Market Analysis Components-
The Consumers- discovering customer’s needs is complex but can be done through market research Ex. Target studied college freshman needs and after various focus groups launched a very successful dorm room line The Company- a firm must fully understand its own ability to meet customer needs by evaluating all aspects; for marketing: new product development capabilities, channel strength, advertising abilities, service capabilities, marketing research abilities, market and consumer knowledge The Competitors- it is not possible to consistently be better than the competition of meeting customer needs w/o understanding the competitions capabilities and strategies The Conditions- state of the economy, physical environment (deterioration of the environment has created demand for envi. sound products but also govt. regulations), govt. regulations, and technological developments affect consumer needs as well as company and competitor capabilities *a firm cannot develop a sound marketing strategy without anticipating the conditions under which that strategy will be implemented
Market Segment- a portion of a larger market whose needs differ somewhat from the larger market
*perhaps the most important marketing decision a firm makes is which market segment(s) to focus on - the segment must be large enough to be served profitably; however, technology has made it easier to target smaller segments and even individuals profitably, Ex. Behavioral targeting- where a customer’s online activity is tracked and specific banner ads are delivered based on that activity
Segmentation involves 4 steps-
1. Identify product-related need sets
2. Grouping customers with similar need sets
3. Describing each group
4. Selecting an attractive segment(s) to serve
1. Product-Related Need Sets
Chapter 5 slides- Emotional Assimilation in Consumer Subcultures
Consumer Subculture: a small group of society that shares commitment to a particular product class, brand, or consumption activity
Characteristics include: * hierarchical social structure * shared beliefs and values * unique language, rituals, and modes of symbolic expression
Ex. Reasons for below Subcultures:
Sky-divers – self-enhancement through high-risk leisure
River Rafters – self-actualization through extraordinary experience
Harley Riders – camaraderie through shared meaning
Mountain Men – fantasy quest for self-transformation
“Trekkies” – separation of commercial and sacred
Brand Communities – identity through mass-mediated ethos
Burning Man – self-expression through market resistance
Apple Newton Community – religiosity in marginalized brands
Social Structure of Subcultures
Hard core members – absolutely committed to the subculture’s ideology, bylaws, norms, and welfare.
Soft core members – composed of prospective and probationary individuals.
Peripheral pretenders – ones who delve only superficially into the subculture.
The Problem * Do we, as consumer researchers, really understand the process of becoming an actual core member of a consumer subculture?
The Relevance: * Core members provide the key to brand loyalty. * Core members are important because they attract other consumers via word of mouth. * Core members consume most of the product
Becoming a member of a consumer subculture generally means entering at the bottom of a status hierarchy and undergoing a process of socialization
Research Questions 1. What role do emotions play in the process of sub-cultural assimilation? 2. What are the key phases of sub-cultural assimilation? 3. Do emotions change with the phase of assimilation?
Interaction Ritual Theory * A micro-sociological theory that defines society in terms of a series of