NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Marketing Management

Internal Assignment Applicable for December 2020 Examination

“Yuva” is a fitness band catering to Indian youth in lower price segment. There is a vast market that
is health conscious and wants the latest tech in wearable device category. There are currently two
fitness band that is being sold by the company.
Given below are their prices.

Yuva Basic Rupees 899/-

Yuva Pro Rupees 1199/-

The product quality is good given the price range. It has all fitness feature supported by a colourful
design. It has a bigger display as compared to their competitors. The company has purposely kept
the display bigger for the youth audience as they want the feel of a smart watch at the price of
fitness band.
The company has a plan to sell only through online platform. The product is available on major
ecommerce platform as well as on the company’s own website. It has just been 15 days that the
product is launched but it doesn’t have any demand from consumers. There is no problem with the
product but there are no promotions done by the company. You have been hired as a Marketing
head of the brand Yuva.

1. Suggest various types of segmentation for the brand Yuva.

Answer: Market segmentation is defined as dividing a market into different groups of buyers who
have different behaviours, needs, characteristics and who might require different marketing
strategies or mixes. A company identifies different ways to segment the market and develops profiles
according to the different market segments. Buyers in any market differ in their wants, resources,
locations, buying attitudes and practices. Through market segmentation, companies divide large or
diverse markets into smaller segments that can be reached more efficiently and effectively with
products and services that match their unique needs.

Types of Customer Segmentation Parameters Used

Demographic Segmentation Based on gender, age, occupation, marital status, income,
religion, ethnicity etc.
Geographic Segmentation Based on country, state, or city of residence, neighbourhood,
regions, and climate. Local businesses may even segment by
specific towns or counties
 Techno graphic Segmentation Based on preferred technologies, software, and mobile devices
and media.
Behavioural Segmentation Based on actions or inactions, spending/consumption habits,
feature use, loyalty status, usage rate, benefits, session
frequency, browsing history, average order value, etc
Psychographic Segmentation Based on personal attitudes, values, interests, or personality
traits and lifestyle

Features of useful and successful market segments:-

 Measurable: - The size, purchasing power, and profiles of the segments can be measured.
 Differentiable: - The segments are distinguishable and respond differently to different marketing
mix elements and programs. If men and women respond similarly to marketing efforts for soft
drinks, they do not constitute separate segments.
 Actionable: - Effective programs can be designed for attracting and serving the segments. For
example, although one small airline identified seven market segments, their staffs were too small
to develop separate marketing programs for each segment.
 Accessible: - The market segments can be effectively reached and served.
 Substantial: - A segment should be the largest possible homogeneous group worth pursuing with
a tailored marketing program. The market segments are large or profitable enough to serve. It
would not work, for example, for an automobile manufacturer to develop cars especially for
people whose height is greater than seven feet.

Benefits of Market Segmentation:-

 Efficient Money Utilization: - After all, your targeted marketing is going to allow for better returns
on investment, and you’ll waste less money on marketing that reaches the wrong audience.
 Quality Lead Generation: - If marketing is more targeted, the quality of leads become higher and
higher. Leads will start noticing the company brand.
 More effective marketing: - By better recognizing the needs of the customers, we can identify
more effective tactics for reaching them and improving their interactions and experience with our
business.
 Differentiate your brand: - Good market segmentation helps us to reach the correct audience and
allow our customers to see the true value of our brand via marketing that speaks to them and in
doing so differentiates our brand from our competitors.
 Enhancement of Customer Retention Rate: - By identifying your customers by their needs, you
can put out marketing that offers irresistible reasons for a return visit. This is proven to
increase customer retention and lifetime value.
 Explore the unexplored markets: - Good market segmentation helps to recognize areas of the
market you’d not considered before. This will lead to the development of new products that are
aimed specifically towards these markets.
 More focus: - Good customer segmentation will allow your business to focus every element of its
activity to better reach those that it serves. Marketing becomes more focused on the customer’s
needs. Also the market research and development will focus on meeting those needs, and
 spending will be focused on achieving these, and not wasted on mistargeted marketing and
planning. Everything becomes better suited to giving customers what they need which will
improve the business.

Below is the various segmentation that we can use for brand Yuva:-

https://www.segmentationstudyguide.com/understanding-market-segmentation/market-
segmentation-examples/market-segmentation-example-fitness-centers/

https://www.glofox.com/blog/how-market-segmentation-can-help-grow-your-fitness-business/

https://business.virtuagym.com/blog/tap-into-new-market-segments-for-your-gym/

https://www.bplans.com/fitness-equipment-business-plan/market-analysis-summary/

The STP process (segmentation, targeting and positioning) is undertaken by marketers in order to
have a better understanding of consumer needs so that a more effective marketing strategy can be
developed. In this exercise, a total of six different market segments for the fitness centre market have
been provided, as shown in the following diagram:

QUICK OVERVIEW OF EACH MARKET SEGMENT

 Making friends: - The “making friends” market segment sees fitness centres as an opportunity to
mix with people with similar goals and lifestyles and to make new friends.
 Losing it: - The next market segment is “losing it”, which refers to the goal of losing weight.
 Taking shape: - The “taking shape” market segment consists of consumers who are primarily
interested in improving the look of their body.
 Peak performers: -Consumers in the “peak performers” segment are highly disciplined and self-
motivated individuals when it comes to their health and fitness. They are highly focused upon
achieving their personal best.
 Health requirements: - Consumers in this market segment attend a fitness centre because they
are trying to improve their health, strength, or because of “doctor’s orders”.
 Sports focus :- This segment are those consumers who are heavily involved in sport and use a
fitness centre to help improve their fitness in order to participate in their chosen sport.
 Peak Performers
Taking Shape

Health Requirements
Losing It

Market Segments for Sport Focus

Brand Yuva
Making Friends
 2. How will you promote the brand Yuva online? Suggest minimum five online platforms through
which you will promote the brand and increase the sale.
Answer:

https://www.precor.com/en-us/resources/5-online-fitness-communities-to-keep-you-motivated

https://www.ukessays.com/essays/marketing/industry-and-market-overview-of-fitness-clubs-
marketing-essay.php

https://www.appier.com/blog/market-segmentation/

3.
a. Explain any five factors that will influence the consumer behaviour for the purchase of
Yuva Fitness Band.

Answer:

chapter 3
https://clootrack.com/knowledge_base/major-factors-influencing-consumer-
behavior/

https://www.yumpu.com/en/document/read/5187206/consumer-behaviour-in-
fitness-centres-a-typology-of-customers

https://www.slideshare.net/mohamedazharabousally/consumer-behavior-
analyzed-for-fitness-of-fitness-centres-ecb-slim

https://www.theseus.fi/bitstream/handle/10024/70466/Nagarkoti_Bishal.pdf

Major Factors Influencing Consumer Behavior

1. Psychological Factors
2. Social Factors
3. Cultural Factors
4. Personal Factors
5. Economic Factors

1. Psychological (motivation, perception, learning, beliefs and attitudes)

 2. Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle,
personality and self concept)
3. Social (reference groups, family, roles and status)
4. Cultural (culture, subculture, social class system).

Psychological Factors
Human psychology is a major determinant of consumer behaviour. These factors are difficult to
measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:

 Motivation
When a person is motivated enough, it influences the buying behaviour of the person. A person has
many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization
needs. Out of all these needs, the basic needs and security needs take a position above all other
needs. Hence basic needs and security needs have the power to motivate a consumer to buy products
and services.
  Perception
Consumer perception is a major factor that influences consumer behaviour. Customer perception is a
process where a customer collects information about a product and interprets the information to
make a meaningful image about a particular product. When a customer sees advertisements,
promotions, customer reviews social media feedback, etc. relating to a product, they develop an
impression about the product. Hence consumer perception becomes a great influence buying
decision of consumers. Learning can be either conditional or cognitive.

 Learning
When a person buys a product, he/she gets to learn something more about the product. Learning
comes over a period of time through experience. A consumer’s learning depends on skills and
knowledge. While a skill can be gained through practice, knowledge can be acquired only through
experience. In conditional learning the consumer is exposed to a situation repeatedly, thereby making
a consumer to develop a response towards it. Whereas in cognitive learning, the consumer will apply
his knowledge and skills to find satisfaction and a solution from the product that he buys.

 Attitudes and Beliefs

Consumers have certain attitude and beliefs which influence the buying decisions of a consumer.
Based on this attitude, the consumer behaves in a particular way towards a product. This attitude
plays a significant role in defining the brand image of a product. Hence, the marketers try hard to
understand the attitude of a consumer to design their marketing campaigns

2. Social Factors

Humans are social beings and they live around many people who influence their buying behaviour.
Human try to imitate other humans and also wish to be socially accepted in the society. Hence their
buying behaviour is influenced by other people around them. These factors are considered as social
factors. Some of the social factors are:

 Family
Family plays a significant role in shaping the buying behaviour of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the same
products even when they grow up.

 Reference Groups
Reference group is a group of people with whom a person associates himself. Generally, all the
people in the reference group have common buying behaviour and influence each other.

 Roles and status

A person is influenced by the role that he holds in the society. If a person is in a high position, his
buying behaviour will be influenced largely by his status. A person who is a Chief Executive Officer in a
company will buy according to his status while a staff or an employee of the same company will have
different buying pattern.

Cultural factors
A group of people are associated with a set of values and ideologies that belong to a particular
community. When a person comes from a particular community, his/her behaviour is highly
influenced by the culture relating to that particular community. Some of the cultural factors are:
 Culture
Cultural Factors have strong influence on consumer buyer behaviour. Cultural Factors include the
basic values, needs, wants, preferences, perceptions, and behaviours that are observed and learned
by a consumer from their near family members and other important people around them.

 Subculture
Within a cultural group, there exist many subcultures. These sub cultural groups share the same set of
beliefs and values. Subcultures can consist of people from different religion, caste, geographies and
nationalities. These subcultures by itself form a customer segment.

 Social Class
Each and every society across the globe has form of social class. The social class is not just determined
by the income, but also other factors such as the occupation, family background, and education and
residence location. Social class is important to predict the consumer behaviour.

Personal Factors

Factors that are personal to the consumers influence their buying behaviour. These personal factors
differ from person to person, thereby producing different perceptions and consumer behaviour.
Some of the personal factors are:
 Age
Age is a major factor that influences buying behaviour. The buying choices of youth differ from that of
middle-aged people. Elderly people have a totally different buying behaviour. Teenagers will be more
interested in buying colourful clothes and beauty products. Middle-aged are focused on house,
property and vehicle for the family.

 Income
Income has the ability to influence the buying behaviour of a person. Higher income gives higher
purchasing power to consumers. When a consumer has higher disposable income, it gives more
opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-
income group consumers spend most of their income on basic needs such as groceries and clothes.

 Occupation
Occupation of a consumer influences the buying behaviour. A person tends to buy things that are
appropriate to this/her profession. For example, a doctor would buy clothes according to this
profession while a professor will have different buying pattern.

 Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behaviour is
highly influenced by the lifestyle of a consumer. For example when a consumer leads a healthy
lifestyle, then the products he buys will relate to healthy alternatives to junk food.

Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a country or a
market. When a nation is prosperous, the economy is strong, which leads to the greater money
supply in the market and higher purchasing power for consumers. When consumers experience a
positive economic environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower
purchasing power. Economic factors bear a significant influence on the buying decision of a
consumer. Some of the important economic factors are:

 Personal Income
When a person has a higher disposable income, the purchasing power increases simultaneously.
Disposable income refers to the money that is left after spending towards the basic needs of a
person. When there is an increase in disposable income, it leads to higher expenditure on various
items. But when the disposable income reduces, parallelly the spending on multiple items also
reduced.

 Family Income
Family income is the total income from all the members of a family. When more people are earning in
the family, there is more income available for shopping basic needs and luxuries. Higher family
income influences the people in the family to buy more. When there is a surplus income available for
the family, the tendency is to buy more luxury items which otherwise a person might not have been
able to buy.

 Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher spending. Sellers are
making it easy for the consumers to avail credit in the form of credit cards, easy instalments, bank
loans, hire purchase, and many such other credit options. When there is higher credit available to
consumers, the purchase of comfort and luxury items increases.

 Liquid Assets
Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid assets are
those assets, which can be converted into cash very easily. Cash in hand, bank savings and securities
are some examples of liquid assets. When a consumer has higher liquid assets, it gives him more
confidence to buy luxury goods.

 Savings
A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income.
If a consumer decided to save more, then his expenditure on buying reduces. Whereas if a consumer
is interested in saving more, then most of his income will go towards buying products.

b. Explain various stages that a customer will go through in purchasing decision of Yuva
fitness band.

Answer:

Page 91

https://tallyfy.com/buying-process/
 https://www.iedunote.com/buyer-decision-process

https://www.professionalacademy.com/blogs-and-advice/marketing-
theories---explaining-the-consumer-decision-making-process

Consumers go through 5 stages in deciding to purchase any goods or services.5 Stages of the
consumer decision process (buyer decision process) are:

1. Problem Recognition or Need Recognition.

2. Information Search.
3. Evaluation of Alternatives.
4. Purchase Decision.
5. Post-Purchase Evaluation

Need Recognition
The buying process starts with need recognition—the buyer recognizes a problem or need. The need
can be triggered by internal stimuli when one of the person’s nor- mal needs—for example, hunger or
thirst—rises to a level high enough to become a drive. A need can also be triggered by external
stimuli. For example, an advertisement or a discussion with a friend might get you thinking about
buying a new car. At this stage, the marketer should research consumers to find out what kinds of
needs or problems arise, what brought them about, and how they led the consumer to this particular
product.

Information Search
An interested consumer may or may not search for more information. If the consumer’s drive is
strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer
may store the need in memory or undertake an information search related to the need. For example,
once you’ve decided you need a new car, at the least, you will probably pay more attention to car ads,
cars owned by friends, and car conversations. Or you may actively search online, talk with friends, and
gather in- formation in other ways.
Consumers can obtain information from any of several sources. These include personal sources
(family, friends, neighbors, acquaintances), commercial sources (advertising, salespeople, dealer and
manufacturer web and mobile sites, packaging, displays), public sources (mass media, consumer
rating organizations, social media, online searches and peer reviews), and experiential sources
(examining and using the product). The relative influence of these information sources varies with the
product and the buyer.
Traditionally, consumers have received the most information about a product from commercial
sources—those controlled by the marketer. The most effective sources, however, tend to be
personal. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate
products for the buyer. Few advertising campaigns can be as effective as a next-door neighbour
leaning over the fence and raving about a wonderful experience with a product you are considering.
Increasingly, that “neighbour’s fence” is a digital one. Today, consumers share product opinions,
images, and experiences freely across social media. And buyers can find an abundance of user-
generated reviews along- side the products they are considering at sites ranging from Amazon.com or
BestBuy.com to Yelp, TripAdvisor, and Epicurious. For example, Yelp’s goal is “to connect people with
great local businesses” by maintaining a huge, searchable collection of candid reviews from people
who’ve used those businesses. Over the past decade, Yelpers have written
 As more information is obtained, the consumer’s awareness and knowledge
of the available brands and features increase. In your car information search,
you may learn about several brands that are available. The information might
also help you to drop certain brands from consideration. A company must
design its marketing mix to make prospects aware of and knowledgeable about
its brand. It should carefully identify consumers’ sources of information and the
importance of each source.

Evaluation of Alternatives

We have seen how consumers use information to arrive at a set of final brand choices. Next,
marketers need to know about alternative evaluation, that is, how consumers process information to
choose among alternative brands. Unfortunately, consumers do not use a simple and single
evaluation process in all buying situations. Instead, several evaluation processes are at work.
How consumers go about evaluating purchase alternatives depends on the individual consumer and
the specific buying situation. In some cases, consumers use careful calculations and logical thinking.
At other times, the same consumers do little or no evaluating. Instead, they buy on impulse and rely
on intuition. Sometimes consumers make buying decisions on their own; sometimes they turn to
friends, online reviews, or salespeople for buying advice.
Suppose you’ve narrowed your car choices to three brands. And suppose that you are primarily
interested in four attributes—price, style, operating economy, and performance. By this time, you’ve
probably formed beliefs about how each brand rates on each attribute. Clearly, if one car rated best
on all the attributes, the marketer could predict that you would choose it. However, the brands will
no doubt vary in appeal. You might base your buying decision mostly on one attribute, and your
choice would be easy to predict. If you wanted style above everything else, you would buy the car
that you think has the most style. But most buyers consider several attributes, each with different
importance. By knowing the importance that you assigned to each attribute, the marketer could
predict and affect your car choice more reliably.
Marketers should study buyers to find out how they actually evaluate brand alternatives. If marketers
know what evaluative processes go on, they can take steps to influence the buyer’s decision.

Purchase Decision
In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the
consumer’s purchase decision will be to buy the most preferred brand, but two factors can come
between the purchase intention and the purchase decision. The first factor is the attitudes of others.
If someone important to you thinks that you should buy the lowest-priced car, then the chances of
you buying a more expensive car are reduced.
The second factor is unexpected situational factors. The consumer may form a purchase intention
based on factors such as expected income, expected price, and expected product benefits. However,
unexpected events may change the purchase intention. For example, the economy might take a turn
for the worse, a close competitor might drop its price, or a friend might report being disappointed in
your preferred car. Thus, preferences and even purchase intentions do not always result in an actual
purchase choice.

Post purchase Behaviour

The marketer’s job does not end when the product is bought. After purchasing the product, the
consumer will either be satisfied or dissatisfied and will engage in post purchase behaviour of interest
to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The
answer lies in the relationship between the consumer’s expectations and the product’s perceived
performance. If the product falls short of expectations, the consumer is disappointed; if it meets
expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The
larger the negative gap between expectations and performance, the greater the consumer’s
dissatisfaction. This suggests that sellers should promise only what their brands can deliver so that
buyers are satisfied.
Almost all major purchases, however, result in cognitive dissonance, or discomfort caused by post
purchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand
and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves
compromise. So consumers feel uneasy about acquiring the drawbacks of the chosen brand and
about losing the benefits of the brands not purchased. Thus, consumers feel at least some post-
purchase dissonance for every purchase.
Why is it so important to satisfy the customer? Customer satisfaction is a key to building profitable
relationships with consumers—to keeping and growing consumers and reaping their customer
lifetime value. Satisfied customers buy a product again, talk favorably to others about the product,
pay less attention to competing brands and advertising, and buy other products from the company.
Many marketers go beyond merely meeting the expectations of customers—they aim to delight
customers

The 6 Stages of the Customer Buying

Process
When a customer is considering a purchase that is more expensive or requires some kind of monthly
commitment they will usually spend more time thinking about it. They may want to research different
options, talk to a friend or family member about it, and weigh the pros and cons of going through
with the sale.

In business, this process is often portrayed as a sales funnel with more and more people dropping off
as they move further into the funnel.

At each point during this process, the customer will go through a specific thought pattern. To help
your customer follow through with the sale, you must understand what their needs are at each point.

Let’s look at the six stages of the buying process below:

Problem Recognition

This is the most important step in the decision process because your customer has to realize they
need your product before a purchase can take ever place. This presents you with both the
opportunity and the challenge of identifying with your customer. The best strategy is to articulate
their problem in your marketing efforts.

With traditional marketing or PR, this can be done through advertising: having an ad that explains
what the customer’s problem is, and how the product or service can solve it.
 With any online business, on the other hand, the best way to influence the “problem recognition”
stage is through content marketing. With the right content, you could identify with your audience,
articulate their needs, and offer helpful resources and tools.

Information Search

Now the customer will begin searching for information to help them find the best solution to their
problem. Most people will immediately turn to friends, family members, and colleagues for
recommendations.

While you can’t really talk the above-mentioned friends or family members into endorsing your
product, there are several things you could do.

 Focusing on the Product – If your product is really good, people are going to start being your
brand advocates, and you won’t even have to pay them!
 Build Authority – This one’s pretty generic, and translates into regular marketing. It could mean
working on your company web presence, for example, so that it’s easy for your customers to find you
and learn more about your product.
 Reviews & Partnerships – Other than friends and family, there’s something else that’s
extremely helpful in influencing decision-making: the influencers. Establishing connections with
experts in your field (or bloggers, review websites, etc.) will help you stand out.

Evaluation of Alternatives

Although some people will come to a quick decision, most customers will not settle for the first
solution they find. They will evaluate several different options and the possible benefits or drawbacks
to each. And even if your company has the best product to meet their needs, they still may decide to
go with someone else.

So, the one thing you could do at this stage is to offer a lot more value than your competition &
communicate that with your customers. This can be easier in some industries (software, for example,
where you can add more powerful features), but hard in others (consumer goods. Who looks at the
brand of their toilet paper, anyway?)

Purchase Decision

Once the customer has explored their options they will make a decision about whether or not to
move forward with the purchase. Yes, even though they have reached the middle of the buying
process they could still choose to walk away.

At this point, customers need a sense of security. They also needed to be reminded of the problem
that brought them here in the first place.

And if a customer does decide to walk away this is the best point in the process to bring them back.
Depending on your industry, this could be a simple email reminder, for example (“hey, you were
interested in out software!”).
 Purchase

At this stage, you want to make it as easy as possible for your customers to buy from you. Does your
website load too slowly? Can they order from their phone just as easily as on a desktop? These are
questions you should consider.

The customer already decided that they want to do business with you – you don’t want to make it
hard for them. Let’s say if your payment processing software is being laggy, they might just decide to
ditch and go to your competitor!

Post-Purchase Evaluation

You may think you are in the clear now but your work doesn’t end after the customer makes their
purchase! Customers will evaluate their purchase based on previous expectations and decide
whether or not they are satisfied. If they’re not happy with your product, they’ll just never use it
again – and everyone knows that recurring customers are much better than those buying just once.

Or it could end up going even worse, with the customer asking for their money back.

Depending on how you handle this situation, the customer will react differently. If you put their
concerns at ease & even make them feel better, they’re much more likely to come back or even refer
their friends. Or, if you treat them wrong, you’re never going to see them (or their friends) again.

There are a couple of ways to work with this stage.

 Good Customer Service – being able to talk to your customers & help them use their product
can take you a long way.
 Follow-Up Emails, Survey – showing the customer that you care about their experience is a
pleasant experience on its own.
 Fair Treatment – sometimes, the product might just end up not being what the customer is
looking for. If you treat them with respect & offer a refund, they’re more likely to come back for a
different purchase. If you shut them down, they’re lost forever.