Customer-oriented marketing

Customer-oriented marketing

Customer-oriented marketing is a type of marketing that takes place in the stores themselves: it aims to provoke an immediate purchase decision when the customer arrives close to the product concerned. The consumer of the product and the buyer may be different people. Example: the mother alone can buy 90% of the daily items for the family while the consumption will be divided among four different family members.

Customer-oriented marketing means that commodity suppliers focus marketing investments on the store instead of investing in traditional media. The other important criterion for its implementation is a more accurate understanding of customers and purchasing behaviour, made possible by the store's most developed information systems (e.g. data on purchases based on the customer card).

Commodity suppliers' investments in customer-oriented marketing are increasing by 21% per year and Procter & Gamble, for example, has invested (according to its accounting information) at least $500 million per year.

The following research results have directed consumer market investments towards customer-oriented marketing:

70% of brand selection is done in the store
68% of purchasing decisions are unplanned
5% of customers remain loyal to a single brand in a given product group

Categories

The starting point for customer-oriented marketing is always the buyer, i.e. the individual who makes purchases. This is why its measurement corresponds to a marketing stimulus that can affect the buyer in the store, based on an understanding of his purchasing behaviour.

Customer-oriented marketing can be divided into four traditional mixed marketing, product, price,
accessibility and marketing communication.

The product: size, shape, colour, material, packaging, messages on the packaging and visual identification.

Price: price discounts, batch offers, price communication and coupons

Accessibility (space): store concept, lighting, gondolas, shelf space and specific locations

Marketing communication (promotion): promotional packaging, store promotions, promotional communication, specific presentations, tv-shops, ground posters and advertising on carts and baskets

Information about purchasing behaviour

Information on buyer behaviour is obtained from three different methods of collecting information: observations, interviews and the cash register system.

Observations made in stores provide information on the behaviour of buyers when they buy a product. For example, the length of the purchasing process, what the customer noticed, what he/she received, what he/she studied, what he/she has already purchased and the purchasing habits that influence the process.

Interviews are used to determine the reasons for purchasing behaviour. The most frequently clarified issues are: product replacement, recognition of substitutes, values and behaviours, moods and motivational factors as well as lifestyle and social level.

The cash register system provides information on the date, time and products sold. In addition, using client cards and databases, purchase statements can be assigned to specific buyers.

This provides absolute information on what each buyer has bought and where. A more detailed description of the buyer's purchasing behaviour can be obtained by cross-checking the information provided by the collection methods mentioned above, in order to have a global view of the buyer (how,why, what and when)

Segmentation of buyers

By segmenting buyers, the market is divided between the most essential and measurable groups, i.e. segments based on information on purchasing behaviour. Thanks to the segmentation of buyers, it is easier to meet the needs of each segment. For example, price-sensitive buyers and traditional buyers differ significantly in their purchasing behaviour. Through segmentation, marketing measures can be targeted at the most profitable buyers.

Examples of buyer segmentations in different groups

Tesco
Finer Foods
Healthy
Convenience
Price Sensitive
Mainstream
Traditional Traditional
Social Shoppers

Wal-Mart
Brand Aspirationals
Price Value Shoppers
Trendy Quality Seekers
Sensitive Price Tributaries
One Stop Shoppers
Conscientious Objectors

Safeway
Value-Seeking
Variety-Seeking
Brand-Seeking
Simplicity-Seeking
Discovery-Seeking
Quality-Seeking