10. Identifying the Target Market

Question 1

What is segmentation and what is the aim?

Answer 1

The division of the market into distinct subgroups, each characterized by tastes, and requiring a specific marketing strategy.

The aim is to choose a segment of a reasonable size who have similar preferences or needs.

Question 2

What are the 4 variables considered in segmentation?

Answer 2

1. Geographic - where the consumer lives
2. Demographics - age, gender, ethnicity, family status, income, education, occupation, socioeconomic status
3. Psychographic - lifestyle, personality, values & beliefs, interests
4. Behavioural

Question 3

What are some examples of behavioural variables in segmentation?

Answer 3

• What benefit do they want from the wine? (quality, value, prestige?)
• When do they buy?
• Where do they buy?
• How often do they buy and in what volume?
• Level of brand loyalty?
• Level of interest in wine?
• Early or late adopter?

Question 4

What are the only universally recognized segments in the wine industry?

Answer 4

Low involvement consumers - low interest, stick to same products, spend less

High involvement consumers - high interest, willing to try new products, spend more

Question 5

What segments did Hall create?

Answer 5

1. Wine Lovers - high interest, knowledge, income, and education
2. Wine Interested - high interest, moderate knowledge, university-educated, moderate income
3. Wine Curious - moderate interest, limited knowledge, moderate income and education; may tie wine to social situations

Question 6

What segments did Wine Intelligence create?

Answer 6

Detailed segments for different major markets, ie. US, China, UK, called “Portraits” (pg 87 examples)

Question 7

What is market research and when is it useful?

Answer 7

The gathering and analysis of data about a particular segment to understand what they want and need (ie. a focus group).

Useful before beginning a project and in creating a marketing strategy as it can verify or deny the segmentation exercise.

Question 8

What factors should be outlined in advance of market research? (3)

Answer 8

1. What info is needed?
2. Who will be considered?
3. What method of research?

Question 9

What are some methods of market research (5)?

Answer 9

1. Survey
2. Focus group (group discusses and comments on topic)
3. Interviews (one-to-one)
4. Observing Behaviour
5. Secondary Research (data available to the public or report from agency)

Question 10

What are the 2 goals of observing consumer behaviour?

Answer 10

Finding out needs and wants, or assessing the success of a campaign, in order to potentially tweak

Question 11

What are some methods of observing behaviour?

Answer 11

• Watching how consumers move in a space
• interacting with consumers
• Loyalty cards that track purchases
• Web analytics

Question 12

What are some influences on consumer behaviour?

Answer 12

• Marketing can direct customers where to buy
• Marketing highlights selling points, influencing the comparison process
• Ambiance: lighting, music, decor