Http www strategicbusinessinsights com vals surveynew shtml

1. Targeted Marketing vs. Mass Marketing

Targeted marketing vs. mass marketing is a critical concept for you to understand. Take a few minutes to review this video that demonstrates the strength of target marketing in terms of reaching the right customers with the right message in the right media. If you have a dog, you might find yourself in one of these segments.

If you have a market that is large and homogenous, then you can be a mass marketer. One example might be salt, basically one product for anyone who wants it for the need to season food, which is a universal need. We will discuss this example further in one of our discussion topics.

Can you think of a mass-marketed product? What is it and why do you think it is mass marketed?

The topic of segmentation always brings up the highly controversial subject of consumer privacy.

2. How Markets are Segmented

Segmenting markets is difficult and often requires marketing research to find out how consumers think, behave, and basic information such as age, gender, etc. Therefore, defining market segments is aided with the generic segmentation bases, behaviors, demographics, geographics, and psychographics. Be sure to understand this as it is discussed in the Week 4 readings. Also understand that these are generic categories, not segments themselves. Within each of the generic bases are a number of variables from which marketers can choose which ones are relevant for a usable market segment.

All of a company's marketing mix should focus on the market segment, now called a target market. In other words, the offering should be what the target market wants, where it wants it, how much it wants to pay for it, and how the company communicates with the target market. If done right, we can usually determine the characteristics of a target market by analyzing the advertising.

Search YouTube.com for your favorite commercial. Find an ad and figure out who you think is the target market. The hints are in the type of music used, the spokesperson's persona, the approach to the marketing communications message, the types of people used in the ad, the words chosen for the ad, etc. All this should tell you to whom the marketing communications is intended to influence.

Then identify at least three of the characteristics you think comprise the target market. Make your choices using Table 4.1 from the main text as your framework. But, don't merely say demographic/age. Tell us what age, or psychographic/values. Specifically note the value such as family or thrifty.

Then, take a look at some classmates' posts. Are you seeing similarities that put you in the same market segment, or are there other market segments that seem to be emerging from our course population?

Since market research is so expensive, there are a few shortcuts because some consulting firms have done the work already, and they market their findings to companies. One of these is Claritas, which runs a continuous study of consumers like you. In fact, you can participate in the survey by following this link:

http://www.strategicbusinessinsights.com/vals/surveynew.shtml

All data collected in the VALS survey is used to categorize consumers into one of several market segments.

After you take the quiz, it will tell you your primary and secondary "type." You can click on the VALS type to read more about yourself and your consumer behaviors.

It may not be 100 percent accurate for you, but if you took the survey seriously, chances are better than good that it describes you relatively precisely.

Finally, since geography plays a unique role in defining customers, that may be the only variable a company needs for an effective market segment. See how it works using the tools described in Topic #2 of this week's discussion.

You can look yourself up by zip code and read about yourself and your neighbors.

3. Selecting Target Markets and Target-Market Strategies

Now that you know how to identify market segments, the next step is to choose the one or more market segments to target. The Week 4 readings discuss the basic ways of choosing market segments by matching them with company resources, the competition, and other variables that might make reaching all the market segments impossible. These target-market strategies include mass marketing discussed earlier, multisegment marketing, or concentrated marketing. Even finer concentrated target-market strategies include niche, micromarketing, or one-to-one marketing.

Since many domestic markets are too competitive for smaller companies, many have set their sights on foreign markets greedy for a share of the billions of potential customers in countries such as India or China. But even in these foreign markets, geography can't be the only variable for selecting a target market.

Check out this article, "Billions of Buyers," (Strom, 2014) from the New York Times:

http://bi.galegroup.com.ezproxy.umgc.edu/essentials/article/GALE%7CA382720554/a837418fd5756d2e6623c141c1a50d2c?u=umd_umuc

Note P&G's efforts to sell an inexpensive water purification product, which initially seemed like a mass market. Still, P&G had to study the foreign markets for specific consumer behaviors that would help the company market the product to a smaller segment of the foreign market.

Strom, S. (2014, September 18). Billions of Buyers. New York Times, p. B1(L). https://bi-gale-com.ezproxy.umgc.edu/essentials/article/GALE%7CA382720554/a837418fd5756d2e6623c141c1a50d2c?u=umd_umuc

4. Positioning and Repositioning Offerings

Mature products sometimes need to be repositioned. Finding a new need for an existing product is usually a reason for repositioning. Many years ago, Arm & Hammer baking soda found a new market by repositioning the product for those wanting a clean-smelling refrigerator. The company did a similar repositioning when offering the product as a teeth whitener.

Can you think of an existing product that has been repositioned by finding a new market with a different need than the original product?

To further your understanding on this topic, listen to this audio clip for some career advice from Apurva Ghelani, a senior sales engineer for Air2Web, a company that helps businesses root their brands and conduct transactions with people via their mobile phone.

http://app.wistia.com/embed/medias/416c5bb392/

Recap of Week 4 Learning Activities

Week 4 is one of the most critical weeks for understanding marketing strategy. Be sure that you have a firm grasp of these important marketing concepts so that your marketing strategy recommendations in your writing assignments are not too generic, but outline specific and identifiable target markets. Ask your questions and address your concerns in Ask the Professor.