...for your coursework and the time spent during the tutorial will be much more productive!Tips: fill in as much as you can. When filling up the template always think of the arguments you have to support your decisions (you will need to demonstrate your argumentative and critical skills in the coursework). | Segmentation Identify key segmentation variables and segment the market into three segments.Key segmentation variables (think through as many as possible):‘Umbrella’ variable (e.g, benefits sought, lifestyle, age, income etc.):Your identified three distinct segments (they shouldn’t overlap): * Segment 1: People with chronic back pain. - Segment 2:People over the age of 55 * Segment 3:People who are of mid-level income , they don’t want to perform surgery since expensive and want a substitute with is of same quality but at a more acceptable cost. | Targeting Evaluate market segments and choose the target segment.Market attractiveness criteria (segment size, segment growth, segment profitability etc.):Business strength criteria (resources, skills and competencies etc.):How would you rank the segments based on the market attractiveness and business strength (you are not going to use any sophisticated tools at this stage, simply rely on your experience and understanding): * Highest potential: segment x * Medium potential: segment x * Lowest potential: segment xYour target segment (one of the three): | Positioning Think about how you are going...
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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...egmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices...
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...Starbucks 1.Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted the coffee market.? 2. What changed first—the Starbucks customer or the Starbucks Experience? Explain your response by discussing the principles of market targeting.? 3. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? 4. Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not? - Starbucks had made a goal and their initially segment was a Demographic segmentation -Starbuck or Schultz intentions to open 10,000 new stores in just four years and then push Starbucks to 40,000 stores. -In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries. Starbucks targeted the customer who fell in love with the Starbucks Experience who was: -Wealthier, better educated, and more professional than the average American. - More likely to be female than male. - Between the ages of 24 and 44. Starbucks customer changed first. There simply were not enough traditional customers around to fuel the kind of growth that Schultz sought. Starbucks became a less attractive place to hang out. The new breed of customer was less affluent, less educated, and less professional. As the customer profile evolved, the Starbucks Experience grew to mean something different. To the new breed of customer, it meant good coffee on the run. It was a place to meet and...
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...Market Segmentation of Kwality Walls Cornetto HUL had entered the ice-cream market through acquisitions of approximately 150 crores. It acquired Dollops from Cadbury’s in 1993 while it bought Kwality and Milkfood in 1995. Since Amul has entered into the ice-cream market, Walls has lost a huge market share to Amul. To again gain the lost market share, HUL has modified their market segmentation. On the basis of Density, it has segmented Indian market into Urban and rural area. It has decided to focus only on the urban segment specifically the top 6 metros of India. Over the years, it has expanded to the top 30 cities. The philosophy behind this decision is that the top 30 cities has 70% of total ice-cream consumers in India, i.e. the 30:70 principle. Kwality walls just want to increase the consumption of ice-creams in the markets in which they are present rather than entering into new market. HUL has also segmented the market based on demographics into three categories: Kids, Teenagers and Families. Cornetto as a brand Is targeted at teenagers while Paddle pop is for kids while red tub is for families. This kind of segmentation has allowed to create more consumption opportunity for different segments. For e.g. teenage hangouts for promotion of Cornetto. This segmentation also allows pricing based differentiation for the three segments. Paddle pop is sold at Rs.5 to Rs. 10, Cornetto for youth is priced between Rs. 20 and Rs. 30 while the family pack ice-creams are priced between...
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...can steal it from me to play Angry Birds), I am greeted with two pop-ups serving irrelevant daily deals, which I instinctively close without reading. The only time I might actually pay attention is when a friend emails or pings me via Facebook on a cool offer (Rally Car Racing lessons? Okay, now we’re talking). Most marketing emails that somehow slip through my spam filter also go unopened and unread, as I search for the email I really want to see: that my fantasy football trade was accepted (Tony Romo really is a horrible fantasy QB). The mail, the inserts, the pop-ups, the emails — they have all become nuisances and background noise. So is marketing dead? I hope not, because I’m basically a marketing guy. But I think classic “segmentation” based marketing is broken. We are all individuals with unique needs. And as much as marketers try, it’s hard to put us into “catch all” segments or clusters. As a former airline marketing VP, I have been part of the problem: so feel free to blame me first. We used to celebrate a 0.25% response rate to inserts in our airline credit card mailings. Really? So 99.75% of the people didn’t care about our offer. A 1% click-through on a keyword ad gets celebrated, too. So why do marketers celebrate irrelevance? Because the math still pens out: you can make money in the short term on a 0.25% response rate or a 1% click through rate. But what’s the long term cost? More important, what’s the lost opportunity? For the past couple of...
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...Data Analytics: A Marketing Segmentation Case Study T. Evgeniou, INSEAD J. Niessing, INSEAD The Iterative Process Cycle Data Preparation & Exploration Analysis Goal of Analysis Performance Assessment Segmentation Methodology – A(nother) Process 1 2 3 4 5 6 Identify Business Issues Clarify Scope and Dimensions Generate and Refine Hypotheses Decide on Data to use / Collect Needed Data Build the Segmentation Framework Link to Marketing & Business Strategy A Segmentation (micro-)Process • Segmentation solution is created through a rigorous and iterative process Data Processing/ Factor Analysis Cluster analyses Review and refine Why Segmentation? • SEGMENTATION is a critical enabler to achieve business objectives and realize benefits • SEGMENTATION is critical to identify white spaces for new products/offerings • SEGMENTATION helps organizations to optimize their retention and acquisition strategy • SEGMENTATION is often used to optimize pricing across different products • SEGMENTATION enables organizations to become more customercentric • MARKET DYNAMICS make segmentation critical to business success. Questions You Might Hear… These are only some of the issues that clients may raise that clue you in to appropriateness of segmentation Growth & New Opportunities Market Structure Product Development Channel Deployment Resource Allocation Retention...
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...and pearls. Blackball have own self packaging which every dessert box come with blackball’s logo (refer to appendix 1). Blackball provides free delivery services. For example, blackball in Singapore, they provide delivery services and send the dessert to the consumer place without extra changes. (Refer to appendix 2) 2.0 Market Segmentation Market Segmentation is the process of dividing a market into distinct groups of consumers who have different needs and wants. To classified the segmentation of consumer market can be based on different segmentation which is geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. 2.1 Geographic Geographic segmentation is dividing the consumer market into different geographical units such as nation, states, regions, counties, cities or neighborhoods. Over the worldwide, there are 50 blackball outlets across to many other countries love dessert such as Singapore, Malaysia, Indonesia, China and the origin country of the blackball – Taiwan. For instance in Singapore, to upsurge in their business, blackball segment their consumer market by geographic segmentation whereby there have 9 outlets across in Singapore such as Tampines, Jurong areas, central areas...
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...1. How would you define market segmentation? ( 5 marks) A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segment. Homogeneity 同质化, common needs within segment. Distinction区别, unique from other groups.Reaction活跃, similar response to market.For example, an athletic footwear company might have market segments for basketball players and long-distance runners. As distinct groups, basketball players and long-distance runners will respond to very different advertisements. 2. How do geographic segmentation and demographic segmentation differ? (10 marks) Geographic segmentation is based on climate, density, market size, world or states. Many companies use climate if their products or services rely on the weather, such as snow shovels, melting pavement salt, wave runners and boats. For example, USA is more interested in targeting geographic locations that are located near the park in a 100-mile radius. They believe some customers will fly in from out of state, so in addition, they will target large-density areas nearby. However, demographic segmentation is extremely important to all marketing departments since the data is easily available...
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...Chapter 09 Segmenting, Positioning, and Forecasting Markets Multiple Choice 1. The affluent Asian adult survey by Synovate __________ individuals according to their different attitudes, media exposures and habits, and product consumption patterns. a) categorizes b) ranks c) isolates d) distinguishes e) promote Ans: a Feedback: The individuals are categorized according to their different attitudes, media exposures and habits, and product consumption patterns. Page: 241 Learning Objective: 1 2. What can be concluded about the affluent Asian adults from the survey? a) Marketers should focus their marketing efforts on all groups b) Marketers may use different messages to sell the same products to same group c) Affluent adults in Asia are a homogenous group d) Marketers will not seek to reach out to them in the same way e) All of the above can be concluded from the survey Ans: d Feedback: Marketers will not treat them as one group, and will not seek to reach out to them in the same way. Page: 242 Learning Objective: 1 3. Which of the following statements about the affluent Asian adult is true? a) “Luxury Loyalists” tend to purchase more of the digital products such as laptops and MP3 players. b) “Executive Warriors” have the highest penetration for the Internet and usage of e-mail and instant messaging c) The “HUMmers,” hungry, urban, and mobile individuals, make up the largest group of affluent Asian adults d) The “Gimmes,” younger adults between...
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...Introduction: There are many ways for developing and adopting m market segments. Once the company identified its market segments opportunities, it must decide how many and which ones to target. To be effective in the market segmentations, market segments must be: • Measurable • Substantial • accessible The important component of Market segmentation is a market-based plans and strategy. Market segmentation allows businesses to concentrate on different needs of the costumers and different interest of certain goods and services in a different way from one another. “Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition” (McDonald & Dunbar, 2004). The basic and main reason for dividing the market into small segments is make more profit and to make it easier to address the requirements of smaller groups of customers and try to create different and other related products according to their intense lifestyles. Some of the basis of Market Segmentation depends on and affected by the following factors: • Gender: Men and women are different in their consuming habits and likings. Marketing strategy is required to address each market and each costumers. Producing bikes for females will be different that for males. Making bike helmets with pink colors and making helmets...
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...Chapter 1 Segmentation A segmentation strategy begins by selecting the bases representing the core attributes of a group of existing potential customers. 1. It must be noted that a single characteristics is never used alone and that virtually all segmentation plans are in the forms of hybrid segmentation that include attributes from 2 or more. | |Consumer-rooted |Consumption-specific | |Facts |Demographic factors |use-related characteristics | | |Geographic factors |use-situation factors | |cognitions |Psychological factors |benefit sought | | |Psychographic (lifestyle) characteristics |hybrid segmentation | | |Sociocultural variables | | 1. Facts can be determined from direct questioning and categorized by a single objective measure. (Quantitative) 2. Cognitions...
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...A true marketing orientation requires orgs to focus on meeting the needs of customers. Few companies can supple one product for all eg water supply utility. Most companies face an increase in fragmented markets. SEGMENTATION is about identifying groups of buyers within a market place who have needs that are distinctive in the way they deviate from the ‘average’ customer. Def ‘the identification of sub-sets of buyers within a market who share similar needs and who have similar buying processes’. There are many possible factors that might influence an individual’s choice of product/car (personalisation). The critical approach involves breaking down the ‘problem’ (how to persuade the customer to buy) into sub-problems. Criteria for effective segmentation…What is an appropriate basis for segmenting one market may not be appropriate to all markets. We consider 4 criteria when assessing the effectiveness of any segmentation: *usefulness to a company’s marketing planning; size of the resulting segments; their measurability; and their accessibility. This exercise is only useful to a company if it allows them to penetrate a greater proportion of its market that was not possible before taking out the exercise. Companies must be careful not to homogenise segments, as buyer views are always varied and diverse. Segment size-as they segments become smaller, you are closer to achieving marketing philosophy of satisfying each customers needs, but if they become too small they become uneconomic...
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...market segmentation. Answer The following is the criteria for a successful segmentation: Distinctive Clear difference in consumer preference for a product or service must exist Measurable/Identifiable Different preferences for a product or service must be identifiable and capable of being related to measurable variables. Substantial Must have enough size and purchasing power to be profitable. Actionable and Accessible The Firm must be able to respond to different preferences. Proposed market segment must be readily accessible and reachable with market programs. Evaluation of Kids market as a segment If we evaluate the Kids market to be segmented and targeted by the chain of hair salons, The Kids segment is a distinctive segment because there is a clear difference in service requirement of kids and elders, there is a difference in their taste and style as well. As stated in the above paragraph the difference in preferences is identifiable and can also be measured in terms of style, fashion etc. The third criteria is that the market must be substantial, for hair salons the kids are substantial in number and normally their parents pays their hair cutting charges, so not a big problem with purchasing power. In Hair salons situation they are able to respond to these preferences of kids, and the marketing can be done to the parents and kids with no extra costs. Conclusion The kids' market segmentation is a good idea and will increase the value of the business and consumer...
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