Market Segmentation Example in Marketing Plan
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Winning at Segmentation Strategies for a Digital Age 2
Winning at Segmentation Strategies for a Digital Age 2 Abstract Segmentation has long been considered a basic exercise to understand customers, competitors and the operating environment to enable businesses to make the most of market opportunities and minimize threats or business risks. Over the years segmentation approaches have evolved and broadened using a variety of metrics including simple demographics, behavioral, psychographic, needs-based, and profitability-based or a combination of these. However, these approaches have certain limitations that impede their efficacy. Moreover, the present context of changing consumer behavior, heightened brand competition and growing influence of the digital medium is forcing organizations to rethink their approach towards segmentation. Organizations are looking for models that can help them overcome the challenging task of discerning consumer buying behavior in relation to organizational capabilities and competitive standing. We believe that organizations need to take a fresh look at their approach towards segmentation. This approach is contingent on a ‘Value From’ and ‘Value To’ criteria that flows from design to action across various stages of the segmentation approach. Organizations should assess their current state comprehensively and then design a multi-dimensional segmentation framework. They should then develop a clear value proposition, define and deliver their capabilities and finally ensure continuous measurement. Segmentation should be spread across the organization; understanding the customer should be a way of life and a fundamental driver of shareholder value. 3 Winning at Segmentation The Changing State of Segmentation Segmentation is widely acknowledged as a fundamental needs requires a thorough understanding of customer component of understanding and addressing an requirements. -
Customer Focus Through Market Segmentation
CORE Metadata, citation and similar papers at core.ac.uk Provided by Göteborgs universitets publikationer - e-publicering och e-arkiv International Business Master Thesis No 2001:43 Customer Focus through Market Segmentation - The Case of Volvo CE and the Recycling/Waste Management Segment Daniel Nilsson and Josef Olsson Graduate Business School School of Economics and Commercial Law Göteborg University ISSN 1403-851X Printed by Novum Grafiska ii "Try not to become a man of success, but rather try to become a man of value." - Albert Einstein iii ABSTRACT Today, companies operating in heavy manufacturing industries experience more complex market situations. Customers are becoming more sophisticated and the competition is increasing. In order to survive, companies must become aware of how value is generated for customers to be able to satisfy their needs. An implementation of a market segmentation approach is a useful tool in becoming more customer focused, as it creates a better ability to identify how value is generated for customers in a segment and adjust its activities in order to provide solutions for their needs. In order to see how value is generated in a segment and how a company can adapt its marketing and sales activities according to that knowledge, we have used Volvo CE and the recycling/waste management segment. To find out how value is generated for customers in this segment, we have used a theoretical framework consisting of customer-perceived value and its influencers organisational buying behaviour and positioning. We have created a framework that can be used by a company in the heavy manufacturing industry to identify how customer-perceived value is generated in a specific segment. -
The Emergence of a Mass Market and the Dynamics of Retail Forms in Korea Insoo Baek
The Emergence of a Mass Market and the Dynamics of Retail Forms in Korea Insoo Baek In this paper, I examine the evolution of major retail forms— supermarkets, department stores, discount stores, and convenience stores—in Korea during three phases from the 1970s to the 1990s. Korea provides a useful comparison to Japan, showing how two nations subject to similar pressures from mass markets have experienced difficult structural and operational changes within retailing. Particular emphasis is given to changing markets and competition among retail forms and the relation of those factors to operating systems. I find that, although the dynamics of retail change in later developed countries create similar innovations in retail forms, plural paths of adaptation occur across national boundaries because of differences in markets, competition, and operating systems. Economic development in Korea radically changed the forms of retailing in the country within a short period. The rapid economic growth not only boosted production but also increased private spending, causing a boom in consumption. Taking advantage of this business opportunity, a modern type of retailing, different from traditional forms, has emerged recently and has itself become a factor in maintaining economic growth. Research focusing on spending patterns and on distribution (a channel that connects spending and production) is necessary to understand the process of Korean economic development. Yet much of the research to date has approached the subject from the production side and has neglected consumption. This could be the result of considering de- mand only in the export market while overlooking demand in the domestic ____________ I wish to thank the commentator and audience members at the “Retailing and Distribution” session of the Business History Conference (June 2003) for their assistance in developing my ideas about this article. -
Essentials of Marketing Chapter 2 Marketing Strategy Planning
Essentials of Marketing Chapter 2 Marketing Strategy Planning McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. At the end of this presentation, you should be able to: 1. Understand what a marketing manager does. 2. Know what marketing strategy planning is—and why it is the focus of this book. 3. Understand target marketing. 4. Be familiar with the four Ps in a marketing mix. 5. Know the difference between a marketing strategy, a marketing plan, and a marketing program. 2–2 At the end of this presentation, you should be able to: 6. Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. 7. Know four broad types of marketing opportunities that help in identifying new strategies. 8. Understand why strategies for opportunities in international markets should be considered. 9. Understand the important new terms. 2–3 The Management Job in Marketing (Exhibit 2-1) Whole-Company Strategic Marketing Management Planning Planning Control Marketing Plan(s) Implement Marketing and Program Plan(s) and Program 2–4 What is a Marketing Strategy? (Exhibit 2-2) The The marketingmarketing mix mix TARGET MARKET 2–5 Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3) The marketing mix Production-oriented manager sees Marketing-oriented manager sees everyone as basically similar and everyone as different and practices “mass marketing” practices “target marketing” 2–6 An Application of Target Marketing 2–7 Developing Marketing Mixes for Target Markets (Exhibit 2-4) The marketing mix TARGET MARKET 2–8 The Product Element of the Marketing Mix Courtesy of Clear Blue Inc. -
Mass Prestige Brands – the End of Traditional Luxury Brand Marketing?
Ekonomia Międzynarodowa 27 (2019) http://dx.doi.org/10.18778/2082-4440.27.03 Mass Prestige brands – the end of traditional luxury brand marketing? Joanna Pietrzak*1 Introduction The luxury goods market has shown significant growth during the last decade and is regarded as one of the most lucrative business areas globally due to its resilience to economic downturns. In 2017, the aggregated sales of the world’s 100 biggest luxury goods companies reached 247 billion USD, showing 10.8 percent annual growth and a composite net profit margin of 9.8 percent (Deloitte 2019). For ma- ny years, the luxury goods industry has maintained its exclusive and elitist image and concentrated solely on a narrow niche of wealthy consumers able to afford highly-priced articles produced in limited numbers. This characteristic feature of the luxury goods market has been undergoing radical change recently, challenged by three major trends, namely: (1) the growing number of wealthy consumers worldwide; (2) the changing demographics of consumer segments with access to luxury goods; (3) the technological revolution and the omnipresent internet as a communications tool and distribution channel. Over the past several years, a substantial increase in individual financial wealth has been taking place globally. The number of wealthy individuals grew noticeably, not only in traditionally prosperous countries like the USA, Japan, or Western European countries but also in emerging ones like China, India, Bangladesh, Nigeria, Brazil, or Poland. According to the Capgemini World Wealth Report (Capgemini 2019), in 2018, there were 18 million people whose liquid financial assets exceeded 1 million USD. -
Advertising and Promotion
Advertising and Promotion EXAM INFORMATION DESCRIPTION Exam Number Advertising and Promotion provides students with an 412 understanding of basic marketing principles and training for Items entry-level job positions in advertising and promotion. Students will experience different advertising methods to reach 37 target audiences, including newspaper, radio, TV, internet, mail, Points outdoor, and special promotion events. Specific skills will help students to create, produce, and effectively evaluate different 61 advertising and promotional strategies. Prerequisites NONE EXAM BLUEPRINT Recommended Course Length STANDARD PERCENTAGE OF EXAM ONE SEMESTER 1- Market Identification and Creativity 25% National Career Cluster 2- Promotion 23% 3- Different Forms of Media 33% HOSPITALITY AND TOURISM 4- Brand Image and Consumer Psychology 8% MARKETING 5- Careers in Advertising and Promotion 11% Performance Standards INCLUDED (OPTIONAL) Certificate Available YES www.precisionexams.com Advertising and Promotion 412.2021 STANDARD 1 Students will understand the concept of market identification and creativity in the promotional industry. Objective 1 Understand concepts of market and marketing identification. 1. Define the following terms: market, product life cycle, target market, mass marketing, and marketing segmentation (demographic, geographic, psychographic, and behavioral [product benefits] segmentation). 2. Describe advantages and disadvantages of mass marketing and other market segmenting. 3. Explain the importance of target markets to businesses. 4. Explain why the use of marketing segments is increasing. 5. Describe the concept of focus groups. 6. Understand the use of conducting market research. 7. Analyze the product life cycle and explain the role of promotion and advertising during each phase. Objective 2 Understand the concept of creativity. 1. Define the term creativity. -
Make Your Marketing Relevant by Curtis Schroeder, MBA Candidate Imagine the 60-Foot-Long Boat of the U.S
KELLER CENTER RESEARCH REPORT INSIDER: Make Your Voice Heard – Make Your Marketing Relevant By Curtis Schroeder, MBA Candidate Imagine the 60-foot-long boat of the U.S. women’s national rowing team cutting across a crystal-clear lake in a heated 2,000-meter race. As the team synchronously rows their oars back and forth, they look forward and eagerly await direction from the coxswain, the competitor/coach seated in the stern of the boat in front of them. The coxswain calls out commands to influence the behavior of her team: Let it glide! Hold starboard! Power 10! Competing with the coxswain’s messages are the noises the boats and oars make in the water, the voices of the other competitors, and the roars of the crowd cheering their teams on to victory. For the coxswain to be most effective in her role, she knows that her team must establish a strong game plan before the race begins. To win, she must understand the makeup of her team, establish clear and concise signals that her team can recognize and respond to during the race, and communicate those signals quickly and at exactly the right times. Otherwise, the coxswain’s messages will be lost in the competing noise of the race and her team will fail to reach their potential. Sandra Zoratti and Lee Gallagher’s principles of precision marketing in their new book, Precision Marketing: Maximizing Revenue Through Relevance, parallel the roles of the coxswain. To win the race – or to generate the highest potential Return on Investment (ROI) in today’s marketplace – Zoratti and Gallagher argue that marketers must become increasingly relevant. -
Perspectives on Retail and Consumer Goods
Perspectives on retail and consumer goods Number 7, January 2019 Perspectives on retail and Editor McKinsey Practice consumer goods is written Monica Toriello Publications by experts and practitioners in McKinsey & Company’s Contributing Editors Editor in Chief Retail and Consumer Goods Susan Gurewitsch, Christian Lucia Rahilly practices, along with other Johnson, Barr Seitz McKinsey colleagues. Executive Editors Art Direction and Design Michael T. Borruso, To send comments or Leff Communications Allan Gold, Bill Javetski, request copies, email us: Mark Staples Consumer_Perspectives Data Visualization @McKinsey.com Richard Johnson, Copyright © 2019 McKinsey & Jonathon Rivait Company. All rights reserved. Editorial Board Peter Breuer, Tracy Francis, Editorial Production This publication is not Jan Henrich, Greg Kelly, Sajal Elizabeth Brown, Roger intended to be used as Kohli, Jörn Küpper, Clarisse Draper, Gwyn Herbein, the basis for trading in the Magnin, Paul McInerney, Pamela Norton, Katya shares of any company or Tobias Wachinger Petriwsky, Charmaine Rice, for undertaking any other John C. Sanchez, Dana complex or significant Senior Content Directors Sand, Katie Turner, Sneha financial transaction without Greg Kelly, Tobias Wachinger Vats, Pooja Yadav, Belinda Yu consulting appropriate professional advisers. Project and Content Managing Editors Managers Heather Byer, Venetia No part of this publication Verena Dellago, Shruti Lal Simcock may be copied or redistributed in any form Cover Photography without the prior written © Rawpixel/Getty Images consent of McKinsey & Company. Table of contents 2 Foreword by Greg Kelly 4 12 22 26 Winning in an era of A new value-creation Agility@Scale: Capturing ‘Fast action’ in fast food: unprecedented disruption: model for consumer goods growth in the US consumer- McDonald’s CFO on why the A perspective on US retail The industry’s historical goods sector company is growing again In light of the large-scale value-creation model To compete more effectively Kevin Ozan became CFO of forces disrupting the US retail is faltering. -
Marketing Concepts
S T Marketing Concepts U D Marketing Concept E business must satisfy needs and wants of their customer to compete N T Customer V person who buys the product O C Consumer A person who uses the product B U Pricing L A determines prices for products in order to maximize profit R Y Promotion applying promotional techniques to potential customers H A Product/Service Management N D developing, improving and maintaining a product mix O U Financing T obtaining the money necessary for business operations Selling providing consumers with the products and services they desire Marketing Information Management managing market information to maximize business decisions Distribution using channels to get products to consumers Disaggregate reduce the marketing focus to product-market areas where companies are more likely to have a competitive advantage Segmentation aggregating process which clusters people with similar needs into market segments Market Segments similar group of consumers responding to the same marketing mix Baby Boom Generation babies born between 1946-1964; aging population; are of interest to companies promoting products related to aging populations Accompanies: Marketing Concepts 1 S T Marketing Concepts U D Generation X E babies born between 1965-1977; children of dual-careered parental homes N and rising divorce rates; media savvy; big spenders in cosmetics, electronics, T clothing and entertainment; reached through sharp images music and humor V O Generation Y C babies born between 1977-1997; children growing up in computer-dense -
Introducing Marketing This Book Is Licensed Under a Creative Commons Attribution 3.0 License
Introducing Marketing This book is licensed under a Creative Commons Attribution 3.0 License Introducing Marketing John Burnett Copyright © 2011 John Burnett Editor-In-Chief: John Burnett Associate Editor: Marisa Drexel Editorial assistants: Aashka Chaudhari, Rachel Pugliese, Jackie Sharman, LaKwanzaa Walton Proofreaders: Tessa Greenleaf, Desiree White Volunteers: Catherine Land, Bryan Wethington For any questions about this text, please email: [email protected] The Global Text Project is funded by the Jacobs Foundation, Zurich, Switzerland This book is licensed under a Creative Commons Attribution 3.0 License Introducing Marketing 2 A Global Text Table of Contents About the author............................................................................................................................................... 5 Preface............................................................................................................................................................... 6 1. Introducing marketing ............................................................................................................8 Elvis—alive and well ........................................................................................................................................ 8 Marketing: definition and justification ......................................................................................................... 10 Keys to marketing success ............................................................................................................................ -
Module Note—Market Segmentation, Target Market Selection, and Positioning
9-506-019 REV: APRIL 17, 2006 MODULE NOTE Market Segmentation, Target Market Selection, and Positioning As described in the “Note on Marketing Strategy” (HBS No. 598-061), after the marketing analysis phase, the next stage in the marketing process consists of the following three steps: • Market segmentation • Target market selection • Positioning These steps are the prerequisites for designing a successful marketing strategy. They allow the firm to focus its efforts on the right customers and also provide the organizing force for the marketing-mix elements. Product positioning, in particular, provides the synergy among the four Ps (product, price, place, and promotion) of the marketing plan. This note elaborates on each of the three steps. Market Segmentation Market segmentation consists of dividing the market into groups of (potential) customers—called market segments—with distinct characteristics, behaviors, or needs. The aim is to cluster customers in groups that clearly differ from one another but show a great deal of homogeneity within the group. As such, compared with a large, heterogeneous market, those segments can be served more efficiently and effectively with products that match their needs. It is important that the segments are sufficiently different from one another. In addition, it is critical that the segmentation is based on one or more customer characteristics relevant to the firm’s marketing effort. A thorough analysis of the customers is essential in that regard. We can distinguish two (related) types of segmentation: • Segmentation based on benefits sought by customers • Segmentation based on observable characteristics of customers In an ideal scenario, marketers will typically want to segment customers based on the benefits they seek from a particular product. -
5 Market Segmentation, Targeting and Positioning
Market Segmentation, 5 Targeting and Positioning Ng Lai Hong It is impossible to appeal to all customers in the marketplace who are widely dispersed with varied needs. Organisations that want to succeed must identify their customers and develop marketing mixes to satisfy their needs. This chapter considers the steps in the target marketing process, including how to divide markets into meaningful customer segments, evaluating each segment, deciding which segment(s) to target, and design- ing market offerings to be positioned in the minds of the selected target market. The target marketing process The target marketing process provides the basis for the selection of target market – a chosen segment of the market that an organisation wishes to serve. It consists 84 Fundamentalsof the three-step of Marketing process of segmentation, targeting and positioning (Figure 5.1). Marketers utilise this process due to the prevalence of mature markets, greater diversity in customer needs, and its ability to provide focus for an organisation’s marketing strategy and resource allocation among markets and products (Baines and Fill, 2014). Segmentation Positioning Targeting Develop positioning that Identify bases for Evaluate segments will create competitive dividing a market into and decide which to advantage in the minds of smaller segments serve best the chosen market segment Figure 5.1: Steps in target marketing process. Adapted from Solomon et al. (2013). 86 Fundamentals of Marketing The benefits of this process include the following: Understanding customers’ needs. The target marketing process provides a basis for understanding customers’ needs by grouping customers with similar characteristics together and for the selection of target market.