Learning Outcomes

Model of Consumer Behavior:Environmental factors.Student can use the model of consumer behavior to identify those environmental factors most likely to affect the consumer decision making for a specific product or service.

Model of Consumer Behavior:Consumer factors.Student can reference the model of consumer behavior to identify the consumer factors most likely to affect the decision making for a specific product or service.

Role of Involvement in purchase decisions.Student can identify the role of consumer involvement applicable to a specific product or service offering and how that level of involvement affects the type of decision making.

Consumer decision-making process.Student can identify how marketing strategy can influence each of the steps in the consumer decision-making process.

Directions

Refer to the product or service you selected at the beginning of the semester. This week, you want to take a closer look at what consumer factors may be relevant for customers who are considering buying your product or service offering.This will require some critical thinking on your part based on your own behavior if you are a customer yourself, or you may want to talk to others who have purchased the product.Sometimes you can find clues when looking at the marketing messages that may be addressing some of these factors.

Prepare your assignment beginning with a cover page with your name and the product or service. Then answer the following four questions in order and number the beginning of your response to each question.

1.Consumer Behavior Model:Environmental factors.Refer to the week's readings and the model of consumer behavior and identifytwoof the most important environmental factors you think are relevant to the customers of your product or service offering.Explain your choices.

2.Consumer Behavior Model:Consumer factors.Refer to this week's readings and the model of consumer behavior and identify thethreemost important consumer factors you think are relevant to the customers of your product or service offering.Explain your choices.

3.Role of involvement in consumer decision-making.Identify the level of involvement a customer of your product or service might use to make a purchaseo purchase decision.Then, discuss which type of buying behavior is most consistent with that level of involvement.

4.Consumer decision-making process.Go through the six steps of the purchase process outlined in the readings and identify where marketing can influence each of the six steps.For example, if a consumer just identified a need for your product in step one, then the company can advertise how your product fills that need.Or, if a consumer purchased your product, the consumer can be called and asked about their satisfaction with the product and if there is any dissatisfaction steps can be taken to ensure the customer satisfaction.Be sure to be more specific with respect to your product or service than this example.

Part 2 - Market Segmentation, Targeting, and Positioning

Learning Outcomes

1.Segmentation.Students can use the segmentation characteristics to identify and describe market segments

2.Target Market. Students can identify a usable market segment to be a target market

3.Target-market strategy. Students can determine an appropriate target-market strategy.

4.Positioning.Students can develop and interpret a perceptual map.

Directions

So far, you have only been considering the customers of your product or service as one big group, or a mass market.More astute marketing breaks down this large group into smaller market segments of consumers who have similar characteristics.For any specific product or service, there could be numerous market segments.However, company resources may only allow a company to pursue one or two or these market segments, which then become target market(s).In this paper, you should divide the mass market for your product or service into at least two market segments and then pick one target market you think would have the most potential for future growth.This target market does not have to be the one the company would have actually picked, or is currently pursuing.

Think outside your own box.Chances are good you picked a product with which you are familiar. That is a good starting point, and you may represent one target market.But you may represent a target market that is saturated and therefore not the best target market to pick for the remainder of the semester.So be sure your second target market is different enough and represents growth potential.

If you did not do a thorough analysis of the competition in the prior writing assignment, you may need to go back and figure out the nature of the product's or services competition.This will be important when you address the positioning of your product for your newly identified target market inasmuch as positioning is a competition-based concept.

We understand you are not an employee of the company and do not have access to the data that you feel will allow you to discuss the questions to the degree you would like.Take your best educated and reasoned guesses whenever you need to do so.

Your job will be to critically examine all of the segmentation bases and arrive at your own description of potential market segments for your product or service.

You may want to visithttp://www.segmentationstudyguide.com/understanding-perceptual-maps/a-step-by-step-guide-to-constructing-a-perceptual-map/for a step-by-step guide on how to draw a perceptual or positioning map.Remember to label both axes of your perceptual map.Meanwhile, here is an example of a perceptual map for the beer market, an excellent example for a highly competitive product.

Prepare your assignment by answering the following four areas of inquiry related to the learning outcomes noted above.

1.Segmentation.Using the various criteria of the segmentation bases described in the week's readings and in Table 4.1, identify at least two distinct market segments for your product or service.Each market segment description must include at least three (more if needed)of the characteristics from amongst any of the four bases categories, e.g. one from demographic variables, one or two from psychographic variables, and one from behavioral variables, or a similar scheme.Be sure to explain your choices based on what customer need the product or service offering can fill for each segment.

2.Target market.Select one of the market segments you described in (1) above as the one you believe is or can be the most profitable for your product or service offering and explain why you feel they can represent growth for the company.Refer to the six criteria for an attractive market segment as described in course content under Selecting Target Markets.Name your target market so you can use this name throughout all of your remaining writing assignments.Your name should be descriptive of the segments' characteristics like 'savvy young shoppers' or 'educated baby boomers', or 'urban hipsters', or the like.The goal is for your faculty member to get a mental image of your target market for the remainder of the semester.

3.Target market strategy.Should the company focus all their resources on this new target market (concentrated marketing) or should they continue to pursue both the new and the existing target market as well as other market segments (multi-segment marketing)?Alternatively, is the market so saturated might they be more successful by focusing solely on an even more narrow market segment, perhaps an even narrower version (niche marketing) of your selected target market, as their best chance for growth?What is your reasoning?

4.Positioning.Draw yourself a perceptual map as illustrated in the week's readings or use the websites noted in the directions. Be sure to pick two criteria that are important to your new target market for your two axes, perhaps two of the criteria you used in Week 1 in your competitive analysis.Map at least the two major competitors you noted in the previous writing assignment and add any others that you may have discovered since then.Describe what the perceptual map is telling you regarding how each product is perceived in the minds of the new target market you described above.You may have to make a series of educated guesses for some of the data points.Ideally, you want to find uncontested space. If your product overlaps with a competing offering discuss whether or not your product or service should try for an uncontested space on the map and reposition itself; or if it should keep the same position and compete head on with the other product.(You will have a chance to make changes to the product, the pricing and the distribution to change the product's positioning and find uncontested space in the coming weeks).

General Submission Requirements

Prepare as a word processed document (such as Microsoft Word).Use a simple 12-point font such as Times New Roman.Use black ink for majority of your work and only use colors if it enhances your ability to communicate your thoughts.

Your assignment should be the equivalent of approximatelyfivepages of double-spaced text, approximately 1/2 page for each of the eight questions (four in Part 1 and four in Part 2).You may attach exhibits that will not be counted towards the page count of double-spaced text. The cover page and Bibliography page are not part of the five pages of written analysis.

Be sure your name, writing assignment number, and the name of your product or service are on the cover page of your writing assignment.

Include a bibliography, which includes at least four references.

You may use MLA or APA style, or any other college-level style guide. More information about using a style guide can be found in the UMUC's virtual library accessible from your LEO classroom or at umuc.edu/library.

Upload your word processed document in your LEO assignments folder by the due date in the LEO calendar.

Refer to the grading rubric associated with the assignments.Be sure to note that 20% of your grade on this assignment will be based on your grammar, composition, adherence to the submission requirements, and use of an appropriate college-level style guide for writing and referencing.

Learning Outcomes Model of Consumer Behavior: Environmental factors. Student can use the model of consumer behavior to identify those environmental factors most likely to affect the consumer decision making for a specific product or service. Model of Consumer Behavior: Consumer factors. Student can reference the model of consumer behavior to identify the consumer factors most likely to affect the decision making for a specific product or service. Role of Involvement in purchase decisions. Student can identify the role of consumer involvement applicable to a specific product or service offering and how that level of involvement affects the type of decision making. Consumer decision-making process. Student can identify how marketing strategy can influence each of the steps in the consumer decision-making process. Directions Refer to the product or service you selected at the beginning of the semester. This week, you want to take a closer look at what consumer factors may be relevant for customers who are considering buying your product or service offering. This will require some critical thinking on your part based on your own behavior if you are a customer yourself, or you may want to talk to others who have purchased the product. Sometimes you can find clues when looking at the marketing messages that may be addressing some of these factors. Prepare your assignment beginning with a cover page with your name and the product or service. Then answer the following four questions in order and number the beginning of your response to each question. 1. Consumer Behavior Model: Environmental factors. Refer to the week's readings and the model of consumer behavior and identify two of the most important environmental factors you think are relevant to the customers of your product or service offering. Explain your choices. 2. Consumer Behavior Model: Consumer factors. Refer to this week's readings and the model of consumer behavior and identify the three most important consumer factors you think are relevant to the customers of your product or service offering. Explain your choices. 3. Role of involvement in consumer decision-making. Identify the level of involvement a customer of your product or service might use to make a purchaseo purchase decision. Then, discuss which type of buying behavior is most consistent with that level of involvement. 4. Consumer decision-making process. Go through the six steps of the purchase process outlined in the readings and identify where marketing can influence each of the six steps. For example, if a consumer just identified a need for your product in step one, then the company can advertise how your product fills that need. Or, if a consumer purchased your product, the consumer can be called and asked about their satisfaction with the product and if there is any dissatisfaction steps can be taken to ensure the customer satisfaction. Be sure to be more specific with respect to your product or service than this example. Part 2 - Market Segmentation, Targeting, and Positioning Learning Outcomes 1. Segmentation. Students can use the segmentation characteristics to identify and describe market segments 2. Target Market. Students can identify a usable market segment to be a target market 3. Target-market strategy. Students can determine an appropriate target-market strategy. 4. Positioning. Students can develop and interpret a perceptual map. Directions So far, you have only been considering the customers of your product or service as one big group, or a mass market. More astute marketing breaks down this large group into smaller market segments of consumers who have similar characteristics. For any specific product or service, there could be numerous market segments. However, company resources may only allow a company to pursue one or two or these market segments, which then become target market(s). In this paper, you should divide the mass market for your product or service into at least two market segments and then pick one target market you think would have the most potential for future growth. This target market does not have to be the one the company would have actually picked, or is currently pursuing. Think outside your own box. Chances are good you picked a product with which you are familiar. That is a good starting point, and you may represent one target market. But you may represent a target market that is saturated and therefore not the best target market to pick for the remainder of the semester. So be sure your second target market is different enough and represents growth potential. If you did not do a thorough analysis of the competition in the prior writing assignment, you may need to go back and figure out the nature of the product's or service's competition. This will be important when you address the positioning of your product for your newly identified target market inasmuch as positioning is a competition-based concept. We understand you are not an employee of the company and do not have access to the data that you feel will allow you to discuss the questions to the degree you would like. Take your best educated and reasoned guesses whenever you need to do so. Your job will be to critically examine all of the segmentation bases and arrive at your own description of potential market segments for your product or service. You may want to visit http://www.segmentationstudyguide.com/understandingperceptual-maps/a-step-by-step-guide-to-constructing-a-perceptual-map/ for a step-by-step guide on how to draw a perceptual or positioning map. Remember to label both axes of your perceptual map. Meanwhile, here is an example of a perceptual map for the beer market, an excellent example for a highly competitive product. Prepare your assignment by answering the following four areas of inquiry related to the learning outcomes noted above. 1. Segmentation. Using the various criteria of the segmentation bases described in the week's readings and in Table 4.1, identify at least two distinct market segments for your product or service. Each market segment description must include at least three (more if needed) of the characteristics from amongst any of the four bases categories, e.g. one from demographic variables, one or two from psychographic variables, and one from behavioral variables, or a similar scheme. Be sure to explain your choices based on what customer need the product or service offering can fill for each segment. 2. Target market. Select one of the market segments you described in (1) above as the one you believe is or can be the most profitable for your product or service offering and explain why you feel they can represent growth for the company. Refer to the six criteria for an attractive market segment as described in course content under 'Selecting Target Markets'. Name your target market so you can use this name throughout all of your remaining writing assignments. Your name should be descriptive of the segments' characteristics like 'savvy young shoppers' or 'educated baby boomers', or 'urban hipsters', or the like. The goal is for your faculty member to get a mental image of your target market for the remainder of the semester. 3. Target market strategy. Should the company focus all their resources on this new target market (concentrated marketing) or should they continue to pursue both the new and the existing target market as well as other market segments (multi-segment marketing)? Alternatively, is the market so saturated might they be more successful by focusing solely on an even more narrow market segment, perhaps an even narrower version (niche marketing) of your selected target market, as their best chance for growth? What is your reasoning? 4. Positioning. Draw yourself a perceptual map as illustrated in the week's readings or use the websites noted in the directions. Be sure to pick two criteria that are important to your new target market for your two axes, perhaps two of the criteria you used in Week 1 in your competitive analysis. Map at least the two major competitors you noted in the previous writing assignment and add any others that you may have discovered since then. Describe what the perceptual map is telling you regarding how each product is perceived in the minds of the new target market you described above. You may have to make a series of educated guesses for some of the data points. Ideally, you want to find uncontested space. If your product overlaps with a competing offering discuss whether or not your product or service should try for an 'uncontested' space on the map and 'reposition' itself; or if it should keep the same position and compete head on with the other product. (You will have a chance to make changes to the product, the pricing and the distribution to change the product's positioning and find uncontested space in the coming weeks). General Submission Requirements Prepare as a word processed document (such as Microsoft Word). Use a simple 12-point font such as Times New Roman. Use black ink for majority of your work and only use colors if it enhances your ability to communicate your thoughts. Your assignment should be the equivalent of approximately five pages of double-spaced text, approximately 1/2 page for each of the eight questions (four in Part 1 and four in Part 2). You may attach exhibits that will not be counted towards the page count of double-spaced text. The cover page and Bibliography page are not part of the five pages of written analysis. Be sure your name, writing assignment number, and the name of your product or service are on the cover page of your writing assignment. Include a bibliography, which includes at least four references. You may use MLA or APA style, or any other college-level style guide. More information about using a style guide can be found in the UMUC's virtual library accessible from your LEO classroom or at umuc.edu/library. Upload your word processed document in your LEO assignments folder by the due date in the LEO calendar. Refer to the grading rubric associated with the assignments. Be sure to note that 20% of your grade on this assignment will be based on your grammar, composition, adherence to the submission requirements, and use of an appropriate college-level style guide for writing and referencing. Principles of Marketing Writing Assignment Product Name: Apple Watch Name Date 2 1. Consumer Behavior Model: Environmental factors Technology and Communication is the two most important environment factors of Apple Watch. Apple uses 'Technology' as a significant tool to reach out the customers. Apple does not believe in depending only on the market research to know what consumers want but solely relies on providing great products to the customers. Apple believes that it's not the customer's job to know what they want because the customer cannot tell about the thing which he has never seen, so it's the job of the company to deliver the technology significant to the customer. To identify the customer's behavior and purchasing habits, Apple accesses their sessions once they are logged in. The other important factor 'Communication' believes in educating the customer and making them aware of the critical insights of the Apple Watch. With the help of the Communication factor, Apple can significantly stimulate cognitive knowledge in the customers and provide them meaning and belief about Apple Watch. It is a valuable process for Apple to integrate with the customers to know that how the customers interpret and receive the marketing strategies of the Apple and not just their product. 2. Consumer Behavior Model: Consumer factors The three most important consumer factors are Psychological (perception), Reference group and Social (family). The perception of the consumer refers to his imagination about the product and its offerings and if the consumer gains a positive perception of the product he gets motivated to purchase it. Sometimes, consumers purchase a product only because they find it justifying their conscious. This may be a result of mass influence on the evolving society and high exposure to advertisements (Laja, 2015). Reference groups influence the people as well to develop a behavior and attitude in forming social status. When our close ones or friends wear 3 some new fashion thing, Apple Watch, we pay attention to them and thus it leads to a desire to follow them, however, this similar impact may not be due to a stranger. Lastly, the most influential factor is family as since the childhood our parents decide and make choices for us. Thus, the influence of the family members and their feedback about buying the Apple Watch will affect the decision of the consumer. 3. Role of involvement in consumer decision-making Apple Watch cannot be considered as an item which can be frequently purchased and thus it requires 'high-involvement'. This is because Apple product has high price tags and thus if the product fails anyhow, it creates an elevated risk. For an average customer, Apple products are not considered as an impulsive purchase. To justify the risk, Apple Watch engages the customers in the extensive product comparison. It also offers top of the notch retail stores, which are specialized in providing superior information to consumers to avoid buyer's dissonance (Armstrong, Adam, Denize & Kotler, 2014). The company furthermore possesses the rare ability to analyze the data to gain valuable insights about what will captivate the consumer before the consumer knows what's going to captivate them (Zoeller, 2015). 4. Consumer decision-making process Apple Watch consumer don't necessary go through \"need recognition\" since it is not an everyday necessity but rather a 'want item' than a 'need item'. Information about the Apple Watch is widely available online, in retail stores, through reference and family. An Apple Watch consumer most likely will start at stage 3 \"Product Evaluation\" in where Apple's retail stores provide the frame. The retail stores are very inviting with its complementary customer oriented 4 service; it's one on one tutorials, workshops and product repairs. All these factors contribute to value creation and increase the customer satisfaction and brand loyalty (Belk, 1975). 5 References Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia. Belk, R. (1975). Consumer Behavior. The Wiley Blackwell Encyclopedia of Consumption and Consumer Studies. Laja, P. (2015). 9 Things to Know About Influencing Purchasing Decision. ConversionXL. Retrieved January 31, 2016 from http://conversionxl.com/9-things-to-know-aboutinfluencing-purchasing-decisions/ Zoeller, S. (2015). How Apple Uses Consumer Behavior Marketing to Win. Stephen Zoeller's Marketing Blog. Retrieved January 31, 2016 from http://www.stephenzoeller.com/howapple-uses-consumer-behavior-marketing-to-win/ Course Name Assignment 2: Apple Watch Name Professor's Name [optional] 2 1. Segmentation The Apple Watch is likely to be compatible with the iphone 5 and 6 and thus the new market will narrow towards the Apple market share for the Watch. The segmentation of Apple Watch can be categorized on the basis of demographic, psychographic and behavioral attributes. According to the demographic variables, it can be seen that age and wage social gatherings can be considered as one of portion variables. The elements furnished with the Apple Watch has more accentuation on sound way of life and indication of wellbeing schedules (Apple, 2016).The elements exemplified inside of the item will have a tendency to draw in the more youthful to middle age people. The value demonstrated would be relied upon to be 300 pounds or more (Suleman, Preece & Donnelly, 2015). Likewise inferable from the new class interruption inside of the Apple Company, the clients willing to have a slant would for the most part live towards the Innovators classification with likely hood of achievers and experience's willing to have buys and have effect by media (Strategic Business Insights, 2016). 2. Target Market In light of the potential business sector fragments, we should assess the business sector portion, build up their profiles lastly pick advertising system. The market potential is developing with present offer being 31% in view of October 2014 information, however the piece of the overall industry of Android clients stays high at 58.2 %.With solid contender base effectively settled in the business sector for keen wearable watches with Microsoft, LG, Motorola and Samsung, the interest of iwatch will blast in the business sector. According to Sawh, (2015) the assessed offer of Apple watch can be approximated to 40 million units on the very first moment. 3 3. Target market strategy Having set up the capability of the business sector fragment for customers according to the confirmation, it is sheltered to say that the interest will be more towards the current Apple clients where devotion of brand can be normal. The aggressive procedure for Apple watch concerning putting itself in business sector is to give a more customized experience to the business sector fragment and since Apple is as of now considered as a materialistic trifle, the fundamental center is to showcase the item to mark faithful clients. This will likewise lead us to choose the separated focusing on technique to have a grip over various buyers that can prompt expand the item profile in business sector (Suleman, Preece & Donnelly, 2015). 4. Positioning Positioning the Apple Watch in the business sector is fundamentally breaking down the rivals in the specific business sector portion as for its rivals. Building up a business sector procedure with the right blend to pull in these clients must be of the pith. Taking the perceptual guide of rivals in the business sector and their business sector investigation can be seen above, as companies like LG and Motorola have a genuinely solid hang on customers mind because of its tremendous degree of elements and stylish looks that 4 take after an ordinary watch. However the degree of effortlessness of utilization and offering inconceivable variations of Apple extras and configuration places it somewhat over the scale in the portion. Having said that alternate head honchos, for example, Sony and Samsung appear to have not by any means tended to the fragment as far as appearances and the usefulness needs esteem to customers (Sawh, 2015). 5 References Apple, (2016). Our Approach to Privacy. Apple Inc. Retrieved February 8, 2016 from http://www.apple.com/in/privacy/approach-to-privacy/ Sawh, M. (2015). Apple Watch review. Trusted Reviews. Retrieved February 8, 2016 from http://www.trustedreviews.com/apple-watch-review Strategic Business Insights, (2016). US Framework and VALS Types. Retrieved February 8, 2016 from http://www.strategicbusinessinsights.com/vals/ustypes.shtml Suleman, K., Preece, C. & Donnelly, C. (2015). Apple Watch release date, price, features, availability and delivery date: Everything you need to know about Apple Watch. ITPRO. Retrieved February 8, 2016 from http://www.itpro.co.uk/mobile/22982/apple-watchrelease-date-price-features-availability-and-delivery-date-everything-you-11