Marketing Report (Target Market)

Topics: Marketing, Demographics, TV dinner Pages: 6 (1915 words) Published: March 18, 2013
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 “Frozen Ready Made Meals” are age, income, lifestyles and population density of the locations of potential consumers. These variables have the most relevance to the product. As the product is to be marketed towards people who live alone, it is important to know what age group the product can best serve their needs. Due to the price of our product, income is another variable that is important to clearly identify the market segmentation. Lifestyles will be a variable that will need to be thoroughly researched for the marketing of our product due to our nutritional benefits and gluten/dairy free options. Population density will need to be researched as we will be selling the product not only via the internet, but in IKEA stores around the country, and need to be focusing on areas where the product will be easy and convenient to purchase. 2. Profile Market Segments

The next task in the Market Segmentation phase is to develop a market segmentation profile. This profile will define the characteristics and create a picture of the typical customer in the segment. The particular segments that would have an interest in the product are as follows. Potential Segmentation Group Name| Segment Profile|

Elderly, Inactive| * Living in suburban, low populated areas. Inactive lifestyle. * Limited spending, very tight with their money. * This group relies on tried and tested ways of doing things, reluctant to try anything new| Young, high achievers| * Very social and very physically active. Living in high populated areas and main cities. * Extremely busy, environmentally friendly and health conscious. * Likely to try a new product, and have the money to take this risk. Well-travelled and have grown up with significant respect for ethnic and cultural diversity.| Middle-aged divorcees| * Age group of 35-50, with an average to high income that live alone due to a divorce and not having children. Living in highly populated areas such as cities. *...
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