Download marketing segmentation

Unit 3 Introduction to Marketing
Assignment 3
(P5)
Date Set: 15th Jun 15
Deadline: 29th Jun 15
Assignment 3 Learning Outcomes
• All WILL be able to describe how John Lewis
targets customers (consumer/business) for
selected products.
• All SHOULD be able to explain why John Lewis
targets customers (consumer/business) for
selected products.
Learning Objective: To know how and why customer groups are
targeted using marketing segmentation.
Consumer vs. Customer
Buyer
Business-to-Business (B2B)
One Business sells to
another
(EKS Office Equipment)
Learning Objective: To know how and why customer groups are
targeted using marketing segmentation.
Market Segmentation (Consumer)
Using market research to identify and target
groups of customers who respond to marketing
activity in the same way
• Geographic
• Demographic
• Psychographic/Lifestyle
• Demographic
Learning Objective: To know how and why customer groups are
targeted using marketing segmentation.
BIC Segmentation
•Best value for money - This type is typically bought by offices and households that have writing
instruments in virtually every room. Everyone is allowed to use any available pen, so there's no great
problem if one is misplaced. Households tend to seek lower priced pens, and regularly make new
purchases of assortments of writing instruments based on current needs.
•Seeking specific benefits - Here consumers are looking for a more personalised item; something
they regard as 'my pen'. It will be kept in a private place belonging to that individual, who may be
reluctant to let anyone borrow it. Buying decisions will typically take longer, and involve careful
consideration over choice. Key features looked for will include the pen being comfortable to hold and
its capacity for producing smooth, writing that reflects the individual e.g. by colour or handwriting style.
Marketing activity therefore needs to focus on these more sophisticated individual needs.
•Impulse buy - Impulse buys are unplanned. Innovative designs will attract this segment, largely
because the consumer is buying for pleasure. Purchasing in this segment is far more emotional and so
the skilful marketer will seek to create 'objects of desire'. Attention grabbing Point of Sale displays are
essential to stimulate impulse buys.
Assignment 3
1. Explain the difference between customers, consumers and buyers
with examples of John Lewis
2. Explain the importance of identifying who has influence over
purchasing decisions
3. Explain market segmentation in consumer markets:
• Why is it important?
• Bases for segmentation - geographic, demographic, psychographic,
lifestyle
• Describe how the ACORN and MOSAIC are used by organisations to
identify and target groups.
4. Explain market segmentation in business markets:
• Describe how Decision Making Units (DMU) used to identify
customers in business-to-business markets?
• Describe how these business markets are segmented - size, region,
value, public/private/voluntary sector, product, industry
• Explain the benefits for different members of the DMU - cost
benefits, ongoing relationships, security of supply
Market Segmentation (Business)
Decision making unit (DMU) – All people/groups
who are involved in the purchasing process:
– Influencers
– Users
– Buyers
– Deciders
– Specifiers
– Gatekeepers
Learning Objective: To know how and why customer groups are
targeted using marketing segmentation.
Market Segmentation (Business)
• Market segmentation
o Size
o Region
o Value
o Public/Private/Voluntary sector
o Product
o Industry
• Benefits for different members of the DMU
o Cost benefits
o Ongoing relationships
o Security of supply
Learning Objective: To know how and why customer groups are
targeted using marketing segmentation.
John Lewis Products
Choose 6 different products sold by John Lewis. For each
product:
• Produce a mini information sheets about the product –
include a picture, size, description etc.
• Select a target group and explain why this group has
been selected for this product (Use the info in the JL
handout)
• What are the reasons for that choice of target group?
(Consider accessibility, current and future prospects of
this group of customers, profitability, ability to service
customer group, fit with organisation’s aims and
objectives)