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Buyer and Consumer Behavior
Penetration in marketing
Penetration in marketing is used as one of the strategies of growing in business. This is where a company enters new markets with either new products or modified ones to the company, but existing in the market through lowered prices. This is meant to attract customers since at lower prices the demand is bound to increase. It can also be through aggressive advertising where the company is seeking to gain market share in a certain market where competitors already exist. Penetration in marketing can be simply defined as a way of measuring the popularity of a brand in a particular market, making it quite important in measuring market share. It can be calculated through dividing the number of people that buy the brand at a given time by the market size or population of the market.
Average Purchase Frequency
This is the average number of times that a customer buys a particular product at a given period, or from a certain seller. In this case, we are concerned with the number of times a customer buys the product. It is important to understand this because, the higher the purchase frequency of a certain product, the higher the likelihood of the customer switching to another brand. For instance, with coffee, where customers use it almost daily, it would be easy to persuade consumers to shift brand through advertising and promotion unlike for low frequency products. This is simply calculated through making a record of the number of times a customer bought a particular item in a month.
Share of Category Requirements
Share of category requirements means the total number of units that are bought by a household compared to the total number of units bought for the category. Category will include products of the same category form other competitors. This means the share that your particular product occupies within households. For instance, if households bought a total number of 2 million units of Protex bathing soap, while the total number of soaps bought by the same households was 8 million, the share of category requirement will be (2,000,000/8,000,000)100 = 25%. This means that the required amount for this category is 25% of goods within that bracket. This is very important in determining the market share of a product.
Category Buying Rate
Category buying rate is the rate at which consumers buy a particular category. This can be measured by the number of times a consumer buys a product form a certain category for a given time. This can be calculated for each day, month or year through dividing the amount of units bought for that category by the period given. This is important to know how much the product sells within a time or its demand.
First Brand Loyalty
Brand loyalty is where customers remain loyal to a particular brand, and it is hard for them to switch from one brand to another. First brand loyalty on the other hand means the loyalty that consumes hold to the brand that was available in the market first, or the brand that came out first, or the oldest. It could also mean the fists brand that a consumer ever consumed. Many consumers will not want to shifts from their first brand to another.
Sole Loyalty
This is consumers are very loyal to one brand, which is usually the leader or head in the market. This head implements the rules and laws within that market. This can be calculated through observing the number of products bought of that brand, and whether people are willing to buy its substitutes.
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