Target Market

Do you agree with Virgin’s market diversification strategy? If so, what other markets should they pursue? If you disagree, what should be their business focus? Diversification is most commonly understood through the financial world, where one should have a diverse range of investments. Mixing funds that are countercyclical – the performance of certain funds is not correlated to the performance of others.

Usually when one set of funds are down, the value of another set of funds is up. This is where companies like the Virgin Group have adopted this kind of strategy to diversify their product line. Dixon (2009) explains what when building a customer base, it is a good idea to begin cultivating multiple customers in different industries. Then, this approach is modified to include target markets that have the countercyclical method that has been proven to work in the financial field.

After targeting diverse groups of customers, companies (like the Virgin Group) should then engage in “aggressive marketing and sales efforts to win new customers in the targeted markets” (Dixon, 2009). In order for Virgin to pursue other markets they should 1) gain clear understanding of the wants and needs of perspective customers ND markets, and 2) show that they have a unique capability for meeting these requirements (Dixon, 2009). I believe the Virgin Group should get involved with renewable energy projects, even on small scale targeting consumers.

Sustainability and being green are hot topics right now that consumers like to get behind. Since they have so much information already on current electronics customers, they can use this to target items like solar chargers or recycled material packaging for electronic items. 2. How about some other examples of companies that have built their value proposition around the image variable? Other companies that have been successful are for example Apple, who undoubtedly has created value to its customers who are very loyal to the brand.

Customers recognize the “bitten apple” image across the spectrum and identify it with quality. BMW and Mercedes Benz are other companies that have used their image to build value for customers. Whenever anyone thinks of these two brands, they immediately think luxury and high end/high quality vehicles.

Idea objectives For short term (3 to 6 months): 1. Raise an awareness of suppliers and demander: Achieve the number of visitors up to 50,000 views which include both potential suppliers and demander. Lots of student don’t know about the concept of ‘mall department’, they often hire a small house/ floor and stay with other people to share the cost.

In 6 months, we target on 60% student of some of university and college near Nagy©n trip street (Hanoi university, institute of traditional medicine, so on) will know our website then achieve the number of visitors up to 50,000 views . When website become more popular, it will attract student and other worker not only in Than Guan district, but also other places in Ha Noel. On the other hand , we also try to get 10,000 view of potential suppliers who will post or use our website to Introduce “mall department” to customers. . Increase the amount of information (about 15 posts/months) from suppliers. When the number of page view Increase dramatically , people feel trust in our website , they will contact with us to find a Department . Especially when student attend to heir university or collages , the demand Is really high _ A large number of student live in rural areas , they find too difficult to hire a department with the reasonable price but clean and safety .

When they visit our web , if they see that all mini department can deal with these problem , they will want to hire it . When we have a large demand , we need more and more potential suppliers . In 6 months, we try to get 1 post per months from supplier For long-term (more than 5 years): 1. Capture the profit and balance the cost: Our strategy is design to achieve revenue growth of 15% per year for the next five years. It is essential at the time of attracting additional capital for undertaking expansion and modernization measures for our website. 2.

Gain customer’s loyalty: Increasing customer loyalty yields big profits over the long haul and creates raving fans that promote our website for free and it is cheaper than finding new customers. Based on that, we design strategies to increase the amount of customers revisit to our website up to 60% (based on counting IP address). 3. Create an online library for people to search apartment for rent In Ha Not by gain to find suitable person who want to live in one department to decrease the cost. E-marketing strategy for idea: We are in the estate industry.

Specifically, we focus on mini department for rent and our business model is broker. Therefore, to compete with other competitor such as controls. Com, Rangoon. Van and so on, we have specific target market is students in Hanoi capital. Our competitive advantage support for what we have said above are : + First-mover for providing information about mini apartment for students in website. + Our website is for only college student in Hanoi while our competitors do not focus on this segment or student in HCI.

University of Zimbabwe Graduate School of Management *Marketing Ma*nagement Question: Kotler (1988) has stated that: “The heart of modern strategic marketing can be described as STP – segmenting, targeting and positioning. ’’ Discuss this statement using appropriate examples. Introduction Market segmentation By definition market segmentation is the division of a market into different groups of customers with similar needs.

Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions. ‘’In essence it is the process of dividing a varied and differing group of buyers or potential buyers into smaller groups, within which broadly similar patterns of buyers exist. ’’ (Wilson and Gilligan, 2007, p. 318). There are several ways in which companies can segment their markets.

Just as you can divide an orange up into segments you can divide the population as a whole into different groups of people or segments that have something in common. Marketers therefore look for variables they can use to divide up the population. According to Kotler (1997) the commonly used variables are: Geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. Products can be aimed at a lifestyle. People are grouped according to the way they lead their lives and the attitudes they share. For example, young professionals may drive a sports car because of the image they want to portray.

Married parents might want the same things, but have to provide for their children, which is a large extra cost. They will need a family car to suit their lifestyle. Thus you will find a couple that has just married and have no children, will go for a Mazda 3, while older couples with three or so children will go for a Mazda BT-50 because it is bigger and can accommodate the whole family. However the range and variety of marketing decisions suggest that any attempt to use a single basis for segmentation may result in incorrect marketing decisions as well as a waste of resources.

Thus increasingly today you will find marketing strategies combining two or more basis for segmentation of their market. TARGETING Once the firm is satisfied that the segments warrants attention there are various ways in which a firm can then target a market. The first is a single product offering. In other words, the marketer targets a single product offering at a single segment in a market with many segments. For example, British Airway’s Concorde is a high value product aimed specifically at business people and tourists willing to pay more for speed.

Identifying marketing targets enables organisations to find opportunities and tap into them. It gives firms the information needed to focus on the buyers that are interested in what they have to offer. This saves both time and money in an ever-changing society. However if you pursue one segment of your target market and the demand for your product decreases, so will your financial strength. In essence, you are putting all your eggs in one basket. When your firm becomes well established in a particular market segment, it may be difficult for you to move to another segment. This may occur due to your market reputation or popularity.

For example, if Lorimark HR Consultants becomes known for helping college graduates find jobs, unemployed professionals may perceive them as only having the expertise to serve that market. Another downside of target marketing may that a large segment of the population may be left out in the cold. Though demographics and segmentation might give an overall view of the intended market, consumer spending habits change greatly, depending on trends and economic factors. With society taking on more of a unisex lifestyle businesses should be careful when using for example gender to target market.

An example of a product that was traditionally targeted at women and is now being targeted with variations in strategy at men is hair colouring. Men now pay particular attention to their hair in much the same way as woman. Thus target marketing should be done with extra care taking into account all factors that may have an effect on the organization’s profitability and the perception or position it wants to create in the market. POSITIONING Thus positioning is all about perception and is inextricably linked to segmentation. It cannot be defined until the market has been divided into unique segments, and target segments have been selected.

As perception differs from person to person, so do the results of the positioning map. Positioning reflects the “place” a product occupies in a market or segment. A successful position has characteristics that are both differentiating and important to consumers and the characteristic may or may not reflect reality. A position is effectively built by communicating a consistent message to consumers about the product and where it fits into the market in terms of the features, performance, quality, conformance, durability, reliability, style and design — through advertising, brand name, and packaging and all the other elements of marketing mix. Kotler, 1997, p. 301) For years OK Zimbabwe has constantly and consistently bombarded the minds of consumers’ with the message ‘…. where your money buys you more. ’ Thereby creating in the mind of the consumer that OK has the best prices and your dollar with OK can take you a long way. Another example will be that of Colgate and Surf by Unilever, these products are stuck in the minds of consumers (positioned), such that if someone is buying any other toothpaste or washing powder, not necessarily Colgate or surf, they will still refer to the product as Colgate or surf respectively. It is ‘the’ product in mind of the consumers.

That is positioning. What is our current position? What does the space look like – what are the most important dimensions in the category? What are the other products in that space and where are they? What are the gaps, unfilled positions or ‘holes’ in the category? Which dimensions are most important? How do these attitudes differ by market segment? What position do we want to have? Some of the positioning opportunities for a product include: Finding an unmet consumer needs – or at least one that is not being adequately met now by completion? Identifying product strength that is both unique and important.

Determining how to correct a product weakness and thereby enhance a product’s appeal. For example Ponds “new and improved”. Changing consumer usage patterns to include different or additional uses for the product. Identifying market segments, which represent the best targets for a product. How do we create a new positioning? Physical product differences. Communications- finding a memorable and meaningful way to describe the Positioning is not what you do to a product; ‘positioning is what you do to the mind of the prospect’. (www. s-m-a-r-t. com/Exp_brandpros. ) Accessed 3 September 2009.

Other questions that the marketer should contend with in terms of positioning are: whom do I have to defeat to own the position, do I have the resources to do it, can I persist until I get there and are my tactics supporting the positioning objectives I have set. The positioning map below will show how the motor industry positions their products in the market. Positioning map: +High (price) From the above positioning map it can be concluded that products tend to bunch in the high price/low economy (fast) sector and also in the low price/high economy sector. There is an opportunity in the low price/low economy (fast) sector.

Maybe Hyundai or Kia can consider introducing a low cost sport saloon. However it is all down to the perception of the market about the product. Conclusion Undertaking a Segmentation, Targeting and Positioning process is probably one of the most important processes management should undertake both at the onset of a new offer creation as well as part of a periodic revision of the portfolio of offers and strategies used by organization. A market research is always the starting point in the STP process; otherwise the organizations resources will be misdirected. References: Aaker A. David, (1995).

Strategic Market Management, 4th Edition, John Wiley & Sons, Inc. Armstrong J. Scott, (2006). Strategic Marketing Management – A Business Process Approach. Brand pros available at http/www. s-m-a-r-t. com/Exp_brandpros. Accessed 3 September 2009. Grahame Dowling, (2004). Creating Corporate Reputation. Identity, Image and performance. Oxford University Press Inc. Kotler P, (1997). Marketing Management, Analysis, Planning, Implementation and Control, 9TH Edition, Prentice Hall. Malcolm H. B. McDonald, (1996) Marketing Plans, How to prepare them how use them, 3rd Edition, Butterworth-Heinemann. Wilson and Gilligan

BaskinI) Target Market 1) Haagen-Dazs Haagen-Dazs is taking the “excellent ice cream” line; the aim target consumers are the youngers who are fashionable and in the income pyramid peak. (yc2000, 2008) 2) Baskin-Robbins The primary target market of Baskin Robbins is comprised of higher middle (Rs. 150 000 to 200 000) and higher upper (Rs. 200 000 above) income professionals and families with toddlers. The secondary segment of Baskin Robbins target market is composed of teenagers, young adults and students (School and university). II) Point-of-difference ) Haagen-Dazs Haagen-Dazs wins in the segments and grasp of the aim market. Each time to entered in new market, Haagen-Dazs will make careful analysis of the domestic consumer’s mind, this provides great assistance for marketing and branding.

Meanwhile, Haagen-Dazs cooperate with many upscale restaurants, to let Haagen-Dazs ice cream printed on smooth these advanced restaurant menu. In terms of competition, for the reason why Haagen-Dazs maintain excellent results in the fierce competition is because it not only represents a product, it also stands for a lifestyle. ) Baskin-Robbins Baskin-Robbins is the flavor champion of the world. Each month, the Baskin-Robbins team has produces a new ice cream flavor. And it focuses on customer choice. And Baskin-Robbins has the best ice cream cakes. They have a thick layer of cake and a layer of ice cream. The texture of the icing as it melts, the slight crunch of the cake and the way the ice cream melts into the cake where they meet. Plus they have those figurines on top.

Baskin-Robbins has popularized the practice of offering free tastes on miniature pink spoons to customers dazzled by its selection of flavors. Its pink spoon has become a veritable cultural icon. (wejdani, 2011) III) Point-of-Parity 5) Haagen-Dazs All the fruit for Haagen-Dazs’s product is pasteurized, which kills all of the bad bacteria. And all of the Haagen-Dazs sorbet products are nonfat, with the exception of chocolate sorbet. Haagen-Dazs products cannot be refrozen after they’ve thawed, because Haagen-Dazs products were made in the most natural way possible.

Also Haagen-Dazs products should not be refrozen if thawed. Thawing and refreezing can create large ice crystals and cause undesirable gritty textures or diminished quality. 6) Baskin-Robbins Most of Baskin-Robbins products are low fat and contain vitamins. They are passionate about offering their guests delicious products they will enjoy, giving them plenty of menu options, and providing accurate nutrition information so they can make the best choices for themselves.

From the materials Baskin-Robbins use, to the way they construct and operate their stores, they are committed to adopting better, more sustainable approaches whenever possible. (CSR Report, 2010) References: (2008, 11) Haagen-Daz. Marketing Analysis. Retrieved from http://www. studymode. com/essays/Haagen-Daz-Marketing-Analysis-183072. html (2011, 03) Baskin Robbins. Retrieved from http://www. studymode. com/essays/Baskin-Robbins-638496. html

The advantage to Aironic of having a core competency cannot be undisputed according to the information in the case. However, in spite of the strategic advantage over its consumers, Aironic still has certain global strategic challenges in its way that need to be re-thought well.

Beginning with the industry analysis, Aironic is in an industry that is itself in an industry that is poised towards a niche market. Without a regular demand, it is highly unlikely that Aironic relies on the capabilities of its products to generate profits. I have analyzed the situation and believe that marketing is perhaps the most important function in the product chain for the industry firms in order to generate sales. After all, informing the customer that there is a need for their product is the primary aim of the firms. Secondly, Aironic is “the best in the industry” may not be a far-fetched claim but then again the difficulty lies in educating the consumer what the product is all about. For this purpose, it is necessary to market effectively and convey the message across the board. It is important to understand who the consumer for Aironic is: instead of the more profitable hospitals and commercial buildings, Aironic targets the bars, clubs and other enjoyment areas which have enclosed rooms. This presents to Aironic a global challenge since not all Asian countries are open to the concept of bars and clubs and the few that may exists there may have differing priorities with regard to maintaining clean air within the premises.

Aironic’s globalization strategies require a great deal of feasibility studies and forecasting before they can be sure of their success in the global market to emulate that in Australia. Focusing on commercial markets is a good idea in the beginning because the different cultures of the target markets may pose acceptability problems. As described in the case, Asian people have differing priorities and thus it would be advisable for Aironic to carry out research and modify their product according to the results since Asian markets may be hard to please, but they sure are a 2.5 billion plus market.

The most important setback seems to be the cost of patents in each country. Since the patents have to renewed every seven years and have already costs Aironic $270,000 up till now, Airnoic needs to make a comprehensively accurate strategic plan for globalization. It should narrow down the target market by carrying out feasibility analysis and the recommended frame of action would be to move from Europe to America. This move would ensure that the nearest target market can be tested first and then America, which is a larger market than Europe, can be tapped in comprehensively.

The efforts to develop an e-commerce website are in the right direction – particularly if the need is to expand over other borders and educate consumers about the need for the product. It is the right kind of opportunity Aironic has at hand and should be exploited to the maximum. However, it should be identified as to which countries Aironic will be targeting through this strategy. I believe that the European market would be the most ideal target market through online services due to the fact that they trust internet transactions and generally have more clubs, restaurants and bars which can become an ideal target market for Aironic.

Segmentation Variables are characteristics of individuals, groups, or organizations used to divide a market into segments.  To select a segmentation variable, several factors are considered. The segmentation variable should relate to the customer’s needs for, uses of, or behavior toward the product. Segmentation variables can be grouped into four categories: demographic, geographic, psychographic, and behavioristic.

“Demographic variables include age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class”. Because income strongly influences people’s product needs, it often provides a way to divide markets. Income affects people’s ability to buy and their desires for certain lifestyles. Product markets segmented by income include shoes and recreational vehicles. I am the parent of three beautiful, intelligent and respectful teenage girls that love to stay in style.

I selected “shoes” as one of my demographic variables because I find that my families’ choices of shoes are geared towards style, color, and price. I have always purchased Nike Shox for the girls because they provide a lot of support and hold together very well but are expensive ranging from $80 to $110 in price. I also choose “recreational vehicles” as a demographic variable because of our family size. I use to have a Yukon but due to my job travel requirements the wear on my truck, maintenance (mileage, tires) was becoming very expensive, so I sold the Yukon and purchased a smaller SUV with no space for my family.

My husband bought a new 2009 Ford F150 and now we have more room to take trips, haul children around and stretch out. Families have to adjust accordingly as well as they can while remembering what they can afford. Shoes and recreation vehicles are just two or millions of marketing opportunities. “Geographic variables include region, urban, suburban, and rural, city size, county size, state size, market density, climate, and terrain. Customer product needs are influenced by climate, terrain, city size, population density, and urban/rural areas.

” “Climate is commonly used as a geographic segmentation variable because of its broad impact on people’s behavior and product needs. ” When I plan a vacation, I take the time to plan going somewhere that have beautiful scenery, long sandy white beaches, clear blue water and allows relaxation and little interruption. Marketers count on tourists like me to forget cameras at home because that means revenue for the marketer when I have to buy a new camera to capture memories.

Another geographic variable (could also be a psychographic variable) is deciding where you will stay, what hotel will you choose that is as equally comfortable and relaxing as your scenery and meets your lifestyle requirements? Larger cities may allow you to find a five star hotel but in smaller cities you might only find a mom and pop hotel, this is due to “market density which refers to the number of potential customers within a unit of land area, such as a square mile. Although market density relates generally to population density, the correlation is not exact.”

“Psychographic variables include personality attributes, motives, and lifestyles. ” Marketers appeal to positive or favorable personal characteristics to influence the purchase decision, they use individuals’ differing purchases to evaluate lifestyles according to how individuals choose to spend their time in various activities, their income, their interest and opinions, and their education. When appealing to a personality characteristic, a marketer almost always selects one that many people view positively.

Individuals with this characteristic, as well as those who would like to have it, maybe influenced to buy that marketer’s brand. “Marketers taking this approach do not worry about measuring how many people have the positively valued characteristic; they assume a sizable proportion of people in the target market either have it or want to have it. ” Personal appearance, affiliation, status, safety, and health are examples of motives affecting the types of products purchased and the choice of stores in which they are bought. For example, what happens when you see someone with a really cool pair of shoes? Read about iPhone segmentation

You find out where they got them and you buy them. Magazines are a huge status quo where I work such as Wall Street Journal and Forbes. com, these magazines are individual preferences and marketers count on that preference for a profit. “Behavioristic variables include volume usage, end use, benefit expectations, brand loyalty, and price sensitivity. ” Benefit segmentation involved the division of a market according to benefits that customers want from the product, Individuals purchase and use products that provide them with benefits that meet their needs.

“Effective segmentation requires benefits of the product be identifiable, benefits actually divide market into segments, and one or more segments be accessible to the marketing”. Recreational vehicles such as four-wheelers can be used a lot in open land but will be utilized very little in a crowded city. Our family rides the sand dunes with our truck and four wheelers but unfortunately when we come back home, everything just sits because we have no place to ride them, kind of a waste.

Magazines are also targeted to behavioristic variables. There are several types of magazines that are produced by marketers with the intention of targeting key lifestyles such as Glamour magazine for those that want to read up on fashion, beauty, hair, and makeup. Or there’s People, US magazine, The Enquirer for those that like to read the not so true but funny. I remember reading Readers Digest when I was young and it’s still around! That marketing team has been trained well.

Please find below two segmentation variables for each of the listed products and a brief explanation as to why I think they relate to the product. This information was previously listed above.  Shoes- Behavioristic Segmentation because people tend to buy shoes on a regular basis or for a special occasion. People are also very loyal to brands; if they find a running shoe that they like they will buy that shoe again and if that shoe is discontinued they will do anything to find it online or in another store.

Geographic Segmentation because if you are planning a trip to a place with rough terrain you want to make sure that you have tennis shoes vs. high heels. And if you live near a beach you want to make sure that you have sandals vs. hiking boots.

Cameras- Behavioristic Segmentation because people have brand loyalty. When they find something that works and it is dependable then they will buy the same brand time and time again.  Geographic Segmentation because region and climate (Bahamas) would tend to make people want to take more pictures. If you have a great backdrop for pictures you might want to capture that scene vs. a backdrop that doesn’t interest you (junkyard).

Magazines- Behavioristic Segmentation because some magazines are holiday or event specific. Some magazines are available at the checkout counter and due to the readiness to buy them people pick them up out of curiosity and some buy them. Psychographic Segmentation because there are magazines produced for interest in cars, exercise, hair cuts, latest trends in fashion, for sale ads, and current community events. Marketers are trying to capture individual interests.

Hotel Accommodations-Demographic Segmentation because these include age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class. If you’re going on vacation with a family of five, you have to find a hotel room big enough for all five of you which can sometimes prove to be challenging. But, if there are only two of you, the chances of finding a hotel to accommodate your needs are less likely to be a hassle.

Psychographic Segmentation because people with children may want to stay at a hotel that offers amenities’ such as an indoor water park, lobby activities for children or a petting zoo on the grounds (Kalahari resort). Older people on the other hand may look for an area that is low-key, possibly high priced that fits their interests and is a value for there money depending on their lifestyles. – Recreation Vehicles o Psychographic Segmentation because you tend to see higher paid individuals driving around in expensive cars, maybe it makes them feel important.

But, Marketers appeal to positive or favorable personal characteristics to influence the purchase decision; they use individuals’ differing purchases to evaluate lifestyles according to how individuals choose to spend their time in various activities, their income, their interest and opinions, and their education. o Demographic Segmentation because someone older (baby-boomers) will buy a huge motor home to possible retire in and travel while a younger (Generation X) individual may opt for a “RentME” motor home to travel to a Nascar race. The individuals’ social statistic and socioeconomic status play a big part of Demographic variable.

Works Cited

1. Pride/Ferrell, (2006), Target Markets: Segmentation and Evaluation, Marketing Concepts and Strategies, p. 209). pp. 203-127, Boston New York
2. Houghton Mifflin Company Pride/Ferrell (2003). Target Markets: Segmentation and Evaluation ch8 [PowerPoint slides]. Retrieved from online. pcdi. com, BU320_Assignment_04; Houghton Mifflin Company

The Nike-owned American sportswear company has taken over its own distribution in China, moved senior marketing staff to China and put Nike ad agency Wieden & Kennedy in charge of a campaign centered on “Love Noise,” a documentary film (as well as an integrated marketing campaign) about one of the most quintessential aspects of the music world: the road trip. Two bands, 3,584 miles In August 2008, two Beijing-based groups — the post-punk-rock band P. K. 4, already one of the most influential bands in China, and Queen Sea Big Shark, a hybrid dance-rock group — traveled more than 3,584 miles by bus for two weeks. Alongside local bands in each venue, the two groups performed in six Chinese cities: Nanjing, Hangzhou, Changsha, Wuhan, Xi’an and Beijing. As the tour and story unfold, nine featured musicians reveal their personal journeys on the road to self-expression. The documentary was directed by Liu Feng, a filmmaker who joined Wieden & Kennedy in 2005.

The program was created by the independent agency with media-planning support from WPP’s Mindshare. Both companies also work with Nike, which acquired Converse in 2003. The documentary rolled out last month and will be distributed to consumers who purchase Converse shoes at local retailers through the end of March. It’s a risky move to adapt Converse’s music-oriented U. S. strategy for China, because the country’s independent music scene is still very small. On tour, unknown bands typically attract dozens or hundreds of people, not thousands. China’s independent music scene doesn’t have anywhere near the mass appeal it has in the West. It’s at the pioneering stage at this point, but it is growing,” said Cheryl Calegari, who relocated to Shanghai as Converse’s senior marketing director for Asia/Pacific last January. Close ties with music world Converse has cultivated close ties with the music world for decades. The Chuck Taylor All Star and other Converse shoes have been worn by music legends such as Sid Vicious and Blondie, and Converse created a special-edition shoe for Kurt Cobain. Throughout our 100-year history, we’ve always celebrated art, music and fashion, so it was a natural fit for us to be a part of what’s happening in China,” Ms. Calegari said. Before joining Converse in 2005, she worked with fashion brands such as Tommy Hilfiger and Kenneth Cole. Ms. Calegari arrived in China at about the same time the Nike subsidiary stepped up its presence in the mainland. It has increased its marketing investment and last year switched from a licensing setup to a distributor model. Converse shoes are now sold in more than 1,800 retail outlets in China.