Fashion AMM230 Promotion
Chapter 2 Consumer Behavior
The Role of Consumer Behavior in Promotion Consumption
Acquisition
Use
Disposal
The Role of Consumer Behavior in Promotion
Product Acquisition
Recognize need
Gather information
Search, evaluate, chose among brands
Product Use
Post purchase Evaluation
Product Disposal
Recycle
Reuse
Discard
The Role of Consumer Behavior in Promotion The Product Life Cycle
Introduction
Fashion innovators Fashion specialists
Acceptance
Early majority (34% of consumers) Late majority (34% of consumers)
Regression
Fashion laggers
See chart on pg 33 of text
Market Segmentation
The subdivision of the marketplace into homogeneous subsets of consumers, called target markets or market segments Mass market
Niche market
Bases for Market Segmentation
Demographic Segmentation
Age - Generation Z (1995-Present)
Echo Boomers/Gen Y (1977-1994) Generation X (1965-1976) Baby Boomers (1946-1964) Silver Streakers (1912-1945)
Bases for Market Segmentation
Gender Education Occupation Race and Ethnicity
Income
Disability Status
Family Size and Structure
Bases for Market Segmentation
Behavioristic Segmentation
Profiling consumers based on product usage, loyalty, or buying responses to a product or service.
Psychographic Segmentation
Profiling consumers based on activities, interests, and opinions
Who are we? Classroom demographics
Maslow's Hierarchy of Needs
Self-
Actualization
Esteem
Love and Belonging
Safety
Basic Physiological Needs
Values and Lifestyles System (VALS) Integrated
Outer-driven Consumers Inner-Driven Consumers
Socially Conscious Consumers
Achievers Emulators Belongers
Experimentalists I-am-me's
Need-driven Consumers
Sustainers
Survivors
Need Driven Consumers
Survivors: Old, poor, poor health, low education
Sustainers: feel rebellious, angry, and left out, often young and poor
Outer-Driven Consumers
Belongers: Middle-class, white, strong values Emulators: Strive to get ahead and are often in debt Achievers: professionals, high incomes, conservative political views
Inner-driven Consumers
I-am-me's: young adults trying to separate themselves from the views of their parents Experimentalists: moderate income, independent, seeking new experiences
Socially Conscious: mature, concerned w/ societal issues, successful, high income, liberal political views
Integrated Consumers
Represent self-actualized individuals at the top of the VALS hierarchy. They have the highest income and are a combination of socially conscious consumers and achiever consumers
They represent only 2% of consumers
Approaches to Marketing
1. Undifferentiated marketing
Generic products
2. Differentiated marketing
The company will provide a different promotion mix to two or more select target markets
3. Concentrated marketing
Company's use this to market to one segment of the population regardless of other segments
Product Positioning
The action a firm takes based on the market segmentation analysis of its current potential customer base.
Firms use the promotional mix to cause consumers to perceive a particular company's product as completely different from other brands of the same product.
Steps to Product Positioning
1. Identify all relevant competitors
2. Identify how the competition is perceived by consumers
3. Evaluate perceived needs of the consumer and select a desired position to meet these needs
Get into groups of 5-6 Using the steps of product positioning decide how to best position the brand you have selected After you have decided what you think is best, be prepared to defend your new ideas against what the brand is currently doing.