Task A- Group Assignment: 40%
This assignment is designed to encourage students to explore the impact of buyer behaviour on marketing strategy through the examination of an actual product category. Working in groups, you are required to demonstrate the application of buyer behaviour concepts at various stages of an organisation’s marketing planning process. The discussion of concepts will help you to achieve a deeper level of learning. The application of the concepts will prepare you for discussion and use of these concepts in other marketing subjects and in the world of work.
The final report is due in Week 12.
What do we need to do?
- Select a specific product (good or service) that has been introduced to the market in the last two three years; is of interest to the group and the group considers successful. It is recommended you choose a specific product within a product category, i.e. imported beers – e.g. Heineken or Boutique beers – e.g. Mountain Goat beer. Ensure there is availability of secondary information before you start. You are not to access primary data. – based on Singapore market
- Select another brand (close competitor) which is competing with your brand which could serve as a substitute in the same market. You can choose any brand as the main competitor. The rule of three years does not apply to the main competitor.
The assignment will be structured within a marketing mix framework, exploring internal Chapter 8 – 11, external Chapter 12 – 16 and decision-making influences Chapter 3 – 7 and involves a detailed and in depth analysis of the primary target market.
Students will be given a detailed scoring sheet as a feedback mechanism.
The report will culminate in an evaluation of the marketing strategies employed.
Acquire following background information in terms of-
Start with Table of Contents; do not need to include an executive summary and an introduction
- Market – Section 1 200 words
– 200 words in a table format
– start with a short paragraph to introduce the brand; followed by a table; for the main brand; do not need to cover any information about the competitors
1.1. Size of market, market share, market position, depth and breadth of product range, company’s principal product (or products) in terms of features and benefits, positioning of the product, product life cycle stage. – You do not need to cover all these points above; only some relevant points
- Competitors – Section 2 200 words
2.1Number of direct = main competitor that you will compare with the main brand in the following part of the report / indirect (another competitor; can be any brand that consumers might consider buying) competitors, size of competitors, positioning as low cost, niche players
Start with a small paragraph to introduce these two competitors; followed by a table (point form) (to compare the 4Ps (a brief description only)
|Product||e.g. brand image, product attributes in general||e.g. brand image, product attributes in general|
|Price||e.g. pricing strategy||e.g. pricing strategy|
|Promotion||e.g. advertising, sales promotion and online marketing etc.||e.g. advertising, sales promotion and online marketing etc.|
|Place||e.g. online and store retailing||e.g. online and store retailing|
- Identification of Target Market(s): Section 3 200 Words
For each of the two products (chosen e.g. Toshiba and competitor LG) identify-
3.1 Will be written for the chosen brand – Toshiba and LGWho is (are) the primary (i.e. current) target market(s) for this product? Describe these segments in terms of:
-demographics: e.g., subculture, social class, family life cycle stage, age, gender, occupation, education etc.
-psychographic: personality, AIOs, (activities, interest, opinions – Ch. 12) = lifestyle and/or lifestyle such as VALS2 or geodemographics, etc,
-behavioural: benefits sought, deal proneness, heavy usage, etc.
Start with a small paragraph; followed by a table (point form); you need to identify TWO current target segments that the chosen brand and the main competitor is targeting
|Current segment 1||Current segment 2||Current segment 1||Current segment 2|
|Demographics||Age; gender; incomeE.g. women, housewives, 25 – 40 years, middle class||E.g. women, working, 25 – 40 years, middle class||Could be very similar to Toshiba|
|Psychographics||How they live – lifestyle (AIO)= e.g. convenient lifestyle|
|Behavioural||Benefits they are looking for – e.g. Latest technology, energy saving||e.g. favourable attitude toward Korean brand, cheaper (Benefits)|
3.2 Are there any potential market segments you would recommend for this product? Describe these segments as above.
This section may be depicted in a table
You need to identify ONE potential market segment for e.g. chosen brand Toshiba and main competitor LG; follow the same format used in 3.1
|Potential segment||Potential segment|
|Potential||Single household||Single household|
|Demographics||Age; gender; income||Could be very similar to Toshiba|
|Psychographics||How they live – lifestyle|
|Behavioural||Benefits they are looking for|
Select one target segment profiled in question 3 Section 3.1from your chosen product that is considered a primary segment. Investigate and discuss how the following influences impact upon this identified segment and product/brand.
YOU NEED TO CHOOSE ONLY ONE PRIMARY TARGET SEGMENT (e.g. Toshiba – you have chosen Current Primary Segment 1 – housewives) AND STATE CLEARWLY AT THE END OF SECTION 3 THE CHOICE OF TARGET SEGMENT FOR SECTION 4 TO 8. THEN YOU MUST WRITE THE FOLLOWING PARTS BASED ON “Current Primary Segment 1 – housewives” PRIMARY SEGMENT THAT YOU HAVE CHOSEN
SIMILARLY, YOU WILL ALSO CHOOSE “Current Primary Segment 1 – housewives” FOR LG as the competitor brand
- External Influences Section 4 – you will write this part for the chosen brand (e.g. Toshiba) – refer to Chapter 12 – 16 600 words +/-
4.1 Culture and Subculture: Are the values upheld in the society consistent with the consumption of the product? Does the product appeal to a specific adopter category? – Culture and Subculture: It must write this part based on specific types of values – choose at least one of the following: self-oriented; environment-oriented; other-oriented(Chapter 16) – you need not cover all the components within the chosen orientation, you may choose one or two components only.
– Product appeal to a specific adopter category: Choose one of the following categories: innovators, early adopters, early majority (Chapter 14)
4.2 Demographics: Is there an influence of age, gender, socioeconomic influences upon consumption? – Refer to Section 3.1; do not repeat info you have already covered in 3.1 in this part but answer the question directly Chapter 12 (DO NOT REPEAT FROM 3.1)
4.3 Group influence: Is there a reference group influence element on this product category? – Choose one of the following types: informational; normative; identification influence; Chapter 14
- Internal Influences Section 5 Chapter 8 – 11; 800 words+/-
5.1 Needs and Motives: How readily is the product positioned to satisfy different needs or motives? What needs are being met? (E.g. Maslow’s Hierarchy of Needs) Chapter 10; Choose at least ONE type of needs from Maslow’s Hierarchy of Needs; explain what it is and apply
5.2 Perception: What are the strategic implications of the process of perception for marketers? Chapter 8; you need to cover these three stages – exposure, attention, interpretation; use an advertisement from online/ traditional source – e.g. can be TV; YouTube or newspaper; must be shown in Singapore before; analyse the ad
5.3 Learning: Given the profile of each segment, which application of learning theories would be most relevant to use in promotion? E.g.; reasoning versus operant conditioning? Chapter 9; choose one of the following theories – classical conditioning; operant conditioning; modelling; reasoning; explain the theory and apply to the case (how do consumers learn about e.g. Toshiba)
5.4 Lifestyle- Does the product appeal to a particular lifestyle? Is the product appropriate for one or more lifestyles? Chapter 12; explain AIO – activities, interest, opinions (choose a few relevant points from AIO table in Chapter 12) – Refer to Section 3.1 – do not need to repeat the info here; explain how lifestyle affects decision making
- Consumer decision making processes: Section 6- Chapter 3 – 7; 600 words +/-
6.1 What type and amount of information (sources of information Chapter 3) about this product do its consumers use? How involved are they (low or high involvement Chapter 3)? Which level of decision making are they in (habitual; limited; extended decision – choose one Chapter 3)? Would the brand be considered to be part of this segment’s evoked set? (Use a flow chart to indicate how customers choose a brand; Toshiba is the chosen brand in the evoked set; start with a chart and then follow by explanation Chapter 4)
6.2 How do consumers evaluate different brands in this product category? Which evaluative criteria are possibly used in making a purchase decision? Identify a few criteria (e.g. price; country of origin) and explain how consumers go through the choice Chapter 5
- Identify a few criteria. E.g. Price, Quality.
- Can be very specific. E.g. battery life
Choose 1 Rule
Compare with the competitors with the current product we doing
6.3How do consumers go about shopping for this product? Chapter 6 identify how people make a purchase choice – choose one “brand first; outlet second”; “outlet first; brand second”; or both
6.4How likely is post purchase behaviour likely to occur? If so, how can it be reduced? Chapter 7; you need to start with the explanation of satisfaction vs. dissatisfaction; you must explain what you can do to reduce dissonance when customers are dissatisfied