Mba 565 Final Exam

It needs to be a specific group of customers. Sometimes using stereotype images can help to describe a group, such as the “soccer mom.”

Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The

Does the firms’ value proposition match with the benefits asked for by the consumers from the target segment?

Organizations usually employ market segmentation in competitive markets for appropriate targeting of customers. This paper provides an analysis of how market segmentation can be utilized for competitive advantage as well as the need for ensuring diversification for sustainable growth.

Define the bases of segmentation used to segment consumer and/or organizational markets (the rows in your grid)

Market segmentation allows marketers to understand customers’ needs and identify target markets (Peter & Donnelly, 2011). Bright Light Innovations will be able to evaluate different segments to determine differential advantages in each of those segments. Furthermore, management will be able to determine any of the particular marketing mix for a more successful strategic plan. Market segmentation can be obtained by researching geographic data (zip code, region, etc), demographic data (age, occupation, nationality, etc), psychographic data (social status, personal type, etc), behavioral data (customer behavior), or any other data that can be beneficial to the research (Kawasaki, 2004).

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).

1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

By looking at the demographic factor of age, we segment the market into 3 types of customer group which is “children, teenagers and young adults”, adults, and senior citizens. Those below 25 years old are belong to the “children, teenagers and young adults”, 25 to 55 are considered adults, while above 55 are belong to the senior citizen.

General Issue: which segments should the company target? How should the company and its products be positioned?

Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other

Production concept assumes that customers will want to buy products or services that are easily available and affordable. Hence, management would focus more on production efficiency and distribution of the product. This concept is useful when the demand of a product is higher than its supply. Coca-cola is one of the successful examples of companies that adopt production concept. The company makes Coca-cola can be purchased almost everywhere in a country, either urban area or rural area.

As mentioned above, to get a product or a service to the right person or company, marketing team should segment the market first in different defined segment, then while targeting single segment or series of relevant segments, the product or service should be positioned accordingly within the defined segment(s).

The first concept of marketing to emerge which have gone on to set the foundation upon which future concepts have been developed, holds that consumers favor products that are commonly obtainable and low-priced. Most business owners and managers of production-oriented businesses focus on achieving high production efficiency, low costs, and mass distribution. This type of marketing concept is logical in many emerging countries, where consumers are more interested in obtaining the product than in its features. This orientation is commonly employed when a company desires to expand to other markets. It is essentially concerned with building production capacity and

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so