Download Week 2 DQs What is perception? Why does each consumer see a

Week 2 DQs
What is perception? Why does each consumer see a product differently? How does
this affect the consumer decision-making process?
Why is market segmentation important? How does market segmentation differ for
consumer and business markets? How does it affect the marketing mix?
Perception can refer to the prompt or intuitive acknowledgement or appreciation. If a
customer hardly has any factual information about a product there is a possibility of a
perception of unfairness occurring. Then again, if the seller were to give more and more
information about a product to the buyer, a similar exchange could occur. In other words, if
no perception were to occur, then no exchange would occur either. Hence, it is important
for marketers and advertisers to take in to account the two customer perceptions. The first
is how the customer evaluates the product or service, and the second is the how seller
evaluates the customer’s needs, wants, and objectives.
Different consumers have different needs, wants and objectives and therefore, various
consumers would view the same product differently. Moreover, a customer’s interest in a
particular product would affect, his/her desire to gain knowledge or research about the
product, perception and the purchasing decision. Hence, different customers would show a
difference in their involvement with the product. However, there are some factors which
are similar in every consumer decision making process. They can be categorized as
personal, psychological and social.
Every consumer when purchasing a product would first and foremost consider whether he
or she needs a particular product personally or for the family. This is the personal aspect of
the decision making process irrespective of how the consumer perceives the product.
Next comes in the psychological factors. These include the reasons behind the consumer’s
desire or motivation to buy a particular product, the perception of the consumer and the
others regarding the product, the knowledge and the attitude about the product and
whether the product matches with the values and the lifestyle of consumer.
Finally, social factors such as family, social class, culture, reference groups etc come in to
being in the decision-making process. These usually affect consumers’ wants, motives and
desire for learning. Therefore, for a purchase to take place, a product must be capable of
satisfying a customer’s above mentioned three categories of needs.
Why is market segmentation important? How does market segmentation differ for
consumer and business markets? How does it affect the marketing mix?
The process of Market segmentation has two levels. The first is identifying people or
organizations which a have similar needs and characteristics. The second is aggregating or
integrating these people or organizations, taking into account their common interest in the
features of a product relative to their perception of needs.
Therefore, market segmentation gives the opportunity for a company to lead and channel
the products or services towards a target market. Also, it gives a better chance to create a
new product within a productive time frame that would match the needs and wants of the
customers.
When carrying out market segmentation, it is crucial that a company finds the correct niche
market at the correct time. Also, it is important to consider the behavioristic, geographic,
demographic and psychographic characteristic of the consumers. The main objective of this
is to identify the potential consumers who would respond to these characteristics, and then
to build up an understanding of their needs and wants, which can be exploited to create
products that would encourage consumer spending.
A company should able to segment the people according their purchasing behavior, which
is called Behavioristic segmentation. The organization should also try to understand the
differences in the needs, wants and desires of the population by appraising various regions
of a particular country – Geographic segmentation; and moreover, it is essential that the
company evaluates the age, sex, ethnicity, income, occupation, education and a number of
other factors of the people – demographic segmentation. At lastly, company could use the
Psychological segmentation as means to splitting the customers based on their values,
attitudes, attributes, personality and life-styles.
However, unlike the end consumer market segmentation, the Business market
segmentation is more complex. It requires a more strict and professional approach.
Although there are similarities to the consumer market segmentation, it is a more
elaborated and time consuming process with many decision making levels.
The marketing mix includes product, price, place and promotions, and provides a
framework for market segmentation and advertising. Therefore, the market segmentation
acts as a target for targeting the marketing mix.