...SEGMENTATION AND TARGET MARKET PAPER Segmentation and Target Market Paper Marketing strategies such as segmentation are based on dividing a larger population of consumers into smaller segments that can be grouped by common needs and or priorities. These different groups can then be targeted by different marketing methods to entice them to purchase goods and services (Wikipedia-Market Segmentation, 2014). Marketing segmentation can be very important for a company because it can help the company expend its’ resources more efficiently. This will increase the return on investment of the money spent on marketing. It allows a company to target those consumers most likely to purchase from them. Best Buy is an electronics chain superstore that employs marketing segmentation and target marketing to more effectively increase sales. Marketing Segmentation Demographics Best Buy’s largest customer demographic population is the Baby Boomer population. Their most vital population segment is actually the young twenty-something’s to early 30s adults who are college educated and do not have children. This population is important because of their perceived preference for discriminating tastes and their exposure to a wider range of products and services due to their college education. Not having children is also an important factor as they can potentially have more disposable income to spend on themselves (Smith, 2012). Psychographics The psychological variables for this demographic...
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...Segmentation and Target Market Paper MKT 571 November 20, 2011 Introduction A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables by different sets of characteristics such as geographic, demographic, psychographic, and behavioral. (Kotler and Keller, 2012) Using this market-based strategy assist marketers to study the behavior of shoppers by categorizing markets. It also provide marketers a better vision to satisfy the needs and wants of customers and to gain more of their business. In this paper, I plan to discuss the market segments and target market of the small box discount retailer Dollar General, a retailer of name brand and private label products. Company Background J.L Turner and Sons Wholesale opened up their first store in 1939. Located in Scottsville, Kentucky, J. L. Turner and his son Cal Turner Sr. invested $5,000 each to begin a new partnership in dry goods as wholesalers selling to retailers. In 1945, the partners used a taunting strategy to gain business of farmers that landed success in the retail business. The luring strategy he used offered farmers from the tobacco field a free left-hand glove when they cashed their check, and offered the other glove if the farmers came to their stores. This unique strategy attracts the business of the farmers for additional items needed directly on pay day. After...
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...A++PAPER;http://www.homeworkproviders.com/shop/mkt-571-week-4-tapping-the-global-market/ MKT 571 WEEK 4 TAPPING THE GLOBAL MARKET MKT 571 Week 4 Tapping The Global Market PPT!! Determine Pricing Strategies Consumers often actively process price information, interpreting it from the context of prior purchasing experience, formal communications ( advertising, sales calls, and brochures), informal communications ( friends, colleagues, or family members). How consumers perceive prices and what they consider the current actual price to be (Kotler & Keller, 2012). Reference prices compare an observed price to an internal reference price they remember or an external frame of reference such as a posted regular retail price (Kotler & Keller, 2012). PRICE- QUALITY INFERENCES Many consumers use price as an indicator of quality. Higher- priced cars are perceived to possess high quality (Kotler & Keller, 2012). PRICE ENDINGS Many sellers believe prices should end in an odd number. Customers see an item priced at $ 299 as being in the $ 200 rather than the $ 300 range (Kotler & Keller, 2012). Selecting the pricing objective Survival - prices cover variable costs and some fixed costs, the company stays in business (Kotler & Keller, 2012). Maximum Current Profit - Many companies try to set a price that will maximize current profits (Kotler & Keller, 2012). Maximum Market Share – Higher sales volume will lead to lower unit costs and higher long- run profit...
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...Tia Crawford Marketing 571 January 7, 2016 Dr. Catherine Burr Segmentation and Target Paper: Neese’s Neese’s Country Sausage was established by J.T. Neese. He began delivering and selling sausage in 1917, using a covered wagon (Sausage, 2016). The Neese’s Company is located in Greensboro, North Carolina in Guilford County (Sausage, 2016). The family makes various food products that include sausage, souse meat, c-loaf, liver pudding, liver mush, and bacon (Sausage N., Products, 2016). The Neese’s Company has been able to identify itself as an independent market by determining the demands, needs, and wants of their customers (Dictionary, 2016). This process is called segmentation marketing (Dictionary, 2016). Neese's has been able to identify clearly the market and measure its effective size (Dictionary, 2016). The company has also established successful efforts of promotion and branding that have provided the ability to be a top competitor in the market. Demographic Company demographics provides knowledge and statistics of consumers and other clients (Suttle, 2016). Demographics is mostly used to point out differences in attributes among consumers (Suttle, 2016). The demographics for Neese’s consist of gender, race, location, and age. The company evaluates the trends of sales for customers in each area. Depending on the sales for the region, product trends are determined that can have an impact on sales. Future products are placed in markets and online for trial purposes...
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...Guillermo Furniture Store Concepts Paper FIN 571 Guillermo Furniture Store Concepts Paper Sonora, Mexico was the ideal location for Guillermo’s Furniture Store. An abundant supply of cheap timber and relatively cheap labor costs, Guillermo’s had been producing high quality products, mainly chairs and tables, selling at premium prices. Guillermo’s exclusivity came to an end; competition from overseas using high-tech manufacturing equipment eroded his business market share through lower prices. Sonora, once a sleepy village, has grown. Along with this growth has come is the influx of people, increased labor rates and material costs. Higher costs to produce, lower prices to sell, Guillermo’s Furniture Store faces the recurring problem through the market place, change. Guillermo’s looked at his competition, his operations, his customer base, and the potential for business into the future. Guillermo’s needed to re-establish their competitive advantage; a strategy and methodology to ensure increase in value through economic efficiency. Guillermo’s discovered many smaller companies were consolidating with larger companies through mergers or acquisitions. Large organization offer scale of magnitude and ability to adjust available resources resulting in consolidation of costs and efficiency with manufacturing. Guillermo’s was not interested in purchasing smaller locations or being acquired by another company. Guillermo’s could opt for the advantages of the lower manufacturing costs...
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...Guillermo’s Furniture Store Aleshia Huffman FIN 571 John Kushner April 29, 2013 Guillermo’s Furniture Store Guillermo’s Furniture Store, a once profitable business in Sonora, Mexico, has recently experienced some new competition and a decrease in profits. By using three different financial principles, Guillermo has been able to identify several possible solutions to his problem. While there is no clear “right” answer for his company, he has found three viable solutions to his loss of profits situation, including imitation, diversification, and using the theory of comparative advantage. The Behavioral Principle The behavioral principle states that you can “look for guidance in what other firms similar to your firm are currently doing and have done in the recent past” (Emery, Finnerty, & Stowe, Chapter 2, 2007). Basically, this principle says that you should look at others in your industry for direction on how you should proceed. In Guillermo’s case, he has researched his competition to see how they have managed to thrive in this new market situation. After finding out that many other companies are consolidating, he decided that was not the option for him; he does not want to lose his independence. Still, by looking at the competition, he was able to identify one solution to his profit loss: consolidation. The Principle of Diversification A second financial principle is the principle of diversification. The idea here is that investors do not want to invest...
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... Team A University of Phoenix MKT 571 Professor Kraus November 25, 2013 New Product Launch Marketing Plan, Part I Market Needs The market need for a new redesigned sneaker is very high in China and India, and in select markets of the United States. Consumers are interested in new ergonomically designed sneakers that support workouts instead of the average multi- purpose workout sneaker. Launching a new sneaker will make it convenient for consumers to derive the benefits of ergonomically supportive workouts that allow a more comfortable fit and lead to superior body support. Careful consideration of demographic factors reveals that young people will be the highest level of consumers of the new product. The rising level of health consciousness is forcing many manufacturers, including the standard sneaker manufacturers to offer more enhanced and functional products to consumers. Purchasing sneakers for use in gyms is increasing in India and China because of consumer awareness relating to the benefits of working out. Additionally, the product choices that consumers make in the United States are highly influenced by weight management programs and gym workouts. In the United States, the new sneaker subsector in select city environments would outperform the standard gym sneaker. Many consumers are seeking better value and a more ergonomic product because of the redesign of the standard sneaker (Jean-Francois, 2010). Market Growth The potential growth for a new ergonomically...
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...Miracle In The Andes Summary The Miracle In The Andes is a novel by Nando Parrado, and it is a real story happened in the 13th of the October in 1972. The novel talking about the Fairchild, an Uruguayan plane crashed in the Andes. The passengers on the plane were 45, and many of them were from the Old Christian rugby team include some of their family members. In the crash 40 members had survived from 45, and by the time they spend it on the Andes the number had reduced to 16. The novel also talking about the horrors they faced on the mountain like the cold, the lack of food and water, nevertheless; they experienced the death of their friends and family members. They learned many treks to keep them alive on the Andes, they learned how to stay warm, they melted the snow to drink and they ate the dead bodies flesh to survive from starvation. They tried desperately to climb the mountain, but their attempt failed. Nando Parrado did not want to die on the Andes like one of his friends, so he decided to climb. Even though he was afraid to face the Andes, but he made his destination to the west. Ten days after all the horrors, he and with two of his teammate found their way into the mountains. After they arrived home, Nando back to his normal life again, and he attained the promise that he made to himself that he will meet his father again, and he will enumerate how his Mom and Susy died on the Andes. Vocabulary P. 76 1. Claustrophobic: Uncomfortably closed or hemmed...
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...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...
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... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below: Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs. Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...
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... Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon zinc, miniature and rechargeable batteries. They produce more than...
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...Session 6 Article Summary—From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler Development of new trade networks feeding consumption have developed, influencing the way Africa integrates into the global economy. Dobler analyses different trade networks that link Oshikango, Nambibia to the world through four case studies on Scotch whisky, Brazilian furniture, Japanese used cars and Chinese sneakers commodities. Through the case studies, he exemplifies how there has been a shift from old colonial domination of trade to new manufacturing countries or trade routes, as well as the essential role of migrant entrepreneurs in these routes. The similarity underlying the different trade networks is that while the people involved in them are of different ethnicity or country of origin, they share the same profit-seeking motive and the opportunities in the international system shape them to become successful examples as facilitators of global trade. Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade ...
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... With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution will offset decreased margins. Additionally, by first “testing the waters” through distribution in other markets, RC can better target direct markets in which to serve. Open New Storefronts in Western Canada Roger’s Chocolates should utilize one of their core-competencies of the “retail experience,” to increase penetration in different markets. While opening new stores can be...
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