Introduction. Market segmentation is defined as:

Size: px
Start display at page:

Download "Introduction. Market segmentation is defined as:"

Transcription

1 Ibrahim Sameer 1

2 Introduction Market segmentation is defined as: The process of breaking down the total market for a product or service into distinct sub-groups or segments, where each segment might represent a distinct target market to be reached with a distinctive marketing mix. The intention is to select groups of customers that the company is best able to serve so that competitive pressure is minimized. 2

3 The Need for Segmentation & Targeting The marketing concept puts customer needs at the centre of the organization's decision making. Market segmentation and strategies of targeting and positioning recognize that within the total market for a product, demand will differ to cater for specific tastes, needs and quantities of customers. Effective segmentation is achieved when customers sharing similar patterns of demand are grouped together giving rise to homogeneous demand. 3

4 Advantages of Target Marketing Marketing opportunities and gaps (i.e sectors of unfulfilled demand) in a market may be more accurately identified and appraised. Product and market appeals (through the marketing mix) can be more finely tuned to the needs of the potential customer. Marketing effort can be focused on the market segment(s) that offer the greatest potential for the company to achieve its objectives. 4

5 Effective Segmentation Measurable/identifiable and lead to ease of identification (who is in each segment?) and measurement (how many potential customers are in each segment?). Accessible and lead to the marketer being able to reach selected market targets through marketing efforts. Substantial segments that are sufficiently large to be worthwhile serving as distinct market targets. Meaningful segments that have different preferences/needs, and show clear variations in market behavior/response to specialized marketing efforts. 5

6 Segmentation Bases in Consumer Product Market Geographic Segmentation In international marketing, different countries may be deemed to constitute different market segments. Within a country a market may be segmented into regions that might represent individual salesperson s territories. Demographic Segmentation This approach consists of a wide variety of bases, of which the more common are: age, income, sex, education, nationality, family size, family life cycle, social class/occupation. Demographic bases constitute the most popular for segmentation in consumer product markets 6

7 Segmentation Bases in Consumer Product Market (cont ) Family Life Cycle Family life cycle segmentation is based on the idea that consumers pass through a series of phases in their lives. The stages are defined as: Bachelor Stage. This is young single people who live at home, who have limited financial commitments and a fairly large amount of disposable income. Newly married couples, no children. In this stage there is likely to be two full time salaries in the household, and a large amount of expenditure on products such as furniture, cars etc. Full nest 1. This is a couple that has started a family with the youngest child under six years. Disposable income is low as financial commitments increase and often income decreases. 7

8 Segmentation Bases in Consumer Product Market (cont ) Full nest 2. This is a family household with youngest child over six years old. The financial position is improving, as often income starts to increase. Full nest 3. Older couples with dependent children. Here the amount of disposable income increases further as children get older and possibly start to get part time jobs. More income is spent on luxury goods such as holidays etc. Empty nest 1. Couple with no dependent children. Disposable income increases further and needs of the household change, e.g. a change of focus to saving for future retirement. 8

9 Segmentation Bases in Consumer Product Market (cont ) Life Style Segmentation: This is referred to as psychographic segmentation. It is based on the idea that individuals have modes and patterns of living that may be reflected in the products and brands they purchase. For example, some individuals prefer a homely lifestyle, whereas others may have a sophisticated lifestyle. Direct or Behavioral Segmentation: The approaches to consumer segmentation described so far have been examples of associative segmentation. They are used where it is felt that differences in customer needs and purchasing behavior may be associated with them. For example, if we use age to segment a market, we assume that purchasing behavior in respect of a certain product is a function of age. 9

10 Segmentation Bases in Consumer Product Market (cont ) Loyalty Status: A direct approach to segmenting is the extent to which different customers are loyal to certain brands (brand loyalty). Consumers fall into one of four categories as far as loyalty status is concerned: 1. Hard core loyals have loyalty to a single brand (e.g brands AAAAAA). 2. Soft core loyals divide their loyalty between two or more brands (e.g brands AABABBA). 3. Shifting loyals brand-switch, spending some time on one brand and then move to another (e.g brands AAABBCCCAA). 4. Switchers show no brand loyalty, often purchasing products that are lowest in price or have a special offer (e.g brands BCBAACD). 10

11 Segmentation in Organizational Product Market The most frequently encountered bases: Geographic e.g. Northeast and Southwest, Holland and France. Type of application/end use e.g. cotton for clothing or that used for bed linen. Product/technology e.g. plastic bottles and glass bottles. Type of customer e.g. retailing sector or manufacturing. Customer size e.g. by customer turnover or by the average value of orders. Loyalty of customer Usage rate e.g. heavy or light. Purchasing procedures e.g. centralized or decentralized, the extent of specification buying, quotation/tender procedures. Benefits sought is based on the product needs that customers require from their purchase e.g. a car may be needed for the company s representatives, or for hiring out or as the chief executive s personal car. 11

12 Assessing & Selecting Market Segmentation The marketer has to evaluate the various market segments. The company must decide which segments in the market it is best able and willing to serve. This decision must be based on company resources, competition, segment potential and company objectives. Four characteristics make a market segment attractive: The segment has enough sales and profit potential. The segment has the potential for growth. The segment is not over competitive. The segment has some unsatisfied needs that the company can serve well. 12

13 Targeting Strategies Undifferentiated strategy sometimes referred to as mass marketing is when an organisation aims its resources at the entire market with one particular product in the hope that a sufficient amount of buyers would be attracted. For example, Coca Cola used to do this with its original Coca Cola drink. 13

14 Targeting Strategies Concentrated strategy - where an organisation concentrates its marketing effort on one particular segment e.g. Rolls Royce cars aim its vehicles at the premium segment. 14

15 Targeting Strategies Differentiated strategies - where an organisation targets several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. For example, an airline can offer business class, first class and economy class tickets with separate marketing programmes to attract the different groups. 15

16 Positioning Concept Positioning is the process of creating an image for a product/service in the minds of target customers using the marketing mix. Some products adopt a similar position with their competitors so customers can make a direct comparison, while some organisations want to create a very distinct image in customer s minds e.g. Rolls Royce is a top quality, luxury car and it is expensive to reflect that high quality. 16

17 Positioning Concept Using a perceptual mapping grid organisations can ask customers to plot where they think products should go on a range of bases e.g. with cars customers could be asked to give their views on car brands in terms of bases such as speed and price for example. 17

18 Positioning Concept 18

19 Positioning Concept A company can t sell to everyone as it would cost too much so any organisation must be able to segment their market and try to discover which one (or more) of these groups should be targeted. Once a firm has targeted their groups of customers they must decide what image customers should have about their product and this is where positioning and perceptual maps come in. 19

20 Consumer Buyer Behavior Consumers are exposed to various experiences and influences. Some of our responses to our environment are the results of our psychological make-up. Cultural & Social Influence Marketers attempt to recognize how culture shapes and influences behavior. Culture is a group of complex codes and passed down through generations as determinants & regulators of human behavior in society. These codes include attitudes, beliefs, values, language, religion, art, music, food, housing and product preferences. 20

21 Consumer Buyer Behavior (cont ) Marketers should also consider following group as well in the culture and social influence: Family structure has changed from extended family to nuclear family. Working women increasing Immigration communities in some countries. Religion 21

22 Consumer Buyer Behavior (cont ) Social Class Marketing research uses social class as the main criterion in identifying market segments because such a classification reveals a lot about likely behavior. Social class is an indicator of lifestyle and its existence exerts a strong influence on individual consumers. Eating out are once pleasures only enjoyed regularly by upper class members of society. Today, eating out marketers target a wide variety of consumers, with a different marketing mix strategy being designed for each identifiable group of consumers. 22

23 Consumer Buyer Behavior (cont ) Reference Group A reference group plays a more intimate role in influencing consumers. This is a group of people whose standards of behavior influence a person s attitudes, opinions and values. In general, people tend to imitate and seek advice from those closest to them. Reference groups can be small, for instance, the family group. 23

24 Model of Consumer Buying Behavior The basic steps in consumer buying behavior is shown under the diagram. 24

25 The Adoption Process The marketer s task is to create awareness and then guide the consumer through subsequent stages of the process. Without awareness of the new product, consumers cannot even consider it as a solution to need-related problems. 25

26 The Adoption Process (cont ) In the context of consumer buying behavior we can see how each adopter group possess distinct characteristics: 26

27 The Adoption Process (cont ) Innovators (2.5%) are likely to be younger, better educated, and relatively affluent with a higher social status. Early adopters (13.5%) possess many characteristics of innovators, but tend to belong to more local systems. Although social relationships are less broadly based, they tend to be opinion leaders and are influential within their particular group. The early majority (34%) is a group that is slightly above average in socioeconomic terms. They rely heavily on marketing for information and are influenced by the opinion leaders of the early-adopter category. They adopt new products before the average consumer. 27

28 The Adoption Process (cont ) Late majority (34%) adopters are more likely to adopt because the innovation has been accepted by earlier groups. Social pressure or economic considerations are more influential in this group than personal characteristics. Laggards (16%) make up the cautious group. They tend to be older, with lower socio-economic status. The innovator group may be considering a newer product before laggards have adopt the original innovation. 28

29 Past Paper Review December 2009 / Q 7 (a) Explain each of the following methods of segmenting consumer markets, and give an example in each case: (i) Geographic/Geodemographic (ii) Behavioural (iii) Psychographic (13 marks) (b) Family Life Cycle is a demographic segmentation method. Identify and describe six of the stages of the Family Life Cycle. (12 marks) 29

30 Past Paper Review (cont ) Answer (a) Geographic/geodemographic. Geographic segmentation involves dividing markets into different geographic areas such as countries, regions, counties and/ or cities and is based on the assumption that consumers within the particular region will have a similar need or taste. An example of geographic segmentation would be the car industry that would segment the markets by countries; some countries require right hand drive cars and some left. Geodemographic segmentation is based on the assumption that people in certain geographic areas share similar demographic profiles, and there are various segmentation systems such as ACORN or MOSAIC that provide demographic classifications for different neighbourhoods. 30

31 Past Paper Review (cont ) Answer (a) Behavioural segmentation divides a market according to a consumer s purchase behaviour patterns. Examples of behavioural segmentation would be loyal customers, usage rates, occasions and benefits sought. An example of benefits sought could be the watch market where some watches are bought on price, some for quality, some as fashion items and some for specific needs such as waterproofing. An example of occasions would be the greeting card market that develops products for specific occasions such as Christmas, birthdays etc. 31

32 Past Paper Review (cont ) Answer (a) Psychographic segmentation divides a market according to a customer s lifestyle, attitudes and beliefs. For example, consumers may aspire to, or have, a particular lifestyle which generates its own needs, for instance, professionals who have a need for a particular type of clothing and accessories such as briefcases etc. Attitudes such as a concern for the environment can be used as a segmentation criterion and examples of environmentally friendly products such as cleaning materials and recyclable packaging would be targeted at this particular segment. 32

33 Past Paper Review (cont ) Answer (b) Refer slide

34 Past Paper Review (cont ) December 2007 / Q 2 (c) Explain why it is necessary to segment a market. (5 marks) 34

35 Past Paper Review (cont ) Answers Segmentation is a way for organisations to divide up the mass market into smaller groups of potential customers with similar characteristics. This allows the organisation to understand the needs of a particular segment or segments and adjust its marketing strategy to satisfy those needs. There are different methods of segmenting a market, such as: geographic segmentation demographic segmentation e.g. age, sex, life cycle psychographic segmentation, such as attitudes, beliefs, lifestyle 35

36 Past Paper Review (cont ) Answers Once an organisation has segmented its market it can then decide which customer groups to target. An organisation needs to decide whether to target just one segment (often known as niche marketing) or multiple segments (known as differentiated marketing). If an organisation decides not to segment its market or to offer the same marketing strategy to all segments this is known as undifferentiated marketing. By deciding which segments to target an organisation can then develop a marketing strategy aimed at those segments which means resources and skills can be applied in the most efficient manner. Target marketing also allows the organisation to consider which segments the organisation is most able to compete in and which will be most profitable for the organisation. 36

37 Past Paper Review (cont ) Finally once an organisation has decided which segments to target it must develop a product proposition, this is known as positioning. It is a way of using the marketing mix to differentiate its products from other competitors in that market. By segmenting its market into small groups an organisation can gain a close understanding and relationship with its customers; this understanding will assist in developing a unique product/brand position. 37

38 Past Paper Review (cont ) June 2008 / Q 1 (a) Briefly explain the terms Segmentation, Targeting and Positioning. (3 marks) (b) Briefly explain three different ways of segmenting a market and give an example for each, using a brand or product you are familiar with. (9 marks) (c) Briefly explain three different options available to an organisation when choosing which segments to target, giving an example of each option. (9 marks) (d) Explain two benefits an organisation may gain by segmenting its market. (4 marks) 38

39 Past Paper Review (cont ) Answers (a) Segmentation. Is a way of dividing a market into smaller groups of consumers with similar characteristics. Targeting. Is the analysis and evaluation an organisation undertakes when deciding which segments to offer products to. Positioning. Positioning describes the way an organisation develops a unique competitive proposition for their products within a target market. 39

40 Past Paper Review (cont ) Answers (b) Organisations segment their markets into groups of customers with similar characteristics in order that they can adjust their marketing mix to meet the needs of these customers. Below are three methods an organisation may use: Demographic segmentation. Demographics is grouping customers by criteria such as age (e.g years, or 50 plus), stage in their family life cycle (e.g. single, married, married with children) or income (often defined as Social Class where consumers are divided into six classifications such as A for Upper Middle Class, B for Middle Class, C1 Lower Middle Class, C2 Skilled Working Class, D Working Class and E low level subsistence. 40

41 Past Paper Review (cont ) Answers (b) An example of demographic segmentation can be seen in broadcasting organisations that develop television channels such as Nickelodeon Junior, which is aimed at children. Another example would be British Airways who sell seats according to income, e.g. coach class aimed at low to middle income, business class or first class aimed at higher income earners. Situational segmentation. This is where a market is segmented by a particular situation or occasion. An example would be Thornton s chocolate who produce chocolates for Easter, Christmas, Mother s Day etc. 41

42 Past Paper Review (cont ) Answers (b) Geographic segmentation. Geographic segmentation is where customers are grouped by location, e.g. a country or a city/town. An example of geographic segmentation can be seen in newspapers that segment their marketing geographically and produce local papers for customers in the local area, which contain local news. 42

43 Past Paper Review (cont ) Answers (c) Once an organisation has segmented its market, it needs to decide which segments to target with its products. Below are the choices an organisation can make when deciding which segments to target. Undifferentiated marketing. This is where an organisation markets its product/brand to the whole market without segmenting or changing its marketing mix. An example would be Heinz baked beans. 43

44 Past Paper Review (cont ) Answers (c) Niche marketing or single segment. This is where an organisation chooses a single segment to sell its products to. Organisations choosing Niche marketing are able to focus on a particular segment to gain a deep understand of their needs. This allows the organisation to develop their marketing mix specifically for the needs of this segment resulting in closer customer satisfaction. An example of Niche marketing would be an exclusive fashion brand such as Chanel which targets highincome individuals only and restrict distribution of its products to retail outlets aimed at them. 44

45 Past Paper Review (cont ) Answers (c) Differentiated marketing. This is where an organisation chooses to target two or more segments and varies its product/brands accordingly to meet the different needs of these segments. An example would be a car manufacturer such as Mercedes who will design cars for different segments, e.g. a saloon car for families and a sports car for individuals. 45

46 Past Paper Review (cont ) Answers (d) Organisations are able to gain a deeper understanding of customer needs and therefore are able to produce products and develop a marketing mix that are more closely suited to those needs, resulting in more satisfied and loyal customers. Targeting. Organisations are able to choose the segments that are the most profitable for an organisation and/or most suited to the strengths and capabilities of an organisation. 46

47 Q & A 47

Psychographic Segmentation

Psychographic Segmentation Psychographic Segmentation By Jim Mintz, Managing Partner, CEPSM Psychographics marketing Psychographics marketing may be a concept that you are not fully aware of, but it is an essential part of marketing.

More information

either directly or indirectly in reasons for buying the goods.

either directly or indirectly in reasons for buying the goods. Market Segmentation, Targeting, and Positioning Ing. Martin Krištof spring 2008 2 Basic Types of Markets (products) Consumer products: goods or services purchased by an ultimate consumer for personal use

More information

Market segmentation. A Guest Article by Brian Ballard January

Market segmentation. A Guest Article by Brian Ballard January A Guest Article by Brian Ballard January 2010 Finding your niche is the element of your marketing planning that will help you to determine who your customers are, their geographic location, how and why

More information

Chapter Seven. Customer-Driven Marketing Strategy: Creating Value for Target Customers. i t s good and good for you 7-1

Chapter Seven. Customer-Driven Marketing Strategy: Creating Value for Target Customers. i t s good and good for you 7-1 i t s good and good for you Chapter Seven Customer-Driven Marketing Strategy: Creating Value for Target Customers Copyright 2012Pearson Education, Inc. 7-1 Customer-Driven Marketing Strategy: Creating

More information

Fragmentation of mass markets: Coke to many Cokes - Classic Coke, Diet Coke, Caffeine-Free, New Coke, Cherry Coke, Sprite for non-cola drinkers

Fragmentation of mass markets: Coke to many Cokes - Classic Coke, Diet Coke, Caffeine-Free, New Coke, Cherry Coke, Sprite for non-cola drinkers 1 This material is to supplement the two articles on segmentation and positioning and meant to provide a broader picture of each of the topics and the relationships among them. SEGMENTATION, TARGETING

More information

Principles of Marketing 15 th ed Phillip Kotler & Gary Armstrong

Principles of Marketing 15 th ed Phillip Kotler & Gary Armstrong Principles of Marketing 15 th ed Phillip Kotler & Gary Armstrong CHAPTER SEVEN Customer-Driven Marketing Strategy: Segmentation, Targeting & Positioning Lecturer: Emran Mohammad Mkt: 202 (Section 3,4)

More information

Global Marketing. Contemporary Theory, Practice, and Cases. By Ilan Alon, Eugene Jaffe, Christiane Prange, and Donata Vianelli. Taylor & Francis 2016

Global Marketing. Contemporary Theory, Practice, and Cases. By Ilan Alon, Eugene Jaffe, Christiane Prange, and Donata Vianelli. Taylor & Francis 2016 Global Marketing Contemporary Theory, Practice, and Cases By Ilan Alon, Eugene Jaffe, Christiane Prange, and Donata Vianelli Chapter 9 Segmenting, Targeting, and Positioning for Global Markets Learning

More information

Strategy and the Marketing Mix

Strategy and the Marketing Mix Strategy and the Marketing Mix Business Policy Please note that these slides are not intended as a substitute to reading the recommended text for this course. 0 Objectives Relevance of strategic marketing

More information

Chapter 3 Market Segmentation. Chapter Outline

Chapter 3 Market Segmentation. Chapter Outline Chapter 3 Market Segmentation Consumer Consumer Behavior, Behavior, Ninth Edition Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter Outline What Is Market Segmentation? Bases for

More information

Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) THE BUYING PROCESS Why do we need to understand the buying process of customers? THE BUYING PROCESS Why do we

More information

Chapter 2: Defining the Target Customer

Chapter 2: Defining the Target Customer Chapter 2: Defining the Target Customer Multiple Choice Questions (answer is denoted by an asterisk) 1. Identifying the unmet needs of customers in a target market allows you to: a. Determine competitive

More information

McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 2 The Role of IMC in the Marketing Process McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Marketing and Promotions Process Model Marketing Strategy and Analysis Competitive

More information

Segmentation, Targeting & Positioning

Segmentation, Targeting & Positioning Segmentation, Targeting & Positioning Resource Person MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer (UK), Practicing Marketer (SL), ACMA, CGMA

More information

Our Strategy Race: Leg 2 - From Lisbon to Cape Town. Segmentation. Bases for Consumer Market Segmentation. DEMOGRAPHIC Segmentation

Our Strategy Race: Leg 2 - From Lisbon to Cape Town. Segmentation. Bases for Consumer Market Segmentation. DEMOGRAPHIC Segmentation Our Strategy Race: Leg 2 - From Lisbon to Cape Town Market DEMOGRAPHIC 1 Leg 2 From Lisbon to Cape Town Road Map THEME 1 Consumer Markets Market 5 : geographic, Needs-benefits sought Decision Roles User

More information

Influences on consumer behaviour Situational influences, Decision-process influences, Internal influences, External influences

Influences on consumer behaviour Situational influences, Decision-process influences, Internal influences, External influences Lecture Slides + Textbook + Tutorial MKTG2112 Consumer Behaviour Marketing is the process of building profitable customer relationships by creating value for customers and capturing value in return. The

More information

Introduction. 1. What is positioning? Topic 4 Position the product Market Pla ce Concept

Introduction. 1. What is positioning? Topic 4 Position the product Market Pla ce Concept Topic 4 Position the product Market Pla ce Concept Introduction Having chosen the best market segment or segments to compete in, the marketer needs to position the product in a certain way. The idea behind

More information

Assignment Guide: Marketing Mix Case study- Ben Sherman

Assignment Guide: Marketing Mix Case study- Ben Sherman Assignment Guide: Marketing Mix Case study- Ben Sherman Table of Content Summary/ Abstract...2 Introduction... 2 The Understanding of Marketing Mix: 4 P s and 7 P s...2 Product...3 Place... 3 Price...3

More information

Design technology Higher level Paper 1

Design technology Higher level Paper 1 Design technology Higher level Paper 1 Thursday 12 May 2016 (morning) 1 hour Instructions to candidates Do not open this examination paper until instructed to do so. Answer all the questions. For each

More information

Business-Level Strategy

Business-Level Strategy 1 Chapter 4 Business-Level An integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets PowerPoint

More information

How to Identify a Target Market and Prepare a Customer Profile

How to Identify a Target Market and Prepare a Customer Profile How to Identify a Target Market and Prepare a Customer Profile Written by Women s Enterprise Centre 1. WHAT YOU SHOULD KNOW BEFORE GETTING STARTED In order to market your product or service, it is imperative

More information

Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) 1

Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) 1 Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) 1 Learning Objectives What are macro and micro environment? What are the factors in the internal and external

More information

ASSIGNMENT MEMORANDUM

ASSIGNMENT MEMORANDUM Page 1 of 8 ASSIGNMENT MEMORANDUM SUBJECT : PRODUCT MANAGEMENT (PM) ASSIGNMENT : 1 st SEMESTER 2010 SPECIFIC INSTRUCTIONS The following memorandum outlines the basic topics that should have been covered

More information

Chapter 4 Market research

Chapter 4 Market research Chapter 4 Market research Businesses regard having an understanding of the market place as a major priority. This is because of the following factors: the expense of launching new products; the importance

More information

Chapter 2.2 Market Segmentation & Target Market

Chapter 2.2 Market Segmentation & Target Market Chapter 2.2 Market Segmentation & Target Market What You ll Learn: Definition of Market Segmentation Four methods to segment a market Differentiate between Mass Marketing and Segmentation Analyzing Markets

More information

The Changing Marketing Environment 2-1

The Changing Marketing Environment 2-1 The Changing Marketing Environment 2-1 Chapter Goals To gain an understanding of: The concept of environmental scanning. How external forces influence a firm s marketing program: Demography, economics,

More information

Chapter 2 The Role of IMC in the Marketing Process. Learning Objectives. Learning Objectives

Chapter 2 The Role of IMC in the Marketing Process. Learning Objectives. Learning Objectives Chapter 2 The Role of IMC in the Marketing Process Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

More information

SEGMENTATION BENEFITS OF SEGMENTATION

SEGMENTATION BENEFITS OF SEGMENTATION SEGMENTATION BENEFITS OF SEGMENTATION Segmentation is an analytical process that identifies key segments within a target market and determines which segments are of higher or lower priority for a brand.

More information

Part 5 Marketing: Developing Relationships

Part 5 Marketing: Developing Relationships Part 5 Marketing: Developing Relationships 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This

More information

Targeting & Segmentation

Targeting & Segmentation Targeting & Segmentation Targeting and Segmentation If Direct Marketing is the focusing of resources on the superior opportunity then targeting is the activity which identifies the superior opportunity.

More information

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR: A REVIEW

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR: A REVIEW FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR: A REVIEW Research Scholar Swami Ramanand Teerth Marathwada University, Nanded (MS) INDIA Consumer buying behavior is the behavior of final consumer. The consumer

More information

IM S5028. IMS Customer Relationship Management. What Is CRM? Ilona Jagielska 1

IM S5028. IMS Customer Relationship Management. What Is CRM? Ilona Jagielska 1 IMS5028 - Customer Relationship Management CRM Concepts and Definitions What Is CRM? CRM is a strategy for acquiring and retaining profitable customers CRM is a strategy for optimising the lifetime value

More information

emma retail trends and insights

emma retail trends and insights emma retail trends and insights May 2015 Having it all The in-store experience is still key to young Australian women s shopping habits, creating opportunities for retailers. ...they shop at both online

More information

Marketing Channels, 8e (Palmatier) Chapter 02 End-User Analysis: Segmenting and Targeting

Marketing Channels, 8e (Palmatier) Chapter 02 End-User Analysis: Segmenting and Targeting Marketing Channels, 8e (Palmatier) Chapter 02 End-User Analysis: Segmenting and Targeting 1) According to research, which component of the marketing mix is LEAST amenable to global standardization efforts?

More information

"The Responsible Traveller"

The Responsible Traveller "The Responsible Traveller" A Swedish Market Segmentation based on analysis of secondary data from: Fairtrade Foundation The Swedish travel industry South African Tourism and interpreted in the context

More information

Mark Scheme (Results) January Pearson Edexcel International Advanced Subsidiary in Business Studies (WBS02)

Mark Scheme (Results) January Pearson Edexcel International Advanced Subsidiary in Business Studies (WBS02) Mark Scheme (Results) January 2015 Pearson Edexcel International Advanced Subsidiary in Business Studies (WBS02) Unit 2: Business Structures and Processes Edexcel and BTEC Qualifications Edexcel and BTEC

More information

CRIF DECISION SOLUTIONS - EURISKO CREDIT CARD SURVEY

CRIF DECISION SOLUTIONS - EURISKO CREDIT CARD SURVEY CRIF DECISION SOLUTIONS - EURISKO CREDIT CARD SURVEY September 2003 CONTENTS SURVEY INTRODUCTION...page 1 EXECUTIVE SUMMARY... 3 Chapter 1 MARKET CONTEXT AND EVOLUTION...7 1.1 Reference scenarios...7 1.2

More information

PUTTING YOUR SEGMENTATION WHERE IT BELONGS Implementation Tactics for Taking your Segmentation off the Bookshelf and into the Marketplace

PUTTING YOUR SEGMENTATION WHERE IT BELONGS Implementation Tactics for Taking your Segmentation off the Bookshelf and into the Marketplace Putting your Segmentation Where it Belongs 1 PUTTING YOUR SEGMENTATION WHERE IT BELONGS Implementation Tactics for Taking your Segmentation off the Bookshelf and into the Marketplace For many firms, market

More information

BRAND PREFERENCE OF BRANDED COCONUT OIL CONSUMER IN COIMBATORE CITY AN ANALYTICAL STUDY

BRAND PREFERENCE OF BRANDED COCONUT OIL CONSUMER IN COIMBATORE CITY AN ANALYTICAL STUDY Available online at http://www.ijasrd.org/in International Journal of Advanced Scientific Research & Development Vol. 04, Spl. Iss. 02, Ver. I, Feb 2017, pp. 40 48 e-issn: 2395-6089 p-issn: 2394-8906 BRAND

More information

Principles of Marketing. by Jeff Tanner and Mary Anne Raymond

Principles of Marketing. by Jeff Tanner and Mary Anne Raymond Principles of Marketing by Jeff Tanner and Mary Anne Raymond Chapter 3 Consumer Behavior How People Make Buying Decisions 2010 Flat World Knowledge, Inc. do you buy the you buy? did you on what you bought?

More information

Paper: 10, Services Marketing Module: 5, Goods Vs. Service Marketing

Paper: 10, Services Marketing Module: 5, Goods Vs. Service Marketing Paper: 10, Services Marketing Module: 5, Goods Vs. Service Marketing Goods Vs Service Marketing 1.0 Introduction For having a discussion on the difference between the marketing of Goods and services, it

More information

Topic: Shares, Shareholders and Share Prices 3.1 What is Business?

Topic: Shares, Shareholders and Share Prices 3.1 What is Business? Topic: Shares, Shareholders and Share Prices 3.1 What is Business? What You Need to Know What are shares and shareholdings? Share prices how determined and why they change Market capitalisation the value

More information

The Impact of Loyalty and Reward Schemes upon Consumer Spending and Shopping Habits

The Impact of Loyalty and Reward Schemes upon Consumer Spending and Shopping Habits The Impact of Loyalty and Reward Schemes upon Consumer Spending and Shopping Habits Author: Eanna Murphy. Client Services Manager. Azpiral. Date: 19/08/2015 Contents Introduction... 3 Loyalty and Rewards...

More information

Session 5: Market segmentation analysis. Session 5: Market segmentation

Session 5: Market segmentation analysis. Session 5: Market segmentation Session 5: Market segmentation analysis Part 3 implementing strategic marketing Session 5: Market segmentation 2 ILOs: you should be able to understand: The concept of reference market The objectives of

More information

CIM Level 4 Certificate in Professional Marketing

CIM Level 4 Certificate in Professional Marketing CIM Level 4 Certificate in Professional Marketing Marketing (2100) Time: 14:00 16:00 Date: 30 June 2015 The examination comprises 50 compulsory questions Section 1 40 stand-alone multiple choice questions

More information

Topic 1 Marketing Concepts

Topic 1 Marketing Concepts Topic 1 Marketing Concepts What is Marketing? Marketing: the activity, set of institutions, and process for creating, communicating, delivering and exchanging offerings that have value for customers, client

More information

Christmas survey 2017 What will Christmas have in store for Belgians this year?

Christmas survey 2017 What will Christmas have in store for Belgians this year? Christmas survey 2017 What will Christmas have in store for Belgians this year? Christmas survey 2017 What will Christmas have in store for Belgians this year? Belgians spend less online compared to Europeans

More information

Chapter 2 Market analysis

Chapter 2 Market analysis Chapter 2 Market analysis Market analysis is concerned with collecting and interpreting data about customers and the market so that businesses adopt a relevant marketing strategy. Businesses carry out

More information

Exploiting IT for business benefit

Exploiting IT for business benefit Exploiting IT for business benefit EITBB 5. Customer relationship management benefit. BCS 1 Transactions versus relationships Transactions are usually: One-off purchases or uses of services With no automatic

More information

Why Social Should Be A Part of Your Advertising Strategy. Bruce Kearns, VP Operations

Why Social Should Be A Part of Your Advertising Strategy. Bruce Kearns, VP Operations Why Social Should Be A Part of Your Advertising Strategy Bruce Kearns, VP Operations About Community Elf Formed in late 2010 in Pittsburgh Content Marketing - before content marketing was chic Service

More information

7. Family is one of the factors that influence consumer behavior. A. social B. personal C. business D. cultural

7. Family is one of the factors that influence consumer behavior. A. social B. personal C. business D. cultural 1. is never simple, yet understanding it is the essential task of marketing management. A. Consumption pioneering B. Brand personality C. Understanding the difference between primary and secondary data

More information

COMMUNICATION STRATEGY OF ADIDAS. communication strategy

COMMUNICATION STRATEGY OF ADIDAS. communication strategy COMMUNICATION STRATEGY OF ADIDAS ADIDAS The German National Adolph Dassler could be credited with the creation of the phenomenal brand "Adidas". His nickname "Adi" and the first syllable of his last name

More information

So, for a Parker fountain pen, the product analysis would be: Figure 1: Product analysis

So, for a Parker fountain pen, the product analysis would be: Figure 1: Product analysis So, for a Parker fountain pen, the product analysis would be: Core Benefit Writing implement for communication Real Product A physical fountain pen Enhanced Product Brand identity, (Parker), guarantee

More information

Leadership, Attitude, Performance...making learning pay!

Leadership, Attitude, Performance...making learning pay! AP Leadership, Attitude, Performance...making learning pay! Marketing-Information Management LAP 9 Performance Indicator: IM:196 Market Identification Find your mark(et) Pick your clique Pool your resources

More information

CIM Level 4 Certificate in Professional Marketing

CIM Level 4 Certificate in Professional Marketing CIM Level 4 Certificate in Professional Marketing Marketing (2100) Time: 14:00 16:00 Date: 20 July 2016 Multiple Choice Examination The examination comprises 50 compulsory questions Section 1 40 stand-alone

More information

The Impact of Proper Marketing Communication Channels on Consumer s Behavior and Segmentation Consumers

The Impact of Proper Marketing Communication Channels on Consumer s Behavior and Segmentation Consumers The Impact of Proper Marketing Communication Channels on Consumer s Behavior and Segmentation Consumers Tan Kai Hun 1, Rashad Yazdanifard 2 1 Center of Southern New Hampshire University Programs, HELP

More information

Marketing: Advertising and Sales Promotion

Marketing: Advertising and Sales Promotion Marketing: Advertising and Sales Promotion Food Communication II Section D Segmenting and Targeting All of the information has been adapted from: Kotler P. Armstrong, G., 2004. Principles of Marketing.

More information

Contents. Part- I: Introduction to Consumer Behavior. Chapter 1 Consumer Research Chapter 2 Segmenting Consumers 22-40

Contents. Part- I: Introduction to Consumer Behavior. Chapter 1 Consumer Research Chapter 2 Segmenting Consumers 22-40 Contents Preface Part- I: Introduction to Consumer Behavior Chapter 1 Consumer Research 3-21 Chapter 2 Segmenting Consumers 22-40 Part - II: Consumer as an Individual Chapter 3 Motivation 43-66 Chapter

More information

MARKET STRUCTURES. Economics Marshall High School Mr. Cline Unit Two FC

MARKET STRUCTURES. Economics Marshall High School Mr. Cline Unit Two FC MARKET STRUCTURES Economics Marshall High School Mr. Cline Unit Two FC Price Discrimination Our previous example assumed that the monopolist must charge the same price to all consumers. But in some cases,

More information

BUMT Chapter 7 Notes

BUMT Chapter 7 Notes 2009 FIDM/The Fashion Institute of Design & Merchandising BUMT 3850 - Chapter 7 Notes 1 Chapter Understanding Local Buyers Global Marketing, BUMT 3850 Regina Korossy 7 Part of being an effective marketer

More information

Marketing*Fundamentals!

Marketing*Fundamentals! Marketing*Fundamentals! Topic 1 - Introduction to Marketing Fundamentals Marketing* Marketing is a social & managerial process by which individuals & groups obtain what they need and want through creating,

More information

Marketing Plan NEXT Plc

Marketing Plan NEXT Plc Marketing Plan Next 1 Marketing Plan NEXT Plc Marketing Plan Next 2 Table of Contents 1.0 Introduction... 3 2.0 Situation Analysis... 3 2.1 PEST Analysis... 3 Political factors... 3 Economic factors...

More information

Chapter 7. Customer-Driven Marketing Strategy: Creating Value for Target Customers. Md. Afnan Hossain. Lecturer, School of Business & Economics

Chapter 7. Customer-Driven Marketing Strategy: Creating Value for Target Customers. Md. Afnan Hossain. Lecturer, School of Business & Economics Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers Md. Afnan Hossain Lecturer, School of Business & Economics Source: P. Kotler & G. Armstrong (2015) Principles of Marketing;

More information

Introduction to Psychology. Lecture no: 43 TRY TO FIND ANSWERS TO THESE QUESTIONS:

Introduction to Psychology. Lecture no: 43 TRY TO FIND ANSWERS TO THESE QUESTIONS: Lecture no: 43 TRY TO FIND ANSWERS TO THESE QUESTIONS: Why do manufacturers advertise their products? Why do advertisers use models in the advertisements? Why do advertisers use cartoons rather than human

More information

Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 3 Market Segmentation and Strategic Targeting

Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 3 Market Segmentation and Strategic Targeting Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 3 Market Segmentation and Strategic Targeting 1) The process of dividing a market into distinct subsets of consumers with common needs or characteristics

More information

Marketing: An Introduction

Marketing: An Introduction Marketing: An Introduction Armstrong, Kotler Chapter Seven Product, services, and branding strategy Looking Ahead Define product and the major classifications of products and services. Describe the roles

More information

Shifting Environment From a Focus on Products to Customer Centricity

Shifting Environment From a Focus on Products to Customer Centricity Shifting Environment From a Focus on Products to Customer Centricity Contents Section 1: Affinity Marketing Section 2: Customer Centricity: A Differentiating Factor Section 3: Customer Centricity in Bancassurance

More information

See Your Consumers in High Definition

See Your Consumers in High Definition See Your Consumers in High Definition www.kantarworldpanel.com OUR ASPIRATION IS TO KNOW MORE THAN ANYONE ABOUT WHEN, WHERE, WHAT AND WHY PEOPLE BUY AND USE For further information about Kantar Worldpanel

More information

Marketing process & consumer behaviour

Marketing process & consumer behaviour Marketing process & consumer behaviour Key Topics Definition of marketing The external marketing environment Segmentation and target marketing The consumer buying process Organizational markets and buying

More information

IDEAL CUSTOMER AVATAR TOOLKIT

IDEAL CUSTOMER AVATAR TOOLKIT IDEAL CUSTOMER AVATAR TOOLKIT Ideal Customer AVATAR TOOLKIT 2 According to the SBA, 95% of small businesses fail within the first 5 years. One of the main reasons these businesses fail is the lack of a

More information

Segmentation and Targeting

Segmentation and Targeting Segmentation and Targeting Outline The segmentation-targeting-positioning (STP) framework Segmentation The concept of market segmentation Managing the segmentation process Deriving market segments and

More information

CONCEPTS AND BASES FOR MARKET SEGMENTATION

CONCEPTS AND BASES FOR MARKET SEGMENTATION From the SelectedWorks of Nnamdi Emeana 2015 CONCEPTS AND BASES FOR MARKET SEGMENTATION Nnamdi Emeana Available at: https://works.bepress.com/nnamdiemeana/3/ CONCEPTS AND BASES FOR MARKET SEGMENTATION

More information

CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES

CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES Managing the customer lifecycle customer retention and development Three stages of the customer lifecycle 1. Customer acquisition 2. Customer

More information

Marketing Plan Worksheet

Marketing Plan Worksheet Small Business & Technology Development Center Marketing Plan Worksheet This SBTDC Marketing Plan Worksheet is intended to guide you through the writing and organization of an effective marketing plan.

More information

Module Contact: Dr Usha Sundaram NBS Copyright of the University of East Anglia Version 1

Module Contact: Dr Usha Sundaram NBS Copyright of the University of East Anglia Version 1 UNIVERSITY OF EAST ANGLIA Norwich Business School UG Examination 2014-15 PRINCIPLES OF MARKETING MAIN EXAMINATION Time allowed: 2 hours Answer TWO questions Each question is worth 100 marks The TOTAL number

More information

SHOPPING HABITS REPORT. how the recession has impacted consumer shopping habits

SHOPPING HABITS REPORT. how the recession has impacted consumer shopping habits 2009 SHOPPING HABITS REPORT how the recession has impacted consumer shopping habits 1 table of contents Introduction...3 1. Key Findings...4 2. Respondent Profile...6 Demographic Characteristics...6 Shopper

More information

FACTFILE: GCE BUSINESS STUDIES

FACTFILE: GCE BUSINESS STUDIES FACTFILE: GCE BUSINESS STUDIES AS1 MARKETS AND MARKET FORCES Markets and Market Forces Learning outcomes Students should be able to: demonstrate and apply knowledge and understanding of the main features

More information

Marketing strategy and planning

Marketing strategy and planning Marketing strategy and planning Introduction This learning guide was written by Sara Panter, an associate tutor at Ashridge. It is one of a series produced by the Learning Resource Centre. Each guide sets

More information

4.2 - Market Research, Segmentation and Positioning 15/05/2013

4.2 - Market Research, Segmentation and Positioning 15/05/2013 4.2 Marketing Research Examine how appropriate the marketing objectives are in achieving the goals of an organisation Analyse the role of market research Evaluate primary methods of market research 1 The

More information

Product and Branding Strategy

Product and Branding Strategy Product and Branding Strategy Presentation Outline Different levels of a product Characteristics of products and services Product mix concept Demand measurement Branding Brand Architecture Brand Equity

More information

Chapter 5: IDENTIFYING AND TARGETING ATTRACTIVE MARKET SEGMENTS. Chapter 11: Strategic Leadership

Chapter 5: IDENTIFYING AND TARGETING ATTRACTIVE MARKET SEGMENTS. Chapter 11: Strategic Leadership Chapter 5: IDENTIFYING AND TARGETING ATTRACTIVE MARKET SEGMENTS Learning outcomes After reading this chapter, you should be able to: Explain the importance of segmentation, targeting and positioning Differentiate

More information

Defining Paternity Leave: Shifting Roles, New Responsibilities in the Family and the Workplace

Defining Paternity Leave: Shifting Roles, New Responsibilities in the Family and the Workplace Boston College Center for Work & Family E X E C U T I V E B R I E F I N G S E R I E S Defining Paternity Leave: Shifting Roles, New Responsibilities in the Family and the Workplace This presentation is

More information

Chapter 2 The Marketing Environment

Chapter 2 The Marketing Environment Chapter 2 The Marketing Environment 1 Learning outcomes Describe the role that the marketing landscape plays and the influence that it exerts on the organisation Explain the interfaces between marketing

More information

Product Line Analysis. Chapter 14

Product Line Analysis. Chapter 14 Product Line Analysis Chapter 14 Short Description Background Strategic Rationale & Implications Strengths & Advantages Weaknesses & Limitations Process for Applying Technique Case Study: EBay FAROUT Ch14.2

More information

Chapter 6. Segmentation, Targeting, and Positioning Target marketing, market segmentation, and product positioning; driving forces in the world of

Chapter 6. Segmentation, Targeting, and Positioning Target marketing, market segmentation, and product positioning; driving forces in the world of Chapter 6. Segmentation, Targeting, and Positioning Target marketing, market segmentation, and product positioning; driving forces in the world of marketing Atomic Skis Canada using these concepts, it

More information

Importance of demographics segmentation

Importance of demographics segmentation Demographic segmentation is the process of dividing the total people in the market based on the customer demographics. Demographic segmentation slices the market on parameters like age of the customer,

More information

AIPMM CPM/CPMM Certification Examination GLOSSARY OF TERMS

AIPMM CPM/CPMM Certification Examination GLOSSARY OF TERMS Learn. Apply. Lead AIPMM CPM/CPMM Certification Examination Developed by the Association for International Product Marketing and Management (www.aipmm.com), the Certified Product Manager and Certified

More information

Marketing information system

Marketing information system Conducting Marketing Research and Forecasting Demand Marketing information system (intelligence) What will we learn? What is MIS (Marketing information system)? What is marketing research? Examples of

More information

Chapter 12. Customer-Driven Marketing

Chapter 12. Customer-Driven Marketing Chapter 12 Customer-Driven Marketing 1 2 3 Summarize the ways in which marketing creates utility. Explain the marketing concept and relate how customer satisfaction contributes added value. Describe not-for-profit

More information

Table of Contents. Introduction: Leading & Sustainable Retailing NSLC Strategic Planning Approach... 2

Table of Contents. Introduction: Leading & Sustainable Retailing NSLC Strategic Planning Approach... 2 F i v e - y e a r s t r a t e g i c p l a n 2 0 1 0 2 0 1 5 Table of Contents Introduction: Leading & Sustainable Retailing... 1 NSLC Strategic Planning Approach... 2 Key Trends as Drivers for Change...

More information

4-1. Chapter 4. Understanding the Marketing Environment: Segmentation, Targeting, and Positioning

4-1. Chapter 4. Understanding the Marketing Environment: Segmentation, Targeting, and Positioning 4-1 Chapter 4 Understanding the Marketing Environment: Segmentation, Targeting, and Positioning 4-2 1. Explain the process of STP marketing. 2. Describe bases for identifying target segments. 3. Discuss

More information

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS A. The Role of Marketing Communications B. Developing Effective Communications C. Deciding on the Marketing Communications Mix D. Managing the

More information

B2C Data Universe Datasheet

B2C Data Universe Datasheet B2C Data Universe Datasheet Our B2C Data is the ideal starting point for your next marketing campaign, from the people who are passionate about data. Our B2C universe is a consumer data pool of over 45

More information

Demand, Supply, and Price

Demand, Supply, and Price Demand, Supply, and Price The amount of a good or service that we demand, the amount of a good or service that suppliers supply, and the price of a good or service all affect one another. Let's examine

More information

INTRODUCTION TO SOCIAL MARKETING AND SEGMENTATION

INTRODUCTION TO SOCIAL MARKETING AND SEGMENTATION INTRODUCTION TO SOCIAL MARKETING AND SEGMENTATION Event: Social Marketing Training Workshop Date: 17th-18th May, 2011 Location: Toulouse (France) Speaker: Michael Carreno, Transport Research institute/

More information

Research on Sales and Marketing of Kellogg accordingly to Consumer Behavior in Chennai

Research on Sales and Marketing of Kellogg accordingly to Consumer Behavior in Chennai Research on Sales and Marketing of Kellogg accordingly to Consumer Behavior in Chennai B VIMAL 1, Dr. S.N.SOUNDARARAJAN 2 Dr. CH. BALA NAGESWARA RAO3 1 Student Dept. of Saveetha School of Management, India.

More information

Marketing Natural Resources CSS 385

Marketing Natural Resources CSS 385 Marketing Natural Resources CSS 385 Buyer behavior segmentation Macroenvironment Horizontal diversification strategy Product attributes Psychographic information Economic models Life cycle stages 2 3 4

More information

The Scorecard: Misunderstood and Misused

The Scorecard: Misunderstood and Misused Of all the steps in the category management seven-step process, I believe that the scorecarding step is the most misunderstood and misused. That is because the scorecard step is the linchpin of category

More information

WHY YOU SHOULDN T IGNORE COUPON SITES

WHY YOU SHOULDN T IGNORE COUPON SITES WHY YOU SHOULDN T IGNORE COUPON SITES A white paper exploring how coupon sites impact the consumer purchase journey CJ Insights 2013 CJ Affiliate by Conversant Table Of Contents Overview 2 Key Findings

More information

Measuring and modelling brand attitudes

Measuring and modelling brand attitudes Publishing Date: September 1999. 1999. All rights reserved. Copyright rests with the author. No part of this article may be reproduced without written permission from the author. Measuring and modelling

More information

Classification Data. Demographics. Business. Financial. Day of week

Classification Data. Demographics. Business. Financial. Day of week Classification Data = available in Affluent urope 2016 / M = available in Affluent Middle ast 2016 / A = available in Affluent Africa 2016 / L = available in Affluent Latin America 2015 Demographics Day

More information