Define Consumer Strategy
Consumer strategy is a branch of marketing that tries to figure out what the consumer wants and which processes they use to select one product or service instead of another. By studying consumers, businesses can improve their marketing strategies, according to Dr. Lars Perner, Assistant Professor of Clinical Marketing at the Marshall School of Business at the University of Southern California.
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Identification
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Consumer strategy takes into account the psychology of why customers would select one brand over another. Consumer strategy looks at the consumer's environment and how that may be an influence. It also looks at how customers behave when shopping and making shopping decisions. Paco Underhill, in his book "Why We Buy," makes the point that by studying the way consumers buy, this helps marketers increase sales. For example, storeowners, just by changing where the product is placed in the store, made more sales.
Features
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Consumer strategy uses market research tools. The goal is to give consumers what they want, not what we think they want, and research helps marketers know what that is. Research is distinguished between primary and secondary research. Primary research is research that the marketing team designs and conducts. The Pepsi Challenge was an example of primary research. Marketers were trying to find out if consumers preferred sweeter drinks like Pepsi to tarter drinks like Coke. Secondary research is using research that already exists, such as how many elderly people live in a certain area. That information already exists. The marketer just needs to gain access to it.
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Types
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Many primary research methods are available to the marketer. Surveys are useful to gather a great deal of specific information, according to Dr. Perner. Although, they are subject to bias because the way a question is worded may influence the answer. Focus groups are good for finding out what issues consumers consider to be important, but they only represent a very small sample since most focus groups only consist of eight to 12 members. Personal interviews provide a way for in-depth analysis of a product but are subject to bias and are extremely expensive. Observing consumers as Underhill did can reveal many things. For example, by watching shoppers, Underhill observed that shoppers tend to walk quickly into a store and will miss items that have been placed directly to the right or left of the entrance.
Considerations
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The marketing team needs to be careful that the cost justifies the research. Marketing also has to be careful not to fall into agendas that management might have for them, because that will only lead to misleading research.
Expert Insight
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When international marketing is required, then knowing how each culture reacts is important, according to Dr. Perner. It is critical to understand the norms of a culture without stereotyping to be successful in foreign markets. What one culture finds acceptable, for example, may offend another.
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References
- Photo Credit Shopping image by Bianca from Fotolia.com
