Consumer Decision-Making Process, Segmentation and Target Market Strategy

Part 1: Consumer Decision-Making Process

Task:

1. Consumer decision-making process. Student can identify how marketing strategy can influence each of the steps in the consumer decision-making process.
2. Segmentation. Students can use the segmentation characteristics to identify and describe market segments.
3. Target market & strategy. Students can identify a usable market segment to be a target market and determine an appropriate target-market strategy
4. Positioning. Students can develop and interpret a perceptual map.

Prepare your assignment beginning with a title page with your name and the name of your product or service. Then answer each of the following questions (two in part 1 and two in part 2) in order and number the beginning of your response to each question. Do not repeat the question. Do use headings to separate the sections.

1. Consumer decision-making process. Go through the six steps of the purchase process outlined in the readings and identify where marketing can influence each of the six steps. For example, if a consumer just identified a need for your product in step one, then the company can advertise how your product fills that need. Or, if a consumer purchased your product, the consumer can be called and asked about their satisfaction with the product and if there is any dissatisfaction steps can be taken to ensure the customer satisfaction. Be sure to be more specific with respect to your product or service than this example. 2. Segmentation. Using the various criteria of the segmentation bases described in the week's readings and in identify at least two distinct market segments for your product or service. Each market segment description must include at least three (more if needed) of the characteristics from amongst any of the four bases categories, e.g. one from demographic variables, one or two from psychographic variables, and one from behavioral variables, or a similar scheme. Be sure to explain your choices based on what customer need the product or service offering can fill for each segment. Target market & strategy. Select one of the market segments you described in your segmentation response as the one you believe is or can be the most profitable for your product or service offering and explain why you feel they can represent growth for the company. Refer to the six criteria for an attractive market segment as described in course content under ‘Selecting Target Markets’. Name your target market so you can use this name throughout all of your remaining writing assignments. Your name should be descriptive of the segments' characteristics like 'savvy young shoppers' or 'educated baby boomers', or 'urban hipsters', or the like. The goal is for your faculty member to get a mental image of your target market for the remainder of the semester. Should the company focus all their resources on this new target market (concentrated marketing) or should they continue to pursue both the new and the existing target market as well as other market segments (multi-segment marketing)? Alternatively, is the market so saturated might they be more successful by focusing solely on an even more narrow market segment, perhaps an even narrower version (niche marketing) of your selected target market, as their best chance for growth? What is your reasoning?