Segmentation and Target Market The three major players in the soft drink market are PepsiCo, Inc., the Coca-Cola Company, and the Dr. Pepper Snapple Group (Change Lab Solutions, n.d.). All of them use effective market segmentation to target specific markets. Effective target marketing requires that marketers, segment the market, by identifying and profiling to find a distinct group of buyers who differ in their wants and needs (Kotler & Keller, 2012). They target their specific product to one or more market segments they have identified, and for each target segment establish and communicate the distinctive benefit of the company’s products to position themselves in the market. Coca-Cola and Pepsi-Cola retain the first and second …show more content…
Snacking is a national pastime, so the snack foods: pretzels, chips, multi-grain snacks, granola bars, cookies cereal, rice sides, eat-and-heat foods, would target all markets.
Behavioral Segmentation
Behavioral segmentation divides buyers into groups based on their knowledge, attitude towards, use of, or response to a product (Kotler & Keller, 2012). When it comes to needs and benefits, you would primarily see health conscious individuals or parents buying for their families; water, healthy oatmeal, juices, maybe diet soda, multi-grain snacks, and Quaker granola bars. In the decision role, we have the initiator, influencer, decider, buyer, and user (Kotler & Keller, 2012). In most families everyone has a thought or opinion; however, in the end the buyer who does the grocery shopping makes the final decision. All of the products in the PepsiCo beverage and food line are for all occasions, a user would be any consumer wishing to make a purchase, and the usage rate would vary as much as the type of food or beverage would vary. Loyalty status is a place where with the right advertising and marketing, PepsiCo could possibly position themselves to the number one position. Loyal Coca-Cola drinkers are a large target market, but getting them to choose a different brand over the one they have been loyal to for a lifetime takes some work. When Coca-Cola made the mistake of changing their recipe for a short time, this gave Pepsi a chance to steal some
Segmentation and Target Market PaperJonathan GraceMKT/571October 21, 2014Dr. Johnny MorrisSegmentation and Target Market PaperThis plan was put into in 1936, establishing the Government Employees Insurance Company, the company known and respected today as GEICO. GEICO was primarily directed toward federal employees and certain groups of enlisted military officers. Lillian Goodwin actively marketed the company to this group of consumers and within a year, GEICO had written over 3,700 policy holders and employed 12 staff members.
The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001).
Identification of the target market of A Little Taste of Texas remains a crucial element in the success of the business. Hence, segmentation becomes an initial component of targeting the customers; moreover, this form of marketing revolves around subdividing the audience into customer sectors rooted in their common characteristics (Board, Editorial, 2014). Moreover, according to Suttle (n.d.) marketing segmentation is an application preceding the targeting, thus, assuring a more selective audience to which A Little Taste of Texas will market their products, and enable the business to experience a greater success factor. This application process will correlate business A Little Taste of Texas products and customers, hence, ensuring an increased
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).
McDonald’s is a fast food giant and is one of the best known burger chains in the world. McDonald’s builds its brand equity by listening to its customers and continually adjusting its communication and marketing methods. Because McDonald’s faces stiff competition around the world from other fast food chains it must continually adapt. This paper will show how McDonald’s is segmented in the fast food industry, its target markets, and the selection process for that target market. Developing a marketing strategy is very important and to do that it is important to understand the
Market can divide in to 3 such as individuals, families and tourists, individuals mainly businessman and students and workers .laubeck is residential area so there large number family all so. luebeck old historic city there are tremendous flow of tourist all so .families make the majority of business at dinner time . Individuals making up majority business on breakfast lunch time. viyoga is unique vegetarian theme stands in casual niche market in restaurant industry .There are very limited competition in the market against Viyoga because of the uniqueness and differentiation of the product .
This study examines and conceptualizes the recent advancements in market segmentation and development studies and globally explores their managerial implications for marketing practitioners and researchers alike for orderly decision-making purposes.
Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or
Marriott International, Inc. was founded by J. Willard and Alice Marriott in 1927 and has been a leading hospitality company for over 80 years. It has more than 3,900 properties, 18 brands, and associates with its headquarters in Bethesda, Maryland, USA. The company boasts of revenues of nearly $13 billion in the fiscal year 2013 and is expanding globally. This paper specifically discusses the market segmentation, targeting and positioning strategies of Marriott – Marriott Hotels & Resorts, Courtyard by Marriott in the Asia-Pacific marketplace. Asia-Pacific is expanding exponentially for the hospitality industry and Marriott has
Market segmentation is the key strategic concept in marketing today (Michael N. Tuma, 2011). It is shows as the attempt to distinguish 'homogeneous groups of customers who can be targeted in the same manner because they have similar needs and preferences'. (Wedel & Kamakura, 2002). Good market segmentations helps in understanding the
The decision of dividing the entire market into different consumer segments is just what Paul Elio did when he saw a potential for his three-wheeled efficiency vehicle. Before a business can target a specific market, the market needs to be divided into segments based upon similar needs, wants, or desires. “It is not feasible to go after all customers, because customers have different wants, needs and tastes” (Suttle). Identification of target demographics is necessary for market segmentation research. Consumer demographics range from gender, age, ethnic and religious groups, household size and income, and even geographic regions. Markets can also be segmented based on consumer’s behavioral and psychographic characteristics. Elio took notice that many consumers drive larger vehicles on their commutes and often only have one person inside the car. He saw a need for a
Identifying various segments of a target market can be achieved by examining geographic, demographic, psychographic and behavioural differences among consumers. Segmentation is a methodological process of dividing a market into distinct homogenous groups that might require separate experiences or marketing service mixes (Venugopal and Baets 1994) (Sulekha Goyat. 2011). There are numerous ways how market segments can be identified (Mazanec, 1997; Wedel & Kamakura, 1998). The process by which segmentation takes place consists of three main elements: segmentation, targeting and positioning (Kotler, 1998). Figure 1 gives an overview of these elements
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are
The world is made up of different people, therefore segmentation provides consumers products that fulfil their individual needs. Martin (2011) states that companies have to try different segmentation variables either alone or in combination because often the best choices arise from using various strategies. There are few ways to segment a market, therefore, companies must think innovatively and be willing to re-segment if needed.
To segment markets, we must know about customers and collect the data and use market information in brands. As shown in the following figure, companies normally use the following segmentation bases(variables) for segmenting market: profile (e.g. who are my market and where are they?); behavioral (e.g. where, when, and how does my market behave?); and psychological criteria (e.g. why does my market behave that way?). (Elizabeth C.Thach, 2006)