...Evaluation of current geographic, psychographic, demographic and behavioral segmentation variables. b. Evaluation of current cultural, social and personal factors of the consumer market. c. Recommendations for market segmentation strategies. i. Does one segment look more promising than others? ii. Should one segment be dropped? iii. What factors support your recommendation? 4. Submit as a Word document via the WS2 CP Paper - Submit Assignments link. Title your document WS2 CP Paper. For more information on how to submit assignments see Workshop One. 5. For grading criteria, refer to the Paper Writing Rubric below. Market Segmentation a) Consumer markets are formed into segments based on descriptive characteristics: geographic, demographic, psychographic and behavioral. Geographic segmentation divides the market into nations, states, regions, counties, cities or neighborhoods. Demographic segmentation divides the market based on variable such as age, gender, income, generation, social class and life-stage. Psychographic segmentation is using psychology and demographics to understand the consumer better. This segmentation divides groups’ based on psychological/personality traits, lifestyles or values. Behavioral segmentation is based on the attitude toward, use of and response to buy a product. b) The team I chose is the Chicago White Sox. The White Sox one of the first American League teams to form in 1900. c) Geographic Segmentation: The Chicago...
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...segmentation and targeting are particularly important for finding customers that are the best match for a business’s products and services” (Suttle, 2014, ¶ 2) This statement speaks directly to the ideal scenario every company hopes to find; one where it’s strengths as a product and service provider are best matched with the client and consumer base most in need of these outputs. When reviewing soft drinks giant Coca Cola, we find a company that specializes in diversity; dominating the world’s beverage market with a wide variety of product choices specifically targeted to the most opportune consumers. The paper that follows will outline several critical market segments used by the company including overviews on demographic, psychographic, geographic and behavioral characteristics of the Coca-Cola Company. Coca Cola’s target markets and the company’s plans for targeting these markets will also be discussed, and a proposed positioning statement for the company will also be introduced. Company Overview Founded in 1886, The Coca-Cola Company is headquartered in Atlanta GA, and “is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands.” (Coca-Cola Company, 2015). Coca-Cola’s mission focuses on consistently transforming its product line to stay in step with the demands of its consumers, a challenge the company has successfully achieved for the past 129 years. We can see this dynamic drive clearly stated in the company’s mission statement...
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...?Purpose: The main aim of this paper is to propose a market segmentation approach based on all phases of wine purchase and consumption process. To this aim, we investigated the main components of wine purchasing behavior and the socio-demographic profile of those who are both wine buyers and consumers. ?Design/methodology/approach: Starting from consumer behavior literature, we identified six phases in the purchasing process and we operationalized each of them. A structured questionnaire was developed according to such framework and an empirical study was carried out. We realized 630 interviews to wine buyers and consumers. Then, we performed a cluster analysis in order to identify the most relevant market segments. ?Findings: Four main segments emerged from the cluster analysis. A description of demographic and behavioral features characterizing the identified segments is provided. ?Practical implications: The proposed framework may provide a clear guidance to reach a market segmentation able to address effectively the marketing strategies. By characterizing different groups of consumers on the base of multiple variables related to each phase of the purchasing process, the proposed segmentation has implications both for strategic decisions, such as positioning, and operative ones (i.e. product, price, place, promotion). 1. INTRODUCTION In the last decades wine market has been characterized by radical changes on both sides of supply and demand, thus making...
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...8 IDENTIFYING MARKET SEGMENTS AND TARGETS Markets are not homogeneous. A company needs to identify which market segments it can serve effectively. Such decisions require a keen understanding of consumer behavior and careful strategic thinking. To compete more effectively companies are now embracing target marketing. Effective target marketing requires that marketers: Identify and profile distinct groups of buyers who differ in their needs and preferences. Select one or more market segments to enter. For each target market, establish and communicate the distinctive benefit(s) of the company’s market offering. Levels of Market Segmentation The starting point for discussing segmentation is mass marketing. In mass marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers. A) The argument for mass marketing is that it creates the largest potential market, which leads, to the lowest costs that in turn can lead to lower prices or higher margins. Segment Marketing A market segment consists of a group of customers who share a similar set of needs and wants. A) The marketer does not create the segments. B) The marketer’s task is to identify the segments and decide which one(s) to target. C) A flexible market offering consists of two parts: 1) A naked solution containing the product and service elements that all segment member’s value. 2) Discretionary...
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...Internet marketing, also referred to as i-marketing, web-marketing, online-marketing, Search Engine Marketing (SEM) or e-Marketing, is the marketing of products or services over the Internet. The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet, e-mail, and wireless media, but it includes management of digital customer data and electronic customer relationship management (ECRM) systems. Internet marketing ties together creative and technical aspects of the Internet, including: design, development, advertising, and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing(SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.0 strategies. In 2008 The New York Times, working with comScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential...
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...segmentation variables as geographic, demographic, psychographic and behavioral segmentation” (Kotler & Keller, 2012, p. 214) There is a real need for market segmentation because different customers have different needs, and it is rarely possible to satisfy all customers by treating them alike. When you target a market, you are basically recognizing the fact that customers are different and have different needs. A respectable market segmentation will result in segment members that are as similar as possible within the segment, and as different as possible between segments. Variables to Segment Target Markets Geographic Segments Examples of geographic variables are regions, which include continent, country state and even neighborhoods; next there is size of metropolitan area segmented by population; then there is the density of the population, meaning is the target urban, suburban or rural; lastly, climate could be another segment. Demographic Segments Some demographic segmentation variables include: age, gender, generation, family size, income, occupation, education, ethnicity, and religion to name a few. Jayson DeMers, a Forbes Magazine contributor states, “a strong understanding of your audience is one of the best ways to ensure success” (DeMers, 2013). He also states that, “demographic profiles are limited in their potential to uncover motivation and buying patterns, but you should always build you profiles on a solid demographic base” (DeMers, 2013). ...
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...including demographics, psychographics, product benefits sought and product usage-related factors. 2.3 Behavioral targeting and its key role in today’s marketing. 2.4 How to position, differentiate and reposition products. CHAPTER SUMMARY Learning Objective 2.1: To understand the interrelationship among market segmentation, targeting and positioning and how to select the best target markets. Segmentation is defined as the process of dividing a potential market into distinct subsets of consumers with a common need or characteristic and selecting one or more segments to target with a specially designed marketing mix. Besides aiding in the development of new products, segmentation studies assist in the redesign and repositioning of existing products, in the creation of promotional appeals, and the selection of advertising media. In order to be a viable target market, a segment must be identifiable (by some criteria such as demographics, lifestyles, or others), sizeable (i.e., large enough to be profitable), stable or growing, accessible (i.e., can be reached economically), and congruent with the marketer’s objectives and resources. Learning Objective 2.2: To understand the bases used to segment consumers, including demographics, psychographics, product benefits consumers seek, and other product usage-related factors. A segmentation strategy begins by dividing the market for a product into groups that are relatively homogeneous and share characteristics that...
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...proper positioning and segmentation of the market. Market segmentation is to divide the broad market into a smaller group according to different criterions and the target market is the group of customers a company wants to serve. “Market segmentation does matter as it helps to craft messages for a definite audience” (Diamandies & Kotler, 2015). For this paper, I have selected McDonalds for discussion. As a company McDonalds has a great reputation as Pfeffer (2006) suggested, “even if the world ends, McDonald’s would still be open”. This paper provides an adequate discussion regarding the market segmentation and positioning strategy followed by McDonalds. McDonalds has segmented its market according to demographic, psychographic, geographic, and behavioral characteristics. They also have segmentation among students, kids, and family. Their positioning strategy has given them an extra edge to become one of the largest chains around the world. Company Overview McDonald's Corporation has been the world's largest chain of hamburger fast food restaurants. It serves approximately 68 million customers in 119 countries in 35,000 outlets around the world. Richard and Maurice McDonald founded McDonald’s in 1940. In 1960, the advertising campaign named "Look for the Golden Arches" gave the company a great sales boost. In 1954, Ray Kroc joined and suggested to franchise the restaurants throughout the countries. McDonalds used its corporate logo from November 18, 1968 to 2006. McDonalds...
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...designer for many of their personal computer games including Wolfenstein 3D, Doom, and Quake. 3 4 5 6 **important** 7 8 9 Demographics easy to measure; easy to obtain 10 **important** Market Segmentation – Identify and profile distinct groups of buyers who differ in their needs and wants. Market Targeting – Select one or more market segments to enter. Market Positioning – For each target segment, establish and communicate the distinctive benefit(s) of the company’s market offering. 11 A market segment consists of a group of customers who share a similar set of needs and wants. Major segmentation variables are: • Geographic, • Demographic • Psychographic • Behavioral 12 E 13 Geographic segmentation divides the market by nations, states, regions, counties, cities, or neighborhoods. Nielsen Claritas developed PRIZM NE, a geoclustering approach that combines geographic data with demographic data that yields richer descriptions of consumers and neighborhoods. The groupings take into consideration 39 factors from 5 broad categories: (1) education and affluence, (2) family life cycle, (3) urbanization, (4) race and ethnicity, and (5) mobility. Inhabitants in a cluster tend to lead similar lives, drive similar cars, have similar jobs, and read similar magazines. 15 Geographic segmentation divides the market by nations, states, regions, counties, cities, or...
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...needed, founder of the American working class to seize the opportunity of rapid economic development under the convenient diet, targeting market segments and demand characteristics, the product of precise positioning and quick success. Today McDonald's has grown into the world's largest restaurant group in 109 countries opened a 25,000 stores, annual turnover of over 3.4 billion U.S. dollars. II. Analysis McDonald's can be seen from the development processing, McDonald's grasp of market segmentation for positioning is very accurate, which is one important reason for the success of McDonald's. Consumer market segments based primarily geographical factors, human factors, psychological factors, buy behavioral factors, each consumer group is a market segment, each segment is made with the same needs and desires of consumers buying group composed of McDonald's is based on geographic, demographic and psychological factors were accurate market subdivision, and implement the appropriate strategy to achieve its marketing goals. On geographical factors, different regions have different overall eating habits and cultural backgrounds. McDonald had adequate market research, a full analysis of regional differences. Things as who the U.S. Department of coffee taste is not the same, we must the market segments for different geographic units operating activities to be adapted to local conditions. McDonald's will spend a lot of money each year for serious market research, research portfolio around...
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...Introduction Marketing is one of the important element for any successful business because it is all about letting people know what is the products/services of the company and how do you persuade them to purchase your products/services. Marketing strategy is a process which allows a company to concentrate on its limited resources and increase its sales as the greatest opportunities ad achieve a sustainable competitive advantage. The key concept of market strategy is centered on the customer satisfaction as the main goal. A marketing strategy combines product development, promotion, distribution, pricing, management relationship and other element which identifies the company’s marketing goals and explains how marketing strategy determines the choices of target market segments, marketing mix, positions and allocation of resources. It is the most effective when it is an integrated component of all firm strategy by defining how company will successfully engage the customer’s prospects and competitors in the market arena. Market strategy is changing therefore we need a marketing strategy for each product. In this assignment we are going to develop a marketing strategy for a product Tanuf mineral water. The product is from the National Mineral Water Co. SAGOG. Was set up in 1979 with technical expertise from Evian France- world leaders in the field of national mineral water. ...
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...What’s on the MCAT2015 Exam? Psychological, Social, and Biological Foundations of Behavior What will the Psychological, Social, and Biological Foundations of Behavior section test? The Psychological, Social, and Biological Foundations of Behavior section asks you to solve problems by combining your knowledge of foundational concepts with your scientific inquiry and reasoning skills. This section tests your understanding of the ways psychological, social, and biological factors influence perceptions and reactions to the world; behavior and behavior change; what people think about themselves and others; the cultural and social differences that influence well-being; and the relationships between social stratification, access to resources, and well-being. The Psychological, Social, and Biological Foundations of Behavior section emphasizes concepts that tomorrow’s doctors need to know in order to serve an increasingly diverse population and have a clear understanding of the impact of behavior on health. Further, it communicates the need for future physicians to be prepared to deal with the human and social issues of medicine. This section is designed to • • • • • test psychology, sociology, and biology concepts that provide a solid foundation for learning in medical school about the behavioral and sociocultural determinants of health; test concepts taught at many colleges and universities in first-semester psychology and sociology courses; test biology concepts that relate to mental...
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...DETERMINING TARGET AUDIENCE After the opportunity analysis and competitive analysis the next step is to determine the target audience. Target markets are groups of individuals separated by distinguishable and noticeable characteristics . A company may have identified its target market, but selling its product may entail identifying even smaller, better defined target groups.A target audience and a target market can be formed of people of a certain age group, gender, or marital status. Target audience is specific group of people at which product is aimed at. Target audience determination is important part of the marketing strategy and has a direct impact on the advertising efforts . Examples * CVS Caremark's target market is women since they make up 80 percent of the pharmacy chain’s customers. CVS has marketed its stores to aid women who are constantly multitasking. They recently redesigned 1,200 of its 6,200 stores to appeal to women, including shorter wait times for prescriptions, wider and better-lit shopping aisles, and more beauty products. * If a company wants to sell a diet program for men with heart disease problem the communication may be aimed at the spouse who takes care of the nutrition plan of her husband and child. The companies often develop different marketing strategies for different consumer needs . the process by which they do this is known as target marketing . and it involve four basic steps . THE TARGET MARKETING PROCESS 1) IDENTIFYING MARKETS...
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...Marketing Principles Contents Introduction. 2 Task 1 3 L.O 1: Understanding the concept and process of marketing 3 A.C 1.1: Various elements of the marketing process 3 A.C 1.2: Cost and benefit of the marketing orientation of the selected organization. 4 L O 2: Using the concept of segmentation, targeting and positioning. 5 2.1: Micro and macro environmental factors that influence marketing decisions. 5 A.C 2.2: Segmentation criteria to be used for products in different markets. 6 A.C 2.3: Targeting strategy for a selected products and services. 7 A.C 2.4: How buyer behavior affects marketing activities in different buying situations. 8 A.C 2.5: New positioning strategy for a selected product and service. 9 LO 3: Understanding the individual elements in the extended marketing mix. 10 A.C 3.1: How products are developed to sustain competitive advantages. 10 A.C 3.2: How distribution is arranged to provide customer convenience. 11 A.C 3.3: How prices are set to reflect an organizations objectives and market conditions. 12 A.C 3.4: How promotional activities are integrated to achieve marketing objectives. 13 A.C 3.5: Additional elements of the extended marketing mix. 14 Task 2 15 LO 4: Using the marketing mix in different context. 15 A.C 4.1: marketing mixes for two different segments in consumer market. 15 A.C 4.2: Differences in marketing products and services to business rather than consumers. 16 A.C 4.3: How and why domestic marketing...
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...discover the relationship. Before you understand the relationship you need to define consumer psychology. The consumer is a person or thing that consumes and economically the definition is a person or organizations that use a commodity or service. (Dictionary, 2015). Psychology defined as the behavioral and cognitive characteristics of a specific individual, group, activity, or circumstance. (Dictionary, 2015). Another definition is the scientific study of mental processes and behavior. (Dictionary, 2015). Consumer Psychology is both of the definitions put together. The definition is the study of how consumers relate to the products they buy and services they use. Marketers use psychology to understand the consumer needs, motivation, attitude, and actions. (Mihart, 2012). Professional Marketer increase with better measurements and deeper understanding of the customers. (Sheth, 1976). Learning the needs, motivation, attitude and actions of the consumer will help you build marketing communication that target particular audiences and build the brand name. In article one, “Models of buyer behavior conceptual” by Jadish Sheth, discusses how the consumer psychology started. The study of behavioral concepts borrowed from psychology and...
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