Write a report advising the senior managers at Tammy how market segmentation might help improve business prospects. Your report should be designed to help senior management understand the concept of segmentation and describe appropriate segmentation bases with examples of how they might be used in the children’s clothing and footwear market.
It’s evident from the financial results that sales of Tammy are declining and for the last 10 years have been stagnant with practically zero growth. Indeed sales in 2012 was £9 million as compared to sales of around £16 million in 1990. Or in other words approximately 50% loss of revenue over 2 decades without taking into account inflation. If we consider inflation then this loss will be even worse.
Sales figures are pretty disappointing and there is certainly a need for a marketing offensive which will help in lifting sales. It seems that over the past years Tammy has not invested enough in marketing and promotion and this can be the main reason why they have lost marketing share to competitors.
Tammy needs to develop a new marketing strategy which will be based on accepted marketing segmentation practices, used all over the world by companies of all sizes and in almost every industry. Marketing departments have been using marketing segmentation techniques for years and segmentation remains one of the most effective tools in the hand of a marketer.
“Think like a customer”, “put yourself in the shoes of your customer” and other similar phrases are often repeated in business and marketing circles, but sadly few understand and implement them. Marketing segmentation allows a company to develop their marketing plan and product according to their customer’s needs and requirements. But in order for...
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...scuss what measures you would consider in order to promote sales more actively. Write a report discussing the promotional objectives the company might set, and how these might be achieved in terms of choice of targets, messages and media. Provide justification for your suggestions.
Word of Mouth marketing remains as effective as ever and even marketing legends have accepted that there is no better alternative than the old time tested word of mouth marketing. But there are certainly some limitations to this approach and a business cannot achieve their goals by relying solely on word of mouth marketing.
Tammy has relied on obtaining sales through word of mouth recommendations and limited advertising in magazines in the past. But as we can see from financial results this approach has not paid off and the company is in immediate need of a complete marketing overhaul.
First, there was a key fact in the marketing strategy. In 1996, there was a turning point in the area of marketing for NBB when Greg Owsley was hired as the Director. Owsley developed a team tha...
The first step is to (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way (Consumer Psychologist, n.d.). •
Strengths are growing market segment, “health conscious” segment contributing to the rise in the operating income exponentially. However, a 33% of division’s advertising and promotional budget is being consumed for a 24% of total revenue or 14% of division’s operating income. While contribution to operating income is exponential, it is still less than 1/4th of the total divisions operating income.
Recently I watched a T.V. show called The Profit and recognized some similarities from the current Marketing chapter discussed in class. The current episode was about a company called Bentley’s Corner Barkery, which is committed in providing all-natural pet food and treats for their customers. The episode highlighted how Bentley’s Corner Barkery was struggling and not reaching all of their potential customer base because of its marketing structure among other poor managing and financial elements. Before Marcus Lemonis (he is the investor) the company marketing strategy was the quality of product will attract customers. Marcus Lemonis immediately ask for the company’s mission statement and help the owners identify their target customers by segmentation.
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
Segmentation is the process of determining the breakdown of the target market into smaller specific variables that make it easier to evaluate. Gabbott M (2004, p 159) describes the consumer related segmentation variables as being Geodemographic, Psychographic and Behavioural.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
Blazevic, V., Hammedi, W., Garnefeld, I., Rust, R.T., Keiningham, T., Andreassen, T. W., Donthu, N., and Carl, W. (2013) 'Beyond traditional word-of-mouth', Journal of Service Management , 24(3 ), pp. 294-313 [Online]. Available at: www.emeraldinsight.com/1757-5818.htm (Accessed: 10 May 2014).
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).
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Two recommendations for promoting direct-sales through consumer and the business; One is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
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...
It 's no secret that traditional marketing practices have declined and consumers are now more skeptical than ever. Brands have had to find ways of connecting with potential customers in a more authentic way.
Consumers pay millions of dollar for an advertisement campaigns, but word of mouth advertisement is absolutely free and reliable. This type of marketing spread quickly and effectively among consumers. (Jacques Bughin, 2010)