This document discusses behavioral-based segmentation and its relationship to marketing success. It examines segmenting markets based on benefits sought, usage rates, and loyalty status. The author develops hypotheses that segmenting based on these behavioral dimensions will positively impact marketing success measures like customer satisfaction, sales growth, and profitability. Demo-psychographic factors like social class and family lifecycle are also hypothesized to moderate the effects of behavioral segmentation on marketing success. The study aims to test these hypotheses regarding behavioral segmentation strategies in the fast food industry.
This document summarizes a research study that examined how Chinese hotels implement Porter's generic strategies of differentiation and cost leadership, and the impact of these strategies on financial performance and customer satisfaction. The study found that differentiation positively influences customer satisfaction in Chinese hotels, but cost leadership does not significantly impact either financial performance or customer satisfaction. The document provides background on Porter's generic strategies, the Chinese hotel industry, prior research, and defines the variables of organizational performance, financial performance, and customer satisfaction in the hotel industry.
Cosnumers intention of buying private label brands in food and grocery retail...IAEME Publication
1) The document is a research paper that examines consumers' intention to purchase private label brands (PLBs) in the food and grocery retail sector in Chennai, India.
2) A survey of 800 consumers in Chennai found that consumers' purchase intention of PLB food and grocery items is influenced most by their perceived benefits, perceived quality, perceived risk, and perceived economic situation.
3) Factor analysis identified three key factors that influence consumers' perceptions of PLBs: perceived risk of PLBs, perceived quality of PLBs, and intention to purchase PLB food and grocery items.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this
region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to
examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling
mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable
producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed
using market structure and performance indicators. The result of the analysis showed that market structure in the
study area could be characterized by weak oligopolistic market with little chance of market participants to influence
market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in
the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening
the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing
farmers’ group marketing with communication access together with least cost storage and transport technologies
should be encouraged to improve vegetable marketing performance.
This document summarizes key findings from research on how sales promotions work. It identifies three main empirical generalizations supported by multiple studies:
1) Temporary retail price reductions substantially increase short-term sales.
2) Higher market share brands are less responsive to promotions and have lower "deal elasticities".
3) Deeper price cuts and more frequent promotions generate greater sales responses than shallow discounts or infrequent deals.
The document also discusses topics that have generated inconsistent findings and important areas in need of further research. It aims to synthesize what is known about how promotions impact consumer purchase behavior based on existing academic literature.
This literature review discusses several past studies on consumer perceptions and behaviors related to retail stores. One study compares consumers' perceptions of superstores versus family-run stores in Bangkok, finding consumers preferred the lower prices, variety and environment of superstores but also wanted restrictions on their expansion. Another examines customers' satisfaction with various marketing factors of the retail chain Big Bazaar in India. A third discusses psychological factors like motivation, perception, learning and beliefs that influence consumers' buying choices.
This document summarizes a research study that examined how Chinese hotels implement Porter's generic strategies of differentiation and cost leadership, and the impact of these strategies on financial performance and customer satisfaction. The study found that differentiation positively influences customer satisfaction in Chinese hotels, but cost leadership does not significantly impact either financial performance or customer satisfaction. The document provides background on Porter's generic strategies, the Chinese hotel industry, prior research, and defines the variables of organizational performance, financial performance, and customer satisfaction in the hotel industry.
Cosnumers intention of buying private label brands in food and grocery retail...IAEME Publication
1) The document is a research paper that examines consumers' intention to purchase private label brands (PLBs) in the food and grocery retail sector in Chennai, India.
2) A survey of 800 consumers in Chennai found that consumers' purchase intention of PLB food and grocery items is influenced most by their perceived benefits, perceived quality, perceived risk, and perceived economic situation.
3) Factor analysis identified three key factors that influence consumers' perceptions of PLBs: perceived risk of PLBs, perceived quality of PLBs, and intention to purchase PLB food and grocery items.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this
region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to
examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling
mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable
producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed
using market structure and performance indicators. The result of the analysis showed that market structure in the
study area could be characterized by weak oligopolistic market with little chance of market participants to influence
market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in
the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening
the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing
farmers’ group marketing with communication access together with least cost storage and transport technologies
should be encouraged to improve vegetable marketing performance.
This document summarizes key findings from research on how sales promotions work. It identifies three main empirical generalizations supported by multiple studies:
1) Temporary retail price reductions substantially increase short-term sales.
2) Higher market share brands are less responsive to promotions and have lower "deal elasticities".
3) Deeper price cuts and more frequent promotions generate greater sales responses than shallow discounts or infrequent deals.
The document also discusses topics that have generated inconsistent findings and important areas in need of further research. It aims to synthesize what is known about how promotions impact consumer purchase behavior based on existing academic literature.
This literature review discusses several past studies on consumer perceptions and behaviors related to retail stores. One study compares consumers' perceptions of superstores versus family-run stores in Bangkok, finding consumers preferred the lower prices, variety and environment of superstores but also wanted restrictions on their expansion. Another examines customers' satisfaction with various marketing factors of the retail chain Big Bazaar in India. A third discusses psychological factors like motivation, perception, learning and beliefs that influence consumers' buying choices.
Impacts of 4Ps towards consumer behaviour by SAITOT K JOEL MBASAITOT KELVIN JOEL
Coca-Cola has long dominated the beverage market through strategic use of the 4Ps of marketing: product, price, place, and promotion. However, competition is increasing. The document discusses Coca-Cola's marketing mix strategies over time for each of the 4Ps and how they have impacted customer behavior. It recommends that Coca-Cola improve social media integration and use LinkedIn more to distribute content about product offerings to strengthen the brand and increase awareness and sales in the face of rising competition.
This study examined how consumers perceive value from retail sale advertisements based on different price presentation formats. A large experiment tested how the size of sale discounts and the method of presenting sale information (e.g. showing regular price and sale price vs just sale price) influenced consumers' perceptions of savings, value, and offer acceptability. The size of discounts significantly impacted perceptions, with larger discounts resulting in greater perceived savings and value. The method of presenting information also significantly influenced perceptions, with formats including regular price and dollar amount off producing the highest responses.
This document summarizes research on the impact of brand preference on consumers in the UK. It discusses how brand preference reveals consumer attributes and influences purchase decisions. Traditional models of brand preference are uni-dimensional and focus on rational attributes, while newer concepts consider irrational attributes and the role of brand experiences in shaping preferences. The document also examines factors that influence brand preference like awareness, familiarity and pioneering brands having long-term advantages in the UK market. Local brands are more flexible than international brands in adapting to local needs.
This document provides an overview of industrial marketing and purchasing relationships. Key points include:
1. Industrial markets are characterized by stability, long-lasting relationships between buyers and sellers, and close interactions. Trust and familiarity develop over time through repeated exchanges.
2. Both buyers and sellers are reluctant to change partners due to costs associated with searching for and evaluating new counterparts, costs of adapting products/processes, and loss of accumulated knowledge in the relationship.
3. Relationships are influenced by characteristics of the interacting parties like their size, experience, and individual representatives as well as environmental factors such as market structure and cultural differences. Over time, expectations become institutionalized.
This study aims to classify the business models of pharmaceutical firms in Thailand. Through qualitative analysis of 12 in-depth interviews, the study identified 7 key themes (market, customer, product, price, strategy, cost management, performance) to classify business models as public health, innovative, or mixed. A public health model focuses on accessible pricing and standard products for public markets. An innovative model focuses on premium pricing and first-in-class products for private/self-pay markets. Many firms use a mixed model balancing public health and innovative approaches. The classification provides guidance for pharmaceutical management in determining suitable business models.
The document discusses consumer behavior and its applications. It defines consumer behavior as the study of how individuals, groups, and organizations select, use, and dispose of products and services to satisfy their needs. There are several key applications of consumer behavior, including improving marketing strategies by understanding how consumers think and are influenced, informing public policy decisions, and engaging in social marketing to change behaviors. Understanding consumer behavior can also help consumers make better purchasing decisions.
This document discusses customer loyalty and satisfaction leading to successful marketing outcomes through increased sales, brand appeal, and strong customer relationships. It also examines analyzing consumer markets through understanding influences on consumer behavior like social factors, cultural groups, and motivation. Finally, it explores global markets and the opportunities and challenges of tapping into developing international consumer bases while ensuring marketing strategies are adapted to different cultural and regulatory environments.
Comparison on ads or not? Influence of Referent on Advertising EffectivenessWaqas Tariq
This study explores how consumers distinguish different products and how to achieve advertising effectiveness. An experiment of 2(high/low ideal brands)x2(with/without comparisons)=4 mixed designs was conducted to verify the advertising effect influenced by the present of comparisons on ads with respect to high/low ideal brands. 50 subjects per design and 200 effective samples were evaluated under descriptive statistics and two-way ANOVA test. The study concludes: the present of comparisons on ads ameliorates Brand Attitude and Advertising Attitude regardless of high/low ideal brand. However, Purchase Intention was not significantly influenced by comparisons on ads.
An application of competitive analysis strategies on organizational competiti...Alexander Decker
This document discusses competitive analysis strategies applied to the University of Nairobi in Kenya. It uses Porter's five forces model to evaluate the competitive environment facing the university. A questionnaire was used to collect data on factors influencing student choice among competing universities. The analysis found that cost and value for money are key considerations for students. Student preferences can strongly impact university choice. Lecturer strikes did not deter students but lecturer reputation and relations skills did influence choice. Buyer power, competition between universities, and lecturer influence were also found to be significant competitive forces for the university. Only substitute options seemed to have less impact on the university's competitiveness. The university needs aggressive policies that are student-friendly to maintain competitiveness.
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document summarizes a study that examined factors influencing consumers' decisions to repeatedly purchase over-the-counter (OTC) pharmaceutical brands. The study used a survey of 118 OTC consumers to test hypotheses based on the theory of planned behavior. It found that direct experience with a brand, price tolerance, brand trust, and opinions of others are important in determining repeat purchase behavior. Specifically, past experience with a brand was found to influence perceptions of trustworthiness, price sensitivity, and purchase behavior, while price sensitivity affected attitudes and intentions to repurchase.
This document provides an overview of key marketing concepts for banks and financial services. It discusses the marketing concept, types of markets, and the evolution of modern marketing. It defines marketing and differentiates it from selling. The document outlines the 4Ps of marketing (product, price, place, promotion), as well as people, process and physical evidence for services. It provides details on various product, pricing, placement and promotion strategies relevant for banks. It also discusses the role of marketing information systems and the types of information needed for effective marketing.
The document provides an overview of marketing information systems (MIS) and international marketing information systems (IMIS).
[1] It defines MIS as a computer-based system that supports marketing decision making through the collection, analysis and presentation of internal and external information. IMIS helps address the dual problems of information abundance and scarcity in global markets.
[2] Six subject areas of information are identified for global businesses: markets, competition, foreign exchange, regulations, resources, and general conditions. Sources of market information include human sources, documents, the internet, and direct perception.
[3] Key components of a computerized MIS are described as data banks, statistical banks, model banks, and display units
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing department’s effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
This document summarizes a research paper that analyzes supermarket pricing strategies. The paper uses a unique store-level dataset to estimate a discrete choice model of pricing strategy selection as a static game. The model addresses three questions: 1) How do local demographics influence strategy choice? 2) Do some chains have advantages for certain strategies? 3) How do firms react to rival strategies? The key finding is that firms tend to choose strategies that match their rivals rather than differentiate, contradicting theories viewing pricing strategy as differentiation.
There’s never been a more exciting time to be in the energy sector. New technologies mean plenty of opportunities for dynamic new businesses. But, if you’re going to stand out from the crowd, you’ll need something more than unbridled ambition and tech-savvy teams. You need a strong brand that helps your business to get noticed by the right people. At Sims Creative we know all about branding for energy businesses.
Managing market competitive strategy successfully an empirical testing of suIAEME Publication
This document summarizes a study that examines the impact of differentiation strategies of Malaysian manufacturing companies on customer satisfaction. It discusses measurements of differentiation strategies, including product, personnel, and price differentiation. It also discusses measurements of customer satisfaction, including product quality, features, design, and delivery. The document reports on reliability testing of the differentiation and customer satisfaction measurements, which showed satisfactory levels of reliability based on Cronbach's alpha coefficients.
The document discusses the distributive approach to studying consumer behavior. The distributive approach views consumer behavior as an act rather than a process, focusing only on the purchase act without considering pre-purchase or post-purchase activities. Some advantages are that research is relatively simple and less expensive, and it can be useful for estimating marketing potential and media selection when independent variables are highly correlated with purchases. However, limitations are that it does not provide insight into why relationships exist or the sequence of events leading to a purchase, so it has limited value for developing marketing strategies.
The document discusses industrial marketing and industrial buying behavior. It defines industrial marketing as marketing products and services to business organizations. It notes there are differences between industrial and consumer markets, such as industrial buyers being fewer in number but purchasing larger quantities. The buying process for industrial customers is more complex and involves multiple influencers within an organization. Key participants in the industrial buying process are identified as the buyer, user, influencer, gatekeeper, decider, and initiator. Different buying situations like straight rebuy, modified rebuy, and new tasks are outlined based on complexity, newness, people involved, and time. Stages of industrial procurement decisions and buying phases are also summarized.
Crocs is a specialty footwear brand established in 2002 and headquartered in Boulder, Colorado. They offer a range of footwear made from proprietary Croslite material for men, women, and kids. Crocs promotes their comfortable and innovative shoes through online ads, magazine prints, and customer testimonials emphasizing the brand's fun and versatile style. In Malaysia, there are 35 Crocs stores divided between east and west regions located in major shopping malls, with prices ranging from RM120 to RM300.
This document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for four major sportswear brands: Adidas, Puma, New Balance, and Reebok. It includes a SWOT matrix for each brand and a chart positioning the brands based on price and innovation.
Impacts of 4Ps towards consumer behaviour by SAITOT K JOEL MBASAITOT KELVIN JOEL
Coca-Cola has long dominated the beverage market through strategic use of the 4Ps of marketing: product, price, place, and promotion. However, competition is increasing. The document discusses Coca-Cola's marketing mix strategies over time for each of the 4Ps and how they have impacted customer behavior. It recommends that Coca-Cola improve social media integration and use LinkedIn more to distribute content about product offerings to strengthen the brand and increase awareness and sales in the face of rising competition.
This study examined how consumers perceive value from retail sale advertisements based on different price presentation formats. A large experiment tested how the size of sale discounts and the method of presenting sale information (e.g. showing regular price and sale price vs just sale price) influenced consumers' perceptions of savings, value, and offer acceptability. The size of discounts significantly impacted perceptions, with larger discounts resulting in greater perceived savings and value. The method of presenting information also significantly influenced perceptions, with formats including regular price and dollar amount off producing the highest responses.
This document summarizes research on the impact of brand preference on consumers in the UK. It discusses how brand preference reveals consumer attributes and influences purchase decisions. Traditional models of brand preference are uni-dimensional and focus on rational attributes, while newer concepts consider irrational attributes and the role of brand experiences in shaping preferences. The document also examines factors that influence brand preference like awareness, familiarity and pioneering brands having long-term advantages in the UK market. Local brands are more flexible than international brands in adapting to local needs.
This document provides an overview of industrial marketing and purchasing relationships. Key points include:
1. Industrial markets are characterized by stability, long-lasting relationships between buyers and sellers, and close interactions. Trust and familiarity develop over time through repeated exchanges.
2. Both buyers and sellers are reluctant to change partners due to costs associated with searching for and evaluating new counterparts, costs of adapting products/processes, and loss of accumulated knowledge in the relationship.
3. Relationships are influenced by characteristics of the interacting parties like their size, experience, and individual representatives as well as environmental factors such as market structure and cultural differences. Over time, expectations become institutionalized.
This study aims to classify the business models of pharmaceutical firms in Thailand. Through qualitative analysis of 12 in-depth interviews, the study identified 7 key themes (market, customer, product, price, strategy, cost management, performance) to classify business models as public health, innovative, or mixed. A public health model focuses on accessible pricing and standard products for public markets. An innovative model focuses on premium pricing and first-in-class products for private/self-pay markets. Many firms use a mixed model balancing public health and innovative approaches. The classification provides guidance for pharmaceutical management in determining suitable business models.
The document discusses consumer behavior and its applications. It defines consumer behavior as the study of how individuals, groups, and organizations select, use, and dispose of products and services to satisfy their needs. There are several key applications of consumer behavior, including improving marketing strategies by understanding how consumers think and are influenced, informing public policy decisions, and engaging in social marketing to change behaviors. Understanding consumer behavior can also help consumers make better purchasing decisions.
This document discusses customer loyalty and satisfaction leading to successful marketing outcomes through increased sales, brand appeal, and strong customer relationships. It also examines analyzing consumer markets through understanding influences on consumer behavior like social factors, cultural groups, and motivation. Finally, it explores global markets and the opportunities and challenges of tapping into developing international consumer bases while ensuring marketing strategies are adapted to different cultural and regulatory environments.
Comparison on ads or not? Influence of Referent on Advertising EffectivenessWaqas Tariq
This study explores how consumers distinguish different products and how to achieve advertising effectiveness. An experiment of 2(high/low ideal brands)x2(with/without comparisons)=4 mixed designs was conducted to verify the advertising effect influenced by the present of comparisons on ads with respect to high/low ideal brands. 50 subjects per design and 200 effective samples were evaluated under descriptive statistics and two-way ANOVA test. The study concludes: the present of comparisons on ads ameliorates Brand Attitude and Advertising Attitude regardless of high/low ideal brand. However, Purchase Intention was not significantly influenced by comparisons on ads.
An application of competitive analysis strategies on organizational competiti...Alexander Decker
This document discusses competitive analysis strategies applied to the University of Nairobi in Kenya. It uses Porter's five forces model to evaluate the competitive environment facing the university. A questionnaire was used to collect data on factors influencing student choice among competing universities. The analysis found that cost and value for money are key considerations for students. Student preferences can strongly impact university choice. Lecturer strikes did not deter students but lecturer reputation and relations skills did influence choice. Buyer power, competition between universities, and lecturer influence were also found to be significant competitive forces for the university. Only substitute options seemed to have less impact on the university's competitiveness. The university needs aggressive policies that are student-friendly to maintain competitiveness.
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document summarizes a study that examined factors influencing consumers' decisions to repeatedly purchase over-the-counter (OTC) pharmaceutical brands. The study used a survey of 118 OTC consumers to test hypotheses based on the theory of planned behavior. It found that direct experience with a brand, price tolerance, brand trust, and opinions of others are important in determining repeat purchase behavior. Specifically, past experience with a brand was found to influence perceptions of trustworthiness, price sensitivity, and purchase behavior, while price sensitivity affected attitudes and intentions to repurchase.
This document provides an overview of key marketing concepts for banks and financial services. It discusses the marketing concept, types of markets, and the evolution of modern marketing. It defines marketing and differentiates it from selling. The document outlines the 4Ps of marketing (product, price, place, promotion), as well as people, process and physical evidence for services. It provides details on various product, pricing, placement and promotion strategies relevant for banks. It also discusses the role of marketing information systems and the types of information needed for effective marketing.
The document provides an overview of marketing information systems (MIS) and international marketing information systems (IMIS).
[1] It defines MIS as a computer-based system that supports marketing decision making through the collection, analysis and presentation of internal and external information. IMIS helps address the dual problems of information abundance and scarcity in global markets.
[2] Six subject areas of information are identified for global businesses: markets, competition, foreign exchange, regulations, resources, and general conditions. Sources of market information include human sources, documents, the internet, and direct perception.
[3] Key components of a computerized MIS are described as data banks, statistical banks, model banks, and display units
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing department’s effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
This document summarizes a research paper that analyzes supermarket pricing strategies. The paper uses a unique store-level dataset to estimate a discrete choice model of pricing strategy selection as a static game. The model addresses three questions: 1) How do local demographics influence strategy choice? 2) Do some chains have advantages for certain strategies? 3) How do firms react to rival strategies? The key finding is that firms tend to choose strategies that match their rivals rather than differentiate, contradicting theories viewing pricing strategy as differentiation.
There’s never been a more exciting time to be in the energy sector. New technologies mean plenty of opportunities for dynamic new businesses. But, if you’re going to stand out from the crowd, you’ll need something more than unbridled ambition and tech-savvy teams. You need a strong brand that helps your business to get noticed by the right people. At Sims Creative we know all about branding for energy businesses.
Managing market competitive strategy successfully an empirical testing of suIAEME Publication
This document summarizes a study that examines the impact of differentiation strategies of Malaysian manufacturing companies on customer satisfaction. It discusses measurements of differentiation strategies, including product, personnel, and price differentiation. It also discusses measurements of customer satisfaction, including product quality, features, design, and delivery. The document reports on reliability testing of the differentiation and customer satisfaction measurements, which showed satisfactory levels of reliability based on Cronbach's alpha coefficients.
The document discusses the distributive approach to studying consumer behavior. The distributive approach views consumer behavior as an act rather than a process, focusing only on the purchase act without considering pre-purchase or post-purchase activities. Some advantages are that research is relatively simple and less expensive, and it can be useful for estimating marketing potential and media selection when independent variables are highly correlated with purchases. However, limitations are that it does not provide insight into why relationships exist or the sequence of events leading to a purchase, so it has limited value for developing marketing strategies.
The document discusses industrial marketing and industrial buying behavior. It defines industrial marketing as marketing products and services to business organizations. It notes there are differences between industrial and consumer markets, such as industrial buyers being fewer in number but purchasing larger quantities. The buying process for industrial customers is more complex and involves multiple influencers within an organization. Key participants in the industrial buying process are identified as the buyer, user, influencer, gatekeeper, decider, and initiator. Different buying situations like straight rebuy, modified rebuy, and new tasks are outlined based on complexity, newness, people involved, and time. Stages of industrial procurement decisions and buying phases are also summarized.
Crocs is a specialty footwear brand established in 2002 and headquartered in Boulder, Colorado. They offer a range of footwear made from proprietary Croslite material for men, women, and kids. Crocs promotes their comfortable and innovative shoes through online ads, magazine prints, and customer testimonials emphasizing the brand's fun and versatile style. In Malaysia, there are 35 Crocs stores divided between east and west regions located in major shopping malls, with prices ranging from RM120 to RM300.
This document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for four major sportswear brands: Adidas, Puma, New Balance, and Reebok. It includes a SWOT matrix for each brand and a chart positioning the brands based on price and innovation.
Important Information About Behavioral Segmentation Modelsesavageus
Behavioral segmentation is a process that groups customers based on how they respond to and use products. It allows companies to identify popular products, determine production levels, and target customers. While it provides useful customer behavior data, behavioral segmentation has limitations as it does not consider all customer needs and relies on models and data that may not fully capture market changes.
This document provides rankings and information on the top 100 specialty retailers in the United States. It begins by explaining how consolidation in other retail sectors is expanding opportunities for specialty stores. It then lists the top retailers by revenue, including Best Buy, Gap, Staples, Office Depot, and others. For each retailer it provides key details like headquarters location, revenue amounts and growth, earnings amounts and growth, number of stores and growth. The document discusses trends in the specialty retail industry and strategies employed by top companies.
Every Day Low Pricing (EDLP) is a pricing strategy where retailers maintain consistently low prices rather than periodically running sales and promotions. While very successful for companies like Walmart, EDLP carries risks and its success depends on factors like steady consumer demand, a cost advantage for the retailer, and customers not waiting for deals. EDLP works best for frequently purchased consumer goods where demand remains consistent and purchases are not timed around sales. Certain seasonal or perishable products are less suitable for EDLP since demand fluctuates more.
This document discusses the effects of India's 2016 demonetization initiative. It begins with an overview and definitions of demonetization. It then discusses the historical precedents of demonetization in other countries. The document outlines the reasons given by the Indian government for demonetization, including reducing black money, fake currency, and pushing for digital transactions. It notes both positive impacts like increased tax collections but also pitfalls like unpreparedness and negative effects on small businesses and jobs. It questions whether demonetization actually achieved its goals of curbing black money and corruption.
VALS framework : explained with coffee brands Shwetal Kadam
This document presents an overview of the VALS psychographic segmentation model. It describes the nine VALS segments - Actualizers, Thinkers, Achievers, Strivers, Believers, Strugglers, Experiencers, Makers, and Survivors - in terms of their values, attitudes, lifestyles, and consumer behavior patterns. For each segment, examples of product preferences are given to illustrate the types of brands and offerings that would appeal to each group. The VALS model provides a framework to understand consumer motivations and target specific segments with tailored marketing strategies.
Michael Porter identified three generic competitive strategies for achieving competitive advantage: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry. Differentiation creates a product or service that is perceived as unique. Focus involves targeting a narrow market segment and achieving either cost leadership or differentiation within that segment.
VALSTM is a marketing tool that segments consumers into eight categories based on their personality traits and resources. It was created in the 1970s and revised in 1989 to focus on enduring personality traits. The eight segments are Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. VALSTM helps companies develop marketing strategies by analyzing consumer preferences and purchase behaviors based on psychology and the interplay between personality and resources.
Detailed description of VALS model with description and illustrative examples for each segment. VALS,Innovators,Thinkers,Believers,Achievers,Strivers,Experiencers,Makers,Survivors
Adidas is a German sportswear company founded in 1949 with the mission of becoming the best sports brand in the world. It has a three-tier organizational structure and is divided into three divisions: Adidas sport performance, Adidas sport heritage, and Adidas sport style. A SWOT analysis shows Adidas's strengths include competitive pricing and brand strength, while weaknesses are a high cost structure and limited product lines. Opportunities exist in new markets and technology, while threats include increased competition and changing consumer trends.
This document provides an overview of Cadbury's product mix in India. It discusses Cadbury's history in India since 1948 and its portfolio of products, which includes chocolate, candy, biscuits, and beverages. The product mix includes brands like Dairy Milk, Celebrations, Oreo, and Bournvita. It also describes Cadbury's product width, length, and depth. Cadbury employs various strategies to manage its product mix, such as line stretching, line filling, and line modernization.
This document is a presentation about product mix and dimensions given by Noman Khan. It discusses the total range of products offered by an organization as its product mix. A product mix includes product lines, which are groups of closely related products, and individual products within each line. The presentation defines several dimensions of a product mix, including width, length, depth, and consistency. It provides examples of product lines and individual products from Unilever brands like Lux, Sunsilk, Dove, Brooke Bond Supreme, and Surf Excel to illustrate these concepts.
HUL has a wide product mix with 11 product lines and 52 total products. Their product mix includes both long-standing products as well as new, recently introduced items. Some older products have been taken out of the market and are no longer being produced or sold.
PPt on Product Mix of HUl
Introduction
Product mix of hul and Bru Coffee
their width,length,depth,consistenct in detail
Bru coffee product and their categorization in detail
1. A company's product mix consists of its various product lines and has four dimensions: width, length, depth, and consistency.
2. Product-mix decisions involve analyzing product lines, reviewing a market profile against competitors, and methods to extend product lines such as line stretching, line filling, and line modernizing/featuring/pruning.
3. Product-mix management is important for companies like Hindustan Unilever to effectively offer the right portfolio of products.
Hindustan Unilever Limited (HUL) is India's largest FMCG company, formed in 1933 as Lever Brothers India Limited. It is a subsidiary of Unilever, with over 20 lakh customers, 2000+ suppliers, and 16,500+ employees. HUL has the largest portfolio of brands in India, spanning 20 categories and touching the lives of two out of three Indians daily. In 2012-13, HUL reported net sales of Rs. 25,206 crores. The company's vision is to earn the love and respect of India by making a real difference to every Indian.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
Developing Relationships; consumers as a source for sustainable competitive a...Kevin Rommen
The world is changing thus business units should also be changing. The influences of social media and internet can no longer be neglected, case in point “Nestlé’s epic social media #fail”1. These changes are giving consumers more and more power in their relationship with business units. Furthermore the enormous amount of products available give consumers more and more possibilities to choose from. For example, at supermarkets in the USA you’ll find in the average week about 110 cereal brands in stock (Shum, 2004). The availability of that amount of different products/product-ranges within an industry raises the question to how business units can create competitive advantage within this enormous amount of competition, especially when the consumer is gaining power?
This document discusses the role of marketing research systems in organizational decision making. It begins with an introduction that defines key terms like marketing research, information, and decision making. It then outlines the objectives and research questions of the study. The literature review discusses what constitutes a marketing research system and its importance in identifying customer needs and informing marketing decisions. The limitations and scope of the study are also mentioned.
This document discusses market segmentation and reviews relevant literature. It begins by defining market segmentation as dividing a market into smaller groups with distinct characteristics and needs. The key bases for segmentation are identified as geographic, demographic, psychographic, and behavioral.
The document then reviews several studies and their findings. One study found that customers are willing to pay more for products tailored to their specific needs. Another argued that any proposed segmentation should meet tests for measurability, accessibility, stability, and substantiality. A third proposed segmenting based on factors causally related to future purchasing behavior.
The benefits of market segmentation are then discussed. Segmentation allows tailoring marketing mixes to specific target segments, which can increase profits and reduce competition.
Marketing capabilities and innovation-based strategies for environmental sustainability: An exploratory investigation of B2B firms by
Babu John Mariadoss a,1, Patriya Silpakit Tansuhaj a,1, Nacef Mouri
Proposal-Market orientation and innovation 20-10-11Sahil Bajaal
This document discusses market orientation and innovation as a new marketing approach for the UK insurance sector. It begins with background information on market orientation and how it can lead to improved innovation capabilities when companies closely monitor customer needs and wants. The document then establishes the rationale for examining market orientation and its effects on innovation within the insurance sector. The aims and objectives section outlines the goals of investigating market orientation tools and their impact on innovation and business performance for UK insurance firms. Finally, the literature review discusses prior research that links market orientation to improved performance, customer satisfaction, and innovation when companies adopt a customer-focused organizational culture.
Impact of Marketing Strategy on Business Performance A Study of Selected Smal...IOSR Journals
This research paper investigates the impact of marketing strategy on business performance with special reference to the selected SMEs in Oluyole local government area Ibadan, Nigeria. The survey research design method was used in this study which involves using a self-design questionnaire in collecting data from one hundred and three (103) respondents. The instrument used in this study is a close-ended questionnaire that was designed by the researchers. Correlation coefficient and multiple regression analysis were used to analyze the data with the aid of statistical package for social sciences (SPSS) version 20. The results show that the independent variables (i.e Product, Promotion, Place, Price, Packaging and After sales service) were significant joint predictors of business performance in term of profitability, market share, return on investment, and expansion.(F(6, 97) = 14.040; R2 = 0.465; P< .05). The independent variables jointly explained 46.5% of variance in business performance. Subsequently, recommendation were made to SMEs operators to produce quality products; charge competitive prices, position appropriately, use attractive package for the product, engage in after sales service and provide other distinctive functional benefits to consumers.
A Business Market Segmentation Procedure For Product PlanningBrittany Brown
This document outlines a market segmentation procedure for business product planning and marketing. It begins by discussing the need for segmentation in business markets to identify groups of customers with distinct needs. It then reviews past research on business market segmentation, noting shortcomings like a lack of agreement on criteria and difficulties in data collection. The document proposes criteria for an effective segmentation model and outlines a multi-stage procedure using past purchase behavior to identify early adopters. It applies this procedure to the US information processing market as an example.
Consumer Behavior and Marketing StrategyChapter 1.docxmaxinesmith73660
Consumer Behavior and Marketing Strategy
Chapter 1
Consumer behavior Definition
Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
Key Aspects Regarding Consumer Behavior
Need extensive information about consumer behavior (i.e., organizations are regularly applying theories and information about consumer behavior)
Need to obtain information about specific consumers of interest (i.e., conduct research)
Key Aspects Regarding Consumer Behavior (continued)
3. Consumer behavior is complex and multidimensional (note: research increases the odds for success but is not a guarantee that you will succeed)
4. Marketing approaches that focus on modifying consumer behavior can involve ethical concerns (e.g., marketing Coca Cola can provide consumers with an enjoyable drink but also a lot of sugar consumption can have unhealthy effects such as cavities in teeth)
Applications of Consumer BehaviorMarketing StrategyRegulatory PolicySocial MarketingInformed Individuals
Marketing StrategyMarketing strategies and tactics are based on explicit or implicit beliefs about consumer behavior.Decisions based on explicit assumptions and sound theory and research are more likely to be successful than are decisions based solely on implicit intuition.Knowledge of consumer behavior can be an important competitive advantage and can greatly reduce the odds of bad decisions and market failures!
Regulatory PolicyVarious regulatory bodies exist to develop, interpret, and/or implement policies designed to protect and aid consumer [e.g., Food and Drug Administration, (FDA)].Effective regulation of many marketing practices requires an extensive knowledge of consumer behavior.
Social MarketingSocial marketing is the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole.As is true for commercial marketing strategy, successful social marketing strategy requires a sound understanding of consumer behavior.
Informed IndividualsMost economically developed societies are referred to as consumption societies. Most individuals in these societies spend more time engaged in consumption than any other activity, including work or sleep.Knowledge of consumer behavior can enhance our understanding of our environment and ourselves. Such an understanding is essential for sound citizenship, effective purchasing behavior, and reasoned business ethics.
Marketing Strategy and Consumer BehaviorCustomer value is the difference between all the benefits derived from a total product and all the costs of acquiring those benefits.It is important that one considers the customer’s perspective.Providing superior customer value requires the organization to do a better job o.
The STP process is an important marketing concept involving segmentation, targeting, and positioning. Segmentation involves dividing the overall market into groups with similar characteristics. Targeting involves selecting specific market segments to focus on. Positioning is how the product is designed to be perceived in the marketplace against competitors. The goal of STP is to guide development of an appropriate marketing mix.
This document summarizes a research paper from the International Journal of Management that examines retailer brand awareness. The paper aims to understand the effect of demographic variables and brand awareness on consumer purchasing behavior. A survey was conducted with 500 respondents in Bangalore, India across various retail locations. The findings show that consumers are interested in knowing the manufacturer of retailer brand products. Consumers were also able to differentiate retailer brands from other brands. Statistical analysis found that demographic variables and brand awareness influence consumer buying behavior. The paper concludes that retailers launching private brands can tap new market opportunities by improving brand awareness through promotions.
This is the ppt translation of the second part of 25 keys to sales & marketing, an audio portable MBA course, which has been developed by New York Times publishing, with the contribution of some of the best known business academicians and practitioners of the contemporary world. This is only a reproduced graphical version of the same with no commercial motive. It has been developed for better self learning and for assistance to the large community of several business practitioners & students, who are in constant pursuit for quality stuff on-line.
This document provides a literature review on developing an STP (segmentation, targeting, positioning) strategy for launching a new product in the European market. It discusses various academic theories and approaches to segmentation, targeting, and positioning. For segmentation, it describes different variables that can be used, including geographic, demographic, psychographic, behavioral, and multi-factor segmentation. It also discusses criteria for effective segmentation like segments being measurable, accessible, substantial and stable. For targeting, it discusses mass, differentiated, and concentrated targeting strategies. For positioning, it discusses developing positioning concepts for each target segment. The document provides an overview of key considerations for developing an STP strategy to launch a new product successfully in a new market.
This document provides a literature review on developing an STP (segmentation, targeting, positioning) strategy for launching a new product in the European market. It discusses various academic theories and approaches to segmentation, targeting, and positioning. For segmentation, it describes different variables that can be used, including geographic, demographic, psychographic, behavioral, and multi-factor segmentation. It also discusses criteria for effective segmentation like segments being measurable, accessible, substantial and stable. For targeting, it discusses mass, differentiated, and concentrated targeting strategies. For positioning, it discusses developing positioning concepts for each target segment. The document provides an overview of key considerations for developing an STP strategy to launch a new product successfully in a new market.
Running Head: BUSINESS 1
MARKETING 6
Is Market Research and Analysis a Must so as to Achieve Business Success?
Briana Castillo Valdes
Grantham University
Introduction
Marketing is one of the factors if not the main factor considered by business before making decisions on investments in new market environments. One of the first things that any business or company should consider doing is the market analysis. Market analysis involves a deep assessment aimed at discovering the potential with the target market (Mouncey, P., 2007). In addition, to discovering the potential of the target market, market analysis provides a real and actual viability of the business or company idea in the market. The analysis also provides critical information on how to start and grow a successful business in the new market. Despite the many benefits associated with market research and analysis have some drawbacks and setbacks towards business and companies.
Discussion
Carrying out of market research and analysis and establishing the required customer satisfaction is a tedious task but very impactful, in the long run. Establishing where your customers originate provides businesses with the appropriate tool for identifying how your target customer will react to your products in the new market. With the information, businesses will be in a good position of identifying and concentrating on the issues which are very important to the target customers. Clear understanding of the industry within which the business lies is very important so as to pay the required attention to the current business trend of the industry. With the information, the current business trend of the industry helps businesses in gain the relevant insight on how position its products or services so as to achieve success (Mouncey, P., 2007). Industrial knowledge also provides businesses with ideas on how to plan in the new market in order to remain efficient since the plan is always based on the actual situation in the market environment. When the business is well satisfied that their ideas will reach the expected level of success, the next activity involves making sure that the target market becomes receptive to the business services and products.
On the other hand, market research and analysis is not a must activity as believed by a majority of the small scale businesses. Market research requires allocating budget for the activity. The budget comes from the generated income. Majority of the businesses have constrained resources in the form of finances to allocate to research. The activity is seen as an addition of more of unwanted expenses to the businesses. If the cost of productions incr ...
1
10
Marketing Management
Assignment Two – MKTM028
Segmenting, Targeting and Positioning (STP)
NAME
UON ID
SUBMISSION DATE
7/9/2022
MODULE
MKTM028
WORD COUNT
2,400
LECTURER
Ms. Sally Lo
Table of Contents
INTRODUCTION 3
ANALYSIS OF SEGMENTING, TARGETING AND POSITIONING 3
Market Segmentation 3
Market Targeting 5
Market Positioning 6
CASE STUDY 8
Vodafone 8
RECOMMENDATION 9
RRFERENCE 11
INTRODUCTION
With the use of target marketing, businesses may zero in on the most promising customer base. Rather of offering a comprehensive product line to accommodate all market groups, some companies may choose to focus on satisfying a narrower subset of clients who have a common business need (Supriono, 2018; Camilleri, 2017). One of the most important parts of any marketing plan is choosing the right target market. These procedures for making choices revolve on the time-tested marketing strategy framework of segmentation, targeting, and positioning (STP)]. Segmenting the market is a flexible strategy. Markets are broken down into subsets so that a corporation may target certain customer demographics with tailored product and service offerings. The word "targeting" refers to the method used to assess and choose the intended audience. Market positioning refers to the perceived position in the market where the company sees the product fitting (Orr et al, 2022). Due to its importance in determining a company's long-term performance, STP has been called "a critical necessity in marketing strategy". This report's primary purpose is to assess existing research on STP and to investigate the field's potential usefulness for industry by contrasting and contrasting a variety of sectors and companies.ANALYSIS OF SEGMENTING, TARGETING AND POSITIONING
Market Segmentation
One of the first steps in making an overall marketing strategy is to do a market segmentation study. This helps you keep track of how the strategy is being made and makes sure the plan will work. Market segmentation is the process of dividing a market into submarkets based on a characteristic of the market. Among the things that make up a market are demographic trends, segment needs, consumer preferences, and regional dynamics. For market segments to be useful, they must be easy to find, easy to tell apart, measurable, important, actionable, and stable. Several academics say that companies have used a wide range of segmentation techniques, from those that are specific to each country to those that create groups on a global scale and then use differences in each country to make the most money. Differentiating segmentation strategies for a given group of customers depends on how the group buys and how well the brands are known in the market. This is true, according to research (Samson, 2016; Leonidou et al., 2002). Cluster analysis software or segmentation trees can be used to look at the different subgroups. The next step is to decide how many market niches the co ...
110Marketing ManagementAssignment Two – MKTM028SantosConleyha
1
10
Marketing Management
Assignment Two – MKTM028
Segmenting, Targeting and Positioning (STP)
NAME
UON ID
SUBMISSION DATE
7/9/2022
MODULE
MKTM028
WORD COUNT
2,400
LECTURER
Ms. Sally Lo
Table of Contents
INTRODUCTION 3
ANALYSIS OF SEGMENTING, TARGETING AND POSITIONING 3
Market Segmentation 3
Market Targeting 5
Market Positioning 6
CASE STUDY 8
Vodafone 8
RECOMMENDATION 9
RRFERENCE 11
INTRODUCTION
With the use of target marketing, businesses may zero in on the most promising customer base. Rather of offering a comprehensive product line to accommodate all market groups, some companies may choose to focus on satisfying a narrower subset of clients who have a common business need (Supriono, 2018; Camilleri, 2017). One of the most important parts of any marketing plan is choosing the right target market. These procedures for making choices revolve on the time-tested marketing strategy framework of segmentation, targeting, and positioning (STP)]. Segmenting the market is a flexible strategy. Markets are broken down into subsets so that a corporation may target certain customer demographics with tailored product and service offerings. The word "targeting" refers to the method used to assess and choose the intended audience. Market positioning refers to the perceived position in the market where the company sees the product fitting (Orr et al, 2022). Due to its importance in determining a company's long-term performance, STP has been called "a critical necessity in marketing strategy". This report's primary purpose is to assess existing research on STP and to investigate the field's potential usefulness for industry by contrasting and contrasting a variety of sectors and companies.ANALYSIS OF SEGMENTING, TARGETING AND POSITIONING
Market Segmentation
One of the first steps in making an overall marketing strategy is to do a market segmentation study. This helps you keep track of how the strategy is being made and makes sure the plan will work. Market segmentation is the process of dividing a market into submarkets based on a characteristic of the market. Among the things that make up a market are demographic trends, segment needs, consumer preferences, and regional dynamics. For market segments to be useful, they must be easy to find, easy to tell apart, measurable, important, actionable, and stable. Several academics say that companies have used a wide range of segmentation techniques, from those that are specific to each country to those that create groups on a global scale and then use differences in each country to make the most money. Differentiating segmentation strategies for a given group of customers depends on how the group buys and how well the brands are known in the market. This is true, according to research (Samson, 2016; Leonidou et al., 2002). Cluster analysis software or segmentation trees can be used to look at the different subgroups. The next step is to decide how many market niches the co ...
The document summarizes a study that explored the effects of various sales promotional tools on consumer purchase intention. Specifically, it investigated the impact of attitude towards price discounts, free samples, coupons, and social surroundings. 150 respondents participated in a survey measuring these factors. The results found that attitude towards price discounts, free samples, and social surroundings had significant effects on purchase intention, while coupons had less influence. Overall, the study aimed to help marketers understand which promotional tools most impact consumer buying behavior.
This document discusses developing competitive marketing strategies and positioning by considering stakeholder perspectives. It defines stakeholders as any group or individual that can affect or is affected by a company's actions, including customers, employees, shareholders, suppliers, and society. The document outlines how understanding stakeholder interests and translating them into effective strategies is challenging for companies. It also discusses different stakeholder impacts, classifications, and how to manage relationships with stakeholders to help achieve marketing goals and competitive positioning.
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Behavioral based segmentation and marketing success
1. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.15, 2012
BEHAVIORAL-BASED SEGMENTATION AND MARKETING
SUCCESS: AN EMPIRICAL INVESTIGATION OF FAST FOOD
INDUSTRY.
Amue Gonewa John* Abieye Horsefall Igwe Sunny R*
Faculty of Management Sciences, University of Port Harcourt, PMB 5323, Choba
*amuejohgonewa@yahoo.com
*chikordi@yahoo.com
Abstract
Segmenting market base on behavioral perspective not only has tremendous potential for growth and profitability but also
poses challenges for both incumbents and new entrants in the fast food industry. By examining the measures of marketing
success from a behavioral perspective, the authors conceptualize three dimensions of behavioral technique that are critical
for superior marketing success in the fast food industry: benefit sought, usage rate, and loyalty status. Demo-psychographic
variables on marketing success (e.g; customer satisfaction, customer loyalty, sales growth, profitability) using data from 156
fast food firms. The result show that benefit sought and loyalty status affect marketing success.
Keywords: Behavioral-Based Segmentation; Marketing success, Demo-psychographic
Introduction
Segmentation is among the earliest concepts in marketing and it has becomes a long lasting strategy in the subject area
(Future and Martins, 2008). Segmentation, the process of dividing the market into groups of customers with similar needs,
and developing marketing programs that meet those needs, is essential for marketing success (Gary and Rangaswamy,
2004). Markets are heterogeneous. Customers differ in their values, needs, wants, constraints, beliefs and incentives to act in
a particular way. Products compete with one another in attempting to satisfy the needs and wants of those customers
(Dowling, 2004). By segmenting the market, firms can better understand their customers and target their marketing efforts
efficiently and effectively. Though this strategy, firms strive to attain a happy middle ground where it does not rely on a
common marketing program for all customers nor does it incur the high costs of developing a unique program for each
customer. However, previous research has suggested that there are variety of measures of segmenting the markets, and
empirical results have not consistently shown that segmentation variables in marketing is always the same even when the
measures are examined (Fazio and Kelly, 2009). Market segmentation is used to identify those potential customers most
accessible on the vending firm’s efforts (Bonoma et al, 1990). They noted that most organization segment the market to
better serve customers, compete more effectively and achieve organizational goals such as profitability. Wikipedia (2011),
the purpose of segmenting a market is to allow marketing program to focus on the subset of prospects that are most likely to
purchase your offering. If done properly, this will help to ensure the highest return for your marketing expenditures.
This article contributes to research and theory of segmentation by developing and testing a model on behavioral-based
segmentation in terms of purchase pattern and loyalty status. The model offered in this article moves beyond focus on target
market alone but offers a model of the processes by which firms select information and make judgment about appropriate
marketing program to achieve marketing success. The role of these behavioral processes involved in the facilitation of these
segmentations is specifically addressed through the model featured in this article. Thus, the model provides a means for
reconciling earlier works that has employed different measures of behavioral base segmentation variables that capture
relevant segments of the market. It extends the methodological work of Precious and Katty (2010) on dimensions of
behavioral segmentation by examine behavior from buying pattern and loyalty status that have not been systematically
examined in previous behavioral based segmentation research.This article also examines the role and impact of economic
and social actors and more specifically, the content of such contextual factors on behavior-based segmentation and
marketing success. While much of the research on behavioral-based segmentation ignores the role of
demographic/psychological factors such as (family life cycle and social class), some research work suggests that demo-
psychographic factors may play a moderating role (Akani, Segel and Lank 2007, Better 2009). This article examines the
moderating role of demo-psychographic factor within the context of the conceptual model of behavioral-based
segmentation and marketing success in the fast food restaurants.
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Prior Research on Behavioral-Based Segmentation
Virtually all prior research on behavioral-based segmentation rests on the premise that knowledge attitude, uses or responses
to a product are the best starting point for building markets segments (Kotler and Armstrong, 2004). Dividing a market into
groups based on consumer knowledge attitude toward usage, actual and intention to use or response to a product. A key
element of this work is the notion that markets or customers are segmented on no other variable apart from the behavioral
characteristics. Thus, dividing the market into groups according to occasions when buyers get the idea to buy, actually make
their purchase, or use the purchased item, dividing the market into groups according to the different benefit that consumers
seek from the product and loyalty status may all be associated with behavioral based-segmentation (Kotler and Armstrong,
2004). Berry and Sarkis (2006) demonstrated that the role of socioeconomic factor moderated the influence of behavioral-
based segmentation. These authors found that socioeconomic factors in terms of level of income and social class influence
behavioral-based segmentation in the form of purchases pattern and loyalty status impact on marketing success in terms of
customer satisfaction customer repeat purchase and customer retention.
Baggozi and Stewart (2005) demonstrate that structural models that include a latent organizing construct an aggregation of
various measures of segmentation bases. Interestingly, these authors find that such a latent construct provides a better fit
even when the variables are behavioral-based. An understanding of the processes that produce summary of these bases is
important for both theoretical perspective it is important to differentiate among alternative segmentation bases.
An important distinction among studies of segmentation variables revolves around adaptive strategy (Smith and Passion
2006: Martin 2007; Alba and Peterson 2009). It consists of the partition of the market with the purpose of selecting one or
more market segments which the organization can target through the development of specific marketing mix that adapt to
particular market needs. Martins (2008) posited that market segmentation need not be a purely adaptive strategy; the process
of segmentation can consist of the selection of those segments for which a firm might be particularly well suited to serve by
having competitive advantages relative to competitors in the segment reducing the cost of adaptation in order to gain a
niche. Porter (1985) concluded by saying that, the application of market segmentation serves the purpose of developing
competitive scope, which can have a powerful effect on competitive advantage because it shapes the configuration of the
values chain.
Bernard and Johnson (2006) demonstrated that product usage and actual behavior such as buying pattern, usage data,
channel ownership, quantities, brand loyalty, attitude, are behavioral based segmentation variables. They further explains
that variables in the first category are unchangeable by the marketer, so the segmentation by this level of variable should
yield adaptive strategies that recognize the reality of consumer characteristics and finding ways to use them to firm’s
advantage. The second level is relatively stable overtime since individuals are not likely to change their values and beliefs
as Rise and Treat (1981, 1990) have categorically stated. At the third level, change is the norm and so this is where the
marketer can influence the target audience (Barsalon and Parker, 2007). This aspect of segmentation is based on actual
customer behavior toward products. Other stories have been represented as a construct between behavior-based
segmentation and marketing success. This relationship is found in several marketing literature (Houston 1993; Martin and
Stewart 2001; Ratnesh War, Barsalou, Pechmann and Moore 2000).
It is well recognized that this segmentation variable is basic dependent (Murphy and Apollos, 2008) and attributes used are
behavioral in nature. Segmenting the market base on benefit sought requires finding the major benefits people look for in
the product class, the kind of people who look for each benefit, and the major brands that deliver each benefit (Gray and
Armstrong, 2004),hence behavior segmentation should be most successful when consumer are grouped base on their need
expectations, hope and benefit sought. The less segmentation is done on benefit sought, the less likely marketing success,
this view is different from other segmentation dimensions in market segmentation research. Prior research has treated
behavior-based segmentation as grouping the market base on life style or personality characteristics, this is not behavior
rather psychographic, the behavioral approach treats the segmentation base on individual behavior characteristics, such as
benefit the consumer is looking for Becky and Fazio (2005) suggests that, segmenting the market base on benefit sought
will lead to increase in marketing responses from the customers. This group of customer that are segmented base on the
benefit sought, the organization will focus on value creation and value delivery to this customer group and it will enhance
marketing success. this explanation is consistent with the view that behavior-based segmentation provide a stronger, basis
for explaining the relationship between predictor variable and criterion variable the primacy of behavior- based
segmentation approach as demonstrated by Becky and Fazio (2005) and as a necessary condition for the subsequent
examination of behavioral-based segmentation measures, this article seeks to replicate this effect. Thus.
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Hypothesis 1:
Segmenting a market based on benefit sought, customer
expectation and hope will have greater effect on marketing
success measures in terms of repeat purchase, customer
satisfaction, sales growth and profitability.
Markets can be segmented into light product users, medium and heavy product users. Heavy users are often a small
percentage of the market but account for a high percentage of total consumption (Gary and Armstrong, 2004). Firms usually
prefer to attract one heavy user to their product or service rather than several light users, using a common measure of light
(LU) medium (MU) and heavy users (HU), Schmitz and Bowen (2008) demonstrated that heavy product users are higher
consumer of products thus measures of segmenting market base on behavior such as light user(LU) medium user (MU) and
heavy user(HU) should demonstrate that market segmented based on usage rate results in increase customer patronage
(Davis and Heinekes, 2003). A single heavy user typically might spend heavy naira value on products of the company.
When the goal associated with segmenting market base on user rate most especially on heavy user of the product, this will
most likely bring about more money and that’s what market the cash registers ring (Gray and Armstrong, 2004; Rick 2011;
Show, 1998.) thus:
Hypothesis 2:
Segmenting a market base on usage rate in the form of light user,
medium user and heavy product user, will results to good marketing
success (profitability, sales growth, customer satisfaction).
Market can be segmented base on consumer loyalty. Consumer can be loyal to product can be divided into groups according
to their degree of loyalty (Gray and Armstrong, 2004).several studies have emphasized the importance of segmenting
market base on loyalty status (e.g, Gregoire and Tripp, 1995) a model that is often used to explain behavioral-based
segmentation in term of loyalty status (Bagozzi and Martin 2006). This model includes three general concepts; brand
loyalty, stores loyalty and company loyalty. The inclusion of brand loyalty represents an important addition to the model.
Consumers are completely loyal-they buy one brand all the time. Others are somewhat loyal-they are loyal to two or three
brand of a given product or favor one brand while sometime buying others. A company can learn a lot by analyzing loyalty
patterns in its core consumer, and detect which brand are most competitive with its own, and this will enable the company to
improve its positioning strategy which will lead to effective marketing performance. By segmenting a market base on
loyalty status, company can see customers who are shifting away from it brand, the company can learn about its marketing
weaknesses (Blane, 2007). Once this is done, the firm can adopt an appropriate corrective measure where marketing
weaknesses will be converted in to marketing success. Micah (2005) also demonstrated that non-loyal customers of the
product, the company may by appropriate strategy attract them by putting its brand on sale. When this is done, the non-loyal
consumers will be more likely loyal customers (Kelly and Johnbull, 2006). Thus,
Hypothesis 3
Segmenting a market base on loyalty status in terms of loyal to brand, stores
And company will result to: (a) higher customer loyalty and passion (b) given a
Positive segmentation, company can improve its positioning strategy against
competitors than those that do not.
The Role of demo-psychographic Influence
Demo-psychographic factors are primary drivers of the behavior-based segmentation, there remains the question of how this
factor moderate the influence of this segmentation dimension on effective marketing. Katty and Sonks (2004) examined the
effect of demographic factor on behavior-based segmentation. They investigate the impact of family life-cycle in terms
single men on usage rate. A single heavy user, typically a single male, who doesn’t know how to cook, might spend much
money a day visit the food centre as many as possible. Heavy users come more often, they spend more money thereby
increase cash sales of the company. Katty and Sonk’s study finds that family life cycle moderate the success. To this finding
may be the result of repeated purchase by the heavy user of the product. Customer repeat purchase results in increase in
sale volume and profitability of the company.
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These findings are consistent with the view that family life cycle which is a demographic factor moderate the influence of
behavioral based segmentation on effective marketing performance outcomes. Thus, the few studies that have examined
demo-psychographic effect within behavioral context suggest that family life cycle has the potential to influence marketing
success. Such influence, however, appears to be contingent on the degree of the demo-psychographic factors. While these
studies are useful and indicate an important role of demo-psychographic effect on the influence of behavioral based
segmentation on marketing success, they do not examine the extant of the moderating the demo-psychographic variables,
nor do they examine the explicative effect in other context. In fact, Katty and Sonks (2004) demonstrated the moderating
effect of demo-psychographic factors on the influence of behavioral variables of segmenting the consumer market. There is
also reason to hypothesize the relationship between the moderating effects of demo-psychographic factor on the influence of
behavioral based segmentation on marketing success. Thus:
Hypothesis 4a:
Social class will positively moderate the influence
of usage rate and loyalty status on marketing
success.
Hypothesis 4b:
Family life cycle as a demo-psychographic factor, will significantly moderate
the influence of benefit sought and usage rate on effective marketing
performance outcomes.
Marketing Success
The question of what determines marketing success has the subject of a considerable amount of research in marketing
(Colin and Wilson, 2008). For the purpose of this work, we will limit ourselves to an overview of the sorts of factors that
contributes to the success of marketing activity. Although it is tempting to identify the characteristics of marketing success
and to believe that the straightforwardness adoption of these will lead to business success, it is also potentially simplistic
and dangerous since it can lead the view that this formula for success. Nevertheless there are certain elements that appear to
contribute to effectiveness, and it is in this way that we stated below the various dimensions of marketing success.
A market is said to be effective with a strong customer orientation across all aspect of the business and a fundamental
recognition of the important of the customer (Brown, 2006). With a better customer focus and delivery of superior value
customer will be satisfied, therefore customer satisfaction is one of the dimension of measuring marketing success. The
issue of customer orientation has been discussed by Doyle (1994) in terms of what he refers to as left and right-hand
organizations. Satisfied customers are the source of all profit and shareholder value. Customers can choose from whom they
buy, and unless the firm satisfies them at least as well as competitors, sales and profits will quickly erode. Customer
satisfaction should therefore be a prime objective and measure of the performance of marketing (Doyle, 1994).
The market-driven organizations have their primary focus the objective of satisfying customers. This involves defining and
understanding market segment, and then managing the marketing mix in such a way that customers’ expectations are fully
met or exceeded. A customer focus organizations has customer satisfaction has its hallmarks. A satisfied customer remains
loyal to the organization and serves as an advocate; this will increase the sales growth and profitability of the organization.
These serve as measures of marketing effectiveness (Thomas, 2008).
The section that follows reports the designs and results of a study that tested these hypotheses.
METHOD
The populations for this study consist of customer of fast food restaurants in Nigeria; we selected the fast food restaurant
firm in four big cities in Nigeria as the context for our research study. The cities were Port Harcourt, Lagos, Kano and
Abuja, these cities were selected because they represented places where this business is successfully operated, and with the
nature of the industry we constructed our sampling frame using multiple sources. We obtained a list of fast food restaurants
from the Nigeria chamber of commerce and industry. This process resulted in a sampling frame of 250 firms.
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Data collection
We combined qualitative and quantitative research approaches. The qualitative part was intended to provide foundation for
the quantitative study. We designed and conducted it to verify and validate the homological net, which served as a check to
ensure that the model was appropriately bounded. Secondly, the qualitative approach aided in questionnaire development,
verifying basic approach to operationalizations and providing the basis for item refinement, finally, the qualitative
component involved pretesting the questionnaire. For the qualitative component, we interviewed senior managers from four
(4) fast food restaurants located in Port Harcourt, Lagos, Kano and Abuja in Nigeria; each interview lasted between 20
minutes and 30 minutes. The results indicate that the conceptual model adequately represented the determinants of
marketing success, and basic operations were appropriate. For pretesting, we administered the questionnaire to 10
participants and observed first hand completion time; obstacles in the questionnaire flow, and comprehension problem in
items or instruction.
On completion of the questionnaire, we debriefed the respondents to refine the questionnaire further.
The main data collection proceeded in several steps. Our field interview in the fast food restaurant firm revealed that the job
title of the executive who was most knowledgeable about strategy implementation varied widely from one firm to another.
Thus, we identified the key informant for each firm by telephone contact. In some firms, the key informants were marketing
managers, in others, they were customer service managers and in still other, the chief executive officers were the key
informants. The screening phase yielded 300 potential respondents. The next phase of data collection consisted of a pre-
notification letter that reminded respondents of their agreement to participate and notified them of the coming survey
package. In a week later the mail survey commenced: the survey package included a cover letter that described the content
and assured confidentiality with a N2, 000 attached as a response incentive, a copy of the questionnaire, and a postage-paid
self-addressed return envelope. We also support by sending an identical survey package, which we mailed 2 week later to
respondents who had not responded.
The data collection yielded 200 responses, 156 were usable, for a response rate of 52% in terms of sample composition, 20
percent of the responses were nationally recognized fast food restaurants found in the four cities of Port Harcourt, Lagos,
Kano and Abuja, and the remainders were locally-based firm. This composition mirrors the industry split and indicates that
our data represents the fast food firm reasonably well in Nigeria.
Measures
The model presented in figure I included six concepts. The choice of benefit sought concept as an attribute for behavior-
based/segmentation is unique in our model. Several studies has shown that benefit sought can be express as quality of
service needed (e.g. Peterson 2003) thus, we include item like service, economy, convenience and speed as benefit sought
from product (Shaley et al. 2005).user rates was measured using three items that were almost identical to the items used by
Nwachukwu (2001).the measure of loyalty status was almost identical to the measure applied by Nwachukwu (2001) and
Bekawa and Charles (2003). We measure social class using four measure of social class, the items were similar to those
used by Davidson (1998). Family life-cycle was measure by three items similar with the work of Peters (2005). Finally, we
measure marketing success using a four-item that we adapted from Badoka (2004) study. All the above measures are
represented in Table 1
The participants indicated their agreement with a set of statement using a 5-point Likert-type scale that ranged from strongly
disagreed to strongly agree. The mean, standard deviations and reliabilities of the variable of studies are shown in table 1.
The reliability of family life-cycle in the study was lower than the acceptable /75 limit that Nunnally (1978) suggested. For
other variables, the reliability was acceptable (see table 1).to test the discriminate and convergence validity of the variables
in our model we included all item in a factor analysis (basic component) that included six factors, the analysis showed the
factors explained 83 percent of the variance in the material (see table 1).
We find that the convergence validity of benefit sought scale was somewhat low, with a factor loading of .58 for the first
item (see table 1). This item also has low discriminate validity, with a factor loading of .33 on the marketing effectiveness
factor. Thus, to investigate the reliability and validity of our variables further, we applied the procedures that Agarwal and
Karahanna (2000) suggested, we estimated our complete measurement model using Amos 4. We calculated inter variable
correlations, shared variances, and composite reliability, which we show in table 2.
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Results
Data must be subjected to statistical test before it can convey any significant meaning. We therefore present the results of
the statistical test of the hypotheses in this section. The correlation metric in Table 2 shows the relationship between
behavior-based segmentation and marketing effectiveness.
To test hypotheses 1, which posits that segmenting a market based on benefit sought customer expectation and hope will
have greater effect on marketing success. The hypothesis sought to examine the relationship between BS and ME. We used
the spearman’s rank correlation technique to test the hypothesis. The result (rho ꞊ 0.265 P<0.05)(see table 2) shows that
there is a significant and positive relationship between benefit sought and marketing success.
Several reasons may account for this significant positive relationship. To begin with as pointed out in the study, managers
tend to look for ways to improve their company’s profit as it is often used to assess their performance. To remain in
business and make profit, organizations segment their market based on benefit sought, customer expectation and hope once
this is done, organization serves the market segment with product and services that are of benefit to the customers. The
finding indicates that segmenting market based on benefit sought will be more profitable than those that do not segment
their market base on customer benefit, customer expectation and hope.
We used the spearman’s rank correlation technique to test Hypothesis 2. The result (rho ꞊ 0.387 P > 0.05) (see table 2) show
that there is a relationship between usage rate and marketing success. This implies that segmenting a market base on usage
rate I terms of light users, medium and heavy users will result to good marketing success. The result implies that
segmenting a market base on usage rate and marketing success depend on one another. While market segmentations base on
usage rate refers to dividing the market into light, medium and heavy product users. Marketing success is the ability on the
part of management to survive. We therefore accept the hypothesis which states that, segmenting a market based on usage
rate will results to good marketing success.
To test Hypothesis 3, which posits that segmenting a market base on loyalty status in terms of loyalty to brand, loyalty to
stores and loyalty to company, will result to higher customer loyalty. The result (rho ꞊ 0.369, P > 0.05) (see table 2) shows
that there is significant positive relationship between loyalty status and marketing success. This means that marketing
success will be higher with higher loyalty status. The literature review of the present study suggested a positive relationship
between loyalty status and marketing success (Kotler and Armstrong, 2004), several reasons may account for this
significant relationship. Dividing buyers into groups according to their degree of loyalty will affect marketing success.
Some consumers are completely loyal-they buy one brand all the time. A company can be more effective by analyzing
loyalty patterns in its market. We therefore accept the hypothesis. The finding suggests that fast food restaurants that study
its customer loyalty status and marketing success.
In Hypothesis 4a to 4b, we hypothesized that social class will positively moderate the influence of usage rate and loyalty
status on marketing success (hypothesis 4a), we also suggests that family life cycle will moderate the influence of benefit
sought and usage rate on marketing success (hypothesis 4b). Test results in table 2 reveal that SC will positively moderate
the influence of UR and LS on ME and also same for FLC on BS and UR on ME. We have offered our interpretations of the
results on the moderating variables and their roles in the relationships between behavioral-based segmentation and
marketing success.
Dicussion And Implication
In this paper, we attempted to offer some understanding on marketing success through behavioral-base segmentation
perspective. We advanced dimensions of behavioral-based segmentation, identified the dimensions segmentation, and tested
their influences on marketing success outcomes specific to fast food Restaurant Company. We conceived social class and
family life cycle as moderating the influence of behavioral-base segmentation on marketing success. Thus, we took a view
of marketing success in the fast food business and we posited that managers should focus on business-related metrics to
access their marketing success in the fast food restaurants business. Our results indicate notable findings with respect to
segmenting markets based on behavioral perspective.
Our result show that segmenting markets based on benefit sought, expectations and hope, is critical for an organization to
deliver superior value to its customers. In this customer-driven and dynamic market environment. There is a pay off in
delivering values to a particular market segments base on benefit sought, when customers buy value. They are satisfied and
satisfied customers make a repeat purchase which result to increase in sales growth and profitability. We argued that
segmenting a market based on usage rate provides the firm with the ability to take advantage of market opportunities. Our
results show that, as we hypothesized, the interplay between user rate and family lifecycle is quite complex. Segmenting a
market into light medium and heavy product users will enable the firm to take advantage of heavy users. Heavy users are
often a small percentage of the market but account for a high percentage of total consumption. A young single who doesn’t
know how to cook, might spend as much as ₦5,000 in a day at fast-food restaurant and visit more than 20 times a month.
Heavy users come more often they spend more money. Firms do all they can do to keep them satisfied with every visit they
also target light users with their advertisement and promotions thereby increasing their marketing success.
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While we do not find statistical support for the interaction between loyalty status and family-life cycle, the results indicate
marginal evidence (rho ꞊ 0.051 P > 0.05) that dividing buyers into groups according to their degree of loyalty, the more
likely its marketing success. This reiterates the common notion that, by studying its less loyal buyers, the company can
detect which brands are most competitive with its own, and it will enable the firm to position its brand. Finally, our study
also documents the impact of social class and family life cycle on the influence of behavior-based segmentation on
marketing success. Demo psychographic variable (social class and family life cycle) moderate the effect of behavioral-
based segmentation (benefit sought, usage rate and loyalty status) on marketing success (profitability, growth, customer
satisfaction), thus enhancing the firm’s survival.
Contribution and Implication
Our research provides several insights for managers who want to implement competitive strategies. First, a focus on
behavioral-based segmentation would provide the requisite impetus required for marketing success. We recommend that
managers should use multiple segmentation based rather than limiting their segmentation analysis to only one or a few
variable. However, fast food industry will need to make structural adjustment to institutionalize these multi-segmentations
techniques.
We identify, conceptualized and measure three dimensions for behavioral based segmentation and use data from the fast
food restaurants to contribute new empirical insights. Our notion of examining marketing success from segmenting market
based on behavioral perspective brings forth the theoretical insights of the fast food industry, in that segmentation of the
market into benefit sought, usage rate, and loyalty status gives the firms appropriate competitive strategy to compete in the
ever changing market that is customer-driven. Finally, we extend the literature on family life cycle by developing and
testing a valid and reliable measure of family life cycle. We advance a framework for managers to understand how to
deliver value to their customer by segmenting market based on benefit sought, customer expectation and hope. When
customers buy hope, benefit and expectations they become satisfied. When customers are satisfied, they make repeat
purchase and increase sales growth and profitability. Once these behavioral variables are properly segmented, managers can
tap into them and execute strategies that will result to marketing success.
Future Research
The fast food industry provided a worthwhile setting for this article; therefore the behavioral bases of segmentation involve
(e.g.; benefit sought, usage rate, loyalty status) are particularly relevant. However, the setting is relevant unique and thus
ensure generalizability. The effect of behavioral-based segmentation should be examined in other business areas like; banks,
tourism, cinema, schools etc. thus, the pattern of findings exhibited in this study need to be replicated in other business
contexts.
With respect to measurement of market effectiveness variables, our study is limited to subjective measures of effectiveness
based on key informant data, therefore, the result are constrained by issues related to common method variance. Subjective
measures based on key informant data could also suffer from bias. Given that new and improved objectives measures of
marketing success are now available, future research using objective data could add value to our findings. Future study
should consider a longitudinal study to delineate more clearly the causal attributions hypothesized in our model.
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Figure 1 CONCEPTUAL BACKGROUND
Demo-psychographic
Social Class
Family life-cycle
H4a
Behavioral-Based Marketing Effectiveness
Segmentation
• Customer
Benefit Sought Satisfaction
• Customer Loyalty
Usage Rate
H4 b • Profitability
Loyalty Status
• Sales Growth
Source: Researcher’s review of literature, 2011.
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TABLE 1
Basic Components Analysis of all Measurement Items
Variable/communalities(c)and loadings C 1 2 3 4 5 6
5 Benefit sought
I need quality product .75 .20 .18 .11 .15 .58 .33
Using ”service” as benefit sought .70 .21 .16 .10 .13 .75 .07
Economical .92 .24 .15. .12 .16 .88 -.09
Convenience .86 .23 .17 .09 .17 .81 .10
Speed .96 .25 .20 .13 .14 .90 .10
1 User rates
Light user .69 .20 .15 .10 .12 .09 .11
Medium user .70 .21 .16 .12 .11 .10 .12
Heavy user .98 .23 .18 .09 .10 .11 .13
4 Loyalty status
Non-loyal .71 .24 .16 .11 .09 .12 .14
Medium loyal .85 .23 .14 .12 .08 .12 .09
Strong loyal .82 .20 .12 .10 .10 .10 .10
absolute loyal .88 .17 .13 .09 .07 .08 .12
3 Social class
Lower lower .75 .20 .17 .09 .14 .16 .04
Upper lower .80 .21 .16 .08 .12 .17 .06
Working class .82 .22 .19 .10 .10 .15 .08
Upper upper .99 .24 .16 .06 .09 .14 .10
2 Family life cycle
Young single .74 .21 .18 .07 .12 .12 .07
Married with no children .67 .23 .16 .05 .10 .10 .09
Married with children .80 .24 .20 08 .11 .13 .10
6 Marketing effectiveness
Customer satisfaction .90 .20 .16 .09 .08 .09 .08
Customer Loyalty .83 .25 .17 .12 .06 .07 .10
Profitability .97 .21 .13 .11 .05 .10 .12
Sales Growth .90 .20 .14 .09 .07 .13 .11
Eigen valves 10.70 3.63 1.81 1.35 1.00 0.60
Variance explained 52.60 11.30 6.85 4.93 2.95 2.35
Mean 3.21 4.40 2.43 3.61 3.72 2.25
Standard deviation 1.70 1.68 1.80 1.50 1.40 2.00
Cronbach’s alpha 0.92 0.90 0.86 0.82 0.95 0.77
64
10. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.15, 2012
Table 2
Inter variable Correlations Shared Variable and Composite Reliabilit-y
Variable Statistics Behavioral Benefit Usage Loyalty Marketing Customer Customer Profitability Sales Marketing Social Family
Based Sought Rate Status Effectiveness Satisfaction Loyalty Growth Variable Class Lifecycle
Segmentation
Spearman Behavior-based correlation coefficient 1.000 .83 .90 .86 .92 .77 .95 .88 .92 .75 .96 .90
Sig (2-tailed)
rho Segmentation N 156
Correlation coefficient .512** 1.000
Benefit sought sig. (2-tailed) .000
N 156 156
Correlation coefficient .630** .297** 1.000
Usage Rate sig. (2-tailed) .000 .001
N 156 156 156
Correlation coefficient .735** .200* .125 1.000
Loyalty Status sig. (2-tailed) .000 .027 .212
N 156 156 156 156
Correlation coefficient .126 .265** .387** .369** 1.000
marketing sig. (2-tailed) .130 .003 .000 .412
Effectiveness N 156 156 156 156 156
Correlation coefficient .141 .234** .344** .082 .231** 1.000
Customer sig. (2-tailed) .111 .007 .000 844 .000
Satisfaction N 156 156 156 156 156 156
Correlation coefficient .109 .256** .224* .512** .410** .371** 1.000
Customer sig. (2-tailed) .216 .003 .010 .005 .000 .000
Loyalty N 156 156 156 156 156 156 156
Correlation coefficient .014 .062 .016 .421** .420** .171 .153 1.000
Profitability sig. (2-tailed) .870 .482 .074 .300 .000 .081 .081
N 156 156 156 156 156 156 156 156
Correlation coefficient .201 .300 .016 .111 .312** .101 .125 .125 1.000
Sales Growth sig. (2-tailed) .003 .000 .006 .000 .000 .000 .001 .000
N 156 156 156 156 156 156 156 156 156
Correlation coefficient .391** .201** .182** .250** .421** .535** .612** .213 .612** 1.000
Moderating sig. (2-tailed) .000 .001 .001 .004 .000 .020 .001 .000 .002
Variable N 156 156 156 156 156 156 156 156 156 156
Correlation coefficient .125 .102 .111** .312** .072 .113 .029 .031 .015 .234** 1.000
Social Class sig. (2-tailed) .004 .023 .003 .121 .005 .003 .007 .000 .000 .008
N 156 .156 156 156 156 156 156 156 156 156 156
Correlation coefficient .284** 076** .152** .051 .137** .122** .162 .089 .212** .195** .141** 1.000
Family-life sig. (2-tailed) .000 .150 .321 .000 .007 .033 .022 .212 .000 .026 .004
Cycle N 156 156 156 156 156 156 156 156 156 156 156 156
Source: survey date, 2011
Key: ** correlation is significant at the 0.05 level (2-tailed)
65
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