Assignment:
Create a 1-2 paragraphs for a discussion post.
Businesses understand that consumers have needs which can also create wants. For example, a consumer needs transportation to get to and from work. This need can become a want when other higher order needs come into play as follows:
• A higher order need for safety will create a "want" for a specific brand of car or specific attributes.
• A higher order need for esteem may translate into a desire for a car with prestige or one that promotes a more hip, youthful image.
You will complete the following:
1. Search online to find an advertisement for a product/service that speaks to the needs/wants of consumers. Please copy and paste a link to the video or upload the image into your discussion post.
2. Discuss whether the product/service is being marketed to a basic need or a higher order need. What needs and wants do you believe the product or service was designed to fulfill?
An important process in marketing is identifying the right potential customers and crafting the right message to attract them to try your product or service. This is done through a three-step strategic marketing process known as Segmenting, Targeting, and Positioning.
Segmenting
Segmenting is the process of breaking up the entire universe of customers into distinct groups. This helps marketers understand the behaviors, wants, and needs of customers in a given group and identify ways to market to those individuals based on their unique characteristics. ?For example, a local produce store may identify the following segments in its customer base:
• Organic buyers - customers who primarily purchase organic produce
• Convenience-product buyers - customers who purchase products that enable them to prepare meals in less than 30 minutes.
• Seasonal shoppers - customers who exhibit seasonal buying habits. These may be customers who shop at farmers markets during certain seasons, but shop in the retail store during the "off" season.
Notice that the above segments are based on the types of products the customers purchase. Another way to segment a particular market is based on specific characteristics of the customer, rather than on the product. For example, take a look at these possible segments for the same produce store:
• Busy working moms - Women who work full-time but still seek to provide a homemade meal for their families.
• The self-trained culinary artist - customers who enjoy cooking as a hobby and shop for fresh produce to fuel their experimental dishes.
• The holistic hero - Customers who are into holistic health - mind, body, and spirit - and look for healthy foods.
• Health-conscious empty nesters - health conscious seniors who, though their household is small, still want great quality produce for two.
As you can see, segmenting enables marketers to divide a large group of potential customers into smaller groups to better understand their needs.
Targeting
Once distinct customer segments have been identified, the next step is to determine which segment(s) to market a given product/service to - a process known as Targeting enables a company to focus on a smaller group of potential consumers, rather than trying to reach everyone. There are a number of factors that go into this decision, including how easy it is to reach customers in a given segment, the size, and profitability of the segment, the segments growth potential, and how well the product/service meets the needs of the customer segment.
Positioning
After the target market is identified, the final step is positioning. This is the process of cultivating a specific image or perception of a product/service in the minds of consumers based on the key benefits that the product/service offers consumers. The determination of the proper positioning of an offering should be made based on what you've learned about the customer. An offering can be positioned in one way to one customer segment, and another way to a different customer segment. Additionally, the process of "moving" a product to a different place in the minds of consumers can occur through repositioning.
Continuing with the produce store example, the store's high-end organic produce can be positioned as a way to reassure the Busy Working Mom that she is giving the best ingredients to her family.
Additional Material
Watch this video for more info about consumer behavior.
le 2 - All About the Customer
All About The Customer
Consumers, customers, clients, buyers, and end users; these are all terms that describe the most important aspect of marketing, the customer. A key concept of marketing is customer-centricity or keeping the customers needs and wants at the center of all marketing efforts. In order to do this, you first need to know the customer. How do you identify customers and learn what they want and need? Once you've attracted customers, how do you keep them happy and coming back for more?
Why Customers Do What They Do
Learning what makes consumers tick is a very involved process that requires extensive research and analysis. In fact, there is a marketing discipline that focuses on understanding consumers and what makes them buy called Consumer Behavior. There are general principles in the study of consumer behavior that apply across many buying decisions and there are other principles that apply to certain types of buying decisions. For example, buying a simple item like a bar of soap may have a very different process than buying a new car. However, in both cases, the first step is that the consumer identifies a need. Understanding consumer needs and what motivates consumers to make purchase decisions is an important part of marketing!
Business-to-Business (B2B) Customers
Did you know that most large corporations have internal departments whose sole purpose is to making purchasing decisions for the company? Considering how valuable business customers are, this should not be surprising. A single business customer buys enough volume to represent many individual customers. That makes meeting the needs of business-to-business customers a key priority. As businesses consolidate and increase their global presence, it will be increasingly important for marketers to develop a clear B2B marketing strategy to remain competitive.