What Is It? Marketing Framework Market Research and Buyer Behaviour Understanding the behaviour of buyers in your target group is crucial in marketing.Now more than ever, success is dependant upon market research and identifying and meeting customer needs at a profit.‘Zara’ have recently become the world’s largest clothing retailer, ‘by focusing on understanding consumer needs and behaviour and by providing value to the customer’.
Through intense market research, they developed an important knowledge of their target market’s buying patterns and recognised the need to constantly update their styles.
Furthermore they understood new concepts such as fast fashion’ and ‘disposable clothing, the idea that teenagers and young adults craved new styles quickly and cheaply. It is now more important than ever for marketing managers to respond swiftly and decisively to changes in consumer patterns. Nowadays, an excellent method a company can monitor their target market and conduct extensive market research is through social media. Never before have enterprises had such powerful technologies to interact with customers.
Almost every company has their own ‘Facebook or ‘Twitter’ account (combined with ver one billion active Facebook users globally), where they can receive immediate customer feedback about the faults in their product online. Furthermore, customers can chat online about these products. 53 percent of people on Twitter in Ireland recommend companies and/or products in their tweets'(ROl Research for Performance, June 2010). ‘Calgon’ dishwasher tablets recently produced an advertisement for television, where two women chat in an online forum about their dishwashers.
The first woman complains about her dishwasher, while the other recommends she starts using ‘Calgon’ tablets. Calgon certainly demonstrate their nderstanding of the importance of Word of mouth’; recent statistics show that 84 percent of customers trust peers over advertisments. Social media is both an opportunity and a challenge for businesses. Consumers used to have to go looking for the product, but now the product will find us, with excess information hurled at us from every direction! We don’t have a choice on whether we do social media, the question is how well we do it. There are many other concepts which are particularly noteworthy when developing a successful marketing strategy. Marketing managers must take into account the ountless amount of factors that influence consumer patterns and buyer behaviour, trom gender and age, to social and economic backgroun s c ae O’Leary, CEO ot Ryanair, flourished in recognising an untouched market segment of consumers looking for low quality air travel at exceptionally low prices by comparison to the likes of Aer Lingus.
He understood that people on lower incomes neither needed nor wanted to pay high prices for comfort, such as more leg room and nice meals on flights. This has become even more evident since the recession, with Ryanair climbing above high fair competitors. O’Learys market strategy succeeded because of is insight and understanding he had of the buyer behaviour of his target group. Segmentation, Targeting and Positioning Marketers developed the processes of segmentation, marketing and positioning so that they could understand their customers and their buying behavior. Segmentation is the first step in this process of product promotion.
The goal of market segmentation is finding out where the firm should compete and in what segments should they focus that will result in a comparative advantage. Segmentation leads to comparative advantages in a number of ways. Firstly, it reduces rivalry due to reduced competition in any given segment. It allows for efficient resource allocation as resources can be effectively focused on concentrated targets. Finally it can allow a firm no matter what size to become the product of choice in the given segment. Target marketing is at its most basic level is when a firm directs its marketing message at a specific market or segment.
It means that a group of customer has been chosen to whom the firm will direct most of their marketing resources, times and attention. Target marketing means that firms avoid wasting resources and time by giving the consumer what they need or want rather than making a product that the irm believes the consumer needs or wants. Finally positioning, which requires the firm to establish the brand in the minds of the consumers in order to maximize the potential benefit. Businesses use positioning analysis to understand how their target customers see their product and to see where they are in relation to their competitors.
All three of these components must be completed correctly or else the whole marketing campaign will be destined for failure. Branding Branding plays a major part in the marketing world. Branding exists so as to differentiate a company’s product or service from that of its ompetitors. It performs many roles both for the consumer and for the business. In relation to the consumer ,brands allow the consumer to shop with a reduced level of risk due to familiarity with the quality of each brand and this also would lead to a reduction in time spent shopping.
Concerning businesses, branding performs a lot of valuable functions. The main function, is brand loyalty as this leads to predictability and security of demand, increased security against competitors and can allow the businesses to charge higher prices. Other roles it plays are, that it offers legal rotection due to trademarks and it can give the business a comparative edge . Companies use brand to install an image in the consumer’s head when they hear of ything associated witn that brand. To make sure this is a success they must match all the elements of marketing, such as pricing policy, distribution methods etc. to the image that this wish to create. 7 P’s Of Marketing An essential element of the marketing strategy is the marketing mix. Comprising of product, price, place, promotion, process, people and physical evidence, it allows enterprises to deliver value in conjunction with satisfying consumer needs. Firstly, the product is some good or service that a company offers in the market.. A product satisfies a customers’ want or need, and to what degree depends on the quality of the product which is usually quite subjective.
Price is the next P and it denotes the monetary value a good is exchanged for. Price plays a major part in the decision making process of consumers. High prices, usually convey a luxurious consumption experience contrasted to affordable low prices offering basic products. Enterprises communicate their products to their target market through adopting and implementing a promotional strategy. Promotional activities seek to inform, persuade and influence the target market. Strategies include; branding, personal selling and advertising.
Following on, place is the location of the transaction between the consumer and business, ultimately it is the accessibility of the product to the consumer. There are various channels of distribution both direct and indirect an enterprise may adopt, in order ensure its product reaches the consumer. During the provision of a service, it is the people or staff who exert a major influence as to the outcome of the consumer experience. Therefore, staff must be adequately trained nd equipped with the necessary skills, approach and attitudes in order to achieve the desired outcome an enterprise strives towards.
The process an enterprise implements is the way in which business is conducted within an organisation and is seen through the flow of activities. For example, customer-cultivating companies are designed to serve customers and customer segments, this is one part of a potential business process, as seen in the Zara fashion retail example. Finally, physical evidence is how a business presents itself to its target market. It is the outward appearance of the organization and creates an impression on the consumer.