Consumer Benefit, Market Segment, and Market Size of a Theatre - Case Study Example

?Running head: CONSUMER BENEFIT, MARKET SEGMENT, AND MARKET SIZE OF A THEATRE Consumer Benefit, Market Segment, and Market Size of a Theatre Insert Name Insert Grade Course Insert Tutor’s Name 06 September 2011 Consumer Benefit, Market Segment, and Market Size of a Theatre Consumer benefit is the value offered to the consumers by the products and services being sold to them by Hopgood theatre. This consumer benefits may be psychological or functional. Marketing segment are the different groups with which the Hopgood theatre market is divided according to the common and differential characteristics of the market. Market size is the number of consumers and retailers of Hopgood theatre products and services in a specific market. Consumer Benefit Consumers of a particular product seek to identify products that would benefit them and satisfy their needs through knowledge of product attributes, which include brand image, brand perceptions, brand personalities, and brand characteristics (Whaling and Michigan State University, 2007). Consumers are constantly seeking products that would satisfy their unlimited needs with the maximum outcome benefit they can get from the product. The outcomes however vary from satisfaction of needs to getting solutions to particular problems and reduction if not elimination of frustrations. The attributes of a product are meaningless to a consumer if the outcome benefit they are seeking cannot be achieved from purchase of the product. The outcome benefit that the consumers are seeking to benefit from usually carries the rational and emotional component. The purchaser may at times not be the end user of the product but still goes ahead to seek a product that will help him or her achieve price and solution benefit. Hopgood have regular customers such as the local council and other companies who hire rooms for meetings and training of their staff. The company representatives responsible for hiring focus on the outcome benefit to their end users rather than just hiring a room. Market segmentation is basically based on the product benefit, and customer characteristics relation. Customers with specific needs and characteristics seek to benefit from specific products that match their situations (Evans, O'Malley, Maurice, and Patterson, 2004, pg 179). The functional benefits that consumers of Hopgood theatre achieve from their products are measured in terms of time and place with which the product is available, the duration that the services last and the prices with which the products are purchased. The shows being offered by Hopgood may be repeated in other theatres in other countries and the prices are normally the same although Hopgood may charge slightly higher in venues located in the cities as compared to regional venues. Purchasers of goods achieve higher degree benefit with lower prices as compared to products with slightly higher prices although the venue of the shows levels up the price factor. Shows of its own kind are desired by many consumers of Hopgood considering the fact that the shows may not be repeated elsewhere. A variety of shows offered are highly appreciated by Hopgood product purchasers who have the opportunity of choosing from a list all current shows with prices charged for each show that is available on their website. Psychological benefit is also an important outcome that customers of Hopgood seek for when purchasing a product. This benefit enables the purchaser to achieve a pleasant feeling of acquired value for money and self worth. Customers seek to purchase goods that will enable them achieve the highest level of psychological satisfaction to build their own self-esteem and boost value for the products. The outcome is the benefit of the products they use and consume to satisfy their needs. Market Segment Market segment focuses on particular customer characteristics that differentiate one group of customers from another group. Customer profile is the determining factor that differentiates market segments of Hopgood theatre. Each market segment is homogeneous, profitable, and consistent in the returns it brings to the company. Market segmentations also focus on the possibility of achieving the desired results in the execution of product customer relation. Once Hopgood theatre has identified its market segments and made up decision on the target, the company needs to undertake product position to capture the customer’s attention. The positions offered by the competing companies must be clearly reflected and a distinctive, while desirable place in the target customer’s minds is created for the product (Dibb and Simkin, 1996, pg 17) Hopgood has its largest and reliable market segment comprising the local dwellers. The geographic location of the theatre cannot be easily located by new customers who are not familiar with the city. The Hopgood theatre cannot be easily located and has no eye-catching sign to attract potential customers who are passing by and have information of its existence. The regular customers mostly comprise of the local dwellers that live a few kilometers from the city suburbs. Consumer characteristics are used as a basis of market segmentation due to the increasingly diverse customer needs. Mass marketing can no longer satisfy the highly differentiated needs of the customers and more so, market segmentation is economical to the business. Hopgood Theatre uses local newspaper and e-advertising (that is more advantageous for market segment advertising unlike TV advertising used by most companies for mass marketing). TV advertising does not focus on different market segments as it is generally viewed by all the people; however, adverts placed after specific programs may capture the attention of a group of consumers with similar interests (Rama Mohana Rao, 172). Market segments are differentiated by customer traits such as geographic, behaviouralistic, demographic and psychographic traits that Hopgood theatre needs to focus on. Geographic traits include region, size of the metropolitan, climate and population density. Demographic segmentation may include the population’s age groups, gender, social class, religion, occupation, education, nationality, generation, income, and ethnicity. Psychographic segmentation should be based on activities, attitudes, personal interests, values, and opinions. Hopgood theatre also need to consider behaviouralistic variables such as usage rate, brand loyalty, readiness to buy, benefits sought, occasions that stimulate or discourage purchases and status of the user. The market size of Hopgood theatre in the specific market segment mainly consists of regular customers and the local dwellers. Regular customers who book rooms to be used for holding meetings and training facilities are reliable clients for the company. It is reported by the manager that the number of clients is estimated to be approximately thirty thousand, four hundred and eighty four customers. Income sales for Hopgood Theatre are estimated to be two hundred thousand dollars. Reference List Dibb, S. and Simkin, L., 1996. The Market Segmentation workbook, target marketing for marketing managers. OH: Cengage Learning EMEA. Evans, M., O'Malley L., and Patterson M.A., 2004. Exploring direct and relational marketing. OH: Cengage Learning EMEA. Rao, R.M., 2005. Service marketing. New Delhi: Pearson Education India. Whaling, A. U. and Michigan State University. 2007. The effect of packaging attributes on consumer perception of cherry juice. Ann Arbor, MI: Proquest Information and Learning Company. Read More