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Who is my target market
Target market
Chapter 1 marketing strategies
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Segmentation, Target Markets, and Positioning. ANALYSIS: Apply segmentation concepts to your product/firm. How can the market for your product/service be segmented (geographically, demographically, psychographically, and buying situations)? Who are the firm’s current customers (i.e., target market)? Make a detailed profile of the current customers using the segmentation variables. What is the product’s current positioning? (include 2 perceptual maps in an appendix - be sure to refer to them and discuss them as well). Also, your maps should be professional – i.e., computer generated.
Evaluate / Critique / Make Recommendations. For example, is the firm’s marketing mix effective for their target market(s)? Are there other target markets
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RadioShack is focused on mostly psychographic and demographic. It focuses on these segments of the market because RadioShack sells various election products. Psychographic and demographic are the most useful ways for RadioShack to segment its market for people that shop at RadioShack have to be psychographic and demographic focused on various elections. In market segmentation the psychographic segmentation is divided in to values, interests and the demographic segmentation into gender, age, income, education.
RadioShack’s target market of current consumer is people both male and female, ages 16-35 that have a high school education and above, live in a medium income home, tech savvy, risk-takers, and avid socializing [1].
RadioShack position in the market is in the middle. This is show in perceptual maps 1 and 2 [2&3]. In perceptual map 1 [3] we have RadioShack vs. major competitors in electronics. They are arranged from low pricing to high pricing and whether the company is low specialty or high specialty. Company included in the perceptual map 1 are Walmart, Target, EBay, Amazon, BestBuy, Apple, and RadioShack. RadioShack is medium priced with low specialty. Leading other companies like Walmart, target, amazon, and eBay to underprice RadioShack and take more profit than RadioShack. Then companies like Apple occupy the specialty portion
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.
finding the right cell-phone with their guidance) to every single customer. Unfortunately, this created numerous negative brand associations from loyal hobbyist customers, who viewed this shift as abandonment, breaking almost hundred-year old brand promises. The most notable negative association-RadioShack was trapped in the 1980s-was exacerbated by its obsession as a mass-marketer, since the brand failed to update strategies to address confusions. A deadly problem emerged: RadioShack's customers were confused, and the brand itself did not understand customers. Bloomberg's pedestrian interview displayed this customer confusion: almost all respondents failed to explain what customer value was provided by the brand. RadioShack's mass-marketing obsession failed to help determine customer needs, as many of their brand measurement efforts focused on measuring brand awareness. Often, the problem was not brand unawareness; customers simply no longer viewed RadioShack as the brand to resolve problems, and loyal customers no longer supported positive subjective brand associations (e.g. innovative, affordability, convenience) about the brand. Disastrously, RadioShack's brand strategies confused customers about basic objective associations, such as
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
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.
Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
Discuss an assessment or evaluation strategy which may be used to help determine the marketing potential of an organization.
A target market for a company consist of demographics, Psychographics, and geodemographics. Walmart's strongest of the three segmentations would be demographic. Walmart’s target markets across the usa consist of the three demographic’s for walmart’s target market would be age, gender, and income. These three demographic segmentations are walmarts strongest customer according to Haley Peterson, on her article “ The average wal-mart shopper” on businessinsider.com where she explains the three demographics for walmarts success on being the worlds largest retailer.
Marketing involves activities to find right people for the business and then gaining their attention and retaining them for life. There are many theories marketers employed to stand their business out of crowd or at least make it visible. To make any business efficiency and effective, it is important to seek the target customer market. There are primarily three main areas to consider while identifying the target market. Those are as follows;
There are three strategies that are generally used for identifying the most profitable target markets and they are as follows
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).
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
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.
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...
How to Position the Product in Relation to Other Products – Where to sell/to whom do you sell? The Right Marketing Mix – Is the product right? , Is it sold in the right market? right places? , At the right price?, Is the product promoted in the right places?