Understanding Value – Buyer Behaviour and Segmentation of an Electrical Appliance Retail Company (1,493 words)
Introduction
DigiPlaza is an electrical appliance retail store located in the along the busiest alley of the biggest mall in the country. This location gives the store strategic access to individuals of every economic and social orientation which the mall generally caters to. The store occupies three stalls that the mall opened for franchisers making the store bigger compared to other enterprises inside the mall. The store employs 30 staff which includes the sales and customer attendants, the electrical personnel for the electronics services, and the people in the stocks and supply room.
DigiPlaza is an electrical appliance retail centre which caters to the needs of technologically-savvy individuals and attends to the demands of other customer base as dictated by the clientele of the specific products that the store offers. These products include the desktop computers, laptops and notebooks; an array of different and latest models of mobile communication gadgets like cellular phones, digital cameras, mp3, mp4, and mp10 players, and other audio-visual communication appliances like television sets, stereos and speakers, VCD and DVD players among others. This paper aims to illustrate the value of buyer behaviour and market segmentation concepts and approaches in order to effectively reach to customers in marketing and selling the products and services of the DigiPlaza.
Market Classification and Target
According to (2001), consumer buying behaviour refers to the buying behaviour of the individuals and households who buy the goods and services for personal consumption. This behaviour then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behaviour namely: cultural, social, personal and psychological (2001). These characteristics cannot be controlled by the companies; therefore, a need to assess these elements in order to create an effective marketing plan.
Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfil their internal psychological needs, such as the need for change or newness (emotional purposes) (2002). These are just some of the factors that affect consumer behaviour. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc.
Moreover, values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behaviour. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc (2001).
But despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organization to reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market.
Of all the components of a marketing plan, the most essential of all these elements but most often, the most overlooked is the definition of the target market. And yet, no one can proceed to a communication plan without answering the question of who do the company have to convince to buy the product or service. Business firms invest on researches that will define their target customer groups that they believed they could serve best. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfil the needs of each kind of customer in their target markets.
DigiPlaza caters to clients and customers that can be categorized according to economic, social, cultural and psychological orientation. Distinguishingly, the store normally serves individuals who are employed and can afford high-end electronic appliances and gadgets. Aside from homeowners, be it a case of independently living individuals or a person who attends to the needs of his or her own family, business establishments are also welcomed in the store since we have products that can be of office use. Generally our clients are socially connected people who value communication with friends, family and even business contacts. This is evident in the large sale in terms of mobile communication gadgets. Younger customers are also welcomed in DigiPlaza since a lot of teenagers and students are inclined to personal ownership of computers as well as music gadgets and technologies like mp3s. The range of designs that our products are characterized with caters to the different personality of our clients. This includes the variety of aesthetics and functional features of the products available for purchase.
Retailing Strategies
The latest study says that 70% of all decisions and choices to purchase a product come up when the customers are still in the store shopping. So it means that customers go through the so-called impulsive buying. This alone gives the idea that retailers should seek new ways on how to cope up with the current trends in retail. Lately, the globalization of retailing has made a strong impact on the profitable structure of municipalities in the entire nation. New format retailing has made a significant change in the retail sector (1998). In the case of DigiPlaza, the entertaining and head-turner displays which passers-by can see through the glass walls of the store attract the customers and clients. We entertain inquiries of all possible clients that enter the store as guided by the fact excellent customer care will add value to the total image of the store.
(1998) cited that performance outcomes are a function of many variables that includes owner behaviours, individual owner characteristics and environmental influences. Increasingly sophisticated consumers have higher needs and expectations, particularly in retailing. This is an outcome of the new demands of smart shoppers, more so with the, new standards in communication, an invasive advertising, and the extras of just about everything – except the time. The consumers’ common citation now is “I want it better, cheaper, easier, faster, and now” and if his/her demands can’t be meet they won’t stick time to stay to one establishment but rather go to a lot of other alternatives (2004). In this case, DigiPlaza makes it a point to employ staff and personnel that have long-standing experience and expertise in the field of electronics and communications in order to meet the expectations of the customers in terms of service. They are all well-trained to answer all the possible questions of the clients regarding the products that the store offers.
Since marketing strategies in operation, strategies for product/service differentiation from competitors and on how the business compete in the market for price and product supply serves a big factor in determining the success of each retail businesses (1993), DigiPLaza constantly meet the demands of consumers as the new forms of retailing support the demands of the increasing needs of every consumer. It is very essential for the management to quickly evaluate the channel strategy to guarantee that the store is in a position to sustain and grow its share of market and stay competitive.
Conclusion
Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. As such, it is always important to know the characteristics and nature of the products and services offered by any advertising campaign because this will guarantee the success of the marketing strategy. But knowing the product alone can be detrimental any marketing plan if the management themselves have no idea of the characteristics of their target market. The products or services should always be in synch with the tastes, lifestyle, economic status and purchasing power of the target market. Too much generalisation about the target clients may post danger on the success of the company.
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