Strategic Marketing Fall 2013 Lecture Slide 7

1. Strategic Marketing Fall 2013Lecture Slide 7 Instructor : RAZA ILLAHE Lahore Leads University

2. Lecture Contents Approaches to Customer Analysis

3. How do consumers differ ? • Buyers differ enormously in terms of their buying dynamics • Consequently, The task faced by the marketing planner becomes complex because of these differences. • In consumer markets, buyers differ in terms of age,income,educational levels and geographical location.As well as personality, lifestyles and expectations. • In industrial markets, differences are exhibited in the • goals being pursued, • the criteria used by those involved in the buying process, • the formality of purchasing policies, • and the constraints that exist in the form of delivery dates • and expected performance levels.

4. For Marketing Planners, it is essential to understand dynamics of buying process. NOT understanding it can have high costs and competitive setbacks. For example, generally 80% of all New Products launch ,FAIL.Mostly because of lack of understanding of customers' expectations. Focus of this lecture would be on the factors which influence behaviour and how subsequently they influence marketing strategy

5. Understading Buyer Behaviour Regardless of consumer,industrial or organisational environment, There are eight questions that helps understanding of buyer behhaviour. 1 Who is in the market and what is the extent of their power with regard to the organization? 2 What do they buy? 3 Why do they buy? 4 Who is involved in the buying? 5 How do they buy? 6 When do they buy? 7 Where do they buy? 8.What are the customers’ ‘hot’ and ‘cold’ spots? (‘Hot’ spots are those elements of the marketing offer that the customer sees to be important and reassuring – and on which the organization delivers. ‘Cold’ spots are those elements that alienate the customer. An example of this might be poor or inconsistent service.)

6. Answers to these questions can provide the marketing planner with an understanding of the ways in which buyers are most likely to respond to marketing stimuli. Organization that makes the best use of the information should be in a position to gain a competitive advantage. For this reason, a considerable amount of time, effort and money has been spent over the past few decades in attempting to provide the marketing planner with a series of answers. The starting point for this work has been a straightforward stimulus–response model.

7. A Stimulus -Response Model .