Below market segments, chooses one or more
Belowis a report on the the importance of market segmentation, targetingand positioning for a branded product that is Aclose Shaveaimed at the consumer. MarketSegmentation,Targeting and positioningare tools to align with the right product for they play an importantrole to get to the right customer.
They allow the marketer to delivera product within the target audience needs and wants (Pickton andBroderick, 2005: 373). It is a necessity to establish the needs andvalues of the target customers within each segment, in order forcompanies to promote their products, brands or servicesappropriately. Inthis context :Segmentation:Dividing the market or customers into groups basing on similarcharacteristics. Example: demographically, behavior, geographicallyetc. Kotler and Armstrong define market segmentation as “dividing amarket into distinct groups of buyers who have distinct needs,characteristics, or behaviour and who might require separate productsor marketing mixes” (Armstrong and Kotler, 2005: 54).
Targeting:After segmenting, its is not likely to reach to reach every customerin the market therefore a target audience is selected. The marketerdistinguishes among a variety of market segments, chooses one or moreof the segments and then develops products and marketing mixescustomised to each segment (Gunter and Furnham, 1992: 2). Positioning:Basically it means building a brand image in the mind of thecustomer. Where does your product stand in the minds of the customerand the marketplace.Whyare MarketSegmentation,Targeting and Positioningimportant?Segmentationsplits buyers into groups with similar needs and wants to bestutilize a firm’s finite resources throughbuyer based marketing.Example by Market Segmenting according to age; A Close Shave cangroup three age groups (Group A: Age 18-25, Group B: 26-33, Group C:34-41) these three group will have completely different lifestylesand behavioral patterns, Group A may find the product desirablebecause its a young group with less or no economical obligations,Group B maybe an insecure group where most men if single want toappear manly so may not care for putting face cream on and Group Chave economical obligations but may need the product since it doesnot require a shave it saves time. Different age groups havedifferent opinions on the product basing on their buying pattern andbehavior. Attractthe rightcustomer.
By seeing the customers’ attitudes toward a brand or product thecompany will get a comprehensive view of the market. The rightcustomer knows what he/ she needs specifically and will have theright attitude toward Aclose shave. Itwould increase customer delight because B&G Shoprite willconcentrate on a specific target audience.Reducerisk indeciding where, when, how, and to whom a product will be marketed.The decision of production are risky because with one wrong decisionthe product will flop in the market. It is crucial to segment, targetand position the market so as to achieve the best result in themarketplace.Increasemarketing efficiency bydirecting effort specifically toward the designated segment in amanner consistent with that segment’s characteristics.
When allefforts are directed to the right customers, it is easier to improveon all production functions so as to ensure customer satisfaction. Itwould also reduce the cost of the company by not marketing AClose Shavewhere it is not required.Recommendation:Inorder to save A close Shave it is important to align the product withthe right customers and Market Segmentation, Targeting andPositioning are the correct tools to be used to rescue it. Theproduct will not only be a success in the market place but it woulddraw the right target audience and efficiently use the BShoprite resources. Question2. BShoprite may consider segmenting the market for AClose Shave asshown below:Demographicssegmentation;with this a market is acknowledged basing on shared demographic ordisposition qualities.
With this A close Shave can specifically beintroduced to specific demographic parameters such as age, maritalstatus, income, occupation and education. Different parameters behavedifferently.Age:Theconsumer’s needs and wants change with age. Therefore approximatelycompanies use phase and life-cycle segmentation, where age and thelife-cycle determine the marketing approach. Furthermore the age andlife-cycle segmentation are associated with behaviouralcharacteristics and buying patterns.
MaritalStatus: single people have a tendency of purchasing new items due tothe fact that they have no other economic obligations. This isopposed to married people, who have a large economic obligation andthereby they prioritize their economy differently.Incomesegmentation divides the market into different income groups.
It isused in automobiles, clothing, cosmetics, financial services andtravel. Many companies within the mentioned categories seek to targetthe high-income customers. Others seek to target the customers with alower income in order to gain consumer loyalty and lessen thecompetitive pressures.
Conversely, companies must consider the factthat the income does not continuously predict the most suitablecustomers for a given product due to the fact that some customers mayhave other preferences and prioritize their money different (Kotlerand Keller, 2009: 258). Lifestylesplus psychographics segmentationis classification that places highlighting on the collectiveactivities, interests and behaviors of particular customers. Alongwith activities, existence segmentation is driven by physiognomiessuch as shared interests, opinions, attitudes and values ofcustomers. A fishing desirability and tackle shop would likely streakcustomers founded on their similar interests and audacities towardfishing, for instance. This approach makes more intelligence givenwidespread demographic personalities among fishing and outdoorenthusiasts.Geographic’ssegmentation: Oneof the humblest and most common segmentation policies for smallbusinesses is based on geography. If you have a broad customer basegathered in a local, regional, national or international location, itmakes sense to invest in geographic marketing.
Size, populationcompactness and climate factors are traits of geographicsegmentation, along with region or location. Targeting a rural marketof 10,000 customers is much different than targeting an urban marketof 100,000 customers, for instance.Behavioristicsegmentation:With a behavioristic segmentation strategy, you target customersbased on their interest or understanding with your company orproducts. With this strategy, your market segments have sharedknowledge with your products. Benefits sought, usage, loyalty,prospect or customer status are communal characteristics. One of thepaybacks of this segmentation is it targets a broad market lookingfor different benefits, such as economy, performance, luxury orstatus. Targeting new prospects is also distinct from targetingbrand-loyal customers.
Question3Possibleparameters to A Close Shave be positionedMarket PositioningWhatis market position? In marketing strategy, market position refers tothe consumer’s perception of a brand or product in relation tocompeting brands or products. Market positioning refers to theprocess of establishing the image or identity of a brand or productso that consumers perceive it in a certain way.Forexample, A close shave may position itself as a fresh status symbol. Positioningof a close shave:Thepositioning of a brand or product is a strategic process thatinvolves marketing the brand or product in a certain way to createand launch an image or identity inside the concentrations of thecustomers in the target market. Market arranging of a brand orproduct must be maintained over the life of the brand or product.Doing this requires continuing marketing initiatives intended toreinforce the target market’s perceptions of the product or brand.
Relocationa brand or product means altering its place in the minds of theconsumer, or essentially shifting the brand’s or product’s imageor identity. When you are repositioning, or trying to change theconsumers’ perception of a brand or product after it has previouslybeen solidified, may complicate or alienate clienteles in the targetmarket. This is important for A Close Shave to give it a new look inthe market since the first strategy flopped.Broadcategories of market position: cost management and differentiation.
Cost management and differentiation market positioning strategies areapplicable to any business and any industry. A business can choose toposition itself using a cost leader strategy or a differentiationbusiness strategy.CostLead Strategy: B&GShoprite using a cost frontrunner strategy attempts to positionitself in the minds of the consumers as a company that providesproducts the consumers want at a price that is lower than competingproducts available in the marketplace. Consumers expect basicproducts with no bells and whistles from a company using a costleader strategy. Instead, consumers just suppose the products toencounter their needs and nobody more or less.Differentiation Business Strategy:B&GShopriteusing a differentiation business strategy attempts to position itselfin the minds of the consumers as a company that provides uniqueproducts that consumers will recompense more for because they cannotfind comparable products or product features everyplace else in themarketplace. Consumers expect more from a differentiated product andtherefore are enthusiastic to pay a premium for a differentiatedproduct.
This is true as long as the unique features of the productadd some value to the product that makes it more valuable to theconsumer, whether a functional feature or an aspect of image orprestige that enhances the perception of the product.