Marketing Study Set 1

Business

Quiz 6 :

Target Markets: Segmentation and Evaluation

Quiz 6 :

Target Markets: Segmentation and Evaluation

Question Type
search
arrow
Cable channels, such as Lifetime and Spike TV, each target a specific market segment. Identify another product marketed to a distinct target market. Describe the target market, and explain how the marketing mix appeals specifically to that group.
Free
Essay
Answer:

Answer:

Market segmentation:
It is the strategy which is used by marketers for dividing the total market in groups that relates to people having similar needs and desires. These groups are then known as target market. For every target market, a different marketing mix may be designed that meet the requirements of the customers of that market segment.
For example, a luxury hybrid car Lexus 660h L that has a base price of more than $100,000 is targeted at high net worth individuals who are conscious about environment pollution. This car is not purchased by mass market.
Another example, customized luxury cars like Mercedes, BMW, Porsche and Aston Martin again targeted at high net worth individuals. These cars have price range in millions of dollars and can only be afforded by individuals like politicians, celebrities and industrialists.

Tags
Choose question tag
close menu
arrow
The car market may be segmented according to income and age. Discuss two ways the market for each of the following products might be segmented. a. Candy bars b. Travel services c. Bicycles d. Cell phones
Free
Essay
Answer:

Answer:

Basis of market segmentation for the following products:
(a)Candy bars: Candy bars can be segmented on the basis of lifestyle and personality attributes of target market segment. For example, candy bar with high nutrient value can be launched for working professionals in addition to the regular one. Also, candy bars with different flavours can also be launched keeping into mind different tastes and preferences of consumers.
(b)Travel services: Travel services can be segmented on the basis of region and income levels of target market segment. For example, different charges can be charged from the customer on the basis of region where the travel service is provided. For example, travel service provided in hilly areas is expensive than in the ground areas. Also, travel services can also be segmented on the basis of income levels like high income individuals may prefer expensive cars than the low income individuals.
(c)Bicycles: Bicycles can be segmented on the basis of gender and income levels of target market segment. For example, different types of bicycle are marketed for males and females. Also, more advanced bicycle is offered for people having higher level of incomes.
(d)Cell phones: Cell phones can be segmented on the basis of region and income levels of target market segment. For example, lower end phones are targeted at emerging markets like India and China. Whereas higher end phones are designed keeping in mind developed markets like U.S. and Europe.

Tags
Choose question tag
close menu
arrow
Is There a Trek Bicycle for Everybody? Trek Bicycle, founded in 1976, gets a marketing boost whenever high-profile professional racers speed off on their Trek bikes or world-class cyclists power through dirt bike races. Based in Waterloo, Wisconsin, Trek is North America's largest bicycle manufacturer, with more than $800 million in annual sales and a worldwide network of 1,000 dealers. Knowing it can't be all things to all cyclists, Trek focuses its marketing efforts on satisfying the needs of serious cyclists seeking top-quality, high-performance bicycles for athletic training and competition, recreation, or commuting. For example, Trek has found that the lifestyles and behavior of consumers who like mountain biking are distinctly different from those of consumers who ride in city streets. Even among mountain bikers, some consumers prefer to feel the rough terrain under their wheels, while others want a smoother ride. Similarly, some urban riders are interested in style, while others care about a bike's environmental impact. Professional athletes want the very best performance, whether they're competing in a fast-paced triathlon or the grueling Tour de France. Targeting the segments it can satisfy most effectively, Trek now offers two separate lines of mountain bikes, "hardtails" for feeling the ride and "full-suspension" for comfort. For urban riders, it markets seven models of pedal-power bikes and five bikes equipped with electric motors. For consumers who wheel around on bike paths or take a spin on city streets, Trek offers a wide variety of options, including one tandem model. The company's triathlon bicycles are designed with aerodynamics in mind, to help speed cyclists on their way to victory or through a high-powered workout. Because one size does not fit all cyclists, Trek also designs bikes specifically for women. In addition, customers can design and equip their own bikes online using Trek's Project One configuration tool. To ensure proper fi t, customers must visit a local dealer to be measured before their bikes are manufactured and delivered. Trek's choices of product names reflect the interests of each targeted segment. For example, the Madone product line, for dedicated athletes, is named for Col de la Madone, a French mountain where Lance Armstrong has famously tested his cycling strength. Some of the commuter models are named after cities where cyclists can be seen pedaling along downtown, such as the Portland (Oregon) and the Soho (New York). Prices for Trek's high-end Madone models can top $8,000, depending on exact specifications and customizing touches. The urban bikes range in price from $500 to more than $1,000. Many of its children's bicycles are priced above $200. These are well-made bicycles for people who want advanced engineering, stylish looks, and a great riding experience-and are willing to pay for it. Just as Trek tailors its bikes to the needs of each customer group, it also tailors its promotional efforts. These include targeted advertising, training programs to help cyclists build their skills, and product demonstrations at parks and sporting events. Trek uses Facebook, blogs, Twitter, online videos, and e-mail newsletters to stay in touch with customers, answer questions, and gather feedback. Supporting charitable groups such as the Lance Armstrong Foundation and the Breast Cancer Research Foundation helps the company show its commitment to social responsibility. Trek also funds DreamBikes, a nonprofit organization that recycles used bikes and trains teenagers in repair and retail sales techniques. DreamBikes asks for donations of bicycles that are unwanted or in disrepair and hires high school students to refurbish and resell the bikes, which are priced for affordability. Currently, DreamBikes has two stores in Wisconsin, with more in the planning stage. Trek started with the mission of building the world's best bicycle. Today, it markets the bicycle as a way to be fi t, reduce traffic, and make the world a greener place. Its Eco Design bicycles incorporate environmentally friendly materials and can be disassembled to recycle the parts at the end of their useful lives. The company practices what it preaches about environmental issues, using renewable power to run its manufacturing plant and providing convenient parking for employees who bicycle to work. Green targeting helps Trek attract like-minded customers as well as employees. Employees-cycling enthusiasts, like their customers- often come up with new product ideas and enjoy testing new products along the way. Where will targeting take Trek next? Is Trek using an undifferentiated, concentrated, or differentiated strategy for targeting? How do you know?
Free
Essay
Answer:

Answer:

Trek uses undifferentiated marketing strategy, in which the target customer is from almost every segment. In other words, undifferentiated marketing strategies ignore segment marketing and target each and every group of customers.
It manufactured bicycles by keeping in mind the below category of people:
• mountain biking
• stylist bicycle for urban population
• bicycle for professionals
• shock absorber bicycle for riders
• bicycle for women
• bicycle for children
• cheap bicycle for rural population
From the above different categories of people, it is clear that they didn't focussed on only a single targeted group. It gives the proof that they follow the undifferentiated marketing strategy to cover all customers groups irrespective of the gender as well.

Tags
Choose question tag
close menu
arrow
Is There a Trek Bicycle for Everybody? Trek Bicycle, founded in 1976, gets a marketing boost whenever high-profile professional racers speed off on their Trek bikes or world-class cyclists power through dirt bike races. Based in Waterloo, Wisconsin, Trek is North America's largest bicycle manufacturer, with more than $800 million in annual sales and a worldwide network of 1,000 dealers. Knowing it can't be all things to all cyclists, Trek focuses its marketing efforts on satisfying the needs of serious cyclists seeking top-quality, high-performance bicycles for athletic training and competition, recreation, or commuting. For example, Trek has found that the lifestyles and behavior of consumers who like mountain biking are distinctly different from those of consumers who ride in city streets. Even among mountain bikers, some consumers prefer to feel the rough terrain under their wheels, while others want a smoother ride. Similarly, some urban riders are interested in style, while others care about a bike's environmental impact. Professional athletes want the very best performance, whether they're competing in a fast-paced triathlon or the grueling Tour de France. Targeting the segments it can satisfy most effectively, Trek now offers two separate lines of mountain bikes, "hardtails" for feeling the ride and "full-suspension" for comfort. For urban riders, it markets seven models of pedal-power bikes and five bikes equipped with electric motors. For consumers who wheel around on bike paths or take a spin on city streets, Trek offers a wide variety of options, including one tandem model. The company's triathlon bicycles are designed with aerodynamics in mind, to help speed cyclists on their way to victory or through a high-powered workout. Because one size does not fit all cyclists, Trek also designs bikes specifically for women. In addition, customers can design and equip their own bikes online using Trek's Project One configuration tool. To ensure proper fi t, customers must visit a local dealer to be measured before their bikes are manufactured and delivered. Trek's choices of product names reflect the interests of each targeted segment. For example, the Madone product line, for dedicated athletes, is named for Col de la Madone, a French mountain where Lance Armstrong has famously tested his cycling strength. Some of the commuter models are named after cities where cyclists can be seen pedaling along downtown, such as the Portland (Oregon) and the Soho (New York). Prices for Trek's high-end Madone models can top $8,000, depending on exact specifications and customizing touches. The urban bikes range in price from $500 to more than $1,000. Many of its children's bicycles are priced above $200. These are well-made bicycles for people who want advanced engineering, stylish looks, and a great riding experience-and are willing to pay for it. Just as Trek tailors its bikes to the needs of each customer group, it also tailors its promotional efforts. These include targeted advertising, training programs to help cyclists build their skills, and product demonstrations at parks and sporting events. Trek uses Facebook, blogs, Twitter, online videos, and e-mail newsletters to stay in touch with customers, answer questions, and gather feedback. Supporting charitable groups such as the Lance Armstrong Foundation and the Breast Cancer Research Foundation helps the company show its commitment to social responsibility. Trek also funds DreamBikes, a nonprofit organization that recycles used bikes and trains teenagers in repair and retail sales techniques. DreamBikes asks for donations of bicycles that are unwanted or in disrepair and hires high school students to refurbish and resell the bikes, which are priced for affordability. Currently, DreamBikes has two stores in Wisconsin, with more in the planning stage. Trek started with the mission of building the world's best bicycle. Today, it markets the bicycle as a way to be fi t, reduce traffic, and make the world a greener place. Its Eco Design bicycles incorporate environmentally friendly materials and can be disassembled to recycle the parts at the end of their useful lives. The company practices what it preaches about environmental issues, using renewable power to run its manufacturing plant and providing convenient parking for employees who bicycle to work. Green targeting helps Trek attract like-minded customers as well as employees. Employees-cycling enthusiasts, like their customers- often come up with new product ideas and enjoy testing new products along the way. Where will targeting take Trek next? Identify the segmentation variables that Trek is applying to consumer markets. What additional variables would you suggest that it apply, and why?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Marriott: Getting Down to Business with Business Travelers Imagine marketing more than 3,600 hotels and resorts under 18 brands in 71 countries. That's the challenge facing Marriott, a multinational marketer that provides lodging services to millions of customers every day. The company, founded by J. Willard Marriott in 1927, started with a single root-beer stand and the "spirit to serve." Today it rings up $12 billion in global sales from guest room revenue, meals, meeting and special-event revenue, and other services. Each of Marriott's brands has its own positioning. The flagship Marriott brand, for example, stands for full service. Its properties have restaurants, meeting rooms, fitness centers, and other facilities. The JW Marriott brand is more upscale, and the Ritz- Carlton brand is known for top-quality service. Marriott's newest hotel brand is Edition, a chain of stylish, luxury hotels. TownePlace Suites are mid-priced suite hotels for customers who plan an extended stay away from home. Fairfield Inn Suites are for businesspeople and vacationers seeking value-priced accommodations. Sluggish economic conditions have only intensified rivalry within the hyper-competitive hotel industry. Major hotel companies such as Hilton, Hyatt, InterContinental, and Starwood all offer a wide range of hotel and resort brands for different customers' needs and tastes. In addition, local hotels and regional chains compete on the basis of location, ambience, price, amenities, and other elements. To compete effectively in this pressured environment, Marriott is relying on extensive marketing research, expert segmentation, and careful targeting. Focus on the Customer What exactly do hotel customers want? Marriott uses a variety of research techniques to find out about customer needs and behavior, including focus groups, online surveys, and in-room questionnaires. For example, when it conducted focus groups with customers who had stayed at its Marriott and Renaissance properties, it discovered some interesting differences. Renaissance customers said they like to open the curtains and look out the window when they first enter their rooms. In contrast, Marriott guests said they get unpacked quickly and get right to work in their rooms. "That's when we started making connections about the individual personalities that gravitate toward the Marriott brand," says the vice president of marketing strategy. With this research in hand, marketers for the Marriott hotel brand targeted a segment they call "achievers," business travelers who feel driven to get a lot done in a short time. They created an advertising campaign to communicate that "Marriott is about productivity and performance," according to one marketing executive. The print and online ads featured interviews with six real customers, who discussed their drive to accomplish personal and professional goals. When Marriott looked at visitors who prefer SpringHill Suites, one of its suite hotel brands, it found a slightly different profile. These are businesspeople who travel often and see a suite hotel as a place to spread out, feel refreshed, and take a break from the stress of being on the road. These customers are also heavy users of technology, especially mobile communication devices such as smartphones. In reaching out to this target market, Marriott uses mobile marketing as well as traditional media to get its message across. It invites business travelers to download its iPhone app, for example, and runs ads designed especially for viewing on smartphone screens. Customers can click on the mobile ad to check availability online or to speak with the reservations department. One of the newer brands, Marriott Executive Apartments, combines the spacious comfort of an upscale apartment with the elegance of a luxury hotel. This brand targets affluent business and professional travelers, and their families, who plan to be in a city for several weeks or even longer. Ranging in size from a studio to three bedrooms, these accommodations have an upscale, residential ambiance and offer extras such as room service and an on-site café. More Business from Business Customers Marriott also targets companies that need hotel space to hold meetings and seminars. In most cases, these companies bring in attendees from outside the immediate area, which means Marriott can fill more guest rooms during meetings. Meetings usually involve additional purchases, such as snacks or meals, another profitable reason to target businesses. Sales reps at major Marriott properties are ready to help companies plan employee workshops, supplier and distributor events, and other meetings for a handful to a ballroom full of people. Studying the needs and buying patterns of companies that hold business meetings, Marriott's marketers have found that a growing number are interested in videoconferencing and other high-tech extras. To appeal to this segment, Marriott has equipped many of its meeting rooms with the latest in recording and communications technology. Because planning and managing a business meeting of any size can be a complicated process, Marriott offers online special tools for one-stop assistance. Meeting planners can log on to view photos and floor plans of different meeting rooms, reserve space, and book hotel rooms for individual attendees. They can also use Marriott's web-based calculators to determine how large a meeting space they'll need and estimate costs. Downloadable checklists guide companies through every step, from selecting a site to promoting their meetings to attendees. Marriott understands that when a business meeting goes smoothly, the company is more likely to pick a Marriott meeting place next time around. Targeting Green Travelers The segment of consumers and business travelers who care about the environment is sizable these days, and Marriott wants its share of this growing market. The company has developed prototype green hotels for several of its brands, designing the public space and guest rooms with an eye toward conserving both water and energy. Marriott will build hundreds of these green hotels during the next decade. Thanks to the company's emphasis on saving power, 275 of its hotels already qualify for the U.S. Environmental Protection Agency's Energy Star designation. Marriott is also going green by working with suppliers that operate in environmentally friendly ways. It provides pads made from recycled paper for attendees of business meetings held at its properties, for example, and buys key cards made from recycled plastic. Even the pillows in guest rooms are made from recycled plastic bottles. Getting the Database Details Right Marriott set up a central database to capture details such as how long customers stay and what they purchase when they stay at any of its hotels or resorts. It also stores demographic data and tracks individual preferences so it can better serve customers. By analyzing the information in this huge database, Marriott discovered that many of its customers visit more than one of its brands. Therefore, the company created sophisticated statistical models to target customers for future marketing offers based on their history with Marriott. In one campaign, for instance, Marriott sent out 3 million e-mail messages customized according to each recipient's unique history with the hotel chain. Because of its database capabilities, Marriott was able to track whether recipients returned to one of its properties after this campaign- and actual sales results exceeded corporate expectations. This database technology has paid for itself many times over with improved targeting efficiency and higher response rates. Watch for Marriott to continue its expansion into new markets and new brands with marketing initiatives targeting vacationers, business travelers, and meeting planners. As Marriott builds more green hotels, should it reposition its hotel brands as being environmentally friendly? Why or why not?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What is a market? What are the requirements for a market?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Generally, marketers use one of three basic targeting strategies to focus on a target market: undifferentiated, concentrated, or differentiated. Locate an article that discusses the target market for a specific product. Describe the target market, and explain the targeting strategy used to reach that target market.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Marriott: Getting Down to Business with Business Travelers Imagine marketing more than 3,600 hotels and resorts under 18 brands in 71 countries. That's the challenge facing Marriott, a multinational marketer that provides lodging services to millions of customers every day. The company, founded by J. Willard Marriott in 1927, started with a single root-beer stand and the "spirit to serve." Today it rings up $12 billion in global sales from guest room revenue, meals, meeting and special-event revenue, and other services. Each of Marriott's brands has its own positioning. The flagship Marriott brand, for example, stands for full service. Its properties have restaurants, meeting rooms, fitness centers, and other facilities. The JW Marriott brand is more upscale, and the Ritz- Carlton brand is known for top-quality service. Marriott's newest hotel brand is Edition, a chain of stylish, luxury hotels. TownePlace Suites are mid-priced suite hotels for customers who plan an extended stay away from home. Fairfield Inn Suites are for businesspeople and vacationers seeking value-priced accommodations. Sluggish economic conditions have only intensified rivalry within the hyper-competitive hotel industry. Major hotel companies such as Hilton, Hyatt, InterContinental, and Starwood all offer a wide range of hotel and resort brands for different customers' needs and tastes. In addition, local hotels and regional chains compete on the basis of location, ambience, price, amenities, and other elements. To compete effectively in this pressured environment, Marriott is relying on extensive marketing research, expert segmentation, and careful targeting. Focus on the Customer What exactly do hotel customers want? Marriott uses a variety of research techniques to find out about customer needs and behavior, including focus groups, online surveys, and in-room questionnaires. For example, when it conducted focus groups with customers who had stayed at its Marriott and Renaissance properties, it discovered some interesting differences. Renaissance customers said they like to open the curtains and look out the window when they first enter their rooms. In contrast, Marriott guests said they get unpacked quickly and get right to work in their rooms. "That's when we started making connections about the individual personalities that gravitate toward the Marriott brand," says the vice president of marketing strategy. With this research in hand, marketers for the Marriott hotel brand targeted a segment they call "achievers," business travelers who feel driven to get a lot done in a short time. They created an advertising campaign to communicate that "Marriott is about productivity and performance," according to one marketing executive. The print and online ads featured interviews with six real customers, who discussed their drive to accomplish personal and professional goals. When Marriott looked at visitors who prefer SpringHill Suites, one of its suite hotel brands, it found a slightly different profile. These are businesspeople who travel often and see a suite hotel as a place to spread out, feel refreshed, and take a break from the stress of being on the road. These customers are also heavy users of technology, especially mobile communication devices such as smartphones. In reaching out to this target market, Marriott uses mobile marketing as well as traditional media to get its message across. It invites business travelers to download its iPhone app, for example, and runs ads designed especially for viewing on smartphone screens. Customers can click on the mobile ad to check availability online or to speak with the reservations department. One of the newer brands, Marriott Executive Apartments, combines the spacious comfort of an upscale apartment with the elegance of a luxury hotel. This brand targets affluent business and professional travelers, and their families, who plan to be in a city for several weeks or even longer. Ranging in size from a studio to three bedrooms, these accommodations have an upscale, residential ambiance and offer extras such as room service and an on-site café. More Business from Business Customers Marriott also targets companies that need hotel space to hold meetings and seminars. In most cases, these companies bring in attendees from outside the immediate area, which means Marriott can fill more guest rooms during meetings. Meetings usually involve additional purchases, such as snacks or meals, another profitable reason to target businesses. Sales reps at major Marriott properties are ready to help companies plan employee workshops, supplier and distributor events, and other meetings for a handful to a ballroom full of people. Studying the needs and buying patterns of companies that hold business meetings, Marriott's marketers have found that a growing number are interested in videoconferencing and other high-tech extras. To appeal to this segment, Marriott has equipped many of its meeting rooms with the latest in recording and communications technology. Because planning and managing a business meeting of any size can be a complicated process, Marriott offers online special tools for one-stop assistance. Meeting planners can log on to view photos and floor plans of different meeting rooms, reserve space, and book hotel rooms for individual attendees. They can also use Marriott's web-based calculators to determine how large a meeting space they'll need and estimate costs. Downloadable checklists guide companies through every step, from selecting a site to promoting their meetings to attendees. Marriott understands that when a business meeting goes smoothly, the company is more likely to pick a Marriott meeting place next time around. Targeting Green Travelers The segment of consumers and business travelers who care about the environment is sizable these days, and Marriott wants its share of this growing market. The company has developed prototype green hotels for several of its brands, designing the public space and guest rooms with an eye toward conserving both water and energy. Marriott will build hundreds of these green hotels during the next decade. Thanks to the company's emphasis on saving power, 275 of its hotels already qualify for the U.S. Environmental Protection Agency's Energy Star designation. Marriott is also going green by working with suppliers that operate in environmentally friendly ways. It provides pads made from recycled paper for attendees of business meetings held at its properties, for example, and buys key cards made from recycled plastic. Even the pillows in guest rooms are made from recycled plastic bottles. Getting the Database Details Right Marriott set up a central database to capture details such as how long customers stay and what they purchase when they stay at any of its hotels or resorts. It also stores demographic data and tracks individual preferences so it can better serve customers. By analyzing the information in this huge database, Marriott discovered that many of its customers visit more than one of its brands. Therefore, the company created sophisticated statistical models to target customers for future marketing offers based on their history with Marriott. In one campaign, for instance, Marriott sent out 3 million e-mail messages customized according to each recipient's unique history with the hotel chain. Because of its database capabilities, Marriott was able to track whether recipients returned to one of its properties after this campaign- and actual sales results exceeded corporate expectations. This database technology has paid for itself many times over with improved targeting efficiency and higher response rates. Watch for Marriott to continue its expansion into new markets and new brands with marketing initiatives targeting vacationers, business travelers, and meeting planners. Which of the three targeting strategies is Marriott using? Explain your answer.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
If you were using a time series analysis to forecast sales for your company for the next year, how would you use the following sets of sales figures? img img c. In 2010, sales increased 21.2 percent. In 2011, sales increased 18.8 percent. New stores were opened in 2010 and 2011.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Identifying and analyzing a target market is a major component of formulating a marketing strategy. A clear understanding and explanation of a product's target market is crucial to developing a useful marketing plan. References to various dimensions of a target market are likely to appear in several locations in a marketing plan. To assist you in understanding how information in this chapter relates to the creation of your marketing plan, focus on the following considerations: Discuss how your product should be positioned in the minds of customers in the target market relative to the product positions of competitors. The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Raleigh Wheels Out Steel Bicycle Marketing From its 19th-century roots as a British bicycle company, Raleigh has developed a worldwide reputation for marketing sturdy, comfortable, steel-frame bicycles. The firm, named for the street in Nottingham, England, where it was originally located, was a trendsetter in designing and manufacturing bicycles. When Raleigh introduced steel-frame bicycles equipped with three-speed gear hubs in 1903, it revolutionized the industry and set off a never-ending race to improve the product's technology. In the pre-auto era, its bicycles became a two-wheeled status symbol for British consumers, and the brand maintained its cachet for decades. Although Raleigh's chopper-style bicycles were hugely popular in the 1970s, international competition and changing consumer tastes have taken a toll during the past few decades. Now Raleigh markets a wide variety of bicycles to consumers in Europe, Canada, and the United States, focusing not just on performance but also styling. Its U.S. division, based in Kent, Washington, has been researching new bicycles for contemporary consumers and developing models that are lighter, faster, and better. Inspired by the European lifestyle and tradition of getting around on bicycles, and its long history in the business, Raleigh is looking to reinvigorate sales and capture a larger share of the $6 billion U.S. bicycle market. Raleigh's U.S. marketers have been observing the "messenger market," customers who ride bicycles through downtown streets to deliver documents and small packages to businesses and individuals. They have also noted that many everyday bicycle riders dress casually, in T-shirts and jeans, rather than in special racing outfits designed for speed. Targeting consumers who enjoy riding bicycles as a lifestyle, Raleigh's marketers are focusing on this segment's specific needs and preferences as they develop, price, promote, and distribute new models. In recent years, Raleigh's marketers have stepped up the practice of bringing demonstration fleets to public places where potential buyers can hop on one of the company's bicycles and pedal for a few minutes. The idea is to allow consumers who enjoy bicycling to actually experience the fun feeling of riding a Raleigh. The marketers are also fanning out to visit bicycle races and meet bicyclists in cities and towns across America, encouraging discussions about Raleigh and about bicycling in general and seeking feedback about particular Raleigh products. Listening to consumers, Raleigh's marketers recognized that many had misperceptions about the weight of steel-frame bicycles. Although steel can be quite heavy, Raleigh's bicycles are solid yet light, nimble, and easy to steer. Those who have been on bicycles with steel frames praise the quality of the ride, saying that steel "has a soul," according to market research. To stay in touch with its target market, Raleigh is increasingly active in social media. Ten thousand fans visit its Facebook page to see the latest product concepts and post their own photos and comments about Raleigh bicycles. It also uses Twitter to keep customers informed and answer questions about its bicycles and upcoming demonstration events. The company's main blog communicates the latest news about everything from frame design and new bike colors under consideration to product awards and racing activities. It has a separate blog about both the fun and the challenges of commuting on bicycle, a topic in which its customers are intensely interested because so many do exactly that. By listening to customers and showing that it understands the daily life of its target market, Raleigh is wheeling toward higher sales in a highly competitive marketplace. Raleigh sells exclusively through retail dealers, not directly to consumers. How does this affect its ability to segment the bicycle market using geographic variables?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Identifying and analyzing a target market is a major component of formulating a marketing strategy. A clear understanding and explanation of a product's target market is crucial to developing a useful marketing plan. References to various dimensions of a target market are likely to appear in several locations in a marketing plan. To assist you in understanding how information in this chapter relates to the creation of your marketing plan, focus on the following considerations: What type of targeting strategy is being used for your product? Should a different targeting strategy be employed? The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Raleigh Wheels Out Steel Bicycle Marketing From its 19th-century roots as a British bicycle company, Raleigh has developed a worldwide reputation for marketing sturdy, comfortable, steel-frame bicycles. The firm, named for the street in Nottingham, England, where it was originally located, was a trendsetter in designing and manufacturing bicycles. When Raleigh introduced steel-frame bicycles equipped with three-speed gear hubs in 1903, it revolutionized the industry and set off a never-ending race to improve the product's technology. In the pre-auto era, its bicycles became a two-wheeled status symbol for British consumers, and the brand maintained its cachet for decades. Although Raleigh's chopper-style bicycles were hugely popular in the 1970s, international competition and changing consumer tastes have taken a toll during the past few decades. Now Raleigh markets a wide variety of bicycles to consumers in Europe, Canada, and the United States, focusing not just on performance but also styling. Its U.S. division, based in Kent, Washington, has been researching new bicycles for contemporary consumers and developing models that are lighter, faster, and better. Inspired by the European lifestyle and tradition of getting around on bicycles, and its long history in the business, Raleigh is looking to reinvigorate sales and capture a larger share of the $6 billion U.S. bicycle market. Raleigh's U.S. marketers have been observing the "messenger market," customers who ride bicycles through downtown streets to deliver documents and small packages to businesses and individuals. They have also noted that many everyday bicycle riders dress casually, in T-shirts and jeans, rather than in special racing outfits designed for speed. Targeting consumers who enjoy riding bicycles as a lifestyle, Raleigh's marketers are focusing on this segment's specific needs and preferences as they develop, price, promote, and distribute new models. In recent years, Raleigh's marketers have stepped up the practice of bringing demonstration fleets to public places where potential buyers can hop on one of the company's bicycles and pedal for a few minutes. The idea is to allow consumers who enjoy bicycling to actually experience the fun feeling of riding a Raleigh. The marketers are also fanning out to visit bicycle races and meet bicyclists in cities and towns across America, encouraging discussions about Raleigh and about bicycling in general and seeking feedback about particular Raleigh products. Listening to consumers, Raleigh's marketers recognized that many had misperceptions about the weight of steel-frame bicycles. Although steel can be quite heavy, Raleigh's bicycles are solid yet light, nimble, and easy to steer. Those who have been on bicycles with steel frames praise the quality of the ride, saying that steel "has a soul," according to market research. To stay in touch with its target market, Raleigh is increasingly active in social media. Ten thousand fans visit its Facebook page to see the latest product concepts and post their own photos and comments about Raleigh bicycles. It also uses Twitter to keep customers informed and answer questions about its bicycles and upcoming demonstration events. The company's main blog communicates the latest news about everything from frame design and new bike colors under consideration to product awards and racing activities. It has a separate blog about both the fun and the challenges of commuting on bicycle, a topic in which its customers are intensely interested because so many do exactly that. By listening to customers and showing that it understands the daily life of its target market, Raleigh is wheeling toward higher sales in a highly competitive marketplace. How would you describe Raleigh's positioning for its steel-frame bicycles?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Identifying and analyzing a target market is a major component of formulating a marketing strategy. A clear understanding and explanation of a product's target market is crucial to developing a useful marketing plan. References to various dimensions of a target market are likely to appear in several locations in a marketing plan. To assist you in understanding how information in this chapter relates to the creation of your marketing plan, focus on the following considerations: Select and justify the segmentation variables that are most appropriate for segmenting the market for your product. If your product is a consumer product, use Figure 6.3 for ideas regarding the most appropriate segmentation variables. If your marketing plan focuses on a business product, review the information in the section entitled "Variables for Segmenting Business Markets." img The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Raleigh Wheels Out Steel Bicycle Marketing From its 19th-century roots as a British bicycle company, Raleigh has developed a worldwide reputation for marketing sturdy, comfortable, steel-frame bicycles. The firm, named for the street in Nottingham, England, where it was originally located, was a trendsetter in designing and manufacturing bicycles. When Raleigh introduced steel-frame bicycles equipped with three-speed gear hubs in 1903, it revolutionized the industry and set off a never-ending race to improve the product's technology. In the pre-auto era, its bicycles became a two-wheeled status symbol for British consumers, and the brand maintained its cachet for decades. Although Raleigh's chopper-style bicycles were hugely popular in the 1970s, international competition and changing consumer tastes have taken a toll during the past few decades. Now Raleigh markets a wide variety of bicycles to consumers in Europe, Canada, and the United States, focusing not just on performance but also styling. Its U.S. division, based in Kent, Washington, has been researching new bicycles for contemporary consumers and developing models that are lighter, faster, and better. Inspired by the European lifestyle and tradition of getting around on bicycles, and its long history in the business, Raleigh is looking to reinvigorate sales and capture a larger share of the $6 billion U.S. bicycle market. Raleigh's U.S. marketers have been observing the "messenger market," customers who ride bicycles through downtown streets to deliver documents and small packages to businesses and individuals. They have also noted that many everyday bicycle riders dress casually, in T-shirts and jeans, rather than in special racing outfits designed for speed. Targeting consumers who enjoy riding bicycles as a lifestyle, Raleigh's marketers are focusing on this segment's specific needs and preferences as they develop, price, promote, and distribute new models. In recent years, Raleigh's marketers have stepped up the practice of bringing demonstration fleets to public places where potential buyers can hop on one of the company's bicycles and pedal for a few minutes. The idea is to allow consumers who enjoy bicycling to actually experience the fun feeling of riding a Raleigh. The marketers are also fanning out to visit bicycle races and meet bicyclists in cities and towns across America, encouraging discussions about Raleigh and about bicycling in general and seeking feedback about particular Raleigh products. Listening to consumers, Raleigh's marketers recognized that many had misperceptions about the weight of steel-frame bicycles. Although steel can be quite heavy, Raleigh's bicycles are solid yet light, nimble, and easy to steer. Those who have been on bicycles with steel frames praise the quality of the ride, saying that steel "has a soul," according to market research. To stay in touch with its target market, Raleigh is increasingly active in social media. Ten thousand fans visit its Facebook page to see the latest product concepts and post their own photos and comments about Raleigh bicycles. It also uses Twitter to keep customers informed and answer questions about its bicycles and upcoming demonstration events. The company's main blog communicates the latest news about everything from frame design and new bike colors under consideration to product awards and racing activities. It has a separate blog about both the fun and the challenges of commuting on bicycle, a topic in which its customers are intensely interested because so many do exactly that. By listening to customers and showing that it understands the daily life of its target market, Raleigh is wheeling toward higher sales in a highly competitive marketplace. Of the four categories of variables, which is most important to Raleigh's segmentation strategy, and why?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
In your local area, identify a group of people with unsatisfied product needs who represent a market. Could this market be reached by a business organization? Why or why not?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Marriott: Getting Down to Business with Business Travelers Imagine marketing more than 3,600 hotels and resorts under 18 brands in 71 countries. That's the challenge facing Marriott, a multinational marketer that provides lodging services to millions of customers every day. The company, founded by J. Willard Marriott in 1927, started with a single root-beer stand and the "spirit to serve." Today it rings up $12 billion in global sales from guest room revenue, meals, meeting and special-event revenue, and other services. Each of Marriott's brands has its own positioning. The flagship Marriott brand, for example, stands for full service. Its properties have restaurants, meeting rooms, fitness centers, and other facilities. The JW Marriott brand is more upscale, and the Ritz- Carlton brand is known for top-quality service. Marriott's newest hotel brand is Edition, a chain of stylish, luxury hotels. TownePlace Suites are mid-priced suite hotels for customers who plan an extended stay away from home. Fairfield Inn Suites are for businesspeople and vacationers seeking value-priced accommodations. Sluggish economic conditions have only intensified rivalry within the hyper-competitive hotel industry. Major hotel companies such as Hilton, Hyatt, InterContinental, and Starwood all offer a wide range of hotel and resort brands for different customers' needs and tastes. In addition, local hotels and regional chains compete on the basis of location, ambience, price, amenities, and other elements. To compete effectively in this pressured environment, Marriott is relying on extensive marketing research, expert segmentation, and careful targeting. Focus on the Customer What exactly do hotel customers want? Marriott uses a variety of research techniques to find out about customer needs and behavior, including focus groups, online surveys, and in-room questionnaires. For example, when it conducted focus groups with customers who had stayed at its Marriott and Renaissance properties, it discovered some interesting differences. Renaissance customers said they like to open the curtains and look out the window when they first enter their rooms. In contrast, Marriott guests said they get unpacked quickly and get right to work in their rooms. "That's when we started making connections about the individual personalities that gravitate toward the Marriott brand," says the vice president of marketing strategy. With this research in hand, marketers for the Marriott hotel brand targeted a segment they call "achievers," business travelers who feel driven to get a lot done in a short time. They created an advertising campaign to communicate that "Marriott is about productivity and performance," according to one marketing executive. The print and online ads featured interviews with six real customers, who discussed their drive to accomplish personal and professional goals. When Marriott looked at visitors who prefer SpringHill Suites, one of its suite hotel brands, it found a slightly different profile. These are businesspeople who travel often and see a suite hotel as a place to spread out, feel refreshed, and take a break from the stress of being on the road. These customers are also heavy users of technology, especially mobile communication devices such as smartphones. In reaching out to this target market, Marriott uses mobile marketing as well as traditional media to get its message across. It invites business travelers to download its iPhone app, for example, and runs ads designed especially for viewing on smartphone screens. Customers can click on the mobile ad to check availability online or to speak with the reservations department. One of the newer brands, Marriott Executive Apartments, combines the spacious comfort of an upscale apartment with the elegance of a luxury hotel. This brand targets affluent business and professional travelers, and their families, who plan to be in a city for several weeks or even longer. Ranging in size from a studio to three bedrooms, these accommodations have an upscale, residential ambiance and offer extras such as room service and an on-site café. More Business from Business Customers Marriott also targets companies that need hotel space to hold meetings and seminars. In most cases, these companies bring in attendees from outside the immediate area, which means Marriott can fill more guest rooms during meetings. Meetings usually involve additional purchases, such as snacks or meals, another profitable reason to target businesses. Sales reps at major Marriott properties are ready to help companies plan employee workshops, supplier and distributor events, and other meetings for a handful to a ballroom full of people. Studying the needs and buying patterns of companies that hold business meetings, Marriott's marketers have found that a growing number are interested in videoconferencing and other high-tech extras. To appeal to this segment, Marriott has equipped many of its meeting rooms with the latest in recording and communications technology. Because planning and managing a business meeting of any size can be a complicated process, Marriott offers online special tools for one-stop assistance. Meeting planners can log on to view photos and floor plans of different meeting rooms, reserve space, and book hotel rooms for individual attendees. They can also use Marriott's web-based calculators to determine how large a meeting space they'll need and estimate costs. Downloadable checklists guide companies through every step, from selecting a site to promoting their meetings to attendees. Marriott understands that when a business meeting goes smoothly, the company is more likely to pick a Marriott meeting place next time around. Targeting Green Travelers The segment of consumers and business travelers who care about the environment is sizable these days, and Marriott wants its share of this growing market. The company has developed prototype green hotels for several of its brands, designing the public space and guest rooms with an eye toward conserving both water and energy. Marriott will build hundreds of these green hotels during the next decade. Thanks to the company's emphasis on saving power, 275 of its hotels already qualify for the U.S. Environmental Protection Agency's Energy Star designation. Marriott is also going green by working with suppliers that operate in environmentally friendly ways. It provides pads made from recycled paper for attendees of business meetings held at its properties, for example, and buys key cards made from recycled plastic. Even the pillows in guest rooms are made from recycled plastic bottles. Getting the Database Details Right Marriott set up a central database to capture details such as how long customers stay and what they purchase when they stay at any of its hotels or resorts. It also stores demographic data and tracks individual preferences so it can better serve customers. By analyzing the information in this huge database, Marriott discovered that many of its customers visit more than one of its brands. Therefore, the company created sophisticated statistical models to target customers for future marketing offers based on their history with Marriott. In one campaign, for instance, Marriott sent out 3 million e-mail messages customized according to each recipient's unique history with the hotel chain. Because of its database capabilities, Marriott was able to track whether recipients returned to one of its properties after this campaign- and actual sales results exceeded corporate expectations. This database technology has paid for itself many times over with improved targeting efficiency and higher response rates. Watch for Marriott to continue its expansion into new markets and new brands with marketing initiatives targeting vacationers, business travelers, and meeting planners. How is Marriott segmenting the market for hotel services?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Is There a Trek Bicycle for Everybody? Trek Bicycle, founded in 1976, gets a marketing boost whenever high-profile professional racers speed off on their Trek bikes or world-class cyclists power through dirt bike races. Based in Waterloo, Wisconsin, Trek is North America's largest bicycle manufacturer, with more than $800 million in annual sales and a worldwide network of 1,000 dealers. Knowing it can't be all things to all cyclists, Trek focuses its marketing efforts on satisfying the needs of serious cyclists seeking top-quality, high-performance bicycles for athletic training and competition, recreation, or commuting. For example, Trek has found that the lifestyles and behavior of consumers who like mountain biking are distinctly different from those of consumers who ride in city streets. Even among mountain bikers, some consumers prefer to feel the rough terrain under their wheels, while others want a smoother ride. Similarly, some urban riders are interested in style, while others care about a bike's environmental impact. Professional athletes want the very best performance, whether they're competing in a fast-paced triathlon or the grueling Tour de France. Targeting the segments it can satisfy most effectively, Trek now offers two separate lines of mountain bikes, "hardtails" for feeling the ride and "full-suspension" for comfort. For urban riders, it markets seven models of pedal-power bikes and five bikes equipped with electric motors. For consumers who wheel around on bike paths or take a spin on city streets, Trek offers a wide variety of options, including one tandem model. The company's triathlon bicycles are designed with aerodynamics in mind, to help speed cyclists on their way to victory or through a high-powered workout. Because one size does not fit all cyclists, Trek also designs bikes specifically for women. In addition, customers can design and equip their own bikes online using Trek's Project One configuration tool. To ensure proper fi t, customers must visit a local dealer to be measured before their bikes are manufactured and delivered. Trek's choices of product names reflect the interests of each targeted segment. For example, the Madone product line, for dedicated athletes, is named for Col de la Madone, a French mountain where Lance Armstrong has famously tested his cycling strength. Some of the commuter models are named after cities where cyclists can be seen pedaling along downtown, such as the Portland (Oregon) and the Soho (New York). Prices for Trek's high-end Madone models can top $8,000, depending on exact specifications and customizing touches. The urban bikes range in price from $500 to more than $1,000. Many of its children's bicycles are priced above $200. These are well-made bicycles for people who want advanced engineering, stylish looks, and a great riding experience-and are willing to pay for it. Just as Trek tailors its bikes to the needs of each customer group, it also tailors its promotional efforts. These include targeted advertising, training programs to help cyclists build their skills, and product demonstrations at parks and sporting events. Trek uses Facebook, blogs, Twitter, online videos, and e-mail newsletters to stay in touch with customers, answer questions, and gather feedback. Supporting charitable groups such as the Lance Armstrong Foundation and the Breast Cancer Research Foundation helps the company show its commitment to social responsibility. Trek also funds DreamBikes, a nonprofit organization that recycles used bikes and trains teenagers in repair and retail sales techniques. DreamBikes asks for donations of bicycles that are unwanted or in disrepair and hires high school students to refurbish and resell the bikes, which are priced for affordability. Currently, DreamBikes has two stores in Wisconsin, with more in the planning stage. Trek started with the mission of building the world's best bicycle. Today, it markets the bicycle as a way to be fi t, reduce traffic, and make the world a greener place. Its Eco Design bicycles incorporate environmentally friendly materials and can be disassembled to recycle the parts at the end of their useful lives. The company practices what it preaches about environmental issues, using renewable power to run its manufacturing plant and providing convenient parking for employees who bicycle to work. Green targeting helps Trek attract like-minded customers as well as employees. Employees-cycling enthusiasts, like their customers- often come up with new product ideas and enjoy testing new products along the way. Where will targeting take Trek next? If marketers at Trek were trying to determine anticipated sales for a specific period, what method of forecasting would they be using?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Outline the five major steps in the target market selection process.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
iExplore iExplore is an Internet company that offers a variety of travel and adventure products. Learn more about its goods, services, and travel advice through its website at www. iexplore.com. a. Based on the information provided at the website, what are some of iExplore's basic products? b. What market segments does iExplore appear to be targeting with its website? What segmentation variables is the company using to segment these markets? c. How does iExplore appeal to comparison shoppers?
Essay
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 36