Belowis a report on the the importance of market segmentation, targetingand positioning for a branded product that is Aclose Shave aimed at theconsumer. MarketSegmentation,Targeting and positioningare tools to align with the right product for they play an importantrole to get to the right customer. Theyallow the marketer to deliver a product within the target audienceneeds and wants (Pickton and Broderick, 2005: 373). It is a necessityto establish the needs and values of the target customers within eachsegment, in order for companies to promote their products, brands orservices appropriately.
Inthis context :Segmentation:Dividing the market or customers into groups basing on similarcharacteristics. Example: demographically, behavior, geographicallyetc. Kotler and Armstrong define market segmentation as “dividing amarket into distinct groups of buyers who have distinct needs,characteristics, or behaviour and who might require separate productsor marketing mixes” (Armstrong and Kotler, 2005: 54). Targeting:After segmenting, its is not likely to reach to reach every customerin the market therefore a target audience is selected. The marketerdistinguishes among a variety of market segments, chooses one or moreof the segments and then develops products and marketing mixescustomised to each segment (Gunter and Furnham, 1992: 2). Positioning:Basically it means building a brand image in the mind of thecustomer. Where does your product stand in the minds of the customerand the marketplace.Whyare Market Segmentation,Targeting and Positioning important?Segmentationsplits buyers into groups with similar needs and wants to bestutilize a firm’s finite resources throughbuyer based marketing.
Example by Market Segmenting according to age; A Close Shave cangroup three age groups (Group A: Age 18-25, Group B: 26-33, Group C:34-41) these three group will have completely different lifestylesand behavioral patterns, Group A may find the product desirablebecause its a young group with less or no economical obligations,Group B maybe an insecure group where most men if single want toappear manly so may not care for putting face cream on and Group Chave economical obligations but may need the product since it doesnot require a shave it saves time. Different age groups havedifferent opinions on the product basing on their buying pattern andbehavior. Attractthe rightcustomer.By considering the customers’ attitudes toward a brand or productthe company will get a wide-ranging view of the market. The rightcustomer knows what he/ she needs specifically and will have theright attitude toward Aclose shave. Itwould increase customer delight because B&G Shoprite willconcentrate on a specific target audience.Reducerisk indeciding where, when, how, and to whom a product will be marketed.
The decision of production are risky because with one wrong decisionthe product will flop in the market. It is crucial to segment, targetand position the market so as to achieve the best result in themarketplace.Increasemarketing efficiency bydirecting effort specifically toward the designated segment in amanner consistent with that segment’s characteristics. When allefforts are directed to the right customers, it is easier to improveon all production functions so as to ensure customer satisfaction.
Itwould also reduce the cost of the company by not marketing AClose Shavewhere it is not required.Recommendation:Inorder to save A close Shave it is important to align the product withthe right customers and Market Segmentation, Targeting andPositioning are the correct tools to be used to rescue it. Theproduct will not only be a success in the market place but it woulddraw the right target audience and efficiently use the BShoprite resources. Question2.BShoprite may consider segmenting the market for AClose Shave asshown below:Demographics Demographics segmentation is a common strategy where you identify market segments based on shared demographic or personality qualities.
Specific characteristics often used in demographics segmentation include age, gender, race, marital status, income, education and occupation. A mobile device tech provider might target a market of male consumers age 18 to 24 who are in college or who have a college degree and a salary ranging from $35,000 to $60,000. Lifestyles and Psychographics 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 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 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. Car companies often use benefits segmentation to target 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.Question3Possibleparameters to A Close Shave be positioned