The paper "Making Purchase Decisions about Banking Service" is a perfect example of a marketing case study. This essay requires the student to select product/services from assignment one and highlighted the five steps involved in making purchase decisions about these services. The product chosen in assignment one was banking service. This will be followed by laying some focus on the bank’ s marketing strategy (segmentation, targeting and positioning). The market for this banking industry will be segmented using both geographic and demographic bases before targeting and positioning is carried out. Lastly, the student will discuss the influence of different ‘ Internal Factors’ on a consumer’ s decision-making for banking service. The process of consumer decision-making is made of five steps namely: the need recognition; information search; evaluations of alternatives; purchase; and post-purchase behavior.
Need recognition takes place when one is faced with a discrepancy between an actual and the desired condition for instance when one has financial need. The consumer searches both internally and externally for information to assist him/her make a purchase to satisfy the need. An internal information search entails utilizing ones’ memory, particularly past experiences with the bank service.
An external search for information entails seeking information outside the environment. The consumer will then proceed to weigh up different alternatives of product/services available to choose the most appropriate to his/her needs (Perreau, 2013, p. 28). Then advance to the actual purchase itself. The consumer will then evaluate the satisfactoriness with his original or initial needs (Perreau, 2013, p. 29). The market for banking institution will be segmented using both geographic and demographic bases as follows: Geographic segmentation Population density: urban, rural and suburban Regions: National, neighborhood country Demographic segmentation Age: +18 years Gender: male and female Nationality: diverse nationalities Income: high-income earners, middle income, low income Family life cycle: young singles, newly married, married couples, full nest, married no kid, older singles, and empty nesters. Social class: lower class, middle class and upper class Targeting The banking institution will target consumers aged 35 years and above in both urban and suburban areas.
The target will also have the following demographic characteristics: Gender: male and female Nationality: diverse nationalities Income: both high income and middle-income earners Family life cycle: full nesters and empty nesters. Social class: middle class and upper class. Differentiated marketing Differentiated marketing is a marketing strategy where a company target many market segments with offers specially designed for each segment.
Thereby the company may have a higher sale and thus a stronger position within each market segment. However, differentiated marketing also means increased costs of doing business due to the separate marketing plans for each segment. Perceptual mapping Perceptual mapping assists banking institutions to know how their brands and service appear to the consumer as compared to the competitor’ s product and services (Perreau, 2013, p. 29) The imagined bank compares well with its competitors in the minds of the consumers as seen in the table below.
Its competitive advantage over its closest competitor (Competitor A) is innovation and technology. It also has the same consumers rating on products diversity as competitor A.
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