Identifying the Target Market / Setting the Objectives Flashcards
What will a successful segmentation exercise help with?
- Identifying a consumer who might buy a particular product
- Making a realistic estimate of how much consumer may be willing to pay
- Where it is likely to sell
- How best to market
Segmentation
What are four sets of variables used in segmentation?
Geographic
Demographic
Psychographic
Behavioural
WSET says last 2 more predictive of similarity
Segmentation: Pyschographic
What are 4 psychographic characteristics (example of each)?
- Lifestyle (e.g. go out a lot)
- Personality (e.g. show off wealth)
- Values and beliefs (e.g. organic)
- Interests (e.g. in particular region)
Segmentation: Behavioural
What are 5 variables based on observable behaviour?
- Benefit wanted from wine (e.g. VFM)? When do they buy (e.g. special occassions)?
- Where do they buy? How often?
- Level of brand loyalty
- Level of interest in wine
- Early vs. late adopters
This is inaccurate in practice
Segmentation
Describe Hall’s 3 consumer groups
What is the criticism
- Wine-lovers - great interest & knowledge. High income and education
- Wine-interested - great interest, moderate knowledge, uni educated & moderate income
- Wine-curious - moderate interest, limited knowledge. Moderate income & medium education. Wine is to maintain social relations.
Criticism: Too simplistic to link wine interest & knowledge to income and education
Segmentation
Describe high and low involvement consumers
High involvement - Deep interest, try new products, spend more
Low involvement - Little interest, stick to few products, spend little
Segmentation
What is a typical disadvantage of wine segmentation models?
Result of academic studies with small sample size, don’t extend to market as a whole
Market Research
What is market research?
The gathering and analysis of data about a particular market segment in order to understand what they want or need
Market Research
3 important things to clarify before starting research
- What info is needed
- From whom will data be gathered
- How will research be carried out
Market Research: Observing consumer behaviour
Name 5 methods of observing and recording consumer behaviour
- Observing how consumer move around a shop
- Interacting with consumers
- Store loyalty cards
- Web analytics
- Academic studies (e.g. into music)
Market Research: Observing consumer behaviour
How can marketing influence consumer behaviour?
- Focus attention on something people need or want
- Direct people to where they can buy
- Highlight selling points of product
- Influence evaluation of alternatives
No idea why all this was put in this section
What four areas should the objectives cover?
- Type of marketing strategy (mass / niche / multiple)
- Aims of marketing strategy (e.g. launch, sales, awareness etc)
- How will success be measured
- Within what time period should objectives be achieved
