For example, for the products targeted at young hillier, it is the parents who have influence over purchasing decisions. Market segmentation A market segment consists of a large identifiable group within a market, with similar needs, purchasing power, buying attitudes, buying habits and geographical location. Segment marketing allows Academy to create a better product, priced appropriately for a target audience. It helps them to identify their most and least profitable customers, allowing them to focus their marketing on the customer who will be most likely to buy their products.
GOD Straightness- Information sheet 2 Customers and Consumers- including BIB Within God’s consumer markets they provide for both customers and consumers, with the majority of sales generated from business to business sales. For example, a customer may buy a pair of Sad’s for themselves witch would make them the customer and consumer. A mother may also buy them as a birthday present for their daughter, which would make the mother the customer and the daughter the end consumer.
GOD have a wide female market and continue to be the market leader for professional styling irons, complementary wet products and other hair styling accessories sold through over 50,000 professional hair salons globally. For GOD to continue being the market leader for styling irons, they must define what factors affect their customers and consumers in terms of how much they are willing to pay for the product, which distribution method best suits the customers and BIB customers and which communication is best suited for their current and potential customers.
Influence over purchasing decisions There are many factors that can affect the decision making process as a person works through the purchase decision. The number of potential influences on consumer behavior is limitless. However, marketers are well served to understand the KEY influences. By doing so they may be in a position to tailor their marketing efforts to take advantage of these influences in a way that will satisfy the consumer and the marketer.
GOD have to consider many factors that affect a potential customers purchasing decision, as they are aware that consumerism is more now than ever influenced by people’s ethics as well as their feelings for self-worth. Also, consumers are choosing products out of safety and health concerns. In addition, God’s consumer markets want to know where the products originate from, how and where they were produced the environmental considerations taken. All of these criteria are growing in importance to consumers purchasing decisions.
Market segmentation Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs. The celebrity endorsements created a mass influx in sales and expansion of publicity. This rise in sales can be seen as a direct response to the Camellia Group Limited using influential celebrities to stimulate observational learning with the consumer.
The approach worked because the celebrities who endorse GOD are seen as role models possessing attributes such as: physical attractiveness, there success and credibility, self- confidence, and the consumer can relate the celebrities because the celebrities fit into the target market segments. Market segmentation allows GOD to me aware of their most profitable markets and to avoid their least. It also helps them to build loyal relationships with customers by developing and offering them the products and services they want. Coca cola – Information sheet 3 Customers and consumers- Including BIB
All successful businesses today are based on focusing on the consumer. If a company meets the requirements of its consumers and indeed exceeds these requirements, then they have recipe for success. Coca-Cola has set out to become the world’s number one consumer marketing company by taking clear actions to differentiate their products. The direct BIB customers of Coca- Cola are outlets such as service stations, newsagents, leisure centers, cinemas, clubs, supermarkets and many other retailers selling soft drinks. In this area the emphasis in marketing has therefore been on providing superior delivery, rumination services and sales support.
All of these elements clearly differentiate Coca-Cola as being the beverage supplier most likely to generate profits for retailers. The end consumers of Coke are the millions of people who consume soft drinks world-wide. Over many years Coca-Cola has expanded its markets horizontally in country after country, until there is virtually no place on earth where people do not drink Coca-Cola. Today this horizontal growth is almost total, with fewer than 20 countries not taking the product. Coca-Cola is therefore now trying to develop the brands vertically. Influence over purchasing decisions
Behind the visible act of making a purchase lies a decision process that must be investigated. The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. Coca-Cola has undertaken extensive research on consumer buying decision, to answer questions like: what does consumer buy where they buy how they buy how much they buy when they buy why do they buy a product For this question to reorganize the decision different stages needed they are, information search, and evaluation of alternatives, purchase decision and post purchase decision etc.
Every purchasing decision involves a certain process that occurs in the minds of customers. The first stage in this process is need recognition. In this step, a customer recognizes a need or a problem. For this we will take the example of coke. For example, a consumer feels thirsty and he/she is looking for some soft drink. The marketing team of coca-cola is very efficient in recognizing the needs of the consumers. So, in their marketing activities, this team tries to presents the solutions of the desired problem by giving different kinds of advertisements.
Coca-Cola use consumer behavior knowledge to roved the best value for their potential and current customers. They analyze the actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions. The behavioral sciences help answer questions such as: Why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers. Market There are many ways in which a market can be segmented.
A marketer will need to decide which strategy is best for a given product or service. Sometimes the est. option arises from using different strategies in conjunction. Approaches to segmentation result from answers to the following questions: where, who, why and how? As the market tightened and consumer values changed, Coke responded by developing more unique products for various specific market segments. Because those unique products appeal to specific groups, Coke increased its sales without affecting the sales of its other products.
The company launched caffeine-free Coke and Diet Coke to appeal to cola drinkers who wanted to cut back their caffeine intake. By introducing decaffeinated versions of its rotational sodas, Coca-Cola could increase the number of sodas it sells each day without hurting sales, because the consumers targeted by these products already had been avoiding or minimizing Coca-Cola consumption to reduce their caffeine intake. By using gender to segment the diet cola market, Coca- Cola was able to customize the advertising for Coca-Cola Zero to appeal to men, whereas Diet Coke ads could concentrate on women.
In turn, Coke gained closer connections for its different products with each product’s targeted market segment, and Coke Zero became one of the most successful launches in the company’s long history. Market segmentation allows Coca-Cola to identify new products, get ahead of the competition in specific parts of the market and use your resources wisely McDonald’s – Information sheet 4 There are a limited number of customers in the market. To build long-term business it is essential to retain people once they have become customers. Customers are not all the same.
Market research identifies different types of customers. These examples represent just a few of McDonald’s possible customer profiles. Each has different reasons for coming to McDonald’s. Parents would visit McDonald’s to treat their children, as it is a fun place to eat. Business customers would visit McDonald’s as it provides quick, quality service, with great tasting food that doesn’t interrupt a busy work schedule. Teenagers are also one of McDonald’s main customer types. They visit McDonald’s for their ‘saver menu’ and free Wi-If within the restaurant.
Drivers are able to use the drive through, for quick service. Using this type of information McDonald’s can tailor communication to the needs of specific groups. It is their needs that determine the type of products and services offered, prices charged, promotions created and where restaurants are located. To retain relationships with current customers, McDonald’s have to consider what the consumers want. Quality of employees and how well trained they are to offer the best service to customers Systems and how well they function in providing customer satisfaction e. G. Racketing databases and restaurant systems Appropriately priced products Geographical location of restaurants Consumers make a series of choices prior to making a purchase. Consumers are seeking more food variety and healthier eating – McDonald’s provides a more balanced offering that includes fruit, sugar-free fruit drinks for children ND more chicken products. Price is becoming more critical to decision-making. McDonald’s has created an Extra Value Meal and a Michele menu offering a flexible combination of drinks, sandwiches etc in addition to the meal, thereby providing excellent value for money.
Some consumers are characterized as being more involved in products and shopping than others. A consumer who is highly involved with a product would be interested in knowing a lot about it before purchasing. Hence he reads brochures thoroughly, compares brands and models available at different outlets, asks questions, and looks for recommendations. Thus consumer involvement can be defined as heightened state of awareness that motivates consumers to seek out, attend to, and think about product information prior to purchase.
Market segmentation Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, priorities and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow reaching them. The most important marketing decision a firm makes is the selection of one or more segments to focus their marketing effort. Marketers do not create segments but they find it in the market place.
Market segmentation is the study of market place in order to discover viable group of consumers who are homogeneous in their approach in selecting and using goods or services. Since market segment has unique needs, a firm that develops a product focusing solely on the needs of that segment will be able to meet the target group desire and provides more customer value than competitor. Market segmentation allows McDonald’s to improve products to meet the customers’ needs and increase profit potential by peeping costs down, and in some areas, charging a higher price for products and services to customer that are willing to pay.
Apple Phone- Information sheet 5 Customers and consumer- Including BIB In order to understand target customers, certain questions must be answered: Who constitutes the market segment? What do they buy and why? And how, when, and where do they buy? Knowing who constitutes the market segment is not simply a matter of knowing who uses a product. Often, individuals other than the user may participate in or influence a purchasing decision. Apple target customer with many characteristics: The middle/upper income population who are willing to pay more for a better user experience The members of society that enjoy technology.
No other platform offers as many entry level tools; for example, gamers and photographers. Music enthusiasts fans aged 12-35 Professionals in media and design Once Apple have identified their target consumer market, they can categories the most appropriate communication methods to reach the needs of the specific segments. The direct BIB customers of Apple are outlets such as major superstores, high end shopping centers, service providers (02, T-Mobile, Orange CT), and many other retailers selling electronics.
In this area the emphasis in marketing has therefore been on providing superior delivery, promotional services and sales support. All of these elements clearly differentiate Apple as being the best electronics supplier most likely to generate profits for retailers. Consumer behavior is influenced by many things, including environmental and marketing factors, the situation, personal and psychological factors, family, and culture. Apple try to figure out trends so they can reach the people most likely to buy their products in the most cost-effective way possible.
They often try to influence a consumer’s behavior with things they can control such as the layout of a store, music, grouping and availability of products, pricing, and advertising. While some influences may be temporary and others are long lasting, different factors can affect how buyers behave, whether they influence a customer to make a purchase, buy additional products, or buy nothing at all. Market Apple conducts all sorts of research to determine and identify their specific target market to assist then in their marketing strategies to promote their wide range of products.
To help them in this process, they need to analyses ND break down the different markets into segmentation categories. The four main bases, in which Apple segment a consumer market, are known as geographic, demographic and behavioral segmentations. For years, Apple has differentiated price points based on something quite basic- the amount of storage available on the phone. These are high margin upgrades for Apple but at some point the market seems to demand a different approach.
This time, Apple has really segmented the market: features like fingerprint or no fingerprint, two camera levels, and two kinds of physical case at different price points. Market segmentation allows Apple to group their customers by factors such as geographical location, size and type of organization, type and lifestyle of consumers, attitudes and behavior Nintendo WI- Information sheet 6 Nintendo believe customers are the most important people for any organization. They are the resource upon which the success of the business depends.
When thinking about the importance of customers to remember the following points: 1 . Repeat business is the backbone of selling. It helps to provide revenue and certainty for the business. 2. Organizations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they could lose their customers. 3. Without customers the organization would not exist. 4. The purpose of the organization is to fulfill the needs of the customers. 5. The customer makes it possible to achieve business aims Nintendo believed in a consumer market that distanced itself from gaming.
It had a belief that existing games were difficult to play and understand and very complex in terms of operations. Their games emphasized fantasy with the major target being males (18+). They wanted to create a new consumer segment by encouraging non-gamers to enter into this sport. Concentration in the market was real life and simplicity game scenarios. WI was designed and marketed as a devise for family entertainments that involved all gender and age groups. This included even those who like watching others as they play.
It’s not only young family members who were encouraged to buy gaming devise but also the younger generation. The direct BIB customers of Nintendo are outlets such as shopping centers and supermarkets, online electronic stores and many other retailers selling soft drinks. In this area the emphasis in marketing has therefore en on providing superior delivery, promotional services and sales support. Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.
Nintendo shows that the first stage in the consumer decision-making process is need recognition, which occurs when the consumer perceives a need and becomes motivated to enter a decision-making process to resolve the felt need. Nintendo know they are required to know the specific needs consumers are attempting to satisfy and owe they translate into purchase criteria. This information allows markets to accurately portray the need in promotional messages or place messages in an appropriate location. And services which meet customer needs. With the WI, Nintendo hoped to attract non-gamer customer segments to the market.
Nintendo targeted women, families and all those not typically associated with “serious” gaming. In the words of Nineteen’s president, the WI market is ‘teeming with women, pensioners and repentant couch potatoes. ” By changing their value proposition, which before might have been “delivering intensely realistic gaming experiences for he hardcore gamer,” to focus on delivering fun, interactive entertainment for the whole family, Nintendo revolutionized the gaming market and won a valuable new customer segment while earning superior profit margins.
When segmenting a market, Nintendo consider Customer value isn’t necessarily tied to the product attributes on which your industry competes. In the case of Nintendo, the company was able to unlock additional customer value by reducing its emphasis on hardware performance. Targeting non-customers with the right offering can open up new markets. Creating substantial customer value doesn’t eave to come at a high cost. You can have very happy customers and healthy margins. Customer value can derive from emotional responses to your product or service, just as much as from price/quality combinations.
Nintendo smartly chose to focus on the “fun factor,” rather than competing in the race for higher performance. Task 2- The marketing mix The marketing mix is the combination of activities under a company’s control that can be manipulated to achieve marketing objectives. Marketing is the ability of an organization to provide the right product, at the right price, through the eight outlets and presented in the right way. This is also known as the ops. All the elements of the marketing mix influence each other. They make up the business plan for a company and if handled right, can give it great success.
But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others. Price The price refers to the amount a customer pays for a product or service. The price is very important as it determines the company’s profit and hence, survival. Adjusting the price has an intense impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well.
The marketer should set a price that complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The ‘reference value’ and the ‘differential value’ must be taken into account. Place Often you will hear marketers saying that marketing is about putting the right reduce, at the right price, at the right place, at the right time.
It’s critical then, to evaluate what the ideal locations are to convert potential clients into actual clients. Today, even in situations where the actual transaction doesn’t happen on the web, the initial place potential clients are engaged and converted is online. Channels of distributions are also included in the analysis of place within the ‘4- P” business marketing mix. The channels of distribution describe how products are delivered to target customers. Manufacturers can either use intermediaries o market and deliver products or independently manage the steps in the distribution process.
Distribution channel examples include use of a direct sales force, wholesale relationships, distributor relationships or retailers Product A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move.
The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line’s depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company’s resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies Promotion All of the methods of communication that a marketer may use to provide information to different parties about the product.
Promotion comprises elements such as: advertising, public relations, sales organization and sales promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers r people specifically engaged to create word of mouth momentum.