The most optimal approach to a market exists when all of the buyers have the sam
ID: 456363 • Letter: T
Question
The most optimal approach to a market exists when all of the buyers have the same needs. In reality, this is usually not the case. Markets become fragmented when the diverse interests and backgrounds of people divide them into many different groups with distinct needs and wants. This means that the same product or service will not have the same appeal to everyone. This issue can only be addressed by "targeting" specific customers and marketing a customized message. The three steps in this process includesegmentation, targeting, and positioning (or repositioning). Review the concepts in your text regarding market segments, target markets, positioning and repositioning. For this discussion, responds to each of the following prompts:
Search the Internet for an advertisement that you feel is targeted at you based on your age, ethnic background, personal interests, etc. Be sure to include a link to the ad you chose so that your classmates can view it.
Describe the marketing segment that you feel this ad would appeal to and why? Include examples of demographic, geographic, psychographic, or behavioral segmentation.
Then, focus on the specific target market that this ad would be directed at, and describe whether you feel the ad is successful in reaching this target.
Finally, explore the concept of repositioning. Could there be another target that this ad campaign could be directed at? What would need to be adjusted to suit another target and reposition your product/service in the marketplace? Explain the advantages that may be gained by repositioning this ad.
Explanation / Answer
Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety.
In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow?
Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.”
Marriott International owns a number of different hotel chains that target specific consumer groups.
For example, Courtyard by Marriott hotels focus on travelers on the road, who want a nice, clean place to stay during their trip; Ritz-Carlton hotels target those who don't mind paying a premium for luxury; and Marriott ExecuStay hotels are aimed at professionals who need a longer-term, comfortable place to stay. As you can imagine, Marriott International doesn't communicate the same marketing message to all its customers. Each hotel is designed and positioned to appeal to the unique wants and needs of a specific group.
Advertisement that I feel is targeted on us based on age, ethnic background, personal interests:
https://www.youtube.com/watch?v=VCsl0EkU7Tg
The above ad is segmenting young professionals whose incomes are high compared to their expenses. With high incomes they can invest much of it in the early stages of their careers. The said advertisement persuades younger generation to invest in systematic plans to get higher returns and earn a decent pension.
This ad will appeal to young people who are in early stages of their careers, single and have less responsibilities to shoulder than their older counterparts. Yes the ad is successful in reaching its target of young & well earning professionals.
Repositioning refers to the major change in positioning for the brand/product. To successfully reposition a product, the firm has to change the target market’s understanding of the product. This is sometimes a challenge, particularly for well-established or strongly branded products. Firms may consider repositioning a product due to declining performance or due to major shifts in the environment. Many firms choose to launch a new product (or brand) instead of repositioning because of the effort and cost required to successfully implement the change.
The above ad with some changes can be directed at middle aged professionals who are in the middle of their careers and have more stable and assured flow of income. Although their expenses increase at this stage of life with increased responsibilities but their need for investment in a retirement plan is also felt more than before as they near retirement.
The tone and ambience of the ad could be changed along with the basic changes in the retirement plan to encourage middle age professionals to invest in pension plans.
Repositioning the ad will increase the revenue/profit for the company and expand its consumer base leading to an increase in market share of the company.