Chapter 5: Consumer Audience

Approach to Brand Decision

Need Recognition 01

02 Information Search
Evaluation of Alternatives 03

04 Purchase Decisions

Post Purchase Evaluation 05

 Segmentation

Dividing a heterogenous market in homogenous groups

Bases of Segmentation-

Geographic

Demographic

Psychographic

Behavioral
Benefits
 Segmentation
Geographic
Markets are divided into different geographic units

Local to global
 Segmentation
Demographic

The study of human population

Parameters that can be statistically measured

Age, Gender, Ethnicity, Family Size, Religion

 Segmentation
Psychographic

Basis of human personality, lifestyle, interest

Better than demographic segmentation

https://www.youtube.com/watch?v=oE8swB_O3mk
 Segmentation
Behavioral

divides consumers into groups according to the following characteristics:

User status: non-users, ex-users, potential users, first time users,

regular users. Blood bank (regular donors, first-time donors, ex donors),
non branded oral care product users (potential).

Usage Rate: light user, medium user, heavy user. Industrial marketers
refer to the 80-20 rule, meaning 20% of their buyers account for 80%
of their sales volume.
 Segmentation
Benefits

Looking for Specific Benefit

Grouping customers on the basis of those specific benefits

 Targeting

Choose the profitable segments

Design Communication Strategies

Media Selection
How would you target from multiple segments?

Customer Competitor

Market Environment
 Cultural Influence

Sum of values, rituals, symbols, beliefs and thought process

Appreciate the cultural difference

https://www.youtube.com/watch?v=24VerifhVJk&feature=youtu.be&t=67
 Social Influence

Social Class
Reference Groups
Demographic
 Psychological Influence

Perception

Satisfaction

Dissonance
Motivation
Personality
Opinions
https://www.youtube.com/watch?v=0cG0Vw_k-eg
https://www.youtube.com/watch?v=uZ0KNVU2fV0
https://www.youtube.com/watch?v=vQto05XK0ro
https://www.youtube.com/watch?v=koPmuEyP3a0
 Behavioral Influence

Usage Rate: “20% of the market buys the 80% of the product”

Innovation and Adoption

Innovator

Early Adopter

Early Majority

Late Majority

Laggard