Download bus 306 chapter 7 assignment

Chapter 7 Assignment
Discussion Questions
1. Market segmentation differs from market targeting because segmentation, “involves dividing a
market into smaller segments of buyers with distinct needs, characteristics, or behaviors that
might require separate marketing strategies or mixes” (Kotler, P., & Armstrong, G., 2014.)
Market targeting differs from market segmentation because targeting, “consists of evaluating
each market segment’s attractiveness and selecting one or more market segments to enter”
(Kotler, P., & Armstrong, G., 2014.)
2. The four major sets of variables that might be used in segmenting consumer markets are
geographic, demographic, psychographic, and behavior. Geographic segmentation divides the
market into different geographical units and that can be described as nations, regions, states,
counties, cities, and neighborhoods. Demographic segmentation divides the market into
segments or groups that are based on age, education, gender, income, occupation, life-cycle stage
education, religion, ethnicity, and generation. Psychographic segmentation divides buyers into
different groups or segments that are based on social class, personality of the individual or
individuals and lifestyle. Behavioral segmentation divides buyers into groups or segments based
on the people’s knowledge, uses, attitudes, or responses about the product (Kotler, P., &
Armstrong, G., 2014.) The variable that Starbucks would use is Psychographic segmentation
because the environment that this establishment brings in is people that show similar traits in
lifestyle or social class. This business wants customers in these types of demographic groups
because these segments fit the lifestyle which Starbucks is representing.
4. Companies segment international markets because this type of market because, “it forms
consumers who have similar needs and buying behaviors even though they are located in
different countries” (Kotler, P., & Armstrong, G., 2014.) This concept makes markets more
knowledgeable about what people want all over the world rather than in a certain region which
the business could be located at.
5. A company differentiates its products from competitors’ products by implementing a strategy
which, “a firm decides to target several market segments and designs separate offers for each”
(Kotler, P., & Armstrong, G., 2014.) This type of segmentation makes the business and its
products more unique and attractable to its consumers and its competitors. This can also lead to a
competitive advantage for this business which can dominate the market because this
establishment made products that were different from other businesses.
6. A product’s position is, “the way a product is defined by consumers on important attributes”
(Kotler, P., & Armstrong, G., 2014.) A product’s position is what is on the minds or concerns of
customers because this type of concept is what attracts them into this market rather than a
competing market. Marketers know what this concept is because they often prepare perceptual
positioning maps which, “shows consumer perceptions of their brands versus competing
products on important buying decisions” (Kotler, P., & Armstrong, G., 2014.)
Critical Thinking Exercise
2. The reason that the two Japanese brands missed their sales goals by a wide margin is because
they did not target their market effectively or in the appropriate matter. They should have
positioned their product in a way where consumers would have had these vehicles in their minds
and taken in consideration that these vehicles are unique compared to its competitors. These
brands also bring out segmentations of people who would buy these vehicles rather than what
they had in the past where many people all over the world would purchase these trucks. This also
brings out an improper use of concentration marketing because this concept markets more
effectively by preparing its products, prices, and programs to the people that need these items in
these types of segments (Kotler, P., & Armstrong, G., 2014.)
Marketing Technology
1. The most appropriate variables for segmenting the consumer market for products based on this
technology are demographic and behavioral segmentation (How Augmented Reality Works, n.d.)
Demographic segmentation applies to augmented reality because this type of technology that is
coming to the market will attract certain type of segments from this variable that are based on
income, gender, and occupation as well. Behavioral segmentation works with augmented reality
too because it will bring out segments in which buyers have knowledge or attitudes in favor of
buying these items (Kotler, P., & Armstrong, G., 2014.)
2. I would market Google Glasses to consumers based on the psychographic segmentation
because this type of product has an extreme price tag to it. The buyers that are interested in this
item will be divided from other groups that have concerns with the luxury and uniqueness of the
product. I believe that Google Glasses is a product that will transform the market structure to
new heights. The buyers from the psychographic segmentation will benefit from this product and
feel separated from everyone else that doesn’t have this type of technology. This product will
only benefit their lives now and for the future (Kotler, P., & Armstrong, G., 2014.)
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References
How Augmented Reality Works. (n.d.). HowStuffWorks. Retrieved February 24, 2014, from
http://www.howstuffworks.com/augmented-reality.htm
Kotler, P., & Armstrong, G. (2014). Principles of marketing (15th ed.). Upper Saddle River,
N.J.: Pearson.