Multi-Segment Targeting Strategy

In the article, "What Is Multi-Segment Marketing?" by Helen Akers, it states that marketing is a discipline that attempts to identify and serve the unique needs of separate segments. Throughout research, it is known that marketers divide potential customers into groups based on their own characteristics. Some of these traits include professions, income levels, geographic groups, lifestyles, aspirations, and even perceptions. It is stated that when companies target more than one segment, then they are experiencing with multi-segment marketing. Some of their segment needs include that when companies decide to bring a product or service to the market, then they will look for needs that are either not being met or that could be met in a different way.
To read more visit: http://smallbusiness.chron.com/multisegment-marketing-25419.html

As discussed in our textbook, multi-segment targeting strategy is a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each (pg.141). Multi-segment targeting offers many potential benefits to firms, including greater sales volume, higher profits, larger market share, and economies of scale in manufacturing and marketing. Another potential cost of multi-segment targeting is cannibalization, which occurs when sales of a new product cut into sales of a firm's existing products.

I feel like cannibalization can be a huge advantage and disadvantage to the firm because in one way it is willing to help the firm out because there is a new product on sale and everyone would be so drawn into it and would research more about it. But, then it can also be a disadvantage because if the company is trying to sell their product and there is a new product that is on sale then, most likely that product would target the customers more. The company would be dealing with competition and that is not what they would want to do. Also, having a multi-segment target has its benefits because of what they have to offer: greater sales volume, higher profits, and larger market share. All these factor into what makes the company become more and more successful.

Do you think multi-segment targeting strategy can have disadvantages? What do you think they are?

Response to Jonathan Tomachick

Has a sale ever persuaded you to buy something you didn't expect to at first? Do you find yourself doing the same when you shop? Have you ever had to cut another shopping trip short because of splurging for sale items the week prior?

 Yes, a sale has persuaded me to buy something that I didn't expect to at first. I was watching television and I remembered watching commercials of someone advertising to sell snuggies; the advertisement was so convincing and persuading that it caught my attention and I wanted to buy the product and test it out. For example, a sleeved blanket just sounds so convincing and interesting to me. It also advertised that it is very comfy and you are able to do anything because both of your hands will be free. It also stated that you will be very warm when using this product. I remember that I would tell myself that I would never get this product but now, I am second guessing myself because it seems like a product that I would be very satisfied with.

Yes, I also find myself doing the same thing when I shop because I would think to myself if I would really need the product that I want to purchase. But, in the end if the sale is worth it I would end up buying it because I know for my favorite stores such as Hollister and Abercrombie; their clothings are most times expensive and if the clearance of the sale goes down by an effective amount then I would most likely purchase the item. No, I have not found myself to cut another shopping trip short because of splurging for a sale item the week prior because I am the type of person who likes to shop and I can basically do it for numerous hours. I also believe that shopping is somewhat of my stress reliever because it makes me feel better. Shopping is what I do best and I would never pass up on that opportunity to do it.

Is there a certain percentage of sale that would influence you to change your mind in purchasing an item? For example, if the product was 25% off as opposed to 50% off? Which one would you end up picking?

Maslow's Hierarchy of Needs

As discussed in chapter 6, Maslow's hierarchy of needs is a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization (pg. 106). It is noted that as a person fulfills one need, a higher-level need becomes more important. Physiological needs are the most basic needs for a human; such as food, water, and shelter. These needs are needed in order to survive. In my opinion, I think that the physiological needs are the most important because they are a necessity to life. Without those needs, nobody would be able to survive. Safety needs are needed for security and freedom from the pain and discomfort. This need helps marketers sell their products. For example, everyone would want to feel safe at all times. Mostly, for the ones who are ill; they would want to know that they can count on the doctors and nurses in the hospital to take care of them. Social needs include love and the sense of belonging. Love is always needed because it is the acceptance without regard to one's contribution. Self-esteem needs include self-respect and a sense of accomplishment. Esteem needs include prestige, fame, and recognition of one's accomplishments. I also believe that esteem is very important because it sets an image for oneself and it is very significant to have self-respect for yourself. The highest human need is self-actualization; which means that "people are what they feel they should be." I feel as if this need is the one who mostly convinces the consumers to buy their products.

If I had to narrow it down, the top three Maslow's hierarchy of needs that are the most significant to my life are the physiological needs, safety needs, and the social needs. Physiological needs are the most essential for me because without them I would not be able to survive in the world because no one person is able to survive without food, water, or even shelter. Those things are the most important in everyday life. Safety needs are also important because everyone needs to feel secure and protected. In my opinion, I would like to feel safe everywhere I go because that is the type of person I am and I would get paranoid if it was any other way. Social needs are also a huge factor in my life because without my friends and family I would not know what I would do. They are always there for me whenever I need them and in the end I know that I can always lean on them if I am feeling down and need someone to cheer me up.

What three Maslow's hierarchy of needs are essential to your life? Which one do you think is the most important to you?

Response to Will Ferguson

Question: Do you think music gets marketing to consumers the same way products do?

Yes, I do believe that music gets marketing to consumers the same way products do because there are different types of music out there that target different people. I also believe that the different types of music someone listens to describes their personality and what type of person they are. Different types of music can target a wide variety of people based on their age, race, and even gender. For example, Justin Bieber targets most teenage girls as opposed to males. People who listen to country music are considered to be hillbillies or Southern people but that is just stereotyping.

I am the type of person that listens to any type of genre music but, I am not a fan of heavy metal or country. There is something about their music that does not satisfy me and I just can't stand listening to it. Part of me feels like that is just my personality and it just says what type of person I am. The type of music that I listen to also depends on my mood that day and that second. For example, I would listen to upbeat music if I am excited about something or when I am at the gym because it motivates me more to listen to that type of music. I am also that type of person who would also put some songs on replay. For example, Taylor Swift is the person who I go to to make me feel better, somehow whenever I feel down I would listen to her songs and everything will be alright and she makes me in a better mood.

Do you have a artist/band that you listen to whenever you are feeling down and they are able to fix it?

New Products

As discussed in chapter 11 of our textbook, new products are important to sustain growth, increase revenues and profits, and replace obsolete items. New products has a variety of meanings that ranges, but in reality the term has several "correct" definitions. New product is a product that can be new to the world, to the market, to the producer or seller, or some combination of those (pg. 179).

There are six categories of new products: new-to-the-world products (discontinuous innovations), new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products, and lower-priced products.

An example of a new product is that Pepsi was introduced a new skinny can at the New York Fashion Week. An article that I found interesting on this product is "Diet Pepsi's New Skinny Can: A Brand Heavyweight?" Jonathan Asher, senior vice president at Perception Research Services International stated: "This package is different in a way that so suits the product proposition. It's a sleek, thin, slender, stylish can. That imagery is so fitting for a diet soft drink." I feel like this new product of Pepsi is targeted more towards women because the package makes them look at the product more differently and closely and will somehow convince them to buy the product. I believe they are getting more women customers based on the new packaging of this product especially since they introduced it at a New York Fashion Week. By them introducing it right there and then, they are trying to catch the target market's eye and attention.

"Diet Pepsi's New Skinny Can: A Brand Heavyweight?" article can be found at http://www.prsresearch.com/prs-insights/article/diet-pepsis-new-skinny-can-a-brand-heavyweight/

http://i2.cdn.turner.com/money/2011/02/08/news/companies/pepsi_skinny_can/pepsi_skinny.03.jpg


Which category of new product do you think is the most popular, why? Do you think by looking at the new product of Diet Pepsi with its new packaging it would target you to buy the product?

Response to Nick Vita

Yes, I  think that the NFL should stop advertising on the uniforms because as Nick has said, it is really sad that they are just advertising these uniforms because they need to find a way to make more money. Granted this is a great idea to advertise because customers are willing to buy these jerseys because these professional sport teams are popular and these sports teams are targeted more towards men. I feel as if these sport teams should try harder to make something work then advertising jerseys to help pay for their incomes.

 Do you think that this is a fair way to earn their incomes? What other options should they take into consideration instead of advertising their uniforms?

Exporting

As discussed in chapter 5 of our textbook, exporting is selling domestically produced products to buyers in other countries (pg. 75). The company is able to sell directly to foreign importers or buyers. Exporting is determined to be the least complicated and least risky alternative. The United States is the world's largest exporter.

For example, there are three types of intermediary. The most common one is the export merchant (buyer for export) which is treated like a domestic customer by the domestic manufacturer. The second type of intermediary is the export broker who plays the traditional broker's role by bringing buyer and seller together. The third type of intermediary is export agents because they are foreign sales agents/distributors who live in the foreign country and perform the same functions as domestic manufacturers' agents that help with international financing and also shipping.

In my opinion, I feel like the buyer for export is the most important because they assume all the risks and sells to other countries based on its own. They are taking such a huge risk on this but they know that in the end it is worth it because different countries admire their products because they want to purchase it.

Which intermediary do you think is the least important? Which do you think is the most important as to getting more customers?