Definition: The study of consumer’s decision- making processes as they acquire, consume and dispose of goods and services. * How does the consumer behave? * What will ultimately shift them toward a specific product? * Analyses how the consumers think, what motivates them and the environment they live in.
5 STAGES OF DECISION MAKING
When a consumer perceives a need and becomes motivated to enter a decision -making process to resolve the felt need.
Need recognition is caused by the difference between the consumer’s ideal state and the actual state.
A goal exists from the consumer: changing from a negative situation to a neutral state. Sources could be external or internal, be simple to complex and arise from the consumer’s current and/ or desired state. * Out of stock * Dissatisfaction * New needs, wants * Related product purchase * Marketer induced need recognition * New products
3)Evaluation and alternatives
5)Post- purchase decision
Target market: it divides the markets into groups of people who have similar characteristics. The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets.
Targeting: it identifies the group most likely to respond to your communication and therefore, be profitable.
Target segment( or market): it defines attitude, behavior to better meet their needs. n organization’s proactive selection of a suitable market segment (or segments) with the intention of heavily focusing the firm’s marketing offers and activities towards this group of related consumers.
Positioning is the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products.