...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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...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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...Segmentation And Target Market Paper Free Essays 1 - 30 www.papercamp.com/group/segmentation-and-target-market-paper Cached Free Essays on Segmentation And Target Market Paper for students. Use our papers to help you with yours 1 - 30. Segmentation and Target Marketing - Essays - Menaiedw www.termpaperwarehouse.com/essay-on/Segmentation-And... Cached Read this essay on Segmentation and Target Marketing . Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your ... Segmentation and Target Market Paper - Marketing homework help www.homeworkmarket.com/content/segmentation-and-target... Cached 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 ... Segmentation and Target Market Essays - Free Essays, Term ... manyessays.com/essay/segmentation-and-target-market Cached Title: Pages / Words: Save: how is market segmentation used in target marketing? Broadly, markets can be divided according to a number of general criteria, such as by ... Segmentation and Target Market - Term Papers - Mikeymyles www.studymode.com/essays/Segmentation-And-Target-Market... Cached Segmentation and Target Market According to Kotler, "a market segment consists of a large identifiable group within a market, with similar wants, purchasing power ... Target Market Segmentation Research Paper - Scribd www.scribd.com/.../Target-Market-Segmentation-Research-Paper...
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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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...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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...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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...CHAPTER 8 IDENTIFYING MARKET SEGMENTS AND TARGETS LEARNING OBJECTIVES In this chapter, we will address the following questions: 1. What are the different levels of market segmentation? 2. In what ways can a company divide a market into segments? 3. What are the requirements for effective segmentation? 4. How should business markets be segmented? 5. How should a company choose the most attractive target markets? CHAPTER SUMMARY 1. Target marketing includes three activities: market segmentation, market targeting, and market positioning. Market segments are large, identifiable groups within a market. 2. Two bases for segmenting consumer markets are consumer characteristics and consumer responses. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. Marketers use them singly or in combination. 3. Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors. 4. To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable. 5. We can target markets at four main levels: mass, multiple segments, single (or niche) segment, and individuals. 6. A mass market targeting approach is adopted only by the biggest companies. Many companies target multiple segments defined in various ways such as various demographic groups who seek the same product benefit. 7. A niche is a more narrowly defined group...
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...Introduction Market segmentation, much like its name implies, is a marketing strategy which is involved in the division of a target markets into subsets of markets with consumers who have common needs and wants. Market segmentation then designs and implements strategies to target the customers’ needs and wants by using various channels and other options. Market segments allow companies to create product differentiation strategies to target them. Market segmentation is extremely important in marketing as it allows for customization of products/ services to the customers that have the potential to buy them. Segmentation Marketing may be based on broad markets or small sub-segments. Mass marketing is the process or strategy to use the same marketing channels for all consumers without identifying the needs of a specific group of people. Mass marketing strategy employs mass promotion, mass production and mass distribution in the same way for mass consumers. In the past, companies have used mass marketing to achieve the economies of scale. However, times have changed, and it is almost impossible to create products to appeal to the entire market. Pursuing this strategy, several companies have lost their market leadership or a considerable chunk of their market share. As the customers are looking for the customized services, the marketer can satisfy them by considering the segmentation strategy. The market segmentation strategy is followed by the market targeting and the market positioning...
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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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...Segmentation and positioning A case study of Bang & Olufsen Segmentation and positioning – Bang & Olufsen Table of contents 1. Introduction ............................................................................................................................ 2 1.1 Problem Statement .............................................................................................................................................................. 2 1.2 Methodology .......................................................................................................................................................................... 3 1.2.1 Data gathering .................................................................................................................................................................... 3 1.3 Delimitation ............................................................................................................................................................................ 4 2. Bang & Olufsen ........................................................................................................................ 4 3 Segmentation .....................................................
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...MARKET SEGMENTATION, TARGETING AND POSITIONING MARKET SEGMENTATION INTRODUCTION: - The market for any product is normally made up of several segments. A ‘market’ after all is the aggregate of consumers of a given product. And, consumer (the end user), who makes a market, are of varying characteristics user and buying behavior. There are different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market. In order to capture this heterogeneous market for any product, marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentation. segmentation Thus we can say that market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These...
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...Before start think about marketing (4P), you must understand what is STP. Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics Segmentation Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be: Measurable Accessible (can you reach them) Profitable Distinct from one another The objective of segmentation is to find attractive markets. Strategies include Break market into components Regroup into market segments Select which segment to target Positioning. Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*. It is important to understand the levels of competition because positioning applies at all levels of competition. For example: Product Level (e.g., Pepsi vs. Coke) Category Level (e.g., Cola vs. Root beer) Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company) Industry Level (e.g., Beverage Industry vs. Snack food Industry) Targeting...
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...DETERMINING TARGET AUDIENCE After the opportunity analysis and competitive analysis the next step is to determine the target audience. Target markets are groups of individuals separated by distinguishable and noticeable characteristics . A company may have identified its target market, but selling its product may entail identifying even smaller, better defined target groups.A target audience and a target market can be formed of people of a certain age group, gender, or marital status. Target audience is specific group of people at which product is aimed at. Target audience determination is important part of the marketing strategy and has a direct impact on the advertising efforts . Examples * CVS Caremark's target market is women since they make up 80 percent of the pharmacy chain’s customers. CVS has marketed its stores to aid women who are constantly multitasking. They recently redesigned 1,200 of its 6,200 stores to appeal to women, including shorter wait times for prescriptions, wider and better-lit shopping aisles, and more beauty products. * If a company wants to sell a diet program for men with heart disease problem the communication may be aimed at the spouse who takes care of the nutrition plan of her husband and child. The companies often develop different marketing strategies for different consumer needs . the process by which they do this is known as target marketing . and it involve four basic steps . THE TARGET MARKETING PROCESS 1) IDENTIFYING MARKETS...
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...Segmentation and Target Market Bradley A. Parks MKT/571 April 19, 2014 Tara Hall Segmentation and Target Market The author will show how Cedar Fair Entertainment Company can use market segmentation within the industry to sell their product. Using market segmentation can help identify a target market for the company and show the selection process the company can use to identify their market. Market segmentation accomplishes this by splitting the market up by these key components: demographic, psychographic, and geographic. The author will also prepare a position statement for the company using careful consideration of their brand and strategy. Demographic segmentation is one of the most important areas to the marketing department because the information is readily accessible and can drastically dictate the spending patterns of the consumer. Some of the key components of demographic segmentation are age, gender, ethnic background, and the life cycle of a family. Cedar Fair Entertainment Company runs eleven theme parks throughout the United States and targets the age range of 2-60 years. The company can target this vast age group because they provide a safe and fun environment for families and people of all ages to enjoy due to the array of rides and games. The target income level for this company would be middle to upper class with a house hold income of approximately $50,000 or more as their ticket prices are $50.00. The theme park appeals to all genders and ethnicities...
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...Executive Summary Marketing for every industry has an important role in order to deliver their products and services to the right target. Whether traditional marketing or e marketing has a same purpose which is deliver the products and services to the users. Nowadays, the business more prefer to adapt e marketing in order to achieve their customer’s easily also reducing the cost. In this paper, the author will review on how “The Restaurant” will enter the market by using SWOT analysis, Ansoff Matrix and Porter Five analysis as well. Introduction In order to open the new business a company needs to identify and analysis the customer need, target segmentation, opportunities and threat. As all know that information technology has important role in daily life, the information technology also must be using in business industry to assist marketers in building the relationship with the customer’s. Nowadays most of the company will implement the E-Marketing where to guide the business to more focus and driven the marketing strategy using the IT. “The Restaurant” has decided to enter food industry in Malaysia. There are some analyses that need to be doing in order to help in mapping the business strategy. Marketing strategy is important to the companies who are willing to open, expanding or sustaining their business. The strategy will help them to seeing the opportunity in the market also to seeing the threats within the industry. To open a restaurant need a proper strategy...
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