...Segmentation and Target Market of State Farm Segmentation and Target Market of State Farm Over the past 10 to 20 years the personal lines insurance industry has had to increase its spending on marketing substantially with hopes of drawing in on customer loyalty. In 2011 the industry spent almost $6 billion on market, which is nearly three times what was spent a decade earlier. The downside to this is, while marketing spending has increased over 15 percent, the industry premiums growth remains almost unchanged. State Farm originated in Bloomington, Illinois June 7, 1922 and was founded by retired farmer, George J. Mecheire. Mecheire deemed State Farm insurance company owned by its policy holders, which specialized solely in automobile insurance for farmers. . The company now has a large grouping of insurance and financial services companies throughout the United States and Canada. State Farm is ranked 44th in the Fortune 500, which list companies based on general revenue for the current year. State Farm continues to lead the insurance market by realizing when it is time to make a change. The company primarily deals in the baby boomer market as this is the majority of their business even today. However, when realizing that its competitors are focusing more on price point and online functionality, the company chose to still keep its “good neighbor” and personal agent branding but offer consumers the ability to still do a bit of the...
Words: 1530 - Pages: 7
...Segmentation and Target Market Jennifer Jepsen MRK/571 November 17, 2015 Carol Webster The company selected is Procter & Gamble (P&G), a large consumer goods firm that produces many brands. This company has brands such as Oil of Olay, Bounty, Dawn, CoverGirl, and Duracell (Duhigg, 2012). P& G utilizes a multiple brand strategy successfully, and has influenced air care with another brand—Febreze. According to the 2012 Silver Effie Winner, “North America is the largest Febreze market in the world representing 43% total revenue and has the largest media spend” (Effie Awards, 2012, p. 2). Additionally, the Febreze market is diverse due to the diverse cultures, different languages, and attitudes P & G faces by marketing in multiple countries. Marketing Segmentation Market segmentations to consider are demographic, psychographic, and behavioral characteristic aspects. The demographic segmentation, described by Kotler & Keller (2012), says the market is divided into geographical units such as nations, states, or cities. Febreze used the marketing launch of Breathe Happy campaign by unit of countries. Therefore, Febreze utilizes a single-segment concentration. With a single-segment concentration the chance to gain knowledge results in a strong market presence. Alan Shaw states that “segmentation is essentially a classification exercise, in which individuals are believed to be related in certain ways” (2011, p. 256). Shaw references that Kotler suggests...
Words: 1183 - Pages: 5
...Segmentation and Target Market XXXXXXX MKT/571 - Marketing November 22, 2014 xxxxxxxxx Segmentation and Target Market In business marketing, market segmentation and targeting specific markets aids organizations by reducing the risks involved in decisions of how, where, when, and with whom the brand, product, or service will be advertised, directed, or promoted to. Positioning the product or service to the accurate target while controlling the marketing budget are tactics used by marketing professionals to assure reaching the largest target group and controlling costs (Boundless, 2014). Attracting the right customer is the ultimate objective of targeting specific markets by directing the research and efforts in a manner consistent with and specific to those particular segments characteristics. Segmentation divides the consumers into groups with similar desires by examining demographic, psychographic, geographic, and behavioral individualities (Kotler & Keller, 2012). Branding and strategy is equally important and will be discussed later in the positioning statement. Target marketing and segmentation for Costco Wholesale is unique to other retail business as it operates as a member-only warehouse club. Costco initially opened the doors as Price Club in 1976 and operates domestically and internationally in 663 locations worldwide, and is headquartered in Issaquah, Washington (Costco Wholesale, 2014). The original target focus for the warehouses were designed...
Words: 1485 - Pages: 6
...Segmentation and Target Market MKT/571 January 26, 2015 Dawn Obermoeller Segmentation and Target Market Understanding the current demands of consumers is key to determining new ideas, knowing how to present those ideas to the public, and ensuring a better chance at success. When first putting together the business plan for a new product, product suppliers need to evaluate and monitor their target market; after of course determining what the target market may be. Airguard has been in business since 1964 and has continuously tackled the competitive industry of air, oil, and water filtration. With their success since the beginning, they have successfully shown their understanding of how to target consumers and maintain them. Positioning Statement For residential and commercial filter users, Airguard’s DP40 brand pleated filters rank amongst the highest in quality and durability for any user, as the newest technology in filter manufacturing is used to construct the most efficient filters. Airguard’s patented technology allows the product to be just as effective as their biggest competitors but at a lower price bracket. As these products are usable by both residential and business consumers, the DP40 filter can last up to three months which in turn saves the end user even more money. Market Segmentation With Airguard being a major manufacturer in the filter industry, it is impossible for them to target all potential consumers. In order for Airguard to be...
Words: 1143 - Pages: 5
...Segmentation and Target Market MKT 571 May 25, 2015 Segmentation and Target Market “Wal-Mart helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices. Each week, more than 245 million customers and members visit our nearly 11,000 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 net sales of $482.2 billion, Wal-Mart employs 2.2 million associates worldwide” (Wal-Mart, 2015). Wal-Mart has a market segmentation of being a discount “big box” store with products that everyone can afford. The Wal-Mart stores also have Wal-Mart Supercenters that sell a mixture of retail items, food items, service centers and specialty items. The Wal-Mart brand also has membership clubs, Sam’s Club, and Wal-Mart online shopping stores. The mission Wal-Mart wants to pass on to its customers is to Save Money and Live Better (Wal-Mart 2014 Annual Report, 2014). This paper will discuss Wal-Mart’s demographic, psychographic, and geographic and behavior characteristics for the Wal-Mart family of retail stores. A positioning statement will also be discussed. The demographics for Wal-Mart have changed from traditional days of family shopping. Wal-Mart's targeted demographic includes families and individuals with modest incomes. Wal-Mart shoppers are typically interested in the value of the products offered, and less interested in product branding. According...
Words: 1131 - Pages: 5
...Segmentation and Target Market Paper State Farm originated in Bloomington, Illinois June 7, 1922 and was founded by retired farmer, George J. Mecheire. Mecheire deemed State Farm insurance company owned by its policy holders, which specialized solely in automobile insurance for farmers. . The company now has a large grouping of insurance and financial services companies throughout the United States and Canada. “State Farm is ranked 41th in the Fortune 500, which list companies based on general revenue for the current year” ("Fortune 500", 2014). State Farm continues to lead the insurance market by realizing when it is time to make a change. The company primarily deals in the baby boomer market as this is the majority of their business even today. However, when realizing that its competitors are focusing more on price point and online functionality, the company chose to still keep its “good neighbor” and personal agent branding but offer consumers the ability to still do a bit of the leg work on their if they chose to. State Farm and Demographic Segmentation Among the most common market segmentation parameters, demographics play an important role in an organization’s upcoming marketing strategies. With this strategy a company might simply divide a larger area into specific consumer traits. Traits such as age, income, gender, race, occupation, education, race, gender, marital status, occupation, education and income are among the most commonly considered demographics segmentation...
Words: 1459 - Pages: 6
...Divide the market for this business offering into segments and describe each segment in detail. Make and justify a decision about which one (or more) of the market segments should be targeted. For a customer-driven marketing strategy, first, we have to segment the market, which there is no single way to do it. We should try and analysis different segmentation variables and then decide which one or which combination we should targeted. There are four major segmentation variables for consumer markets which are geographic segmentation demographic segmentation psychographic segmentation and behavioural segmentation. First, we are going to think about the geographic segmentation which dividing a market into different geographical units. Our business idea will allocated in Saskatoon, however, for the rural community are also lack of the service of acting school, so we should spreading our advertisements all over the small towns around Saskatoon which means we are focus on the Saskatoon local people and also the rural community around the city. So, from geographic segmentation, our major target would be the population from Saskatoon and rural community around the city. Second, we are going to think about demographic segmentation which divides the market into segments based on variables such as age, gender, family size, life cycle, household income. Since our business idea is acting studio which is more attractive to young people, so I think our major target would be from 15 to 25...
Words: 488 - Pages: 2
...Broadening Your Perspective Demarcus B. Wilson Accounting 561 June-26, 2012 Edward Hastings Abstract In this paper I will discuss the doughnuts business called Super Bakery, Inc. owned by Pittsburgh Steelers' running back Franco Harris. I talk about the different types of ABC systems, which one they used to operate their company, and what changes they had to make to insure that the business continued make a profit while providing excellent service to their customers. Broadening Your Perspective The Super Bakery, Inc. is a Doughnuts company created in 1990 by former Pittsburgh Steelers' running back Franco Harris. They specialize in making vitamin and protein-enriched doughnuts. When the company first started they implemented a standard price for the service no matter where their customers were located. They were operating under the ABC system fixed cost. Fixed cost is a set price for a product or service; items that are related to fixed cost are rent, house payments, and car notes. A lot of businesses use this practice when they have the type of business that has requiring clients. When Super Bakery first started with this cost system on paper it made a lot of sense. Find out what it takes to make the product, find a comfortable margin, and sell. As the company grew it cost more money to get the company the product due to the wide range of locations they were shipping. Soon before later the company seen where they were starting to lose money, so management came together...
Words: 708 - Pages: 3
...Segmentation and Target Market for Southwest Airlines Steven Garnes MKT/571 August 10, 2015 Denise A. Rueb Segmentation and Target Market for Southwest Airlines Introduction Southwest Airlines was formed in 1967 by Rollin King and Herb Kelleher and started service in June of 1971. The airline is headquartered in Dallas, Texas and originally operated flights within the state of Texas. The company has since expanded and now operates flights from Dallas to almost all major cities in the United States and is considered the largest low-cost carrier in the country. “Southwest seeks to offer a travel product that is built around flights targeted to specific demographics and ticket pricing that is simplified so that passengers know exactly what they getting for what they pay” (Bhutada, 2009). Market Brand Southwest has created a strong market brand by focusing on points of difference. “Points of difference are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand” (Kotler, Keller, 2012). The points of difference for Southwest has been its focus on reliability, the value the airline offers its customers, and the fact it’s a fun airline to fly. Target Market Market segmentation in the airline industry is not as straightforward as it may seem. Airlines may consider it common sense to simply separate the market into business and economy class passengers. “However...
Words: 2006 - Pages: 9
...Segmentation and Target Market for Samuel Adams Kevin Galetto MKT/571 October 8,2014 James McCarthy Segmentation and Target Market for Samuel Adams Samuel Adams Boston Lager is a Boston Beer Company that was founded in 1984 by Jim Koch. Jim used his great–great–grandfather’s 1870 beer recipe to produce one of the most successful microbreweries in the United States. Samuel Adams produces quality craft beers and is perfectly positioned to capture a major segment of the American beer industry. Samuel Adams has produced double-digit growth in the custom handcrafted beer market and has developed new technology in brewing techniques and packaging to offer connoisseurs fresher beer in the most efficient and expeditious manner possible. Samuel Adams targets import beer drinkers, bar and restaurant decision makers and bartenders. The marketing team of Samuel Adams tries to educate potential customers using grassroots marketing campaigns and face-to-face customer communications. What they found was that import beer drinkers were making irrational decisions to drink import beers. They were not drinking import beers because of the taste, but because of tradition and did not know that handcrafted beer did not need to taste bitter. Samuel Adams set out to change the perception of custom crafted beers, one beer drinker at a time. Their marketing consisted of placing two cent pamphlets in bars and on their bottles that described their brewing process and explained why domestic handcrafted...
Words: 315 - Pages: 2
...Segmentation and Target Market Week 3 MKT 571 12/10/14 Professor William Wider Segmentation and Target Market Proper marketing management is one of the major determinants of a company success. Amongst the practices of marketing management, segmentation, target marketing, and positioning are of utmost importance. Market segmentation deals with the identification of the market constituents into several groups or segments based on specific profiles (Kotler and Keller, 2012). Target marketing deals with the selection of segments and development of the measures to attract the selected consumer groups (Kotler and Keller, 2012). Ultimately, market positioning deals with the ways in which the market remembers and distinguishes the brand of the company with the competing products by means of unique attributes and benefits (Kotler and Keller, 2012). Although there are some associated drawbacks related to target marketing, segmentation, and positioning such as ethical issues, inhibited popularity due to cynicism to discrimination practices in these strategies, as well as waste of resources, most firms still utilize these mechanisms due to the benefits offered such as improved operation efficiencies, better product positioning accuracy, and increased possibilities for opportunity identification (Kotler and Keller, 2012). Procter and Gamble (P&G), which was formed on October 31, 1987, is one of the leading fast moving consumer good (FMCG) companies in the world. The portfolio...
Words: 1294 - Pages: 6
...Samsung Segmentation and Target Market Paper Samsung Segmentation and Target Market Paper Positioning Statement The world has started to take on a healthier lifestyle. Watching what we eat and making sure to incorporate physical activity daily. In order to maintain these numbers many people have started to use technology to record the calories burned as well as monitor their heart rate while working out. Most people have a heart rate monitor and then have to record their information manually to another program in order to keep track of how well they are doing. Samsung has met with this issue by including a Smart watch called the Gear and the Gear Fit in which connects to its Samsung Galaxy 5 and automatically records information from your work out. The company has also included many other features that go along with the use of both its smart phone the Galaxy 5 and its Smart Watch the Gear and Gear Fit. Samsung has cornered the market with this innovative smart watch introducing a new way to stay fit and get healthy and making it easier to maintain records of all of your fitness endeavors. “Introducing Samsung’s first network-connected wearable.** So now you can make and answer calls when your phone isn’t nearby. You can also check texts, emails, updates— even stream and listen to music, right from your wrist.” (Samsung, 2014) Background “At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and...
Words: 3181 - Pages: 13
...Starbucks - Segmentation and Target Market Paper MKT 571 March 11, 2014 Starbucks - Segmentation and Target Market Paper Company History Starbucks Corporation is the largest coffeehouse company in the world. Offering the world’s finest fresh-roasted whole bean coffees, this global American company’s history began with the opening of a single store in Seattle Washington’s Historic Pike Place Market in 1971 (Starbucks Corporation, 2014). Inspired by a roasting entrepreneur Alfred Peet, the founders, English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker created the current Starbucks name and green and white Siern Greek Mythology logo (Madison, 2011). Inspired from early traditions in coffee trade and the first mate from the novel Moby Dick, the unusual company and logo emerged. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first experienced coffee and was drawn to join Starbucks a year later. In 1983, after travels to Italy and becoming captivated by Italian coffee bars, Schultz brought back the Italian coffeehouse traditions to the United States (U.S.) (Starbucks Corporation, 2014). Schultz’s romance with the coffee experience had begun and within a few years he sought local investors and purchased Starbucks. Since Schultz’s purchase, Starbucks has partnered and dissolved its partnership with Kraft, added free Wi-Fi to their stores, placed product on supermarket shelves, partnered with Apple for an iTunes...
Words: 1011 - Pages: 5
...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...
Words: 730 - Pages: 3
...Segmentation and Target Paper: Neese’s 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...
Words: 1280 - Pages: 6
