1. Steps in Target Market Analysis2. Concept of Buyer Behavior3. Concept of “Breaking the Code”4. Issues Required to Understand Buyer BehaviorCustomer BehaviorMKT 327: CLASS ELEVEN “UNDERSTA NDING BUYERS PART I”Theme: “ Breaking the Code”Pre-Class Tasks:1. Read Chapter 4: LO & LO2. Complete Quiz 9 on D2L3. There is an Extra Credit Exercise on D2LLearning Objectives:1. Steps in Target Market Analysis2. Concept of Buyer Behavior3. Concept of “Breaking the Code”4. Issues Required to Understand Buyer Behavior Who Buys What is Bought Why is it Bought How is it Bought Where is it Bought When is it BoughtKey Terms:Customer BehaviorType of CustomerConsumer OrganizationalTypes of BuyersHeavy/Light Infrequent/Frequent Deal Prone/LoyalWhat is BoughtProduct Attributes Product BenefitsPurchase Decision Making ProcessProblem IdentificationInformation SearchAlternative EvaluationPurchase DecisionPost-Purchase BehaviorLevel of Involvement High Low Extended Problem Solving Limited Problem Solving Routine Problem SolvingSituational InfluencesPurchase task Temporal EffectsTarget Market Analysis – The purpose of a target market analysis is to either establish that the organization’s marketing strategy is ‘On Code’ or todiscover what the right ‘Code’ should be. Being on ‘Code’ refers to whether the product or service lines up with some deep rooted social (tribal) and/or psychological factor that drives consumption. As stated earlier consumption like marketing is a social mechanism. In fact it is one of the most basic social mechanism. Humans are ‘hard wired’ in a way that drives them to behave in general and consume in particular in a way that maximizes their ability to survive. Being on Code means having the purchase ofthe organization’s product or service consistent with one of the many powerful drives directing the person’s perceived survival (in the broad sense) needs.There are 2 components or steps in Target market Analysis. They are: 1. Buyer Behavior analysis, and2. Segmentation analysisBuyer Behavior The purpose of a buyer behavior analysis is to obtain an in depth understanding of who customer is, what they essentially are buying, and why and how they buy in order to gain insights for creating and capturing value. Essentially the objective is to unlock the core code that drives consumption behavior in a particular area. Thus a buyer behavior analysis has these six components or steps: 1) determining who the buyer is; 2) determiningat what stage of the buying process is the buyer and with what level of involvement; 3) determining what is bought; 4) assessing why buyer buys a. by understanding social influences, and b. by understanding psychological influences and 5) understanding the context of the purchase which requires knowing how, when, and where they buy).The data needed by these steps are as follows:- To a certain extent every decision to purchase some product or service evolves through five stages. Marketing must move buyers through eachof these stages so it is important to know at what stage of the purchase decision process various consumers are in. These stages are: (problem recognition, information search, evaluation, purchase decision, and post-purchase behavior. The way and pace a buyer moves through thesestages is dictated by their level of involvement (high vs. low involvement). - The data needed to identify who buys involves determining the type of customer (first specifying whether they are a consumer or business or institution, then requiring that type of customers’ demographic and psychographic profiles), and determining the type of buyer (requiring buying quantity, buying frequency, and level of buying loyalty).- The data needed to specify exactly what customers are buying involvesproduct attributes and product benefits (know distinctions).AntecedentsSurroundings (social &
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