Customer needs - Anticipating consumer needs Flashcards
What are the factors affecting buyer behaviour?
- income, standard of living, employment
- consumer confidence (economy)
- advertising/publicity
- physical layouts of shops
- trends
What is niche marketing?
a business targets a smaller segment of a larger market, where customers have specific needs and wants e.g. vegans
what is mass marketing?
a business sells to the largest part of the market where there are many similar products on offer e.g. chocolate
Advantages and disadvantages of niche marketing?
+ less competition
+ clear focus
+ charge higher price
+ loyal customers
- lack economies of scale
- over dependence on market
- vulnerable to market changes
OPPOSITE FOR MASS MARKETING
What is DAGMAR?
model aimed at promotion
Defining
Advertising
Goals
Measuring
Advertising
Results
What is the usefulness of DAGMAR?
formulate a strategy for any new promotional campaign
What is AIDA?
Promotional model specifically for advertising
Attention
Interest
Desire
Action
What are the limitations of AIDA?
- amusing/interesting promotional activities may stimulate interest in the ad but not the product/service itself
- customer may be unable to act on ‘desire’ e.g. finance, economy, etc
What is ATR?
Awareness Trial Repurchase
goes through the steps a consumer will follow when purchasing a product
Key features of ATR?
- awareness is key at start
- building loyal customers
- customer service is crucial during trial and repurchasing
- timing of marketing must be appropriate
what are the limitations of ATR?
- customer may not be able to trial the product e.g. cost
- needs effective market research to find target market
Define market orientation
a business reacts to what customers want
define product orientation?
a business develops a product based on what it’s good at making, not what the consumer wants necessarily
Advantages and disadvantages of product orientation?
+ leads to innovation
+ compete w competitors
- needs product research, testing and focus - costly
Advantages and disadvantages of market orientation?
+ meets customer needs
- needs effective market research - costly
What is the importance of customer service?
- crucial for services
- buying experience
- poor service = bad rep
- investment into staff training = crucial
Explain what is meant by market segmentation?
market is split into different groups with different characteristics and needs e.g. age, gender, geography, class
Advantages of market segmentation?
- opportunities for growth
- target advertising = cost-effective
- maximise profits by matching promotion to different customer types
Disadvantages of market segmentation?
- too much segmentation = costs and loss of sales
- time-consuming
