Marketing Report (Target Market)
BETHANY CURIK CURBD1203 DAYOUNG CHAE CHDAD1103
MINGFENG PAN PANMS1203 XINGXING ZHOU ZHOXD1203
PROGRESSIVE PRESENTATION WEEK 8
The target marketing process is an approach to marketing based on identifying and developing an offering for those segments of the total market that the organisation can best serve (Elliott et al, 2012, p. 182.) This process can be broken up into 3 sections – Segmentation, Targeting and Positioning. IKEA will be introducing a new range of healthy frozen pre-prepared meals and must go through this process to discover which segment the product will best serve.
SEGMENTATION
1. Identify Segmentation Variables
Market Segmentation is the first stage of the target marketing process. There are two steps involved in this stage – identifying segmentation variables and profiling the markets segments. Segmentation variables are characteristics that buyers have in common. These can be broken into 4 categories – demographics, geographic, psychographic ad behavioural. It is important to make variables easy to measure, readily available and linked closely to the purchase of the product in question (Elliott et al, 2012, p187.) According to a study conducted by Engelberg et al, “demographic information is frequently used for segmentation purposes because it the easiest data to acquire and has multiple uses.” While there are some undeniable demographic patterns to purchasing decisions, these variables alone are not enough to segment the market. Market segmentation appears to yield more homogeneous subgroups when psychographic and behavioural factors are combined with demographic variables (Boslaugh, 2005,p.1). Variables such as behavioural and psychographic are usually harder to measure due to data being harder to acquire, define and record, but are still important to segment the market. “Psychographic segmentation is invaluable for shaping positioning strategies, product development, and communication decisions.”
The variables chosen for
MINGFENG PAN PANMS1203 XINGXING ZHOU ZHOXD1203
PROGRESSIVE PRESENTATION WEEK 8
The target marketing process is an approach to marketing based on identifying and developing an offering for those segments of the total market that the organisation can best serve (Elliott et al, 2012, p. 182.) This process can be broken up into 3 sections – Segmentation, Targeting and Positioning. IKEA will be introducing a new range of healthy frozen pre-prepared meals and must go through this process to discover which segment the product will best serve.
SEGMENTATION
1. Identify Segmentation Variables
Market Segmentation is the first stage of the target marketing process. There are two steps involved in this stage – identifying segmentation variables and profiling the markets segments. Segmentation variables are characteristics that buyers have in common. These can be broken into 4 categories – demographics, geographic, psychographic ad behavioural. It is important to make variables easy to measure, readily available and linked closely to the purchase of the product in question (Elliott et al, 2012, p187.) According to a study conducted by Engelberg et al, “demographic information is frequently used for segmentation purposes because it the easiest data to acquire and has multiple uses.” While there are some undeniable demographic patterns to purchasing decisions, these variables alone are not enough to segment the market. Market segmentation appears to yield more homogeneous subgroups when psychographic and behavioural factors are combined with demographic variables (Boslaugh, 2005,p.1). Variables such as behavioural and psychographic are usually harder to measure due to data being harder to acquire, define and record, but are still important to segment the market. “Psychographic segmentation is invaluable for shaping positioning strategies, product development, and communication decisions.”
The variables chosen for