Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Trong marketing, cạnh tranh sản phẩm được chia thành bốn cấp độ từ rộng đến hẹp. Cấp độ đầu tiên là cạnh tranh nhu cầu chung (generic competition), khi các sản phẩm khác nhau cùng đáp ứng một nhu cầu cơ bản. Tiếp theo là cạnh tranh ngành hàng (category competition), gồm các sản phẩm trong cùng nhóm chức năng. Cấp độ thứ ba là cạnh tranh hình thức sản phẩm (product form competition), giữa các sản phẩm có cách tiếp cận hoặc công thức tương đồng. Cuối cùng là cạnh tranh thương hiệu (brand competition), khi các thương hiệu cụ thể cạnh tranh trực tiếp trong cùng phân khúc. Hiểu rõ từng cấp độ giúp thương hiệu xác định đối thủ và xây dựng chiến lược định vị hiệu quả.
Typology: Summaries
1 / 21
This page cannot be seen from the preview
Don't miss anything!
Giảng viên hướng dẫn: TS. Bảo Trung Sinh viên thực hiện: Nguyễn Phạm Minh Thy Mã số sinh viên: 2221001833 TP. Hồ Chí Minh, Học kỳ 1 – 2025
TP. Hồ Chí Minh, Học kỳ 1 – 2025
ii
LIST OF FIGURES ........................................................................................................ i TABLE OF CONTENTS ..............................................................................................ii CHAPTER 1. THE CUSTOMER DECISION-MAKING PROCESS ..................... 1 1.1. THE CUSTOMER DECISION-MAKING PROCESS ................................... 1 1.1.1. Problem recognition.............................................................................. 1 1.1.2. Information search ................................................................................ 1 1.1.3. Evaluation of alternatives ..................................................................... 3 1.1.4. Purchase decisions ................................................................................ 6 1.1.5. Post-purchase behavior ......................................................................... 7 1.2. THE IMPORTANCE OF UNDERSTANDING CUSTOMER DECISION- MAKING PROCESS ................................................................................................ 8 1.2.1. Enhancing customer experience and satisfaction ................................. 8 1.2.2. Optimizing marketing strategies ........................................................... 9 1.2.3. Identifying market opportunities .......................................................... 9 1.2.4. Addressing sales barriers and improving conversion rates ................... 9 1.2.5. Strengthening competitive advantage ................................................... 9 1.2.6. Improving customer retention and loyalty............................................ 9 CHAPTER 2. PRODUCT POSITIONING ............................................................... 10 2.1. PRODUCT POSITIONING ............................................................................ 10 2.1.1. Cost/Price (Value) strategy ................................................................. 10 2.1.2. Non Price strategy............................................................................... 10 2.2. THE IMPORTANCE OF PRODUCT POSITIONING ................................ 11 CHAPTER 3. THE IMPORTANCE OF UNDERSTANDING THE CUSTOMER DECISION-MAKING PROCESS AND HOW IT IMPACTS PRODUCT POSITIONING ............................................................................................................ 12 CHAPTER 4. HOW TO APPLY THE UNDERSTANDING OF THE CUSTOMER DECISION-MAKING PROCESS TO PRODUCT POSITIONING ...................... 14 4.1. PROBLEM RECOGNITION ......................................................................... 14 4.2. INFORMATION SEARCH ............................................................................. 14
Web sites, salespersons, dealers, packaging, displays); Public (Mass media, consumer- rating organizations); Experiential (Handling, examining, using the product). The relative amount and influence of these sources vary with the product category and the buyer’s characteristics. Generally speaking, the consumer receives the most information about a product from commercial sources - that is, marketer- dominated sources. However, the most effective information often comes from personal sources or public sources that are independent authorities. Each information source performs a different function in influencing the buying decision. Commercial sources normally perform an information function, whereas personal sources perform a legitimizing or evaluation function. For example, physicians often learn of new drugs from commercial sources but turn to other doctors for evaluations.
By gathering information, the consumer learns about competing brands and their features. The individual consumer will come to know only a subset of these brands (awareness set). Some brands will meet initial buying criteria (consideration set). As the consumer gathers more information, only a few will remain as strong contenders (choice set). The consumer makes a final choice from this set (Kotler, Information search). Successive Sets Involved in Consumer Decision Making Figure 1. 2 : Successive Sets Involved in Consumer Decision Making Source: Marketing Management, Philip Kotler Market partitioning in this second stage is important to marketer. Market partitioning is the process of identifying the hierarchy of attributes that guide consumer decision-making in order to understand different competitive forces, how these various sets get formed and also the customer segments. Consumers prioritize different attributes, forming distinct decision hierarchies, such as brand-dominant, nation-
dominant, type-dominant, or price-dominant hierarchies. Consumers who prioritize price are classified as price-dominant; those who first decide based on car type (e.g., sports, passenger, station wagon) are type-dominant; and those who prioritize brand are brand-dominant. These different consumer groups form unique market segments. For example, type/price/brand-dominant consumers represent one segment, while quality/service/type buyers form another. Each segment may differ in terms of demographics, psychographics, and mediagraphics, as well as their awareness, consideration, and choice sets. The process of understanding how consumers navigate the awareness set, consideration set, and choice set during information search plays a crucial role in shaping product positioning strategies. When a company effectively positions its brand within these sets, it increases the likelihood of being selected by prospective buyers. For instance, if a store arranges shampoo products by brand (e.g., Lux and Pantene) and then categorizes them by hair type within each brand, consumers are more likely to choose a shampoo that suits their needs from within a single brand. Conversely, if shampoos are grouped primarily by hair concerns (e.g., dry hair, dandruff control), consumers will first identify the category that meets their needs before deciding on a brand. Recognizing the competing brands within the choice set allows businesses to refine their competitive positioning strategies. Additionally, analyzing information sources - such as advertisements, social media, word-of-mouth, and expert reviews - helps companies understand how consumers progress through their decision-making journey. Identifying how consumers first become aware of a brand, what information influences their consideration, and which sources hold the most weight in their final decision enables firms to craft targeted communication strategies that enhance visibility and brand preference at each stage of the buying process.
Consumers do not follow a single, uniform process when evaluating competitive brand information and making final value judgments. The approach varies among individuals and across different buying situations. However, contemporary models generally adopt a cognitively oriented perspective, viewing consumer decision-making as primarily conscious and rational. Several fundamental concepts provide insight into consumer evaluation processes. First, the consumer's decision-making is driven by the need to satisfy a specific need. Second, the consumer seeks certain benefits that the product can offer as a solution. Third, the consumer perceives each product as a bundle of attributes, each varying in its ability to deliver the desired benefits. The specific attributes of interest differ depending on the product category and individual consumer preferences. For
Figure 1. 3 : Example of Bank Perceptual Map Source: Product Management, Lehmann Fourth, customers are assumed to combine the attribute and importance weight information using some process, or rule, to develop their most preferred option in the product category. Example: Figure 1. 4 : An example of a consumer’s brand beliefs about computer Source: Marketing Management, Philip Kotler Most buyers consider several attributes in their purchase decision. If we knew the weights that Yishan attaches to the four attributes, we could more reliably predict her computer choice. Suppose a customer assigned 40 percent of the importance to the computer’s memory capacity, 30 percent to graphics capability, 20 percent to size and weight, and 10 percent to price. To find Yishan’s perceived value for each computer,
according to the expectancy-value model, we multiply her weights by her beliefs about each computer’s attributes. This computation leads to the following perceived values:
The expectancy-value model is a compensatory model in that perceived good things for a product can help to overcome perceived bad things. But consumers may not want to invest so much time and energy to evaluate brands. They often take “mental shortcuts” called heuristics or rules of thumb in the decision process. With noncompensatory models of consumer choice, positive and negative attribute considerations do not necessarily net out. If a product does not meet a crucial criterion (e.g., cosmetics that do not align with Islamic beliefs), it will be immediately eliminated. Evaluating attributes more in isolation makes decision-making easier for a consumer but also increases the likelihood that the person would have made a different choice if he or she had deliberated in greater detail. Three such choice heuristics will be highlighted:
A satisfied consumer is more likely to purchase the product again and will also tend to say good things about the brand to others. On the other hand, dissatisfied consumers may abandon or return the product. They may take public action by complaining to the company, going to a lawyer, or complaining to other groups (such as business, private, or government agencies). Private actions include making a decision to stop buying the product (exit option) or warning friends (voice option). Figure 1. 5 : How Customers Use or Dispose of Products Source: Marketing Management, Philip Kotler
Understanding the customer buying process is crucial for businesses looking to enhance customer experience, optimize marketing strategies, and drive sales growth. By analyzing how customers make purchasing decisions, businesses can identify opportunities, remove obstacles, and build stronger relationships with their target customers.
A well-structured buying process improves the overall customer experience, making it more seamless and enjoyable. Businesses that understand customer needs and expectations can offer tailored solutions, increasing satisfaction and fostering long-term loyalty. A positive experience also encourages customers to return and recommend the brand to others.
By understanding how consumers decide on purchases, businesses can refine their marketing strategies to engage customers at critical decision-making points. This includes selecting the right channels, timing, and messaging to effectively influence purchasing behavior. Targeted marketing efforts result in higher conversion rates and stronger brand-consumer connections.
Analyzing customer behavior helps businesses recognize emerging trends and unmet needs. This insight allows them to develop new products or improve existing offerings to better serve their target market. Staying ahead of customer demands gives businesses a competitive edge and ensures continued relevance in a dynamic marketplace.
Understanding the customer buying process enables businesses to identify potential roadblocks that may prevent purchases. By addressing these obstacles— whether they involve pricing concerns, lack of information, or a complex checkout process—companies can improve the customer journey and increase sales conversions.
Knowing how customers compare and evaluate different options helps businesses develop competitive strategies. This could involve adjusting pricing, enhancing product quality, improving customer service, or offering unique incentives. A deep understanding of consumer decision-making allows businesses to position themselves effectively in the market.
By analyzing the decision-making journey, businesses can optimize customer interactions at every stage. Providing a smooth and personalized experience builds trust and encourages repeat purchases. Satisfied customers are more likely to become loyal advocates who promote the brand through word-of-mouth recommendations.
competitors. Product managers typically use five areas for differentiation: quality, status and image, branding. To visualize product positioning, companies usually represent it through perceptual maps. These perceptual maps clearly illustrate the points of parity (POP) and, most importantly, the points of difference (POD) that the brand delivers to the target customer. Three criteria determine whether a brand association can truly function as a point of difference—desirability, deliverability, and differentiability: Desirable to consumers; Deliverable by the company; Differentiating from competitors.
Product positioning plays a vital role in shaping how consumers perceive a brand and its offerings in a competitive market. By strategically defining a brand’s identity, value proposition, and differentiation, positioning influences customer decision-making and builds long-term brand equity. One of its key functions is to create a unique and memorable brand image. In an overcrowded marketplace, consumers are constantly exposed to numerous choices. Effective positioning ensures that a brand stands out by highlighting its distinctive benefits, whether based on quality, innovation, affordability, or emotional appeal. A well-positioned product aligns with customer needs and expectations, making it easier for them to recognize and prefer the brand over competitors. Beyond differentiation, positioning serves as a strategic guide for all marketing and branding efforts. It shapes advertising messages, product development, pricing strategies, and customer engagement initiatives. A strong positioning statement clarifies what the brand represents and how it delivers value in a way that competitors cannot easily replicate. Additionally, positioning is dynamic and future-oriented. Markets evolve, consumer preferences shift, and new competitors emerge. A well-crafted positioning strategy not only reflects the brand’s current strengths but also allows room for growth and adaptation. It balances present realities with future aspirations, ensuring that the brand remains relevant and competitive over time. Ultimately, effective product positioning enhances brand loyalty, justifies pricing power, and strengthens market competitiveness. It creates emotional and functional connections with consumers, reinforcing brand preference and driving long-term success. Without clear positioning, even a high-quality product may struggle to gain traction in the market, highlighting its indispensable role in a company’s overall business strategy.
The customer decision-making process is not just a linear sequence from awareness to purchase; it is a complex decision-making process influenced by psychological, social, and technological factors. Understanding this journey is fundamental to developing a strong product positioning strategy that resonates with consumers and creates a sustainable competitive advantage. (1) Aligning positioning with the customer decision-making process: Every stage of the buying process—from problem recognition to post-purchase evaluation—offers critical insights into how customers perceive, compare, and select products. A well-positioned product must reflect these decision-making patterns to remain relevant and persuasive. (2) Identifying key decision drivers to strengthen positioning: Customers rely on different decision-making criteria depending on the stage they are in. Identifying these key drivers allows businesses to refine their positioning and focus on what truly matters to their target audience. For instance, in luxury cosmetics, customers assess brand reputation, product quality, and user testimonials before making a purchase. A luxury brand that positions itself primarily on affordability risks diluting its premium appeal, as price is not the key driver in this segment. Understanding the buying process ensures that product positioning highlights the attributes that influence purchasing decisions the most. (3) Adapting positioning messages to each buying stage: Product positioning is not static—it must evolve to resonate with customers at different points in their journey. Effective positioning strategies tailor messaging for awareness, consideration, and purchase stages, reinforcing the brand’s value at each step. (4) Preventing strategic positioning mistakes: Failing to recognize how customers make decisions can lead to misaligned positioning, reducing a brand’s impact and effectiveness. Common pitfalls include positioning that is too broad, targeting the wrong audience, or lacking consistency. A case in point is Pepsi’s attempt to reposition itself with a more traditional brand image to compete with Coca-Cola. This shift alienated Pepsi’s core audience—young, energetic consumers—resulting in declining sales and a subsequent return to its original
Marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers. They can then develop marketing strategies that trigger consumer interest. This is particularly important with discretionary purchases such as luxury goods, vacation packages, and entertainment options. Consumer motivation may need to be increased so that a potential purchase is even given serious consideration.
Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. The company must also identify the other brands in the consumer’s choice set so that it can plan the appropriate competitive appeals. In addition, the company should identify the consumer’s information sources and evaluate their relative importance. Consumers should be asked how they first heard about the brand, what information came later, and the relative importance of the different sources. The answers will help the company prepare effective communications for the target market.
To strengthen a product’s market position, businesses can adopt various strategic repositioning techniques to influence customer perceptions and decision-making. The following approaches help brands maintain relevance, differentiate from competitors, and align with evolving consumer expectations:
At the purchase decision stage, effective product positioning should reinforce trust, reduce risk, and create urgency. Key strategies include:
The post-purchase stage is crucial for reinforcing brand positioning, fostering loyalty, and influencing future buying decisions. Effective strategies include:
