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This is the first presentation I've tackled at Uni. The topic was Market Segmentation. Any feedback and tips for the next one is very much welcome!

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  • Notes for group presentation on marketing segmentation.
    Question 5
    How would a retailer who was targeting this particular age group be able to use the information provided?
     
    Findings with this research showed that two of the main group’s recreational quality seekers and recreational discount seekers who make up 49percent of this segmentation both saw shopping as a leisure and social activity. Retailers could then consider introducing more fun into shopping. Jones (1999) suggests that there are four resources at the disposal of retailers.
    Retail price / selection / store environment / sales people
    Examples such as levis stores in the usa have DJ towers, “chill out “ zones and moveable fixtures.(craik 1999) also closer to home for instance braehead shopping centre has an ice rink, food courts , nail bars, seasonal entertainment for the kids i.e. Santa’s grotto and fun fairs outside ect.
    The generally accepted notion within the industry is that such entertainment centres can substantially extend a shopping malls draw, lengthen shoppers stay and increase revenues for the tenants(retailers).(Patterson 1994).
    Working with the traits reminders on the left of the presentation slide.
    Retailers could benefit from offering a range of quality well known brands possibly utilising shop window space if available to emphasise the prestigious lines of merchandise and introducing their own higher priced line targeting the quality seeker and other brand loyal. 1in 2 adult female generation y pursue quality even if it implies higher costs.
     
    Product educated or market aware sales staff most likely being first public contact point can assist confused or time conscious consumers with what they’re looking for, give advice on up and coming fashion trends, other products that may be of interest and alternative quality merchandise to suit their budget.
    Discounting strategies such as dedicated shop floor space or a “bargain corner “could be employed to target discount seekers or the price/value conscious. Bargain shoppers or smart shoppers are known to enjoy the challenge of achieving price savings and/or product gains giving rise to speculation that price intrest has become a dimension to characterise a new lifestyle (groppel-klein 1999). Other strategies Inc customer contact on future sales or monetary savings, discount/loyalty card. Also discount seekers are more like to purchase merchandise of a hire value if there is a perceivable discount.
    The internet has become and is continuing to revolutionise how companies create value for customers and build and maintain customer relationships. (pearsons200?) Retailers could benefit from ecommerce in many ways from a worldwide market place to lower cost of sale expense, for instance the segment shopping/fashion uninterested, shopping online they save time and energy less time doing a task they don’t like. Customer base (a register over earlier customers, present customers in combination with detailed sales records.( goran bergendahl 2002) The fashion and style conscious can be kept up to date with new session ranges coming into stock, prices and promotions the possibilities are endless .
     
    Reference sheet
    PATTERSON, GA (1994, june22) malls draw shoppers with Ferris wheel and carousels. The wall street journal
    JONES MA (1999) entertaining shopping experiences; an exploratory investigation” journal of retailing and consumer services vol6 no3 page 129-139
    CRAIK, L (1999) “The rebirth of cool” The guardian, 22 October, page 10-11
    GROPPEL-KLEIN, A, THELEN, E. and ANTRETLER, C (1999).
    “The impact of shopping motives on store assessment” European advances in consumer research, vol14, and pp 1-3
     
    GORAN BERGENDAHL (2002) investment in electronic commerce pp3
     
    PEARSONS, GARY ARMSTRONG, PHILIP KOTLER, MICHAEL HARKER, ROSS BRENNAN (200?) marketing an introduction page 25
  • University Presentation

    1. 1. Market Segmentation Focus on article (Bakewell & Mitchell, 2003) about adult female Generation Y consumer decision-making styles. Who is Generation Y? What is market segmentation? Through market segmentation, companies divide large heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.” (Armstrong et al., 2009, p192) Why would a retailer use market segmentation to target adult female Generation Y consumers?
    2. 2. Market Variables Step 1 What are the main variables used in segmenting a customer market?
    3. 3. Demographic age segments  Demographic ages • Born before 1946 “matures” • Born between 1946 – 1964 “Baby boomers” • Born between 1965 – 1976 “Generation X” • Born after 1977 “Generation Y” Generation X 1. Few shopping channels with restricted hours 2. Restricted credit 3. Less materialism 4. Advertisement and marketing received in traditional forms 5. Less gender-role mixing 6. Traditional family unit Generation Y 1. Many shopping channels and unrestricted hours 2. Creative credit opportunities 3. Greater materialism 4. Advertisement and marketing received from ever increasing sources 5. Greater gender-role blurring 6. Increased non-traditional family units • Differences between age segments
    4. 4. Generation Y Women – Who they are and why study them? Sample chosen? Adult female Generation Y – specifically students aged between 18-22 years old Why is this group of interest? • Elaborates on previous studies (Sproles and Kendal (1986, cited by Bakewell & Mitchell, 2003, p100)) • Financially powerful group - $97.3billion spent by teenagers annually according to Ebenkamp (1999, cited by Bakewell & Mitchell, 2003, p96) • Important when defining marketing campaigns – Schew and Noble (2000, cited by Bakewell & Mitchell, 2003, p96) commented that “cohort generations are argued to share a common and distinct social character shaped by their experiences through time” • More freedom of choice compared to 6-17 year-olds – although Moschis and Cox (1989, cited by Bakewell & Mitchell, 2003, p97) also commented that “childhood and adolescent years are crucial in acquiring shopping orientations” • Women & Men - “Women hold diametrically opposed values regarding effective shopping compared with men” (Falk & Campbell, 1997, cited by Bakewell & Mitchell, 2003, p96) "Age has been used to segment many consumer markets” (Tynman & Dayton, 1987, cited by Jobber, 2010, p269)
    5. 5. Five segments identified within Generation Y
    6. 6. What do these segments mean? Recreational discount seekers (16%) •Looked upon as “bargain seekers” • Likely to shop in bargain stores • Less “brand conscious” • Primarily concerned with getting value for money • Thrive on discounted/lower priced products Agree with: “I buy as much as possible at sale price” Recreational quality seekers (33%) •Form the largest group of shoppers • Enjoy the shopping experience • Exert extra effort and detail in order to obtain quality products • Represent a degree of brand loyalty • Not attracted by lower priced products/discounted products Disagree with: “I buy as much as possible at sale price”
    7. 7. What do these segments mean? Trend setting loyals (14%) •Fashion & style conscious •Tendency to visit same stores/buy same brands •Price/value conscious •Confused by over choice •Believe brands do not have to be well known to be a good choice “I keep my wardrobe up-to-date with the latest fashion” Shopping and fashion uninterested (16%) •Confident shoppers •Time and energy conserving •Do not find shopping pleasurable •Price and value conscious •Have a tendency of buying lower priced products “I normally shop quickly, buying the first product or brand that seems good enough” Confused, time/money conserving (21%) •Confused by abundance of information on products •Careful how they spend their money •Not drawn to more prestigious/higher priced stores & brands •Prefer lower prices to higher quality •Spend little time deciding between options “I get confused by all the information on different products” “I carefully watch what I spend”
    8. 8. How would a retailer target this age group with the information provided? • recreational quality seekers • recreational discount seekers •Shopping fashion uninterested • trend setting loyal • confused time/money conserving Possible improvements
    9. 9. Conclusion  Main variables used to segment consumer markets are geographic, demographic, psychographic & behavioural (Armstrong et al., 2009).  Article studied (Bakewell & Mitchell, 2003) focuses on adult female Generation Y (aged 18-22) and identified 5 distinct segments.  The findings showed that many Generation Y shoppers: – will show a recreational shopping style – view shopping as a leisure pursuit or a social activity – are likely to show a materialistic/opulent shopping style – will show consumer confusion and/or behaviours to cope with over-choice – such as apathy/brand loyalty  Retailers can use the information here to plan their operations effectively – different choices must be made based on the retailer’s target segment.  Limitations: survey only sampled adult female students aged 18-22 who were buying personal goods. Sample chosen also has higher % who enjoy shopping & pursue it as a form of recreation compared to other groups. "The danger is, however, that the more abstract the segments become, the less easily understood they may become by those designing marketing strategies.“ (Wedel and Kamakura, 1999, cited by Brassington & Pettitt, 2007, p116)
    10. 10. Bibliography  Armstrong, G., Kotler, P., Harker, M., and Brennan, R., 2009. Marketing an Introduction. Essex. Pearson Education.  Bakewell, C., and Mitchell, V. W., 2003. International Journal of Retail & Distribution Management, Generation Y female consumer decision-making styles, 31 (2), p95-106.  Brassington, F., and Pettitt, S., 2007. Essentials of Marketing. 2nd Edition. Essex. Pearson Education  Craik, L., 1999. “The rebirth of cool” The guardian, 22 October, page10-11  Goran Bergendahl ., 2002. investment in electronic commerce page3  Groppel-Klein, A ., Thelen, E., and Antretler, C., 1999. “ The impact of shopping motives on store assessment” European advances in consumer research, vol14, and page 1-3  Jobber, D., 2010. Principles and Practices of Marketing. 6th Edition. Berkshire. McGraw-Hill Education.  Jones, Ma., 1999. Entertaining shopping experience; an exploratory investigation” journal of retailing and consumer services vol6 no3 page 129-139  Kotler, P., and Armstrong, G., 2006. Principles of Marketing. New Jersey. Pearson Education.  Patterson, ga., 1994. Malls draw shoppers with Ferris wheel and carousels. The wall street journal.
    11. 11. Group Activity  5 Example Women  What consumer segments do you think each woman represents?  What shopper/woman/person do you think each brand is targeting?  What could the brands do enhance their offering to the women?
    12. 12. Mission Statements Topshop - The TOPSHOP girl is style conscious, independent and addicted to fashion. She goes shopping every week in pursuit of her latest fashion fix. A whole variety of people shop with us - TOPSHOP is visited on a regular basis by industry insiders from home and abroad including stylists, top models and musicians. Dorothy Perkins - The Dorothy Perkins customer base is 18-60, with an average customer age of early thirties. She likes to look fashionable and is interested in keeping up with the latest trends. However she also has little time for herself and is always busy either working or with her children. She trusts Dorothy Perkins to deliver styles that will suit her and give her outfit advice on how to put the latest look together. Marks and Spencer – “Although we sell to everybody – big, small, young, black, white – our absolute target market is a bit older and is comfortable with traditional media. They watch terrestrial telly more than satellite telly, they read newspapers and when they drive around they look at billboards. They are not spending hours on the internet," (Steve Sharp, M&S Marketing Director) Gap - Gap, Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing. Our purpose? Simply, to make it easier for you to express your personal style throughout your life. We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture our key values that guide our success: integrity, respect, open- mindedness, quality and balance. Everyday, we honor these values and exemplify our belief in doing our business in a socially responsible way. Primark - The mission of the Primark management and staff has been to supply quality clothing at prices perceived to offer real value.
    13. 13. Lisa Recreational Discount Seeker What shopper/woman/person do you think each brand is targeting? Primark – offers a quality product at a low price but also has a wide range of clothes. Lisa is a student and likes a bargain to save money. Top Shop – offers a stylish look which is new and exciting at a reasonable price also has sales on for each seasons range. Lisa likes styles that are different, Top Shop has regular sales and she can get a discount with her student card. What could a retailer actually do to enhance their offering to each type of type of woman? •Offer a student discount •Advertise in Snapfax •Have a wide variety of clothes at good prices •Make sure they have sales for each seasons clothes •Have a celebrity endorse some of their clothes that students can relate to e.g Fern Cotton wearing something cool, new and exciting.
    14. 14. Sophie Trend-Setting Loyal What shopper/woman/person do you think each brand is targeting? Top shop – Target a style conscious, independent and addicted to fashion girl, Sophie likes to have at least 1 outfit of the latest style. Primark – Offer quality clothing at prices perceived to offer real value, Sophie usually buys the lower- priced products but also likes to keep her wardrobe up to date with changing fashion trends Gap – try to make it easier for you to express your personal style throughout your life. Sophie likes to buy her favourite brands every time she shops, usually from the same stores and feels it’s important to look stylish What could a retailer actually do to enhance their offering to each type of type of woman? •Keep all clothes/products up to date with changing fashions. •Targeting the same segment with new fashions/styles, as Trend-setting loyal like to go back to same stores. •Keep prices low, as this segment does not value the product by the price but by the quality. •Introducing new styles, as this segment likes to have at least one outfit of the newest style.
    15. 15. Alison Shopping and Fashion Uninterested What shopper/woman/person do you think each brand is targeting? Top shop – Target a style conscious, independent and addicted to fashion girl, Alison show’s a total lack of enthusiasm when making her purchasing decisions, so instead she will look for the first product that interest’s her instead of shopping around to buy into the “latest trends”. Marks and Spencer – Quality of clothing isn’t of great importance, instead Alison will opt to purchase the lower priced products. Gap – try to make it easier for you to express your personal style throughout your life. Alison has no brand loyalty, or fashion style preference, she hopes for an easy shopping experience in order to make it as quick as possible. What could a retailer actually do to enhance their offering to each type of type of woman? Floor assistants to point the consumer in the right direction for what they need Limit queue’s as much as possible by providing the necessary number of till staff Shopping and fashion uninterested do not enjoy the shopping experience, and are not fashion conscious so instead the retailer should concentrate on providing excellent customer service Providing clothes at a reasonable value
    16. 16. Megane Recreational Quality Seeker What shopper/woman/person do you think each brand is targeting? Top shop – Target a style conscious, independent and addicted to fashion girl, Megane feels being fashionable and stylish is very important to her. She isn’t overly attracted to discounts or cheaper products, where Top shop is almost seen as ‘middle of the road’ when it comes to price comparison. Marks and Spencer – Megane likes to make an extra effort to buy the best quality and she doesn’t mind spending a bit extra for these quality, well- known products/brands. Gap – try to make it easier for you to express your personal style throughout your life. Megane likes to buy her favourite brands every time she shops, usually from the same stores and feels it’s important to look stylish. What could a retailer actually do to enhance their offering to each type of type of woman?  Keep all clothes/products up to date with changing fashions.  Targeting the same segment with new fashions/styles, as the Recreational Quality Seeker like to go back to same stores.  Recreational Quality Seekers enjoy shopping so retailers should try and improve the leisure experience included with shopping. (e.g. cafes, nail extensions, etc)  Supply a selection of prestigious brands and emphasise the quality and fashion aspects of their merchandise
    17. 17. Donna Confused, Time/Money Conserving What shopper/woman/person do you think each brand is targeting? PRIMARK The mission of the Primark management and staff has been to supply quality clothing at prices perceived to offer real value, as donna prefers to buy the lower priced and not well known higher priced brands. What could a retailer actually do to enhance their offering to each type of type of woman?  clear and simple merchandise monetary and economic information  trained and/or fashion conscious sales assistants  simplified shop layout  varied discounting strategies

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