Young couples o new parents o mature parents o single

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Young couples o New parents o Mature parents o Single parents o Golden nests o Left alones Study unit 13 – Organisational buying behaviour Types of buying decisions: o New task buying – customers are buying something they’ve never bought before. o Straight rebuy – an organisation is buying more of the products that it has bought before. o Modified rebuy – the buyer wants to modify product specs, prices, terms or suppliers, and re-evaluate suppliers from time to time. Stages in the buying process: o Recognition of the problem / need o Determination of specification and quantity needed of item o Search for and qualification of potential suppliers o Acquisition and analysis of proposals o Evaluation of proposals and selection of suppliers o Selection of an order routing o Performance feedback and evaluation Topic 5 – Customer-focused marketing Study unit 14 – Market segmentation Bases of market segmentation: o Behaviouristic (usage) – objective is to try and understand the extent to which and the way in which customers will use the product in question. Variables that are considered: Purchase occasion Benefits sought User status Usage rate Loyalty status Buyer readiness stage Attitude towards the product 23
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o Demographic – assumes that customers differ according to certain variables about themselves, such as age, gender, marital status, race, religion, family life cycle, occupation, income or education. o Psychographic – refer to the inner or intrinsic qualities of individual consumers. o Geographic – assumes that customers within a particular geographic location can be targeted with the same product offering and marketing mix. o Needs / benefits-oriented – examines the specific benefits customers look for in a product. o Market-value-based – looks at the market in terms of the personal value a product provides. Criteria for effective market segmentation: o Must be measurable o Must be substantial or large enough and profitable enough to warrant marketing effort on the part of the company. o Must be stable. o Must be accessible. o Must elicit action. In deciding which segments to target, the marketer would consider the following: o The target market size and growth possibilities o The attractiveness and potential profitability of each segment o The resources and skills of the organisation and its ability to serve a particular segment o The compatibility of the target segment with the organisation’s objectives o The cost of reaching the target market in question Approach to position products: o Step 1 – Identify a relevant set of competitive products o Step 2 – Identify differentiation variables o Step 3 – Determine consumers’ perceptions o Step 4 – Analyse the intensity of a product’s current position o Step 5 – Analyse the product’s current position o Step 6 – Determine the most preferred combination of attributes o Step 7 – Select a positioning strategy.
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