What is consumer behavior?

Consumer behavior is the actions and decisions that people or households make
when they choose, buy, use, and dispose of a product or service. Many
psychological, sociological, and cultural elements play a role in how consumers
engage with the market.

It is a multi-stage process that involves identifying problems, collecting data,

exploring options, making a decision to buy, and evaluating the experience
afterward. Consumers may be impacted during these stages by things including
personal views and values, social conventions, marketing campaigns, product
features, and environmental conditions.

Understanding consumer behavior is essential for businesses to create marketing

plans that work and to supply goods and services that satisfy customers’ wants and
needs. To see trends and patterns, forecast demand, and make wise choices
regarding product design, price, promotion, and distribution, marketers must
analyze and understand data on customer behavior.
 Importance of consumer behavior

Better marketing and communications

As living standards, trends, and technology keep changing, consumers’ choices also keep varying.
Understanding how these factors affect customers’ buying habits helps organizations design their
messaging accordingly. Thus, having insights into consumers’ purchase behavior can help marketers in
meeting their objectives.

Improve customer retention

It is far more beneficial to retain an existing customer than to gain new customers. It’s easier to sell new
products and services to your existing customers than to find new ones.

Entrepreneurs who are able to retain their customers and create strong relationships manage to create
strong new brand loyalty for their businesses. Customer loyalty can prove to be a promoter of your
business and spread positive word of mouth. Satisfied customers share their happy experiences with
their friends and family.

So, retaining as many customers as possible should be the goal of entrepreneurs interested in growing
their companies.
Increase customer loyalty

Understanding customer behavior helps in finding out ways to boost customer loyalty,
which in turn, will lead to higher sales and a strong brand. Analyzing trends in sales can aid
in offering discounts as well as suggesting the best products and services to them.

Better plan inventory

Researching customer attitudes helps companies plan inventory and stock raw materials. In
the case of a service-based business, the management team can better plan their human
resources. If businesses see a trend in demand for specific products, they are likely to send
more purchase orders to their suppliers. Consumer behavior data can help them to balance
demand and supply.
Increase sales

A company always aims to satisfy specific market niches. Even if the company operates in
different sectors, it should target potential buyers in each segment. If you know your
customers well, you can have better conversations with a high probability of closing the deal.

Knowing who you are selling to makes it possible to clearly define your objectives in the
market. Learning more about consumer behaviors helps to define the main customers that
come directly to the company. Your inventory should be stocked with products that meet the
requirements of your potential buyers.

Instead of taking random shots and trying to sell to anyone, having knowledge about your
customers’ likes and dislikes helps in making smarter decisions. Such a strategy has a higher
chance of generating sales.

Research competition
Studying consumer buying behavior helps in understanding the competitive market. You
can plan on how to position your products and services to offer competitive advantages.
Consumer behavior in marketing:

Consumer behavior is important in marketing because it explains how consumers make

decisions about what products to buy when to buy them, and from whom to buy them.

Marketers can develop effective marketing strategies that target the right consumers with
the right message at the right time by understanding consumer behavior.

Here are some examples of how consumer behavior affects marketing:

Segmentation

Consumer behavior research helps marketers behavioral segment markets. Marketers can
modify their marketing messages and strategies to better appeal to each demographic
by recognizing these segments.
Product design

Understanding consumer behavior can also aid in product development. Marketers can
create products that better meet consumer needs and preferences by analyzing
customer requirements and tastes, leading to increased sales and customer satisfaction.

Pricing Strategies

Marketers can use consumer behavior data to determine the price points at which
customers are willing to pay for a product, as well as the pricing strategies most likely to
appeal to each market segment.

Branding

Consumer behavior research helps in the development of branding strategies. Marketers

can create brand messages and strategies that resonate with consumers and build brand
loyalty by understanding consumer attitudes and perceptions of brands.
What factors influence consumer behavior while purchasing?

Consumer behavior is influenced by many external factors and internal factors such as
situational, psychological, environmental, and marketing factors, personal factors, family,
and culture.

Businesses try to collect data so that they can make decisions on how they can reach their
target audience in the most efficient way. While some influences may be temporary and
others can be long-lasting, these factors can influence a person to buy or not buy. Let’s now
look at some of these factors in detail.
Situational factors:

They are temporary in nature and include physical factors such as a store’s location, layout,
colors, music, lighting, and even scent. Companies try to make these factors as favorable as
possible. Other situational factors include holidays, time, and moods of the consumer.

Personal factors:

These factors include demographic factors such as age, gender, income, occupation, etc. It
also depends on one’s interests and opinions. To further understand consumers, companies
also look more closely at their lifestyles – their daily routine, leisure activities, etc.
Social factors:

This factor also includes social class, level of education, religious and ethnic background,
sexual orientation, customer orientation, and people around you – family, friends, or social
network. Different cultures have varying customs and rituals that influence how people live
their lives and what products they purchase.

Generally, consumers in the same social class exhibit similar buying behavior. Most market
researchers believe a person’s family is one of the biggest determinants of buying
behavior.

Psychological factor:

A person’s ability to understand information, perception of needs, and mindset influence

consumer behavior. One’s reaction to a marketing campaign will depend on one’s beliefs and
state of mind.
Types of Consumer Behavior:

Complex Purchasing Behavior:

This type of behavior occurs when consumers are buying expensive, rarely purchased
items.

In this case, people are deeply involved in the purchase process, conducting extensive
research before making a significant investment.

Think about purchasing a house or a car; these are examples of complex buying
behavior.
Dissonance-Reducing Purchasing Behavior

Dissonance is defined as a lack of lack of harmony. In the shopping process, this behaviour
is visible when consumers struggle to differentiate between brands.

There’s no favourite brand and none of the options is particularly attractive, so ‘dissonance’
appears as consumers fear they will regret their decision.

For instance, when buying a lawnmower, you may select one based on price and
convenience. However, you’ll still seek reassurance about your choice afterward.
Habitual Purchasing Behavior

As opposed to the first two behaviors, this one appress when consumers mindlessly buy
something, with little to no involvement in the product or brand category.

To illustrate, let’s think of grocery shopping: you visit the store and buy your preferred
type of bread.

You demonstrate zero brand loyalty, as you go for your preferred taste, no matter the logo
on the label.
Variety-Seeking Behavior

Finally, we have this scenario, where consumers purchase a different product not
because they were dissatisfied with the previous one, but because they seek variety.

For example, think of people who order protein or other supplements.

It’s not that they’re not satisfied with the product in itself; they just got bored of the
same text and look for some chocolaty-feelings in their protein shakes.

It’s important you understand all these types of behaviors and determine which type of
customers your brand attracts.
Characteristics Of Consumer Behavior:

Needs and Wants: Consumers have various needs and desires that drive their
purchasing decisions. These needs can be functional (e.g., hunger, shelter) or
psychological (e.g., status, belonging).
Perception: Perception refers to how consumers interpret and make sense of
information about products and brands. This includes their beliefs, attitudes, and
opinions, which shape their preferences and choices.
Motivation: Consumer behavior is often motivated by internal and external factors.
Internal motivations include personal values, goals, and emotions, while external
motivations may include advertising, social influence, and cultural norms.
Decision-making Process: Consumers go through a decision-making process when
making purchases, which typically includes problem recognition, information search,
evaluation of alternatives, purchase decision, and post-purchase evaluation.
Social Influence: Social factors such as family, friends, peers, and social media can
significantly impact consumer behavior. Social influence can affect purchasing decisions
through word-of-mouth recommendations, social norms, and conformity.
Cultural and Demographic Factors: Cultural values, beliefs, and norms shape
consumer behavior, as do demographic characteristics such as age, gender,
income, education, and ethnicity.
Psychological Factors: Psychological factors such as perception, learning, memory,
and personality traits influence consumer behavior. For example, perceptions of
product quality or brand loyalty can affect purchasing decisions.
Attitudes and Beliefs: Consumers' attitudes and beliefs toward products, brands, and
shopping experiences play a crucial role in shaping their behavior. Positive attitudes and
beliefs are more likely to lead to purchase behavior.

Lifestyle and Behavior Patterns: Consumer behavior is also influenced by lifestyle

choices and behavior patterns, such as spending habits, leisure activities, and media
consumption preferences.

Situational Factors: Situational factors such as time constraints, location, and mood can
influence consumer behavior in specific situations. For example, impulse purchases may
be more likely in certain environments or circumstances.
consumer decision making process in buying:

Problem Recognition: The process begins when the consumer recognizes a need or
problem that requires a solution. This recognition can be triggered by internal factors
(such as hunger or discomfort) or external factors (such as advertising or
recommendations).
Information Search: Once the need is recognized, the consumer begins to search for
information about possible solutions. This information search can involve internal sources
(such as memory or past experiences) and external sources (such as friends, family, reviews,
or online research).

Evaluation of Alternatives: After gathering information, the consumer evaluates the

available options to determine which product or brand best meets their needs and
preferences. This evaluation may involve comparing features, prices, quality, and other
relevant attributes of the alternatives.

Purchase Decision: Based on the evaluation of alternatives, the consumer makes a

decision to purchase a specific product or brand. This decision can be influenced by
various factors, including personal preferences, budget constraints, and external
influences such as sales promotions or recommendations from others.
Post-Purchase Evaluation: After making a purchase, the consumer evaluates their
decision and the product's performance based on their expectations and experiences. If
the product meets or exceeds expectations, the consumer is likely to feel satisfied.
However, if the product fails to meet expectations, the consumer may experience
dissatisfaction and possibly seek alternative solutions or brands in the future.
 Objective Of Consumer Behavior:

Product Development: Consumer behavior research provides valuable insights into

what consumers want and need in products and services. By understanding consumer
preferences, businesses can develop products that better meet customer demands,
leading to increased satisfaction and loyalty.

Marketing Strategy Development: Consumer behavior research informs marketing

strategies by identifying the most effective ways to reach and influence target
consumers. Businesses can develop targeted advertising campaigns, pricing strategies,
and promotional activities based on consumer insights.
Brand Management: Understanding consumer behavior helps businesses build and
manage strong brands. By knowing how consumers perceive their brand and what
influences brand loyalty, companies can develop branding strategies that resonate with
their target audience and differentiate their brand from competitors.

Customer Satisfaction and Loyalty: By understanding what drives consumer

satisfaction and loyalty, businesses can focus on delivering exceptional customer
experiences. Satisfied customers are more likely to become repeat buyers and
advocates for the brand, leading to increased customer retention and profitability.
Market Research and Forecasting: Consumer behavior research provides valuable
data for market research and forecasting. By analyzing consumer trends and
preferences, businesses can anticipate changes in the market and identify
opportunities for growth.

Risk Management: Understanding consumer behavior helps businesses identify

potential risks and challenges in the market. By monitoring consumer attitudes and
behaviors, companies can proactively address issues such as declining sales,
changing consumer preferences, or negative brand perceptions.
Theory of consumer behavior:

Consumer theory is a concept that deals with how people choose to spend their money,
provide their tendency and budget restrictions. As a part of microeconomics, consumer
theory manifests how people make choices, provide restraints, their income, and the prices
of commodities and services.

The customer has to determine how to spend his or her earnings on different
commodities. However, a few renowned economists have named this as the issue of
choice. Usually, every customer wants to get a blend of commodities that gives him/her
utmost happiness.

This relies upon the preferences of the customer and what the customer can manage to
purchase. The likes of the customers are also known as preferences. Thus, what the
customer can manage to purchase relies on the prices of the commodities and the
earnings of the customer.
various buying roles in family

Initiator: The initiator is the person who first recognizes the need or desire for a
particular product or service. They may suggest or propose the idea of making a purchase.
Initiators can be any member of the family, depending on who identifies the need or
opportunity. For example, a child might initiate the purchase of a new video game
console, or a parent might initiate the purchase of a family vacation.

Influencer: Influencers are individuals who provide input or influence the purchase
decision without necessarily having the final authority. They may offer opinions,
recommendations, or preferences that sway the decision-making process. Influencers can
include family members, friends, or external sources such as advertisements or online
reviews. For example, a teenager might influence the family's decision to buy a certain
brand of clothing or a parent might be influenced by a friend's recommendation for a new
smartphone.

Decision Maker: The decision maker is the person who ultimately makes the final
decision about which product or service to purchase. This role often falls to one or more
individuals with the authority or responsibility for managing the household finances or
making major purchasing decisions. In some families, the decision maker may be a single
individual, such as a parent or guardian, while in others, it may be a collective decision
involving multiple family members.
Purchaser: The purchaser is the person who physically buys the product or service. This
role may or may not be the same as the decision maker, depending on factors such as
convenience, availability, or preferences. For example, the decision maker might delegate
the task of purchasing groceries to another family member who enjoys shopping or has
more time available.

User: The user is the individual or individuals who actually use the product or service
once it has been purchased. Users can include any member of the family who benefits
from or interacts with the product or service. For example, the user of a family car might
be different from the decision maker or purchaser, with multiple family members sharing
the responsibility for driving and using the vehicle.
consumer decision making process in buying:

Recognition of Need: The decision-making process typically begins with the recognition
of a need or a problem. This need may arise from internal factors such as physiological or
psychological needs (e.g., hunger, thirst, safety) or external factors such as environmental
cues, social influences, or marketing stimuli (e.g., advertisements, recommendations).

Information Search: Once consumers recognize a need, they may engage in an

information search to gather information about possible solutions or options. This can
involve internal sources (e.g., memory, past experiences) as well as external sources such as
personal contacts, reviews, advertisements, websites, and comparison shopping.

Evaluation of Alternatives: After gathering information, consumers evaluate the available

alternatives based on various criteria such as price, quality, features, benefits, brand
reputation, and personal preferences. Consumers may use different decision-making
heuristics or decision rules to simplify the evaluation process, such as brand loyalty, price
comparison, or product attributes.
Purchase Decision: Once consumers have evaluated the alternatives, they make a
purchase decision by selecting the option that best meets their needs and preferences.
This decision can be influenced by factors such as price, availability, promotions,
incentives, and the perceived value of the product or service.

Post-Purchase Evaluation: After making a purchase, consumers may engage in post-

purchase evaluation to assess their satisfaction with the chosen product or service.
This evaluation is influenced by factors such as product performance, quality, reliability,
durability, and whether the product or service meets their expectations. Positive
experiences may lead to repeat purchases, brand loyalty, and positive word-of-mouth
recommendations, while negative experiences may result in dissatisfaction, returns, or
complaints.
MARKET SEGMENTATION:

Market segmentation is a marketing strategy that uses well-defined criteria to divide a

brand's total addressable market share into smaller groups. Each group, or segment,
shares common characteristics that enable the brand to create focused and targeted
products, offers and experiences.

A brand's total addressable market can have a variety of needs, challenges, preferences
and buying criteria. Market segmentation carves out focused portions of a target
market in order to create messaging, products and services that are customized to
those segments.

Market segmentation can be a competitive differentiator. Customers served by market

segmentation campaigns may perceive that a brand's messaging and products were
specifically tailored to them.
nature of market segmentation :

Identifiable: Segments should be identifiable and measurable. Marketers should be

able to clearly define who belongs to each segment and gather data to analyze and target
them effectively.

Substantial: Segments should be large enough to warrant separate marketing efforts.

It's not practical to target very small segments unless they are highly profitable or
strategic.

Accessible: Segments should be reachable through marketing efforts. This means that
the segment should be accessible through communication channels, distribution
channels, or other means where marketing activities can effectively reach them.

Responsive: Segments should respond differently to marketing efforts. If there's no

difference in how segments respond to marketing strategies, there's no point in
segmenting the market.
Homogeneous within, Heterogeneous between: Each segment should be internally
homogeneous in terms of the characteristics that define it, but should also be different
from other segments. This allows marketers to tailor their marketing mix to the specific
needs and preferences of each segment.

Dynamic: Market segmentation is not a static process. Consumer preferences,

behaviors, and market conditions change over time, so segments may need to be
adjusted or redefined periodically to remain effective.

Cost-effective: The benefits of segmentation should outweigh the costs associated

with identifying, targeting, and serving different segments. Marketers should carefully
consider the resources required to implement segmentation strategies.
erequisites for effective segmentation:

Clear Understanding of Market Dynamics: Before segmentation can occur, businesses

must have a comprehensive understanding of the market they operate in. This includes
factors such as industry trends, customer demographics, psychographics, and behaviors, as
well as competitor analysis.

Data Availability and Quality: Effective segmentation relies on accurate and relevant
data about customers and the market. This data can include demographic information,
purchase history, online behavior, and more. It's essential to have reliable data collection
methods and tools in place to gather this information effectively.

Segmentation Criteria: Businesses need to establish clear segmentation criteria based on

relevant variables such as demographics, psychographics, geography, behavior, or needs.
These criteria should align with the company's strategic goals and objectives.

Analytical Capabilities: Effective segmentation requires advanced analytical

capabilities to process and analyze large datasets. Businesses should have access to
analytics tools and expertise to identify meaningful patterns and insights within the
data, which can inform segmentation strategies.
Resource Allocation: Segmentation efforts require resources in terms of time, money,
and personnel. Businesses should be prepared to allocate sufficient resources to conduct
segmentation research, analyze data, develop targeted marketing strategies, and
implement segmentation initiatives effectively.

Cross-Functional Collaboration: Segmentation is not solely a marketing endeavor; it

requires collaboration across various departments within the organization, including
marketing, sales, product development, and customer service. Cross-functional teams
can ensure that segmentation strategies are aligned with broader business objectives
and implemented effectively across all touchpoints.

Flexibility and Adaptability: Markets are dynamic, and customer preferences can change
over time. Businesses need to be flexible and adaptable in their segmentation approach,
willing to adjust criteria, strategies, and tactics based on evolving market conditions and
consumer trends.

Continuous Evaluation and Optimization: Segmentation is an ongoing process that

requires continuous evaluation and optimization. Businesses should regularly monitor
the effectiveness of their segmentation strategies, gather feedback from customers, and
make adjustments as needed to ensure that segmentation efforts remain relevant and
impactful.
 or

1.Measurable

The size and purchasing power profiles of your market should be measurable, meaning
there is quantifiable data available about it. A consumer’s profiles and data provide
marketing strategists with the necessary information on how to carry out their campaigns.
It would be difficult to create advertisements for markets that have little to no data or for
audiences that can’t be measured. Always ask whether there is a market for the kind of
product or service that your business wants to produce then define how many possible
customers and consumers are in that market.
2. Accessible

Accessibility means that customers and consumers are easily reached at an affordable cost.
This helps determine how certain ads can reach different target markets and how to make
ads more profitable.

A good question to ask is whether it’s more practical to place ads online, on print, or out of
house. For example, gather data on the websites a specific target market usually visits so
you can place more advertisements on those websites instead.
3. Substantial

The market a brand should want to penetrate should be a substantial number. You should
clearly define a consumer’s profiles by gathering data on their age, gender, job, socio-
economic status, and purchasing power.

It doesn’t make sense to try and reach an unjustifiable number of people — you’re just
wasting resources. However, you also don’t want to market the brand to a group too small
that the business doesn’t become profitable.

4. Differentiable

When segmenting the market, you should make sure that different target markets respond
differently to different marketing strategies. If a business is only targeting one segment,
then this might not be as much of an issue.

But for example, if your target market is college students, then it’s essential to create a
marketing strategy that both freshman students and senior students react to in the same
positive way. This process ensures that you are creating strategies that are more efficient
and cost-effective.
5. Actionable

Lastly, your market segments need to be actionable, meaning that they have practical
value. A market segment should be able to respond to a certain marketing strategy or
program and have outcomes that are easily quantifiable.

As a business owner, it’s important to identify what kind of marketing strategies work for
a certain segment. Once those strategies have been identified, ask yourself if the
business is capable of carrying out that strategy.
 Bases of segmenting consumer markets:

Demographic Segmentation: This involves dividing the market based on demographic

variables such as age, gender, income, occupation, education, marital status, family size,
and ethnicity. Demographic segmentation is one of the most common and straightforward
approaches to segmentation, as demographic variables are relatively easy to measure and
widely available.

Psychographic Segmentation: This approach categorizes consumers based on psychological

variables such as lifestyle, personality, values, attitudes, interests, and beliefs. Psychographic
segmentation aims to understand consumers' motivations, preferences, and aspirations,
allowing businesses to create more targeted marketing messages and offerings that
resonate with their target audience's psychographic profiles.

Behavioral Segmentation: Behavioral segmentation divides consumers based on their

behaviors, usage patterns, purchase history, brand loyalty, and engagement with products
or services. This approach focuses on understanding consumers' actual buying behaviors
and decision-making processes, allowing businesses to tailor their marketing strategies and
offerings to meet specific consumer needs and preferences.
Geographic Segmentation: Geographic segmentation divides the market based on
geographic variables such as location, region, climate, population density, urban/rural
areas, or even cultural factors. Geographic segmentation recognizes that consumer
preferences and needs can vary significantly based on where they live, making it essential
for businesses to tailor their products, services, and marketing efforts to specific
geographic regions or markets.

Usage-Based Segmentation: This approach categorizes consumers based on their usage

patterns, frequency of use, volume of purchases, or product/service usage occasions.
Usage-based segmentation helps businesses identify different customer segments with
varying levels of engagement and loyalty, allowing them to develop targeted marketing
strategies and loyalty programs to retain and attract customers.

Benefit Segmentation: Benefit segmentation divides consumers based on the specific

benefits or outcomes they seek from a product or service. This approach focuses on
understanding the unique needs and preferences of different consumer segments and
tailoring offerings to deliver the desired benefits effectively. Benefit segmentation often
involves conducting research to identify the primary drivers of purchase decisions within
each segment.
Hybrid Segmentation: Businesses may also combine multiple segmentation bases to create
hybrid or composite segments that provide a more nuanced understanding of the market.
For example, a company might use a combination of demographic, psychographic, and
behavioral variables to create highly targeted segments that reflect both the demographic
characteristics and the lifestyle preferences of their target audience.
 Market targeting strategies:

Marketing targeting strategies play a crucial role in helping companies effectively reach
and engage their desired customer segments. These strategies involve the careful
selection of target markets based on various factors such as resources, product
characteristics, market dynamics, and competition. By understanding the unique needs,
preferences, and behaviours of their target customers, companies can tailor their
marketing efforts to deliver personalized experiences, create value, and build strong
customer relationships. Whether it’s through undifferentiated marketing, differentiated
marketing, concentrated marketing, or micro marketing, selecting the right targeting
strategy sets the foundation for successful marketing campaigns and sustainable business
growth. In this article, we will explore different marketing targeting strategies and their
implications for businesses in today’s dynamic marketplace.
Undifferentiated Targeting: Also known as mass marketing, this strategy involves
targeting the entire market with a standardized product or message. The assumption is
that the product or service will appeal to a broad range of consumers. This strategy is
most suitable when the product has mass appeal, and there are no significant differences
in customer needs or preferences within the market.

Differentiated Targeting: Differentiated targeting involves targeting multiple segments

with different marketing strategies or product offerings tailored to each segment's
specific needs and preferences. This approach recognizes that different customer
segments have varying requirements and aims to capture a larger market share by
addressing these diverse needs effectively. It requires more resources and effort but can
result in higher customer satisfaction and loyalty.

Concentrated Targeting: Concentrated targeting focuses on one or a few select market

segments rather than attempting to target the entire market. This strategy is often used
by smaller businesses with limited resources or by companies targeting niche markets. By
concentrating efforts on a specific segment, businesses can achieve a deeper
understanding of their customers' needs and develop highly specialized products or
services to meet those needs effectively.
Micromarketing: Micromarketing involves tailoring marketing efforts to meet the needs of
individual customers or very small segments within the market. This strategy leverages
detailed customer data and advanced analytics to personalize marketing messages, product
recommendations, and promotions on a one-to-one basis. Micromarketing is made possible
by advances in technology and data analytics and aims to maximize customer engagement
and satisfaction by delivering highly relevant and personalized experiences.
Local Marketing: Local marketing targets customers in specific geographic areas, such as
cities, neighborhoods, or even individual stores. This strategy recognizes that consumer
preferences and behaviors can vary significantly based on location and aims to tailor
marketing efforts to the unique characteristics of each local market. Local marketing tactics
may include community events, localized advertising, and partnerships with local businesses.
Global Targeting: Global targeting involves targeting customers across multiple countries or
regions. This strategy is common among multinational corporations seeking to expand their
market reach beyond domestic borders. It requires careful consideration of cultural
differences, regulatory requirements, and market conditions in each target market and may
involve adapting products, pricing, and marketing strategies to suit local preferences and
conditions.
One-to-One Marketing: One-to-one marketing, also known as personalized marketing, aims
to establish direct relationships with individual customers by tailoring marketing messages,
products, and services to meet their specific needs and preferences. This approach relies on
data-driven insights and advanced technology to track customer interactions, preferences,
and behaviors, allowing businesses to deliver highly personalized and relevant experiences
across all touchpoints.
positioning strategies:

Positioning is a marketing strategy, also referred to as product positioning, to promote

your product or service to customers relative to competing brands. The goal is to
establish a single defining characteristic for your brand in the consumer's mind.
Effective positioning strategies consider the brand's strengths and weaknesses,
customer needs, and competitors' claims. Product positioning allows a company or
brand to illuminate areas where it can eclipse the competition.

Customer: Central to positioning is knowing your focus by identifying what the buyer
wants and needs. Research to see if there is a problem customers need a solution for and
what needs they might report via surveys, interviews and reviews. Listening to buyer
needs and placing a high importance on those needs is pivotal in getting customer
attention and loyalty.
 Channel: Your channel, or sales team, is central to understanding customer needs and is
where you will likely find the majority of information for successful positioning. Your
channel is a direct connection to the customer, and through their experience, you can
get information such as the customer profile, customer problems, competitive
intelligence and the purchase process. With experience in the entire sales cycle,
channels will help you identify brand strength to effectively focus your positioning
strategy on what you do well as a brand.

Competition: A final step in formulating a product position is paying attention to your

competition and its position. If yours is unique and easily differentiated from what is on
the market, then your positioning statement (your assertion of brand uniqueness) is
effective.

Attribute Positioning:

Focuses on highlighting specific product attributes or features that differentiate the

brand from competitors.

Emphasizes characteristics such as quality, performance, reliability, durability, or

innovation to establish superiority in the minds of consumers.

Benefit Positioning:
Emphasizes the benefits or outcomes that the product or service delivers to
consumers.

Communicates how the product fulfills consumer needs or solves their problems
more effectively than competing alternatives.

Examples include convenience, cost savings, time savings, improved health, or

enhanced lifestyle.
Price Positioning:
Positions the brand based on its price relative to competitors.

Can involve positioning as a premium, luxury brand with higher prices to signify
superior quality or exclusivity.

Alternatively, brands can position themselves as value-oriented or budget-friendly

alternatives, focusing on affordability and cost-effectiveness.
Quality or Luxury Positioning:
Positions the brand as offering superior quality, craftsmanship, or luxury compared to
competitors.

Emphasizes premium materials, superior design, attention to detail, and exclusivity to

appeal to consumers seeking high-end products or experiences.
Usage or Application Positioning:

Positions the product based on its specific usage or application.

Targets niche markets or specific consumer segments with tailored messaging that
highlights the product's suitability for their particular needs or preferences.

Example: Marketing a rugged smartphone as ideal for outdoor enthusiasts or

adventurers.

Competitor Positioning:

Positions the brand in relation to competitors, often by directly comparing its

offerings to those of competitors.

Can involve highlighting areas where the brand outperforms competitors or

addressing perceived weaknesses in competitors' products.

Example: An advertising campaign that emphasizes a brand's superior taste

compared to a leading competitor.
Cultural or Emotional Positioning:

Focuses on appealing to consumers' emotions, values, or cultural identities.

Aligns the brand with specific cultural or social values, beliefs, or causes that
resonate with the target audience.

Example: Positioning a brand as environmentally friendly or socially responsible to

attract consumers who prioritize sustainability or ethical values.

User Positioning:

Positions the brand based on the target audience's characteristics, preferences, or

identity.

Tailors messaging and imagery to resonate with specific demographics, lifestyles, or

psychographic profiles.

Example: Positioning a brand of athletic apparel as the preferred choice for active,
health-conscious millennials.
consumer market strategies:

Market Segmentation: Divide the overall consumer market into distinct segments based
on demographics, psychographics, behavior, or other relevant factors. This allows
businesses to tailor their marketing efforts to specific consumer groups with unique
needs and preferences.

Targeting: Select specific consumer segments to focus on based on their attractiveness

and fit with the company's offerings. Targeting involves identifying the most profitable or
strategic segments and allocating resources to reach and serve them effectively.

Product Differentiation: Differentiate products or services from competitors by

highlighting unique features, benefits, or value propositions. This could involve offering
superior quality, innovative features, customization options, or exclusive benefits to
attract consumers.

Brand Positioning: Position the brand in the minds of consumers relative to competitors
by emphasizing distinctive attributes, benefits, or values. Effective brand positioning
helps create a strong and favorable perception of the brand among target consumers,
guiding their purchase decisions.
Price Strategy: Determine pricing strategies based on factors such as cost, competition,
perceived value, and consumer demand. Businesses can adopt various pricing strategies,
including premium pricing, value pricing, penetration pricing, or pricing based on
skimming.
Distribution Channels: Select appropriate distribution channels to make products or
services accessible to consumers. This may involve selling through retailers, wholesalers,
e-commerce platforms, direct sales, or other channels based on consumer preferences
and market dynamics.
Promotion and Advertising: Develop promotional campaigns and advertising strategies to
raise awareness, generate interest, and drive purchase intent among target consumers.
This could include traditional advertising, digital marketing, social media campaigns,
influencer partnerships, and experiential marketing initiatives.
Customer Experience: Focus on delivering exceptional customer experiences at every
touchpoint, from pre-purchase interactions to post-purchase support. Providing
personalized service, seamless transactions, and responsive customer care helps build
loyalty and advocacy among consumers.
Innovation and Product Development: Continuously innovate and evolve products or
services to meet changing consumer needs, preferences, and market trends. Investing in
research and development allows businesses to stay ahead of competitors and maintain
relevance in the marketplace.
Customer Relationship Management (CRM): Implement CRM strategies and systems to
manage and nurture relationships with consumers over time. This involves gathering
customer data, analyzing behaviors, and engaging with customers through personalized
communication and offers.
Understanding Consumer Needs and Preferences:

Businesses must conduct market research to gain insights into consumer needs,
preferences, behaviors, and trends. This information helps tailor products, services, and
marketing efforts to meet consumer demands effectively.

Product and Service Innovation:

Continuously innovating and improving products and services based on consumer

feedback and market trends ensures that businesses stay competitive and meet evolving
consumer expectations.

Personalization:

Personalizing marketing messages, product recommendations, and service offerings

based on individual consumer preferences, behaviors, and purchase history enhances
engagement and strengthens relationships with consumers.
Customer Engagement and Loyalty Programs:

Implementing loyalty programs, rewards programs, and other incentives encourages

repeat purchases, drives customer engagement, and fosters brand loyalty.

Social Responsibility and Sustainability:

Demonstrating a commitment to social responsibility, environmental sustainability,

and ethical business practices resonates with socially conscious consumers and can
enhance brand reputation and loyalty.

Listening and Responding to Feedback:

Actively soliciting and listening to customer feedback, complaints, and suggestions

allows businesses to address issues promptly, improve products or services, and
demonstrate a commitment to customer satisfaction.

Competitive Pricing and Value Proposition:

Offering competitive prices and value-added benefits that exceed those of
competitors helps attract price-sensitive consumers while maintaining profitability
and perceived value.
 Industrial Market:

The industrial market (also called the producer market or business market) is the set
of all individuals and organizations that acquire goods and services that enter into the
production of other products or services that are sold, rented, or supplied to others.

The industrial market, also known as the business-to-business (B2B) market, refers
to the marketplace where goods and services are bought and sold between
businesses, rather than between businesses and individual consumers. This market
encompasses a wide range of industries, including manufacturing, construction,
agriculture, healthcare, transportation, and more.
Purchase Intent:

Buying decisions in the industrial market are driven by business needs rather than
personal preferences. Businesses purchase goods and services to support their
operations, production processes, or resale to other businesses.
Complex Buying Process:

The purchasing process in the industrial market is often more complex and involves
multiple decision-makers and influencers within the buying organization. These
stakeholders may include procurement managers, engineers, operations managers,
and financial officers.
Longer Sales Cycles:

Sales cycles in the industrial market tend to be longer due to the complexity of the
buying process, the need for extensive research and evaluation, and the high value
and long-term nature of many purchases. Building relationships and demonstrating
value over time is crucial for closing deals.

Technical Expertise:

Industrial products and services often require specialized technical knowledge for
selection, installation, operation, and maintenance. Suppliers must demonstrate
technical expertise and provide comprehensive support to meet customer needs
effectively.
Customization and Specialization:
Industrial buyers often have unique requirements and specifications. Suppliers
may need to offer customized products, solutions, or services tailored to
individual customer needs and industry-specific standards or regulations.

Relationships and Trust:

Building strong relationships and trust with customers is essential in the industrial
market. Businesses prefer to work with suppliers they trust and who demonstrate
reliability, integrity, and a commitment to customer satisfaction.

Supply Chain Dynamics:

The industrial market is closely tied to supply chain dynamics, with businesses
relying on efficient logistics, timely delivery, and reliable suppliers to meet
production schedules and fulfill customer orders.

Emphasis on Value and ROI:

Industrial buyers are often more focused on the value proposition and return on
investment (ROI) of their purchases rather than simply the lowest price. Suppliers
must demonstrate the benefits, cost savings, and long-term value of their
offerings to win business.
Market Dynamics:

Industrial markets are influenced by factors such as economic conditions,

technological advancements, regulatory changes, and industry trends. Businesses
must stay informed about market dynamics and adapt their strategies accordingly
to remain competitive.

Globalization:

With the increasing globalization of markets, industrial businesses are often part of
global supply chains, sourcing materials, components, and services from around
the world. This presents both opportunities and challenges in terms of
competition, logistics, and market expansion.