APPLICATION OF CB

• Macro level-There is a collective influence of social

and economic conditions which also decides the
quality and standard of living

• Micro level-The study of CB involves understanding

consumers for the purpose of helping an organisation
accomplish its objectives

•
 Application of CB in production
 Satisfy customers wants and needs with available
resources
 Market opportunity analysis to identify unsatisfied
wants and relate them to trends and income
levels.
 Target market selection with unique market offerings
to them
 Market mix determination starting with what type of
product to be launched,its
features,packaging,warranties,service offerings
etc.

 Market mix continued
• The pricing awareness of the consumers are to be
understood and to decide the pricing policy,
discounted, premium or in relation to competition.
•
• Place ,where to offer,the channels of distributions, no.
of outlets etc
•
• Promotion regarding awareness,advertising and what
are the methods and budget to be allocated.
•
 CB and governmental
decisions.
 Governmental services-Government has to apply CB
to take care of the citizens amenities as well as to
understand the locations of public utility systems

 Consumer protection activities and regulative
practices,guidelines,rules and acts like MRTP
•
 CB AND MARKET
SEGMENTATION
Market segmentation consists of taking the total
heterogeneous market for a product and dividing it
into several submarkets or segments each of which
tends to be homogeneous in full significant aspects.

William J Stanton
 Types of market segments
 Territorial or graphic segmentation-Rural and urban
markets,district wise and state wise segmentation

 Demographic segmentation-Customers classified on
the basis of age,sex,educational level,income
level etc

 Socio psychological segmentation-Aggressiveness,
submissiveness, cautiousness and value
differences make differences in social classes and
their spending behavior.

 Segmentation continued
• Need oriented segmentation-based on the needs or
benefits a group seeks
•
• Volume segmentation-segmentation on the basis of
usage of products
•
• Qualitative segmentation-based on the repeat
purchases by the buyers
• Product segmentation-differences among products
that comprises markets.
• Life style segmentation-on the basis of mode of living
•

 Importance of market
segmentation
 Adjustment of product and marketing appeals -
opportunity to understand the nature of the market
&attract more customers by promotional aids.

 Better position to spot marketing opportunities

 Allocating marketing budget

•
 Importance continued
 Counter competition effectively-get to know the
competitors strategies

 Effective marketing programme -to serve consumer
better at a low cost.

 Evaluation of marketing activities-market potential,
adjust production, change product line
•
Social responsibility of Business
to consumer
 Business activities should be by the people,through
the people and for the people.

 By the people-entrepreneurs and business Managers
 For the people-customers and community
 Through the people-employees and sales force in the
organisation.
Multidimensional objectives of an
organisation
 Economic objectives-

 Earning of profits-
• making sure business is not mere money chasing
• Do not earn profits at the cost of the customer
•Earn profit with customer satisfaction

 Creation and satisfaction of customer-

 Valid purpose of business is to create the customer
•
Continued
 Customer is the foundation of the business and
responsible for its existence

 Business can earn profits only by satisfying the
needs of the customer
•

 Customers have many choices but business has to

go back to the same set of customers
•
 Innovation and research
 For every business the need of the hour is, R&D,
growth and modernization
 Every business should go for diversification so that
society and citizens are benefitted
 Innovation and research leads to new and better
products
 Constantly try to improve standards
 Innovation is not a choice but should be a practice
 Research also leads to reduce cost of production



 Human objectives
 Employees should be treated well by their employers

 Every business scheme should be a partnership for
progress

 Employees should get oppurtunity to develop new
skills

 Employees should have a good work environment
and a good salary package
Human objectives for employees
contd
 The prosperity of the company should be shared
with the employees


 Business enterprise should not make profit through
adulteration,hoarding of stock etc
 Social objectives
 Good products or services at a favorable prices

 Right product at the right place with right promotional
efforts

 To ensure fair trade practices

 To make optimum utilization of resources

 Don’t disturb the nature and environment
 National objectives
 To provide import substitution for products

 To make sure that surplus products are exported and
it will earn foreign exchange and clear balance of
payments

 To try fostering small scale and cottage industries
 To ensure the country is self sufficient in goods and
services

 To contribute to the economically weaker sections
Organic objectives

 Survival and profits


 Progressive growth

 Survival of the fittest

 Brand equity contributing to national goals