CONSUMER ANALYSIS (An Important Part of Developing a Sound Marketing Strategy)

All marketing plans should begin with a look at the all-important consumer and his or her needs. It is important to identify segments or groups with similar needs so that marketing efforts can be directly targeted at them. Several important questions must be asked to find this market:

·        What is the need?

·        Who is buying and who is using the product?

·        What is the buying process?

·        Is what I am selling a high or low involvement product?

·        How can I segment the market?

A. What is the need your product addresses?

This question may seem unnecessary but answering it may help you uncover a potential market for you product that was previously overlooked. That is why it is important to answer this question before your thoughts are fixed in the conventional way of thinking i.e. it help you to first think outside the box.

B. Who is buying, who is using?

Buyers most times are different from the users e.g. women make the majority of purchases of men’s underwear and socks, in our environment men make the majority of automobile purchases for their wives, mothers make majority of purchases for their under 10yr old children e.t.c.

Determining the buyer as well as the user provides the essential initial insights to create a marketing plan that would be directed appropriately.

C. What is the buying process?

The buying process includes all steps that a person takes leading to a purchase. It is also called adoption process and problem solving process by some. Understanding the buying process is critical because it will lead to the possible routes to reach the buyers. For any product the buying process can include one or all of the following steps:

Awareness -> Information search -> Evaluate Alternatives -> Purchase ---> Evaluate

E.g. in the instance of soap purchase

Awareness (Smell body) -> Information search (What should I use -> Soap) -> Evaluate alternatives (Ask for advice -> make trip to store -> Read labels) -> Purchase (Buy lux soap) -> Evaluate (Smell body for odor -> Buy Lux soap next time).

Awareness – at some point a person will realize a need which may be triggered by advertising to meet needs such as acceptance, love e.t.c. The question you should ask yourself at this point is how do my consumers become aware of my product?

Information Search – sounds good let me find out more from a variety of sources e.g. sales people, specialty magazines, family, friends and local experts. As a marketing manager you want your target market to get as much favorable information as possible about your product, when and where buyers make their buying decisions.

Evaluate Alternatives – Which is best for me? Placing positive information where you buyers a likely to look is one key to marketing success. At this stage of the buying process the marketing manager would like to identify the influencers of his targets buying behaviour. Distribution is also crucial at this stage. If a product is not readily available a comparable substitute may be chosen just for convenience or immediacy of need.

Purchase Decision – Even though the decision to buy could be yes, in certain instances the first purchase is only a trial. As this is likely to be a first time purchase, offering a money back guarantee might be what would tip the consumer over to purchase your product as he sees there is no risk involved.

Evaluate – also known as post purchase behaviour. Did I make a mistake is the big question. This is also a very crucial step for the marketer as the evaluation of the product by the consumer would determine if he is going to make a repeat purchase which is the main aim of your entire marketing plan i.e. to get a consumer to try your product and keep using. For this reason it is essential that your product does all it says it is going to do.

D. Is the product a high or a low involvement product?

If the consumer feels a high level of risk in buying your product then it is considered as a HIGH INVOLVEMENT PRODUCT on the other hand if a consumer does not feel a high level of risk in buying your product it is considered as a LOW INVOLVEMENT PRODUCT.

There are several reasons for high involvement purchase decisions (e.g. the purchase of cars, professional services, electronics e.t.c.)

·        The need for the products benefit

·        The need for psychological reward e.g. status

·        They are usually higher priced and at times difficult to compare as determining the differences between alternatives makes high involvement purchases difficult especially if the buyer is not an expert.

When it comes to low involvement products purchasing decisions are not difficult because minimum level of acceptable performance is required e.g. a pack of chewing gum, it really doesn’t matter which you choose and if you do not like it, it does not bother you as the cost of trial is low.

The marketer’s magic is at work when he or she transforms a previously low involvement product into a high involvement one e.g. transforming athletic shoes which were once just functional to become a status symbol for young people. These are some ways in which this can be accomplished:

1.    Link the product to a high involvement issue e.g. no cholesterol cooking oil to a wives fear of a husband’s heart attack.

2.    Use involving advertising to create a value expressive message linking your product to social status.

3.    Introduce important characteristics to product i.e. tinkering with an old product by adding distinguishing features e.g. childproof caps on household cleaning liquids

D. Do I intend to segment my market? Why? How?

The question “who is our consumer?” is central to the marketing task. If you think you have something that is for everyone, then a mass marketing strategy is appropriate. If not you must choose a segment for the following functions:

• To identify segments large enough to serve profitably

• To identify segments that can efficiently be reached by marketing efforts

• To help develop marketing programs

When you have a segment in mind you can effectively aim and efficiently execute your marketing activities to yield the most sales and profits without which you risk wasting marketing naira on disinterested people. There are 4 major segment consumer markets

1. Geographic – which are segments according to location

2. Demographic -

Ø  Age: Different generations have different wants and needs

Ø  Sex: different sexes have different uses and buying patterns

Ø  Income: the ability to purchase

Ø  Marital status: Family needs

Ø  Family life cycle: are they starting out (new couples), or empty nesters (elderly).

Ø  Education/Occupation: an indication of the sophistication of the consumer

Ø  Ethnicity, Religion and Race: Particular tastes and preferences

3. Psychographic

Ø  Lifestyles – Activities, interest and opinions

Ø  Personality – Conservative, risk taking, status seeking e.t.c. (people may have different hot buttons that advertising can trigger.)

4. Behavioral

Ø  Usage – Amount of use, manner of use, benefits sought

Ø  Purchase occasion – Gift, vacation, seasonal e.t.c.

Ø  Brand loyalty – Loyalty to one product indicates receptiveness to others

Ø  Responsiveness to price and promotion – some groups respond to special marketing efforts more than others.

In order to adequately assess your chosen segment they have to be:

·        Measurable – quantify its size

·        Accessibility – Can you reach the segment through advertising, sales force or distributors

·        Substantiality – is the segment large enough to bother with?

·        Profitability – are there enough profits to make targeting it worthwhile

·        Compatibility with competition – are your competitors interested in this segment? Are competitors currently investigating it or is it not worth their trouble.

·        Effectiveness – Does your company have the capabilities to adequately service this segment?

·        Defend ability – can you defend yourself against competitors attack?

An example is twenty five to fifty four years old, college educated, professional or business executive employment childless households with incomes greater than N200, 000 per month.

Conclusion

The consumer analysis is a very important part of the marketing plan as seen and we stand the chance of wasting a lot of time, energy and money if we overlook this part of the process.