Questions on Market Segmentation 1a. What is Market segmentation? How is the pra
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Question
Questions on Market Segmentation
1a. What is Market segmentation? How is the practice of market segmentation related to the marketing concept?
1b. How are Market segmentation, targeting, and positioning, interrelated? Explain how these three concepts can be used to develop a marketing strategy for a product.
1c. Make a list of the advantages and disadvantages of using demographics as a basis for segmentation. Can demographics and psychographics be used together to segment markets? Explain with a direct example.
1d. Many marketers have found that a relitively small group of heavy users accounts for a large amount of the total products consumer. Make a list of the advantages and disadvantages of targeting these heavy users.
1e.Under which circumstances and for what types of products should a marketer segment the market on the basis of (a) awareness status (b) brand loyality and (c) usage situation?
Explanation / Answer
1. Market segmentation is the way toward isolating a potential market into subsets of buyers with normal needs or qualities and choosing at least one fragments to focus with an unmistakable advertising blend. Prior to the boundless reception of the showcasing idea, most organizations rehearsed mass promoting - that is, putting forth a similar item and advertising blend to all purchasers. The showcasing idea expresses that an organization must decide the requirements and needs of specific advertise portions and fulfil them superior to rivalry. Therefore, organizations who received the advertising idea must section their business sectors and create items or administrations focusing on various buyer gatherings. For instance, the Accor assemble works Ibis Hotels (for the most part 3 Star) for the inbound relaxation market and spending plan cognizant corporate voyager, Mercure Hotels (3-5 Star) for the short remain corporate explorer, Novotel Hotels (generally 4 Star) for the medium range short remain corporate and quality recreation market, and Sofitel (universal 5 Star Hotels) for the upmarket corporate voyager and gathering gatherings.
2. Division comprises of subdividing the market into homogeneous bunches and it is the initial phase in a three-stage showcase methodology. In the wake of dividing the market, the advertiser must choose at least one portions to focus with a promoting blend. The third step is to position the item so it is seen by the objective market to fulfil its needs superior to other aggressive contributions. For instance, a toothpaste maker can fragment the market as indicated by the advantages that customers search for in the item. The firm may choose one segment, such as those purchasers who are essentially worried about plaque aversion, as its objective market. At that point, the organization must position the item with the goal that it is seen as giving preferable plaque anticipation over other toothpaste marks available.
3. Statistic data is the most available and practical approach to distinguish an objective showcase. Socioeconomics are less demanding to gauge than other division factors. Most optional information (e.g., evaluation information) are communicated in statistic terms and generally media create statistic profiles of their crowds. Likewise, statistic patterns uncover moves in age and salary that flag business open doors for advertisers. Socioeconomics, be that as it may, tend to be one-dimensional in light of the fact that it gives data on the possibility to utilization however not on why a specific brand is utilized or precisely who utilizes it. Subsequently, socioeconomics help find a target advertise, albeit mental and sociocultural qualities help portray who its individuals are, the means by which they think, feel, and act.
4. Overwhelming clients speak to the most benefit potential. For instance, investigate demonstrates that between 25 furthermore, 35 percent of lager consumers represent more than 70 percent of all brew expended.
Along these lines, numerous organizations target overwhelming clients, as opposed to attempt to build the utilization among light and medium clients of their items. On the off chance that such many organizations focus on the overwhelming clients, in any case, these business sectors will wind up immersed. Advertisers should in this manner observe holes in focusing on light and medium clients and seek after these buyer bunches more forcefully.
5. Outline of conditions and items are as per the following (take note of that suppositions on these issues may fluctuate):
Awareness status is most suitable for sectioning the market for another item. For precedent, if most potential customers are ignorant of the item, the advertiser ought to plan a mindfulness building limited time crusade. Later, when generally potential purchasers wind up mindful of the item, the promoting ought to be intended to get shoppers to want and really purchase the item.
b) Brand dependability can be utilized in division in a few different ways. For instance, an advertiser of moment espresso should: 1) Study the qualities of its "in-your-face" faithful clients and bolster their devotion with unique arrangements and advancements. The organization ought to likewise target buyers with comparative qualities inside the bigger populace.
2) The advertiser ought to likewise examine shoppers who are faithful to a few brands of espresso, including its own image. These brands ought to be those that are like its own image in light of the fact that such information will demonstrate the firm the brands that are its nearest rivals.
3) By examining buyers who demonstrate no dependability to any brand, the organization may choose whether such clients merit drawing in and how to do as such.
c) Use-circumstance examination can assist advertisers with increasing item utilization. For instance, sweet, blossom, and welcome cards advertisers forcefully advance their items around Mother's Day and Father's Day. As of late, camera film advertisers began to advance their items for these events by urging customers to take photos of their guardians on these occasions.
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