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How market segmentation,targeting and positioning are important
Outline chapter 7 market segmentation and target marketing
Segmentation marketing fundamentals
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Primark’s market Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015). Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting. (Harris and Schaefer, 2015). The case study gives some hints on Primark’s segmentation and targeting criteria, and the following graph analyses those based the assumption that segments are mainly defined by basic on personal characteristics (demographical, socio-economical, geographical, personality or lifestyle based) and "product-related …show more content…
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47). Product as an element of the marketing mix is at the base of Primark 's marketing strategy, as it is meant to attract customers researching those very actual benefits which only Primark products should be able to provide. In this Primark also has to be careful, shall other companies adapt their products to provide similar benefits the targeted customers may chose other companies ' products, so benefits may also comport risks for Primark as those are not very specific. Place, intended as the firm 's distribution, and pricing are also important element of the marketing mix used by …show more content…
For example, it would include people with certain disabilities, who does not feel comfortable in shops, in the demand for Primark’s wares. (adapted from Sancino, 2015, p.53-55) The availability of the supply itself could impact the demand as well. Since Primark sells by volume and sells standardized models and uses people’s word of mouth as advertisement it is a vital feature that a model is sold in many locations, but how much Primark can supply will be dependent on extra factors as well. The following examples are related to supply factors which may in turn influence demand. • Taxation and tariffs: governments may apply different clothes taxations, making it more difficult to sell in certain location. This in turn will influence the price as a consequence, mining demand in some countries. • Legislation and regulation: Governments may prevent or allow the sale of Primark’s clothes based on product features, like provenance, materials, and so
If we refer to products, people often take them as the things we get from suppliers with a price. Apparently, this is a definition from the perspective of exchanges and does not quite catch the essence of the meaning of product in the marketing discipline. In this regard, Rothschild (2009) offered a probably better definition for products as a bundle of benefits for customers. This definition also offers an important perspective for JB Hi-Fi to understand its products. Because after all, JB Hi-Fi is only a retailer and all its home theatre products are sourced from their manufacturers. If JB Hi-Fi only sees its products as the tangible parts, it may miss out the very important parts of the competition. However, if JB Hi-Fi sees the product as a bundle of benefits it can offer to its customers, the tangible part is only part of this bundle. There is much more for JB Hi-Fi to offer to improve the benefits to customers, and at the same time differentiate itself from its competitors.
The one of main factors is that costumers are swayed by product itself. Where are we buying it? What is the trademark of the product? How much is it? What is the product’s appearance? How about product’s use? And, does the product have a good quality? All of these questions will appear in our mind when we are making decisions. Thus, every consumer will accord to analysis by synthesis product itself, and focus on the product that he or she most favorite. The ways of vendition and the environment of vendition impact the buying behaviors of the customers. The seller makes an attempt to choose the right way and sell the products in the right environment. Consumers will select a safe channel, and according to legal order trade with the marketer. So, having a good channel and place is very important. Usually, a well-known trademark can attract customers to buy the product, because of its influence, history, or another factors. In
In the report different areas are been discussed and first of all the company analysis has been done and that’s shows that Primark (British food plc.) is one of the UK best-selling clothing store chain that’s profits has been increasing every year. And also the Primark (British food plc.) is all about selling fashionable clothes with cheap rates. There stores number is increasing very rapidly and number of the stores is 256. British food plc. (Primark) is not spending any capital or finance on advertisement and that’s a negative sign for them. The product of British food (Primark) is not up to the mark.
It has employed over 50,000 people around the world. It is easy for people to be aware of Primark since the stores are nearly everywhere. Moreover, Primark provides a diverse range of apparels such as menswear, womenswear, children’s wear, etc. It offers high street quality garments at the rock-bottom prices and quality service to people. It can satisfy most of the customers’ needs due to the variety of products and the reasonable price of merchandise. Furthermore, Primark has a huge number of customer base which lead to the profits of the firm has increased in every year. The company’s revenue in 2015 (5,347 million) is around 3 times more than the revenue in 2007 (1,602 million) (Statista, 2016). This implies Primark has reached the climax currently and not easily to be beaten by other competitors. Another strength of Primark is that the company is one of the member of Ethical Trading Initiative (ETI), which focuses on employees’ rights. It can increase Primark’s reputation if people recognize the firm has showed respect to its
We also focus on product life-cycle of the business goods. The stages the product undergoes from manufacturing packaging until the final stage where it focuses on time, cost and revenue generated. In the initial stage of the product, promotion is done to create awareness of the product. In this juncture profits are not a big concern of the company.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Segmentation is a procedure of splitting up the market into different groups of consumers who the same common needs and wants. There are different types of segmentation like geographical segmentation, behavioral segmentation, demographic segmentation, lifestyle segmentation. Lexus divided their vehicles into two categories they four wheel drives and two wheel drives.
The principles of marketing (The Times 100, n.d) are a range of processes concerned with finding out what consumers want, and providing it for them. This involves the ‘4ps’ of marketing; price, place, product and promotion. The product decision in any company involves dealing with goods that should be offered to a group of customers (Jobber & Ellis-Chadwick, 2012). Burberry maintains a product line with great width and scope in which their products fall into two main categories; fashion or continuity. Their fashion products are designed to be responsive to fashion trends and are introduced on a collection to collection basis (Burberry, n.d). Continuity products however have life cycles that are expected to last for a certain time period. Burberry also has 3 primary collections; womenswear, menswear and accessories, with the variety of products they can utilize their product mix greatly. Burberry also has...
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
In general, it can be seen that Burberry organized to capture its value and thus obtain a temporary competitive advantage in the market. If others try to imitate it, they will lose the competitive advantage. In order to avoid this, Burberry can compete with others with differentiation advantage by creating superior products, lunching more features like customization service to satisfy the customer
Analysis of sports clothing industry, including its main features, key market drivers and competition within industry.
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
To explain the difference of market segmentation in two IKEA stores in two different countries. I discuss IKEA in Saudi Arabia and IKEA in China.
For the product, 100PLUS can be identified as an augmented product and potential product. Augmented product which is give rise to differential advantage in features or benefits that can be delivered bow to go beyond