MARK2051 Lecture Notes - Group Dynamics, Consumer Behaviour, Competitive Advantage
Lecture 2: Consumer Behaviour and Marketing Strategy
Definitions:
Organisation: collection of resources and capabilities, which result in certain strengths and
weaknesses in the market.
Consumer need: potential demand in the market.
(Consumer desires) – (Consumer has) = (Consumer need)
Sustainable advantage: Competitive advantage is satisfying needs better than competition.
Sustainable advantage is difficult to imitate.
What is marketing strategy?
Marketing Strategy: process of matching organisation’s strengths to customer needs.
Goal? Achieve sustainable competitive advantage.
The goal of marketing strategy:
Competitive Advantage: NUU
1. No imitation (hard to copy)
2. Uniqueness (different to what’s already in the market)
3. Utility (satisfy a need? Achieve a goal?)
Elements of marketing strategy:
1. Segment: Understand Consumers
a. Determine dimensions to describe customers in market (e.g. demographics (age,
geography, subculture), psychographics (personality, lifestyle)
a. Consumers are heterogeneous
b. Determine similarities and differences along each dimension
c. Define needs and goals of each segment
a. Provide utility, not products
d. Understand how these will change over time
2. Target: Choose Consumers
a. Evaluate each segment w/- company strengths + weaknesses
b. Choose segment w/- highest potential for strategic match
a. Compete in segments where you can establish competitive advantage
3. Position: To achieve Competitive Advantage
a. We need to know:
a. Product
b. Communication
c. Price
d. Distribution
-How consumers perceive + construct brand images? Can they be influenced?
-What are mental associations + how are they formed?
-What is utility?
-How do consumers differentiate between products?
Marketing levers
Positioning is implemented by four main marketing-mix levers:
1. Product: attributes, utility
2. Communication: brand, image
3. Price: signalling v. value proposition
4. Distribution: channels
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Document Summary
Organisation: collection of resources and capabilities, which result in certain strengths and weaknesses in the market. Consumer need: potential demand in the market. (consumer desires) (consumer has) = (consumer need) Sustainable advantage: competitive advantage is satisfying needs better than competition. Marketing strategy: process of matching organisation"s strengths to customer needs. Positioning is implemented by four main marketing-mix levers: product: attributes, utility, communication: brand, image, price: signalling v. value proposition, distribution: channels. Goal: integration of marketing mix elements (levers) to achieve consistent signal, thus a consistent positioning. Consumer behaviour: dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives including: psychological (cognitive, emotional, behavioural, sociological (group dynamics, culture and subculture) Why do we want to understand consumer behaviour: understanding heterogeneity, changing needs and goals and influences on positioning. = to successfully segment, target and position for a successful marketing strategy: understanding psychological and sociological antecedents of decision process =
