Joseph Lanton Adjei Mensah
This paper is submitted in partial fulfillment of the requirements for
School of Management
Professor (Dr.) Babu P George
January 6, 2014 (Submission Date)
Unit – 2
What is the role of the creativity in the segmentation process, Why can we say that having an excellent global positioning is one of the principal assets of a brand, What criteria should global marketers consider when making product design decisions, Identify several global brands. What are some of the reasons for the global success of the brands you chose?
Abstract The study identifies segmentation processes and how it can be introduced ...view middle of the document...
Introduction The problems of brand position have been underestimated by some companies and have suffered the consequence. There are ample evident that better positioning of brand has resulted in the increase in market share. As better positioning is much dependent on the proper segmentations, it beholds on the company that want to enjoy the benefit of brand positioning to properly segment its targeted market. Standardizing of global culture may not be the best option but rather considering localized consumer culture will enhance brand positioning. However,
Yankelovich and Meer (2006) suggested that Segmentation initiatives have been disappointing. A survey of 200 senior executives of large companies conducted by Marakon Associates and the Economist Intelligence indicated that 59% had conducted a major segmentation exercise during the previous two years. Evidence suggests it was not effective tool: Only 14% of the executives said they derived real value from the exercise. The failures have mostly taken the forms of: 1. Excessive interest in consumers‟ identities, which distract marketers from the product features that matter most, to current and potential customers of particular brands and categories. 2. Little emphasis on actual consumer behavior, which definitively reveals their attitudes and helps predict business outcomes. 3. undue absorption in the technical details of devising segmentations, which estranges marketers from the decision makers on whose support their initiatives depend What is the role of the creativity in the segmentation process? Market segmentation is the process of dividing the market into homogenous groups of potential customers with distinct characteristics, behaviors or needs (Sarvary, 2005). Aaker and Shansby, (2001) suggested that segmentation of customers helps in selecting positioning strategy. A meaningful positioning is to focus on the targeted segment and not be constrained by the reaction of the other segment. According to Sarvary and Elberse (2006) the prerequisite steps for designing successful marketing strategy is Market Segmentation, Target market selection and Positioning, and these three process are closely linked and are interdependent. Segmentation is very important due to limited available resources for investment at disposal of companies. Mullins, Walker,Jr. and Boyed, Jr. (2007) suggested three main steps of identifying market segmentation as follows:
1. Identify a homogeneous segment that differs from other segments 2. Specify a measurable criteria that define the segment 3. Determine segment size and potential Traditionally there are three major categories in which market can be segmented and these are Demographic descriptor, Geographic Descriptors and Behavioral Descriptor (Geodemographic Descriptor) (Mullins, Walker,Jr. and Boyed, Jr., 2007).
•Age •Sex •Income •Occupation •Education •Geography •Race and ethnic origin •Location •Popuation Desnsity