consumer insight is fresh marketing information based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships.

Consumer insight is a deep understanding of what motivates consumer preferences and behaviors.

segmentation

target market selection

the company suppliers marketing intermediaries competitors publics customers

Demography: studies human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

Demographic info guides marketers to target specific audience traits, boosting relevance and campaign effectiveness.

Changing family structures Migration Disability

Economic factors affect consumer purchasing power and spending patterns. • Recessions • Crises • Income Distribution

Companies are forming customer insights teams • Include all company functional areas • Collect information from a wide variety of sources • Use insights to create more value for their customers

Products/services are not just physical entities, they reflect deep-felt MEANINGS! Consumption rituals Symbolic values of goods/services

marketing concept

better mouse fallacy

Internal databases are collections of consumer and market information obtained from data sources within the company network

ompetitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

Examine 40 different characteristics of every item in the shopper’s basket to develop an understanding of the customer’s ‘DNA’ and to cluster customers into different types – ‘upmarket’, ‘price sensitive’, ‘green’ etc. They create stores which reflect local demographics and purchasing patterns with great precision.

•Age •Gender •Income •Occupation •Religion •Ethnicity

Personality Compulsive, gregarious, authoritarian, ambitious, etc. Not as useful as it sounds because the link between the buyer and brand personality changes by product category. Does not really work for detergents, cereals, etc.

the production concept the product concept the selling concept the marketing concept the societal marketing concept the sustainable marketing concept

Intangibility Inseparability Variability Perishability

packaging,features,styling,brand name ,quality after sale service warranty installation delivery and credit

Convenience Products – detergent, fast food, sugar, magazines, etc. • Shopping Products – furniture, clothing, used cars, plane tickets, etc. • Speciality Products – brands matter. Cars, branded clothing, medical and legal services, etc. • Unsought Products – life insurance, etc.

A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers.

company Value Consumer Perceptions & Preferences Barrier to Competition High Profits – strong brands associated with premium prices. Net profit margins! Base for Brand Extensions Quality Certification Trust

• A strategic point of view • Central to creating customer value, not justimages • Key tool for creating & maintaining competitive advantage • Cultures that circulate in society as conventional stories

• Downward Stretch • Upward Stretch • Two-way Stretch

too short if you can increase profits by adding items • too long if you can increase profits by dropping items

Product Line Filling or Product Line Stretching. Filling adding more items within the present range of the line (different colors, designs, sizes, etc) Stretching introducing items at the lower end or the upper end or both

Product Mix: total set of brands marketed in a company. Sum of the product lines offered. Colgate divides its overall product mix into four major lines: oral care, personal care, home care, and pet nutrition. Each product line consists of many brands and items

WIDTH: Number of different product lines carried. Unilever has: paper, food, household cleaning, cosmetics, & personal care products. LENGTH: Total number of items the company carries within its product lines. Nestle waters: Perrier, Vittel, & 70 others (Pellegrino, Buxton, etc.) DEPTH: Number of versions offered of each product in the line. Colgate toothpaste has 11 varieties

Price is the amount of money charged for a product or a service. • Only element of the marketing mix that generates revenue on the spot. • Price cannot be set in isolation. • You need to consider the other Ps and the consumers! Price is the amount of money charged for a product or a service. • Only element of the marketing mix that generates revenue on the spot. • Price cannot be set in isolation. • You need to consider the other Ps and the consumers!

• Overall Marketing Strategy, Objectives, and Mix • Organizational Considerations • The Market and Demand • The Economy • Other External Factors

1. Customer Value-Based Pricing – consumer driven 2. Cost-Based Pricing – product driven 3. Competition-Based Pricing – competitors’ strategies driven

Setting price based on buyers’ perceptions of value rather than on the seller’s cost

Good-Value Pricing Everyday Low Pricing High-Low Pricing Value-Added Pricing

Offering just the right combination of quality and good service at a fair price. Armani offers the less-expensive, more-casual Armani Exchange fashion line.

charging a constant, everyday low price with few or no temporary price discounts. BiM practises everyday low pricing (EDLP).

involves charging higher prices on an everyday basis

Attaching value-added features and services to differentiate a company’s offers and charging higher prices. Rather than cutting prices to match competitors, they attach value- added features and services to differentiate their offers and thus support their higher prices. e.g. movie theatre chains are adding amenities and charging more rather than cutting services to maintain lower admission prices.

Costs set the floor for the price that the company can charge. • Cost-based pricing involves setting prices based on the costs of producing, distributing and selling the product plus a fair rate of return for the company’s effort and risk. • A company’s costs may be an important element in its pricing strategy

The identification of individuals with similar characteristics that have significant implications for the determination of marketing strategy

Each buyer has unique needs... so each buyer is potentially a separate market.

b

Creates the largest potential market, lowest costs & lower prices coca cola

The company tries to isolate broad segments that make up a market & adapts its offers to match the needs of one or more segments.

Niche marketing is focusing on a specific market segment with specialized products or services. nike athletic geae fir street hockey

customizing store’s offerings according to the area.

tailoring products & marketing programs to the needs/preferences of individual customers. Haute-couture!

•Age & Life Cycle •Gender •Income •Occupation •Religion •Ethnicity

life style personality social class

• Purchase Occasion • Benefits Sought • User status • Usage rate • Loyalty status

b

Measurable Accessible Substantial Differentiable Actionable

Market targeting is selecting a specific segment for focused marketing efforts, tailoring strategies to meet the needs of that chosen audience.

mass(undifferentiated marketing) segment marketing niche marketing micro marketing

?

Positioning strategy in marketing is about creating a unique and favorable perception of a product or brand relative to competitors, highlighting distinctive qualities.

b

A perceptual map is a useful positioning tool that identifies the important dimensions and then asks consumers to place competitors in this space. Marketers can then analyse similarities and differences between products and the opportunities for new products possessing attributes not represented by current brands