Product Lifecycle, Brand Segmentation and Consumer Behaviour

What is consumer behaviour?

The study of the processes involved when individuals select, purchase, use and dispose of products services and ideas or experiences satisfy needs and desires.

Maslow’s Hierarchy of Needs

Physiological needs; Fundamentals of survival.

Safety needs; Protection of the unpredictable happening in life.

Social needs; We need social experience and desire products and services that facilitate social exchange.

Esteem and Status; Striving to achieve a high standing in relation to other people.

Self-Actualisation needs; The desire for self-fulfilment in achieving whatever someone can.

Diverse & Changing Markets

• Most fashion marketers try to attract several market segments at once
• Consumer buying habits don’t remain the same they are affected by economic and social conditions 

Segmentation

Market segmentation is a way of analysing a market by categorising their specific characteristics;

• Demographics - age, gender, income, ethics, education, lifestyle 
• Psychographics- attitudes, interests, opinions
• Geographics- where people live
• Behaviouristic/usage -  knoweldge, attitudes, use or response to a product, loyalty to a brand
• Geo-demographic - hybrid segmentation, financial means, tastes, preferences, lifestyle and consumption habits
• Purchase Benefits - benefits that consumers desire in a product
• Purchase occasion- for a particular occasion or event

Targeting

Marketers evaluate each potential segment and decide upon groups of customers they will invest marketing resources; selected groups are known as target markets. 

Brand Positioning

The conceptual pace you want to own in the target consumers mind - the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximise customers relevancy and competitive distinctiveness, in maximising brand value. 

Consider; 

• What does the brand community currently believe about or value in the brand?
• What might the brand community believe or value about the brand in the future?
• What does the organisation currently claim about the brand?
• What would the organisation like the brand to become down the road?

What is market mapping?

The market map illustrates the ranges of ‘positions’ that a product can take in a market based on two dimensions that are important to customers.

Potential examples; price, quality, volume, necessity/luxury, simple/complex, light/heavy.

Product Life Cycle

The ongoing introduction, rise, peak, decline and obsolescent in popularity of specific styles or shapes. All styles that come into fashion rotate through the fashion cycle.

Introduction: first stage of fashion cycle, new styles, colours, textures and fabrics. The new style may be accepted by fashion leaders, promotional activities are used to promote the style and they are produced in small quantities at high prices. Retail buyers purchase limited numbers to see if the style will sell. 

Growth: second stage of cycle, consumer interest grows and fashion becomes readily available. Mass production brings down price of the fashion resulting in more sales. Styles are manufactured in less expensive materials and in lower quality construction than the original style. Promotional efforts are used to heighten awareness and retail buyers order items in quantity. 

Maturity: third stage of the cycle and the style is at its height of popularity, the fashion is demanded by almost everyone because it is now within the price range of most consumers and is mass produced in many variations. Each retailer tries to persuade customers that its version of the style is best. 

Decline: fourth stage, market is saturated and popularity decreases, the fashion is overused and becomes dull and boring. As the fashion decreases in popularity, retailers mark down their prices and promotions centre around sales and clearance.

Obsolescence: fifth stage, style is rejected is undesirable at any price and no longer worn or produced, ends as a fashion. 

(Product extension can be used to avoid the obsolescence stage during maturity or decline)

Brand Extension: a medium to long term plan for lengthening a products life cycle. Examples include; redesigning the product, adding a new feature, changing the packaging and advertising to appeal to a new market segment or providing a USP. (However, extension strategies can sometimes slow down sales for other products or completely ruin the brand)