Q1
Market segmentation is whereby a market of potential consumers is divided into segments or groups depending on the various characteristics. Market segmentation is important because it enables marketers to personalize marketing campaigns efficiently. When the target market of a company is divided into segments, there is an efficient use of resources and time since targeting is not done to individual customers. When customers with similar characteristics are grouped together, they are more likely to responds to the same marketing strategies, which become cost-effective for marketers. The marketers can target the specific audience they want to address efficiently. Through market segmentation, there is the mitigation of risks of marketing campaigns becoming ineffective or unsuccessful. The needs, interests, and locations of the consumers are some of the aspects considered during segmentation, which ensures that consumers are targeted well specifically. Market segmentation captures the key characteristics of the consumers, which makes the personalization of strategies effective. It increases the probability of success compared to the creation of generic campaigns that targeted to all segments. Segmentation of the market enables the market to prioritize the target audiences of the company. The information generated from segmentation can assist in determining the customers that are likely to buy a product than others. Marketers can put their resources and attention on the highly prospective customers increasing the success chances of the marketing campaigns.
Some of the ways that the companies can segment the population include demographic and geographic. Demographic segmentation consists of a variety of factors such as gender, income, race, and age. Gender is essential in segmentation since men and women have different behaviors and attitudes. The income of an individual is crucial in market segmentation by determining the various income abilities of the multiple consumers. Market segmentation is dependent on the race of the consumer since different races have different cultures, needs, and interests. The abilities and wants of an individual vary depending on age and thus the need to differentiate the age groups. Geographic segmentation identifies the tastes and willingness to purchase products by consumers from different regions, which is ultimately different.
Q2
The decline in sales to the company can be associated with issues with brand equity. The consumers seem not to familiarize themselves with the brand. There lacks enough brand awareness, and the consumers can’t relate to the products of the company, such as the recognition of the brand name, logo, packaging, and associates with the company. After the company identified its brand with the major music band, the consumers didn’t receive it well and could relate to the company. The reputation of the company is quite low, and that’s why the outcome of the song was a lot of jokes about it. The reputation of the company has a direct relationship with the sales rates and the success of an organization. The share of the voice of the company is low, which has led to a decline in the market share of the company. The brand has no control over the conversations in the online space reducing brand awareness and power in the market. The relationships of the consumers with the brand usually affect their purchases and loyalty. According to (), 71% of customers say that they are more likely to buy products from a brand that they associate with on social media platforms.
Raising awareness of the brand is a marketing strategy that is highly likely to increase revenues and build the business. I would recommend that the company grow its brand awareness by the creation of content such as publishing high-quality materials that address the needs of the consumers. Establish a position of trust by the users by ensuring that there is a site where people can have their questions answered about the industry in general or the specific company. The company should identify the personas of the buyers to ensure they understand who they are targeting. The company should aim to increase awareness of the brand and build its reputation. Through social media, it is easy to build brand awareness since the company can connect with people, exchange ideas, and communicate effectively about the brand.
Q3
For brand A, I would recommend conducting a research on the target market that wish to enter before selecting the prices. The company should understand the characteristics of the target market, such as demographics. Demographics entail various factors such as age, gender, income, and race of the individuals. Various age groups have a different perception and willingness to pay for chocolate. According to (), the age group has various consumption of chocolate per day, such as the age groups 4-10 years, 11-18 years, and 19-64 years consume 9gms, 12gms, and 9 grams per day, respectively. The income of the consumers profoundly affects their ability to pay for the products. Identifying the various demographics will ensure that the company understands its target market and realizes the ability and willingness of the target market to pay for the chocolate. If the target market has a high ability and willingness to pay, then the company can set the price of higher. In segmenting the market, it is easier to determine the product line through the identification of the tastes and preferences of the consumers and willingness and ability to purchase chocolate. To achieve the largest possible target market, the company can create various types of chocolate-related to brand A, such as dark chocolate, white chocolate, and milk chocolate. The price of these product lines should remain relatively similar.
For brand B, I would recommend that the company identifies various factors such as the production cost, distribution cost, the base of the target consumers, and the competitors’ prices. In determining the production and distribution costs, the company will ensure that the price is set to realize higher profit margins. It is vital to identify the target customer base since it is more effective to set a relatively higher price if the customer base is smaller to generate maximum profits. The competitors pose a high risk of realizing sales , thus the need to know their prices. Therefore, the company can set relatively competitive prices. For the product line, the company should create products with relatively different prices, which realizes higher margins and generates more growth i.e., upmarket stretch. There should be noticeable but small differences between the products, such as distinctive packaging and compositions of the chocolate.
Q4
The ALS ice bucket challenge was a successful marketing campaign because it was personalized and relevant. The campaign was personal since it included a personal story that made people feel obligated to accept it. The authenticity of the campaign was relatable since it relied on ordinary people. The campaign was relevant and included hashtags related to the cause of the campaign. Henceforth, it increased brand awareness and more comfortable to track the buzz. The campaign used the new pull strategic tactics in marketing through the use of social media. The challenge took on to social media advertising, where people tried out the challenge and posted it igniting others to do the same. The realization of the digital channels helped the spread of the campaign. The ALS Association tracked and analyzed the results of the campaign. They released the amounts of money donated compared to the previous year encouraging people to continue with the campaign.
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