COMMERCE 2MA3 Lecture Notes - Lecture 17: Brand Loyalty, Micromarketing, Fixed Cost
7 Nov 2016
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Document Summary
Two people might not have the same benefits for the same product. It depends on the way the consumer uses the product. Occasions such as weddings, birthday and so on are a good way to market to people. Usage rate deals with the frequency of consumption of the product. Brand loyalty is liking towards the brand and defending it. It does not necessarily have to do with purchases. Brand inceptors postpone the purchase if their choice of brand is not available. The four basic criteria to figure out the segment is good. Homogeneous within two people within the same group should be homogeneous and between groups should be heterogeneous. People in the same segment should have the same responses. Segments should be large enough to be profitable. Segment size (# of people in the segment) = 60 million (< 15 years) Purchase behaviour = *1 time purchase. Concentrated focus on one segment but can market to other.
