Question1. 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:Demographicssegmentation;with this a market is identified basing on shared demographic orpersonality qualities. With this A close Shave can specifically beintroduced to specific demographic parameters such as age, maritalstatus, income, occupation and education. Different parameters behavedifferently.Age:Theconsumer’s needs and wants change with age. Therefore somecompanies use age and life-cycle segmentation, where age and thelife-cycle determine the marketing approach.
Furthermore the age andlife-cycle segmentation are associated with behaviouralcharacteristics and buying patterns. MaritalStatus: single people have a tendency of purchasing new fashionableitems due to the fact that they have no other economic obligations.This is opposed to married people, who have a large economicobligation and thereby they prioritize their economy differently.Incomesegmentation divides the market into different income groups. It isused in automobiles, clothing, cosmetics, financial services andtravel.
Many companies within the mentioned categories seek to targetthe high-income customers. Others seek to target the customers with alower income in order to gain consumer loyalty and lessen thecompetitive pressures. However, companies must consider the fact thatthe income does not always predict the most suitable customers for agiven product due to the fact that some customers may have otherpreferences and prioritize their money different (Kotler and Keller,2009: 258).