8. Influence on consumer purchase decision
Consumer Psychological
Social Elements
Demographics Factors
• Income • Culture • Personality
• Education • Social Class • Attitude
• Occupation • Reference • Class
• Gender group consciousness
• Age • Opinion leader • Motivation
• Marital status • Social • Perceived risk
• Mobility performance • Importance of
• Family life purchase
cycle
11. Market – Driven Strategies
• Understanding • Superior to
market & competition
customers that • Applicable to
form the multiple situation
MARKET` • Difficult to copy
Market Distinctive
oriented capabilities
Matching
Superior Customer
performance value with
Capabilities
• Customer Value • Comparing
• Providing value to organization’s
customer capabilities with
• Value initiative Customer value
12. Market – Driven Strategies
• Market-Driven strategies begin with an understanding of
market and the customer that form the market. The
characteristics of MD Strategies include becoming market
oriented, determining distinctive capabilities, finding a match
between customer value and organizational capabilities and
obtaining superior performance by providing superior customer
value.
• Distinctive capabilities are superior to competition, difficult to
duplicate and applicable to multiple competitive situations.
These can be classified as Outside-in, Inside-out and spanning
processes. The Outside-in provides direction to Inside-out &
spanning processes by identifying customer needs and
superior value opportunities.
14. Strategies development
Corporate SBU Marketing
• Mission & • BU market • Product-market
objectives opportunities Analysis,
• SBUs • Position against segmentation,
• Long-term competition competition
strategic • Financial analysis &
planning for Co. situation & continuous
& SBUs projection learning of
market
• Strengths &
Weaknesses • Targeting ,
positioning &
relationship
• Marketing-mix
strategy
15. Product-Market Segmentation-Characteristics
Complex/Simple market Turbulent/Stable market
Many segments Change in segment
Many competition sources Change in competition
Multiple distribution channel Change in distribution channel
Complex value proposition Change in value proposition
Complicated decision making process Change in decision making process
16. Product-Market Segmentation - Steps
Select Area
Decide Brands
Data - Buyer’s perception for available/
ideal brands
Form composite attribute Groups
Prepare Consumer Perception Map & Plot
Groups & Brands – Evaluate & Interpret
17. Consumer Perception Map
Expensive
A
E G-2
B
Low G-3
High
Quality G-1 Quality
C
G-4
D
Inexpensive
18. Key
Market sensing 1 = Disaster
7 = Ideal
Probability of the event occurring
High Medium Low
7
Field of
6 Utopia
Dream
Effect 5
Of the
Event 4 Things to
On the Watch
Company 3
2 Future
Danger Risk
1
20. New Product Concepts
• Modification
• Innovation
By Company • Minor Innovation
• Major Innovation
By Company • New to Company, Not New to Market
• New to Company and New to Market
& Market
• Transformational Innovation
Innovation • Substantial Innovation
• Incremental Innovation
21. New Product Planning Process
Testing &
commercial.
Product &
Marketing
Strategy
Business development
Analysis
Screening &
Evaluation /
Concept
development
Need & Testing
analysis &
Idea
generation
22. Pizza Hut in Karachi
Q.1) Outside-in ; Market sensing-very limited market, R&D
Inside-out: Production technology, Envrl. Health etc.
Q.2) Demographics: Income & Age
Social: Social class & Social performance / Life cycle
Psychological; Attitude & Personality
1 Income 2 Age 3 Attitude 4 Social class
5 Personality 6 Social performance / Life cycle
Q.3) No. Its Simple & Turbulent
Segment, Competition, Channel are Limited but have
changed over the time.
23. Pizza Hut in Karachi
Expensive
G-1
Low G-2
High
Quality Quality
G-3
Inexpensive
24. Pizza Hut in Karachi
Q.5)
Utopia:
Grand political alliance
Increase in tourism
International trade exhibition
Future Risk:
Events causing political & economic instability
Decline in international relation at state level
Cultural, religious or ethical moves creating
negative impact on international brands