The paper 'Marketing Segmentation, Bargaining Powers of the Buyers" is a perfect example of a marketing assignment. Marketing segmentation involves dividing the customer into a division with similar needs and wants, this allows better allocation of the firms’ resources which are limited. Due to limited resources, a firm is expected to make choices on the best way to serve a specific group of customers (Wedel and Kamakura, 2012). Benefits; Allows a business to reach the consumer with similar needs and wants in a precise manner. Reduce the risks of the decision on where, when and how the products or services will be marketed. Increase and enhance market efficiency through directing the efforts to a specific based on their characteristics. The market is able to bring the product to the final customers based on their wants and needs.
This makes the customer more satisfied giving the business a competitive edge over the competitors. Q1-B: Toothpaste utilizes target marketing. This is where the marketer is able to differentiate among varying market segments and choose the segments which to develop the products for. The products are customized based on each of the segment.
Segmenting a toothpaste will be based on the specific similar reasons why people’ s needs the toothpaste. This includes sensitive teeth, yellow teeth, cavities and age. Family life cycle will be used in making toothpaste for the grown-ups and that of children. Toothpaste for children have a less strong taste and are packaged in attractive materials. They are also less strong to ensure they do not damage children gums. For the grown-ups, the toothpaste will be packaged in environmentally friendly packaging and will have stronger taste matching the needs for adult users.
This is demographic segmentation where toothpaste is marketed to all sizes and ages. Another form of segmentation to use is to benefit segmentation. This is through aspects such as teeth whitening, sensitive teeth, fresh breath, cavity protection and tartar control. Customers who have these conditions will be attracted to the toothpaste. An example is Sensodyne which is a toothpaste developed for the market segment with sensitive teeth. The producer has adequate knowledge on this segment and hence develops products specifically for them. Behavioral segmentation will be used based on the behavioral of the consumers, usage and the process of decision making.
This will involve making toothpaste that will appeal to trendy youth of those who wants to identify with a certain popular niche. It may involve the use of brand ambassadors who influences certain behaviors or trends in society. Psychological segmenting will be used to divide customers based on their opinions and lifestyle (Wedel and Kamakura, 2012). The psychological aspects of the customer will count in this case. Customer social standing and their lifestyles will be the main aspects used. Q2- A: Is a term that was first used by Michael in his book “ Competitive Advantage: Creating and sustaining superior performance’ ’ (1985).
It is defined as activities performed by an organization and is linked to the organization competitive position. Value chain analysis involves describing the activities that occur within and around an organization and connecting them to the competitive strength of an organization. The value which every activity adds to the organization is evaluated. The ability to manage particular activities and linkages between them act as a source of competitive advantage.
It involves primary and support activates (Porter, 2001).