Target Market Selection and Market Positioning

You can rest assured when shopping and using services of Supermarket X.

Maybe you are interested!

Question 4 : Please mark X in the appropriate box according to the convention in the table:

4.1 Your overall satisfaction level with the quality of services provided by Supermarket X:

Very

not satisfied

Relative

not satisfied

okay

Relative

satisfied

Very

satisfied



4.2 If you have a need next time, will you come back to shop or use the services of Supermarket X?

Completely

uncertain

Relative

uncertain

Unknown

Relative

sure

Completely

sure



4.3 Will you recommend Supermarket X to your acquaintances who want to shop or use the services of Supermarket X?

Completely

uncertain

Relative

Uncertain

Unknown

Relative

Sure

Completely

Sure



Please provide some personal information below:

Question 1: Please tell us your monthly income.

 Under 3 million

 From 3-5 million

 From 5-10 million

 More than 10 million

Question 2: Please tell us your occupation: ………………………….

Question 3: Please tell us about your workplace.

 Vietnamese enterprises

 Joint venture company

 Foreign company

 Non-governmental organizations

Thank you very much for taking the time to answer this survey. We wish you and your family good health and success in your work and life.

CHAPTER 3: TARGET MARKET SELECTION AND MARKET POSITIONING

1. Consumer market and consumer buying behavior

1.1. Consumer market

1.1.1. Concept

Consumers are people who buy and consume products and services to satisfy their personal needs and wants. They are the ultimate consumers of the products produced by the production process. Consumers can be an individual, a household or a group of people.

The consumer market consists of all the actual and potential individuals and households who buy or acquire goods and services for personal consumption.

The consumer market buys goods and services for personal consumption. It is the final market for which economic activity is organized. When analyzing a consumer market, it is necessary to know the customers, the objects, and the objectives of the buyers, the organizations operating, the purchase stages, and the retail outlets.

1.1.2. Characteristics of consumer markets

Every company and organization needs to develop skills, capabilities and knowledge to compete in the global market. The emergence of an open world economy, globalization, customer preferences, and ever-growing electronic highways are increasing the interdependence and interconnectedness of national economies on a global scale. Markets are becoming increasingly complex. Developed economies are becoming saturated and fragmented, and competitive pressures are increasing, making organizations increasingly feel the challenges to their survival and development. This requires managers to develop skills to respond to the pressures affecting all different sized companies.

The rapidly growing global value reflects the increase in demand across markets. Increased wealth and demand means that today's customers are actively seeking options globally. This is driving intense competition among companies to capture revenue. In particular, companies in fast-growing countries such as Asia, South America, and Eastern Europe are seeking new markets globally, thus becoming strong competitors in today's global marketplace.

Population growth coupled with wealth has created a "global youth culture". In many countries, more than half the adult population creates huge singles, youth markets. All over the world young people are looking to

global cultural icons, Nike, Coke, Benetton and Sony Walkman… The more nationalistic, local and narrow the product, the more difficult it may be to face. Particular attention should be paid to the youth market.

It’s not just the younger consumer market; older consumers are becoming less and less nationalistic. This is not because of their individual perceptions but because of the way they structure their lives. They drive cars made around the world, watch television shows from many different countries, and use hardware and software that is not primarily made in the United States but is designed and manufactured in India, China, and Asia. Among the challenges is the fact that human life expectancy is increasing—60 years today is equivalent to 40 years ago. Other challenges include changing immigration patterns; the economic and military dominance of the United States; and “a series of chaotic states that pose the potential for terrorism, crime, and power struggles” in the rest of the world.

1.2. Consumer buying behavior

1.2.1. Concept

Consumer buying behavior is the entire action that consumers reveal in the process of investigating, purchasing, using, evaluating goods and services to satisfy their needs. Consumer behavior can also be considered as the way that consumers will make decisions to use their assets (money, time, effort, ...) related to purchasing and using goods and services to satisfy personal needs.

1.2.2. Consumer buying behavior model

In the early days, marketers could understand consumers through their day-to-day experiences of selling to them. But the growth in the size of companies and markets has removed many marketing managers from direct contact with customers. More and more managers have had to engage in customer research to answer the following key questions about every market.

Who makes up that market? - Customers What does that market buy? - Target audience

Why is that market buying? - Objective

Who is involved in the purchase? - Organization How does the market shop? - Activity When does the market shop? - Purchase period Where does the market shop? - Retail stores

The starting point for understanding buyers is the agent-response model.

shown in the diagram of the consumer buying behavior model. Marketing and environmental factors enter the buyer's consciousness. Buyer characteristics and decision processes lead to certain purchase decisions. The marketer's task is to understand what happens in the buyer's consciousness between the introduction of external factors and the purchase decision. We will focus on the following two questions:

- How do buyer characteristics, cultural, social, personal and psychological, influence buying behavior?

- How do buyers make purchasing decisions?

Diagram 3.1: Consumer buying behavior

Stimulating factors
Marketing	Environment
Product	Economy
Price	Science and Technology
Distribution	Culture
Promotion	Politics
	Law
	Compete

The "black box of consciousness"

consumer

Consumer characteristics

The purchase decision process

Response

Choosing products Choosing brands Choosing suppliers Choosing when and where to buy

Select volume

buy

Stimuli: are all the factors and forces outside the consumer that can influence consumer behavior. They are divided into two main groups: marketing stimuli that are within the control of the business and external stimuli that are not under the absolute control of the business.

The consumer's "black box of consciousness": is the name given to the human brain and its operating mechanism in receiving, processing stimuli and proposing solutions in response to stimuli. The consumer's "black box of consciousness" is divided into two parts: consumer characteristics: how does it fundamentally affect how consumers receive stimuli and respond to stimuli? And the consumer's purchase decision process is the entire path consumers take in activities related to purchasing.

Consumer responses are the observable reactions consumers exhibit during an exchange.

The most important issue in this model is to understand what happens in the "black box of consciousness" when consumers receive stimuli, especially marketing stimuli.

1.2.3. Factors affecting consumer buying behavior Diagram 3.2: Factors affecting buying behavior

Culture


	Society
		Individual
			Mentality
Culture	Social class	Age, gender	Engine
Cultural Branch	festival	Life stage	Awareness
Cultural Branch	festival	Life stage	Awareness	Consumers
The exchange and	Reference group	Job	Knowledge
text transformation	survey	Situation	Faith and
chemical	Family	economy	opinion
chemical	Family	economy	opinion
	Role and	Lifestyle
	social status	Personality
		Personality

Cultural factors

Cultural factors have the most profound influence on consumer behavior. We will consider the role of culture, subculture, and the buyer's cultural exchange and transformation.

Culture

Culture is the most fundamental determinant of a person's wants and behavior. A child as he or she grows up will acquire a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions. A child growing up in the United States has been exposed to the following values: achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness.

Cultural Branch

Each culture has smaller subcultures that provide more specific identities and socialization for its members. Subcultures make up important market segments, and marketers often design products and marketing programs to meet their needs.

To analyze the above model, below we take the example of Mrs. Linda's computer purchasing behavior.

When she makes her purchases, Linda will be influenced by the characteristics of her subculture. These will influence her food preferences, clothing choices, leisure activities, and career aspirations.

She may have come from a subculture that highly values "educated people" and this helps explain why she was interested in computers.

Cultural exchange and change

Cultures and subcultures always seek to preserve their cultural identity, but that does not mean that their members are not influenced by other cultures.

Cultural exchange and transformation is the process by which individuals absorb other cultures to enrich their own culture and in the process, consumers affirm their core cultural values.

Social factors

Consumer behavior is also influenced by social factors such as social class, reference groups, family, and social roles and status.

Social class

Virtually all human societies exhibit social stratification. This stratification sometimes takes the form of a caste system in which members of different castes are raised and trained to assume certain roles. More commonly, it is stratification into social classes. Social classes are relatively homogeneous and enduring divisions within a society, hierarchically ordered and whose members share similar values, interests, and behaviors.

Reference group

Many groups influence a person's behavior. A person's reference groups include those groups that have a direct (face-to-face) or indirect influence on his or her attitudes or behavior. Groups that have a direct influence on a person are called membership groups. These are the groups to which the person belongs and interacts. There are primary groups such as family, friends, neighbors, and co-workers, with whom the person interacts on a regular basis. Primary groups are more formal in nature and require less frequent interaction.

Marketers attempt to identify the reference groups of their target customers. People are strongly influenced by reference groups in at least three ways. Reference groups expose an individual to new behaviors and lifestyles. They also influence a person's attitudes and self-concept, because he or she often wants to fit in. They create pressures to conform to common norms and can influence a person's actual product and brand choices. Group influence is strong regarding the products that people buy.

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