salt cannot be differentiated much. Only pack sizes
could be different. So, this is Undifferentiated strategy.

2) Concentration strategy - that is Single Market, other than Niche Market,

you are targeting. Eg: Tanishq jewelry. It targets, the Upper Income Customers, most
of the time. Niche Market is, when you are targeting, only the Premium Customers.
While, Concentration is, we are targeting a Single Market, it maybe Niche, it may be
otherwise also.
 TARGETING TYPES
3) Multi Segment strategy When you are going for targeting,
multiple segments together. Like, Hindustan Unilever is having, different kind of
Toilet soaps. They are having Lifebuoy, They are having Dove, They are having
Lux. And, several soaps, for different Customers.
 BEHAVIOURAL TARGETING
 Tracking online Navigation
Which are the sites, they are viewing? Which are the kind of Products, that Customers
are viewing online? What kind of Products, they are searching?
 Geographical location and mobile targeting
 Purchase Behaviour
 The information “Arms race’’
 GUIDELINES IN SELECTING A TARGET MARKET

Check the target market’s compatibility with the firm’s

goal and image.
Check the target markets’ match the firm’s resource
capacities and abilities.
Target market should have the realistic profit potential.
Analyze the nature of competition in the target segment.
 POSITIONING AND REPOSITIONING
Positioning means, there is an act of designing the company’s
offering, and image to occupy a distinctive place, in the mind of the
Customers.
• Points of Parity - which brand, you are?
• Points of Difference- how you are different?
Colgate Sensitive and Sensodyne may be, are similar kind of Products. But, they
may have their, own perceive differentiation.
• Chivas regal effect- Price increased two times and convert it as a premium
brand.
 POSITIONING AND REPOSITIONING

Tanishq, when it came, it was positioned as a very sleek Jewellery,

particularly for the Elite, Urban, Working, kind of Customers. But, later on, it

is identified that, the Market is better for the, I mean, the Jewellery Market,

is mostly Concentrated, in the Wedding segment. So, they have position

themselves, as a Wedding Jeweller also. But, they also continued, a different

brand called, Tanishq Mia, for the Working segment.

IMPACT OF TECHNOLOGY ON CONSUMER BEHAVIOUR – 1.5
 consumer behavior and expectation changed
 Digitalization and technology evolution
 More personalized lifestyle
 Usage of smartphone , social media and on demand service offering.
 From pre-purchase selections through to post-purchase consumption.
 The Industry 1.0 started with the usage of mechanization, steam power and weaving
loom for manufacturing activities.
 The introduction of electricity kick started the Industry 2.0
 Industry 3.0 started with the invention of electronic devices and computers that make
automation fully achievable
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
 Industry 4.0 served as the paradigm shift in business models and production
processes that combined new level of management and organizations
development to form horizontal and vertical integration.
 RFID
 IOT
 IOS
 Data Mining
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
The purchase decisions are the outcome of comprehensive process involving broad
 product information research
 brands design evaluation
 quality and price comparison
hence the success in influencing purchase behavior depend largely on how good the
organization understand and satisfy consumer behavior to turn it into purchase decision
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
1) Need recognition:
Imbalance between current status and preferred status.
Imbalance + Sales promotion/ Technology impacted
2) Information searching:
potential influence on product perception including reviews, blogs, banners, television
advertisement, brochures/ Technology impacted
3) Evaluation of alternative:
Choose the best deal that fit the desire / Technology impacted
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
4: Actual purchase process:
there will always be time gap between on decision consideration and actual purchase,
particularly for huge investment involving automobiles, properties, and consumer
durables, but relatively short consideration period for daily non-durable product .
5: Post purchase Behaviour:
5th stage is dealing with the post-purchase activities that concerned with customer
satisfaction and evaluation. It is believed that a satisfied customer will likely be a loyal
brand ambassador that keen to influence other potential customers during information
searching stage and give higher chances of the product being purchased
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
1) The introduction of mobile phone, e-commerce, social media and digital
payment is greatly motivating consumer in modern day.
2) Enhanced internet-based services such as business-to-consumer‘ (B2C) and
business-to- business‘(B2B) environment will eventually impact on the relationship
between the organization with its customers.
3) Usage of information technology can significantly influence on consumer
purchase and spending behavior due to bunch of motivations.
4) Consumer believe that technology innovation can provide solution on simplify
the purchasing journey, improve on customer satisfaction, better bargain for time
and cost, timely product and service delivery, effective buying decisions, choice
and variety, record logging, and finally eliminate the intermediaries.
IMPACT OF TECHNOLOGY ON CONSUMER
BEHAVIOUR – 1.5
5) Consumers believe that information technology can greatly simplify the purchasing
journey with electronic payment system using credit card and digital cash, easier
product information retrieval for comparison and finally purchased order can be done
easily online.
6) Social media including Facebook, Twitter and Instagram platform are flooding with
full product information and can easily be obtainable by the consumer.
7) Both social media and ecommerce platform remain the crucial medium to stimulate
the recognition of demand via customer review and product sharing.
8) Recognition of demand via customer review and product sharing.
9) Evaluating on alternatives before proceed with the actual purchase.
10) Decision making more effective and informed.
STRATEGIC MARKETING
Strategic marketing is a method through which an organization differentiates itself from its
competition by focusing on its strengths to provide better service and value to its customers. In a
nutshell, the goal of strategic marketing is to make the most of an organization's positive
differentiation over its competition through the consumers’ perspective.
• The implementation of strategic marketing involves three questions, which include:
• Where to compete?
• How to compete?
• When to compete?

Phases involved in the strategic marketing planning process

Planning phase
SWOT analysis:
Marketing mix strategy:
MARKETING MIX
 Product

• Price level
• Flexibility
• Discount
• Allowance
• Price terms
• Perceived value
 Price
• Features
• Quality
• Packaging
• Warranty
• Branding
• After sales services
• Place
• Channel
• Exposure
• Locations
• Transit
• Storage
• Coverage

• Promotion
• Channel
• Exposure
• Locations
• Transit
• Storage
• Coverage

• People
• Recruiting
• Training
• Motivation
• Rewards
• Teamwork
• Research
 CHARACTERISTICS OF INDIAN CONSUMERS
• 1) Demographic features
Population seize
Literacy Rate
Population
Sex Ratio
Employment
2) Socio Economic Features
Way of living
Rise in income
Aspirational level
Value consciousness
Working women
Traditionalism
Better purchasing power
Social awareness
 GROWING SECTORS IN INDIA
• IT & Communication
• Automobile industry
• E-Commerce & online shopping
• Retail Industry
• Industries under women empowerment
• FMCG
THANK YOU