...SEGMENTING BUSINESS MARKETS Segmentation of markets remains important even though the number of buyers in a business market may be relatively fewer compared to a consumer market. The basic grouping of a business market is by customer location, customer type and transaction conditions. 1. Customer Location On most occasions, business markets are segmented on a geographical basis. Some industries are geographically concentrated. An example is a business that process natural resources locate themselves close to the source in order to minimize shipping costs. 2. Customer Type This sub-divided into four different categories: - a) Size b) Industry c) Organizational Structure d) Purchase Criteria a) Size: Business customer size can be estimated using factors such as sales volume, number of employees, number of production facilities and number of sales offices. Most sellers divide their potential market into large and small accounts, using separate distribution channels to reach each segment. The sellers force may contact large volume accounts directly, but to reach the smaller accounts, the sellers may use a middleman or rely on the internet or telemarketing. b) Industry: Firms that sell their products to other business may want to segment its market on the basis of industry. However, if a firm like the afore-mentioned one were to segment its potential customers by type of customer and then specializing in order to meet the needs of organizations then they would be...
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...Segmenting Business Markets SEGMENTING BUSINESS MARKETS Segmentation of markets remains important even though the number of buyers in a business market may be relatively fewer compared to a consumer market. The basic grouping of a business market is by customer location, customer type and transaction conditions. 1. Customer Location On most occasions, business markets are segmented on a geographical basis. Some industries are geographically concentrated. An example is a business that process natural resources locate themselves close to the source in order to minimize shipping costs. 2. Customer Type This sub-divided into four different categories: - a) Size b) Industry c) Organizational Structure d) Purchase Criteria a) Size: Business customer size can be estimated using factors such as sales volume, number of employees, number of production facilities and number of sales offices. Most sellers divide their potential market into large and small accounts, using separate distribution channels to reach each segment. The sellers force may contact large volume accounts directly, but to reach the smaller accounts, the sellers may use a middleman or rely on the internet or telemarketing. b) Industry: Firms that sell their products to other business may want to segment its market on the basis of industry. However, if a firm like the afore-mentioned one were to segment its potential customers by type of customer and then specializing in order to meet the needs of organizations...
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...1) Using the full spectrum of segmentation variables, describe how Sports England has segmented the sports market? In order to understand the British people’s attitudes and motivations about sports, Sport England has built 19 sporting segments all around the United Kingdom to target its customers in the sports market. In the segmentation process Sport England worked closely with Experian Business Strategies consulting group. Sport England along with the help of the Experian Group analysed data of the English people aged 18 and older. They collected and collated information about specific sports involvement; desire to do sports and the obstacles they faced in doing sports. The analysis further included the collection of data on media consumption and communication channels, social capital, health indicators, and involvement in wider cultural activities. Sport England completed this survey with the collaboration of Action People Survey. This was one of the largest ever sports survey conducted and carried out in Europe by the company. The survey provided Sport England with the levels of participation of people in different groups in the community specifically. The company had designed the questionnaire to find out and analyze the broad range of demographic information, such as people’s genders, social classes, ethnicity, household structures, ages and disabilities. Their survey also included how involved people in each segment were in other recreational activities....
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...In: Business and Management Loreal's Segmenting and Targeting Markets L'Oréal, the world's largest cosmetics and beauty company, was founded in 1907 by the French chemist, Eugene Schueller. After a little over a century of steady growth, L'Oréal has jumped from being a small family business to become the world’s leader in the cosmetics industry. Today, the L'Oréal group has regions in more than 150 countries in the world that are home to 283 branches, more than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and popular brands of cosmetics. Their "global or nothing" strategy allows L'Oréal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region. In order to clarify different product positioning in Asia, L'Oréal decided to move from “the open-shelf brand” in Europe up to “the top international brand” in Asia. In Asian countries, L'Oréal set up their counters in upscale department stores according to the Asia specific marketing channel strategy. However, this “accessible luxury brand” strategy did not meet the levels of success they anticipated. The reason for this is that the image of the texture or packaging of their products failed to reflect the luxury image that are so important to marketing in Asia. They failed to understand the significance of the fact that texture and packaging in Asia is more delicate than the required standard in Europe. L'Oréal must...
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...more than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and popular brands of cosmetics. Their "global or nothing" strategy allows L'Oréal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region. In order to clarify different product positioning in Asia, L'Oréal decided to move from “the open-shelf brand” in Europe up to “the top international brand” in Asia. In Asian countries, L'Oréal set up their counters in upscale department stores according to the Asia specific marketing channel strategy. However, this “accessible luxury brand” strategy did not meet the levels of success they anticipated. The reason for this is that the image of the texture or packaging of their products failed to reflect the luxury image that are so important to marketing in Asia. They failed to understand the significance of the fact that texture and packaging in Asia is more delicate than the required standard in Europe. L'Oréal must prove that the quality of their product shows "significant improvement" if they are to obtain market recognition while moving up their prices in the Asian markets. In 2003, L'Oréal created a new line of teeth whitening products in order to open up Japanese and Asian markets. Unlike those products made for the U.S. and Europe, the flavor of the creams and gels sold in Asia have a more oily texture and a more intense flavor. In order to meet the expectations...
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...关于欧莱雅和自然堂的调查问卷 Questionnaire about L'OREAL and CHANDO 1. 您的性别? What is your gender? （1）女Female （2）男Male 2. 您平时购买护肤品吗? Do you buy skin care products usually? (1) 购买Yes （2）不购买 No 3. 您多长时间购买一次护肤品? How often do you buy skin care products? (1) 小于1个月 Less than 1 month （2）1-3个月 1-3 months （3）3-6个月 3-6 months (4）大于6个月 More than 6 months 4. 您每次购买护肤品时花多少钱？ How much money do you spend on skin care products per time? (1) 小于100元 Less than 100 RMB （2）100-300元 100-300 RMB （3）300-500元 300-500 RMB （4）大于500元 More than 500 RMB 5. 您通常在哪里购买护肤品？ Where do you buy skin care products usually? （可多选 you can choose more than one choice） (1) 专柜 Shoppe （2）零售店（如超市、屈臣氏等）Retail stores(eg. Supermarket, Watson) （3）专业美容机构 Beauty institutions （4）网站、电视购物等 Website, TV shopping 6. 影响您购买护肤品的因素有哪些？What are the factors affect you to buy skin care products？(可多选 you can choose more than one choice) (1) 品牌 Brand （2）包装 Package （3）价格 Price （4）使用效果 Using effect （5）促销方式 Way of promotion （6）服务态度 Service attitude 7. 您知道欧莱雅吗？ Have you heard about L'OREAL? (1) 知道 Yes (2) 不知道 No 8. 您购买过欧莱雅的护肤品吗？Have you bought L'OREAL skin care products? （1）买过 Yes （2）没买过 No 9. 如果购买过欧莱雅护肤品，您对以下说法的态度 If you bought L'OREAL skin care products, your attitude to the following statement | 非常赞同 | 赞同 | 一般 | 不赞同 | 非常不赞同 | 价格合理 | | | | | | 购买方便 | | | | | | 效果很好 | | | | | | 促销活动多 | | | | | | 广告令人印象深刻 | | | | |...
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...Introduction: The electric car or e-Car is a vehicle propelled by an electric motor instead of fuel. Car manufacturers are exploring the possibility of entering the market with the e-Car as a alternative to current vehicles in order to be environmentally friendly and to minimize the consumption of gasoline. Although, the benefits of using the e-Car could exceed expectations it also presents a different type of lifestyle for those who are used to regular vehicles. According to the “New York Times” the e-Car is getting worldwide interest with some governments such as China and the United States even offering tax credits and discounts for those who buy an e-Car. On the other hand, consumers are concerned on whether the speed and battery life of the e-Car will be enough to satisfy their needs. In this case project we will look at the responses from 100 testers from Enterprise Rent-a-Car about trying out the e-Car and how useful it really is in today’s non-stopping lifestyle. 1. Approaching Enterprise to undertake our commuting test would be a boundless idea because, Enterprise specializes in providing vehicles to customers. Enterprise agents interact with hundreds of different customers each day and hear first-hand what they like and dislike about the cars that they are given. Enterprise will be able give the e-car the exposure it will need to succeed in the future. Enterprise Rental Cars would make a viable choice for a processing center for the e-car prototypes as agents...
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...The North American electric car market is at the ferment stage of development. Google “electric car” and you will get many start-ups with their design and plans to “make” the market. The big auto companies have their planned models and so do numerous venture capital start-ups. They all seem to be about 2-3 years away from launching their products. The problem is battery range and power. With today’s technology, a small, low cost mass produced eCar would have a range of about 80 miles on a charge and a top speed of 60 miles an hour. This is considered not good enough for the market that is used to gasoline cars with top speeds of 100+ and with a range of 300+ miles. The eCar has to get a lot better before it is viable. That is the conventional wisdom. It is wisdom not built on 3D segmentation. It reveals that the eCar makers’ innovation is not matched by their capability to think cleverly about segmenting the market on benefits sought and about how to win the diffusion of innovation race. Cars are used for many different purposes. Is there a profitable usage segment out there that would be happy with the current performance limits of today’s electric car? To think about this let us think about short-distance commuting. People commute downtown and back but public transportation is and will be a serious competitor to urban eCar commuting. People also commute to major suburban business campuses where several thousand employees from the same company work together. The majority are...
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...Assignment #1 - Segmentation and Targeting Please read the following Case Study and answer the questions at the 4 questions at the end. Segmenting and Targeting Markets: Case Study: Coke Zero When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these things!” What she didn't know was that the marketing managers were actors. Hidden cameras had been planted around the meeting room to capture the reactions of several unsuspecting lawyers who had been asked to consider the case, including an immigration lawyer who was asked if he could get the Coke Zero marketing head deported back to Canada. Coke Zero Immigration Lawyer Ad - YouTube The short videos were strategically placed on websites such as to promote Coke Zero as the hip, new alternative to Diet Coke for men. The Coca-Cola Company knows it has to be creative if it's going to sell more pop after sales dropped two years in a row in 2005 and 2006. Morgan Stanley analyst Bill Pecoriello explains, “Consumers are becoming ever more health-conscious...
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...Prince Sports Case Study Prince Sports has managed to remain in their field, but the task was not easy. They have been in business for over forty years and have continued to evolve to fit the needs of the consumers while also managing to expand their products. In doing so, they have needed to keep their company ahead of trends that have occurred in the market. So far, they have managed to do so, but with the continuously changing market and economy, Prince Sports needs to constantly be performing research on how to stay ahead. They also have to take in to consideration how these changes are going to affect the products and customers they currently have. In 2012 Prince Sports filed for bankruptcy protection due to an increasing decline in sales which resulted from a few different factors, but mainly due to their lack of remaining true to their older products. A main problem they faced was their advancement in technology. While it was vital and helped them greatly with staying ahead for certain markets, it also hurt them because of the way in which they handled everything that came before their advancements. Rather than offering their previous products, they simply made it appear as if customers had to evolve with the company. Not every customer is going to want to use the new technology they introduce and some are more comfortable with what they are used to. While they have tried to keep their young customers in mind, they cannot forget those who have helped them stay in business...
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...Abstract The newspaper (print) has been a part of American households for decades. The subject matter to be discussed: the exchange of news information in the networked future, the impact of the transition to digital journalism and the decline of the local newspaper. The information will show the drop in print viewership due to news being more readily available through social media and other Internet options. The Dying Newspaper Introduction The purpose of this product assessment is to investigate obsolesces of the print newspaper which has been on a steady decline in the market today. First, we will describe the newspaper within the context of demographic, consumer popularity, economic and technology, ethnic market and social awareness. The research will gather recommendation of appeal for consumer’s response to the declining of the print newspaper industry, while addressing the alternative market place to revitalize the newspaper standards in other countries. Finally, the study will bring about awareness to segmentation and positioning ideals for the new signature of newspaper in the new countries. The newspaper was a global source for current news events on print intended for household viewers. According to a Census Bureau report, within 10 years the primary declination of readership will be amongst the younger viewership. Consumers between the ages of 18-35 once had a readership that was 4,086,123 but then in 2010 the readership declined to 3,646,340 an estimated...
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...independent distributors in over 170 countries (NIKE Inc. 2012). The company also sells licensed college and pro teams gear and apparel. The mission of the company is “To bring inspiration and innovation to every athlete in the world” (Nike website 2011). Nike is a household name throughout most of the world. The company has celebrity athletes from nearly every sport wearing their gear and promoting their products. It is also one of the most recognized companies in the world. Strengths Nike is a company that has withstood the test of time. It could not have done so without some of its strong points throughout the company. The strong market share due to brand recognition had a great deal to do with Nike’s success (Datamonitor, 2011). Their innovative stance and ever expanding product lines have pushed Nike to the forefront of the athletic wear market. You don’t have to go too far to see the Nike swoosh or the “Just do it” tag line on any athlete, professional or otherwise. In addition, the proficient technical advancement in products developed Nike's aggressive benefit and brand recognition (Datamonitor, 2011). Nike is a company that understands the necessity of staying on the cutting edge of technology and the advancement through innovation and counsel by athletes and their counterparts as well as physicians who specialize in athletic needs. Nike also has kept manufacturing costs low and has also been able to distribute their products to a variety of vendors and retailers (Datamonitor...
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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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...Zara’s Booming Business Worldwide Zara being one of the worlds most well know fast retailers, has to do a lot to stay relevant, and get people shopping in their stores. With their fast paced supply chain making them a fast retailer who keeps low inventory, they are able to keep up with the newest trends. However to keep people coming back they have to be creative and come up with new ways to market their product. They have to come up with a sustainable competitive advantage, segment their target market for growth opportunities, different process for different countries, and finally make sure they have enough financial resources. With this innovative business model, Zara creates value for their customers and generates profit for their company. When it comes to creating a sustainable competitive advantage, Zara has to tools. First and foremost, they have a very fast production speed for which products are produced and distributed. Zara’s success comes from stocking their clothes in a limited quantity, then not replacing collections. Their customers know that if the product is sold out, there is no second chance to buy. This makes their consumers buy the product right when they see it, afraid that it may sell out or they may not find it at another time. “With Zara, you know that if you don’t buy it, right then and there, within 11 days the entire stock will change. You buy it now or never. And because the prices are so low, you buy it now”, says Masoud Golsorkhi, the...
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...Code: MKT 101 Course Name: Principles of Marketing Section: 5 An Assignment on------ “Launching a New Product in the Market” Course Instructor: Md. Nazmul Hossain Lecturer, Department of Business Administration East West University. Prepared By 1. Syed Mohammad Tauseef Chowdhury 2007-2-10-012 2. Umme Habiba Dipty 2007-2-10-094 3. Tabassum Fahima Zaman 2007-2-10-061 4. Israt Jahan 2007-2-10-156 5. Khadizatul Kobra 2007-3-10-004 Table of Contents Acknowledgement….................................................................................3 Company Overview…………………………………………………….................4 The Motto………………………………………………… …...............................5 Our Takeout…………………………………. ………………………………………5 Launching a new product………………………………………………… ………5 Market scenario—why chocolate? Why not other products??……………..6 Brand Synopsis……………………………………………………......................7 Segmenting the market…………………………………………………………….9 Target Marketing……………………………………………………………………10 Brand Positioning…………………………………………………………………...
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