One business function that would address Tiger’s innovation needs is Marketing, specifically marketing segmentation. The formal definition of marketing segmentation is the process of grouping customers in markets with some heterogeneity into smaller, more similar or homogenous segments. (Dibb et al., 2016, p.204) Essentially this means dividing a market of potential customers based on different characteristics, interests and needs which correlates to how similarly they will respond to different marketing strategies. Target markets can be grouped in various ways, for example they could be separated based on demographic variables (Age, Gender, Ethnicity), geographic variables (Country, Region, City), psychographic variables (Personality, Lifestyle, …show more content…
For example, the first change that takes place in Tiger stores is a material possession change which is the items being sold to customers which is an exchange of possession of the goods involved. This can be seen in the quote ‘doesn’t sell large items, only things that can be carried away.’ Wilson, A. (2013). Furthermore, another transformation that takes place within Tiger stores is a psychological customer change, this is essentially staff providing customer service which is show in the quote ‘offer a pleasant experience. Wilson, A. (2013). Wilson, A. (2013) states that Tiger’s customers are ‘impulse shoppers’ and that they ‘come in for a look around but end up filling their baskets’. This shows another change that takes place within Tiger stores which is a customer location change as customers are moving around the store, browsing for items they need/want. One transformation change that doesn’t take place within a physical store is an information location change, this is the research that looks at other potential locations for new stores. Wilson, A. (2013) states that location is ‘critical to success’ as Tiger need a ‘high volume of people to buy low cost goods’ in order to be successful and make a profit, therefore location is
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
(The retail industry main aspect includes small stores that sell products directly to consumers. Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.)
The desired outcomes from reorientation of the company’s business were to reduce risk of increasing prices, decrease costs and increase sales. These desired outcomes have ap...
Roxie Photography is a photography business located in Fort Wayne, Indiana. Roxie Photography specializes in Newborn Photography and Boudoir Photography. The company is new to the Fort Wayne Area, having moved to the area from Guam. Roxie Photography owns a physical location, on East State Boulevard. The company currently offers two services, Boudoir sessions and Newborn sessions. Roxie Photography’s main focus is on the Boudoir service.
This part of the report will highlight the problems within the external environment that affect Marks and Spencer. Before planning and decision making can take place an organisation must be aware of these issues. The key factors that impact upon all organisations are Political, Economic, Social and Technological. These factors are commonly referred to as PEST factors. Political changes like change of government could affect the minimum wage that M&S workers are paid. Economic factors such as inflation could affect the pricing of garments. The Social factors that would need to be taken into account are lifestyle changes and demographics, M&S would need to consider where their target market stood. Technological advances could also affect M&S sales just recently their website has been updated from a corporate site to a new website offering online buying. Globalisation is a huge environmental factor affecting M&S. Globalisation is the increase in cross-border economic, social and technological exchange. For organisations it increases competition and the search for cost advantages.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
2.4 Segmentation: Some of the important bases for segmenting consumer markets are Demographic, Geographic, benefits, Psychographic and Usage rate segmentation. Geographic segmentation is the priority of Zara. It is a global brand and its supply chain management is very much perfect. It helps Zara in getting the latest trends into stores in three weeks’ time, based on consumer preferences. It’s a Spanish brand, so it would be a better option for Zara to open more stores in European countries.
Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice
Another point can be the innovational shopping techniques put forward by the CEO, like the self service checkout stations which tries to provide some form of quality service for the customers.
Nowadays, Segmentation, Targeting and Positioning (STP) is the most used strategic way in Marketing. It is the prime of the available methods that are applied to create marketing models in practice. This model is beneficial when making marketing communication plans because it aids marketers to prioritize ideas and thereby create and advertise unique and appropriate slogans to communicate with various segments this is a segment based strategy rather than a product based strategy. This strategy enables to communicate more appropriate messages to product appealing segments.
Sears has seen many different changes in business and has had to adjust to t...
This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.
By definition, strategic marketing is a firm’s ability to concentrate a limited amount of resource on an opportunity that has deemed to have the highest potential to increase sales, thereby creating a sustainable competitive edge over rivals (Brooksbank & Taylor 2007). Fundamentally, each aspect of marketing has the potential to improve or affect the performance of other marketing facets. Hence, creating a proper coordination of a firm’s activities makes it possible to eliminate unnecessary activities that interfere with efficient profit maximization processes. Strategic marketing explores ways that each of the marketing processes will reinforce each other for the best output. More importantly, strategic marketing makes each department to work
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.