The choices we make - understand this and you could make millions!
Whenever we develop marketing strategies for a client's business, we look very closely at the choice influences on the target market. That is, why do people buy from the businesses they do.
This afternoon my son and I went to a computer store and purchased a CD labeling package. From there we bought lunch from a takeaway joint, drove to the beach and sat on a bench and ate lunch.
My son is only 10, but I try and get him to understand business when there is a lesson to be learnt. My children call them "One of dad's business lessons."
Today we talked about what influenced our decisions.
The computer store was about 20 km away from my home. I passed probably four- (4) computer stores on the way.
Taking a look at our influences for going there, my initial reaction was to say I had no idea why I chose that store.
But on reflection, there were significant influencing factors at play.
Here are my major choice influences on selecting the computer store:
# 1: I knew the computer store had what I was after. I was a previous customer and had seen the sort of product I wanted there before.
# 2: I knew where the computer store was.
# 3: I knew the computer store had plenty of parking.
# 4: I perceived a reduced level of risk in the purchase. The store is part of a national brand. Because of this, I perceived that if the product was broken or didn't do what it said it would, I would get a refund without any hassle.
(An important point here is that whether the business actually would have refunded me is beside the point. My perception was the thing influencing my buying behaviour.)
Let's take a closer look at my choices
Previous customer - the fact that I was a previous customer of this business made it HUGELY more likely to deal with the business again.
I knew they had what I wanted. And I also knew the store offered a range of similar products. This gave me choice, which gave me options.
I felt more comfortable knowing I would have a choice of product and would be able to select the best solution for me.
Plenty of parking - I could say this is about convenience, but I'd be lying. It's about me being lazy! I knew that at this store I would only have to walk 50 metres, as opposed to walking 500. (That's real lazy I know!)
Less risky - perceived risk is usually a major component of any purchase.
And why did I choose the software I did?
There were three- (3) products to choose from. I selected the one I did because it had the complete package - software, labels, label applicator.
On some separate labels I was considering, the packaging said "Compatible with XYZ software."
My assumption was that was all the software was compatible with, which then severely limited my choice of software. So I selected the one that had the complete package, safe in the knowledge that everything was perfectly compatible (less risk again).
Another consideration was that I had seen the brand I purchased during a web search. This consolidated in my mind the quality of the brand as a worldwide company.
What about advertising?
I haven't mentioned advertising as a choice influence, but I have little doubt it did make an impact. The store I used advertises relentlessly and is very well branded. I can't think of, or remember, any advertising from a local computer store.
The specific software wasn't advertised, but the positioning of the store as a store with a huge range of stock is relevant and a major consideration.
Terrible service didn't matter
Have I received great service from this store in the past? Nope. In fact, I'd class the service as awful. Absolutely terrible in fact.
Today was no exception. No staff to answer any questions. Unanswered phones (3 of them in fact - all kept ringing).
And a 15 minute wait to get to the checkout because there was so many customers buying so much stuff!
So, nope. The level of service wasn't an issue.
That's all very interesting Brendon, but what does all that mean for my business?
The reason people buy from certain suppliers is a result of many influences. Our job as marketers is to identify what influences the people who are our target market.
What influences their buying decisions?
It's easy to find out.
If I had a computer store, I'd take a look at everything my competition does.
I'd research the market as much as possible.
I'd survey a whole bunch of people who are my target market.
Then I'd develop my marketing strategy around that.
For example, if I owned a computer store and all of research indicated exactly what I said above, then I'd market the business by:
Advertising/Point of Sale material/Brochures/Etc - all focused on the things that influence your market:
- huge range
- convenience - position and parking
- incentives for previous customers to return
- everything guaranteed 100%
Then I'd suggest some strategies to gain an edge over the competition:
- web site
- in-store advice (maybe even a searchable database of products, with heaps of product information)
- great service and friendly staff
That's a great start for any business. Survey people and find out why they choose the businesses they do. Survey your competitors customers and find out why they use that business.
It's no good marketing your business on the basis of great service if that doesn't influence your target market.
And then we move on to the influences of buying.........but that's a whole different ball game. And a completely different article!
Brendon Sinclair
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