• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15

This report will systematically explain the concept of market segmentation together with examples of how Dyson can segment its markets.

Extracts from this document...

Introduction

Terms of reference The assistant to the Manager of the marketing department of Dyson have been asked to write a report that describes the concept of market segmentation with suggestion on how Dyson could segment its markets, an outline of the new product development process along with suggestions of how Dyson should apply these stages and concluding with an explanation of how Dyson can perform their marketing control. Procedure This report is fully based on secondary data, primarily from the course literature but also other internet based sources. Findings This report will systematically explain the concept of market segmentation together with examples of how Dyson can segment its markets. This will be followed by a stage outline of the new product development process accompanied by my suggestions on how Dyson should apply these stages. Finally, a descriptive scenario of how Dyson might control and monitor its performance will follow. Levels of market segmentation Mass marketing A company using this strategy does not segment the market at all; it offers the same product and uses the same promotion for all consumers. This method has often been used by companies with mass production of convenience products or by companies with few or none competitors. Mass marketing is associated with low promotion costs often reflected by a low price. Segment marketing This involves the process of dividing the market into categories with different characteristics and needs. By doing this a company can adapt all their offerings towards the needs of one or more different segments, in order to better fulfil these needs. The advantages are that a company can target the segments of which they best can match the consumer needs or those segments with the least number of competitors. Niche marketing A niche is basically a sub-segment which often has unique characteristics and special needs. Niches often search for special features, for which they are prepared to pay for. ...read more.

Middle

This stage of the process is not only about generating many ideas; they should also be good ideas which are oriented towards the company's goals and objectives. To ensure this the company can introduce an ideas system management, which collects reviews and evaluates the ideas. In order for the company to generate these ideas they can consult many different sources. Internal sources: New ideas can be generated from the company's formal research and development department. They can also encourage their employees to come with new ideas through different programs and schemes. The level of encouragement for employees to generate new ideas can be seen as a cultural artefact. Customers: Analysing customer's questions and complaints can generate new ideas. A company can also conduct surveys to learn more about the consumer's needs and wants or they can involve customers in the development process. Sometimes lead consumers develops new products on their own since they are the most advanced users and are able to identify improvements before others. Competitors: Companies can analyse competing products or services by either survey consumer opinions about competitors products or they can analyse the competing product themselves and analyse its sales records. Distributors, suppliers and others: Distributors are often in more close contact with the market and can more easily and regularly obtain consumer information and opinions. Suppliers can inform about new techniques or raw materials that opens up new possibilities for product development. Dyson: Dyson should appoint at least one person in charge of collecting and evaluating new ideas, this person should also communicate the goals and objectives that the new ideas are supposed to solve. The R&D department must be put to work with these goals and objectives in mind. Dyson should together with their distributors investigate the consumers' opinions about current washing machines and also conduct surveys in order to find out what attributes the consumers value the most and which improvements they would like to see. ...read more.

Conclusion

The new washing machine will primarily be launched in those markets that are already strongly penetrated. Doing this they will especially target well-educated, middle-to-high income families who appreciate quality, functionality and design. Marketing Control When launching the new washing machine Dyson calculated a market share of 3% during the first year, a sales level of 50,000 and a profit of �22million. When preparing for the marketing control of this new product they brake down the figures into quarterly estimations, i.e. setting standards. It was estimated that the market share would increase in the following pace: 1st quarter = 0,7%, 2nd quarter = 1.2%, 3rd quarter = 2% and 4th quarter = 3%. If these market shares where to be fulfilled Dyson should reach its target profit. The reason they choose market share as a standard is that it is related to the sales of the competitors. During the first year Dyson continually conducted research in order to collect data referring to their relative market share. The first two quarters where slightly below the forecasted figures, 0,67% and 1,14%, but Dyson did not find this particularly worrying. However, in the third quarter the research showed a rather large difference between forecast and actual results, the market share had barely reached 1,5%. Dyson concluded that this was caused by a general economic slowdown in Europe, of which shopping goods are fairly sensitive. Since the new washing machine was first launched in Europe due to the fact that Dyson had earlier been able to penetrate these markets more strongly they had decided to wait with their launch in the US and Asia. However, with the forecasted market share standards not meeting its target they decided to launch the washing machine in the US and Asia earlier than planned which turned out to succeed since in the second quarter of the second year their revised forecasted market share figures where exceeded. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Marked by a teacher

    Marketing mix and segmentation of Sony.

    4 star(s)

    They can order and buy hardware and software support, play in networks and if somebody is registered in the database, they will receive special offers and a lot of useful information by e-mail. It brings the customers together and adds to the experience of being part of Play Station.

  2. The purpose of this marketing plan is to outline the situational analysis, marketing objectives, ...

    Penetration Pricing - setting the product below the competitors gives it an advantage and gets a foothold in the market, thus winning the market share.

  1. Is Dyson product or market oriented?

    This product is much more product oriented. One can see that Dyson is focusing more on marketing the product than conducting market research, and have also invested in creating new technology that wasn't previously in demand. Vacuum Cleaner The vacuum cleaner of Dyson is said to contain various advanced technologies.

  2. Strategic Marketing Report - Virgin Trains

    Weekends may be full of Teenagers whereas the weekdays may be full of commuters. I cant be at the station all week to do the Questionnaires because of other commitments. Virgin Trains would need to have a segment and time scale larger than mine.

  1. The marketing models I will evaluate will be SWOT and PEST analysis, the product ...

    I think because Cadbury hold more of a market share than both Nestle and Mars, the brand name alone will influence consumers to buy my product. Evaluation of the reliability of the models I think that Boston Matrix is reliable as it consists of basic information, which gives a simple outline of market share and growth of a product.

  2. Marketing Planning & Segmentation, Targeting and Positioning

    of that competitor to develop and identify a clear superiority compared to all existing competitors in some subsection of the total market. Particularly relevant to the analysis and planning stage, Wings N' Things must apply the principles of segmentation, targeting and positioning to achieve this advantage.

  1. I have been asked to produce a marketing strategy for an existing or new ...

    Mercedes have a slogan 'Committed to you. For the lifetime of your car.' Mercedes a promoting themselves as a caring organisation, which has a good after sale assistance. When marketing my product I intend to identify customers' needs wants. I will carry out extensive research into what existing and potential customers expect from Mercedes.

  2. The concept of segmentation and the bases for segmenting markets - The main methods of ...

    The segmentation process consists of three distinct stages segmentation, targeting and positioning. Kolter, Armstrong, Saunders and Wong (2001) further divide this providing us with six key steps in marketing segmentation, targeting and positioning. Firstly market segmentation - to identify bases for segmenting the market, secondly - to develop profiles of

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work