Consumer Behaviour, Product Life Cycles

Consumer Behaviour

Maslow's Hierarchy if needs

-Self-actualisation needs- Desire for self-fulfilment in achieving whatever someone else cab
-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 needs: Protection from the unpredictable happenings in life e.g. accidents
-Physiological needs- The fundamentals of survival

Self Esteem- (Ricjins 1993; Kees et al 2008)
-Marketers use attractive models for social comparison processes where young female consumers compare themselves and feel inadequate against them

Family; Brought up, what you buy, what you like
Culture;

Diverse and changing markets
-Marketers developed segments
-Consumer buying habits don't stay the same

Segmenting a Market
-Analyzing a market by categorising their specific characteristics
-Demographics- Age, values, income
-Psychographics- Self esteem, what do they want? how does they brand make them feel
-Geographic- North and South differentiation
-Behaviour/usage; Brand loyalty, segmenting, only when sales are on?
-Situation

Demographics- Stats that describe population in terms of personal characteristics such as age, gender, income, ethnic background, education and lifestyle
Psychographics- Studies of consumers based on psychological characteristics e.g attitudes
Geographic- Stats about where people live
Behaviouristic- Stats about consumers based on their knowledge, attitudes, use, or response to a product

Segementing
-Marketers look at purchase occasion for a products, product benefits by consumers, or usage level and commitment towards product
-Purchase Occasion; Identifies when they consumer will use product (Bra is everyday, some are for special occasions)
-Product benefits; What does the consumer desire in a fashion product or service e.g VS is Logo Love
-Usage and level commitment; Identifies how often they use a product and their loyalty (Will they buy a replacement?)
-Geographic Segmentation; Hybrid segmentation (financial means, tastes, lifestyle and consumption habits-Look at survey)

Targeting
-Look at each segment and decide with group of customers they will invest marketing resources
-Look at how they are consuming, technology making it easy to access e.g Insta shop
-Easy to browse, track products etc

Brand Positioning
-The conceptual place where consumer place them in our map. Effective brand positioning strategy will maximise customers relevancy and make it distinct from other brands and therefore increasing value.
Look into;
1. What does the brand community currently believe about or values the brand?
2. What might the brand community believe or value about the brand in the future?
3.What does the organisation currently claim about the brand?
4. What would the organisation like the brand to become in the future?

Product differentiation; What makes them unique? e.g Exclusivity
Service Differentiation; What do the offer to the customer? e.g Semi-annual sale
Personnel Differentiation; Personal Bra fittings



Product Life Cycles
-The ongoing introduction, rise, peak, decline, obsolescent in popularity of specific styles or shapes
-All styles that come into fashion rotate through a fashion cycle

Stage 1;
The first stage of the fashion cycle  is what new styles, colours and textures, and fabrics are introduced
-The new style may be accepted by a small number of people named fashion leaders
-Promotional activities include fashion shows and adverts in high fashion magazines
- Fashions are produced in small quantities at high prices
-Retail buyers purchase limited number to see if the styles will be accepted

Stage 2; Growth
-The second stage is when consumer interest grows and 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

Stage 3; Maturity
-This is when the brand is at the height of it's popularity
-The fashion is demanded by 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 it's version of the style is the best

Stage 4; Decline
-This is 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 center around major clearance or closeout sales of the fashion

Stage 5; Obsolescence (Rejection of style)
-This is when the style is rejected, it is undesirable at any price, it is no longer worn and no longer produced
-Ends as an accepted fashion

Product Extension Strategy;
-A medium or long-term strategy for lengthening a products life cycle. It is likely to be implemented during the Maturity or early decline.
-These include
Redesigning the product- New and improved
-Adding an extra feature- Now with (colour, quality, texture)
-Changing the packaging and advertising to appeal to a New Market Segment
-Providing a USP (Unique Selling Point)

Research Sources
-Mintel
-Telegraph
-BoF
-Deloitte
-Euromonitor International