Learning
Outcomes
1.
Segmentation. Students can use the
segmentation characteristics to identify and describe market segments
2.
Target Market. Students can identify a
usable market segment to be a target market
3.
Target-market strategy.
Students can determine an appropriate target-market strategy.
4.
Positioning. Students can develop
and interpret a perceptual map.
Directions
·
Thus far you have only been
considering the customers of your product or service as one big group, or a
mass market. More astute marketing breaks down this large group into
smaller market segments of consumers who have like characteristics. For
any given product or service there could be numerous market segments.
However, company resources may only allow a company to pursue one or two
or these market segments, which then become target market(s). Your job
here is to break down the mass market for your product or service into at least
two market segments and then pick one target market you think would have the
most potential for future growth. This target market does not have to be
the one the company would have actually picked, or is currently pursuing, there
is no way for you or your faculty to know based on public information.
So, once again the literature will not give you the ‘right’ answer.
Your brain will help you reason your way through.
·
Think outside your own box.
Chances are good you picked a product with which you are familiar.
That is a good starting point, and you may represent one target market.
But you may represent a target market that is saturated and therefore not
the best target market to pick for the remainder of the semester. So be
sure your second target market is different enough and represents growth
potential.
·
If you did not do a thorough
analysis of the competition in the prior writing assignments, you may need to
go back and figure out the nature of the product or service’s competition.
This will be important when you address the positioning of your product
for your newly identified target market inasmuch as positioning is a
competition-based concept.
·
We understand you are not an
employee of the company and do not have access to the data that you feel will
allow you to discuss the questions to the degree you would like. Take
your best educated and reasoned guesses whenever you need to do so.
·
Otherwise, you do not need to
do any external research for this writing assignment. Your job will be to
critically examine all of the segmentation bases and arrive at your own
description of potential market segments for your product or service.
·
You may want to visithttp://www.segmentationstudyguide.com/understanding-perceptual-maps/a-step-by-step-guide-to-constructing-a-perceptual-map/ for a step-by-step guide on how to draw a
perceptual or positioning map. Remember to label both axes of your
perceptual map. Meanwhile, here is an example of a perceptual map for the
beer market, an excellent example for a highly competitive product.
·
Remember, you have a two-page
limit so be judicious in your responses, do not report anything the company is
or has done. You are now in charge at your company. We (your boss) are only
interested in your thoughts at this point.
·
Prepare your assignment by
answering the following four areas of inquiry related to the learning outcomes
noted above.
1.
1.
Segmentation. Using the various
criteria of the segmentation bases described in the week’s readings and in
Table 4.1, identify at least two distinct market segments for your product or
service. Each market segment description must include at least three (more if needed) of the
characteristics from amongst any of the four bases categories, e.g. one from demographic
variables, one or two from psychographic variables, and one from behavioral
variables, or a similar scheme. Be sure to explain your choices based on
what customer need the product or service offering can fill for each
segment.
2.
Target market. Select one of the
market segments you described in (1) above as the one you believe is or can be
the most profitable for your product or service offering and explain why you
feel they can represent growth for the company. Refer to the six criteria
for an attractive market segment as described in course content under
‘Selecting Target Markets’. Name your target market so you can use this
name throughout all of your remaining writing assignments. Your name
should be descriptive of the segments characteristics like ‘savvy young
shoppers’ or ‘educated baby boomers’, or ‘urban hipsters’, or the like.
The goal is for your faculty member to get a mental image of your target
market for the remainder of the semester.
3.
Target market strategy. Should the company focus all their resources on this new target market
(concentrated marketing) or should they continue to pursue both the new and the
existing target market as well as other market segments (multi-segment
marketing)? Alternatively, is the market so saturated might they be more
successful by focusing solely on an even more narrow market segment, perhaps an
even narrower version (niche marketing) of your selected target market, as
their best chance for growth? What is your reasoning?
4.
Positioning. Draw yourself a
perceptual map as illustrated in the week’s readings or use the websites noted
in the directions. Be sure to pick two criteria that are important to your new
target market for your two axes, perhaps two of the criteria you used in Week 1
in your competitive analysis. Map at least the two major competitors you
noted in Week 1 and add any others that you may have discovered since then.
Describe what the perceptual map is telling you regarding how each
product is perceived in the minds of the new target market you described above.
You may have to make a series of educated guesses for some of the data
points. Ideally, you want to find uncontested space. If your product
overlaps with a competing offering discuss whether or not your product or service
should try for an ‘uncontested’ space on the map and ‘reposition’ itself; or if
it should keep the same position and compete head on with the other product.
(You will have a chance to make changes to the product, the pricing and
the distribution to change the product’s positioning and find uncontested space
in the coming weeks).
Be
sure to follow all of the submission requirements outlined in the syllabus and
provided below again for your easy reference:
•Prepare as a word processed document (such as Microsoft
Word).
•Your assignment should be the equivalent of two
pages of double spaced text, approximately 1/2 page for each of the four
questions.
•Be sure your name, writing assignment number, and
the name of your product or service are on the first page of your writing
assignment.
•Use a simple 12-point font such as Times New Roman.
Use black ink for majority of your work and only use colors if it
enhances your ability to communicate your thoughts.
•If the writing assignment requires external research,
be sure to use footnotes and include a bibliography. You may use MLA or
APA style, or any other college-level style guide. More information about using
a style guide can be found in the ‘s virtual library accessible from your
LEO classroom or at .edu/library.
•Upload your word processed document in your LEO
assignments by the due date in the LEO calendar.
Refer
to the grading rubric associated with the assignments. Be sure to note
that 20% of your grade on this assignment will be based on your grammar,
composition, adherence to the submission requirements, and use of an
appropriate college-level style guide for writing and referencing.
