DQ 1. What are the different types of buyers and consumers? How does the type of buyer or consumer impact marketing strategy?
A buyer can be defined as an individual that spends money in substitute for something. A consumer on the other hand refers to an individual who is out for making purchases. There are however different kinds of buyers and consumers in the business market. It is imperative for a company to have knowledge of these groups so that it can identify potential market for its products.
Initially, buyers can be grouped as Innovators. This is a small composition of buyers who conduct their own market research through newspapers and magazines. Consequently, this group of buyers is usually open to the elements of new innovations and is ready to try out new products. The next category of buyers is the adopters. This consists of people who are considered as change agents because they are usually willing to pick up the usage of new products that they are convinced will improve their way of life. The other group of buyers is the early majority. This represents a category of people who are scared of trying out new products not until they have been fully adopted. They happen to be more pragmatic and are not easily driven by technological changes like the initial groups. Then, there is the late majority group. This category of buyers is more sensitive on cost. Consequently, they buy products later, when they have been fully adopted and their prices have already fallen. Most of the time, they depend on the media for buying information. Lastly, there are the excessive traditionalists. These are individuals who linger until the product prices have fallen so low and the good has become a complete need. In most cases, they tend to buy products that the initial groups would deem obsolete.
In the same way, there are dissimilar types of consumers .First are the seasonal consumers. This refers to a category of people who make purchase only at particular times when they are in need of that product. There is the next group of personal consumers who buy products for individual or family use. The organization consumers form the next category. These are individuals who make purchases not for immediate use, but for production purposes. They intend to use the products in an organization’s activities with long run intent of profit making. There is another category of the impulse consumers who make unplanned purchases, and the need based consumers who purchase products only when they are in need of them. Lastly are the discount motivated consumers who are driven to purchase products due to the discount presented, and the habitual consumers who find it compulsory to buy certain products.
The type of consumer or buyer largely impact on the marketing strategy a company decides to use. This is because a company needs to develop dissimilar marketing strategies for the diverse buyer and consumer groups which exist. The marketing strategy also needs to be formulated in line with the driving forces which compel one to make purchases. Since innovators only constitute a small percentage of buyers for instance, only few marketing resources can be targeted for this group. The early adopters on the other hand need a larger portion of the marketing resources. This is because they are an influential category hence needing a conviction that the new products will positively change their lives.
DQ 2. What is competitive intelligence? What is the importance of competitive intelligence and analysis in modern-day marketing?
Competitive Intelligence (CI) is a combined phrase that entails the collection of data and information that can be utilized in reinforcing the market position of a company. The information collected is normally with reference to similar products existing in the market on which a comparison and contrast is made with reference to the company’s products. It is however important to note that the kind of competitive intelligence may not only concentrate on the issue of products but also other additional factors like the supply networks, the competitor’s financial steadiness or any weakness that can be utilized. Consequently, CI is an ongoing monitoring process of a firm to identify actions of its competitors and how to counter them.
Competitive intelligence and analysis is very imperative in contemporary day marketing. Initially, the information gathered through this analysis can be used by a company in its decision making process. Consequently, a company can be able to develop more competitive strategic decisions. Additionally, the analysis is an important constituent of marketing planning that is targeted to establish the threats and opportunities in the market. Through such knowledge, the marketing developers can identify the most appropriate direction to follow. Lastly competitive intelligence and analysis presents an actual strategic advantage for a company.
In Summary, there are different types of buyers and consumers in the market today. These groups can be differentiated by the variations in their purchasing behavior, and their motivation for making purchases. It is however important to note that these groups immensely affect the marketing strategy of a company in dissimilar ways. In that context therefore, it is imperative for a company to develop its marketing strategy with consideration of these groups in mind, most importantly their buying behaviors. This will assist the company to maximally profit from its marketing strategies.
Similarly, it is very vital for a company to invest in competitive intelligence and analysis for it to effectively compete in the modern market. This is because it is through such an analysis, that the marketing planners of a company can understand the market conditions including their threats and opportunities. In this way, competitive intelligence and analysis enables a company to effectively strategize itself in order to compete in the present market.