...UNIT 4 Marketing Principles LO2 Be able to use the concepts of segmentation, targeting and positioning CASE STUDY: You are a Business Development Consultant. Your Firm is hired by a small business enterprise that is facing myriads of marketing and organizational challenges. YOUR JOB AS A BUSINESS DEVELOPMENT CONSULTANT IS TO 1) Analyze the problems in the business, 2) Research solutions and/or benchmark good practices, 3) Make suitable recommendations for improvements, and 4) Help the business to implement these recommendations satisfactorily. TEAM ASSIGNMENTS PRESENTATION: 15 MINUTES LEARNING OUTCOME 2: Be able to use the concepts of segmentation, targeting and positioning 2.1 Show macro and micro environmental factors which influence marketing decisions 2.2 Propose segmentation criteria to be used for products in different markets 2.3 Choose a targeting strategy for a selected product/service 2.4 Demonstrate how buyer behavior affects marketing activities in different buying situations 2.5 Propose new positioning for a selected product/service Submission Deadline: November 16, 2015 TEAM ASSIGNMENT: AC 2.1 Show macro and micro environmental factors which influence marketing decisions Guiding Term Paper Questions The business believes that competition from nearby businesses is preventing it from growing and increasing sales. However many other micro and macro factors are impacting sales and its marketing decisions. So show the macro...
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...Marketing Management Swati Sisodia swati.sisodia@nmims.edu Introduction to Marketing What is Marketing ? ‘Marketing is the ManageMent process that identifies, anticipates and satisfies custoMer requireMents profitably’ What is marketing? ‘the right product, in the right place, at the right tiMe, and at the right price’ What is marketing ? ‘Marketing is the huMan activity directed at satisfying huMan needs and wants through an exchange process’ Management definition it is the process of planning and executing the conception, pricing, proMotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. What is Marketed? • • • • • • • • • • Goods Services Events Experiences Persons Places Properties Organizations Information Ideas Implications of Marketing Who are our existing/potential customers? What are their current/future needs? How can we satisfy these needs/ Can we offer a product/service that the customer would value? • Can we communicate with our customers? • Can we deliver a competitive product or service? • Why should customers buy from us? • • • • CUSTOMER VALUE AND SATISFACTION Customer Value & Customer Cost Customer value Customer cost “Is the bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service” “Is the bundle of benefits customer expect from a given product or service” Total Customer Cost is the summation of: -Monetary...
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...Market Segmentation - A framework for determining the right target customers BA-thesis May 2010 By Nynne Larsen Supervisor: Mariette Ulbæk Aarhus School of Business Table of contents 1. 2. Summary ........................................................................................................................................ 1 Introduction ................................................................................................................................... 3 2.1 Delimitation ............................................................................................................................................. 4 2.2 Method .................................................................................................................................................... 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 ..........................................................................
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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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...and identifying the potential opportunities of the company selecting the target market, and managing the marketing effort. Marketing process is a series of actions and reactions between the customers and the company. The steps of the marketing process are: Analyzing marketing opportunities It is the first step of the marketing process, and the main goal here is to analyse what kind of opportunities can you have is the market and to identify the customer’s needs and wants and try to satisfy them. This step is useful to understand the environment in which the company is operating and to analyse the long- run opportunities in this market. Marketing analysis is indispensable because it allows the company to get enough information about the competitors, costumers, government, and changes in the environment to be prepared and decide and determine what are their opportunities, Selecting target markets Now the company knows how is the market they will deal, they must be customer centred; they have to know what they want and start competing the costumers with the competitors, but they need to know specifically who are they customers. This process is called market segmentation and is the process where the company define and divide the market into different and smaller groups with different needs and behaviour. And market targeting is the processes of analyse and select one or more of the markets segments to enter on it, so is a specific group of customers at which the company...
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...Introduction The process of marketing involves three key functions viz. market segmentation, targeting, and market positioning. Marketing segmentation concept is closely connected with the marketing mix. Market segmentation involves identifying the basis on which market needs to be segmented. Targeting involves selecting the target for segmentation. Positioning involves developing position to target the segments. Market segmentation is about aggregating prospective buyers into groups that have common needs. The groups that result from market segmentation are called market segments. Meaning / what is marketing segmentation? : Markets consist of buyers, and most often than not, these buyers have heterogeneous preferences. Thus, it is impossible for an organization to serve all these buyers with varied needs. Therefore, the notion of market segmentation is introduced. Market segmentation involves the process of identifying segmentation variables, or bases, and developing profiles of resulting segments. By going after segments instead of the whole market, companies have a better chance to deliver value to consumers and to receive rewards for close attention to consumer needs. Compaq, IBM and IPC are multinational companies that have branches worldwide. This is evident from their websites that cater to people from different countries. Compaq serves over 40 countries including Japan, Korea, Sweden, the United Kingdom, and the United States, just to...
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...l Abstract Date: 2006-01-04 Level: Bachelor thesis in Business Administration, 10 points. Authors:Akiko Yamamoto Alhagsvägen 48 145 59 Norsborg Stockholm Lin Hui Allmogeplasten 17 724 80 Västerås Tel.: 0762615846 Chen Bo Allmogeplasten 17 724 80 Västerås Tel.: 0736364876 Tel.: 0735054312 Tutor: Leif Sanner Title: Global introduction of new products – Case Study of Dell Problem: In order to survive in the tough competition, firms face the difficult and vital challenge which is to introduce a new product into a global market efficiently. Even though a product itself has a fine features and functions, failure on the introduction and marketing operation can result an unsuccessful product. Therefore, the manager must identify an optimal introduction strategy according to the conditions the firm faces. Purpose: There are two objectives for this study. First objective of this study is to investigate Dells’ operation regarding to global introduction of new products such as segmentation approach, its influence on the choice of introduction strategy and efficiency of the strategy itself. Second is to provide empirical framework in the field of global introduction of new product (the choice of waterfall or sprinkler strategy), which lacks in the earlier research and develop a deeper understanding. Method: We have conducted a qualitative research in order to provide inductive view of the relationship between theory and research, and develop...
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...MKT001 – Segmentation, Targeting, and Positioning Additional information Market segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. 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. Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Demographic factors are the most popular bases for segmenting customer groups: Age and Life-Cycle Stage means offering different products or using different marketing approaches for different age and life-cycle groups. Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines. Income segmentation has long been used by the marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel. Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. Behavioral segmentation divides buyers into groups based on their...
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...understand markets? As a student of marketing, you have already learned that the main purpose of modern marketing is to serve customers. If the organization really believes in this philosophy, that is, “the Customer Rules,” it only remains for the organization to focus on researching and understanding its customers and then delivering products and services to the customer that will not only meet the customer’s needs, but satisfy the customer in a way that will keep the customer coming back to our organization to do business with us. Therefore, often the first assignment for the marketing function is to gather and analyze information about customers. Today, that usually means first attempting to understand the structure of the marketplace. Understanding the Marketplace and Different Customer Segments The main goal of market segmentation (dividing the market into different portions based on differences in customers) is to better understand the needs of our customers thus we need a structured approach to attain this goal. A simple seven-step approach follows: Step One: Identify the type of market with which you will be dealing Step Two: Analyze the areas of satisfaction you are attempting to provide to this market, that is, what wants or needs do you intend to satisfy? Step Three: Select dimensions with which to segment the market Step Four: Based on the selected dimensions, identify the segments in the market under study ...
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...has been directed to propose a plan to management for targeting market segment(s) in China and how to position and target the computers toward that market. In the past VAIO has appealed to those who were concerned with a premium product that sleek and stylish. Many of their users were those who wanted to make a status statement and own a computer that had aesthetic attributes. Additionally Lopez has access to three different market segment studies. The first of which was the Shanghai Report which segmented laptop owners in China based on age, gender, education, income, marital status, children, and access to internet. This study also targeted the market share of computer sales. The next study was the Chinese Laptop User Survey (CLUES) used to segment a survey of both laptop owners and those who were planning to purchase one within the next year. Similar to this was Project Compass which instead segmented owners and potential owners of all multimedia devices in eight different countries. This led to the next problem of an information overload making Lopez’s decision much more difficult. The problem with too much data in this case is because the two studies CLUES and Project Compass both lay out many different segments that can be targeted. Lopez must decide which segments to target based on his analysis. Him and his team needed to decide which studies provided the relevant data to find the best possible market segment. Information Analysis: Need Identification VAIO provides...
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...Introduction………………………………………………………………………1. Business and market environment…………………………………………….1.1. Definition……………………………………………………………….1.2. Understanding the environment of a target market…………………….2. Market segmentation and distribution channels……………………………..2.1. Market segmentation……………………………………………………2.2. Distribution channels………………………………………...................3. Financial issues, Export Practicalities and Technicalities……………………Conclusion………………………………………………………………………….References………………………………………………………………………….. | 344577881011 | INTRODUCTION When national economies are more open and trade is increasing both in volume and geography, exporters should recognize huge potential to develop their business. To achieve success in the international market, the initial step is to understand what is important to consider before implementing export strategy. In that context, this assignment aims to provide basic insights that exporters need to take into account. The assignment consists of three main parts focusing on three topics: * Business and market environment * Market segmentation and distribution channels * Financial issues, export practicalities and technicalities In each part, there will be definitions and explanation about the concepts. The assignment also suggests what information exporters should collect to perceive these concepts properly. Some practical evidence and cases will be included. 1. Business and market environment 1.1. Definition Kew and Stredwick (2008...
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... For this very reason, companies need to be customer centered. A market share is only captured by acquiring customers and maintaining them by delivering greater value. However, the customers are diverse individuals of different tastes and thus, it is required to divide the total customers in optimal segments that are expected to yield greatest results. This process involves, market segmentation, market targeting, differentiation and positioning. Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. For instance, a more modern, hip and artsy McDonald’s branch at Union Square in NYC would appeal to the Yuppie customers in the region as opposed to the average American taste that demands the plain and original McDonald’s feel as seen in a branch in White Plains. Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company with limited resources might decide to serve only one or a few special segments or ‘market niches.’ For instance, a start-up social media marketing company at a college may only focus to advertise their clients to the students of their college. The market segment of that specific college, serves as the niche that is being...
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...Data Analytics: A Marketing Segmentation Case Study T. Evgeniou, INSEAD J. Niessing, INSEAD The Iterative Process Cycle Data Preparation & Exploration Analysis Goal of Analysis Performance Assessment Segmentation Methodology – A(nother) Process 1 2 3 4 5 6 Identify Business Issues Clarify Scope and Dimensions Generate and Refine Hypotheses Decide on Data to use / Collect Needed Data Build the Segmentation Framework Link to Marketing & Business Strategy A Segmentation (micro-)Process • Segmentation solution is created through a rigorous and iterative process Data Processing/ Factor Analysis Cluster analyses Review and refine Why Segmentation? • SEGMENTATION is a critical enabler to achieve business objectives and realize benefits • SEGMENTATION is critical to identify white spaces for new products/offerings • SEGMENTATION helps organizations to optimize their retention and acquisition strategy • SEGMENTATION is often used to optimize pricing across different products • SEGMENTATION enables organizations to become more customercentric • MARKET DYNAMICS make segmentation critical to business success. Questions You Might Hear… These are only some of the issues that clients may raise that clue you in to appropriateness of segmentation Growth & New Opportunities Market Structure Product Development Channel Deployment Resource Allocation Retention...
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...Business market research is the process of collecting data to determine whether a particular product/service will satisfy the needs of your customers. With effective market research in your company you can gain valuable information about your competitors, economic shifts, demographics, the current markets trends and the spending trait of your customers. Sainsbury’s use market research to keep a close eye on their competition. Sainsbury’s also use market research to guarantee success with marketing campaigns and in-turn sales. Primary research is gathering new data that has not been collected before. For example, interviews with groups of people in a focus group or surveys using questionnaires. Secondary research is gathering existing data that has been produced already. For example, researching the internet, company reports and newspapers. Both of these research methods can be done internally and externally. Internal primary research could be sales figures from the business’s own products and it could also be customer data held on a central database. External primary research could be questionnaires and surveys, mystery shoppers and focus groups. Internal secondary research can consist of reports from sales and regional representatives and also previous marketing research. External secondary research can consist of trade journals and websites, books and newspapers, census data and public records. Qualitative and quantitative is one form of research, and in some cases it...
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...Q 1. Martha and the Trap-Ease America investors believe they face a once-in-a-lifetime opportunity.What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? how would you write it? A 1. I think they believe that they have a one-in-a-lifetime opportunity because Trap-Ease is an new and innovative idea for a mouse trap so it can be potential for the company’s growth and profit but in order to fully take advantage of this opportunity Trap-Ease America will have to first find out the actual needs and wants of their potential costumers which i think should not be limited to only women, they need to find out if the customers actually need a product with these many additional features because the customers might wish or even want such a hygienic and safe approach for a mouse trap but might not be willing to pay the extra cost that comes with it. Trap-ease America also needs to determine the products strength, weakness, opportunities and threats to further analyze and decide how they want to sell the product and use this opportunity to its fullest. I think that the mission statement should be written in a such a way where it describes how this mouse trap is something different and innovative compared to its traditional counter parts because i think if the difference is clearly mentioned in the mission statement than it would definitely catch the interest of the customer when they are deciding on which mouse trap to buy...
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