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Understanding customers by Chris Rice; Chartered Institute of Marketing

By Chris Rice; Chartered Institute of Marketing

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So the marketing task is centred on identifying consumers’ problems and offering them solutions via our product. 3 The ‘perceiving’ customer This assumes a consumer who is continually making judgements as to the perceived value of a good or service and, at the same time, estimating the probability that purchase will provide satisfaction. Thus, in practical terms this model identifies two key objectives of marketing effort and communication: ● ● to raise the perceived value of the outcomes of purchase to raise the perceived probability of satisfaction following purchase.

Think – In what ways might messages need to be tailored for each of these groups of receivers? Key learning points from Part One Historical perspective Marketing has developed through production, selling, advertising phases to the current emphasis on customer care, quality and meeting customer needs. An emerging trend may be ‘relationship marketing’. Customers and users is a key concept. Decision Making Units (DMUs) – decider, purchaser, influencer, user, etc. Segmentation A way of breaking down the total market into sub-groups (segments) which have significantly different wants and needs, but which are large enough to make it profitable to develop separate marketing or product strategies.

The recession, with its low profit margins, will tend to depress the stock market. Eventually companies will start to look relatively underpriced and people will look to invest in the next stage of growth. So after a while investment picks up. Companies build new factories, buy new equipment, etc. Unemployment begins to drop as more jobs are created and so, with more people in work and earning, consumer spending begins to rise. The increased level of activity leads to an increase in company profits and, given the relative improvement, companies do not feel the need to increase prices too quickly.

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