dividing the market into segments such as age, life-cycle stages, gender, household composition, ethnicity e.g. TopShop 18-30 Evans 30+ shoppers e.g. Dependent child purchases snacks based on packaging. e.g. larger pack sizes for large families based on household structure
dividing the market in terms of class differences such as income and occupation (social class alone is too imprecise) - 6 classes of occupation adds to simplicity
dividing the market in terms of unique personality factors e.g. values (standards, rules, norms used to make judgements), attitudes, lifestyle, loyalty, benefits sought. (e.g. watch bought as timepiece, gift, fashion item
divides markets into groups based on their knowledge, attitudes, uses and response to a product (benefits sought, usage, occasion)
classifying neighbourhoods based on principal that residents near are likely to have similar demographic, socioeconomic and lifestyle characteristics e.g. analysing sales data of people in a certain postcode
disposable income - expenditures on necessity of life e.g. mortgage payments
income available to spend after taxation
splitting market in terms of regions, different customers may have different preferences based on location
Highlighting product attributes as being environmentally friendly is an example of?
The process of creating a distinctive identity for a product that differentiates it from its competitors (e.g. memorable logo, All the combined impressions and experiences associated with a particular company, good or service, relate to on an emotional level
What is the purpose of branding?
Add value, differentiation, reduce risks,
The following elements work together to project a consistent image and are instantly recognizable. (name, words, letters, symbols, logo
to have value, a brand must have consistency, reduce buyers level of perceived risk, offer a range of functional and emotional attributes that they value.
consumers must come to learn that a brand stands for the same set of attribute on all purchases. i.e. the taste stays the same described by the brand name and remains same throughout.
Branding simplifies decision making processes by providing a sense of security and consistency for buyers which may be absent outside of a relationship with supplier. (addresses physical, psychological, performance and financial risk)
when a product provides the customer with functional utility e.g. warmth, capability of iPhone.
when a product provides a positive feeling when customers purchase or use a particular brand (feel-good factor of buying fair trade)