Repertoire Market vs. Subscription Market - Assignment Example

Running head: Consumer behaviour Student name: Student number: Course title: Lecturer: Date: Executive summary The consumer behaviour is very important in analysing the trends of any company. There are many parameters that analysed in getting to know the consumer behaviour of a particular company. The behaviour of consumers towards a product will vary from one product to another. This paper will look into the logistics that were studied in the companies that the research was based on. It will look at the research that was found in the statistics that was got from the tabulated data. Influencing the way people act in their consumption patterns is a concern that has been of great interest of late. This has been researched in many disciplines (Pearce, 2009). One of the factors that leads to this is that there a lot of competition in the service sector. There is need to understand the behaviour of the consumer so that one will get the buying behaviour of them. Bigger Banks, like Bank B have a lower churn rate than smaller banks in the same market. This will mean that consumers will increaser and will therefore have many people depositing in their account. Aggressive marketing of the loan should be done so that the users/clients of the bank can be made use of. Of the four banks, Bank B had the highest penetrations. The loyalty of the brand also was high in Bank; this will imply that the brand be marketed aggressively in order to sell (Luck, Ferrell, & Lucas, 2005). In the overall performance in salience metrics Bank B has the highest salience. This means that the Bank will receive more users of the new products from the bank. Basing on the demographics, it is clear from the results that there are more couples prefer Bank B when compared to singles. Singles prefer Bank B. This means that the bank has to concentrate on the products which favour the elderly in the society as opposed to the products that favour students and the youth. Table of Contents Executive summary 2 Table of Contents 3 Section 1 4 Section 2 5 Section 3 8 Target markets 9 Key Marketing Objectives 9 Consumer behaviour 10 References 12 Section 1 1. In terms of penetration, Bank B has the highest penetration when compared to the other banks. Competitive repeat purchase markets are polarised into two distinct forms which are termed as either repertoire and subscription markets. \between the two banks, both expected to be repertoire markets, S varied from 0.28 to 12.9 with one of the banks having an S value of more than 0.8. it is also worth nnoting that there are some other categories that have an S value of 2.0 which equates to having more constrained within a narrow ranger rather than showing an even distribution. While Bank E has the lowest concentration in the market, Bank A, C and F compete, though at distant rates, with Bank B. In all the other parameters, Bank B has the highest First Loyalty ranks probably because it has the best brands among the five Banks under consideration. The category buying rate is low in Bank B. Most probably, Bank B has developed good strategies that will make them the best in marketing (Pride, 2009). They have developed strategies that distinguish their brands from the highly competitive therapeutic markets. There is need to have aggressive promotions in the market, tactics and strategies that will make brands sell well in the market. Repertoire market vs. subscription market A subscription market is the one which has customers subscribing to one brand for a long time until when they shift to another brand. There are examples of subscription markets which include insurance, banking, and telecommunications. Given the fact that consumers use one brand at one time, using another brand will mean that they have defected. A repertoire market on the other hand is the one where buyers repeat markets. This normally happen within a consumer’s individual repertoire. The proportion of the repertoire that a particular brand has at one particular time is normally stable. Bank B is a repertoire market because of the penetration and due to the fact that bigger banks, those with the highest penetration have repertoire markets. In repertoire markets, the loyalty is very low. This is common in the scenario. Most of the categories tend to have low annual category penetration. Bank B is preferred by more than 67% of the population. Most of the S categories are charactersitucally low. 2. Marketing strategies should focus on new clients. The strategy that the marketing director uses is not a good one. This is because stationary markets rarely change. There is need to have more clients to be repertoire because they will rarely change. Most markets are stationary in the medium term, thus suggesting that marketing activity has short-term impact like that of price promotion or that of longer term effect or they might have some success in maintaining status quo. Section 2 3. There is a difference between brand salience and brand image in that brand salience refer to share of mind that the brand in question; this is actually the size of the thought of the brand in the minds of the customers. An example is that two customers may associate a brand with totally different attributes but yet still have the same salience level. On the other hand, brand image is what the customer thinks of the brand. Brand salience is the quality of the links and the size of the brand in the markets collective mind. This is the evaluation of how often people think about the brand. The measurement is made on how many times they think about a brand. It is not a measure of what they think of the brand. Brand salience affect busily situations in that if a brand is not in the minds of people to a point of being bought, then it will mean that the brand will not get bought. This therefore means that it is good and advisable to have long cues for the brand. There are various uses of information which include being used to specify the rules for the decisions. It is also used for comparison of the various brands that the buyer is aware of. Bank Bank B should measure salience due to the fact that they should know if their impact is felt with the clients. 4. The patterns in table 2 show that the brand salience of Brand B is lower. This is because it is expected to still have a wider margin when compared to the other parameters that has been used all along. Given the customer base that is there in the market, there is need for Bank B to have a higher rate than this. There should be more clients thinking of their brands. 5. The implications mean that Brand B should do a wide campaign so that there are many people thinking of their brand. . The research and development of Brand B Company carries out customer research so as to identify those qualities which the customers are looking for when buying products and services. After identification of such qualities, they ensure that their advertisement addresses those elements so as to attract customers. The managers and marketing department of Brand B Company have thought of marketing tactics in terms of 4 P’s which is composed of promotion, price, products and place. They use these 4p’s to address customers’ needs and wants effectively. Brand B Company uses this marketing mix in the following ways: promotion to reach their customers and potential customers in the market and address their needs in details. They use various forms of promotion such as advertisement, public relation, personal selling and the use of e-mails. The Section 3 Bank B is not the same as the other companies when it comes to the demographics. The demographics of the banks shows that Bank B has a high figure for the singles and lower in the couples. This is shown below: It is clear that many customers in the customer base are female. It is clear from this that attitude and the personal taste count in this. Those groups that possess the same personalities, characteristics/traits are placed in a segment of a target market so as to help a marketer make clear prediction of consumer behaviour expected (East, Wright, & Vanhuele, 2008). By understanding the group will aid the marketer come up with relevant information related to traits, lifestyle or individual’s characteristics? Purchase through attitude and lifestyle of a given personality can be influenced Product is perceived by consumers differently; according to how the understand the information given by the marketer. Past experiences can e interrelated with perception of the product. The way a marketer communicated to consumers determines whether they are buying or not. In order to be well understood it should se filtered through mass advertising. Target markets The main targets of the company are the business people who travel a lot and the tourists who travel far places for holiday. They target these groups so that they can sell to them their corporate credit cards. According to the research carried out by the marketing department of the company, customers have found to be using averages spend up to 2-4 times as compared to the customers using competing cards. The company targets these groups because of their high expenses they incur. It is believed that cardholder spent about $11,213 annually, before the other cards issued by affiliates. Such rates allow the company to charge a discount rate of about 2.54%. This doubles the rates which is charge by its competitors (Kintrya, 2010). The Bank B has carried research concerning their product development in the market. Some of these products incorporate U.S. card services which is acceptable across the globe, global network and merchant etc. other products which are offered by the company are services international card and global commercial services to its customers. This strategy is very essential to the company because they will be in a position to identify the performances of their products in the market. http://www.wikinvest.com/stock/American_Express_Company_ (AXP)> Key Marketing Objectives Kerin (2008) argues that the marketing objectives of the Banks like B are to meet its goal of maximising profit from the following sources. Some of these sources include discount revenue, commission, fees and the net securitization income. Through this goal, the company will be in a position to retain its quality products and services its offers to its customers. Consumer behaviour This is very important to any organization offering financial products and services in the market. The company should identify the consumer behaviour by interviewing them. Consumer behaviour in this field is complex because customers come from different places. Furthermore, banking services are very sensitive and many customers prefer the known companies only. This behaviour of customers has been advantage to the company because new competitors are not capable of competing because customers cannot accept then (Busch, 2008). In addition, the customers’ behaviour varies greatly due to the different needs and wants. This behaviour has forced the financial institutions to segment its market geographically which creates market niches with different characteristics. Positioning Though the company offers various varieties of products and services, they specialize on the corporate cards to the employees of a company to help them in purchasing without carrying cash currently the company is focusing on their objective of developing point-of-sale debit card so as to attract many customers (Dewey, & Bowker, 2010). They plan to achieve this by utilising the availability of skilled employees who are IT professionals. Differentiation The Bank B has differentiated itself by offering reliable and quality products to their customers. More to the point, they differentiate themselves from competitors through their recognised brand and their pricing strategies that they use. The company prices its products highly to signal the high quality and reliability of their products. This strategy has attracted high class customers to use the company’s products. Pricing Strategy The pricing strategy of American Express depends on the market forces when there are in other continents. The pricing strategy American has been restricted by the American government (DuBrin, 2009). They signed into law the Credit Card Accountability that will determine the interest rates despite of the market forces. Entry mode to foreign market This has always been quite challenging part for the Bank B. This is because in many countries, they are various requirements to be complied with. Theses legal step has been quite expensive for the company in terms of time (Kurtz, 2008). Furthermore, the company finds it difficult to reconcile its financial statements with other branches in different countries because of varying accounting measures which are used in different countries. Solved all these problems, the company prefer franchising to make simple for them. References Busch, P. (2008).Tacit Knowledge in Organizational Learning. Idea Group Inc (IGI). Dewey, M., & Bowker, R. (2010). “Planning and controlling” American Library publication, DuBrin, A. (2009).Leadership: Research Findings, Practice, and Skills. Cengage Learning East, R., Wright, M., & Vanhuele, M. (2008). Consumer behaviour: applications in marketing .Sage Publications Kerin, R. (2008). Marketing: the core. McGraw Hill Education. Kintrya, D. (2010). ‘Functions of management’ The National Association of Corporation Training and American Management Association, Volume 7, p 36 Kurtz, D. L. (2008). Contemporary Business 2009 Update. Cengage Learning Library journal, vol 122, p 23 Luck, J., Ferrell, O., & Lucas, G. (2005). Marketing strategy plans. Prentice Hall. Pearce, (2009) Strategic Management 10E. McGraw-Hill Education (India) Pvt Ltd Pride, M. W. (2009). Business. Cengage Learning Read More