Far too often, retailers think that consumer buying is randomized.

That certain
products appeal to certain customers and that a purchase either happens or it
doesnt. They approach product and service marketing in the same way, based
on trial and error. What if there were a distinctive set of steps that most
consumers went through before deciding whether to make a purchase or not?
What if there was a scientific method for determining what goes into the buying
process that could make marketing to a target audience more than a shot in the
dark?
The good news? It does exist. The actual purchase is just one step. In fact, there
are six stages to the consumer buying process, and as a marketer, you can
market to them effectively.
1.Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a
reason to believe that what they want, where they want to be or how they
perceive themselves or a situation is different from where they actually are. The
desire is different from the reality this presents a problem for the customer.
However, for the marketer, this creates an opportunity. By taking the time to
create a problem for the customer, whether they recognize that it exists
already or not, youre starting the buying process. To do this, start with content
marketing. Share facts and testimonials of what your product or service can
provide. Ask questions to pull the potential customer into the buying process.

Doing this helps a potential customer realize that they have a need that should
be solved.
2. Information Search
Once a problem is recognized, the customer search process begins. They know
there is an issue and theyre looking for a solution. If its a new makeup
foundation, they look for foundation; if its a new refrigerator with all the newest
technology thrown in, they start looking at refrigerators its fairly straight
forward.
As a marketer, the best way to market to this need is to establish your brand or
the brand of your clients as an industry leader or expert in a specific field.
Methods to consider include becoming a Google Trusted Store or by advertising
partnerships and sponsors prominently on all web materials and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts a leading dealer of Ford
Mustang parts allows you to increase search rankings and to provide a sense of
customer security by displaying your status on your website.
Increasing your credibility markets to the information search process by keeps
you in front of the customer and ahead of the competition.

3. Evaluation of Alternatives
Just because you stand out among the competition doesnt mean a customer will
absolutely purchase your product or service. In fact, now more than ever,
customers want to be sure theyve done thorough research prior to making a
purchase. Because of this, even though they may be sure of what they want,
theyll still want to compare other options to ensure their decision is the right
one.
Marketing to this couldnt be easier. Keep them on your site for the evaluation of
alternatives stage. Leading insurance provider Geico allows customers to
compare rates with other insurance providers all under their own website even
if the competition can offer a cheaper price. This not only simplifies the process,
it establishes a trusting customer relationship, especially during the evaluation of
alternatives stage.

4. Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of the six
stages of the consumer buying process. At this point, the customer has explored
multiple options, they understand pricing and payment options and they are
deciding whether to move forward with the purchase or not. Thats right, at this
point they could still decide to walk away.

This means its time to step up the game in the marketing process by providing a
sense of security while reminding customers of why they wanted to make the
purchase in the first time. At this stage, giving as much information relating to
the need that was created in step one along with why your brand, is the best
provider to fulfill this need is essential.
If a customer walks away from the purchase, this is the time to bring them back.
Retargeting or simple email reminders that speak to the need for the product in
question can enforce the purchase decision, even if the opportunity seems lost.
Step four is by far the most important one in the consumer buying process. This
is where profits are either made or lost.

5. Purchase
A need has been created, research has been completed and the customer has
decided to make a purchase. All the stages that lead to a conversion have been
finished. However, this doesnt mean its a sure thing. A consumer could still be
lost. Marketing is just as important during this stage as during the previous.
Marketing to this stage is straightforward: keep it simple. Test your brands
purchase process online. Is it complicated? Are there too many steps? Is the load
time too slow? Can a purchase be completed just as simply on a mobile device as
on a desktop computer? Ask these critical questions and make adjustments. If
the purchase process is too difficult, customers, and therefore revenue, can be
easily lost.

6. Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact,
revenues and customer loyalty can be easily lost. After a purchase is made, its
inevitable that the customer must decide whether they are satisfied with the
decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take
place. This can be mitigated by identifying the source of dissonance, and offering
an exchange that is simple and straightforward. However, even if the customer is
satisfied with his or her decision to make the purchase, whether a future
purchase is made from your brand is still in question. Because of this, sending
follow-up surveys and emails that thank the customer for making a purchase are
critical.
Take the time to understand the six stages of the consumer buying process.
Doing this ensures that your marketing strategy addresses each stage and leads
to higher conversions and long-term customer loyalty.

Identifying and using reference groups in marketing are important because

Influence your target customers, will enable you to fine-tune your marketing
messages and appropriately package the messages for delivery via the
customers preferred platforms.
Reference groups are people (or groups) used by individuals as a yardstick for
self-assessment or as a model of personal taste, standards, attitudes, or
behaviors. The Business Dictionary defines the term as: People whose attitudes,
behavior, beliefs, opinions, preferences, and values are used by an individual as
the basis for his or her judgment. One does not have to be (or even aspire to be)
a member of a reference group to be negatively or positively influenced by its
characteristics. [Retrieved on 3/5/2012]
Although many types of reference groups may influence an individuals beliefs,
opinions, values, behavior, etc., three reference groups significantly influence
purchase decisions among both individuals and organizations. These are:
1. Dissociative group This group is characterized by attitudes, values, or
behaviors inconsistent with those held by an individual. The individual
wants to distance him or herself from this group.
2. Membership group The individual is currently a member of this type of
group. Among the obvious groups in this classification are fraternities and
sororities, social clubs, social networking circles or groups. Other groups
may be somewhat less publicly obvious, such as ones family, religious
organization, residential neighbourhood association, country club, etc.

3. Aspiration group This is a group with which the individual would like to
be associated or identified. The individual might aspire to be a member of
an elite business or professional organization with strict membership
requirements. It might be an elite country club, an Ivy League school, a
yacht club, a very expensive, gated community homeowners association,
a Fortune 100 corporation, or the board of directors of a prestigious
charity.
Knowing the reference groups of your best customers and target audience
provides a wealth of information about the kind of information prospects will
want or need at each stage of the purchase journey, as well as how to shape the
messaging and how to package the data. It might also provide insight into where
prospects are most likely to want to find information. Knowing the appropriate
reference groups will allow you to choose someone well known in the aspiration
group to speak for your brand.
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One important note is that reference groups have little or no influence over the
choice of products/services that are not publicly apparent. These
groups are important in the choice of products and services used in situations
that are visible to others. Luxury products, for example, should be marketed to
the appropriate membership or aspiration groups and should choose appropriate
testimonials, recommendations, and spokespeople.
It takes time to gather sufficient information to classify reference groups of
customers and prospects. Choosing the right people to appear in ads or to
provide endorsements can be tricky particularly if the person is known to hold
an opinion at odds with a critical value held by your prospect. However, when
you have the necessary information, your marketing team can craft very
powerful marketing messages that strike the right chord with your target
audience.
Using reference groups in marketing can be done by a business of any size, in
any industry or sector. Reference groups can help you develop powerful
marketing programs that deliver the right message in the right packaging at the
right time in the right place.
Before you launch a campaign based on reference groups, it will be important to
test it with representatives of the target market. Testing will ensure a match with
the values, tastes, opinions, and behaviors of the group. An inappropriate
reference or image in your marketing collateral, however, will be instantly
obvious to the target market and will negatively affect your firms reputation.
-Homans equation. [3] The difference between the price we pay for conformity
(loss of freedoms, time commitment, financial commitment, etc.) and the
rewards obtained for doing so (levels of acceptance, advancement within the

group, prestige gained, etc.) determines for each of us whether we will conform
to group expectations and to what extent. For example, if being accepted by
your new coworkers is important to you, and the group goes to a certain
restaurant after work on Fridays, you go, too. You go even if youd rather go
home, kick off your shoes, grab some Chinese takeout, and watch videos. You
see the trade-off as worthwhile.