https://research-methodology.net Necessary knowledge to conduct a business research Sun, 18 Feb 2024 03:58:11 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-segmentation-targeting-and-positioning/ Sun, 18 Feb 2024 03:58:11 +0000 https://research-methodology.net/?p=77546 BYD segmentation, targeting and positioning helps the electric automaker identify and reach their target audience effectively. These three components work together to develop a clear marketing strategy. BYD focuses on the following segmentation bases:   1. Geographic Segmentation. Urban vs. Rural. BYD prioritizes urban areas with higher EV adoption rates and developed charging infrastructure. They offer smaller, affordable EVs for city commutes. Developed vs. Developing Countries. In developed countries, BYD competes with premium brands, focusing on advanced features and technology. In developing markets, they offer budget-friendly models with longer range for rural driving. Accordingly, the electric automaker uses multi-segment market positioning. Specific Regions. BYD targets regions with government incentives for EVs and tailors offerings based on local preferences and driving habits.      2. Demographic Segmentation. Age. Millennials and Gen Z are significant targets due to their environmental consciousness and tech-savviness. BYD offers sleek designs and connected features for these segments. Income Level. BYD offers a range of price points across categories, targeting both budget-conscious buyers and those willing to pay more for premium features. Family Size. Larger families with specific needs are catered to with spacious SUVs and MPVs designed for comfort and safety.    3. Psychographic Segmentation. Environmental Consciousness. BYD emphasizes its sustainability features and commitment to green technology, appealing to environmentally conscious consumers. Technology Adoption. Early adopters and tech enthusiasts are targeted with cutting-edge features and futuristic designs. Lifestyle Preferences. Active lifestyles are addressed with rugged EVs for outdoor adventures, while urban professionals are offered stylish and efficient city cars.   4. Behavioural Segmentation. Driving Habits. Daily commuters receive tailored offerings like fast charging options, while long-distance travellers are targeted with extended range models. Brand Loyalty. Existing customers are offered loyalty programs and upgrade options, while new audiences are targeted with attractive incentives and test drives. Price Sensitivity. Budget-conscious buyers are targeted with affordable models, while those willing to…]]> https://research-methodology.net/marriott-segmentation-targeting-and-positioning-an-overview/ Fri, 27 Oct 2023 09:41:29 +0000 https://research-methodology.net/?p=75986 Marriott segmentation, targeting and positioning involves a series of marketing decision making for the largest hotel chain in the world. Segmentation involves dividing a market into smaller groups of customers with similar needs, wants, and behaviours. Generally, companies can engage in segmentation using a wide range of variables, such as demography, geography, psychographics, and behaviour.   Marriott International uses the following segmentation bases: Segmentation Variable Description Demographics Age, income, education level, occupation, family size, and household income. Geography Region, country, city, and type of location (e.g., urban, suburban, rural). Psychographics Interests, values, lifestyle, and travel habits. Behavior Travel frequency, type of accommodations booked, and loyalty program membership. Segmentation bases for Marriott International   Targeting is the process of selecting one or more of the identified segments to focus marketing efforts on. Businesses generally target segments that are most likely to be interested in their products or services, and that are most profitable to serve. Marriott targets business, leisure and luxury customer segments. Positioning is associated with creating a unique identity for a product or service in the minds of target customers. Effective positioning involves defining the product or service’s key features and benefits, and communicating them to customers in a way that differentiates the product or service from competitors. Customer Segment Marriott Amenities and Services Economy travellers Basic amenities and services Business travellers High-speed internet, business centres, meeting rooms, concierge services, executive lounges, complimentary breakfast Leisure travellers Swimming pools, kids’ clubs, family-friendly activities, restaurants, bars, fitness centers, spas Luxury travellers High-end accommodations, personalized service, gourmet dining, luxury amenities, exclusive experiences Customer segments and Positioning of Marriott Amenities and  Services   Marriott International Inc. Report contains the above analysis of Marriott segmentation, targeting and positioning and Marriott marketing strategy in general. The report illustrates the application of the major analytical strategic…]]> https://research-methodology.net/netflix-segmentation-targeting-and-positioning/ Wed, 20 Sep 2023 03:54:57 +0000 https://research-methodology.net/?p=75488 Netflix segmentation, targeting and positioning efforts are the basis of marketing strategy. Segmentation implies dividing the market into different groups on the basis of common traits and characteristics. The entertainment services provider segments its market on the basis of location, demography, behaviour, psychographic and other variables. Netflix uses the following positioning techniques: 1. Anticipatory positioning. When Netflix pioneered on-demand streaming of films, series and documentaries for a fixed monthly cost in 2007, the demand for such a service initially was low to non-existent. However, then CEO Reed Hastings and his team anticipated the demand for such a service and went ahead with the idea to see the demand gradually growing in the following years. 2. Mono-segment positioning. The largest streaming service in the world targets a single customer segment that is outward-looking, affluent consumers with international credit cards and smartphones. The following table 2 illustrates Netflix segmentation, targeting and positioning: Type of segmentation Segmentation criteria Netflix target customer segment     Geographic Region Available virtually everywhere except in China and Russia Density Urban/rural   Demographic Age Shows available for all age groups Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Empty Nest I older married couples, no children living with them Empty Nest II older married couples, retired, no children living at home Solitary Survivor I in labour force Solitary Survivor II retired Occupation Students, employees, professionals, senior manager, executives Behavioral Degree of loyalty ‘Hard core loyals’ and ‘Switchers’ Benefits sought Recreation & Inspiration Personality Easygoing, determined, ambitious User status non-users, potential users, first-time users, regular users, or ex-users of the streaming service Psychographic Social class  Working class, middle class and upper…]]> https://research-methodology.net/nvidia-segmentation-targeting-positioning/ Sun, 18 Jun 2023 07:29:35 +0000 https://research-methodology.net/?p=74397 Nvidia segmentation, targeting, and positioning (STP) is a strategic approach to marketing that involves dividing the market into smaller groups of consumers (segmentation), selecting one or more of these groups to target with a specific marketing mix (targeting), and then positioning the product or service in the minds of consumers in a way that differentiates it from the competition (positioning).     Nvidia uses the following types of product positioning. – Anticipatory positioning. Anticipatory product positioning is a strategy in which a company positions its products or services in a way that anticipates future trends or needs in the market. Nvidia has used this strategy effectively by positioning its products in a way that anticipates the increasing demand for high-performance computing solutions and emerging technologies such as artificial intelligence and autonomous vehicles. For example, Nvidia recognized in early 1990s the potential of AI and positioned its products accordingly, investing heavily in research and development to create GPUs that are specifically designed to accelerate AI workloads. As a result, Nvidia has become a key player in the AI market, with its GPUs powering many of the most advanced AI applications in industries such as healthcare, finance, and automotive. – Quality product positioning. Quality product positioning is a strategy in which a company positions its products or services as high-quality, reliable, and superior to those of its competitors. Nvidia has used this strategy effectively by emphasizing the quality and reliability of its products and by investing in research and development to continually improve its offerings. Accordingly the company creates high-performance GPUs for a wide range of applications, from gaming to data centre workloads. The following table illustrates Nvidia segmentation, targeting and positioning: Type of segmentation Segmentation criteria Nvidia target customer segment   Geographic Region Taiwan, China, United States, other countries Density Urban…]]> https://research-methodology.net/wework-segmentation-targeting-and-positioning/ Tue, 21 Feb 2023 04:51:39 +0000 https://research-methodology.net/?p=72654 WeWork segmentation, targeting and positioning is an important tool for the global flexible workspace provider to develop right products and services for right customers. Segmentation involves dividing customers into different groups according to their common needs and common characteristics. Targeting implies selecting specific groups among the population to sell products and services to. Positioning refers to developing elements of the marketing mix that best resonates with the needs and wants of the target customer segment. WeWork uses the following types of positioning: 1. Functional positioning. Functional positioning refers to positioning of products and services that are aimed at solving specific problems customers are facing. Businesses needed flexible workspace solutions without commitment of lengthy and expensive lease. Adam Neumann and Miguel McKelvey saw commercial opportunity in this problem and established WeWork with functional positioning in 2010. 2. Multi-segment positioning. The co-working giant offers services to more than one customer segment in terms of their workspace needs. For example, ‘Space as a service’ category is developed for small and medium sized businesses and enterprise companies. ‘WeWork Access’ category, on the other hand, aims to attract different customer segment, namely sole entrepreneurs at the early stages of their journey in business. The following table illustrates WeWork segmentation, targeting and positioning: Type of segmentation Segmentation criteria WeWork target customer segment   Geographic Region 38 countries worldwide Density Mainly urban areas   Demographic Age 18-65 Gender Males & Females Life-cycle stage Bachelor Stage: young, single people not living at home Newly Married Couples: young, no children Full Nest I: youngest child under six Full Nest II: youngest child six or over Full Nest III: older married couples with dependent children Empty Nest I: older married couples, no children living with them Occupation Self-employed,  professionals, senior manager, executives, business owners Behavioral Degree of loyalty ‘Hard core loyals’ ‘Soft core loyals’ ‘Switchers’ Benefits…]]> https://research-methodology.net/starbucks-segmentation-targeting-and-positioning-targeting-premium-customers-with-quality-products-and-service/ Fri, 07 Oct 2022 00:08:12 +0000 http://research-methodology.net/?p=10249 Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants.  In simple terms, segmentation, targeting and positioning refers to deciding whom to sell to, and positioning products and services accordingly. Starbucks Coffee uses the following types of positioning: – Mono segment positioning. The coffee chain giant targets premium customer segment only i.e. individuals who are willing to pay extra for the quality of products and services. – Adaptive positioning. Due to the tendency of increasing consumer health awareness, Starbucks Coffee developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories). – Standby positioning. Certain Starbucks beverages such as Frappuchino had to await changes in the market for certain period of time to find demand. – Sustainability positioning. The world’s largest coffeehouse chain attempts to shift customer attention to sustainability aspect of its business. For example, by the end of FY21 there were 2779 Greener Store framework Starbucks branches[1]. This store format aims to achieve reductions in carbon emissions, water usage and landfill waste. The following table illustrates Starbucks segmentation, targeting and positioning: Type of segmentation Segmentation criteria Starbucks target customer segment     Geographic Region US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region Density Urban   Demographic Age 18 – 60 Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Occupation Students, employees, professionals Behavioral Degree of loyalty ‘Hard core loyals’…]]> https://research-methodology.net/mcdonalds-segmentation-targeting-positioning/ Wed, 22 Jun 2022 00:25:41 +0000 http://research-methodology.net/?p=7289 McDonald’s segmentation, targeting and positioning is one of the integral components of its marketing strategy. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment. McDonald’s uses the following types of segmentation: 1. Multi-segment positioning. The fast food chain exploits multiple segments in terms of geography and demographics at the same time. The fast food giant develops items that appeals to the needs and preferences of each segment. 2. Adaptive positioning. McDonald’s periodically repositions its products according to changes in customer tastes and preferences. For instance, reflecting increasing health concerns by customers the fast food chain introduced a number of healthy items in its menu such as Fruit & Maple Outmeal and Southwest Grilled Chicken Salad. The following table illustrates McDonald’s segmentation, targeting and positioning: Type of segmentation Segmentation criteria McDonald’s target segment   Geographic Region Operating in 119 countries Density Urban/rural   Demographic Age 6 – 70 Gender Males & Females Life-cycle stage Bachelor Stage: young, single people not living at home Newly Married Couples: young, no children Full Nest II: youngest child six or over Income Low and middle Occupation Students, employees, professionals Behavioral Degree of loyalty ‘Hard core loyals’  and ‘Switchers’ Benefits sought Cost benefits, time efficiency Personality Easygoing& careless User status Potential and regular fast foodeaters Psychographic Social class Lower, working and middle classes Lifestyle McDonald’s targets Resigned, Struggler and Mainstreamer individuals according to Cross Cultural Consumer Characterization developed by Young & Rubican McDonald’s segmentation, targeting and positioning   Important aspects of the target customer segment as illustrated in table above serve as the main guiding principle for McDonald’s marketing management to deal with Product, Place, Price,…]]> https://research-methodology.net/square-segmentation-targeting-positioning/ Wed, 29 Sep 2021 01:18:02 +0000 https://research-methodology.net/?p=58028 Square segmentation, targeting and positioning refers to a series of consecutive marketing efforts. It comprises the following stages: 1. Segmenting the market. Generally, market segmentation involves dividing population into certain characteristics. For Square, segmentation also involves private entities taking into account B2B, as well as, B2C nature of its business. The most popular types of segmentation are geographic, demographic, behavioural and psychographic. 2. Targeting the selected segment(s). Choosing specific groups among those formed as a result of segmentation to sell products and/or services. In B2B front Square selected as target customer segment small businesses facing difficulties accepting credit cards. In B2C business, the target customer segment for Square is broad. The financial unicorn decided to target the individuals in developed countries who engage in financial transactions with other individuals and this segment of population is large. 3. Positioning the offering. Choosing and applying the elements of the marketing mix that appeal best to the needs and wants of the selected target customer segment. Square developed a card reader and positioned this product as an effective solution for small businesses that were facing difficulties in accepting credit cards. The payments company is making an important shift from mono-segment towards multi-segment type of positioning. Specifically, the financial services platform started with selling card readers to small business segment only. Nowadays, Square’s expanding range of financial products and services are attracting increasing numbers of medium business segment as well. For B2C customer segment the financial services platform positioned its products and services as simplified versions of products and services already available on the market. For example, Cash App offers individuals hassle-free possibilities of investing in stock and bitcoin without any commission. Square Inc. Report contains the above analysis of Square segmentation, targeting and positioning and Square marketing strategy in general. The report illustrates…]]> https://research-methodology.net/tesla-segmentation-targeting-and-positioning-overview/ Sat, 01 May 2021 00:06:36 +0000 https://research-methodology.net/?p=26333 Tesla segmentation, targeting and positioning is a chain of activities that involves identification of a specific population segment(s) and developing products to cater for the needs and wants of consumers belonging to the segment(s). Segmentation involves dividing population into groups according to certain characteristics such as age, social status, psychological characteristics etc. Targeting implies choosing specific groups (segments) identified as a result of segmentation to sell products to. Positioning is the selection and application of the marketing mix the most suitable for the target customer segment. Tesla uses mono-segment positioning.  Accordingly, the alternative fuel vehicles manufacturer targets individuals concerned with negative environmental implications of oil and gas consumption. Tesla products are considered to be expensive for average consumers and thus, the target customer segment for the company is wealthy individuals and households. At the same time, Tesla may switch from mono-segment to multi segment type of positioning in the foreseeable future. According to Tesla business strategy announced by Elon Musk in a blog post in 2006, the company builds sports car, uses that money to build an affordable car and uses that money to build an even more affordable car. [1] Tesla also uses anticipatory type of positioning. Specifically, the electric automaker positions its products and services for a market segment that has low turnover with the anticipation that the turnover will increase in the future. The electric automaker’s energy storage products such as Powerwall 2 and Powerpack 2 can be mentioned as examples for anticipatory positioning. The following table illustrates Tesla segmentation, targeting and positioning: Type of segmen-tation Segmen-tation criteria Tesla target customer segment   Vehicles: Model S, Model X, Model 3, Future Consumer and Commercial Evs Energy storage: Powerwall 2, Powerpack 2 Solar energy systems: solar panels, inverters, racking, electrical hardware, monitoring device   Geog-raphic Region North America,…]]> https://research-methodology.net/w-w-grainger-segmentation-targeting-and-positioning/ Wed, 19 Aug 2020 01:31:00 +0000 https://research-methodology.net/?p=44159 W.W. Grainger segmentation, targeting and positioning refers to ways in which the global industrial supply company chooses specific companies among large base of potential customers and develops its product and service offering to appeal to the needs of a few chosen customers. Segmentation involves dividing population into groups according to certain characteristics. Grainger uses a set of segmentation criteria such as region, size of the company, turnover and potential annual MRO spending. Moreover, complexity of customer needs is an important segmentation criteria extensively employed by the industrial supply company. Targeting is the next stage after segmentation and it is associated with selecting specific groups to sell products to. Positioning refers to the selection of the marketing mix that appeals to the needs and wants of the target customer segment to the maximum extent. Grainger uses multi-segment type of positioning and accordingly, the B2B distributor exploits more than one segment at the same time. Specifically, Grainger positions its Zoro and MonotaRO  websites to appeal to the needs of small and medium-sized customer segment with simple needs for MRO products. Different customer segment with more complex needs on the other hand, are targeted via High-Touch Solutions value proposition, which involves sales and service representatives, KeepStock inventory management system and collection of orders from branches. There are important differences between B2C (business-to-customer) and B2B (business-to-business) segmentation. These differences include the following: 1. More complex and rational decision making. Decision making process by Grainger target customer segment is complex and rational. It is opposite to B2C segment, where appeal can be made to customers’ needs on emotional level to influence the purchasing behaviour. This fact has direct implications on Grainger positioning in a way that the global industrial supply company has to base its value proposition on measurable and tangible advantages. 2. Complexity of…]]>