Question

Explain the difference between brand-loyalty and habitual purchasing. When a brand-loyal customer arrives at a store and finds his or her favorite brand is out of stock, what would you expect to happen next?

Explain the process known as STP marketing.

Answer 1

DIFFERENCES BETWEEN BRAND LOYALTY AND HABITUAL PURCHASING

Brand Loyalty is the tendency of the brand to purchase from the same brand they are loyal to. It could be treated as a positive feeling towards a particular brand. We could even describe their nature, by emphasizing the word 'dedication'. They aren't bothered about the changes in the environment and tend to stick on the same brand without any slight chance of distraction. The brand loyalty of a person could be identified by their repeated nature of buying goods from the same brand manufactures. Also, they always don't possess any confusion over it and flourishes it with mouth advocacy.

  While Habitual Purchasing is much different from the notions of Brand Loyal buyers. The habitual one doesn't possess any loyalty to a particular brand, they purchase products that feel convenient for them. The main difference between brand loyal consumers from habitual ones is that they tend to stick upon one brand. Brand loyal persons are always aware of the brand's attributes. Also, we can state that the majority of habitual one's arent actively engaged in choosing a particular brand, they simply choose. Unlike Brand loyal ones, habitual ones think that there's no much difference between the product of one brand to another.

If a brand loyal customer arrives at a store and doesn't find his/her brand, he/she wouldn't purchase the same product from another brand. And also would wait till his/her favorite brand is on the stock.

STP MARKETING

STP consists of Segmentation, Training, and Positioning. It is a crucial strategy in modern marketing. This marketing model is the most commonly applied. This helps marketers to deliver their message to society, by analyzing and creating a mass platform. At a more tactical communication level, it is also relevant to modern ie, digital communication strategies.

Segmentation

This is the stage where the customers are being identified and segmented as per the market.

Ways to segment your audience include:-

• Classify on the basis of Demographic combinations like age, gender, etc.
• Breakdown the cluster based on Physiographic. The data could be collected by conducting surveys, interview, and customer data
• By assessing the lifestyle.
• Classifying based on the beliefs and values they possess.

Market Targeting

It is the method that specifies how the approach to the market should be made.

• The criteria size should be wide.
• There should be measurable differences.
• The profit which is anticipated must cover and exceed all the marketing costs.
• It is to be ensured whether the target market is receiving a convenient message.
• There should be assured of benefits that form from segments.

Product Positioning

It is the last stage of the STP process. This is the method through which the benefits your product are being presented to the target market. A product could be positioned through many methods, like advertisements and mass campaigns. Also, there should be clarity about the competition the entity is to be faced. There should always be a unique proposition selling. The main part is to craft your message clearly and project your expertise among the community.