MODULE 2 ANALYSING CONSUMER MARKETS

AND BUYING BEHAVIOUR

CONSUMER BUYING BEHAVIOR
It is the totality of consumer decisions with respect to the acquisition, consumption and
disposition of goods, services, time and ideas by consumers over time.It is a sequential
stage of activities. In other words it is an action taken by a consumer before buying a
product or service

Consumers around the world vary tremendously in age, income, education level, and tastes.
These diverse consumers buy an incredible variety of goods and services with other elements
of the world around them impacting their choices among various products, services. In
marketing consumer is the most significant element / participant. His likes, dislikes, attitudes,
behaviour, needs and reactions play an important role in regards to marketing plans and
policies of the companies. So, consumer psychology needs special attention in the today’s
highly competitive and consumer-oriented marketing system. Consumer is the cause and
purpose of all production and marketing activities. He is the center of all marketing activities
as well as for satisfying his needs. Modern marketing is consumer oriented and not profit
oriented. Naturally, consumer behaviour, his motives behind purchasing goods and services
and his psychology should be given due attention by the marketers. This is necessary for the
expansion of marketing activities. Consumer behaviour is normally flexible and uncertain as
it is based on various economic, social, and cultural considerations. Therefore, marketer
before developing their marketing plans, need to study consumer, buying behaviour.

MEANING AND DEFINITIONS

The aim of marketing is to satisfy the needs of the consumers. The study of consumer
behaviour helps to the firms to improve their marketing strategy. And understanding
consumer behaviour is a difficult task. Consumer behaviour refers to the knowledge of the
consumer, his buying motives and habits, which are the basic necessity for a marketer to
understand. The marketer those who do not understand their consumer behaviour offer lose
out in the market. Therefore, every marketer tries to understand consumer behaviour.
Consumer behaviour means the way, in which customer act and the process involved in
making a purchase decision. It involves the use and disposal of products as well as the study
of how they are purchased.

According to Loudon and Della Bitta,

“Consumer behaviour is the decision process and physical activity that individuals engage
in when evaluating, acquiring, using or disposing of goods”

It is the thought and feelings people experience and actions they undertake.

CHARACTERISTICS OF CONSUMER BEHAVIOR

It includes products, services, activities and ideas

It is more than buying: It includes buying, using and disposing.

Dynamic process: The thinking, feelings and actions of individual consumers, targeted
groups and the society are constantly changing.

It involves interactions among many people: It is not based on an action of single individual.
It is influenced by the actions of friends, family, co-workers, etc

It involves many decisions: It includes decisions like what, where, how much, how often,
how long consumers will buy use and dispose the products.

It involves exchange between human beings: People give something of value to receive some
of value in return.

Consumer behaviour is the net result of various external / internal environmental

factors which are mainly social and psychological in character.

Consumer behaviour includes behaviour of buyers of consumer goods, consumer

durables, and industrial products. Organisational buying behaviour also comes within
the scope of consumer behaviour.

Consumer behaviour reflected through satisfaction or dissatisfaction on the part of

consumer after actual purchase of product.

Consumer buying behaviour is a challenge and an opportunity to a marketer. Large

scale marketing is possible only when consumer behaviour is anticipated accurately.

Consumer behaviour is always uncertain.

Consumer behaviour gives answers to all questions like why, what and how consumers
purchase goods and services.

CONSUMER BUYING PROCESS OR STAGES OF CONSUMER

DECISIONS
1. NEED RECOGNITION: 1. Need Recognition vm A buying process starts with need
arousal Needs or wants arised either due to internal and external stimulus At
this stage marketer should research consumers to find out what kinds of needs
arise, what brought them about and how they led to [consumers] this particular
product. he starting point of buying process is the perceived want or desire to
buy a product. Need recognition is the awareness of the want or a desire without
which the consumer feels restless i.e., he or she feels that a desire or want has
arisen which has to be satisfied. Human being is with bundle of desires, needs or
wants. However, the most urgent ones are pushed to the top as the consumer's
purchasing power is limited.
2. INFORMATION SEARCH: A need arouse or recognized can be satisfied only when
the product of service is AVAILABLE. Consumer has many alternative sources of
information like friends, relatives, neighbors, salesman, dealers, advertisement,
mass media, packaging etc. Marketer should find out the sources of information
and their relative degree of importance to the customers. At this level, the
consumer seeks information about the product which he needs. His search for
information has two levels such as heightened attention level and active
information search level. The heightened attention level is one at which a person
simply becomes more receptive to information about a product. At the active
information search level, the person looks for reading materials, contacting
friends, going online and visiting stores to learn about the product. He has many
alternative sources of information. They are:
Personal: Sources from family, friends, neighbours, acquaintances, etc.
Commercial: Sources from advertisement, website, e-mails, salesmen, dealers,
packaging, displays, etc.
Public: Sources from mass media, social media, consumer rating organisations
Experimental: Sources from handling, examining, using the product, etc.
 3. EVALUATION OF ALTERNATIVES: At the stage of buying, the consumer uses the
information to evaluate each alternative brands. The evaluation stage is the stage
of mental trial of the product or a service. During this stage many values are
taken into account such as product, attributes, brand image, facilities and
conscessions. The marketer must know which criteria the consumer might use
during the purchase. In this stage, the consumer assigns relative values or
weightages to different products or services based on the accumulated
information. Then the consumer judges the relative worth of alternative
products or services from the angle of want satisfying potential. The final
purchase depends on the relative strength of the positive intention to buy
4. PURCHASE DECISION: Purchase decision is the last stage in the buying process.
At this stage the consumer forms preferences among the brands in the choice set
and may also form an intention to buy the preferred brand. In this stage, by
considering the likes and dislikes of alternatives, consumers have to take a
decision as to buy or not. It is the stage of actual purchase. If the decision is to
buy then he or she have to take additional decisions like, which type, from whom,
how the payment is to be made, time of purchase etc.
5. POST PURCHASE DECISION: The post-purchase reaction and experience may be
a set of positive or negative feelings that he gets from the purchase. Positive
feelings result in repeat sales, while negative feelings create anxiety and doubts.
During this stage consumer takes further action based on his satisfaction or
dissatisfaction. If the product match up to his expectations, then the consumer is
satisfied. If it exceeds his expectation, then he is delighted. If its below the
expected level, he is dissatisfied.

FACTORS AFFECTING BUYING BEHAVIOUR ( DETERMINANTS)

I. PERSONAL FACTORS: These factors are referring to age, occupation, life
style, income, personality etc. These are personal distinctiveness for e.g.
the young people may have different behavior compare to elder people in
terms of style,
colour, quality of products etc. Occupation also influences buyers’
behavior for e.g., doctors, company executives or others professional can
spends much of their income on luxurious product whereas clerks or
workers may not pay attentions on luxurious products because of their
occupations. Life style and personality affects buyer’s behaviors. Life style
means the way of a person he lives. If person consumes product like high
quality cloth, perfumes, watches etc. it conveys his life styles. Here
marketer by identifying life style, design marketing strategy. Personality
is the distinctive quality of a person. It is seen in terms of self-confidence,
intelligence, adaptability, independence etc. Personality is important
variable affecting choice of brands.
 i. Occupation: People tend to purchase products that suits their
occupation
ii. Income: Income level has a direct relation to the buying habits
iii. Lifestyle: It means a persons pattern of living as expressed in his
activities, interests and opinions. Marketers try to identify the
product with different lifestyles.
iv. Personality and self concepts: Personality is the total of all traits,
experiences and behaviours that make up a person. Self concept is
how we see ourselves.

II. PSYCHOLOGICAL FACTORS: Psychological factors are important to

understand the buying decision of consumer. Psychological factor are
nothing but a scientific study of human mind and his function. This study
helps the marketer to know the consumers behavior. Generally
psychological factor includes motivation, perception, learning, belief and
attitudes.
i. Motivation is inner-drive to fulfill the needs. What motivates a
consumer is relative concept. The same factors of motivation may
not motivate a consumer throughout his life. That is why Abraham
Maslow has identified a hierarchy of needs and explains why
people are driven by particular needs at particular time.
ii. Perception is another psychological factors that consumer forms
about certain situation e.g. two people may differently view the
same situation because of different perception. Perception is the
process of selecting, organising and interpreting information
inputs for creating meaningful picture. If perception is positive
then people can take purchasing decision. Therefore marketer
need to develop positive perception towards the brands.
iii. Learning is knowledge acquiring by studies. Learning plays an
important role in the buying decision process. It brings about
changes in behaviour resulting from observation and experience. It
helps in knowing, the brand name, its features, uses and so on. It
enables the consumer to make an informed choice.
iv. Beliefs are the firm opinions about something. It is based on
knowledge or faith. It influences buying behaviour. A consumer‘s
belief about the products influences his buying decisions.
Marketers are interested in knowing the beliefs that people have
about their products and services. Steps are taken to correct or
wrong beliefs, if any’

III. SOCIAL FACTORS: social factors means those factors which are related to
an individuals social class like family, reference group, social role and
status etc. Practically all buyers‘ behaviour is influenced by other people
 that are members of the family, friends, etc. Social influences act in two
directions, first they provide information and second the standards of
behavior against which alternative buying behaviors are measured. Even
social status and location affect the buyer considerably. Cultural factor
means values, beliefs, faith and traditions accepted willingly by buyers or
specific class of buyers. It is social heritage. It relates to social values,
attitudes towards work, beliefs, moral, language and so on. These are so
pervasive that they are hard to identified and analyze. These act as basis
for market segmentation, product development and advertising. As
cultural factors exert deepest influence on consumer behavior, marketer,
needs to be aware of all these cultural influences on buyer behavior and
adjust his marketing activities.
i. Reference groups: Any set of individuals that influences another
individual when he or she makes a decision is called reference
group. Reference group includes family, friends, coworkers,
religions, trade unions etc. Marketer should identify these groups
ii. Family: one;s family influences the person or directly affects the
buying decision. Therefore, they are called the primary group
iii. Culture: Cultures and sub cultures of consumers also affect the
buying decisions.

IV. DEMOGRAPHIC FACTORS:

i. Population size: More population means more income, more
shopping and more expenditure on food items.
ii. Age groups: Different age groups have different needs
iii. Gender: There are certain goods that is purchased n gender basis.
iv. Birth and death rate: Elderly people have greater income and
greater purchasing power
v. Working class: Earning people have more disposible income
vi. Ethnic changes: Over the time the ethnicity changes.

V. ECONOMIC FACTORS: Economical factor consisting of income size of the

family, propensity consumes and save consumer credit. These factors
affect consumers buying behavior for e.g. a rich person may not be very
conscious / alert about the price and can be purchase high priced product,
where as a person belongs to low income will be very sensitive about the
price and can purchase low priced product. Here consumers‘ behavior is
affected due to High or Low purchasing power. The economic factor like a
family size or disposable personal income or propensity to consume and
save are also compelling buyer to change their style of purchase for e.g.
the small family where every member is earning will have higher
disposable income and vice-versa or the people who saves for future and
 have less consumption and wanted to have balance between consumption
and saving also spent less. All these behaviors of the people are directing
the marketer to design his marketing policy with the consideration of
their economic aspect.
i. Income: it differs from people to people
ii. Size of the family: The quantity of purchase is depending on the
number of users in a family.
iii. Future income expectations
iv. Credit facilities
v. Saving and expenditure factors: Lower income persons spend
more on food and necessities and save little. Middle class people
spend more on durable and save a little or a few. Rich people
spend on luxurious goods and jewelleries. They have high savings.
VI. SITUATIONAL INFLUENCES: circumstances, location and time also affects
consumer bahaviours.

ROLES PLAYED BY CONSUMERS:

Individuals or group of consumers play diverse roles in different kinds of purchase
situations. There exists no hard and fast role that buyers need to play; it is possible to
characterize roles in the context of purchase decision. It has been observed that there
are eight different roles played by people in the consumer decision process.

Initiator: The initiator is a person who first gets the thought or gives the
suggestion/idea of buying the particular product. A child might play the role of an
initiator in the purchase process of a chocolate.

Influencer: The influencer is a person who directly or indirectly has some influence on
the final buying decision of others. The parents play the role of influencers in the
purchase process of a chocolate.

Gatekeeper: The gatekeeper is a person who permits the flow of certain information and
restricts flow of some set of information. Parents play the role of a gatekeeper in the
selection of movies for children.

Decider: The decider is a person who finally determines part or the whole of the buying
decision, ie. all quantity like whether to buy, what to buy, how to buy, when to buy or
where to buy are considered. In the event of buying baby products, the mother plays the
role of the decider.

Buyer: The buyer is the person who actually purchases and pays for the purchase. In a
typical family decision making process, father plays the role of the buyer who is
involved in the economic transaction process.
User: The user is the person who actually uses or consumes the services or products. In
most of the grocery product purchase, the entire family uses the product. In a typical
purchase of washing machine, the housewife plays the role of user.

Preparer: The preparer is the person who changes the product to usable form for
consumption. For example, in a typical family consumption of food items, mother plays
the role of preparer.

Maintainer: Members who service or repair the product so that it will provide continued
satisfaction is a maintainer.

Disposer: The disposer is the person who finally disposes the package of the product.
For example mother plays the role of a disposer after the product is consumed by the
family.

Promoter: The promoter is the loyal consumer who promotes the good to other
consumers.

Champions: They support, defend or fight for his product or service.

The task of the marketers is to understand the buying process and the role of the
participants in the buying process. He should initiate all of them to make a purchase of
his product at different stages and through different strategies. The study of consumer
behavior will be incomplete if one discusses only about single role of the consumer. In
certain purchase decisions might involves at least one person acting one role, on other
occasions a single individual can play several roles at the same time.

SEGMENTATION It is the division of a market into groups or segments having

similar wants. It is the process of dividing a large market into smaller groups of
consumers having unique characteristics. In this process, the heterogeneous market is
broken into a number of relatively homogeneous units. The concept of market
segmentation was introduced by Wendell R. Smith in 1956. Market segmentation is a
‘divide and rule’ strategy.Consumers are too many. They are widely scattered. They
have different needs, wants, likes, attitudes, beliefs etc. They vary in tastesand choices,
consumptions, and buying requirements. They represent different geographical
locations. Their age, occupation, income, education etc. are different. Companies divide
the market or group customers on the basis of location, income, age, education, sex etc.
so as to enhance satisfaction to consumers and profit to the marketer. This process is
known as segmentation.

Definition

According to Philip Kotler, “market segmentation is the process of dividing market

into distinct subgroups of consumers with distinct needs, characteristics, or
behavior who might require separate products or marketing mixes”
IMPORTANCE/ BENEFITS OF MARKET SEGMENTATION

• More effective marketing programme • Better assessment of the competition • Better

allocation of resources • Better understanding of consumer needs • Helps in designing
suitable marketing mix • Selection of best channel of distribution • Allocation of
marketing budget • Easy determination of appropriate timing of the introduction of new
products, advertisements • Improved customer relations • Taking care of dynamic
environme

i) Better Marketing Performance

The total market is very vast and also heterogeneous. Here market segmentation helps a
firm to compete in a highly competitive market. It is needed in order to concentrate
attention on specific target market and also to achieve better result in terms of
turnover, profit, and customer satisfaction. In addition to this, it is necessary to
overcome the threat from serve competition, in the market, for that also segmentation
helps a lot.

ii) Appropriate Adjustment of Marketing Mix

Market segmentation is needed of in order to adjust marketing mix as per the needs and
requirements of specific group of consumers. Advertising and marketing appeals can be
made affectively through market segmentation.

iii) Introduction of Appropriate distribution Strategy

Market segmentation is required for divide and conquers strategy. It helps in designing
distribution strategy and introduces different distribution mixes as per need of each
segment. For example, high priced quality products targeted at upper class may require
exclusive showrooms or dealerships.

iii) Brings About Progress and Awareness

Market segmentation not only enables the manufacture to develop a suitable product
for the consumers of a segment but also helps bring about a level of progress and
general awareness. For example in India Bisleri followed by others entered the
packaged water industry. Thereby bringing in a positive development and also creating
public awareness about the need for pure drinking water.

iv) Achieving Marketing Objectives

Market segment enables a company to identify its target market and develop market
strategy to suit requirements of the target market. This helps in achieving its marketing
objectives which, will be introducing a new product, increase in sales, goodwill etc.

v) Suitable Designing of Products

Market segmentation is needed to produce and supply goods to each segment exactly as
per the needs and expectations of customers of each market segment. Companies
produce goods with suitable modifications to meet the needs of different segments.

vi) Appropriate Price Fixation

Market segmentation process involves research that enables the company to

understand the profile of the consumer such as their incomes, buying habits, buying
motives etc. This helps in fixing the right price of the products.

vii) Better Service to Consumers

Market segmentation in needed as it acts as a base of present customer oriented

marketing philosophy. It is needed in order to select and concentrate marketing efforts
on a specific target market. As a result, customers of that market segment get better
services from the special marketing programmes of the company.

viii) Timing of Marketing Efforts

Market segmentation provides information regarding suitable timing for advertising

and sales promotions, measures in different segments. A company can use such
information purposefully for sales promotion in different, segments. This gives
promising sales to the company on yearly basis

1. Geographic Market Segmentation

Geographic market segmentation is related to the geographical area of the
market. It divides the market into different geographical units such as nations,
states, regions, cities etc. A company may decide to operate in one or few
geographical areas or to operate in all areas but could not pay attention to all
geographical differences and needs and wants. The assumption for doing this
type of segmentation is that consumer needs and responses vary geographically.
 Here, regional difference in term of topography, climate, population and its
density are used as base for market segmentation. This type of segmentation is
commonly used for preparation of marketing plans and for the allocation of
territories of salesmen or distribution. For example, people in South India prefer
coffee while those in North India prefer tea. Hence companies prepare separate
marketing mix for different region. People staying with in the same region tend
to share same values, attitudes, beliefs, and preferences. Again, there may be
difference between urban people and rural people. For example, people reside in
urban areas are more conscious, exposed to different media and having grater
awareness of the products so better quality and novel expensive product can be
sold here easily, where as in rural area, peoples income being limited, they are
price conscious, gifts, discounts, and other promotional tools can be very
effective.
2. Demographic Segmentation
Demographic segmentation is related to people or people‘s characteristics such
as age composition, gender, education, income, language, family size etc. It is
most popular form of market segmentation. Adequate information regarding the
people can be easily made available, by going trough consumer reports or other
publications. Therefore, most of the companies adopt this type of segmentation
for example HMT have segmented its market on the basis of sex and
manufactured separate watches for male and female. In the same way bicycle
manufactures use this base. Again, marketer can segment market on the basis of
age considering people belong to 15 years and below or young adults between
18-25 years etc. Family life cycle can be a base as bachelors, newly married,
married with children etc. for different purposes (Motor bike or LIC Policy) etc.
Education can be a base for some products like newspaper, magazines,
computers etc. Race and religion is also one more important base for segmenting
market like Hindus, Muslim, Parsi, etc. Products like garments, meat, alcohol, etc
are sold on this basis.
3. Socio – Economic Segmentation
Under this type of segmentation, differences amongst population in terms of
income consumption level, castes, communities and other cultural aspects are
taken as variable for dividing the consumers in different groups. In India it is
necessary as the society is divided into different groups on this factor. Lower
class, middle class, working class is one example of economic classification.
4. Psychographic Segmentation Psychographic segmentation divides buyers into
different groups based on social class, life style, or personality characteristics.
People in the same demographic group can have very different psychographic
make ups. In the case of psychographic variables, relevant in formation for
segmentation is not readily available and has to be collected through behavioural
research. It is complicated as it is always difficult to expose individuals to a
battery of psychographic test and to find out their specific personality traits.
Generally manufacturers of cars, textiles and home furnishings divide their
 customers on the basis of life style. Here marketing efforts are adjusted
according to variables (reading habit of leisure activity, life style) So far the
personality traits are considered, like leadership, self- confidence ambitious,
aggressive etc. Marketer positions their products in such way that consumers are
tempted to use them in order to enhance their personality.
5. Behavioural Segmentation
Behavioural segmentation divides buyers into groups based on their knowledge,
attitude, use or responses to a product. Many marketers believe that behaviour
variables are the best starting point for building market segment. Dividing the
market into groups according to occasion when buyers get the idea to buy and it
is the actual time when they make purchase or use the purchased item. Here
while segmenting market consumers will be grouped on user‘s status like, user,
non-user, ex-user, potential users, first time user, regular user etc. and
accordingly segment the market. Then it will be segmented on the basis of
benefit sought by the consumer on the part of product. For e.g. soap may be
purchase by some for economy, some for fragrance, some for medicinal value,
fairness or health purpose. The behavior can be of readiness stage of product.
Like, purchasing products on the basis of unawares of the products some are
aware, some are informed about the product, or some may be interested in
buying the product. Any one of readiness stage compel to them to purchase the
product and finally the behavioural segmentation will be made on buying
motives basis as motives may be convenience, comfort, economy, love and
affection and prestige. Here marketer as per the above variables uses to design
marketing mix.
1. OCCATION: Some of the products are purchased only on certain occasions. These
occasions may be used as the basis for segmentation. Gifts are normally exchanged on
Diwali, - but colours are purchased only on Holi. Demand for dates increase during
the month of Ramadan.
2. BENEFITS: Some products are purchased by knowing the value or benefits the
consumer gets through its purchase.
3. USER STATUS: Some products are purchased to enhance the status of the user in the
society.
4. LOYALTY: Some consumers are loyal towards the product i.e. they don’t shift the
product. They follow their favorite brand.
5. ATTITUDE STATUS: Peoples attitudes about variety of topics can be used to market
them. It is preferable to follow behavior of the consumer than attitudes.

OBJECTIVES OF SEGMENTATION • Identifying a homogeneous segment

that differ from other segments • Knowledge of attractive marketing opportunities • Facilitate
selection of target market • Facilitate determination of product mix • Selection of suitable
channels • Helps in effective marketing program.
The steps in segmenting a market are as follows:
SURVEY STAGE:

1. Establish overall strategy or objectives: The first step in the segmentation process is
toestablish the objectives of the firm’s marketing strategy clearly.

2. Decide the bases for segmenting the market: This is a very important step in the
segmentation process. There are several methods by which a market can be segmented.The
marketer has to decide whether demographic or psychographic or some other bases |should be
used for segmenting the market. For deciding this, the firm must have a clearidea about the
market characteristics, consumers buying pattern, buying behaviour etc.

3.Select segmentation variables: After deciding the basis of segmentation, the firm has to
select the segmentation variables. For example, if a firm has selected demographic as a basis,
it may use age, sex, occupation, income etc. as variables for segmenting the market.

EVALUATION STAGE / ANALYSIS

4. Evaluate segment attractiveness: This is done by estimating the profit contribution

expected from each segment.

5.Select Segment/s (or target market): As already stated, marketer cannot serve all segments

even if the segments are profitable. Normally, a firm selects only the most profitable

segment where it can serve more effectively. This process is called target marketing.

PROFILING

6.Profile the segments: profiling helps marketing managers to characterize large,

identifiablegroups within a market.
OBJECTIVES OF SEGMENTATION • Identifying a homogeneous segment
that differ from other segments • Knowledge of attractive marketing opportunities • Facilitate
selection of target market • Facilitate determination of product mix • Selection of suitable
channels • Helps in effective marketing program

TARGETING • Is the process of deciding and preparing the marketing program • Is the
process of taking decision regarding the market segment to be served. Gone are the days of
1960s when mass marketing provided scale economies for many markets. The ultimate
segmentation is mass customisation, as Dell Computers is doing. Today, no organisation has
the resources or capabilities to adequately address all segments in the market with segment
specific sales and marketing mix. Unless the right segments are targeted an organisation will
not enjoy the benefits of adopting market segmentation concept and the costs incurred in
identifying segments will not be repaid. In case of ITC foods, initially it adopted mass
targeting, now it is in a position to target any segment it likes. The targeting stage of
segmentation is concerned with making choices about the segments to serve. We can’t be
everything to every segment. The targeting process is concerned with balancing the
attractiveness of segment opportunities against the available resources and the capabilities.
The segments chosen through targeting are referred to as target markets or target segments.
The search for the best prospects among all consumers is called target marketing.

Need of Targeting There is need for targeting. There has to be match between costing and
revenues. Factors affecting needs of targeting are too many.

1. Existing market share and market homogeneity

2. Existing product expertise

3. Likelihood of production and marketing scale economies

4. Nature of competitive environment

5. The forces of marketing environment and marketing trends

6. Capability and ease of matching customer needs

7. Segment attractiveness in terms of size, structure, and growth

8. Available corporate resources

9. Anticipated profitability and market share

POSITIONING • Is the act of fixing the locus of the product offer in the minds of the
target consumer. • Process of occupying a clear distinctive and desirable place relative to
competing products in the mind of target consumers. After identifying segments and selecting
which one (s) to address, the consumers and the business customers within the targeted
segments must be offered relevant propositions that have direct relevance to their
characteristics, needs, and buying behaviour. The concept of positioning was articulated by
Al Ries and Jack Trout as early as 1972.

OBJECTIVES OF POSITIONING
➢To create a distinctive place of a product or service in the minds of potential customers
➢Create competitive edge ➢To place an intangible service within a more tangible way ➢To
study the possible moves and responses of the competitors ➢To provide guidelines for
development of marketing mix.

Positioning strategies
• Attribute positioning • Benefit positioning • Use or application positioning • Competitor
based positioning • Product category positioning • Quality or price positioning • Positioning
in relation to a target market.