Learner Guide

Learner Guide
Table of Content
Table of Content..........................................................1
Introduction................................................................2
1. Introduction .........................................................................................3
2. About this Unit Standard : Apply customer needs and relationships ..3
2.1 Unit Standard Alignment ..........................................................................3
2.2 Learning Units...........................................................................................4
2.3 Learner Support........................................................................................5
3. Assessment .........................................................................................5
3.1 Formative Assessment .............................................................................5
3.2 Summative Assessment ...........................................................................5
4. Navigating the Learner Guide...............................................................7
4.1 Use of Icons ..............................................................................................7
5. Learner Administration ........................................................................8
5.1 Attendance Register..................................................................................8
5.2 Learner Registration Form.........................................................................8
5.3 Programme Evaluation Form ....................................................................8
Module 1: Customer Purchasing Motives and Behaviour 9

Alternative Evaluation: Assessing Value........................................................11
Post-purchase Behavior: Value in Consumption or Use .........................12
Issues in buyer behaviour theory...........................................................20
The Economic Factors Affecting Buying Decisions.................................20
Customers, Market Segmentation and Targeting...................................24
Who are our Customers?........................................................................26
Requirements for a Usable Segment......................................................30
Geographic Segmentation.............................................................................33
Psychographic and lifestyle segmentation.............................................34
Target Marketing....................................................................................38
Competitive Advantage ........................................................................39
UStd : 10066 : Establish customer needs and relationships

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Marketing Information............................................................................40
Sources of Information..................................................................................40
The nature of organisational information......................................................41
Marketing Information...................................................................................42
Self Assessment...........................................................................................46
Portfolio Activities..........................................................................................48
Module 2: Assess and respond to customer needs ......49

Building effective relationships that work.....................................................53
Developing a Marketing Strategy...........................................................64
Self Assessment ...........................................................................................68
Portfolio Activities..........................................................................................70
Learner Evaluation Form............................................71

Unit Standard – 10066................................................76
Introduction

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1. Introduction
Welcome to the Unit Standard : Apply customer needs and relationships –

this is an NQF registered unit standard (SAQA Reg. No 10066).
The purpose of this unit standard is to provide a solid foundation for

delegates working in the marketing environment or specialising in Customer
Management.
The qualifying learner is capable of:
• Distinguishing customer purchasing motives and behaviours
• Assessing and responding to customer needs
2. About this Unit Standard : Apply customer needs and relationships
2.1 Unit Standard Alignment
This Unit Standard has 2 Specific Outcomes with related assessment criteria that
must be achieved by the learner before credits are awarded.
Specific Outcome Assessment Criteria
Distinguish customer purchasing • Personal, social, cultural and

motives and behaviours psychological factors are
distinguished in terms of their
relationship to, and impact upon
customer purchasing decision
motives and behaviours
• Customer purchasing roles and

decision processes are differentiated
in relation to market type, customer
base and product range
• Evaluation of customer purchasing

motives and behaviours examines
trends in relation to the adoption of
selling approaches
• Sales and service strategies are

consistent with the information
obtained to distinguish customer

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Specific Outcome Assessment Criteria
buying motives and behaviours
Assess and respond to customer • Customer needs and preferences are

needs defined in relation to products and
services

developed for individual customers
that acknowledge the extent to which
the business can assist customers to
maximise product value and benefits

developed for individual customers
that identify customer needs from a
customer perspective
2.2 Learning Units
This Programme has two (2) Modules to it:
Customer Purchasing Motives and Behaviour
Assess and respond to customer needs
Learner Tip:
The following table illustrates the specific outcome and assessment

criteria alignment in the 2 Modules.
Specific Assessment
Module
Outcome Criteria
Customer Purchasing Motives and

SO 1 AC 1 to 4
Behaviour
Assess and respond to customer needs SO 2 AC 1 to 3

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2.3 Learner Support
Please remember that as the programme is outcomes based – this implies the
following:
• You are responsible for your own learning – make sure you manage your
study, practical, workplace and portfolio time responsibly.
• Learning activities are learner driven – make sure you use the Learner
Guide and Portfolio Guide in the manner intended, and are familiar with
the Portfolio requirements.
• The Facilitator is there to reasonably assist you during contact, practical

and workplace time of this programme – make sure that you have his/her
contact details.
3. Assessment
Learning Outcomes:
Please refer to the beginning of each module for the learning

outcomes that will be covered per module.
3.1 Formative Assessment
In each Learner Guide, several activities are spaced within the content to assist
you in understanding the material through application. Please make sure that
you complete ALL activities in the Learner Guide, whether it was done during
the contact session, or not!
3.2 Summative Assessment
You will be required to complete a Portfolio of Evidence for summative

assessment purposes. A portfolio is a collection of different types of evidence
relating to the work being assessed. It can include a variety of work samples.
Learner Tip:
DO NOT WAIT until the end – the programme is designed to

assist you in evidence preparation as you go along – make use of
the opportunity!

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Remember:
If it is not documented, it did not happen!
In some evidence, the process you followed is more important

than actual outcome / end-product.
Therefore …
Please make sure you complete all activities for your Portfolio.

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4. Navigating the Learner Guide
4.1 Use of Icons
Throughout the learning programme icons are used to focus your attention on
important aspects of the learning programme. The following icons are used in
this learning programme to direct your attention in using at as a reference guide.
Group Activity / Pair Activity:
You will be required to complete an activity in your group or in

pairs with fellow colleagues / programme participants, and
provide feedback to the participants in a report back or
presentation session.
Individual Activity:
You will be required to complete an activity on your own that

relates to the outcomes covered in the module.
Self Reflection:
Reflect on the question(s) asked to identify the relevance of

learning outcomes in your own working environment.
Learner Tip:
A useful tip or essential element regarding the concept under

discussion is given as a basis to further discussion.
Resources:
Possible sources for further research and study is listed under this
icon. Resources may include additional reading, handouts, web-
sites, multimedia

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Self Assessment:
You have come to the end of this module – please take the time
to review what you have learnt to date, and conduct a self
assessment against the learning outcomes of this module
5. Learner Administration
Learner Tip:
The following Learner Administration is critical in assisting your

provider in managing this programme effectively.
Please take a moment to familiarize yourself with the

requirements.
5.1 Attendance Register
You are required to sign the Attendance Register every day of attendance.
Please make sure you sign daily!
5.2 Learner Registration Form
Pease refer to the end of the Learner Guide for the Learner Registration Form.
Make sure you complete it using the Key Document, and submit to your
Facilitator before the end of the contact session with a copy of your ID
document.
Learner Tip/Truths:
Without the Learner Registration and ID Documents we will not be

able to register you with the SETA for certification purposes.
5.3 Programme Evaluation Form
At the end of the Learning Guide is a Learning programme Evaluation Form.

Please complete the form before the end of the contact sessions, as this will
assist us in improving our service and programme material. Your assistance is
highly appreciated!

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Module 1: Customer Purchasing

Motives and Behaviour
Learning Outcomes:
The following learning outcomes are covered in this module.
The learner will be able to distinguish customer purchasing motives and

behaviours
• Personal, social, cultural and psychological factors are

distinguished in terms of their relationship to, and impact
upon customer purchasing decision motives and
behaviours
• Customer purchasing roles and decision processes are

differentiated in relation to market type, customer base
and product range
• Evaluation of customer purchasing motives and behaviours

examines trends in relation to the adoption of selling
approaches
• Sales and service strategies are consistent with the

information obtained to distinguish customer buying
motives and behaviours
Customer behaviour can be defined as the actions a person takes in purchasing

and using products and services, including the mental and social processes that
precede and follow these actions.
The behavioural sciences help answer questions such as:

Why people choose one product or brand over another,
How they make these choices, and
How companies use this knowledge to provide value to consumers.
Consumer purchase decision process
Behind the visible act of making a purchase, lies a decision process that must be
investigated.

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The purchase motive process is the stages a buyer passes through in making
choices about which products and services to buy. :
1. Problem recognition
Five stages of 2. Information search
Customer 3. Alternative evaluation
Behaviour 4. Purchase decision
5. Post-purchase behavior
Fig. 1: Five stages of customer behaviour
Problem Recognition: Perceiving a Need
Perceiving a difference between a person's ideal and actual situations big

enough to trigger a decision.
Can be as simple as noticing an empty milk carton or it can be activated by

marketing efforts.
Information Search: Seeking Value
The information search stage clarifies the options open to the consumer and may
involve two steps of information search:
Internal search
Scanning one’s memory to recall previous experiences with products or brands.
Often sufficient for frequently purchased products
External search
o When past experience or knowledge is insufficient

o The risk of making a wrong purchase decision is high
o The cost of gathering information is low

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The primary sources of external information are:
• Personal sources, such as friends and family.

• Public sources, including various product-rating organizations such
as Consumer Reports.
• Marketer-dominated sources, such as advertising, company
websites, and salespeople
Fig 2: Example of product analysis
Alternative Evaluation: Assessing Value
The information search clarifies the problem for the consumer by:
1) Suggesting criteria to use for the purchase
2) Yielding brand names that might meet the criteria
3) Developing consumer value perception
A consumer's evaluative criteria represent both
• the objective attributes of a brand (such as locate speed on a portable CD

player)

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• the subjective factors (such as prestige
These criteria establish a consumer's evoked set.
• the group of brands that a consumer would consider acceptable from

• among all the brands in the product class of which he or she is aware
Purchase Decision: Buying Value
From whom to Which depends on such

buy considerations:
• Terms of sale
• Past experience buying from the
Three seller
• Return policy
possibiliti When to buy Which can be influenced by:
es Do not buy • Store atmosphere
• Time pressure
• Sale
• Pleasantness of the shopping

experience
Post-purchase Behavior: Value in Consumption or Use
After buying a product, the consumer compares it with expectations and is either
satisfied or dissatisfied.
Satisfaction or dissatisfaction affects
o consumer value perceptions

o consumer communications
o repeat-purchase behavior.
Many firms work to produce positive post-purchase communications among

consumers and contribute to relationship building between sellers and buyers.
Cognitive Dissonance. The feelings of post-purchase psychological tension or

anxiety a consumer often experiences.

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Firms often use ads or follow-up calls from salespeople in this post-purchase
stage to try to convince buyers that they made the right decision.
Fig 3: Involvement and Problem-Solving Variations
Consumers may skip or minimize one or more steps in the purchase decision
process depending on
o the level of involvement

o the personal, social, and economic significance of the purchase
Three characteristics of high-involvement purchase
11 is expensive,
11 can have serious personal consequences, or
11 could reflect on one’s social image.
Three general problem-solving variations exist in the consumer purchase

decision process:
Routine Problem Solving
o Virtually a habit
o involves little effort seeking external information and evaluating
alternatives.
o Typically used for low-priced, frequently purchased products
Limited Problem Solving
o Involves the use of moderate information-seeking efforts.

o Often used when the buyer has little time or effort to spend.
Extended Problem Solving

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o Each stage of the consumer purchase decision process is used

o Considerable time and effort on:
 external information search and in identifying
 evaluating alternatives.
o Used in high-involvement purchase situations
Involvement and Marketing Strategy
Low and high consumer involvement has important implications for marketing
strategy, which differs for products that are market leaders from their
challengers.
The purchase task The reason for engaging

in the decision
Social surroundings Including other present

when a purchase decision
is made
Five Physical surrounding Such as decor, music and
crowding in retail stores
situational Temporal effects Such as time of day or
influences the amount of time
available
Antecedent states Which include the

consumer’s mood or
amount of cash on hand
A. Psychological influences on consumer behaviour
Concepts such as motivation and personality; perception; learning; values,

beliefs and attitudes; and lifestyle are useful for interpreting buying processes
and directing marketing efforts.
Motivation:
o is the energizing force that causes behavior that

o satisfies a need.

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Fig 4: Hierarchy of needs
o Needs are hierarchical

o Once basic physiological needs are met,
o people seek to satisfy learned needs
Personality:
o A person's consistent behavior or responses to recurring situations.

o Research suggests that key traits affect brand and product-type
preferences
Cross-cultural analysis also suggests that residents of different countries have a

national character, or a distinct set of:
• personality characteristics common among people of a country or society

• Personality characteristics are often revealed in a person’s self-concept,
which is the way people see themselves and the way they believe others
see them
Perception:
The process by which an individual uses information to create a

meaningful picture of the world by
 selecting,

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 organizing
 interpreting
Perception is important because people selectively perceive what they want and
it affects how people see risks in a purchase
1. Selective Perception
Selective Perception Filtering:
• Exposure
• Comprehension
• Retention
In the human brain’s attempt to

organise and interpret information
Selective Exposure Consumers can pay attention to

messages that are consistent with their
own attitudes and beliefs
Consumers can ignore messages that

are inconsistent
Selective Comprehension Involves interpreting information so

that it is in line with the consumer’s
attitudes and beliefs (and sometimes
distorting information)
Selective Retention Consumers do not remember all

information which they see, hear or
read
Subliminal Perceptions Consumers see or hear messages

without being aware of them
Research suggests that such messages

have limited effects on behaviour
Perceived Risk:
Anxieties felt
• Consumers cannot anticipate the outcomes of the purchase
• Believe that there may be negative consequences

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Marketers try to reduce a consumer’s perceived risk and encourage

purchases by strategies such
as providing:
• Free trial of product
• Securing endorsements from influential people
• Providing warranties ad guarantees
B. Socio-cultural Influences on Consumer Behaviour
Socio-cultural influences evolve from a formal and informal relationship with

other people.
Influences Include:
i. Personal influence
ii. Reference groups
iii. The family
iv. Social class
v. Culture
vi. Subculture.
i. Personal Influence
Aspects of personal Opinion leaders Individuals who exert

influence important to direct or indirect social
marketing influence over others
Word of mouth People influencing each

other during face t face
conversations
Power of word of mouth
has been magnified by
email and internet

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ii. Reference Groups
Reference groups are people to whom an individual looks as a basis for self-
appraisal or as a source of personal standards. Reference groups have an
important influence on the purchase of luxury products but not of necessities:
Thee groups have Membership groups One to which a persona

clear marketing actually belongs
implications Aspiration group One with which a person
wishes to be identified
Dissociative group One from which a person
wants to maintain a
distance because of
difference in values or
behaviours
iii. Family influence
Family influences on consumer behaviour result from three sources:
• Consumer socialisation
o The process by which people acquire the skills, knowledge and

attitudes necessary to function as consumers
• Passage through the family life cycle
o The distinct phase that a family progresses from formation to

retirement
o Each phase brings identifiable purchasing behaviours
 Young singles
 Young married
 Young married with children
 Older married
 Older unmarried

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• Decision making within the family
o Two decision-making styles exist:
 Spouse-dominant
 Joint decision making
o Increasingly, preteens and teenagers are assuming these roles for

the family, given the prevalence of working parents and single-
parent households
There are five roles of individual family members in the purchase process:
 Information gatherer,
 Influencer,
 Decision maker,
 Purchaser, and
 User.
iv. Social Class
The relatively permanent, homogeneous divisions in a society into which people

sharing similar values, interest and behaviour are grouped.
Determinants of social class include:
 Occupation
 Source of income (not the level of income)
 Education
Social class is a basis for identifying and reaching particularly good prospects for
products and services. Upper classes are targeted by companies for items such
as financial investments, expensive cars, evening wear, etc.
Middle class represents a target market of home improvements centres and

automobile parts stores.
Lower classes are targeted for products such as sports and scandal magazines.
v. Culture and subculture

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Culture refers to the set of values, ideas and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation.
Sub-cultures – groups within the larger or national, culture with unique values,
ideas and attitudes.
Issues in buyer behaviour theory
Much of the research concerning buyer behaviour has come from the
development of marketing itself. This is a multidiscipline and quite complex and
is based on researched done over a period of time.
By way of illustration, within the study of consumer behaviour marketers are

interested in questions such as:
• How can models of buyer behaviour be of use to marketing practitioners?
• What are the major influences on purchase decisions?
• Do consumers pass through a sequence of decision stages?
• If so, do such stages apply equally to all purchase types, or all consumers?
• What is the relationship between needs, motivation and buying behaviour?
• How do the attitudes affect buying behaviour, and is it necessary to

achieve favourable attitude changes before buying takes place?
• Is the purchase of a new product or brand approached as a different

buying proposition?
• How do buyers evaluate the various alternatives facing them in the buying
decisions?
• What is the nature and extent of loyalty among buyers, and how
differently do loyal buyers approach their purchase decisions?
• What is the extent of individual versus group-influenced decision making

among consumers?
The Economic Factors Affecting Buying Decisions
From elementary economics it might be expected that buying decisions would be

made by logically comparing the available choices in terms of cost and value
using criteria such ase:
• Economy of purchase or use

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• Convenience
• Efficiency in operation or use
• Dependability in use
• Improvement in earnings
A review of our own personal buying habits will show that in practice these
factors are seldom considered and rarely of paramount importance when we
make buying decisions.
Individual Activity 1: Personal, social, cultural and psychological

factors are distinguished in terms of their relationship to, and impact
upon customer purchasing decision motives and behaviours. (SO1
AC1)
Prepare to deliver a 2 minute presentation on the factors that have

an impact on customer decision motives and behaviours for the
products/ services sold at your company.

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Individual Activity 2: Customer purchasing roles and decision

processes are differentiated in relation to market type, customer
base and product range. (SO1 AC2)
Resource 1: Use the template in your Resource Guide to complete

this activity.
Select a product range (within your organisation) and elaborate on

possible purchasing roles and decision process of a customer.
Market segmentation
Market segmentation is a strategy that involves dividing a larger market into

subsets of consumers who have common needs and applications for the goods
and services offered in the market. These subgroups of consumers can be
identified by a number of different demographics, depending on the purposes
behind identifying the groups. Marketing campaigns are often designed and
implemented based on this type of customer segmentation.
One of the main reasons for engaging in market segmentation is to help the
company understand the needs of the customer base. Often the task of
segregating consumers by specific criteria will help the company identify other
applications for their products that may or may not have been self evident
before. Uncovering these other ideas for use of goods and services may help the
company target a larger audience in that same demographic classification and
thus increase market share among a specific sub market base.
A true market segment meets all of the following criteria: it is distinct from other
segments (different segments have different needs), it is homogeneous within

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the segment (exhibits common needs); it responds similarly to a market

stimulus, and it can be reached by a market intervention. The term is also used
when consumers with identical product and/or service needs are divided up into
groups so they can be charged different amounts. These can broadly be viewed
as 'positive' and 'negative' applications of the same idea, splitting up the market
into smaller groups.
Examples:
 Gender
 Price
 Interests
While there may be theoretically 'ideal' market segments, in reality every

organization engaged in a market will develop different ways of imagining
market segments, and create product differentiation strategies to exploit these
segments. The market segmentation and corresponding product differentiation
strategy can give a firm a temporary commercial advantage.
Market segmentation strategies can be developed over a wide range of

characteristics found among consumers. One group within the market may be
identified by gender, while another group may be composed of consumers within
a given age group. Location is another common component in market
segmentation, as is income level and education level. Generally, there will be at
least a few established customers who fall into more than one category, but
marketing strategists normally allow for this phenomenon.
Along with playing a role in the development of new marketing approaches to

attract a certain demographic within the market base, market segmentation can
also help a company understand ways to enhance customer loyalty with existing
customers. As part of the process of identifying specific groups within the larger
client base, the company will often ask questions that lead to practical
suggestions on how to make the products more desirable to customers. This
activity may lead to changes in packaging or other similar changes that do not
impact the core product. However, making a few simple changes in the
appearance of the product sends a clear message to consumers that the

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company does listen to customers. This demonstration of good will can go a long
way to strengthen the ties between consumer and vendor.
Customers, Market Segmentation and Targeting
While marketing as a business philosophy makes the customer central to the

objectives or an organisation, it is the concepts of marketing which have been
developed from this philosophy which have made marketing so relevant to
business and other organisations. The marketing concepts provide the basic
principles and framework within which appropriate decisions can be made by any
supplier who whish to ensure that exchanges made with consumers or
customers are mutual beneficial. It is a basic precept of marketing that this
must be the principle objective of any supplier who wishes to thrive in a dynamic
competitive environment such as is usual today.
It is said that a product is not sold until it has reached the ultimate consumer, in
fact we could go further and say it is not sold until it is paid for and used by the
final consumer.
In the 1950’s the pioneers of mass-marketing, multinational firms such as

Procter & Gamble and Coca-Cola, had the power to sell large quantities of
standardised goods to a ‘homogeneous; mass market, using the promotional
attraction of mass media (national press, and especially television). Even earlier,
Henry Ford made his fortune by mass marketing, offering his Model “T” car in
‘any colour as long as it is black’. Now things have changed in the marketplace.
Coca-Cola now offer caffeine-free, diet, cherry and other variants which combine
some of all of these attributes. Ford make cars from the Fiesta to the Ford
Focus in a host of finishes, colours and specifications.
At a basic level this could be seen just as an increase in the variety of products
offered, but of course the cause of this proliferation is to attempt to meet
customer needs more precisely.
If marketing is the satisfying of the needs and wants of customers, then those
wants must at least be established, even if they are found to be different for
every single consumer. This fact recognises that customers do not always form
a homogeneous group, nor are the demands of two, outwardly similar, people

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necessarily the same. However, you will remember that marketing really
involves ‘profitable or beneficial exchanges’ so, as part of the marketing decision
process, there must be a view on which customer groups are to be supplied. If
different customers have different needs then why not offer them different
products to meet those needs? And why not market those products in a way
that appeals best to each particular group?
Segmentation is the process of breaking down the intended product market

into manageable groups; it can be broken down by:
• Relationship
• Customer Type
• Product Use
• Buying Situation
• Purchasing Method
• Behavior
• Geographic Location
• Demographics
• Psychographics

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Who are our Customers?
Before an organisation can make any decision associated with marketing a

fundamental question must be answered: ‘Who are our customers?’
One way to answer your question would be on the basis of the following table:
Buyer Sponsor Patient

Customer Patron Pupil
Consumer Subscriber Parent
User Supporter Motorist
Recipient Member Passenger
Adviser Colleague Guest
Client Co-worker Delegate
Accountant Viewer Tourist
Contractor Reader Shopper
Distributor Listener Household
Agent Lender Taxpayer
Retailer Banker Resident
Stockist Applicant Ratepayer
Factor Prospect Voter

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This could well be a good initial approach, but it is unlikely to provide an answer
which would be useful as the basis for making marketing decisions.
Another approach would be to use the behavioural criteria identified as being

relevant to buyer decisions. The identifying of the different groups, and so
subdividing the market into those groups which can be attacked by a specific
marketing strategy, is termed segmentation.
Its objective is to select from all possible potential customers those groups which
are most likely to need and want to buy a product. The use of the different
marketing strategies for each distinct segment is know as target marketing, or
differentiated marketing (as per the following illustration
Each of these different strategies is likely to appeal to very different groups of

customers. Consider the type of people who buy food in a delicatessen shop
compared with those who regularly shop at a discount food store. Even if some
people use both outlets, the motivations for the visiting of such very different
stores will enable those shoppers to be distinguished from those who visit only
one of the outlet types mentioned.
Useful Segmentation
The basic principle of segmentation is very simple. It involves selecting the

classification most appropriate to the groups of customers identified. The work
involved in doing this is justified only if it can be used to improve marketing
effectiveness. To meet this objective the resulting segments must be relevant to
the purchase decision, and also capable of being reached by both distribution
and communications with some measure of precision. The traditional approach
uses variables Product
which can be described as geographic and / or demographic.
Offer Mix
Much of the data collected by the various UK media owners is quoted in terms of
the socio-economic groupings shown here below.
Promotion
Promotion
Promotion
al mix C
al mix A
al mix B
Promotion
Offer and
Promotion
Promotion
Offer and
Offer and
al mix B
A specific
al mix C
al mix A
A common
focussed
marketing mix
marketing mix
Segment C
Segment B
Segment B
Segment A
Segment A
Segment A
Segment
A
The Market
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Concentrated 27
Marketing marketing targeted marketing
marketing
Learner Guide
Market Segmentation by Socio-Economic Groupings
A Upper Middle Class High managerial/administrative/professional, e.g

company
B Middle Class Intermediate managerial/administrative/or

professional
C1 Lower Middle Class Supervisory/clerical/junior managerial
C2 Skilled Working Class Skilled manual workers
D Working Class Semi-skilled or unskilled workers
E Pensioners, casual workers and others
There are many potential problems when using a scale derived from the
occupation of the ‘head of the household’ to determine how people behave.
Anyway, the descriptions above are already outdated, using terms such as
working class.
A longitudinal study by Krik McNulty looked at the changing face of UK society.

He based his categories on the Maslow hierarchy. The study shows that his
‘inner directed’ groups are expanding as a percentage of the population, while
other groups decrease.
Inner Direction Covers
1. Social resisters Caring people; altruistic, green, and likely to join

pressure groups
2. Experimentalists Fun seekers, materialistic, pro-technology and

individualistic

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3. Self-explorers Share social concern, not materialist, motivated

by self-expression
All these groups are defined in terms of Maslow’s self-actualisation category.
The problems in finding a usable way of describing a segment do not mean that
the concept of marketing segmentation is not useful. There are to many
examples of successful target marketing which can be found. In fact the
industrial product is a good example where the organisational characteristics
(demographic end geographic, such as a type of company, size, industry, etc.)
can be successfully linked with personal characteristics of personnel who might
be: users; influencers; buyers; deciders; or gatekeepers. By identifying how to
reach a group of ‘deciders’ a positive marketing result can be achieved, as in the
example below.
Example
A campaign to communicate with the financial controllers of companies with

large transport fleets was under taken by a major tyre company. The company
realised financial controllers were a key ‘advisor’ group and in some cases held
the ‘decider’ role. They were primarily interested in the lowest total cost of
operation, not just the cheapest tyre. They could be reached directly, and a
campaign was directed at them, emphasising areas they considered important
rather than issues important to the transport manager. It proved successful in
boosting sales levels.
Returning to the consumer market, another useful set of segments is the ACORN
grouping (A Classification Of Residential Neighbourhoods). This is a
variation on traditional demographic descriptors, developed in a way that makes
communication with this segment easy. It is sometimes termed geo-
demographics, as it links postcodes (in Britain or other host countries) to the
prime characteristics of the occupants of the households. In the UK a total of 38
groupings has been produced, so that a marketing organisation or other user can
buy a list of all addresses in a particular category – say, all postcodes which have
a majority of ‘private flats with single pensioners’ (category K38).

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A mail shot to this segment offering them a relevant product will have greater
success rate than a more random method of contacting this group.
Principle orientated Status Orientated Action Orientated

Resources
Actualisers Abundant
Fulfililleds Achievers Experiencers
Believers Strivers Makers
Strugglers Minimal
Alternatively, a company could collect all the addresses and postcodes of its
customers. By analysing these against the ACORN database the predominant
categories can be establish and plans laid to communicate with other potential
customers in the same categories. Such an exercise can prove very rewarding,
but it does not assume that all people in the same postcodes groupings behave
in the same way. Compare your family with your own neighbours. The use of
ACORN does assume, and can demonstrate, that the probability of similarities
exist.
This is enough to make the database valuable to marketing managers. There are
other rival databases such as MOSAIC, PINPOINT and PROFILES, offering similar
services.
Requirements for a Usable Segment
There is no limit to the numbers of ways a market may be segmented in

particular circumstances, but to be useful a segment must be:
• Definable
• Sizeable
• Reachable
• Relevant.
Definable
This means we must be able to describe the market segment, and for this the
key characteristics of the segment should show a degree of homogeneity. The

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segment is of course a subset of a heterogeneous total market, because if the

total market were homogeneous there would be no need for segmentation. It is
also useful to be able to measure the market size and define the boundaries of
the segment
Sizeable
Is the segment large enough and can it produce the required turnover and profit
for your organisation? This criterion depends on the particular organisation, as a
minimum revenue of R10m for a brand sold by a large multinational might be
required, while another company might find R0.5m an acceptable contribution to
turnover. So size is relative, but organisations also need to make profits. Toffler
suggests that markets are ‘de-massifying’ into ever-multiplying, ever-changing
sets of mini-markets that demand a continually expanding range of options,
models, types, sizes, colours, and customisations. That is the challenge of
marketing, but useful segments must be assessed in terms of organisational
resources and objectives.
Reachable
There must be a way of reaching the segment both effectively and efficiently.
This includes the obvious physical distribution of a product, as well as
communicating with customers via media or in a direct way. ACORN meets the
communication test, but it is less easy to find a way of communicating with
categories such as the ‘experimentalists’ or ‘self-explorers’ described by
McNulty.
Relevant
This has already been mentioned as the most important test for any described
segment. It cannot be considered in isolation from the other criteria as there is
no point in describing a relevant segment which cannot be reached.
The message of this section is that, although segmentation can be an effective

marketing technique, it should be treated carefully. In the era of de-
massification, organisations can easily appeal to segments which are too small
to be viable or perhaps to costly to reach. While segmentation can help in the
process of understanding customer similarities and differences, careless use
could lead to the development of too many product variants, confusion of
customers, and the failure to capitalise on the real opportunities that such a
study of markets and their subsets offers.
Segmentation Variables

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In order to describe segments there are two different approaches which can be
used. The first concentrates on the characteristics of the buyer. Generally these
are classified under one or combination of the three categories:
• Demographic
• Geographic
• Psychographic
However, an alternative, but equally powerful, set of variables can be derived,

offering a focus on how customers behave, and the benefits sought by those
customers from a product or service. While benefits link closely with lifestyles
and psychographics, they do warrant attention as a separate category for
classification. So the other two categories are:
• Benefit and
• Behavioural segmentation.
• Demographic
Demographic segmentation
Demographics is the most widely used method of classification of marketing

segments. It is the basis for the collection of many government statistics and the
standard system used by the media industry. Pym Cornish of RSL, who is a
acknowledge authority on demographics, wrote:
Demographics are often thought of as consisting of no more then the

dimensions of sex, age, social grade, region, and a few others that have
traditionally been used as a standard market research variable in Britain. But
society does not stand still. It has evolved; old generalisations about the family,
such as the women look after the house and children while men earn the money,
have become less and less true. Yet this does not mean that demographics have
become less useful, only that the traditional classifications should be superseded
by others that reflect the current structure of society more accurately.
So, based on Cornish’s article, the traditional demographic bases are: gender,
age, marital status, socio-economic classification and occupation. To these we
must add descriptors such as family type and size, income levels, ethnic origin,
education levels and stage in life cycle. The last factor was described in more
detail in Cornish’s article.
For industrial products there are equivalent demographic categories which can
be used, such as industry type (SIC – Standard Industrial Codes), turnover and/or
profit, numbers of employees, and numbers and types of customers. Such
demographic data are relatively easy to obtain. Every ten years in the UK there

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is a full census of the population, so that the government statistics can be

updated. This does not cover issues like lifestyle in great dept, but it does
provide a good basis for which to start. Many organisations use census data as a
basis for decisions on market potential. The type of information provided is
called secondary data, in that it is collected for one purpose but its is then used
for a secondary one. It cannot be stressed too often that the information
collected must be relevant to the purchase decision. The categories which are
actually relevant to the purchase decision. The categories which are actually
relevant can change, as in the example of Red stripe lager. This Jamaican larger
was originally imported into Britain from the Caribbean. Its price reflected the
cost of importing, and it was primarily sold to areas with a high population of
Jamaican origin. The brewers, Desnoes and Geddes, then arranged for the
product to be brewed under license in the UK. While they were very careful to
maintain the distinctive quality for the lager, it was decided that the price could
be modified, and there where opportunities for appealing to a wider number of
drinkers. Hence ethnic origin is no longer such relevant demographic variable for
this product. However, stage in the life cycle does effect consumption of beers
and lagers. As people move through the stages of pre-family, family and post-
family they change their drinking habits.
Also, some people remain single, or form a relationship but do not marry or have
any children. They, too, show changes in drinking according to life cycle. Life
cycle is more powerful than age alone in this analysis, as it is able to include
relative levels of disposal income and, equally important, leisure time, which a
family with children finds is in short supply. Of course the traditional variables do
help in describing segments as, for instance, men drink more beer than women,
and there are differences identified by socio-economic groups in order to
describe their customers the major brewers use a combination of demographic
data with other bases such as lifestyle (as distinct from life cycle, which is not
the same).
One very full database which covers demographic profiles and also other bases
is the TGI (Target Group Index), produced by the British Market Research Bureau.
BMRB is a commercial organisation which carries out 3000 interviews every
month and continually updates information on the several thousand brands and
product categories covered. It offers purchasers of the index detailed
demographic and lifestyle profiles of consumers. It also covers the media which
reach the various segments, and is an invaluable source of information linking
consumer product segments to the media usage.
Geographic Segmentation
This type of classification is often considered as another type of demographic

variable. In some ways it is, and the development of geo-demographic bases
such as ACORN prove this. Nevertheless it is an obvious grouping, and
geographic variables can be considered separately. Issues, such as rural versus

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urban, warm versus cold, north versus south, all can be considered where
appropriate. The consumption of sweet (sugar-based) products is greater in
Scotland than in the rest of the UK. Is this perhaps useful information when
planning a new confectionary product. There are also opportunities for the
commercial market, such as planning new retail outlets. One company might
look for a location in the key area bounded by outlets such as Mark & Spencer,
Boots and W H Smith, which provides the greatest density of shoppers in many
town centres. Another trader might base decisions on the number of suitable
customers living within a specific radius or travelling a distance from the centre
of a city. Both are dependent on geographic segmentation studies. It might be
appropriate to add a warning regarding large, apparently attractive segments.
These naturally attract competitors and may not provide the anticipated level of
business. There are many small shops serving a limited geographic area without
direct competition and making a reasonable profit. If the business were located
in the High Street of a major town, the competition would change the situation,
such that although the numbers of potential customers is far greater, the actual
custom may not be, and the increased cost involved would decrease profitability.
Psychographic and lifestyle segmentation
Psychographics seeks to classify people according to their personality traits.

They are used more in relation to consumer products, but there is no reason why
corporate interests, such as a measure of levels of social responsibility, could not
be used when considering issues relevant to the segmenting of organisations.
There is some debate over whether psychographics should be restricted to
issues of sociability, self-reliance, assertiveness and other personality traits, or
whether it should be widened to include other lifestyles, which cover attitudes,
interests and opinions.
The use of lifestyle characteristics is attractive to the marketer for two reasons.
First, it provides a simple link to the variables used in behavioural theory, e.g.
attitudes, perception and social influences. Second, although lifestyles can
change over time and over the life cycle of a person, there tends to be a
consistency of action in selecting products and services which matches the
‘persona’ of a consumer at a particular period.
To establish psychographic characteristics, a series of questions are developed

and respondents are asked to agree or disagree with statements such as: ‘I like
to do all my car maintenance’, ‘Traditional home cooking is best’, or ‘I worry
about environmental issues’. Thus scales are developed from a battery of
questions, enabling a detailed picture of attitudes and lifestyle to be constructed.
A fuller exposition of the market research procedures required to construct these
segments can be found in Margaret Crimp’s excellent book the Marketing
Research process.

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The results of a demographic analysis of whisky drinkers might show they are
primarily: class – AB, sex – male, age – 45 plus. A lifestyle study of this category
shows it is not homogeneous, and there are many other spirits consumed by the
segment, but it could identify key attitudes of those who drink whisky rather
than gin. This can then be applied to the product promotion.
In 1974, an early article on ‘The concept and application of lifestyle

segmentation’ by Plummer indentified the following list of subjects on which
questions could be posed in lifestyle studies. This list shows the scope of such
studies.
Activities Interests Opinions

Work Family Themselves
Hobbies Home Social Issues
Social Events Job Politics
Vacation Community Business
Entertainment Recreation Economics
Club membership Fashion Education
Community Food Products
Shopping Media Future
Sports Achievements Culture
Benefit Segmentation
The idea of segmentation on the basis of the benefit received is wholly

consistent with the marketing concept. A motor car purchased as the main or
only one for a family will provide a very different benefit from a company car
supplied to a single employee, or a car purchased as a second car for a spouse.
The benefits received are different and thus the actual car bought will be
assessed by very different criteria. Using benefit segmentation these factors can
be isolated and this information used to design appropriate products for each
group.
In the USA there is a good example of a successful costs/focus strategy based on

benefit segmentation, the US hotel chain, La Quinta, which offers a specific
product for business ensure minimum external noise in any room. They provide a
fast, efficient check-in/out system and certain business facilities required by
travelling business people. They are conveniently located on major roads but do
not offer restaurants or food service. They are always a 24-hour restaurant
nearby if required, but not run by the hotel. La Quinta concentrate on providing
a value package for a particular segment, mainly commercial travellers, who
require facilities to do an evenings work after a day of meetings, but do not
require on-site eating. A restaurant is expensive to run and so why provide it if
the benefit it provides is not required? A similarly focused development in the
UK is exemplified by the no frills, inexpensive tariff, overnight hotels being built
by the Trust House group on sites close to their Little Chef restaurants.

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Benefit segmentation depends on casual relationships rather than descriptive

criteria of segment members. It is applicable to industrial products or services
as to consumer goods and services. In fact some products span these
categories. For instance, a portable calculator could be a consumer item for use
by a student, or an industrial product if used in an accounts office. An electrical
maintenance service can be offered to a commercial organisation for a private
home. A service situation such as this provides the maximum flexibility in target
marketing, since each contact between supplier (electrician in this case) and
customer is distinct, and the delivery of the service is inseparable from the
production. Hence the supplier can provide a precise service to match the
benefit required. In other situations the product is not offered to a discrete
segment. An aeroplane could contain passengers who have:
• Bought tickets at full price
• Bought discount tickets in advance
• Bought even cheaper tickets
All groups receive the same prime benefit – air travel to their destination. But
the problem regarding full-fare business travellers has been tackled by providing
‘club’ or ‘business’ class as distinct from ‘economy’ class. Nevertheless, some
passengers buy full economy fares, others are discounted. The difference in
benefits, such as ability to change times of travel if you hold a full=fare ticket,
compared to the possibility of not travelling at all with a standby, illustrate the
wider range of benefits which must be explored for the same product offering.
Benefit segmentation was popularised 30 years ago by Russell Haley, who

studied the toothpaste market in the USA. He identified four groups. From such
an analysis, it can be seen how different brands can be designed to meet each of
the benefit segments identified above.
Benefit Required Other characteristics

Sensory Segment Flavour + Product Usually children
appearance
Social segment Sound bright teeth Outgoing and active
Young
Worrier segment Decay prevention Heavy users family
Independent segment Low prices Predominantly male
Little loyalty
Bought Brand on offer
Behavioural Segmentation

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A development of psychographic segmentation which concentrates on lifestyle

and attitude is to study how people behave with respect to purchasing a
particular product. Questions that can be answered include ones such as, ‘How
do heavy users differ from light users?’, ‘Can we isolate brand-loyal consumers?’
If we can identify usage levels and link this to other segment criteria, then
differentiated marketing strategies can be adopted for each group. Such groups
could be:
• Heavy users
• Medium users
• Light users
• Occasional users
• Non-users
Inevitably a version of the Pareto effect will apply. Perhaps 80 per cent of a
company’s sales will go to 20 per cent of its customers (heavy users). The
temptation is to concentrate on these people, as they provide the bulk of the
profitable sales. In fact, they need a marketing mix that retains and reinforces
their custom. This will probably be very different from the message to occasional
or light users, who may either purchase competitor’s products or perhaps not
use the product category very often.
Other behaviouristic criteria include:
• Loyalty levels
• Purchase occasion
• User status
• Readiness status
Purchase occasion is an obvious discriminator with buying behaviour, and

therefore should be considered when carrying out a segmentation study.
The behaviour of purchases buying, say, beer or lager will vary between orders
in a public house, occasional purchasing from an off-licence, or regular
purchasing as part of a shopping trip. Dickson went further, linking purchase
situation with benefits to fill what he termed ‘person-situation: segmentation’s
missing link’. This work is just one example of linking criteria together to provide
usable segmentation to assist marketing decisions.
A direct marketing organisation subdivides its mailing list by what they term the
‘customer pyramid’. The customer pyramid is one form of measure of readiness

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to buy, where each requires a different approach from the supplier. Customers
need to progress from awareness through interest and desire to action. This
progression could take time, and behaviour will be different for potential
customers in different stages of this continuum.
Target Marketing
The five principles of good marketing practice identified are
• Targeting
• Positioning
• Interacting
• Controlling
• Monitoring relationships with customers
Target marketing is the process of selecting one or more market segments and
then developing a product and offer which is aimed specifically at those
segments.
Once the target market segments have been identified, the key attitudes of
those customers towards the product category should be determined. It is thus
clearly essential to define market segments using appropriate criteria.
The Chairman of a UK advertising agency said ‘Demographics tell me nothing I

want to know.’. He argues that the world has changed fundamentally and it is no
longer true that you can lump together all manual workers and consider their
common wants. He gets very close to a ‘product orientation’ when he says,

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‘Brands and business must be themselves, and let consumers come to them by
self-selection’.
Target marketing is the link between segment selection and product positioning.
Target marketing is the opposite to undifferentiated marketing. This is where
the same product is offered to the entire market.
Undifferentiated offerings can succeed, but it is usually more effective to offer a

variation of the product to suit each relevant market segment. This is especially
true in global markets, where major differences of culture and history can also
divide potential customers. Target marketing develops the total marketing mix
with variations to the total product offered.
Companies providing services have always been able to offer personalised

products, since the provision of the service is inseparable from the production.
Because of this, service products are inherently liable to variations depending
upon the individual who actually provides the service. This is why service
organsiations such as banks, or the fast foods chains, pay so much attention to
supplying a standardised range of products. This approach helps to maintain
consistency in the quality of service given, and to reduce the risk of the
organisation’s reputation being destroyed by a single incidence of poor service,
as may happen if this attracts the attention of the media.
Competitive Advantage
We have learned how customers needs and wants can change, making existing
products obsolete. For example, a competitor may launch a new product which
a particular group of customers find more attractive. Because of this,
organisations must continuously revise their products or services to keep them
relevant to the changing needs of customers.
This involves to the fundamental marketing questions:
• Who are our existing and potential customers?
• What are their current and future needs?
• How do they judge value?

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• When and where can these customers be reached?
Those responsible for products already on the market need to continually as

these basic questions.
Marketing Information
Sources of Information
The information an organisation has about its market comes to it in a variety of

ways, both formally and informally. All organisations have a fund of knowledge
available both from the people who work for it and in the records accumulated
over many years. For example, when reading through a technical magazine
someone could notice an article about developments at a competitors plant.
Maybe this expansion is to allow for a new product or to improve efficiency. If
this information is fed through to the right area it could be very useful. The most
important issue, for employees to know where to send such informal facts and
leave it to a central department, usually marketing, to decide what to keep, what
to check out promptly, and what to ignore.
Unfortunately organisations rarely have complete knowledge about their

markets, customers or competitors. At best it is like a mosaic or jigsaw, where
the picture can still be clear, even though a large number of pieces may be
missing. Sometimes it would be helpful to make efforts to acquire more
information to make the picture even clearer.
However, it must be realised that information can cost money. It is only worth
acquiring if the additional information would increase the chances of making a
better marketing decision in the future.
It must be remembered that marketing information doe snot replace decision

making. Therefore the purpose and value of information gathering must be set
against the cost of obtaining and processing that information.
Generally, the knowledge provided by marketing information changes over time.

Thus, returning to our analogy of a mosaic, the colours of some pieces will fade
over time. To revive the pattern, pieces must then be removed and replaced as
new ones become available. When information is used for marketing it must not
be out of date as this could easily lead to bad decisions. Again, like the pieces
used to make a mosaic, marketing information has to be obtained from many
different sources and sometimes alternative sources can be used. These sources
of data could be divided as:
• Undirected observation – Informal, unstructured collection of

information from any source. It includes casual reading of magazines
and newspapers, meetings with contacts etc

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• Conditioned viewing – Formal searching but sometimes unstructured

collection whereby a comprehensive search is made covering a
specified range of publications. This is done using on-line databases.
• Informal searching – A structured way of capturing vital information

such as a system of receiving sales force reports. The information
might present itself in an informal way but the system to ensure it
reaches the relevant managers must be structured.
• Formal searching – This is where formulised marketing research comes

in. It is a specific study undertaken to fill in some of the gaps in the
mosaic of information available. It involves the collation, analysis and
presentation of appropriate, available and required data.
Research can be defined as the use of investigative techniques to discover non-

trivial facts and insights which lead to an extension of knowledge.
The nature of organisational information
Before the essential characteristics of marketing information can be considered

it is necessary to describe organisational information generally and to see how
marketing information is a part of it. In most organisations there is ample
evidence of information which is needed simply to help the business to exist. In
the business context it can be seen everywhere – stored in desk drawers, filing
cabinets, cardboard boxes in archives and on computer files. Most of this
information can be classified in terms of the different business functions. Hence
there will be files containing accounting information, personnel information,
production/operational information, design information and so on. It can also be
seen, moved and referred to and can, for this reason, also be referred to as
tangible information. The production information for a manufacturing business
could be contained in sets of detailed drawings, standard specifications, lists of
suppliers, work schedules and operations sheets.
Such information specifically details what has to be done and, usually in less
detail, how it should be done. This is because it would not be assumed that the
information would be used only by someone with the necessary skill and training.
Although impressive in terms of quantity of information contained in these files,

the tangible information represents only a part of the information which is
actually needed for an organisation to function. It is unusual for much of this
tangible information to be required for the regular day-to-day activities of the
organisation. Most of it is the stored record of past activities. In fact al lot of this
information is kept t comply with the legal and other regulations which apply to
all organisations.
In addition, most organisations and individual employees maintain records in

order that past successes can be repeated and past errors avoided. Such

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information is often used to establish a procedure within an organisation which

reduces reliance on individual members of staff and the likelihood of mistakes.
The procedures used within an organisation, and the routines which are used to
implement theses, are an essential part of organisational information. In
addition to the files contained in office cabinets or held on computer disks there
is another type of information where no physical evidence exists, hence it could
be described as intangible information. This is the personal skill and knowledge
of the individuals in the organisation who carry out these procedures and
routines. Of course, much, if not most, of the information being described as
intangible can be made tangible simply by setting out in writing, but the
important issue is that it should be available to those employees who require it
when they want it.
The combination of tangible and intangible information is a fundamental

characteristic of organisational information.
Marketing Information
Marketing as a business activity is developed as a result of recognising that the

success of an organisation depends upon creating and retaining customers. In
short term these decisions are likely to be concerned with meeting the needs of
customers efficiently. In the longer term they are likely to focus more on the
organisation’s need to respond to the ever-changing expectations of the users of
its products and/or services, and what has already been introduced as the
marketing environment. Included within the category of marketing information
are:
• Market and environmental information
• Customer and potential customer information
• Competitor information
• Product, price, and other information about the offering
• Distributor, and advertising and promotional information
All of these are drawn from the different levels of the marketing environment.
We could define marketing information as any information which is relevant to,

or affects, the profitable exchange of a product/service between an organisation
and its customers.
Although marketing information can be either tangible or intangible there is

often little evidence of tangible marketing information in many organisations.
There might be some files containing, for instance catalogues showing the
products offered by the competitors, but they are usually limited in comparison

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with the files needed by the production function of an organisation. Some

departments such as sales, design and advertising may have formal files, but in
addition many managers are likely to have their own file labelled ‘Competition’
and containing catalogues collected at an exhibition or other similar event. It is
inevitable that marketing decisions often have to be made on the basis of
incomplete marketing information as any gaps in the latter clearly affects the
efficiency of production. However, marketing information is time dependent. It
is of no value when it is out of date and so it can then be discarded since there is
no legal requirement to store it. It is important that the requirement for
adequate marketing information is recognised since this is fundamental to the
success of an enterprise.
Group Activity / Pair Activity 1: Evaluation of customer purchasing

motives and behaviours examines trends in relation to the adoption
of selling approaches (SO1 AC3)
Sales and service strategies are consistent with the information

obtained to distinguish customer buying motives and behaviours
(SO1 AC4)
Your facilitator will divide you into groups of 3 or 4.
Resource 2 : Case study.
Read the case study given and answer the following questions:
Given your understanding of the buyer behaviour process, consider

the particular variables and influences that might affect buying
behaviour, within any national market known to you.
a) To what extent, for example, might perception, attitude formation

and learning processes affect purchase behaviour among Polar
Electro’s product users?
b) As a related question, what buyer groups or segments might be

identified, and how might they vary in buyer behaviour terms?

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Group Activity / Pair Activity 2: Sales and service strategies are

consistent with the information obtained to distinguish customer
buying motives and behaviours (SO1 AC4)
Customer needs and preferences are defined in relation to products

and services (SO2 AC1)
Resource 3 : Brainstorm.
Use the template provided in your Resource Guide:
Discuss the following:
• The organisation’s current sales and services strategies, and
• The customer buying motives and behaviours (relating to your

organisation’s products/services)
Brainstorm ideas on how you can ensure that the sales and service
strategies are consistent with the customer buying motives and
behaviours.

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Conclusion
Congratulations! You have now completed the first module of the initial learning
for Standard : Establish Customer Needs and Relationships – this is an NQF
registered unit standard (SAQA Reg. No 10066).
You now need to complete the following assessments in your own time.
Self Assessment
Self Assessment 1: Distinguish customer purchasing motives and behaviours

(SO 1)
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self
assessment against the learning outcomes of this module by
following the instructions below:
Rate your understanding of each of the outcomes listed below :
Keys :  - no understanding
 - some idea
 - completely comfortable
SELF
RATING
NO OUTCOME
  
I am able to distinguish personal, social, cultural and

SO1 psychological factors in terms of their relationship to, and
AC1 impact upon customer purchasing decision motives and
behaviours
I am able to differentiate customer purchasing roles and

SO1
decision processes in relation to market type, customer
AC2
base and product range
I am able to examine trends in evaluation of customer

SO1
purchasing motives and behaviours in relation to the
AC3
adoption of selling approaches
I am able to obtain information on sales and service

SO1 strategies which are consistent with the information
AC4 obtained to distinguish customer buying motives and
behaviours

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Complete the mind map below by listing the main point you remember from the
module you have just completed.
__________________________
__________________________
__________________________
__________________________
____
______________________
______________________ __________________________
______________________ __________________________
______________________ __
______________________
_____ __________________________
__________________________
______________________ __
______________________
__
______________________
______________________
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Mentored Discussion 1:
Refer to your Mentor or Workplace Supervisor to assist in this

activity, as they will conduct the assessment or sign off of the
activity once completed.
Request the organisation’s sales and service strategy document

and make suggestions on how to ensure that it is consistent with
the customer’s buying behaviour (SO1 All AC)
It must be signed off by the mentor and yourself

otherwise it will not be accepted as evidence.
Portfolio Activity: Module 1
Complete the assessment activity that will be assessed as part of

your Portfolio of Evidence for the particular module.
Complete the following:
In a tabular format, list the organisation’s products and services and

add the customer buying behaviour for each service or product.
(SO1 All AC)
It must be signed off by the mentor and yourself otherwise

it will not be accepted as evidence.
Portfolio Activities
Portfolio Activity:
Refer to your Portfolio Guide for the assessment activities related

to this section.

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Module 2: Assess and respond to

customer needs
Learning Outcomes:
The following learning outcomes are covered in this module.
The Learner is able assess and respond to customer needs
• Customer needs and preferences are defined in relation to

products and services
• Sales and service strategies are developed for individual

customers that acknowledge the extent to which the
business can assist customers to maximise product value
and benefits
• Sales and service strategies are developed for individual

customers that identify customer needs from a customer
perspective
If an organization cannot at least meet its customers' expectations it will

struggle.
Ideally a business organization should exceed its customers' expectations,
thereby maximising the satisfaction of its customers, and also the credibility of
its goods and services in the eyes of its customers.
Customers normally become delighted when a supplier under-promises and over-
delivers. To over-promise and under-deliver is a recipe for customers to become
very dissatisfied.
Rule No 1 - You cannot assume that you know what a customer's expectations
are ... You must ask.
Rule No 2 - Customer expectations will constantly change so they must be
determined on an on-going basis.
The expectations of different customers for the same product or service will vary
according to:
• social and demographic factors
• economic situation
• educational standards
• competitor products
• experience

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Therefore, given all these variable factors, it is no surprise that one size certainly
does not fit all.
Ask your customers what is important to them. Find out why your customers do
business with you. There are a wide variety of relationship drivers. For example:
• quality
• price
• product
• location
• customer service
When you ask you might discover some factors that you'd perhaps never even
considered, for example:
• health and safety support
• systems compatibility
• contract structure
• distribution flexibility
• technical support
• troubleshooting and problem-solving, to
name just a few
What service features will keep your customers loyal to you? Find out.
Selling Approaches
Let’s explore some of the selling techniques and approaches you could use in
order to position your products or services to your customers:-
Consultative Approach
Consultative salespeople are professionals who sell more than products or

services. They take a consultant's role toward selling to their clients, which
means that they show that they have a vested interest in their client's success.
This is a compassionate sales approach, but it can also be extremely effective.
When clients begin to rely on you for your advice and for the solutions you offer
to their problems, you begin to become a default reaction when something is
needed. After a while the consultative approach allows you access to the inner
workings of your customer's operation, and that can allow you leverage to create
deals and sell products. One of the major drawbacks to the consultative
approach is some customers who appreciate the advice you give, use the advice
you give, but rarely buy products. Many times these customers will give the

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impression that a large sale is on the horizon, but it does not materialize. In
these cases it is necessary to slowly establish a boundary between you and the
customer to let them know that your free advice has its limits.
Hard Sell
A very confident sales professional will sometimes employ a sales approach

known as the hard sell. The hard sell is basically telling the customer that she
needs the product you sell, you offer the best support and service in the
business, you can meet her needs and her budget, so she needs to buy right
now. The hard sell is usually prefaced by some relationship building in which the
sales representative establishes himself as an expert, and makes it very clear
that he can help the customer and expects the customer to buy. This approach is
sometimes effective and sometimes not. Normally the hard sell approach is used
only on customers who have a difficult time making a decision, but it is also not
the only approach the sales representative knows how to use.
Technical Sale
This is another limited sales approach that can be effective when used on the
right kind of customer. A good sales professional will spend time trying to figure
out what kind of approach their customer will respond to, and then she will
implement the correct approach to get the sale. If your customer needs to be on
the cutting edge of technology, use the technical sale approach. In most cases
the technical sale customer is not worried about price, but he does want to be
certain that the product will enhance his business in some way. Talk technical--
and how this technology can make profits for the customer and he will buy.
You can have every product that your customers could possibly want, but if you don't treat your
customers well, you can kiss your business goodbye. Numerous studies have shown that it costs
more to acquire new customers than it takes to retain existing ones. Use these six service strategies
to keep your customers coming back for more:
Strategy #1: Stay in Touch
Let your customers know you value their business by reaching out to them. Use newsletters,
postcards, individual letters, or e-mails to deliver news about products, special promotions, and store

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events. (Allow customers to sign up for these missives in the store, and never send an e-mail without
their express permission.) Send a thank-you note after a major purchase, inviting the customer to
contact you with questions, feedback, or to discuss additional requests. Focus all these
communications on letting customers know that you can solve their problems and meet their needs.
Strategy #2: Make Great Service a Priority
Excellent customer service requires training your staff and constantly reinforcing the message that
customers come first. Start with the little things, such as a standard way of politely greeting people on
the phone or asking that sales staff courteously greet anyone who enters the store.
Strategy #3: Store Collective Wisdom
One of the most important customer strategies is to set up a system for responding to customer
inquiries or complaints. The last thing you want is for your employees to provide inaccurate
information to your customers. Neither should they fail to provide a solution to a problem or quote
policies that may not accurately address the situation.
Your goal should be to resolve issues during the initial customer contact, or, when that's not possible,
within one business day. Whenever necessary, make sure employees let customers know that they
may need some time to locate the information. Do not leave customers hanging.
With that in mind, staffers need to know exactly where to look for answers. While it's natural for new
employees to rely on the wisdom of more experienced ones, you don't want all that wisdom to walk
out the door when someone quits. Develop a "knowledge base"; that is, a store of information with
answers to common questions, methods for solving problems, and standards for resolving disputes.
Your knowledge base can be as simple as a notebook where staffers or the store manager jots notes;
a searchable text file on a computer; or a database
Strategy #4: Empower Your Staff
In some cases, where there is no policy -- and occasionally in cases where the policy needs to be
flexed -- you need to empower certain people to make decisions, use good judgment, and bend the
rules. Ask them to document these special cases; you can provide a pad of paper forms, let them
enter information into the computer, or simply leave you a voice mail. Depending on the size of your
operation, you may want to designate one person per shift as chief problem-solver.

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Strategy #5: Know Your Customers
Instituting a formal way of tracking your customer interactions will help you identify your best
customers, as well as those who may not have frequented your business in a while. You can also see
if someone has needed repairs or is due for servicing on a product.
You don't have to use a computer to track customers. A small shop could simply prepare an index
card for each customer and file them alphabetically. If the customer returns, sales staff can pull the
card from the file, review the history, and note the latest interaction.
Strategy #6: Manage Customer Relationships
Once you have some history on your customers, whether from written notes or via a database, you
can identify your best customers and reward them. Perhaps you'll offer a special discount to frequent
customers or make a follow-up call to those who have needed recent repair work.
Use the information you've gathered about your customers to make customer service a science. Give
them a quality experience and complete satisfaction, and they'll keep coming back for more.
Building effective relationships that work
This article was published in Training Journal, January 2001
Relationships can often seem like fragile things – especially in the workplace
where they are often built and destroyed by the actions we take. However, as
Nick Heap explains, by underpinning those relationships with a few simple
principles, they can grow into something secure and lasting.
I have been interested in how people build relationships since 1969. I went on a
week’s training event where a group of us were encouraged to look at our
behaviour as it happened. My most important insight from this experience was
that we have the technical resources and material to solve all the problems we
have. What is missing is the willingness and the skills to work together. This
requires us to listen to each other; indeed, listening is the underlying skill
required in all good relationships.
Why build effective relationships?

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In society we need to build effective relationships for a number of reasons. For

instance, the health of people depends on what happens in organisations and
what they do.
Alongside that, organisations only function with the co-operation of their

members. We all know that ineffective organisations can be very frustrating. We
also know that effective organisations can demand so much from their
employees that those people have nothing of themselves left for life beyond
their work environment. Either of these scenarios can result in personal and
relationship stress or breakdown.
Additionally, organisations can have a profound effect on people that do not

work for them but who depend on them for the necessities of life – for example,
food, housing and clean water.
Society is a web of relationships, requiring all parties to work together in order to

create something that is good. But what makes society work even better are
relationships that are positive, co-operative and respectful. In this way everyone
works for the good of the whole and towards a common purpose. This demands
effective relationships based on mutual understanding.
If you understand what people want and why they want it, you can usually find a
way to make progress together. The best way to understand is to listen and
observe without making premature judgements. In my experience, active
listening can help you discover, remarkably, that we want the same things.
High-quality relationships make you happy. It’s often the case that some of the
happiest people in the world live in the poorest communities. I have met people
in Nepal who had almost nothing material but who radiated contentment
because they shared a life together. If your key relationships are working,
happiness is possible in most circumstances.
What is an effective relationship?
In an effective relationship parties listen to understand others’ positions and

feelings. The simplest way to understand what is important to another person or
to a group is to ask, then listen to the answer. We all know when someone else is
really interested in us. The other person is attentive, does not interrupt, does not

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fidget and does not speak about him or herself. This gives us time to think and
feel accepted, rather than be judged. Listening leads to understanding; if you
understand someone else fully, then you know what to do to get closer and work
better together.
In effective relationships, parties openly express their positions and feelings.

Sometimes we expect people – particularly those close to us at home or work –
to understand what we want and to give us what we need intuitively. This is not
a realistic aspiration. People are so complicated and react to events in such
different ways that even when they have lived together for 60 years they can
still surprise each other. We need to say what we need and to express how we
feel. By doing this we are more likely to get what we want, rather than expecting
someone to notice what we want, then waiting for that person to give it to us.
In order to make our relationships more effective, we should treat ourselves and
each other with respect. Respect is the core of any good relationship. We show
respect by listening to the other person and by trying to understand how they
view things. Quickly forming judgements based on prejudice is the complete
opposite of respect. You can respect people (even if you find their behaviour
difficult to understand) by acknowledging that they are doing the best they can
when their circumstances and history are taken into account.
Respect is the foundation for a strong relationship – and this means respecting
yourself as well as others. If you feel good about yourself, it is much easier to see
the good in people and treat them with respect.
Another key to forming effective relationships is to face differences directly.

Differences between people are interesting. In a conversation where each person
listens to the others, you may each discover a new truth that integrates (say)
two opposing perspectives. This is more rewarding than the alternatives – for
example, withdrawing, fighting, grumbling to someone else or plotting. Learning
to face differences takes time and can be uncomfortable, but confronting and
attempting to understand them is a good, stretching discomfort.
Work towards solutions where both parties win. I believe profoundly that win–win
solutions are possible and they should always be our goal. If we both feel we

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have gained from resolving a difference, then we will be more willing to co-
operate again in future. This builds exciting and satisfying relationships.
What can help?
In exploring what helps us to build effective relationships, perhaps I can pass on

some advice that has been drawn from personal experience and from some of
the training workshops in which I have been involved.
1. At least one party should decide the relationship is important.
If I decide my relationship with someone is important, then I will invest time and
energy to understand that person’s needs and to deal with anything that gets in
the way. (It’s easier if the other person thinks it’s important too, but not
essential.) Even if I try and fail, I will know that I gave it my best shot and can
gain comfort from that.
2. Learn to listen effectively, and without judging.
Effective and non-judgemental listening will help you to understand the other
person or people. When someone listens to you, both your own sense of worth
and the worth of the listener increases. Judging another person almost always
creates distance and defensiveness.
3. Meet people informally, so they feel comfortable raising issues that

are important to them.
Most people feel more relaxed in informal settings. If you are intending to meet
with someone with the specific purpose of developing your relationship with that
person, think about holding the meeting in a setting in which he or she will feel
comfortable. When people are relaxed they are more able to speak about what is
important to them.
4. Develop a culture whereby people can express their feelings.
We create relationships by sharing thoughts and feelings. When we express

happiness, joy, contentment, anger, irritation, sadness or fear we feel more
vulnerable, but we can also feel more connected. Unexpressed feelings can get
in the way of building closeness. It is difficult for two people to have a useful

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conversation if one of them is unaware that the other is angry about something
the he or she said or did. There is a good chance that this will result in a cold or
aggressive atmosphere when these two people meet, and this will get in the
way. Organisational cultures that encourage people to connect can generate a
passionate commitment to achieve wonderful things together.
What gets in the way?
A number of things can get in the way of forming an effective relationship,

including:
• a history of mistrust or stereotyping
• blaming the other party for a difficult relationship
• focusing on the task and excluding the feelings and needs of others
• unclear objectives, roles and expectations of each other.
Let’s take a look at each of these in turn.
• A history of mistrust or stereotyping: we get a great deal of

misinformation about people who are in different groups to ourselves.
There is often more difference between the members of a group than
between groups. If ever we think ‘All ____ are like that’, then we are
stereotyping. This causes destruction in relationships; everyone is unique
and wants to feel uniquely valuable. When stereotyping is endemic,
consistent mistreatment or oppression of one group by another is
common, which, in turn, reinforces people’s negative feelings that can,
understandably, colour their attitudes.
• Blaming the other party for a difficult relationship: blaming another person
or group is usually futile. It creates distance and defensiveness, and does
not help the relationship develop. If I am not happy about a relationship, it
is more useful for me to think about what I need to do, or not to do, to
make it better. I can change my behaviour much more easily than I can
persuade you to change yours.

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• Focusing on the task and excluding the feelings and needs of others:
people have feelings and they bring those feelings to work. Some
organisations harness the feelings and help people use their energy, joy
and laughter to good effect. If you ignore people’s feelings and drive
through the task regardless, then your best people will leave, you will
alienate your customers and you will not get the contribution you could
get. People are not machines; if you treat them with respect and
understanding, and listen to their feelings, they will want to give more and
work better together.
• Unclear objectives, roles and expectations of each other: if we don’t know

what we want from each other, misunderstandings are inevitable and the
relationship will suffer.

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Effective techniques
The remainder of this article gives a variety of methods and examples for
building effective relationships in organisations that avoid any of the pitfalls that
can occur when people don’t know what they want from each other. The
combinations of relationships we will examine include those:
• between two people
• between people in groups
• between the groups themselves, and
• throughout the whole organisation.
Between two people
Method 1: Active listening. Here one party summarises in her or his own words
what s/he hears the other person say and the feelings underlying it. S/he then
feeds back to this person. The process continues until the talker is sure the
listener understands. Then the roles are reversed.
EXAMPLE
I was working with a group of senior people on a management course. The

group was stuck in an argument between two of the members, who I’ll call Fred
and Mary. I asked each person to summarise the argument of the other in his or
her own words. Mary began by saying: ‘I believe you think XYZ; have I got that
right?’ Fred responded by explaining a bit more until he was sure Mary had fully
understood his argument. When Mary summarised again accurately they both
knew she had understood his argument completely. Then we did the same thing
in reverse. When both Fred and Mary had fully understood and acknowledged
each other’s position, the argument fell away. They could now bridge the
differences.
Method 2: Taking turns to help each other. Each person has a turn describing
an issue, idea or problem. The first person acts as consultant and helps the
second person to arrive at a solution. At the end of the turn, the person being
helped gives the consultant feedback on what the other participant did that

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helped. Then the roles are reversed. This technique is an economical and
effective way to give and receive help and build good relationships at the same
time. It will work if you take turns. Then both people feel good about giving
useful help and about getting it.
EXAMPLE
I use this method all the time to help me develop my business and work more
effectively with clients. I found myself being a bit distant with a client recently
and could not understand why. I talked this over for half an hour with another
professional who listened to me and asked me good questions. I discovered that I
was rather cross and sad because my client had not returned my calls for weeks
and now wanted me to be available to him. Just talking about this was helpful.
Now I can talk to my client more clearly about my needs as well as his, and be
more understanding of the pressures that make it hard for him.
Method 3: Helping contracts. On the left-hand side of a sheet of paper, write

down a list of ‘things I can do to help you’. Then, on the right-hand side, write a
list of ‘things you could do to help me’. Invite the other person to add to both
lists. Discuss the results and work on the changes.
EXAMPLE
I got a bit fed up with a good, but not great, appraisal scheme and decided to
experiment, as above, with a more positive approach with my part-time
secretary. She was very willing to help. Not only that, I discovered some things I
could do to help her that I had been unaware of – like telling her where I was
going when I went out of the building. She offered to help me with a job I had
been avoiding but one that she said she would enjoy – clearing out, then re-
organising a huge walk-in cupboard that was hitherto a jumble of audio-visual
equipment. The reason I hadn’t asked her to undertake this task was because I
had assumed she wouldn’t want to do it. Although this happened some time ago,
I still remember it. What is it they say about assumptions?
Between people in groups
Method 1: Taking turns. Start by asking each person to talk for up to a minute
about something that is going well for them, while everyone else listens. This

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relaxes people and they will be more positive for the remainder of the meeting.
Then ask each person in the group to speak in turn for, say, up to three minutes
on the topic of the meeting, while everyone else listens without interrupting.
Everyone will have had a turn to say what they want and be heard. This simple
process avoids the competition and frustration that make so many meetings
ineffective.
EXAMPLE
I introduced a session on customer care in a district council by asking everyone

in the group to take a minute each to say something that was going well for
them, and why they thought customer care was important. As each individual
spoke, the others listened respectfully. This quickly helped people to establish a
connection with each other because they discovered that they all shared the
same commitment to provide first-rate customer care. This ten-minute session
set the tone for a successful workshop that also built a co-operative team spirit.
Method 2: Process review. Half-way through a meeting, ask each participant to

say how s/he thinks the meeting is going. You can use phrases like: ‘What is
good about the way we are working together?’ and ‘How can we improve the
second half of our meeting?’ If this is difficult to do during the discussion, ask
similar questions at the end of any significant meeting.
EXAMPLE
Even in one-to-one sessions I will always ask what my client has learned (or how
we are doing) and for feedback on the way I have been working with her/him.
The more relaxed and natural I am, the better my clients like it. It is not so good
when I try too hard. In a group, I ask ‘What is the most significant thing you have
learned today?’ and ‘What has been good about it and how could it have been
better?’ The first question gives an indication of the output or value added by the
work. It is often surprising. In the customer care example (see earlier), the
manager said his most significant learning experience was the importance of
listening.
Between groups

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Method 1: Image exchange. In separate groups write on a flipchart ‘How we see

ourselves’, ‘How we see the other group(s)’ and ‘How we think the other group
sees us’. Then meet together in a plenary session, examine the data and discuss
what lies behind it. Finally, set up mixed groups to tackle common problems.
EXAMPLE
Many years ago I ran a workshop between scientists and technicians in a

research laboratory. Before the workshop, the scientists sat in their offices or the
library and thought, designed experiments and evaluated the results. They rarely
went into the laboratory to do bench work. They saw the technicians as ‘pairs of
hands’. The technicians saw the scientists as idle dilettantes (polite word). After I
ran this exercise, the scientists went into the labs much more often, and sought
out the technicians’ contribution to the design of experiments and their ideas.
The technicians asked questions about the scientists’ ideas and were much more
positive about their contribution. These changes ‘stuck’.
Method 2: Joint projects. Identify projects that require participation from two or
more groups. Involve members of these groups in the planning of the project,
and make sure you discuss with them how the meetings are going and how to
improve them.
EXAMPLE
A company used variable and potentially hazardous material to make medical

products. It was a legal requirement that tests were undertaken; testing was also
vital for the integrity of the business. The tests took a long time to process and
there were several errors. I interviewed people from the quality control and
production departments who were involved in the testing to discover what was
happening. We then ran a joint workshop in which they looked at what they were
doing critically and suggested improvements. The spirit was about making things
better rather than apportioning blame. The company radically simplified its
systems, eliminated much of the work, and designed and ran a much smarter
system. One side effect was greater understanding of the contribution each
made to the whole.

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Method 3: Joint activities. Creating something together can be an excellent

way of building relationships between groups. This is especially true when the
activity requires talents, organisational ability, social skills and contacts, which
you cannot predict from group membership.
EXAMPLE
We had a Jubilee party in my street that brought together everybody. People

with different organisational, practical and social skills created a great day for
everyone and thoroughly enjoyed it too. We noticed each other’s contribution
and people in the street became closer.
In the whole organisation
Method 1: Team building. The effectiveness of an organisation depends on

people working well in teams. Team building helps a team to create a clear and
shared vision of what its members are trying to achieve. Team members also
identify the practical issues they face, start to tackle them together and learn
how to work together.
EXAMPLE
A team had a history of uncomfortable personal relationships. Team members

did not deal with these problems directly; instead, they would grumble to others.
Workloads were increasing, too. Most people felt very frustrated. I encouraged
everyone in the team to say to each of the other members what it was they
required from that member. This proved to be a positive and helpful experience
to all. The team also worked, in sub-teams, on practical issues such as the
allocation of work and priority setting. Team members decided to set up working
groups to meet later and follow-up on the discussion. Their weekly meeting is
now much more democratic and less of a top-down briefing. They have even
moved on to tackle their relationships with other teams. The participants are now
feeling far more positive, enthusiastic and committed. They have learned the
value of listening and talking to each other directly. There is less grumbling, too.
Method 2: Survey work. An objective person who is usually external to the

organisation interviews people from across and down the organisation, and
collects a valid picture by asking: ‘What is working well?’, ‘Where are things

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hurting?’, ‘What do you or your colleagues need to improve?’ and ‘How are you
managing these things now?’ The outsider feeds this information back to the
organisation and helps those involved plan improvements. The process brings
things into the open and makes them easier to talk about.
EXAMPLE
A manager noted that customer service on a complex product was consistently

poor and needed improving. I interviewed (in confidence) key managers in the
nine departments involved. The managers then met to listen to each other, look
at the whole picture and work out what it meant. Group members decided to
stop blaming each other for poor customer service and to work together to
improve it. They set up monitoring procedures and involved their staff in creating
improvements. All now took responsibility. One year after the start of the work,
customer service had radically improved. Also, relationships between the
departments had improved permanently.
In conclusion
The principles of building an effective relationship are universal; they apply in

both private and work relationships, and they are not dependent on age and
class. The methods that we have covered in this article work best when we
understand three simple things. First, however it may appear, we are all doing
the best we can, given our situation and history. Second, win–win solutions are
always possible. Finally, every person and every group has something valuable
to contribute.
Developing a Marketing Strategy
You can develop a strong marketing foundation by:
1. Defining your product or service: How is your product or service packaged?

What is it that your customers are really buying? You may be selling web-based
software tools but your clients are buying increased productivity, improved
efficiency and cost savings. And if you offer several products or services which
ones are the most viable to promote?

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2. Identifying your target market: Everyone or anybody might be potential clients

for your product. However, you probably don’t have the time or money to market
to Everyone or Anybody. Who is your ideal customer? Who does it make sense
for you to spend your time and money promoting your service to? You might
define your ideal customer in terms of income, age, geographic area, number of
employees, revenues, industry, etc. For example a massage therapist might
decide her target market is women with household incomes of $75,000 or more
who live in the Uptown area.
3. Knowing your competition: Even if there are no direct competitors for your
service, there is always competition of some kind. Something besides your
product is competing for the potential client’s money. What is it and why should
the potential customer spend his or her money with you instead? What is your
competitive advantage or unique selling proposition?
4. Finding a niche: Is there a market segment that is not currently being served
or is not being served well? A niche strategy allows you to focus your marketing
efforts and dominate your market, even if you are a small player.
5. Developing awareness: It is difficult for a potential client to buy your product

or service if they don’t even know or remember it exists. Generally a potential
customer will have to be exposed to your product 5 to 15 times before they are
likely to think of your product when the need arises. Needs often arise
unexpectedly. You must stay in front of your clients consistently if they are going
to remember your product when that need arises.
6. Building credibility: Not only must clients be aware of your product or service,
they also must have a positive disposition toward it. Potential customers must
trust that you will deliver what you say you will. Often, especially with large or
risky purchases, you need to give them the opportunity to “sample”, “touch”, or
“taste” the product in some way. For example, a trainer might gain credibility
and allow potential customers to “sample” their product by offering free, hour
long presentations on topics related to their area of specialty.
7. Being Consistent: Be consistent in every way and in everything you do. This
includes the look of your collateral materials, the message you deliver, the level
of customer service, and the quality of the product. Being consistent is more

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important than having the “best” product. This in part is the reason for the
success of chains. Whether you’re going to Little Rock, Arkansas or New York
City, if you reserve a room at a Courtyard Marriott you know exactly what you’re
going to get.
8. Maintaining Focus: Focus allows for more effective utilization of the scarce
resources of time and money. Your promotional budget will bring you greater
return if you use it to promote a single product to a narrowly defined target
market and if you promote that same product to that same target market over a
continuous period of time.
Before you ever consider developing a brochure, running an ad, implementing a

direct mail campaign, joining an organization for networking or even conducting
a sales call, begin by mapping a path to success through the development of a
consistent, focused marketing strategy.
Group Activity / Pair Activity 3: Sales and service strategies are

developed for individual customers that acknowledge the extent to
which the business can assist customers to maximise product value
and benefits (SO2 AC2)
Sales and service strategies are developed for individual customers

that identify customer needs from a customer perspective (SO2 AC2)
Resource 4 : Use the template in your Resource Guide to complete

this activity.
Develop two sales strategies:
• A strategy for individual customers that acknowledge the

extent to which the business can assist customers to
maximise product value and benefits; and
• A strategy for individual customers that identify customer

needs from a customer perspective.
Present your strategies to the entire group.

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Conclusion
Congratulations! You have now completed the second module of the initial
learning for Standard : Establish Customer Needs and Relationships – this is an
NQF registered unit standard (SAQA Reg. No 10066).
You now need to complete the following assessments in your own time.
Self Assessment
Self Assessment 2:
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self
assessment against the learning outcomes of this module by
following the instructions below:
Rate your understanding of each of the outcomes listed below :
Keys :  - no understanding
 - some idea
 - completely comfortable
SELF
NO OUTCOME RATING
  
SO2 I am able to define customer needs and preferences in

AC1 relation to products and services
SO2 I am able to develop sales and service strategies for

AC2 individual customers that acknowledge the extent to which
the business can assist customers to maximise product
value and benefits
SO2 I am able to develop sales and service strategies for

AC3 individual customers that identify customer needs from a
customer perspective

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Learner Guide
Complete the mind map below by listing the main point you remember from the
module you have just completed.
__________________________
__________________________
__________________________
__________________________
____
______________________
______________________ __________________________
______________________ __________________________
______________________ __
______________________
__________________________
_____
__________________________
__
_____________________
_____________________
_____________________
_____________________
_____________________
_____

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Learner Guide
Mentored Discussion 2:
Refer to your Mentor or Workplace Supervisor to assist in this

activity, as they will conduct the assessment or sign off of the
activity once completed.
Discuss the customer needs and preferences per product and/or

service and make suggestions that could be implemented in the
service and sales strategy. (SO2 All AC)

Portfolio Activity: Module 2
Complete the assessment activity that will be assessed as part of

your Portfolio of Evidence for the particular module.
Complete the following:
Develop a sales and service strategy for a selected product/

service. (SO2 All AC)

Portfolio Activities
Portfolio Activity:
Refer to your Portfolio Guide for the assessment activities related

to this section.

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Learner Guide
Learner Evaluation Form

Learning Facilitator Name
Programme
Name
Learner name Dates of

(Optional) Facilitation
Employer / Work Date of

site Evaluation
Learner Tip:
Please complete the Evaluation Form as thoroughly as you are

able to, in order for us to continuously improve our training
quality!
The purpose of the Evaluation Form is to evaluate the following:
• Logistics and Support
• Facilitation
• Training Material
• Assessment
Your honest and detailed input is therefore of great value to us,

and we appreciate your assistance in completing this evaluation
form!

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Learner Guide
A Logistics and Support Evaluation
No Criteria / Question
Poor
Sufficient
Excellent
Below Standard
Above Standard
1 Was communication regarding attendance of
the programme efficient and effective?
2 Was the Programme Coordinator helpful and

efficient?
3 Was the training equipment and material used

effective and prepared?
4 Was the training venue conducive to learning

(set-up for convenience of learners,
comfortable in terms of temperature, etc.)?
Additional Comments on Logistics and Support

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Learner Guide
B Facilitator Evaluation
Poor
Sufficient
Excellent
Below Standard
Above Standard
1 The Facilitator was prepared and knowledgeable
on the subject of the programme
2 The Facilitator encouraged learner participation

and input
3 The Facilitator made use of a variety of methods,

exercises, activities and discussions
4 The Facilitator used the material in a structured

and effective manner
5 The Facilitator was understandable, approachable

and respectful of the learners
6 The Facilitator was punctual and kept to the

schedule
Additional Comments on Facilitation

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Learner Guide
C Learning Programme Evaluation
Poor
Sufficient
Excellent
Standard
Standard
Above
Below
1 2 3 4 5
1 The learning outcomes of the

programme are relevant and suitable.
2 The content of the programme was

relevant and suitable for the target
group.
3 The length of the facilitation was

suitable for the programme.
4 The learning material assisted in

learning new knowledge and skills to
apply in a practical manner.
5 The Learning Material was free from

spelling and grammar errors
6 Handouts and Exercises are clear,

concise and relevant to the outcomes
and content.
7 Learning material is generally of a high

standard, and user friendly
Additional Comments on Learning Programme

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Learner Guide
D Assessment Evaluation
Poor
Below Standard
Sufficient
Above Standard
Excellent
1 2 3 4 5
1 A clear overview provided of the assessment

requirements of the programme was provided
2 The assessment process and time lines were

clearly explained
3 All assessment activities and activities were

discussed
Additional Comments on Assessment

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Learner Guide
Unit Standard – 10066

SOUTH AFRICAN QUALIFICATIONS AUTHORITY
REGISTERED UNIT STANDARD:
Establish customer needs and relationships

SAQA US UNIT STANDARD TITLE
ID
10066 Establish customer needs and relationships
ORIGINATOR ORIGINATING PROVIDER
SGB Marketing
QUALITY ASSURING BODY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Marketing
Studies
ABET UNIT OLD NQF LEVEL NEW NQF LEVEL CREDITS
BAND STANDARD
TYPE
Undefined Regular Level 5 New Level 16
Assignment Pend.
REGISTRATION STATUS REGISTRATION REGISTRATION SAQA DECISION
START DATE END DATE NUMBER
Reregistered 2009-07-01 2012-06-30 SAQA 0480/09
LAST DATE FOR LAST DATE FOR ACHIEVEMENT
ENROLMENT
2013-06-30 2016-06-30
In all of the tables in this document, both the old and the new NQF Levels are shown. In the text
(purpose statements, qualification rules, etc), any reference to NQF Levels are to the old levels
unless specifically stated otherwise.
This unit standard does not replace any other unit standard and is not replaced by any
other unit standard.
PURPOSE OF THE UNIT STANDARD

This standard is an Elective unit standard and forms part of the Qualification, National
Diploma and is registered at Level 5 on the National Qualifications Framework (NQF).
Learners working towards this standard will be learning towards the full qualification, or
will be working within a marketing environment, specialising in Customer Management,
where the acquisition of competence against this standard will add value to one's job.
This standard will also add value to learners who wish to start their own formal or
informal business, acting as a vendor of products or services.
The qualifying learner is capable of:
1 Distinguishing customer purchasing motives and behaviours

1 Assessing and responding to customer needs
LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

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Learner Guide
1 Learners accessing this qualification will have demonstrated competence against the
standards in the National Certificate - Marketing Communications or equivalent at NQF
Level 4.
UNIT STANDARD RANGE

1 Marketing including all forms of marketing communication, direct marketing,
relationship marketing, sponsorship and event marketing, sales promotions, public
relations and alternative strategies
1 Interpersonal communication including oral, visual and written.
Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1
Distinguish customer purchasing motives and behaviours
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
1. Personal, social, cultural and psychological factors are distinguished in terms of their
relationship to, and impact upon customer purchasing decision motives and behaviours.
2. Customer purchasing roles and decision processes are differentiated in relation to
market type, customer base and product range.
3. Evaluation of customer purchasing motives and behaviours examines trends in relation
to the adoption of selling approaches.
4. Sales and service strategies are consistent with the information obtained to distinguish
customer buying motives and behaviours.
SPECIFIC OUTCOME 2
Assess and respond to customer needs
ASSESSMENT CRITERIA
1. Customer needs and preferences are defined in relation to products and services.
2. Sales and service strategies are developed for individual customers that acknowledge
the extent to which the business can assist customers to maximise product value and
benefits.
3. Sales and service strategies are developed for individual customers that identify
customer needs from a customer perspective.
UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

1 Providers offering learning towards this standard will be accredited by the Educational
Training Quality Assurance Body (ETQA) of the services SETA and/or by Council of Higher
Education (CHE).
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

A demonstrated understanding of:

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Learner Guide
1 A comprehensive understanding of techniques and methods for distinguishing

customer buying motives and behaviours.
1 A broad understanding of techniques for researching and analysing market types.
1 A basic understanding of corporate and organisational business, sales and marketing
strategies.
1 A basic understanding of techniques for communicating with individuals and groups.
1 A basic understanding of techniques and methods for verbal, written and visual
presentations.
1 A broad understanding of techniques and methods for building and developing
relationships with customers.
1 An all rounded and generic understanding of the industry, the product and the
industry role players.
Range: This knowledge will apply to the particular economic sector in which the learner is
learning. Moderation of this aspect will therefore need to be carried out jointly by the
relevant educating and training quality assurance body (ETQA) and the services ETQA.
Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING
1 Identify and solve problems pertaining to distinguishing customer buying motives and
behaviours.
UNIT STANDARD CCFO WORKING

1 Work effectively with others when establishing and developing customer relationships
and when communicating with stakeholders.
UNIT STANDARD CCFO ORGANISING

1 Organise oneself and one's activities so that alternative sales strategies exist in the
event of current sales strategies being rejected or failing or there are insufficient
resources available to implement sales strategies and plans.
UNIT STANDARD CCFO COLLECTING

1 Collect, evaluate, organise and critically evaluate information that enables strategies
to be developed and communicated.
UNIT STANDARD CCFO COMMUNICATING

1 Communicate effectively when initiating interpersonal communication with
customers.
UNIT STANDARD CCFO SCIENCE

1 Understand the world as a set of related systems when establishing and developing
customer needs and relationships.
UNIT STANDARD CCFO CONTRIBUTING

1 Be culturally sensitive across a range of social contexts when communicating sales
strategies.

Level 5
78

Learner Guide

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Learner Guide

Module 1: Customer Purchasing Motives and Behaviour 9

UStd : 10066 : Establish customer needs and relationships

Module 2: Assess and respond to customer needs ......49

Learner Evaluation Form............................................71

UStd : 10066 : Establish customer needs and relationships

Welcome to the Unit Standard : Apply customer needs and relationships –

The purpose of this unit standard is to provide a solid foundation for

• Distinguishing customer purchasing motives and behaviours

• Assessing and responding to customer needs

2. About this Unit Standard : Apply customer needs and relationships

2.1 Unit Standard Alignment

Specific Outcome Assessment Criteria

Distinguish customer purchasing • Personal, social, cultural and

• Customer purchasing roles and

• Evaluation of customer purchasing

• Sales and service strategies are

UStd : 10066 : Establish customer needs and relationships

Specific Outcome Assessment Criteria

buying motives and behaviours

Assess and respond to customer • Customer needs and preferences are

• Sales and service strategies are

• Sales and service strategies are

2.2 Learning Units

This Programme has two (2) Modules to it:

Customer Purchasing Motives and Behaviour

Assess and respond to customer needs

The following table illustrates the specific outcome and assessment

Customer Purchasing Motives and

Assess and respond to customer needs SO 2 AC 1 to 3

UStd : 10066 : Establish customer needs and relationships

2.3 Learner Support

• The Facilitator is there to reasonably assist you during contact, practical

Please refer to the beginning of each module for the learning

3.1 Formative Assessment

3.2 Summative Assessment

You will be required to complete a Portfolio of Evidence for summative

DO NOT WAIT until the end – the programme is designed to

UStd : 10066 : Establish customer needs and relationships

If it is not documented, it did not happen!

In some evidence, the process you followed is more important

UStd : 10066 : Establish customer needs and relationships

4. Navigating the Learner Guide

4.1 Use of Icons

Group Activity / Pair Activity:

You will be required to complete an activity in your group or in

You will be required to complete an activity on your own that

Reflect on the question(s) asked to identify the relevance of

A useful tip or essential element regarding the concept under

UStd : 10066 : Establish customer needs and relationships

The following Learner Administration is critical in assisting your

Please take a moment to familiarize yourself with the

5.1 Attendance Register

5.2 Learner Registration Form

Without the Learner Registration and ID Documents we will not be

5.3 Programme Evaluation Form

At the end of the Learning Guide is a Learning programme Evaluation Form.

UStd : 10066 : Establish customer needs and relationships

Module 1: Customer Purchasing

The following learning outcomes are covered in this module.

The learner will be able to distinguish customer purchasing motives and

• Personal, social, cultural and psychological factors are