Please answer these questions from the article: 1) What hypothesis do you think
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Question
Please answer these questions from the article:
1) What hypothesis do you think the product designer formulated before he began researching how consumers use bucket? Do you agree with his decision to use obersvation rather than another method of collecting primary data? Why?
2) Is home depot using differentiated targeting, undifferentatied targeting, or concentrated targeting? How do you know?
3) Which segmentation variables does Home Depot appear to be using to reach consumer markets? Why are these appropriate?
4) Do you think Home Depot is segmenting the contractor market using only business variables or a combination of business and consumer variables? Explain your answer.
Home Depot Builds on Research, Segmentation, and Targeting Nearly 40 years after Home Depot opened its first two stores, dislike, return, and request. Reading the reviews of products the Atlanta-based company is the U.S. market leader in one- that customers post on HomeDepot.com also helps the com- stop shopping for home-improvement tools and materials. It pany understand what its customers want and expect. rings up $75 billion in annual sales, mainly through more than 2,260 North American stores but also through its online tify particular customer problems and needs that can be store and mobile-ready website. In addition, its marketers use observation to iden- addressed through marketing. For example, the company Before the rise of Home Depot and its big-box competi recently hired a designer to create a new kind of bucket tors, consumers shopped at small hardware stores where the exclusively for the Home Depot. Even though the humble owners would offer advice and order any obscure tool or odd- bucket is a mainstay for many household uses, Home Depot sized nail that wasn't in stock. Although do-it-yourselfers wanted to develop something new to showcase its customer- might have to wait for out-of-stock or specially-ordered items centered innovation. The designer began by observing how to be delivered to the store, it was the best option available people use buckets in and around their homes and gardens. at the time. Today, however, consumers and contractors all He noticed that women, in particular, have difficulty lifting, around the country have convenient access to hundreds of carrying, and unloading a conventional bucket full of soil or thousands of everyday and hard-to-find products stacked on floor-to-ceiling shelves under one giant, warehouse-sized oof. other contents. Based on this insight, he redesigned the plastic bucket by forming an indented "grip pocket" on the underside. He Over the years, Home Depot has expanded its merchan also added a large, comfortable handle in addition to a sec- dise selection and service extras to address the needs of ondary grip opening on one side of the rim. These features make it easier to hold the Big Gripper bucket steady specific target markets. One key target market has alwaysExplanation / Answer
1. What hypothesis do you think the product designer formulated before he began researching how consumers use buckets? Do you agree with his decision to use observation rather than another method of collecting primary data? Why?
Hypothesis: If we can determine who and how consumers use plastic buckets in the household, then we can make necessary additions to the bucket to make it more efficient to use.
I disagree with his idea to do observations as data collections. Observations are a great way of seeing and getting a first hand account of the subject. But it should be used with other tools of data collection like personal experimentation and first account surveys. By looking at all these data collection methods together, the designer can gather multiple perspectives, feedback, and objections.
2. Is Home Depot using differentiated targeting, undifferentiated targeting or concentrated targeting?
Home Depot uses differentiated targeting for its marketing strategy. I know this because Home Depot directs its marketing efforts at two or more segments by developing a marketing mix for each segment. The DIY consumers have free workshops and how-to resources that can assist in the customer experience. The contractors have their specialized loyalty programs to help drive sales in that segment of customers.
3. Which segmentation variables does Home Depot appear to be using to reach consumers markets? Why are these appropriate?
Home Depot uses behavioral variables in their segmentation variables. These variables look at how customers behave towards a product. This includes the purchasing patterns, order volume, brand loyalty, and attitude towards the products. This strategy can allow Home Depot to develop promotions and pricing points to satisfy their customer base
4. Do you think Home Depot is segmenting the contractor market using only business variables or a combination of business and consumer variables?
Home Depot uses a mix of consumer and business variables in their marketing strategy. There are variables that business use to target business like looking at their product use, customer size, geographic location, and organization type. But Home Depot intertwines the consumer variables to help market to their business customers. Businesses are owned and ran by people for are consumers. Segmentation variables used on consumers can be used for businesses because the people running the business will appeal to the variables put in place that may be similar to consumer variables.