...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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...Introduction Market segmentation: The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. A market segment is a small unit within a large market comprising of like minded individuals. One market segment is totally distinct from the other segment. A market segment comprises of individuals who think on the same lines and have similar interests. The individuals from the same segment respond in a similar way to the fluctuations in the market. Levels of Market Segmentation: • Segment Marketing: It is identifying and targeting a group of customers who share a similar set of needs and wants. • Niche Marketing: The segment is further narrowed down to sub segments to target customer who want distinct benefits. The market size is smaller but the customer pays a premium • Local Marketing: Focusing the needs of customers in a particular locality and modifying accordingly. • Individual marketing: The ultimate level of segmentation .It is “customised marketing”. It allows the consumer to individually design or choose a product according to his requirement...
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...understand market segmentation one must first understand what marketing is. Marketing is defined as “a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Kotler, pg 2). Simply, marketing is finding what the consumers need, want, and demand and then finding ways to offer those needs, wants, and demands to them through marketing strategies. Market segmentation is defined as “the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs” (market segmentation, 2007). To show how a product is offered through market segmentation, we will explore the “Pro-Age” line offered by Dove. A relationship will be established between the product and the different market segmentations that relate to the product. Dove is a company owned by Unilever, Unilever owns many companies that produce consumer packaged goods, household products, foods and beverages, personal products, and specialty chemicals (dove.com). Dove is one of their many companies; they specialize in hair, face, and skin products primarily marketed toward women. Their line of “Pro-Age” products are designed for the “mature woman” therefore, they are marketed primarily for women over 40 years of age. The focus of this marketing segmentation comparison will be on the face products that are offered in the “Pro-Age” line. All the market segmentations described in the...
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...lifestyle descriptions would help in finding and developing the right dealers or stores as customers in these two markets. Background of the Problem: First, it is important to understand the meaning behind marketing segmentation, targeting, and positioning. After reading an article, “Market Analysis,” it provides the definitions of each of the three main issues to consider, “Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. After segmenting the market based on the different groups and classes, you will need to choose your targets. No one strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important. Positioning is developing a product and brand image in the minds of consumers. It can also include improving a customer's perception about the experience they will have if they choose to purchase your product or service. The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business' marketing mix. Effective positioning involves a good understanding of competing products and...
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....................................................................... 4 3. Defining a target audience .............................................................................................................. 5 3.1 Market segmentation .............................................................................................................................. 6 3.2 Demographic segmentation .................................................................................................................... 7 3.2.1 Age and life-cycle segmentation....................................................................................................... 7 3.2.2 Gender segmentation ....................................................................................................................... 8 3.2.3 Income segmentation ....................................................................................................................... 8 3.2.4 Generation segmentation ................................................................................................................. 8 3.2.5 Social Class segmentation ................................................................................................................ 8 3.3 Geographic segmentation...
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...Target marketing and segmentation: valid and useful tools for marketing Dennis J. Cahill North Union Associates, Inc., Cleveland, Ohio, USA Discusses Wright’s recent attack on targeting and segmentation theory. Proposes that, although Wright has some valid criticisms about specific applications of the concepts, targeting and segmentation are acceptable and defensible marketing strategies if properly designed. Gives some indications of possible methods for segmenting that may meet Wright’s criticisms. Recently, Malcom Wright presented a daunting challenge to the marketing discipline[1] – to justify the ongoing use of segmentation and target marketing. Although his article was written in response to what he characterized as a “startling” argument by Mitchell that zodiac signs be used for segmentation[2], he used the occasion to attack the concepts of segmentation and targeting per se. Although Mitchell’s example of zodiacal segmentation was perhaps light-hearted, his argument is not. Mitchell posits, as do most marketing academics and practitioners, that the firm will be better off – in terms of greater unit sales at (possibly) higher prices and/or lower cost of sales – by emphasizing our approach to certain groups of people and deemphasizing our approach to others. Wright’s argument In essence, Wright totally denies the validity of segmentation and targeting on two grounds. The first ground is that, for segmentation to have validity, the segments are associated with a...
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...Marketing Segmentation & Product Positioning Marketing Segmentation & Product Positioning Assignment # 1 October 20, 2011 Dr. Dotty Heady Strayer University Introduction to SKO The shoe industry, with $27 billion in annual revenue, has many household name brands and many levels of prices and quality. (firstresearch.com) A large part of that industry is athletic shoes or sneakers which are designed for sports and casual wear. Sneakers are a major facet in urban wear. The costs of popular sneakers range from $65 to over $100 a pair. For families who have multiple kids this is a costly expense. One child in addition to a pair of casual sneakers may need a pair for sports they play. Parents want their kids to have what they desire but this is not always feasible when faced with these costs. There are alternatives to the more popular brands but they are not always comparable. Kids aren’t always happy with the more affordable styles and options and parents may not be satisfied with the quality. Our company, SKO, is going to bridge that gap. The purpose of our company is to provide consumers with an alternative to the high price brands like Nike and Reebok and the lower quality brands at stores like Payless, Wal-Mart and Target. We want to provide well-made sneakers that are stylish and will stand up to the wear and tear that they are often up against. Our mission is to provide consumers with sneakers with cutting edge designs and quality construction at...
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...Segmentation and Target Marketing Andrew Swanson MKT/571 December 21, 2015 Steven Kraus Segmentation and Target Market Paper “Marketing 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...
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...Marketing Research and Segmentation Marketing for Health Care HCS/539 March 9, 2013 Marketing Research and Segmentation Marketing research is vital to the success of a health care organization. Researching patient demographics can prevent marketing errors that could close the doors of even the best hospital. Performing a lifestyle profile to be used as a demographic profile assists in segmenting the market, and provides insight into how community members will perceive the facility. Banner Boswell Medical Center (BBWMC) is located in Sun City, Arizona in Maricopa County. Patient demographics are distinctive and unique in Maricopa County, making comparative studies near impossible. BBWMC’s distinctive patient demographics make this health care organization the ideal subject for illustrating the important of marketing research and segmentation. Sun City population is 24, 132. The median age is 76.2, and the median income is $34,600 annually. Lifestyle Profile for BBWMC Psychography is an examination of how people live; their activities, interests, and opinions. Nielson’s: My Best Segments provided the most common segments for this zip code: * 49 American Classics – downscale mature without kids. The American Classics are typically retired home owners, live a comfortable lifestyle, and have deep ties to their neighborhood. Lifestyle and media traits include: ordering from Reader’s Digest, watching the Dr. Phil Show, and own Chevrolet Monte Carlo’s. * 46 Old...
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...Segmentation and Market Mix Michael A. Costa MKT/571 May 19, 2014 John Mullin Segmentation and Market Mix AutoZone is a unique company in its ability to market to a multitude of consumers. The company targets all consumers that own and operate motor driven equipment. AutoZone targets these consumers using a variety of segmentation methods. AutoZone segments its markets demographically, geographically, using psychographics, behaviorally, and using business segmentation to achieve its marketing goals. AutoZone understands that its customers will go to whichever company is willing to provide him or her with the best products at the right price. The company is willing to create the brands to entice consumers to pay more for higher quality products. AutoZone’s strategy has been to provide its customer with the best quality products at the right price. The company will only market those products it believes are the best for its customers. AutoZone markets itself to one type of consumer. When discussing AutoZone's patrons, the type of consumer refers to a large part of the population. AutoZone markets its products and services to any individual who owns and operates anything with a motor. The company markets its products to the do-it-yourselfer, the hobbyist, the backyard mechanic, the small business, and the individual that wants to purchase the product and use someone else to install it. The do-it-yourselfer market is what AutoZone is built on. This market...
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...Segmentation and Target Market Paper Menai Edwards Marketing (MKT 571) August 6, 2013 Professor: Susan Heywood In the following paper, I would like to focus on Marriott International, Inc., a leading lodging company with over 3,100 lodging properties in the United States and 66 other countries and territories (Marriott International, Inc. Corporate Headquarters, 2008). My key task is to discuss market segmentation, targeting and positioning strategies of the company with the following brands: Marriott Hotels & Resorts and Courtyard by Marriott in the same marketplace, Asia-Pacific. As the fast expansion in economy of Asia-Pacific, the hospitality industry has a bright perspective in this region. Especially in China, the hospitality industry during the past 30 years is a prime example of how the nation’s economy has also sharply developed. In recent years many big hotel chains became aware that seizing the market in Asia-Pacific is pretty important for their development. Marriott International is one of them. Since 1989, Marriott International has grown from one property in Asia-Pacific to over eighty properties. Over the past 16 years, Marriott has expanded its resort portfolio to include 15 resorts across the region. And in China since 1989, Marriott has grown from one property in Hong Kong to 32 hotels throughout the country (Marriott International, Inc. Corporate Headquarters, 2008). The hospitality industry today, customers don’t just need a place...
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...Target Marketing and Segmentation Answer 1 Market Segmentation Base As per the current business scenario, Shayna should segment the market on the following basis. Accessible: The selected segments should be reachable in terms of communication or distribution channels. Identifiable: The market segments should have differentiable measures that are easy to identify while segmenting them. Durable: The segments should be stable enough to manage changes in the cost of product offerings (McDonald, 2012). Substantial: The market segments should be large enough to justify the use of resources for targeting them. Unique Needs: The segments should be able to respond to marketing mix differences to justify separate offerings. By using all these variables, demographic segmentation strategy will be used to segment the target market. It will also cover age, occupation, income, attitude, buying pattern etc. Answer 2 Matrix for Potential Profile |Teenagers |University Students | |13-17 Years |18-23 Years | |Prefer Top and dresses |Prefer top and accessories | |Expend Average |Expend more as compared to teens ...
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...Marketing Research and Segmentation Problem Ashley S. Ray HCS 549 December 24, 2012 Andrea Linder Marketing Research and Segmentation Problem Research guides your business’s marketing plan and the four P’s of marketing: product, price, place and promotion. This research gives one the information to determine the essential details of each crucial variable. Sales research helps determine where to place your product- geographically as well as an online strategy. Demographic research details habits of your consumers, including where they get their information so one can make smart advertising buys to promote products or services. Obstetrics and Gynecology Specialists is located in Macon, Georgia. This facility has been caring for generations since 1949. This practice is solely devoted to the care of female patients for the aspects of obstetrics, endocrinology, infertility, office gynecology and gynecological surgery. This practice operates as associates and one physician is always available for obstetrical care or gynecological care, office visits, hospital treatment, or telephone consultation. They offer complete gynecological care with a large amount of the practice being devoted to problems of the pelvic organs, breast, hormones, endocrine problems, infertility, sexual counseling, and routine exams. Obstetrical care is offered for both normal and complicated pregnancies. Once the patient comes to the office, the course of labor and delivery will be discussed...
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...1. What is the importance of segmentation to marketing, and how is it used in database marketing? To execute different marketing actions and strategies, segmentation is a must. Especially in the increasingly divided market. One size fit all doesn’t work anymore. Without segmenting, marketing efforts would be completely lost and profit not maximized. Segmentation provides a road map for the marketer, to know exactly which product is most suitable for which segment of the market. Moreover, segmentation helps predict future behaviors and market trends. In order to properly segment a market, information needs to be collected that represents the market to analyze their needs, wants, buying behaviors etc. This is where database marketing comes. Segmenting the customer database into submarkets allows for more effective marketing of products and services. 2. What variables might be used in database segmentation? Industry category, Household size, Geographic location and Psychographics. 3. Describe how tabulation techniques are used to segment a database. Based on historical information databases large samples are created. After that the samples data is divided in three ways based on an analysis of historical response data in conjunction with marketing assumptions. Recency of purchases, frequency of purchases and money spent are elements used to segment the data. 4. What is RFM and how is it used to segment a database? What are the limitations of formal RFM techniques? ...
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...Marketing Segmentation and Product Positioning Marketing Segmentation and Product Positioning According to the author, Dawn Iacobucci of our textbook, Marketing Management, in our society economists say that “imperfect competition exists” meaning that “consumers have unique needs and desires; so collectively, a marketplace of consumers is heterogeneous“ (Iacobucci, 2010, p. 15). This methodology takes into account the distinction and diversity of individuality of the consumers; each consumer has their own different perceptions, experiences, and preferences requiring that different products be produced in order to meet their different segment needs (Iacobucci, 2010). Consumer purchasing is motivated by many different needs ranging from basic biological needs to more intangible and conceptual needs that reflect their personal well-being (Iacobucci, 2010). The strategy used to address customer’s unique differences and Therefore, a market segment is a group of consumers that shares similar inclinations toward your brand (Iacobucci, 2010, p. 16). If marketing were a continuum, the extremes would be “mass marketing” and “one-to-marketing” with “market segmentation” representing the median. The Frat House will utilize a concentration approach marketing strategy, a market segmentation approach whereby a company develops one marketing strategy for a single segment (Ferrell, Hirt, & Ferrell, 2009, p. 371.) It will attempt to cater to the varied taste, needs,...
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