Product Lifecycles, Brand Segmentation and Consumer Behaviour

What is Consumer Behaviour?

The study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires. (Solomon et all, 2011).

Maslow's Hierarchy of Needs

• Self-actualisation needs: the desire for self-fulfilment in achieving whatever someone can.
• Esteem and Status: Striving to achieve a high standing in relation to other people.
• Social Needs: We need social experience and desire products and services that facilitate social exchange.
• Safety Needs: Protection from the unpredictable happening in life (e.g. accidents).
• Psychological Needs: The fundamental of survival. 

How does your own self-concept create influence behaviour?

Self Esteem- (Richins 1993; Kees et al, 2008)

Marketers use attractive models for a social comparison process where young female consumers compare themselves and feel inadequate against them.

• Most fashion markets try to attract several market segments at once. E.g. 'Gap' sells to men, women and children. 
• Consumer buying habits don’t remain the same. Changes in the economic or social conditions can affect the consumers choice. 

Segment a Market

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

Specific characteristics include:

• Demographics: are statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion and lifestyle.
• Psychographics: are studies of consumers based on social and psychological characteristics such as attitudes, interests and opinions.
• Geographics: are statistics about where people live.
• Behaviouristic/usage: are statistics about consumers based on their knowledge, attitudes, use or response to a product.
• Situation
• Geodemographic

Marketers may look at the purchase occasion for a product, the product benefits sought by consumers, or usage level and commitment towards a product:

• Purchase occasion: identifies the instance when a consumer might use a product ("after-five" or work attire)
• Product benefits: identifies the benefits that consumers desire in a fashion product or service (stain resistant or wrinkle free)
• Usage level and commitment: identifies how often they use a product and their loyalty to purchasing it (will you buy a replacement)
• Geodemographic segmentation: hybrid segmentation: You Are Where You Live (financial consumption habits)

Targeting

In which marketers evaluate each potential segment and decide upon which group of consumers they will invest marketing resources.

• Selected groups are known as target markets 
• How is technology making it easier for fashion firms to target potential consumers?

Brand Positioning Statement

Brand positioning is defined as the conceptual place you want to own in the target consumer's mind- the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximize customer relevancy and competitive distinctiveness, in maximizing brand value.

When doing research to inform a brand positioning project, you must be able to answer the following questions:

1. What does the brand community currently believe about or value in the brand?
2. What might the brand community believe or value about the brand in the future?
3. What does the organisation currently claim about the brand?
4. What would the organisation like the brand to become down the road?

Market Mapping

Low Price > High Price

Basic Quality > High Quality

Low Volume > High Volume

Necessity > Luxury

Light > Heavy

Simple > Complex

Unhealthy > Healthy

Low-Tech > High-Tech

Product Life Cycles 

Fashion cycle: The ongoing introduction, rise, peak, decline, and obsolescence in popularity of specific styles or shapes.

All styles that come into fashion rotate through the fashion life cycle.

Stage 1- Introduction 

• The first stage of the fashion cycle is when new styles, colours, textures and fabrics are introduced
• The new style may be accepted by a small number of people called fashion leaders
• Promotional activities include fashion shows and advertising in high fashion magazines
• Fashions are produced in small quantities at high prices
• Retail buyers purchase limited numbers to see if the style will be accepted

Stage 2- Growth (rise)

• The second stage of the fashion cycle when consumer interests grows and the fashion becomes more readily accepted by consumers
• Mass production brings down the price of the fashion, which results in more sales
• Styles are manufactured in less expensive materials and in lower quality construction than the original style
• Promotional efforts are increased in high fashion magazines to heighten consumer awareness
• Retail buyers order items in quantity 

Stage 3- Maturity (peak)

• The third stage of the fashion cycle during which a 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 the best 

Stage 4- Decline

• The fourth stage of the fashion cycle when the 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
• Promotions centre around major clearance or closeout sales of the fashion 

Stage 5- Obsolescence (rejection of a style)

• The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn and no longer produced
• Ends as an accepted fashion