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Antecedents
of Target Marketing
“Markets can be segmented using a single variable,
such as age group, or several variables, such as age group, gender, and
education. Although it is less precise, single-variable segmentation has the
advantage of being simpler and easier to use than multiple-variable
segmentation.” (pp 129) In this case, the Vice President for Marketing for Numi
Organic Tea describes their target consumer which is “Female, Educated,
probably college educated, loves tea, buying 2 or 3 boxes a month, generally
green tea drinker who is interested in Organic food”. They came to this
conclusion probably through online panels, and market research and see what
kind of customers were interested in learning more about their product.
As mentioned earlier, Numi Marketing team as
identified college educated females who would be interested in Organic foods.
As Cofounder and CEO of Numi Organic Tea describes it “ In positioning of our
brand, we really wanted to target a certain type of customer base from the
natural health food stores to fine dining restaurants in hotels to university
coffee shops”. So their plan is to promote their product where their target
consumer would frequent. So of course having their tea sampled at health food
stores like Whole Foods would be the perfect start. Additionally having that
tea available in fancy restaurants to be offered after dinner would be a great
way to introduce it to people who haven’t sampled it before and that would
create a demand when that customer goes grocery shopping and actively seeks out
that particular tea.
As The VP of Marketing says in the video “It’s about knowing
your consumers and where they are shopping, and making sure where they are
shopping, they can find our brand”.
Demographic segmentation as described in the
textbook as “segmenting markets by age, gender, income, ethnic background, and
family life cycle”. (pp 129) So they are identifying college educated females,
so that means they would be over 22 yrs of age. College educated means they
would probably have a good job and would fall into a higher income bracket and
can afford the 2/3 boxes of tea each month. Their lifestyle would be something
that they care about what they are putting into their bodies, so they only go
for organic foods and shop at places like Whole Foods etc.
As described in our book as
“the process of grouping customers into market segments according to the
benefits they seek from the product” (pp 134). In this case these consumers
wants something that is a better alternative to coffee and is good for your
body, and it is also sources through fair trade, so its good for the world.
Family Life Cycle as
family life cycle is described as “a series of stages determined by a
combination of age, marital status, and the presence or absence of children”
(pp132) As the VP of Marketing explains
“ So consumers we are reaching out to and cultivate more are definitely college
students” and “ we hope to have them as tea-drinkers throughout their lives” .
So their strategy is to introduce these organic, good-for-you teas early in
their lives, and whatever phase of life they go through, Numi teas would still
be a part of their lives.
Income as described by
our textbooks as “popular demographic variable for segmenting markets because
income level influences consumers’ (pp 131) wants and determines their buying power”.
So consumers who go to high end spas and fine restaurants would obviously be in
the higher income level and if they find Numi tea there, then they will
automatically associate Numi tea with luxurious items.
Product
Differentiation as described by our book as “a positioning strategy that some
firms use to distinguish their products from those of competitors’ (pg 140).
Concentrated
Targeting, because “If the chosen segment is too small or if it shrinks because
of environmental changes, the firm may suffer negative consequences.” (pg 139).
As mentioned in the video, Numi Teas has had a conflict where some think that
anything that’s available in luxury spas or fine restaurants shouldn’t be
available at Costo, but Numi Teas believe that this premium products should be
accessible to anyone who is interested in consuming a “presmium product at an
affordable price”.
“Optimizers consider numerous
suppliers (both familiar and unfamiliar), solicit bids, and study all proposals
carefully before selecting one.” ( pg 136)
So these companies are looking for premium teas which they know their
customers would enjoy.
Perceptual mapping is “a means of displaying or graphing, in two or
more dimensions, the location of products, brands, or groups of products in
customers’ minds”. (pg 141) So Numi Teas can simultaneously reach both
consumers, ones who go to high end spas and fine restaurants and ones who shop
for value at Costco because what they both have common is to find a “premium
product” that Numi Tea provides.
References
Lamb, C. W., Hair, J. F., & McDaniel, C.
(2012). MKTG5. Mason, OH:
South-Western, Cengage.
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