Customer Behaviour

The term 'behaviour' describes what people do, how people react. how they conduct themselves.
marketers need to understand behaviour because people behave in certain ways.

all behaviour is affected by circumstances.
needs are those things we believe that we must have
wants are the things we should like to have

marketers must convert wants in to needs. so marketer identify the needs, and then design  ( build benefit ) product offerings to satisfy them.

financial marketers, of course, provide credit so that current wants can be turned into needs - and pay for later.


Behaviour change happened because something triggered us to try :
- we may have been served it by a friend
- an advertisement may have interested us
- a free sample may have been put through the door
- a special offer may have been in the shop
- the shop may have been out of stock

Motivation

is the internal driving force that causes us to act. no motivation, no action.

Maslow is probably the best known behavioural scientist because he presents his teoriess of motivation so clearly.
Maslow's hierarchy
1. Need to realise full potential
2. Need for self-esteem
3. Need for love and to belong
4. Need for safety and security
5. Need for clothing and shelter ( Need for survival )

marketer uses an incentive when offering a benefit. the best incentives are those that link to an individual's motivation.

Market Knowledge
Marketers have to know quote a lot about their customers and consumers and their potential customers and consumers.
Need to Discover :
- Who has a need that we can satisfy
- Why people buy particular product offers
- When people buy certain product offers
- where people buy
- how people buy

Segmentation, Targeting, and Positioning

marketers have to know quite alot about their customers and consumers and their potential customers and consumers. we need to discover.

Segmentation 

is the dividing of a market into groups of consumers that share common needs. ( worsam )

( segmentation criteria ) a segment must be :
- Measurable : it must be possible to measure the size of the segment. how many are within it
- Substantial : a segment must be substantial enough to be of value to the organisation. it is not a segment if it is too large or to small
- Accesible : it must be possible to acces members of the segment with promotion and product offer
- Differentiated : each segment mus be uniqe. different from all of the others
- Actionable : Marketing plans must be possible

These are the key forms of segmentation :
Geographic - allows people to be divided by where they lived, or work
Demographic - age, sex, religion, marital status, job, etc
Social grade - Social classification. divides the population according to their role in life
  A.   Upper middle class ( bishops, surgeons, directors of large firm, etc )
  B.   Middle class ( vicars, collage lecturers, police inspectors, etc )
  C1. Lower middle class ( curates, student nurses, police sergeants, etc )
  C2. Skilled working class ( foremen, craftsmen, police constable, etc )
  D.   Manual workers ( most semi-skilled and unskilled workers )
  E.   Those at the lowest level of subsistence
Geodemographic -  available anywhere that a census of population is taken, and post or zip code are used. all the major media have profiled their readership. they can provide geodemographic profiles of those who read, or view their product. it is then simple to match segments and the media that most accurately reaches them.

Targeting

 is selecting one or more market segments to enter. ( worsam )
targeted segments are made up of individuals. these can be divided into target audiences and the best media reach them can be chosen. if there is no targeting there can be no tight control on marketing communication.
Target audience identification is essential to identify each of the target audiences from each of the segments you intend to target. the same product offer can then be sold to each audience, by modifying the marketing mix to meet the needs of the audience.
The more detailed the information - the more precise the profiling- the more tightly the audience is targeted. ( Profiling )

Positioning

is create a concept within the minds of members of identified target audiences.

positioning is established when a person has a clear mental picture of particular product or name.

physical positioning is  a tactical matter for the sales people who deal with retailers. each supplier wants a good display position, but there are only so many available. therefore incentives are offered to the retailers to secure prominent display space. usually on weekly basis.

sources : The official LCCI Examinations board guide