What is Segmentation Targeting and Positioning

What is Segmentation Targeting and Positioning As we studied the definition of marketing as understanding customer needs and working to satisfy their needs, but different customers have different tastes, needs, and wants. That means they do not want same products and services, hence the need of dividing the market comes into the picture.Finding potential market which has potential customer and satisfies organisational goal i.e. profit is done in dividing market or in other words Market Segmentation. Products or services offered by organisation should be landed off at right place. Segmentation emerges as a need for marketing managers when it is needed to make their product at right place. The concept of segmentation was introduced in 1956 by Smith, who defined it as viewing a heterogeneous market (one characterised bydivergent demand) as several smaller homogeneous markets [JOURNAL OF MARKETING MANAGEMENT, 2009, Vol. 25, No. 3-4, pp. 357-373 ISSN0267-257X print /ISSN1472-1376 online  © Westburn Publishers Ltd.] Obviously managers may wish to understand customers requirements in order to target product offerings and/or promotional messages but, as Hackley (2005, p. 15) observes, in many organisations segmentation becomes a defaultactivity. It is not possible to target everyone and some criteria have to be applied todivide consumers into manageable categories. [JOURNAL OF MARKETING MANAGEMENT, 2009, Vol. 25, No. 3-4, pp. 253-272 ISSN0267-257X print /ISSN1472-1376 online  © Westburn Publishers Ltd.] For instance, people who buy steel lintels in Japan use them in very similar ways to buyers of steel lintels in Germany. These similarities in the use of products have led many business-to-business marketers down the road of convenience segmentation i.e. a group of customers in France would be treated the same as a group of customers in Spain, except that the first group is spoken to in French and the second in Spanish. In other words, language is the criteria for segmentation and not needs. [Corporateauthor: by b2b marketing] Markets can be segmented in different way as there is array of option and no single prescribed way. There are three broader groups in which market can be segmented: Behavioural, Psychographic, Profile. Behavioural Variables: This variable is applied when the people in the market seek for products which benefit orientated. This variable include benefit sought, purchase occasion, purchase behaviour, usage, perceptions and beliefs. These included variables are applied for different products of parent companies before segmenting the market. Psychographic variables: This variable suggests grouping customers on their lifestyle and personality. These include lifestyle and personality. Profile Variables: this variable extends the study in depth to reach customers very efficiently. This includes age, gender, lifecycle, social class, income, geographic, and geo-demographic.The main reason being the modes of reaching customer are defined in this variable i.e. readership or viewership in different location, different age/gender, different income groups etc. Tyre industry segmentation process is simple and narrow because of less variety of parent products. Michelin had segmented its products on basis of utilization based on automotive industry. Their products and services have been widely segmented according to use and demographic. Their main emphasis is on demographic locations which clearly define that requirements are different for different areas. Michelin has divided its products and services globally as core product, value added services, innovation drive and engineering services. Core products include tires for different segments of use and requirement. Following figure illustrates Michelin product classification: [SOURCE: BERNSTEIN ANALYSIS, EUROPEAN TIRE MAKERS: SIGNIFICANT RESEARCH CONCLUSIONS ,] [SOURCE: CORPORATE HOST, JANAURY 2004, MICHELIN PERFORMANCE AND RESPONSIBILITY] Above diagram illustrates organisation of Michelin product lines into different areas of activity, with its own marketing, production and sales force. Special activities such as Digital Maps are handled by VIAMICHELIN and other accessories products in LIFESTYLE. Market segmentation of Michelin has done is as shown below: Targeting is mainly done using three broad strategies: Mass Marketing is way in which instead of analysing the differences of customers want we analyse similarities whichever may be the market segment. According to history of marketing, in early 19 century Coca Cola had adopted this strategy but as of now it had to change. Another example like distilled water manufacturers did not differentiate the market according to needs which still they follow up in some parts of world (for eg. Asia or Africa). They have a common product for all. This strategy is also called as undifferentiated marketing. [Armstrong] Selective Marketing, involves aiming selected product for selected segment of market. This strategy of segmentation is followed for every pocket, purpose and personality. This market coverage strategy results in stronger segment position and higher sales, but note that it also results in increased costs of separate marketing, research, forecasting, promotion, planning, and channel management.[Armstrong] Niche marketing, also called ad concentrated marketing mainly focuses on large share of one or few segments or niche. This strategy mainly helps the organisation to reduce RD concentration areas and expenses as they are focusing on limited set of customers i.e. one . [Armstrong] [Jobber 283,2010] For example, visualize the mass marketing person as standing smack in the middle of a major league park. On the ground, in front of this person, is a large pile of various denominations of currency. The mass marketing person just set this pile of currency on fire. He wants to attract the attention of the seated spectators using the smoke from the burning currency. He has put out the word that smoke from burning currency will clear all eight sinus cavities. Since the ballpark is so huge, by the time the smoke reaches the parks perimeter, it will be severely diluted by the size of the park and the distance from the fire to the spectators. Although the spectators might know about its benefits, the area is so spread out that theyll hardly smell the smoke. The end result will be minimal unless a tremendous amount of currency is set on fire to produce much more smoke. On the other hand, I see a niche marketing person as someone who takes the same pile of dollar bills, goes over to a pre-determined section of the bleachers then sets his pile on fire. He knows, from prior research, that the crowds in that section of the bleachers are interested in clearing their sinuses. Because of the smaller area, they will also be able to strongly smell the burning currency. The niche marketer will have better results using the same amount of money because its impact is targeted.Whether its a baseball field, the printed media or the Internet the results will be the same. That is, its much easier to attract the attention of a smaller crowd that youve identified as being interested in what you have to offer. (Corporate author:http://marketing.about.com/cs/advertising/a/nichevsmass.htm) Positioningis mainly done to locate the product level in market place. This variable involves creating distinct market value by providing competitive advantage. Where is product to be launched, when is to be launched, how to be marketed. This can be done effectively and successfully by implementing strong marketing mix, in which involves providing product and services to customer with differential advantage. Providing additional features, valued images created by advertising, better distribution. [jobber p285,2010] Michelin has laid importance to targeting and positioning in valuable way. They have advertised them using their legendry brand ambassador BIBENDUMto reach their customers. Their advertisements empower their strengths for customer attraction. They have clearly aimed these advertisements to attract their customer who are more focused towards quality, product life, product performance and positive effects, product durability and reliability in weather conditions. MICHELIN products having tag lines on their advertisements as : LASTS UP TO 25% LONGER, ITS TIME TO FIGHT BACK FUEL EFFICIRNT TYRES, THE RIGHT TYRE CHANGES EVERYTHING, Hence, examples of tag lines incorporated by Michelin have added a brand value as well as competitive advantage in existing market.

Global Change Essay -- Environmental Biology Science Essays

Global Change Introduction: Global Change is a new mutli-disciplinary science which seeks to understand the various ways the environment is being altered by man's activities. The mechanisms of change are referred to as anthropogenic forcings and are usually involved with atmospheric alteration or land-use changes. The atmosphere is being altered by the addition of many chemicals including carbon dioxide, oxides of nitrogen, sulfur compounds, halogen compounds and various aerosols. Land-use changes include habitat fragmentation, conversion to agricultural uses and biome conversion from introduced exotic species. As the human population continues to expand it puts increasing pressure on ecosystem services (Cairns, 1996). Ecosystem services are those benefits man derives from the natural world including air and water of a composition which promotes health, soil and nutrients in which to grow food, plants to convert sunlight into energy and an atmosphere which provides livable climate conditions. Global Change rese arch attempts to quantify and understand these processes and how human activities may alter them. Current research programs are being conducted by the National Science Foundation, the United Nations, the International Geosphere-Biosphere Project (Walker, 1994), the World Wildlife Fund for Nature and many other nations and international organizations. Atmospheric Change Global Warming One of the most heated debates on global change is the possibility of global warming. The first hints of global warming came from David Keeling's Mauna Loa Observatory carbon dioxide data which showed repeated yearly fluctuations and a definite upward trend in atmospheric carbon dioxide concentrations (Graedel, 1993). Since then... .../www.lib.utexas.edu:80:/Libs/PCL/Map_collection/ Map_collection.html 7. Sustainable Development http://www.ulb.ac.be/ceese/sustvl.html 8. Environment Today http://enviro.mond.org/ 9. National Biological Survey http://www.im.nbs.gov/ 10. University Corporation for Atmospheric Research http://www.unidata.ucar.edu/ 11. National Climatic Data Center http://www.ncdc.noaa.gov/ncdc.html 12. United Nations International Panel on Climate Change http://www.unep.ch/ipcc/ipcc- O.html 13. Global Change Master Directory http://www.gcmd.gsfc.nasa.gov/ 14. U.S. D.O.E. Carbon Dioxide Information Analysis Center http://cdiac.esd.ornl.gov/ 15. The Nature Conservancy http://www.tnc.org/ 16. EPA Global Warming Page http://www.epa.gov/globalwarming/home.htm 17. United Nations Global Environment Outlook 1997 http://www.grid.unep.ch/geol/

Exam Question and Answer on Market Segmentation

QUESTION AND ANSWER ON MARKET SEGMENTATION Salim Brommer is the Marketing Director of Ashkol Furniture Supplies, a medium-sized company which specializes in manufacturing office furniture. The company makes its products in India, so benefiting from relatively low labour costs. However, it has recently experienced intense competition from suppliers who have even lower cost bases. Salim has decided that his company will benefit if he focuses on those customers who can provide higher profit margins. He has decided to target domestic customers in Europe.Increasingly, private households, particularly those with computers, are converting spare rooms into office-style areas. Additionally there has been a noticeable trend towards working from home. This saves employers incurring the costs of office provision, and also employees save on travel and can also work at times convenient to themselves. However, Ashkol has no experience of dealing with these types of customers. The company now needs to develop a suitable marketing strategy to succeed in this new area and maintain a sustainable competitive advantage.Required: a. Using a suitable model of your choice, develop a marketing approach which Salim might use to enter this new market. b. Explain how Salim could select appropriate target markets and position his products so as to create and sustain competitive advantage. Suggested Answer Salim needs to develop a marketing strategy for entry into the domestic market in Europe. This can be achieved by looking at the factors that make up the marketing mix: product, price, place and promotion. Choosing a marketing mixThe design of the marketing mix should be decided on the basis of management intuition and judgment, together with information provided by market research. Elements in the marketing mix partly act as substitutes for each other and they must be integrated. The product needs to be positioned to appeal to the target customer. For example, Ashkol would struggle to de velop a luxury brand image if they set price at a low, penetration level. Product The physical product needs to be appropriate for the private household market.Office furniture may have a very different style to household furniture, so a different approach may need to be taken to the design of the product in order to make it appealing for the domestic buyer. A customer will only buy one of Salim’s products if they get a better deal from buying it than from buying any of the alternatives. This highlights that the nature of the products in the new range will need to meet the demands of the new target market. Areas to consider here are design (size, shape) and features. For example, it may need to be smaller and made of better quality material.The space available in domestic accommodation is likely to be quite restricted, so some standard items may not sell well simply because they are too large. Multi-purpose items, such as desks that incorporate filing drawers and PC monitor s tands may be required. Place Place deals with how the product is distributed, and how it reaches its customers. Establishing a suitable distribution system is going to be one of Salim’s largest tasks. His products are bulky and will therefore have to be transported by ship from India to Europe, probably in freight containers, which will impose a minimum economic scale of shipment.Distribution Channels Serious consideration will have to be given to how customers will be able to view, order and receive delivery of the products. Furniture showrooms are necessarily large areas and need to be in areas where customers will be attracted. Even if selling is by direct mail or over the Internet, there will be probably have to be a warehouse to receive bulk shipments from India, break them down and dispatch individual orders. All this has major cost implications perhaps offsetting the cost savings from cheaper labour.These considerations alone may push Salim towards a co-operative ventu re with a European agent who knows the market and is prepared to take on the selling and distribution task. Promotion involves arousing attention, generating interest, inspiring desire and initiating action. Marketing communication involved in this could be advertising, public relations, direct selling or sales promotion. A furniture showroom would be part of this but a wider approach will be needed. The target market is people working from home and the promotional methods used should be appropriate to this market.Types of promotion * Direct promotion via mailing lists may be appropriate, although because Salim has no experience in this market, he would probably have to buy the list which may make this an expensive option. * There are numerous home style magazines in which adverts can be placed. * The Internet is a vital part of the life of people working from home and its potential for promotion should be fully utilized, perhaps by setting up a dedicated website. Organising and des igning the marketing communication effort will almost certainly require input from someone familiar with the European market.Price is the final element of the marketing mix and is an important signal to customers about the product. It is important that the price should be competitive so Salim should investigate the prices being charged by competitors who have similar product ranges. Price should also indicate the quality of the product so Salim will need to decide if he wants to produce a deluxe range or a more basic model. Discounts and payment terms need to be considered as a potential way of attracting customers especially in the initial start up phase of the new product line. Part (b)Because of limited resources, competition and large markets, organisations are not usually able to sell with equal efficiency and success to every market segment. It is necessary to select target markets. A target market is a particularly attractive segment that will be served with a distinct market ing mix. While Salim’s products may have some application for commercial users, he intends to sell then to customers, who will view them as shopping goods. These goods have a higher unit value than convenience goods and are bought less frequently, usually after some thought and consideration have been expended.Salim should try to specify the segment of the customer market into which he wishes to sell his products with some care, since this will influence important decisions about all the elements of the marketing mix, including such things as product design, marketing communications, price and distribution methods. Kotler identified six steps: Step 1- Identify segmentation variables and segment the market Step 2- Develop segment profiles Steps 1 and 2 are in segmentation Step 3- Evaluate that attractiveness of each segment Step 4- Select the target segment(s)Steps 3 and 4 are in targeting Step 5- Identify positioning concepts for each target segment Step 6 – Select dev elop and communicate the chosen concept Steps 5 and 6 are in positioning Segmentation variables fall into a small number of categories. Geographical segmentation is very simple, but can usefully be combined with socio-demographic segmentation. Psychographic segmentation is not based on objective data so much as how people see themselves and their subjective feelings and attitudes towards a particular product or service, or towards life in general.The behavioural approach segments buyers into groups based on their attitudes to and use of the product, and the benefits they expect to receive. Both of these methods are most useful for convenience goods and are not, therefore likely to be very useful to Salim. Probably, the best segmentation approach for Salim is socio-demographic segmentation, which is based on social, economic and demographic variables such as education, income, occupation, family size and social class.Much work has already been done on this approach, in the ACORN syst em, for example, and Salim would be able to buy in the basic information he needs. Segment Validity A market segment will only be valid if it is worth designing and developing a unique marketing mix for that specific segment. Salim will have to be sure of several things about his chosen target market: Is it large enough to be profitable? Does this segment respond differently in the marketing mix than another segment? Can he reach the potential customers? Can the segment be reached profitably?Is the segment stable enough to justify resources being spent on it? Will it enable him to build on the company’s strengths? Internal Analysis It is important to assess company strengths when evaluating attractiveness and targeting a market. This can help determine the appropriate strategy; because once the attractiveness of each identified segment has been assessed it can be considered along with relative strengths to determine the potential advantages the organization would have. In thi s way, preferred segments can be targeted. Product PositioningIt is unlikely that Salim will be able to identify a market segment where there is no direct competitor, so it will be necessary to position the product line in such a way as to create of some form of product differentiation. The aim is to make the customer perceive the product as different from its competitors. An aid to this is to try to identify gaps in the market by considering the mix of the product attributes such as price, applications, users, occasions for use and specific aspects of quality may be drawn to refine knowledge of product position.

Do Creationism and Intelligent Design Have a Place in the...

Surveys show that fifty percent of adults in Turkey, forty percent in the USA and fifteen percent in the UK reject the theory of evolution and believe that life on Earth came into existence as described in the religious texts (Jones and Reiss, 2007; Miller; Scott and Okamoto, 2006; Lawes, 2009). President G. W. Bush commented as follow: Both sides ought to be taught properly...so people can understand what the debate is about....Part of education is to expose people to different schools of thoughts....You’re asking me whether or not people ought to be exposed to different ideas, and the answer is yes (Baker and Slevin, 2005). However other views have been reported in the literature. Pennock (2007: 72) summarizes his position as†¦show more content†¦In 2006, the organisation â€Å"Truth in Science† (2006) sent a free resource pack to the Head of Science in every UK secondary school and every sixth form college. â€Å"The resource pack aimed to describe and criticise Darwin’s theory of evolution on a scientific basis and suggests that the living world is intelligently designed†. At about the same time, The Atlas of Creation was published (Yahya, 2007) and widely distributed to scientists and educators around the world. These events resulted in the publication of literature examining creationism and intelligent design (Jones and Reiss, 2007; Allgaier, 2008; Allgaier, 2010; Hokayem and BouJaoude, 2008; Williams, 2008; Alexakos, 2009). Creationism and intelligent design seem to be on the increase (Graebsch and Schiermeier, 2006; Chinsamy and Plagà ¡nyi, 2007; Mercer, 2007; Kutsch era, 2008) and there are more countries in which schools are facing the controversy over evolution and creationism. However, the UK is the only country that has produced explicit guidance on the issues of creationism or intelligent design in the science classroom. In summer 2007, the DCSF published â€Å"Guidance on Creationism and Intelligent Design†. The report points out that the use of the word ‘theory’ in science can be misleading as it differs from the everyday meaning. In science the term is used when there is substantial evidence to support it. The Guidance goes on to state: Creationism and Intelligent Design are sometimesShow MoreRelatedThe Debate of Orgin: Creationsim versus Evolutionism992 Words   |  4 Pagesmystical being, this Intelligent Designer, went on. 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Should Creationism, or as it is sometimesRead MoreCreationism Vs Intelligent Design Creationism1474 Words   |  6 Pageswhether creationism and intelligent design are valid alternative theories that should be embodied within the curriculum of science classes. ‘Through local school boards, sympathetic politicians, and well-funded organizations, a strong movement has developed to encourage the teaching of the latest incarnation of creationism—intelligent design—as a scientifically credible theory alongside evolution in science classes.’ Creationism is the rejection of evolution in favor of supernatural design (PennockRead MoreThe Theory Of Evolution Or Intelligent Design1677 Words   |  7 PagesThe origin of life may seem to be shrouded in m ystery, but in modern America two main theories have come to dominate as the explanation; either the theory of evolution or Intelligent Design. 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Based on the biblical account, â€Å"In theRead MoreScience Of Biology And The Greatest Conflict1316 Words   |  6 Pagesbegin? Intelligent Design is yet another challenger to creationism and evolution as its proponents believe that it has the best answer to the dilemma of origination. The conflict began because of the science of biology and the need to educate young men and women. The great question that everyone wants to know is where do we come from. One must also be mindful that there are no special school board meetings held or court cases to keep young students from studying Greek mythology. 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Christianity groups want creationism to be taught along with evolution.This is a problem because creationism, which is currently being disguised as Intelligent Design,is not a science. â€Å"Given the wide variety of religious views about creation, there are simply not two sides to be compared and in any case these views are not science and do not belong in a science classroom† (Verma 206). Supporters of creationism in the classroom say since evolution is a flawed theory, it cannot