Product lifestyle, Brand segmentation and Consumer behaviour LECTURE
21/01/19
What is consumer behaviour?
The study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desire.
Maslow's Hierarchy of needs
Self-actualisation needs: the desire for self-fulfilment in achieving whatever people can.
Esteem and status: striving to achieve a high standing in relation to other people
Social needs: we need social experience and desire products and services that facilitate social exchange
Safety need: protection from the unpredictable happening in life (e.g. accidents)
Physiological needs: the fundamentals of survival
Diverse and changing markets
Most fashion marketers try to attract several market segments.
Consumers buying habits don't remain the same, changes in economic or social conditions can affect the consumers choices.
Segmenting a market
Market segmentation is a way of analysing a market by categorising their specific characteristics.
Specific characteristics include:
- Demographics
- Psychographics
- Geographics
- Behaviouristic/usage
- Situation
- Geodemographic
Segmenting a market
Demographics are statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religon and lifestyle.
Psychographics are studies of consumers based on social and psychological characteristics such as attitudes, interests and opinions.
Geographics are statistics about where people live.
Behaviourists are statistics about consumers based on their knowledge attitudes, use, or response to a product.
Purchase occasion: identifies the instance when a consumer might use a product.
Product benefits: identifies the benefits that consumers desire in a fashion product or service
Usage level and commitment: identifies how often they use a product and their loyalty to purchasing it
Geodemographic segmentation: hybrid segmentation: you are where you live (financial means taste, preferences, lifestyle and consumption habits)
Targeting:
Selected groups are known as target markets
How is technology making it easier for fashion firms to target potential customers?
Brand positioning statement
Brand positioning is defined as the conceptual place you want to won in the target consumers mind - the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximise customer relevancy and competitive distinctiveness, in maximising brand value,
When doing research to inform a brand positioning project, you must be able to answer the following questions:
- What does the brand community currently believe about or value in the brand?
- What might the brand community believe or value about the brand in the future?
- What does the organisation currently claim about the brand?
- What would the organisation like the brand to become down the road?
What is market mapping?
The market map illustrates the range of "positions" that a product can take in a market based on two dimensions that are important to the customer.
Product life cyle
The fashion cycle
The on going introduction, rise, peak, decline, and obsolescence in popularity of specific styles or shapes.
Al styles that come into fashion rotate through the fashion cycle.
Introduction: stage one
- The first stage of the fashion cycle is when new styles, colours, textures and fabrics are introduced.
- The new style may be accepted by a small number of people called fashion people.
- Promotional activities include fashion shows and advertising in high fashion magazines
- Fashions are produced in small quantities at high price.
- Retail buyers purchase limited numbers to see if the style will be accepted.
Growth or Rise: stage two
- The second stage of the fashion cycle when consumer interest grows and the fashion becomes more readily accepted by consumers,
- Mass production brings down the price of the fashion, which results in more sales.
- Styles are manufactured in less expensive materials and in lower quality construction than the original style.
- Promotional efforts are increased in high fashion magazines to heighten consumer awareness.
- Retail buyers order items in quantity.
Maturity (peak): stage three
- The third stage of the fashion cycle during which a style is at its height of popularity.
- The fashion demanded by a almost everyone because it is now within the price range of most consumers and is mass produced in many variations.
- Each retailer tries to persuade customers that its version of the style is the best.
Decline: stage four
- The fourth stage of the fashion cycle when the market is saturated and popularity decreases.
- The fashion is overused and becomes dull and boring
- As the fashion decreases in popularity, retailers mark down their prices.
- Promotions centre around major clearance or closeout sales of the fashion.
Obsolescence: stage five
- The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn, and is no longer produced.
- Ends as an accepted fashion.
Extension strategy:
- Can be defined as a medium to long term plan for lengthening a products life cycle. It is likely to be implemented during maturity or early decline.
- Extension strategies include:
- Redesigning the product - new and improved
- Adding an extra feature - now with...
- Changing the packaging and advertising to appeal to a new market segment
- Providing a unique selling point (USP)
What is consumer behaviour?
The study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desire.
Maslow's Hierarchy of needs
Self-actualisation needs: the desire for self-fulfilment in achieving whatever people can.
Esteem and status: striving to achieve a high standing in relation to other people
Social needs: we need social experience and desire products and services that facilitate social exchange
Safety need: protection from the unpredictable happening in life (e.g. accidents)
Physiological needs: the fundamentals of survival
Diverse and changing markets
Most fashion marketers try to attract several market segments.
Consumers buying habits don't remain the same, changes in economic or social conditions can affect the consumers choices.
Segmenting a market
Market segmentation is a way of analysing a market by categorising their specific characteristics.
Specific characteristics include:
- Demographics
- Psychographics
- Geographics
- Behaviouristic/usage
- Situation
- Geodemographic
Segmenting a market
Demographics are statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religon and lifestyle.
Psychographics are studies of consumers based on social and psychological characteristics such as attitudes, interests and opinions.
Geographics are statistics about where people live.
Behaviourists are statistics about consumers based on their knowledge attitudes, use, or response to a product.
Purchase occasion: identifies the instance when a consumer might use a product.
Product benefits: identifies the benefits that consumers desire in a fashion product or service
Usage level and commitment: identifies how often they use a product and their loyalty to purchasing it
Geodemographic segmentation: hybrid segmentation: you are where you live (financial means taste, preferences, lifestyle and consumption habits)
Targeting:
Selected groups are known as target markets
How is technology making it easier for fashion firms to target potential customers?
Brand positioning statement
Brand positioning is defined as the conceptual place you want to won in the target consumers mind - the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximise customer relevancy and competitive distinctiveness, in maximising brand value,
When doing research to inform a brand positioning project, you must be able to answer the following questions:
- What does the brand community currently believe about or value in the brand?
- What might the brand community believe or value about the brand in the future?
- What does the organisation currently claim about the brand?
- What would the organisation like the brand to become down the road?
What is market mapping?
The market map illustrates the range of "positions" that a product can take in a market based on two dimensions that are important to the customer.
Product life cyle
The fashion cycle
The on going introduction, rise, peak, decline, and obsolescence in popularity of specific styles or shapes.
Al styles that come into fashion rotate through the fashion cycle.
Introduction: stage one
- The first stage of the fashion cycle is when new styles, colours, textures and fabrics are introduced.
- The new style may be accepted by a small number of people called fashion people.
- Promotional activities include fashion shows and advertising in high fashion magazines
- Fashions are produced in small quantities at high price.
- Retail buyers purchase limited numbers to see if the style will be accepted.
Growth or Rise: stage two
- The second stage of the fashion cycle when consumer interest grows and the fashion becomes more readily accepted by consumers,
- Mass production brings down the price of the fashion, which results in more sales.
- Styles are manufactured in less expensive materials and in lower quality construction than the original style.
- Promotional efforts are increased in high fashion magazines to heighten consumer awareness.
- Retail buyers order items in quantity.
Maturity (peak): stage three
- The third stage of the fashion cycle during which a style is at its height of popularity.
- The fashion demanded by a almost everyone because it is now within the price range of most consumers and is mass produced in many variations.
- Each retailer tries to persuade customers that its version of the style is the best.
Decline: stage four
- The fourth stage of the fashion cycle when the market is saturated and popularity decreases.
- The fashion is overused and becomes dull and boring
- As the fashion decreases in popularity, retailers mark down their prices.
- Promotions centre around major clearance or closeout sales of the fashion.
Obsolescence: stage five
- The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn, and is no longer produced.
- Ends as an accepted fashion.
Extension strategy:
- Can be defined as a medium to long term plan for lengthening a products life cycle. It is likely to be implemented during maturity or early decline.
- Extension strategies include:
- Redesigning the product - new and improved
- Adding an extra feature - now with...
- Changing the packaging and advertising to appeal to a new market segment
- Providing a unique selling point (USP)
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