Question

Option 4: Illustrate each of the steps in the purchase funnel for a customer buying a mid-sized SUV. Describe why certain customers move through at each stage while others do not. What should firms do to maximize effectiveness at each stage through marketing tactics? What metrics are important to measure and why?

Answer 1

Steps in purchase funnel for a customer buying a mid-sized SUV:

I. Identification of the problem/ need.

II. Searching information about the product that is needed to be purchased.

III. Evaluating all the available brands of SUV in the market

. IV. Taking the purchase decision.

V. Analyzing after-sale services of the company.

Some customers may not go through all these steps. For example, a customer may skip the second step because he already has information related to products from past experience of knowledge and going through the step again will be a waste of time for him.

The firm should continuously advertise its product at each stage with the help of various marketing tactics. This will help the firm to attract buyers and increase sales.

Customer relations, customer retention rates, customer reach, marketing practices and others are important metrics to measure because addressing these areas will help the seller to identify the behaviour of customers and their need. They will be able to understand customers and their preferences better. This will also help them in building a close relationship with customers and increase customer loyalty.