Differentiated, Mass, and Concentrated Marketing Strategies At its most basic level, a firm’s strategy begins with decisions around how it will compete in the marketplace. Will it compete with products that are differentiated from the rest of the competition, leveraging technology to innovate in ways that provide additional value for consumers? Or, will it compete on price, optimizing its supply chain and operations to eliminate costs, so that it can… Read More »Differentiated, Mass, and Concentrated Marketing Strategies

Target Market Planning What you’ll learn to do: Examine retailer decisions based on target market planning We defined target markets earlier as the segment at which a firm will focus its marketing activity. In the following sections, we will explore how firms tailor their strategies to their target market. It’s important for a firm’s strategy to be designed with the target market in mind in order to make the strategy more successful… Read More »Retailer Decisions Based on Target Market planning

Motivation, Attitude, and Buying Choices As you learned, when reading about the multi-attribute attitude model, attitudes are the enduring assessment a consumer makes about a product or brand or firm, based on their personal experiences, positive and negative. Typically, attitudes are described as being composed of three parts, reflected in the ABC model. Affect Behavior Cognition Affect refers to how a consumer feels about a product or brand or firm,… Read More »Customers Buying Choices main factors used : Motivation, Attitude, and Buying Choices

Describing Customers What you’ll learn to do: Summarize the main factors used to describe customers It’s important for retailers to understand their customers because their needs and desires shape their actions and purchases. Consumers are influenced by their life experiences, as well as demographic factors, so understanding how they make decisions can help retailers with promotions. Their decisions are also a result of their attitude and motivation, so even if two… Read More »Describing Customers

Understanding Customers What you’ll learn to do: Describe why it is important for retailers to research and understand their customers Previously, you learned that no matter how similar consumers might appear to be, they are seldom the same. Their needs, motivations, assumptions, beliefs and biases are unique, informed by individual experiences and perspective. Understanding how to segment populations by identifying common traits helps marketers target specific audiences and position their products… Read More »why it is important for retailers to research and understand their customers

Understanding Customers What you’ll learn to do: Describe why it is important for retailers to research and understand their customers Previously, you learned that no matter how similar consumers might appear to be, they are seldom the same. Their needs, motivations, assumptions, beliefs and biases are unique, informed by individual experiences and perspective. Understanding how to segment populations by identifying common traits helps marketers target specific audiences and position their products… Read More »Understanding Customers

Habitual Decision-Making As you read, some consumers have an extended problem solving mindset, putting a great deal of effort into their purchase decisions. Others have a limited problem solving mindset, putting in little consideration because their purchase is trivial. Still, there is another way that consumers arrive at their purchase decisions and that is routinized response behavior or by habit. These consumers don’t think about their purchase–not because it’s of… Read More »Habitual Decision-Making

Increasing Sales with Limited Problem Solving By contrast, consumers with a limited problem solving mindset put in little consideration before arriving at a decision. Because of the minimal time and energy committed to the search, this mindset is most common with the selection and purchase of low-consideration or low-value items. These may also be purchases that have little to no emotional significance. Simply, the consumer is unwilling to over-invest time… Read More »Increasing Sales with Limited Problem Solving

Models of the Buying Process What you’ll learn to do: Identify the various models of buying processes In the sections titled Consumer Decision-Making Process and The Steps of the Buying Process, we introduced processes or steps consumers engage in as they prepare to make a purchase. In particular, we described three models: AIDA, path-to-purchase, and the consumer buying process. We also identified the specific steps: Recognition of an Issue or Need Information Gathering Evaluation… Read More »Models of the Buying Process

Multiattribute Model “You can’t be all things to all people.” -Michael Porter All firms, when making strategic decisions, must choose between alternative courses they could pursue. In doing so, they make appropriate trade-offs, which they believe will best position them for future success. Part of this requires understanding what they are and what they are not, what they can and cannot do. This is true for how firms orient themselves,… Read More »Multiattribute Model