The Market Segmentation And Different Levels Marketing Essay

The aim of this report is to persuade why a particular business idea will be successful for a Christmas market. The Christmas market will have different stalls which mean that there will be some kind of competition. In this Christmas market all profit made will be given to the charity. The charity that we have chosen to raise money for is the Pepper foundation. This charity is for children who are suffering from terminal illness. This organisation is a registered charity which helps those unfortunate.

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The charity aims to “Pepper aims to fund a team of five registered Paediatric Nurses, a Family Support Services Manager and a Pepper Children’s Support Facilitator, to provide professional care for children” ( Pepper, 2012)

Segmentation and targeting

Philip Kotler et al suggests that market segmentation means dividing the market up into different groups of buyers who have different needs; these buyers might demand different products or services. A company identify different ways to segment the market. Market targeting is when a company evaluates each market segment and then selecting one that they have been attracted to in order to enter the specific market. Marketing positioning is when a business sets the competitive positioning of a a product or a service and then creating a detailed marketing mix

Market segmentation and different levels

Markets include different buyers, and these buyers may differ in one way or the other. Customers have different needs, wants, resources, location, buying attitude and different buying ways. Therefore a business uses “market segmentation in order to break down large markets into small markets for example; buyers differ in age and gender.

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Levels of market segmentation

Purchasers have different and unique needs and wants, each buyer might have different market. Market segmentation can be carried out at many different levels. Businesses can try out different segmentation such as no segmentation ( mass marketing), complete segmentation (micromarketing) or something that can fit in between ( segment marketing or niche marketing)

Mass marketing

Mass market is where the product is exposed to a wide range of people rather than just a specific group. In mass marketing, products that many people want or need are advertised to a larger audience rather than a selected audience. Mass communication is vital so that the product is successfully advertised to larger consumer audience

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The market segmentation is targeted at university students, professors and visitors who are more likely to be aged from 18 onwards this means that the Christmas market is aimed at a niche market. Niche market is a specific target market. Niche marketing concentrates on a small targeted audience which may meet the needs and wants of a particular group of customers for example a business might decide to target their product to people of different age, gender or class.

The principles of marketing (2012) suggests that In marketing we can identify four types of markets which are

Consumer markets

Organizational markets

Government markets

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Institutional markets

Consumer market is for people who purchase products for their own use for example someone might purchase furniture for the house.

Organisational markets are when organisation purchasers goods for the operation of their business. For example, the doctors might buy materials etc. to provide service to their patience.

Government markets these are local, state and national governments taken together require for the largest demand for goods and services.

Institutional markets- these markets include institutions like universities, hospitals and other similar organisations

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Relate to above

When identifying the type of market it was found that the type of market that best suited the Christmas market is the organisational market. This is because the Christmas market has been going through the process which is to purchase good so that the business can operate effectively. Therefore purchasing heat sensitive mugs was the purchase made in order for ‘Thermas’ to run successfully on the day.

—ƒ  insert what we doing for the Christmas market … relate to it

There are four different concepts under which businesses conduct their marketing activities such as the production, product, selling , marketing and marketing concepts.

Production concepts – production concept is when consumers favour the available products to them and that are highly affordable and therefore a business should focus more on the production process of the business.

Product concept- product concept is the ideaology that consumers tend to shop from a business whose products are high in quality, high in performance and have the best features. In this sense a business should focus on the product concept and try to improve their products occasionally.

Selling concept- this concepts shares the perspective that consumers will not buy from a business who are not selling a large scale and using effective promotion.

Marketing Concept – the marketing concepts holds tthe belief that business should be able to identify the needs and wants of the targeted market that they have chosen in order to achieve the organisational goals and aims.

Product and service

The product that will be provided is going to be a personalised thermal mug. Before this was decided it was essential to carry out primary research and secondary to find out what customers demand and want. Primary research includes surveys, questionnaires and focus groups. Through primary research it was established that a mass of people would buy heat sensitive mugs. Secondary research was also carried out. This meant that research was carried out via the internet. Through this we found that “heat sensitive mugs” were quite a popular demand. After carrying out a focus group many students were ready to buy the thermal mugs.

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Price

It is vital to decide how much an organisation will be selling their product for. A business cannot just sell their product to cheap or expensive as they have to make a profit. If a business sells their product expensive and it is not really worth that value then they might not even sell. However there are some businesses that just break even, which means that they don’t make a profit or loss. In order to make profit it was decided to sell the thermal mugs for £7. After researching into other business and finding out that Black which specialises into mugs were selling their mugs for the same price the only difference there was is that their mugs were plain black whereas the mugs that was going to be sold are personalised heat sensitive ones. On the other hand,

The pricing on the day

After carrying out primary research it was found that many businesses who specialises in products such as mug personalisation sell their mugs up to £6-£6.50. This meant that it was possible on the day to price the mugs low if no profit was made. After considering this issue it and coming to a decision it was determined to sell the mugs for £7-£7.50

Competitors- After carrying out primary and secondary research it was found that mugs were highly demanded by customers. The research included the analysis of mugs and what their reviews were. (see appendices)

Promotion

It is important for a business to choose the right type of promotion which can be affective so that customers are attracted to the product and service a business is offering. In order to raise awareness Bucks New University will be playing a role in this. The university has its own ways of raising awareness as they have access to Digital Marketing; this helps them to create leaflets in order to achieve the best type of promotion. Leaflets and posters will be designed in order to help attract the public. However social sites such as FaceBook and Twitter play a great part in promoting products and services. This means that Facebook and twitter will be used in order to raise awareness about.

The design of the stall

Businesses need to make sure that their shops, stalls and outlets are attractive as they can be. This is believed to make a first impression on any customer that walks past. Similarly, in order to attract the public to the Mug Stall it is essential to make it attractive so this will be done by displaying a logo which will be designed effectively using the access to digital marketing that is provided so that it can catch the customer’s eye.

Conclusion

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