CUUUUUY KATA-KATANYA JANGAN SAMA PERSIS YAAK

1. Extensive market segmentation is a relatively recent phenomenon. Until about the

middle of the 20th century many firms offered a single basic product aimed at the entire
mass market (such as Coca-Cola or Levi jeans). But in recent years many
firms—including industrial goods manufacturers and services producers as well as
consumer products companies—have begun segmenting their markets and developing
different products and marketing programs targeted at different segments. Which
environmental changes have helped spark this increased interest in market
segmentation? What advantages or benefits can a firm gain from properly segmenting its
market?

Market segmentation involves the process by which the markets are divided into different
subsets based on customers, characteristics, which could cause to respond in same way
for product or marketing program. Target marketing involves evaluating different markets
in terms of market potential, growth rate, competitive intensity and other factors which
are similar to that of the mission of business. Some of the reasons for market
segmentation include increase in competition due to decrease in population growth in
few developed countries. Companies are therefore forced to look for new markets in
order to compete as the markets in developed countries are maturing. The other reason
includes social and economic factors like higher education, more awareness of world
had led customers to develop new taste and needs, change in lifestyle and expanding
disposable income.

Following are some of the advantages firm can gain from properly segmenting the
market:
1. Market segmentation would help firm determine new opportunities available in the
given market segment by studying each of the markets carefully.
2. Marketing segmentation would help company to design of products that would match
and meet the demand of target customers.
3. Market segmentation would help company to provide better services to its customers
by concentrating in particular area.
4. Market segmentation would help company fix prices based on the earning groups in
the market segment

2. Exactly what is the relationship between market segmentation, target marketing, and
positioning? What damage will be done to a company’s target marketing and positioning
efforts if markets are incorrectly or not effectively or insightfully segmented?

The relationship between three of them is that they are a set of marketing
strategy processes, starting with marketing segmentation, to target marketing, and lastly
positioning. First step is the market segmentation​, the process of dividing large,
 heterogeneous markets into smaller segments that can be reached more efficiently and
effectively with products and services that match their unique needs. The second step is
target marketing​, where a target market itself is defined as a set of buyers sharing
common needs or characteristics that the company decides to serve. It is very important
to select the target market to which the company decides to serve because knowledge
about how the consumers decide, what are the criteria of buying products, the
characteristics and lifestyle of the targeted customers can help the marketers to develop
a suitable marketing strategy. After the company has decided its market targeting
strategy, the next managerial challenge is to decide what ​position ​it wants to occupy in
the selected segment(s). Kotler has defined product positioning as the way the product is
defined by consumers on important attributes – the place – the product occupies in the
consumer's mind relative to competing products.
If a company is incorrectly doing their market segmentation and ignores their
target customer, then their target marketing and positioning will be useless because
there is nothing to sell and nobody to sell to. A good market strategy and thus a proper
segmentation can increase a company's competitiveness, brand recall, ​customer
retention​, communications and expand your market. In short, target the right segment,
and you will walk away with a better company and higher profitability

3. Can market segmentation be taken too far? What are the potential disadvantages of
oversegmenting a market? What strategy might a firm pursue when it believes that the
market has been broken into too many small segments?

The primary disadvantage of over segmentation is reduced profitability. It’s

possible to lose some potential customers, because if a firm segments its market too
much, it runs the risk of excluding people who would actually be likely to buy. Excessive
segmentation also leads to excessive costs. In other words, if a firm segments the
market more than it needs to, it will affect the adding of its costs. It has to spend money
determining how to segment the market.
A firm that believes the market has been broken into too many small segments
has to bring together the customers who have drifted into small dispersed segments, by
showing how its benefits are superior.

4. What is the difference between a growth-market targeting strategy and a niche targeting
strategy? What capabilities or strengths should a business possess to implement a
growth-market targeting strategy effectively?

The growth market targeting strategy are to gain more market share, even at the
expense of short-term earnings. Four broad growth strategies are diversification, product
development, market penetration, and market development. And Market niche strategy
is defined as a narrow group of customers who are looking for specific products or
benefits.
 There is some of capabilities and strengths that a business should have to implement a
growth-market targeting strategy effectively:

1. The company improves product quality and adds new product features
2. The company adds a new product line, flanker strategy, and products
3. It enters new market segments in an existing market
4. The company enters new distribution channels
5. It shifts some advertising from building product awareness to bringing about
product conversion and sales
6. The company lowers price at the right time to attract the next layer of
price-sensitive buyers

5. Given the challenges inherent in repositioning a fast-food chain, how would you further
update the Subway product line and advertising campaign in light of current healthy food
trends?

To come up with an appropriate up-to-date Subway product line, it is important to

carry out a SWOT analysis so that it will be easy to define several appropriate strategies
on how to advertise and improve the product. A SWOT analysis is very important in the
repositioning process. However, the macro trends are also important and help to
determine the best approach to use in as far as repositioning and advertising are
concerned. Based on the SWOT analysis, it is apparent that there are several gaps that
need to be put into consideration. While trying to update the product line and advertising
of Subway, it is necessary to note that the current macro trends which are characterized
by a great economic recession and improved technology.

1. Using up-to-date technology. An appropriate marketing strategy is what any fast food
chain needs to update: its product line as well as its advertising in light of the current
macro trend has to undergo a number of changes. The best way of how an organization
may update its product line is the method of improving its product decoration.
2. Up-to-date decoration of franchise. Currently, e-commerce has brought many changes
with regard to marketing. The Subway should therefore us this new technology to do its
marketing. While using e-commerce to market products, appearance of the product is
very important, therefore the organization should improve its delivery of products with
regard to decoration as well as the means of transmitting information
3. Efficient services in delivery. The product and associated mode of delivery have to be
taken into consideration as well. When the time to product or service delivery comes, an
 entrepreneur has to be ready to ensure the quality of a product and prove that it goes
hand in hand with its appearance.
4. Frequent communication with customers. The fast food chain should use updated
technology with regard to Face Book, Twitter, Yahoo, and other related websites which
have the youth as the main target because of their unbelievable passion to fast food
restaurants and the services available.
5. Current macro trends. The current macro trend of economic recession is associated with
a change in advertising. It is very important to understand the behaviour change of
customers.

6. What is meant by a determinant attribute for a given product? Explain why the
identification of such attributes is so important. What would be an example of a
determinant attribute for each of the following products and services?

Determinant Attribute is a bunch of attributes that determine buyers’ choices between

competing alternatives.
a. A cruise line : service, facilities, hygienity, hospitality, capacity
b. A laptop computer: technical features, practicality, mobility
c. French wine: complexity and taste, grape variety, quality/price ratio
d. Women’s sportswear: Selection/assortment, quality, guarantees, pricing, durability
e. A hospital: responsiveness, location, accessibility, trust, staffs’ competency
f. An arts college: cost, admissions requirements, professionals’ competency
g. A tractor: ease of use, reliability, safety, value for money

7. Should positioning be based on product features or benefits? Why? Under what

circumstances should features be the focus of an advertising campaign?

First we must know the difference between features and benefits. Features are
defined as surface statements about your product, such as what it can do, its dimensions
and specs but for benefits are defined as showing the end result of the product, what the
product can actually accomplish for the consumer.
For me, positioning your brand or product should be based on benefits, because
think about how consumers will ask you about your product. It’s not just about the
features, but instead they will ask about the benefit of buying your product. Marketing
your features is essential. But you need to demonstrate the benefit and value or
outcome to your customers so they understand and know why they should buy your
product and why they need it.
 On the other hand, if we talk about the automotive industry, they usually
advertise the features that they offer rather than the benefits of the car. Because a lot of
people understand the function of it.

8. In terms of positioning strategy, what is the rationale for the fact that Nabisco offers
many different brands within the cracker category, each of which is perceived as being
only slightly different from the others? What are the advantages and limitations of such a
strategy?

Nabisco offers different brands in the same category helps with gaining more
market share. This is because crackers have little to no differentiation from each other
product-wise, therefore most products have the same probability of selling. With that,
Nabisco could gain more probability of being bought by owning many of the cracker
products that are available.
Nabisco still needs to be careful as promotion-wise, they will be competing with
their own brands. And also cost-wise, Nabisco will have to spend more capital on
creating different brands.