Marketing 101: Choosing the Right Competitive Advantages

Previously I explored the concept of Market Differentiation which involves Product Positioning through a Value Proposition.  Recall that a Value Proposition is not a "mystical" marketing term, but in fact is an essential marketing principle.  A Value Proposition consists of two parts: a differentiated value, and a position.  The differentiated value refers to the ways our products and services stand out from the competition inside...

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Marketing 101: The First Step of Market Differentiation

In our previous discussion we defined a Target Market as a set of buyers that share a set of common needs or characteristics that we decide to serve.  When targeting a market segment we examine three factors: a segment's size and growth trends, a segment's structural attractiveness, and a company's long term objectives and available resources. Once we've defined the target market, and chosen one of four appropriate marketing methods, our eyes...

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Marketing 101: Market Targeting

Recall that a customer driven marketing strategy consists of four distinct "steps".  Previously I focused on the first step: Segmentation.  I defined Market Segmentation as dividing a market into smaller groups that contain distinct needs, characteristics, or behaviors that may require distinct products, services and marketing mixes.  Because buyers have different wants, desires, needs, geographic locations, economic resources,...

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Marketing 101: Market Segmentation

In my overview of Customer Driven Targeted Marketing, I stated that no human being is like another. Two people may be very similar, but they will always be different consumers, influenced by different attitudes and beliefs. As marketers we have to accept the fact that we can't appeal to all types of buyers in the marketplace, and there is just no way to appeal to any two buyers in the exact same way.  I also stated that in order to...

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Marketing 101: Overview of Customer Driven Marketing Strategies

One thing is for sure, no human being is like another. Two people may be very similar, but they will always be different consumers, influenced by different attitudes and beliefs. As marketers we have to accept the fact that we can't appeal to all types of buyers in the marketplace, and there is just no way to appeal to any two buyers in the exact same way. In order to achieve maximum value from consumers according to our working definition of...

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Marketing 101: Post-Purchase Behavior

So far I've examined four of the five stages of the Buyer Decision Process: Need Recognition, Information Search, Evaluation of Alternatives, and the actual Purchase Decision.  We've discovered that each stage is complicated, and that marketers will need to understand their customer's journey as they construct meaningful campaigns and messaging.  These statements are even more important to reckon with in the last stage of the Buyer Decision...

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Marketing 101: Purchase Decision

In my examination of the Buyer Decision Process I've explored the first three steps: Need Recognition, Information Search, and the Evaluation of Alternatives. Generally the completion of alternative evaluation will lead to our fourth step, the Purchase Decision. The Purchase Decision We can define the Purchase Decision simply as the consumer's choice of which brand to purchase.  Once the consumer forms their beliefs and attitudes about a...

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Marketing 101: The Buyer Decision Process: Evaluation of Alternatives

In my examination of the Buyer Decision Process, I've started by exploring the first two stages: Need Recognition and Information Search.  Need Recognition refers to the instance when a consumer recognizes that a need, or problem exists that needs to be satisfied, ie: I need a new refrigerator.  If the need is strong enough, an Information Search is usually initiated.  As a consumer does more research they will inevitably become...

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Marketing 101: The Buyer Decision Process - Information Search

In my last posted I started to discuss the Buyer Decision Process.  Simply defined, it's conducted by a consumer before, during, and after the purchase of products and services. The process consists of five defined steps or stages that typically occur in a certain order: Need recognition > Information Search > Evaluation of Alternatives > Purchase Decision > Post-Purchase Behavior. Need Recognition refers to the instance where...

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Marketing 101: The Buyer Decision Process - Need Recognition

Over the past few months we've spent the majority of our time exploring the many ways consumers are influenced throughout the buying process.  First was an overview of Consumer Buying Behavior, which we placed into the Model of Consumer Buyer Behavior.  We summarized that [1] Consumers "ingest" marketing and other stimuli, such as the four P's: Product, Price, Place and Promotion [2] the stimuli enters their "buyer black box" [3] the...

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Marketing 101: Variety Seeking Buying Behavior

In previous posts I examined Complex Buying Behavior, Dissonance-Reducing Buying Behavior, and Habitual Buying Behavior.  Finally, we will quickly define Variety Seeking Buying Behavior. Variety Seeking Buying Behavior Variety Seeking Buying Behavior refers to situations where there is low consumer involvement, but the consumer perceives significant differences between the brand options in front of them.  In variety seeking situations...

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Marketing 101: Habitual Buying Behavior

So far we have examined Complex Buying Behavior and Dissonance-Reducing Buying Behavior.  Next, let's quickly look at Habitual Buying Behavior. Habitual Buying Behavior Habitual Buying Behavior refers to situations where a consumer has low involvement in a purchase, and is perceiving very few significant differences between brands in a given product category.  So many products fit into this scenario.  Most of them are everyday...

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Marketing 101: Dissonance-Reducing Buying Behavior

In my last post I examined Complex Buying Behavior.  Next, let's quickly dig into Dissonance-Reducing Buying Behavior. Dissonance-Reducing Buying Behavior Just like Complex Buying Behavior, consumers with Dissonance-Reducing Buying Behavior have high amounts of involvement.  However, buyers in this behavioral situation are perceiving very few differences among the brands they are selecting products from.  The key word here is perceiving. ...

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