Question behavior. Attract the right customer. By considering the

Question
1.
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 fashionable
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).