Week I Lecture 4 Customer Focus All Marketing decisions are designed on the basis of Customer Focus

Customer Profile or Persona: Outline of the type of customer likely to purchase product/brand. Developing a customer profile will helps target marketing strategy and activities and is an essential analysis tool. Allows focus on real potential customers rather than too wide a range of people.

Typical Customer Profile includes: Who How Where When Why

buys our competitors' products and why? Who are the occupants of segments? buys our products and why? buys our competitors' products and why?

How do customers buy? long does the process last? do various elements of the marketing programme influence customers at each stage of the process? and for what do customers use the products? much are they willing to spend? often do they buy? much do they buy?

Where is the decision made to buy? do customers actively seek information about the product/outlet? do customers buy the product

What benefit does the customer seek? factors influence demand for the product? are the important criteria for customers choosing this particular outlet / product? is the basis of comparison with other products / outlets? risks does the customer perceive? services do customers expect?

Why do customers buy this product? Basic motivation do customers choose one brand as opposed to another?

5 Faces of Customer Profile

Demographic profiling age, sex, race, education, occupation, income, religion, marital status, family size, home ownership or otherwise

Geographic variables : state, country, region, climate, Town vs Country Urban vs Rural PLUS Demographics = Geo-Demographics

Psychographic profiling variables : Customer's lifestyle, personality, Happy Sad Pessimistic Optimistic Introvert Extrovert values, - how they live their life attitudes, - how they view the world

Lifestyle Dimensions Activities Interests Opinions Work Family Themselves Hobbies Home Social issues Social events Job Politics Holiday Community Business Entertainment Recreation Education Club membership Fashion Products Shopping Food Future Sport Media Culture

Cohort - Segments.. Baby Boomers Generation X Generation Y Milennials Chapter 4

Stages of the Family Life Cycle Stage Marital Status Children at Home Single Married None < 6 years > 6 years Younger(<35) Single I Young married Full nest I Single parent I Middle-aged (35-64) Single II Delayed full nest I Full nest II Single parent II Empty nest I Older (>64) Empty nest II Single III

Behavioural variables : product usage rate brand loyalty, benefit sought, decision making units,

RFM : Recency, of purchase or use of service Frequency – how often they purchase. Monetary values – how much spent

RFM : Scale 1 to 5 1 = low 5 = high 555 = very good customer

Consumer Personas Raleigh Customer Personas City Sophisticates/ Student Life Steady Neighbourhoods Successful Suburbs - Cycling Enthusiast Mature Money 18-24yrs 30-40yrs 35-50yrs 60+ Renting/House hunting Home owner Mortgage-free Still at university or in first job – few financial responsibilities Employed/part-time Children 2-10yrs High disposable income – owns multiple bikes Retired/semi-retired Social sharer/Blog reader Purchases online Comfortable online, will have main social media account(s) Prefers in-store experience Prefers in-store, may have email. Saver but will splash out Reads parent publications eg.blogs/books Reads specialist publications online/print Buys for grandchildren/luxury items for themselves