Below who might require separate products or marketing mixes”

Below
is a report on the the importance of market segmentation, targeting
and positioning for a branded product that is A
close Shave aimed at the
consumer.

Market
Segmentation,
Targeting and positioning
are tools to align with the right product for they play an important
role to get to the right customer. They
allow the marketer to deliver a product within the target audience
needs and wants (Pickton and Broderick, 2005: 373). It is a necessity
to establish the needs and values of the target customers within each
segment, in order for companies to promote their products, brands or
services appropriately.

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In
this context :

Segmentation:
Dividing the market or customers into groups basing on similar
characteristics. Example: demographically, behavior, geographically
etc. Kotler and Armstrong define market segmentation as “dividing a
market into distinct groups of buyers who have distinct needs,
characteristics, or behaviour and who might require separate products
or marketing mixes” (Armstrong and Kotler, 2005: 54).

Targeting:
After segmenting, its is not likely to reach to reach every customer
in the market therefore a target audience is selected. The marketer
distinguishes among a variety of market segments, chooses one or more
of the segments and then develops products and marketing mixes
customised to each segment (Gunter and Furnham, 1992: 2).

Positioning:
Basically it means building a brand image in the mind of the
customer. Where does your product stand in the minds of the customer
and the marketplace.

Why
are Market Segmentation,
Targeting and Positioning important?

Segmentation
splits buyers into groups with similar needs and wants to best
utilize a firm’s finite resources through
buyer based marketing.
Example by Market Segmenting according to age; A Close Shave can
group three age groups (Group A: Age 18-25, Group B: 26-33, Group C:
34-41) these three group will have completely different lifestyles
and behavioral patterns, Group A may find the product desirable
because its a young group with less or no economical obligations,
Group B maybe an insecure group where most men if single want to
appear manly so may not care for putting face cream on and Group C
have economical obligations but may need the product since it does
not require a shave it saves time. Different age groups have
different opinions on the product basing on their buying pattern and
behavior. Attract
the right
customer.
By considering the customers’ attitudes toward a brand or product
the company will get a wide-ranging view of the market. The right
customer knows what he/ she needs specifically and will have the
right attitude toward A
close shave. It
would increase customer delight because B&G Shoprite will
concentrate on a specific target audience.

Reduce
risk in
deciding where, when, how, and to whom a product will be marketed.
The decision of production are risky because with one wrong decision
the product will flop in the market. It is crucial to segment, target
and position the market so as to achieve the best result in the
marketplace.

Increase
marketing efficiency by
directing effort specifically toward the designated segment in a
manner consistent with that segment’s characteristics. When all
efforts are directed to the right customers, it is easier to improve
on all production functions so as to ensure customer satisfaction. It
would also reduce the cost of the company by not marketing A
Close Shave
where it is not required.

Recommendation:

In
order to save A close Shave it is important to align the product with
the right customers and Market Segmentation, Targeting and
Positioning are the correct tools to be used to rescue it. The
product will not only be a success in the market place but it would
draw the right target audience and efficiently use the B
Shoprite resources.

Question
2.
B
Shoprite may consider segmenting the market for A
Close Shave as
shown below:
Demographics
segmentation;
with this a market is identified basing on shared demographic or
personality qualities. With this A close Shave can specifically be
introduced to specific demographic parameters such as age, marital
status, income, occupation and education. Different parameters behave
differently.
Age:
The
consumer’s needs and wants change with age. Therefore some
companies use age and life-cycle segmentation, where age and the
life-cycle determine the marketing approach. Furthermore the age and
life-cycle segmentation are associated with behavioural
characteristics and buying patterns.

Marital
Status: single people have a tendency of purchasing new items due to
the fact that they have no other economic obligations. This is
opposed to married people, who have a large economic obligation and
thereby they prioritize their economy differently.
Income
segmentation divides the market into different income groups. It is
used in automobiles, clothing, cosmetics, financial services and
travel. Many companies within the mentioned categories seek to target
the high-income customers. Others seek to target the customers with a
lower income in order to gain consumer loyalty and lessen the
competitive pressures. However, companies must consider the fact that
the income does not always predict the most suitable customers for a
given product due to the fact that some customers may have other
preferences and prioritize their money different (Kotler and Keller,
2009: 258).

Lifestyles
and psychographics segmentation is an approach that places
emphasis on the shared activities, interests and behaviors of
particular customers. Along with activities, lifestyle segmentation
is driven by characteristics such as shared interests, opinions,
attitudes and values of customers. A fishing bait and tackle shop
would likely target customers based on their similar interests and
attitudes toward fishing, for instance. This approach makes more
sense given widespread demographic traits among fishing and outdoor
enthusiasts.

Geographics
segmentation: One of the simplest and most common segmentation
strategies for small businesses is based on geography. If you have a
broad customer base congregated in a local, regional, national or
international location, it makes sense to invest in geographic
marketing. Size, population density and climate factors are traits of
geographic segmentation, along with region or location. Targeting a
rural market of 10,000 customers is much different than targeting an
urban market of 100,000 customers, for instance.

Behavioralistic
segmentation: With a behavioralistic segmentation strategy, you
target customers based on their interest or experience with your
company or products. With this strategy, your market segments have
shared familiarity with your products. Benefits sought, usage,
loyalty, prospect or customer status are common characteristics. One
of the benefits of this segmentation is it targets a broad market
looking for different benefits, such as economy, performance, luxury
or status. Targeting new prospects is also distinct from targeting
brand-loyal customers.

Question
3
Possible
parameters to A Close Shave be positioned

Market
Positioning

What
is market position? In marketing strategy, market position refers to
the consumer’s perception of a brand or product in relation to
competing brands or products. Market positioning refers to the
process of establishing the image or identity of a brand or product
so that consumers perceive it in a certain way.

For
example, A close shave may position itself as a fresh status symbol.

Positioning
of a A close shave:

The
positioning of a brand or product is a strategic process that
involves marketing the brand or product in a certain way to create
and establish an image or identity within the minds of the consumers
in the target market. Market positioning of a brand or product must
be maintained over the life of the brand or product. Doing this
requires ongoing marketing initiatives intended to reinforce the
target market’s perceptions of the product or brand.

Repositioning
a brand or product means altering its place in the minds of the
consumer, or essentially changing the brand’s or product’s image
or identity. When you are repositioning, or trying to change the
consumers’ perception of a brand or product after it has already
been solidified, may confuse or alienate consumers in the target
market. This is important for A close Shave to give it a new look in
the market since the first strategy flopped.

There
are two broad categories of market position: cost leadership and
differentiation. Cost leadership and differentiation market
positioning strategies are applicable to any business and any
industry. A business can choose to position itself using a cost
leader strategy or a differentiation business strategy.

Cost
Leader Strategy: B
Shoprite using a cost
leader strategy attempts to position itself in the minds of the
consumers as a company that provides products the consumers want at a
price that is lower than competing products available in the
marketplace. Consumers expect basic products with no bells and
whistles from a company using a cost leader strategy. Instead,
consumers just expect the products to meet their needs and nothing
more or less.

Differentiation
Business Strategy: B
Shoprite using a differentiation business strategy attempts to
position itself in the minds of the consumers as a company that
provides unique products that consumers will pay more for because
they cannot find comparable products or product features anywhere
else in the marketplace. Consumers expect more from a differentiated
product and therefore are willing to pay a premium for a
differentiated product. This is true as long as the unique features
of the product add some value to the product that makes it more
valuable to the consumer, whether a functional feature or an aspect
of image or prestige that enhances the perception of the product.

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