Marketing Plan: Phase II
The Toro Company has invented a new lawn mower. They call it “Scout”. Scout is capable of mowing 45,000 square feet of lawn. Scout has a rechargeable battery, to save on gas, and works around an invisible fence and sonar. Scout is a new lawn tool that every home with a yard full of grass needs. Toro, a respectable company, is known for its affordable and well made products. Identify the segmentation criteria that will affect your target market selection
Toro Chooses to segment the market as they believe they will provide better value and service to one or more segments than to mass market. The lawn equipment business is very competitive and Toro wants to grab as much of the market as possible. They also believe segmenting will be more profitable. Toro first has to develop its target market dimensions based on Exhibit four-seven Relation of Potential Target Market Dimensions to Marketing Strategy Decision Areas. Potential Target Market Dimensions Effects on Strategy Decision Areas:
1. “Behavioral needs, attitudes and how present and potential goods and services fit into customers’ consumption patterns. Affects Product (features, packaging, product line assortment, branding) and Promotion (what potential customers need and want to know about the firm’s offering, and what appeals should be used).” 2. “Urgency to get need satisfied and desire and willingness to seek information, compare and shop. Affects Place (how directly products are distributed from producer to customer, how extensively they are made available, and the level of service needed) and Price (how much potential customers are willing to pay).” 3. “Geographic location and other demographic characteristics of potential customers. Affects size of Target Markets (economic potential), Place (where products should be made available), and Promotion (where and to whom to target advertising and personal selling), “(Perreault, W. D., et.al, 2011, pg99, exhibit four and seven).” This can be further broken down as Behavioral- a customer’s needs, benefits sought, thoughts, rates of use, purchase relationship, brand familiarity, kind of shopping, type of problem solving, and information required. Geographical would include the region of the world or country and the size of the city. Demographic would include income, gender, age, family size, occupation, education, ethnicity and social class. Toro will want to market to people who mow their own lawns and mostly homeowners, or to small contractors. The Scout will not fit with large lawns, commercial properties or golf courses, yet! It fits with residential lawns. Toro will also need vendors or contractors to sell the Scout. They can decide which stores should carry this new product by segmenting. Some criteria could be the kind of relationship they have to the vendor, the type of customer the vendor deals with, the location of the vendor, if the customer needs services, the type of buying situation, and purchasing methods. Toro will need vendors who are in a location that will be in contact with its consumer target market. Stores are easily accessible and in good traffic locations. A vendor who already carries Toro products and has a good customer base with Toro users will be optimal. These customers are already familiar with the quality of the Toro brand and will most likely to try the Scout. In order to get a good start and overcome ethical hurdles, Toro can use a seven step approach to market segmentation. The seven steps are best practices and are: "1. Select the broad product-market, 2. Identify potential customer's needs, (both consumer and business), 3. Form initial homogenous sub-markets, Identify determining dimensions, 5. Name possible product markets, 6. Evaluate product market segment behaviors and 7. Estimate the size of each product-market segment,"(Perreault, et.al, 2011, pg., exhibit 4-11). This helps balance between marketing too narrowly, the same old thing, or...
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