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Market Segmentation, Targeting and Contexts

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Introduction

BTEC- HNC in BUSINESS Unit 1- MARKETING Assignment 2 Market Segmentation, Targeting and Contexts Name- Karan Aggarwal Tutor- Marion Fieldstead Date- w/c Contents: Page: a.) Introduction....................................................03 b.) Market segmentation and target marketing (Introduction)................................................................04 c.) Market segmentation ..............................................05 d.) Targeting strategy....................................................18 e.) Buyer Behaviour..............................................20 f.) Marketing mixes for two different segments in consumer marketing........................................................28 g.) Service marketing to organisational buyersDecesions..32 h.) Differences between domestic and international marketing ........................................................37 i.) Bibliography/References.....................................40 j.) Self Reflection& Evaluation...........................................42 k.) Timetable.........................................................................43 INTRODUCTION "The marketer should stop thinking of his customers as part of some massively homogeneous market. He must start thinking of them as numerous small islands of distinctiveness, each of which requires its own unique strategies in product policy, in promotional strategy, in pricing, in distribution methods, and in direct selling techniques." - (T. Levitt, Marketing for Business Growth, Mc Graw Hill, New York, 1974, p. 69) While market diversification was a generic strategy for the 1980s, market segmentation has become a predominant theme of the 1990s. Many companies previously developing products for diverse markets have found the resource implications unsustainable as consumer demand has dwindled. This has led to greater emphasis on defining the characteristics of accessible and financially viable consumer groups in order to target the unique benefits of an existing product portfolio and rationalize production and marketing costs in the process. The nature of service sector products facilitates product and market differentiation with enhanced opportunities for cost control and productivity gains. [1] Market segmentation and target marketing: - (L&M p 158, Cannon p133 Butt. p116) The terms 'target marketing' and 'market segmentation' are often used interchangeably but there is a slight difference of emphasis. The concept of target marketing is a refinement of the basic philosophy of marketing. It is an attempt by companies to relate the characteristics or attributes of the goods and services they provide more closely to customer requirements. Market segmentation is a part of the overall process of target marketing Thus Kotler [1] states that the process of target marketing has ...read more.

Middle

The final buying decision, on the other hand, may take place some time later; perhaps weeks later, when the prospective buyer actually tries to find a shop which stocks the product. REPEAT PURCHASE - but in most cases this first purchase is best viewed as just a trial purchase. Only if the experience is a success for the customer will it be turned into repeat purchases. These repeats, not the single purchase which is the focus of most models, are where the vendors focus should be, for these are where the profits are generated. The earlier stages are merely a very necessary prerequisite for this! This is a very simple model, and as such does apply quite generally. Its lessons are that you cannot obtain repeat purchasing without going through the stages of building awareness and then obtaining trial use; which has to be successful. It is a pattern which applies to all repeat purchase products and services; industrial goods just as much as baked beans. This simple theory is rarely taken any further - to look at the series of transactions which such repeat purchasing implies. The consumer's growing experience over a number of such transactions is often the determining factor in the later - and future - purchases. All the succeeding transactions are, thus, interdependent - and the overall decision-making process may accordingly be much more complex than most models allow for. [2] [In all four dimensions. In each category, 83% of E-I types, 89% of S-N types, 90% of T-F types, was 10.8 points better and for groups with the same personality dimensions was 4.4 points better than individuals (Volkema 114-16). Working in groups with a variety of people composed of multiple personalities and cognitive styles, often produces a better outcome in decision making rather than individually.] Consumer Purchase Behaviour * Impulse purchases occur when a consumer experiences a sudden urge to buy something immediately without a buying intention formed prior to entering a store * Compulsive consumption a response to ...read more.

Conclusion

For optimum result's, a firms marketing mix may have to be modified to confirm to a different environment, though wholesale modification is not always necessary. The degree of overlap of the sets of uncontrollable variables will dictate the extent to which the four P's of marketing must change - the more the overlap, the less the modification. The varying environments within which the marketing plan is implemented may often rule out uniform marketing strategies across countries. McDonald's, although world renowned for its American symbols and standardisation, has actually been flexible overseas. Recognizing the importance of foreign markets and local customs, the company customizes its menu by region. In fact, it has even excluded beef from its menu in India in deference to the country's Hindu tradition. [16] Differences in domestic and international marketing Domestic Marketing International Marketing Main language Dominant culture Research straightforward Relatively stable environment Single currency Business conventions understood Many languages Multi-culture Research complex Often unstable environment Exchange rate problems Conventions diverse and unclear Factors differentiating domestic and international marketing Factors Domestic International Social and cultural Relatively homogenous market 'Rule of the game' understood Similar purchasing habits Fragmented, diverse markets Rules diverse, changeable and unclear Diverse purchasing habits Economic National price Uniform financial climate Stable business environment Diverse national policies Variety of financial climates, ranging from very conservative to highly inflationary Multiple business environments, some unstable Competitive Competitors products, prices, costs and plans usually known Many more competitors but little information about their strategies Political/legal Relative freedom from government interference Political factors relatively unimportant Involvement in national economic plans Political factors often significant Technological Use of standard production and measurement systems Training of foreign personnel to operate and maintain equipment. Bibliography/References: Books/Notes: * Kotler Philip, Wong Veronica, Saunders John, Armstrong Gary (2005) Principles of Marketing, Prentice Hall, Europe. * Fieldstead Marion- Marketing Handouts, Wirral Metropolitan College (2007/08), England. Websites: * http://apollo4.bournemouth.ac.uk * http://www.marketsegmentation.co.uk * http://www.udel.edu * http://www.thetimes100.co.uk * http://www.bized.co.uk * http://books.google.co.uk * http://www.google.com * http://www.ask.com * www.starware.com * www.wikipedia.com * www.yahoosearch.com * www.ask. ...read more.

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