UofP - MBA570 - DQs - Week Three - 07-31-06

UofP - MBA570 - DQs - Week Three - 07-31-06 - Discussion...

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Discussion Question 3.1 Due Episode III, Due Day 3 Segmentation “One of the fundamental elements of theoretical marketing is that no single product or brand can fulfill the universal needs of all potential consumers thereby necessitating an organization to undergo the process of segmentation revealing a refined target market ultimately based on similar needs. However, a dichotomy exists in applicable marketing practices in that this mentality tends to be replaced with guidelines supporting more generalized marketing efforts. These efforts tend to be fundamentally based on the idea of marketing the product or brand to every potential consumer reachable by the organization. What are the potential benefits and consequences of developing, implementing, and executing a marketing strategy targeted at a specific market segment versus one that is aimed for the general population? Is one type of strategy universally better to use than the other or will it vary based on industry? What examples of both in today’s market can you provide to support your response?” Target marketing provides direction for all sales activities. It helps to make the most efficient use possible out of the scarce resources of time and money and helps to clarify what must be done in order to reach objectives (SCORE, 2002). With target marketing, eight steps are outlined, including market segmentation and differentiating between markets and industry. Consumers, in general, are being “targeted” in every demographic, industry, and for every product or service on the market and those being created to assist in our “well-being.” However, developing a target market strategy must consist of (1) analyzing customer demand, (2) target markets (undifferentiated, concentrated, and multisegmented), and (3) developing the marketing strategy. When selecting a target market (or analyzing demand), we need to aggregate consumers with similar needs. These “demand patterns” including: Homogeneous demand—a uniformity of everyone demanding the product for the same reason(s) (SCORE, 2002). Clustered demand—consumer demand classified in two or more identifiable clusters (e.g., automobiles: luxury, cheap, sporty) (Kerin, 2006). Diffused demand—product differentiation, which is more costly and more difficult to communicate (Kerin, 2006) (e.g., cosmetic market: need to offer hundreds of shades of lipstick). As mentioned previously, there are many ways to target the market including—but not limited to —undifferentiated, concentrated, and multisegmented. For this discussion, I will focus on the total market approach (or undifferentiated approach). With this approach, there exists a single marketing mix for the entire market. It assumes that all consumers have similar needs for a specific kind of product. The strategy consists of (1) a pricing strategy, (2) promotional programs
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This note was uploaded on 06/12/2011 for the course ETHICS mba taught by Professor Wilkes during the Spring '05 term at University of Phoenix.

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UofP - MBA570 - DQs - Week Three - 07-31-06 - Discussion...

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