WEBVTT 1 00:00:00.870 --> 00:00:04.140 Hello and welcome to the video lecture 2 00:00:04.140 --> 00:00:07.110 on customers and competitors. 3 00:00:07.110 --> 00:00:10.380 So we're gonna talk about two important groups 4 00:00:10.380 --> 00:00:11.970 that you will need to consider 5 00:00:11.970 --> 00:00:14.193 as you work on your marketing plan. 6 00:00:17.400 --> 00:00:18.840 So we're gonna talk about those two, 7 00:00:18.840 --> 00:00:21.213 first customers and competitors. 8 00:00:26.070 --> 00:00:28.290 And when we think about customers, 9 00:00:28.290 --> 00:00:31.620 there's two main types that we think about. 10 00:00:31.620 --> 00:00:36.620 Are you selling directly to the consumer 11 00:00:37.650 --> 00:00:42.650 or the customer, the B2C business to consumer model? 12 00:00:43.920 --> 00:00:46.890 Or are you selling to another business 13 00:00:46.890 --> 00:00:49.080 that will then take what you sell 14 00:00:49.080 --> 00:00:51.960 and transform it in some way? 15 00:00:51.960 --> 00:00:54.000 And when we talk about place, 16 00:00:54.000 --> 00:00:56.763 we'll go into a lot more depth here as well. 17 00:01:00.000 --> 00:01:03.660 So let's start with assuming that you are selling 18 00:01:03.660 --> 00:01:06.750 to the final consumer. 19 00:01:06.750 --> 00:01:09.720 It's important that you know about them. 20 00:01:09.720 --> 00:01:12.690 You want to know who they are and what they buy. 21 00:01:12.690 --> 00:01:14.520 We also wanna know a great deal 22 00:01:14.520 --> 00:01:18.183 about how do they buy and why they buy. 23 00:01:21.960 --> 00:01:26.760 So we'll walk through the purchase decision process, 24 00:01:26.760 --> 00:01:30.123 pre-purchase, purchase, and then post-purchase. 25 00:01:33.030 --> 00:01:35.940 So these are the five stages 26 00:01:35.940 --> 00:01:40.940 where they recognize they have a problem, a need, a want. 27 00:01:42.360 --> 00:01:44.040 They do an information search, 28 00:01:44.040 --> 00:01:46.230 they think about what are the options, 29 00:01:46.230 --> 00:01:48.430 they buy it and then they evaluate 30 00:01:49.560 --> 00:01:52.383 are they happy and would they buy it again. 31 00:01:54.780 --> 00:01:59.340 So, problem recognition starts with something 32 00:01:59.340 --> 00:02:01.920 that you want or you need. 33 00:02:01.920 --> 00:02:06.570 You might be hungry, your phone got destroyed, 34 00:02:06.570 --> 00:02:10.680 you need a new piece of clothing. 35 00:02:10.680 --> 00:02:12.420 Many options here. 36 00:02:12.420 --> 00:02:15.540 And think about what is the problem 37 00:02:15.540 --> 00:02:20.540 that your product or service will be addressing. 38 00:02:20.580 --> 00:02:23.910 It might be my, I need to move, 39 00:02:23.910 --> 00:02:27.000 or my house is very dirty 40 00:02:27.000 --> 00:02:31.203 and I need this service as well. 41 00:02:33.870 --> 00:02:36.303 So you do an information search. 42 00:02:37.200 --> 00:02:38.910 You may start internally, 43 00:02:38.910 --> 00:02:42.300 what did I buy before the last time? 44 00:02:42.300 --> 00:02:43.133 What was it? 45 00:02:43.133 --> 00:02:45.243 And did I like it or not? 46 00:02:46.230 --> 00:02:48.720 And if not, or in addition, 47 00:02:48.720 --> 00:02:51.240 you may also look externally. 48 00:02:51.240 --> 00:02:53.370 You may ask your friends, 49 00:02:53.370 --> 00:02:54.870 you may do a search online, 50 00:02:54.870 --> 00:02:57.120 you may think about advertising. 51 00:02:57.120 --> 00:02:58.980 And then that's going to yield 52 00:02:58.980 --> 00:03:00.510 the brand awareness set. 53 00:03:00.510 --> 00:03:03.090 What are all the options out there 54 00:03:03.090 --> 00:03:05.880 that you know about that could help solve 55 00:03:05.880 --> 00:03:10.443 this need or want or solve the problem? 56 00:03:12.540 --> 00:03:16.980 And note that if they're not aware of you, 57 00:03:16.980 --> 00:03:19.230 if they don't know that you exist, 58 00:03:19.230 --> 00:03:21.660 clearly they can't buy it. 59 00:03:21.660 --> 00:03:24.990 So you want to be in their brand awareness set 60 00:03:24.990 --> 00:03:29.990 and then they start to choose from the various alternatives, 61 00:03:30.480 --> 00:03:33.573 and hopefully choose what you have to offer. 62 00:03:38.160 --> 00:03:40.110 So things that you can think about 63 00:03:40.110 --> 00:03:44.100 as far as the brand go, their objective criteria 64 00:03:44.100 --> 00:03:46.500 that it's food, something like nutrition, 65 00:03:46.500 --> 00:03:51.060 it's shape or size, it's color, things like that. 66 00:03:51.060 --> 00:03:53.910 Also more subjective, is it fashionable? 67 00:03:53.910 --> 00:03:56.520 Is it prestigious? 68 00:03:56.520 --> 00:03:59.070 Then again, if they're not aware of you, 69 00:03:59.070 --> 00:04:00.693 they're not gonna consider you. 70 00:04:02.910 --> 00:04:06.000 So there's an important model here 71 00:04:06.000 --> 00:04:10.770 that thinks about what kind of attributes does a good have, 72 00:04:10.770 --> 00:04:13.410 and there are three main types here. 73 00:04:13.410 --> 00:04:16.470 First is search attributes, 74 00:04:16.470 --> 00:04:19.830 where you can tell just by looking at it. 75 00:04:19.830 --> 00:04:21.540 Is it a red bell pepper? 76 00:04:21.540 --> 00:04:24.183 Is it a large TV? 77 00:04:25.260 --> 00:04:28.620 Is it an SUV versus a sports car? 78 00:04:28.620 --> 00:04:30.270 Things like that. 79 00:04:30.270 --> 00:04:34.140 Next are experience goods where you must try it 80 00:04:34.140 --> 00:04:36.900 and sort of consume it and experience it, 81 00:04:36.900 --> 00:04:39.990 which might be a tart apple, a crisp apple, 82 00:04:39.990 --> 00:04:43.503 a fast car, a fast computer. 83 00:04:47.940 --> 00:04:50.430 But maybe the most interesting type 84 00:04:50.430 --> 00:04:52.230 are so-called credence attributes, 85 00:04:52.230 --> 00:04:55.890 so this comes from the same word as credibility. 86 00:04:55.890 --> 00:04:58.950 And in this case, it would be very hard 87 00:04:58.950 --> 00:05:02.700 for the consumer to know whether these claims 88 00:05:02.700 --> 00:05:05.673 or whether these attributes are true or not. 89 00:05:06.570 --> 00:05:08.700 And a lot of attributes 90 00:05:08.700 --> 00:05:13.080 around sustainability are credence attributes. 91 00:05:13.080 --> 00:05:17.850 So in food, things like certified organic, 92 00:05:17.850 --> 00:05:19.500 if it's grown organically, 93 00:05:19.500 --> 00:05:23.762 if it's grown locally, if it's fair trade, 94 00:05:23.762 --> 00:05:26.740 so which is a program 95 00:05:28.984 --> 00:05:32.467 where they import things like coffee and chocolate 96 00:05:33.780 --> 00:05:36.510 and aim to give a fair price 97 00:05:36.510 --> 00:05:40.383 to the farmers who grew it. 98 00:05:41.520 --> 00:05:45.990 But in all those cases, it's not really reasonable 99 00:05:45.990 --> 00:05:49.080 or realistic for the consumer 100 00:05:49.080 --> 00:05:51.390 to know whether it is organic, 101 00:05:51.390 --> 00:05:54.240 that you can't just look at it. 102 00:05:54.240 --> 00:05:56.040 You can't just try it, 103 00:05:56.040 --> 00:05:58.350 but you sort of have to take their word for it. 104 00:05:58.350 --> 00:06:00.660 And in many cases like this, 105 00:06:00.660 --> 00:06:04.620 there are third party verification processes, 106 00:06:04.620 --> 00:06:09.620 such as certified organic where someone will come 107 00:06:10.740 --> 00:06:13.650 and inspect your farm and look at how you do things, 108 00:06:13.650 --> 00:06:16.140 and if you meet all the criteria, 109 00:06:16.140 --> 00:06:19.020 then you get to label your food organic, 110 00:06:19.020 --> 00:06:22.083 and there are many other examples of this. 111 00:06:25.740 --> 00:06:30.480 So hopefully your good or service is in their mind. 112 00:06:30.480 --> 00:06:32.040 That's what they choose. 113 00:06:32.040 --> 00:06:36.570 They buy it, they consume it in some sense. 114 00:06:36.570 --> 00:06:40.080 If it's a service, they have it done. 115 00:06:40.080 --> 00:06:42.000 They have their car detailed, 116 00:06:42.000 --> 00:06:44.730 or have their house cleaned, 117 00:06:44.730 --> 00:06:48.780 and then they compare it with their expectations, 118 00:06:48.780 --> 00:06:52.080 and decide are they going to buy it again. 119 00:06:52.080 --> 00:06:53.880 So that's the end of part one. 120 00:06:53.880 --> 00:06:55.533 Please go to part two. Thanks.