Nobody downloaded yet

Segmentation and Targeting - Research Paper Example

Comments (0) Cite this document
Summary
Segmentation and Targeting In the current competitive environment, every business is aiming at attaining a higher competitive advantage. Segmentation and targeting is important in the achievement of this. One of the advantages of segmentation is that it enhances the levels to which a business matches its products with customer needs…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Segmentation and Targeting
Read TextPreview

Extract of sample
"Segmentation and Targeting"

Download file to see previous pages Starbucks coffee and Jamaica Blue Mountain coffee company are used as the bases of reference. Target markets for Starbucks coffee and Jamaica Blue Mountain coffee Starbucks coffee targets a general local market. Its initial target market was young college students, neighborhoods and social classes that would spend time with friends at their stores and gladly accept the idea of buying a $3 a cup of coffee. The initial focus included small towns, ethnic neighborhoods, highway rest shops, rural communities and even towns saturated with coffee shops. As a result of rapid growth, this target market has expanded quickly to include local buyers of all ages. On the other hand, the Jamaica Blue Mountain focuses on the export market. Its main target market is Japan though it wants to expand to include Canada. How the choice of target market influences the company's promotion and pricing A company has to consider the buying power of its market. Miller (2006) explains that customers have different disposable income and this means they are different in terms of their sensitivity to prices. Market segmentation is therefore important in determining if a company can raise its prices or not. If the company has to raise its prices, the type of target market will determine the level to which the company will raise its average prices. If the target market is very sensitive to prices, then a company could consider dropping its prices slightly so as to gain an extra market share. If it is insensitive to prices, then a slight increase for purposes of increasing profits margins will benefit since the increase will be indiscernible. According to Aaker et al (2000), the type of target market also determines promotion methods used. A company has to choose the promotion methods that will enable it to reach its target market quickly and adequately. Alternative methods include the TV, radio, billboards, direct marketing mail shot or the Internet. At the same time, the company has to consider how competitors do their promotions. They should then evaluate the efficiency of these methods and compare with those they use or intend to use. The type of target market also determines the frequency of these promotions. For example, markets that are highly competitive require frequent promotions in order to retain customer loyalty. Effects of introducing a new target market on consumer perceptions A company can introduce a new target market in a market that is already captured by its competitor. For example, Starbucks coffee can start producing brands for export to Japan, a market segment that is already captured by Jamaica Blue Mountain coffee. According to Kotler (2003) the perception here will be that the company has performed well in terms of pricing and its expansion is a sign that it is now focusing on the quality of its products and expansion of its image. As a result of this, customers will tend to associate more with the company products so as to enjoy the anticipated high quality products and form part of this international or wide region market. The influenced of economic changes on purchase trends of customers The customers will not be influenced by changes in the economy because they will have already formed a perception that the company is already working on the quality of its products. This means that at fair prices, they will be enjoying more quality products and variety as well. This situation is reinforced by the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Segmentation and Targeting Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/marketing/1428382-segmentation-and-targeting
(Segmentation and Targeting Research Paper Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/marketing/1428382-segmentation-and-targeting.
“Segmentation and Targeting Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/marketing/1428382-segmentation-and-targeting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Segmentation and Targeting
...? Assignment Byline Segmentation and Marketing There are few American companies that have had as much impact on society and business as the king of fast food joints, McDonalds. According to the company’s official website, McDonalds has over 32,000 restaurants in 117 countries and serves over 64 million people every single day (“Our Company”, 2011). Perhaps one of the biggest reasons that McDonalds has proven to be so successful is due to the fact that this particular company has mastered the art of marketing to its consumers. In order to better understand McDonald’s marketing strategy, it is important to define several elements of marketing itself. According to the book entitled “Principles of Marketing,” the primary...
4 Pages(1000 words)Research Paper
Segmentation and Targeting
... Describe each company's target market. Do NOT include definitions of target market or segmentation. The target market for Timex watches is much wider than for Rolex watches. The Timex is a product that targets people of all ages that have low to middle income. Timex has watches for both female and male users. The Rolex watch targets a different target market. The target market for Rolex products are people that have income above $100,000 a year. This target market is based on the introductory level Rolex products. A Rolex customer is a person that is accustomed to buying luxury items. A lot of Rolex watches have target market of people that are millionaires (Rolexforums, 2011). (2) How does the choice of target market influence... involves...
4 Pages(1000 words)Term Paper
Segmentation and Targeting
...? Segmentation and targeting al affiliation Segmentation and targeting Introduction Marketing comprises of three phases that determine the customers’ reaction towards a product introduced in a new or mature market. In the undifferentiated strategy, every buyer is treated in the same manner making organizations less concentrated on making precise efforts to satisfy particular market groups. Segmentation and positioning prove significant when the product is standard and one rival product is not able to offer what another cannot. Targeting requires analysis on the income distribution of potential and mature markets to realize whether to introduce a new target market or not. Specific marketing cases Ford Escort is a car brand... , And Chansarkar,...
4 Pages(1000 words)Essay
Segmentation and Targeting
...? Segmentation and Targeting Segmentation and Targeting Starbuck Company Introduction The Starbuck Company was established in 1971. The founders Gordon Bowker, Jerry Baldin, and Zev Siegle had a vision of enlightening customers about fine coffee. The company began to expand in 1987, when Howard Schultz became in charge (Stanley, 2002). Schultz strategy was to create a personal association between customers and coffee. A few years later, the company expanded enormously until it became the undisputed leader in the production of fine coffee. Starbuck has experienced tremendous growth since it was founded. Identify the company’s target market and positioning...
3 Pages(750 words)Essay
Marketing Segmentation and Targeting
...Marketing Segmentation and Targeting A market, in contemporary terms, is defined as place where both buyers and sellers come to meet with the objective of exchanging of goods or even services. In this text, the general definition of a market is group of both people as well as businesses with a clear interest, purchasing ability and willing to spend some money to get the goods or services to satisfy their specific needs. Market segmentation is the grouping of customers who may be individual or corporate into a pool of customers with similar demands (goods and services) in terms of prices and designs. It can also be termed as a marketing strategy where a large market is divided into...
6 Pages(1500 words)Essay
Segmentation, Targeting, Positioning
...? UNDERSTANDING THE CONCEPTS AND PROCESS OF MARKETING AND EXPLORING THE CONCEPTS OF SEGMENTATION, TARGETING AND POSITIONING ’s name: Course code: Instructor’s name: Date of Submission: Introduction Cornflower Blue is a company that specializes in the production and distribution of products such as body care products that are herbal oriented, herbal remedies, aromatherapy products and culinary products that constitutes of honey, tea and chutney. The company needs to apply various marketing strategies in order to remain competitive in the market. In any business, marketing is a significant component in the contribution of an organization success. Distribution and production of a company’s product depends...
6 Pages(1500 words)Assignment
Segmentation, targeting and positioning
...? Segmentation, Targeting and Positioning UK Footwear Market Background Since the falling recession of 2008, UK has been facing challenges in both retail and apparel market. Footwear is on the major side of influence where market received short coming of brands and lack of customer response in the 2008 fiscal (Key Note 2012). At the time of recession some companies got recovered including Retailer Faith which administrated its place in the period 2010 April. At the same time some brands like “Stylo PLC” were badly affected as were posed to deepest threats of the recession 2008. Changes in fashion and consumer behavior have also been influential (Key Note 2012). Such factors have influenced market trends...
7 Pages(1750 words)Essay
Segmentation targeting positioning (STP)
...Segmentation Targeting Positioning Task Introduction Segmentation is an approach whereby s’ needs are prioritized and deemed essential. It is a countermeasure of strong competition from other companies and the ever-varying trends of demand in the market. Market Segmentation is the initiative of dividing a product or services into various categories to survive in the competitive market and meet the needs of every purchaser. Proper segmentation is realized where customers with a common need are placed together and the demand strategy should differ from the needs of the other customers, (Capon, 2009). Targeting Market A company should...
1 Pages(250 words)Essay
Segmentation targeting positioning (stp)
...Segmentation Targeting Positioning Before going to discuss an article regarding importance of segmentation, targeting, and positioning to service, let us get a better understanding of what these concepts actually are. Market segmentation is a process in which marketers divide the total product or service market into sub-markets, which are reached by the marketers using distinctive marketing mix. Tatum (n.d.) states, “Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs”. Targeting is another concept, which is related to identification of the market segments that are likely to purchase or use the product or service of a company. If we talk about positioning... , it is the...
1 Pages(250 words)Essay
Segmentation and targeting
...Segmentation and Targeting in Harry and David’s Today’s markets are characterized by differences in consumer tastes,needs and purchasing power. This makes it impossible to appeal to all consumers in the entire market. Marketers succeed by dividing the total market into small homogeneous consumer segments. Segmentation involves identification of the factors that influence the purchasing decisions in a particular consumer group after which the consumers are grouped on the basis of the identified factors. Consequently, the marketing strategies are adjusted to cater for the needs of each consumer segment. The major consumer characteristics influencing market segmentation include geographic, psychographic, behavioral and demographic... ...
1 Pages(250 words)Personal Statement
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Research Paper on topic Segmentation and Targeting for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us