MARK2051 Lecture Notes - Lecture 2: Group Dynamics, Marketing Mix, Consumer Behaviour
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
