Notes consumer marketing

Notes consumer marketing

Session 1: Jobs-to-be-done

Mini Case: Milkshakes having a downfall.

• What would a marketer do to investigate? Possible reasons for a downfall in demand.
• Looking if there are competitors or alternatives on the market.
• Researching the customer satisfaction.
• Seeing if seasonality is in play.
• How the previous communication/ad was perceived with the target group.

i. Age: older people are less digital, so for this group printed ad would be

better.

ii. Geography: distributed in places that the product isn’t available.

e. Product availability: was it sold out a lot, machine broken, etc.

f. Product variability: maybe people want other flavours.

g. Product quality: were the ingredients changed that affected the taste.

• Trends: the trend could be to get as healthy as possible, and milkshakes don’t

fit this.

• Things people said on why they “hired” a milkshake, instead of an alternative:
• They “hire” the milkshake during a long drive in the morning to work.
• Milkshakes as an alternative for a gooey donut giving you sticky hands.

ii. Bagels are too hard and have to prepare them during driving.iii. Snicker bars are easy to eat but gone fast, and not enough to satisfy during the drive.

• Things you can optimize to meet expectations

a. Make straws shorter: takes them longer to finish

“Somewhere between 75 and 85 percent of all new products launched into the market don’t succeed financially. The reason is they don't target a job that people are trying to get done.”

Jobs-to-be-Done (JTBD) Framework

• Definition: A "job" is what an individual seeks to accomplish in a specific situation.

Consumers “hire” products to complete jobs, and once the task is done, they may switch to a different product or category that does the job better.

2. Key Aspects:

• Focus on the progress a person is trying to make. The product or product

category does not play a role in completing the customer job. Customers judge solutions by how well they get the job done. Solutions are always temporary as consumers switch product categories when another one does the job better.

• The circumstances of the job are more crucial than customer characteristics

or product attributes.

• Jobs involve not just functional aspects but also social and emotional

dimensions.

• Example: When people buy a body wash, they may not just want to clean themselves

(functional need) but also feel refreshed and luxurious (emotional and social needs).

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Latent Customer Needs

• Definition: Latent needs are unconscious or hard-to-express desires that are crucial in

purchase decisions, often more important than what consumers are consciously aware of.

• Example: A customer may choose a car brand not only for its fuel efficiency but also

for the social status it conveys, even if they don’t explicitly mention this reason.

Advantages of JTBD Logic

• Customer-Centric: Shifts the focus to the customer and their needs, rather than the

product.

• Competitor Awareness: Broadens the view to include real competitors, which may

come from outside the traditional product category.

• Predictive Power: Since the logic is solution-free, it can predict how consumer needs

will be met over time with different solutions.

Questions to Uncover Customer Jobs

1. To better understand the jobs consumers need help with, ask:

• What progress are they trying to achieve (functionally, socially, emotionally)?
• What are the circumstances of the struggle (who, when, where)?
• What obstacles are preventing them from making progress?
• Are they using imperfect solutions or workarounds?
• What does “quality” mean to them, and what trade-offs are they willing to

make?

• Understand the usage of the product (when, how, combined with other product?)

and why they choose a certain brand (family/friends, does the job or for looks?).

Key Takeaways of JTBD Framework

• Focus on the "why" behind what customers do to develop lasting products.
• Define success based on how well a product meets customer needs, not just on

solving surface-level problems.

• Identify the real customer problem before trying to offer a solution.

Session 2: Segmentation

Segmentation in Marketing

• Definition: Dividing the market into distinct subsets of customers who have similar

characteristics within their segment but differ from those in other segments.

2. Benefits for Firms:

• Identifying valuable customers (higher Customer Lifetime Value, CLV).
• More targeted promotions and marketing communications.

3. Benefits for Customers:

• Customized products and services.
• Personalized experiences.

4. Example: In the orange juice market, customers are segmented based on their

preference for sweetness and pulp. Some prefer no pulp, while others want a lot of 2 / 4

pulp, creating distinct market segments (customers are different between segments, but similar within).

Segmentation Bases

1. Who (Descriptors): Characteristics like demographics (age, gender).

• What (Behaviors): Customer behaviors, such as frequency of purchase or loyalty.
• Why (Motivations): The underlying reasons driving consumer choices, such as the

desire for health benefits or convenience.

• Example: In the dog food market, segmentation can be based on different needs,

such as healthy ingredients, specific dietary requirements, or food for different dog breeds.

Segmentation or Targeting Example: A company might discover two distinct customer groups in the skincare market— those focused on anti-aging and those looking for natural ingredients—and target marketing efforts accordingly.

• Segmentation (S): The process of discovering and profiling groups of customers with

similar needs and preferences.

• Targeting (T): Evaluating the attractiveness of each segment and focusing on the most

promising ones.

What to Watch Out for When Segmenting

• Ensure the segments are meaningful and distinct. E.g., A shoe brand separates

comfort-seeking buyers from fashion-forward ones, allowing clear targeting.

• Avoid over-segmenting, which can lead to too many small, unprofitable segments.

E.g., A coffee shop with too many tiny customer segments struggles to serve them profitably.

• Make sure the segmentation is actionable, allowing you to target and reach these

groups effectively. E.g., A fitness brand targets gym-goers and home workout fans with specific, relevant products and ads.

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Explain how Clayton Christensen’s Jobs-to-be-Done theory differs from traditional segmentation approaches that focus on demographics or product attributes.

Traditional segmentation focuses on dividing customers based on demographics, behaviors, or preferences to sell a product (brand-centered). The JTBD framework looks at why people need a product or service (customer-centered), focusing on the task or "job" they need done, which could involve any solution, not just a specific brand.

AIDA Funnel The AIDA model is a framework that describes the steps a consumer goes through when

interacting with a brand or product. It stands for:

1. Awareness: The consumer becomes aware of a product or service.

• Interest/consideration: The consumer shows interest by seeking more information or

engaging with the product.

• Desire/decision/conversion: The consumer starts to want the product or feels it

meets their needs.

4. Action: The consumer takes action, such as purchasing the product.

• Repurchase/Loyalty: After the initial purchase, the consumer returns for future

purchases and develops brand loyalty (not officially in the funnel).

Example: A customer sees an ad for a new Philips Avent baby product (Awareness), visits the website to read reviews (Interest), decides it could be beneficial for their baby (Desire), and finally purchases it online (Action) has a positive experience, and continues to buy other Philips Avent products, becoming a loyal customer (Repurchase/Loyalty).

Cross Model and Product Positioning The Cross Model can help marketers understand how products are perceived in terms of their utilitarian (practical) vs. ego- expressive (identity-driven) functions. This model aids in determining if there's an opportunity in the market based on how the product aligns with consumer needs.

1. Utilitarian Products: These products fulfill

practical, functional needs. Consumers choose them for their usefulness and

efficiency. Example: A washing machine is a

highly utilitarian product—it solves a practical problem and provides clear value in terms of function.

2. Ego-Expressive Products: These products

allow consumers to express their identity, personality, or status. The purchase is often driven by emotional or social motivations. Example: Luxury brands like Louis Vuitton or high-end sports cars often fall into this category. Consumers buy them not just for functionality but to express status or personality.

Crossing Over: Dual Perception (Utilitarian + Ego-Expressive)

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