...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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...STP template Instructions: What’s it for? To prepare for tutorial 2.When is it due? Bring it along to the tutorial 2.By whom? Do it as a group. If you do not get a chance to sit as a group, do it individually before the tutorial.Is it compulsory? No, the “Memo” was compulsory. However, having this completed will be a great help in preparing 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...
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...1. Would consider Demographic segmentation, because she just starting her own small business, which is a sole priority ship. Which is for people working as an entrepreneur as herself. So she would have base some of it off of who like chocolate and who doesn’t also she need to know which chocolate people would buy more often, and where should she open her business. So that was demographic segmentation is when you want to know things about your consumer to get there interest in what you’re doing and if the location is right for that. So when you’re starting your own business you have to do a lot of things before you can even see progress from it. So it takes over time before you’re business start’s going unless you brand with another business which will be a b2b because that can get you off your feet with this business as well. 2. A segment would be concerted strategy because it focus on one aspect which is pet supply store. So it’s targeting animal’s owner to come to a store that can have deals for them that they will enjoy for their animals. Because the customer is always right. It also fall into value proposition, which give the customer a good perspective on they want as I proclaimed. They can also now in days buy their product online and walk into the store. 3. Micromarketing is basically when you have a specific item that you want and you’re interested in the product. People have lots of reason to be specific maybe for special occasion or just have a great day by...
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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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...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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...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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...MARKET SEGMENTATION Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market. Required Elements: * No more than 2100 words * Include demographic, psychographic, geographic, and behavioral characteristics for the selected company. * A positioning statement for the company with careful consideration of their brand and strategy * Paper is consistent with APA guidelines. Introduction: The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the...
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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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...(b) marketing segmentation and targeting in its advertising and research efforts towards running in China. Nike recognises that in its efforts to encourage ‘running’ as an enjoyable activity, it needs to target a main audience of ‘young, urban, image-conscious Chinese.’ In doing this an exciting and original idea should be executed, and so, Nike uses the most logical response via online marketing. By launching their ‘Run For’ campaign, Nike attempts to facilitate customer interaction via video-sharing and social media sites. Therefore Nike, in this example, is trying to encourage running by incorporating everyday people into their ‘Run For’ campaign. Online marketing is said to ‘allow information sharing at a new level and facilitate interaction between customers and channel members.’ (Kotler et al, 2010 p.544). In this example Nike attempts to create a positive feel towards running and allows the Chinese community think of it as a social event, while using direct and online database marketing. In doing so, Nike is able to interact with past, present and/or potential customers. To achieve this Nike allows members of the Chinese community to communicate their perspectives on running, which is potentially attracting a larger target audience. By using customer interaction and seeking a large range of opinions, Nike is more likely to attract a more fluctuated interest and customer base. The article also demonstrates the concept of marketing segmentation and targeting...
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...Lanning suggest that customers base their buying decisions on two criteria: 1) the benefits of the product and/or service and 2) price.1 Two reasons that sales were not taking off as anticipated relate to the marketing strategy. First, the TiVo value proposition was unclear to customers and sales people, as evidenced by the “amount of confusion in the press as to how the new product category should be introduced.” 2 Second, the market segmentation approach of targeting early adopters did not produce the leadership buzz that TiVo had anticipated. For their part, “TiVo’s marketing team argued that lack of awareness was a key cause of the discrepancy between the love for TiVo and its lackluster sales. Additionally, TiVo partnered with Philips and Sony for manufacturing and brand recognition. Philips and Sony provided a sense of reliability to the new product, but they were unable to provide support and training for the sales force. Coupled with a salesperson turnover rate of over 50% and the need for extensive explanations and demonstration, the result was an inconsistent message for an innovative technology.” 3 With regards to price, the $1,000 price tag often exceeded the cost of the television itself which created a dissonance that gave pause even to technophiles who were unclear of the value proposition. As a new technology, there was no reference point to indicate the relative value of the purchase. Tacking on an additional service fee to record and receive suggested...
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...products and ideas. Appreciating this trend and looking beyond demographics into the behavior and interests of consumers would help marketers to tap into new opportunities and otherwise ignored consumer segments. | [Pick the date] [Pick the date] ------------------------------------------------- Trend Analysis – Post Demographic Consumerism Introduction “Post Demographic Consumerism” is identified as one of the consumer behavior trends for 2015 by the research agency Trend Watching. This paper attempts to study the trend with respect to the market changes in India, which is one of the biggest emerging economies. Post Demographic Consumerism Segmentation is the first step in marketing strategy where a broad market is divided into homogenous groups which are perceived to have similar needs and wants. The objective of segmentation is to identify homogenous groups which can be targeted with a marketing mix that would meet the group’s expectation. The different bases used for segmenting the...
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...Project Report MARKETING CUSTOMER SEGMENTATION Submitted By: Gavish Mittal (401057004) To Dr. Girish Jaiswal Thapar University January 2014 Market Segmentation Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Segmenting Consumer Markets There is no single way to segment a market. A marketer has to try different segmentation variables and in combination, to find the best way to view the market structure. The variables that might be used in segmenting consumer markets are geographic, demographic, psychographic, and behavioral. Geographic Segmentation Geographic Segmentation calls for dividing the market into different geographical units such as nations, regions, states, provinces, cities, or even neighborhoods. A company may decide to operate in one or a few geographical areas, or to operate in all areas but pay attention to geographical differences in needs and wants. Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and even neighborhoods. On a global scale, video game companies create different versions of their games depending on the world region in which the game is sold. For example, Capcom sells its...
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...DEPARTMENT OF [pic] TOPIC: Advertising Plan On Nestle Milkpak NAMES: Al-Sayed Hasnain Hyder Naqvi (320) Abdul Khalid Memom (307) Ikramullah Memom (337) Muneer Ahmed Junejo (366) Mushtaque Ali Shaikh (367) Sheeraz Ali Pathan (386) SUBJECT: Advertising SUBMITTED TO: Madam, Sanam Memom CLASS: BBA-III 6th Semester Company Name and Its Introduction Nestle-Pakistan Organizational History: Nestlé is a multinational packaged food company founded and headquartered in Switzerland. It resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867. The Company is engaged in manufacturing, processing and sale of food products in Pakistan. The company offers milk, dairy, and chilled dairy products, including UHT milk, yogurt, raita, ghee, and cream; beverages, such as coffee, juices, and instant drinks; and bottled water in non-returnable and bulk bottles for home and office delivery. It also offers infant cereals; prepared meals, such as noodles; breakfast cereals; and mints, chocolates, and confectionery and culinary products. The company, formerly known as Nestle Milkpak, Ltd., was founded in 1979...
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...Abstract In this assignment, I intend to one (1) Discuss obsolesces of home phones in terms of its repositioned target market demographic using U.S. Census Data. Two (2), determine the types of research needed to reposition the home phone. Three (3), I will discuss the method(s) I would use to increase adoption rates. Four (4), I will determine if a new service component will provide new interest for the home phone. Fifth (5), finally, I will anticipate the most likely distribution problems that I may encounter and how I would address them. Obsolesces of Home Phones, Part II Home phones are quickly becoming a thing of the past, at least according to a recent study done by the Centers for Disease Control (CDC). Nearly 18 percent of American homes use cellular phones as their primary, home phone, forgoing traditional landline versions. Discuss obsolesces of home phones in terms of its repositioned target market demographic using U.S. Census Data The targeted market demographics for home phones were 29 years old and younger; and for households that were 65 years old and older. The number of households with cell phones increased from 36 percent to 71 percent between 1998 and 2005, according to new data released by the U.S. Census Bureau. This corresponded with a decrease in households with telephone landlines, particularly households headed by young adults. One way to help promote the use of land line home phones could be to reverse the trend of the government giving and paying...
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