· Prepare a 3–5-page executive report that analyzes target market segments, evaluates the effectiveness of a marketing strategy, and recommends an alternative strategy.
Note: You are encouraged to complete the assessments in this course in the order in which they are presented.
A given product may meet the needs and wants of a variety of customers; however, different types of customers may think about and use the product in different ways.
Market segmentation is an information-driven analysis that enables a company to tease out these differences among customers. In this analytical process, a company gathers detailed information about customer needs and wants in relation to how customers use, or could use, a product. The emphasis is on identifying customer characteristics.
Questions to Consider
As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.
- Because customers’ needs vary, the same product may be used in different ways by different customers. If the product is fully capable of meeting all of the varying needs, the marketing challenge may be to make sure that each market segment receives the right messages about the product. In some cases, though, some attributes of the product may be critical to some customers and less important, or even irrelevant, to others. In these situations, what alternative product marketing strategies might be most effective? What limitations might the company face in attempting to meet the divergent needs involved?
- In addition to product capabilities, some companies may segment their markets based on characteristics such as demographics or psychographics. To explore this concept further, apply this thinking to a personal situation. Consider a product you have purchased. To what different market segments is this product marketed? To what extent do you see yourself fitting the characteristics of any of those market segments? How did the company reach or communicate with you? To what extent has the product met your personal needs?
The resources provided here are optional and support the assessment. You may use other resources of your choice to prepare for this assessment; However, you will need to ensure that they are appropriate, credible, and valid. They provide helpful information about the topics in this unit. The MBA-FP6012 – Integrated Global Marketing Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the left navigation menu in your courseroom, provide additional resources to help support you.
The resources below provide information about product strategy.
- Cuellar, S. S., & Claps, M. (2013). Differential effects of brand, ratings and region on willingness to pay: A hedonic price approach. Journal of Wine Research, 24(2), 138–155.
- Thellefsen, T., Sørensen, B., & Danesi, M. (2013). A note on cognitive branding and the value profile. Social Semiotics, 23(4), 561–569.
- Marshall, G. W., & Johnston, M. W. (2015). Marketing management (2nd ed.). New York, NY: McGraw-Hill.
- Chapter 7, “Product Strategy and New Product Development,” pages 198–234.
- Chapter 8, “Building the Brand,” pages 238–261.
· Assessment Instructions
Now that the competitive analysis has been completed, the company’s senior leadership has asked you to analyze market segments and evaluate the strategy currently being used to market the product globally.
As you prepare to complete this assessment, what types of information will help you to segment target markets? What type of demographic information will you need? How will you determine the psychographics of your target customers? How can you use the information from the competitive analysis you completed? What questions do you need answered in order to develop a product-market profile?
Format this assessment as an executive report and include a title page and reference page. Follow APA guidelines for citations and references.
Within your Market Segmentation and Product Strategy report, include the following:
- Analyze the target market segments in relation to the product.
- Identify the market segments (at least 2) you believe would be effective to target for the product.
- Explain how the product serves the wants and needs of each target segment.
- Evaluate the growth potential of the product within each target segment.
- Evaluate the effectiveness of the company’s current marketing strategy being used within each target segment.
- Provide examples of how the strategy is and is not effective.
- Based on your analysis, recommend an alternative strategy that would better position the product for each target segment.
- Explain the types of challenges the company is likely to face in trying to reposition the product and change customers’ perceptions of the product.
- Explain the importance of branding/positioning in an effective marketing strategy.
- Support your recommendations with marketing theories, models, or principles.
- Include a title page and reference page.
- Length: 3–5 double-spaced pages, not including title page and reference page.
- Resources: At least 4. Resources must be formatted according to current APA guidelines.
- Font: Times New Roman, 12-point.
Market Segmentation and Product Strategy Scoring Guide