Ch 10 - Target Market

Question 1

Target Market

What is segmentation?
What best used for?
What 4 broad variables used?

Answer 1

• Division of market into distinct sub-groups with similar needs, tastes, prefs which may req specific marketing strategy
  
  • Variables
    ○ Geographic
    ○ Demographic
    ○ Psychographic/attitudinal
    ○ Behavioral - based on obs beh
  • Segs need to be large enough to be profitable, but small enough to be distinct from each other in meaningful ways
  • Hard to make seg complete and actionable - not all cons fit and then hard to target
  • Best use for broad market assessment and target market ID to gain insight and sizing of potential market

Question 2

Target Market

What are examples of each of the 4 broad variables?

Answer 2

• Geo
  ○ where live, can get granular - but of limited use on its own
• Demographic variables
  ○ Age
  ○ Income
  ○ Gender
  ○ Ethnicity
  ○ Family status
  ○ Education level
  ○ Occupation
  ○ Socio-econ status
• Psych/attitude
  ○ Lifestyle
  ○ Personality (e.g. prestige oriented)
  ○ Beliefs/values
  ○ Interests
• Behavioral
  ○ Purch patterns (POS data) - what buy, where, how often, occasions
  ○ What end-benefit do they want? QPR, prestige, price sensitive, experience
  ○ Brand loyalty
  ○ Interest level in wines
  ○ Early adopters? Laggards?

Question 3

Target Market

What is most fundamental basis of global wine seg?
What are basic broad segs?

Answer 3

• No global wine seg - varies by country and w/in country
  
  • Most common - high vs low involvement segs - also too broad
  • High involve - deep interest, try new prods, spend more on wine
  • Low involve - little interest in wine they drink, price sensitive, stick to few prod they know
  • Inc efforts to create segment profiles using advanced data

Question 4

Target Market

What is Hall segmentation?

Answer 4

* Wine lovers - high educ/income - very involved and knowledgeable
* Wine interested - signif interest in wine, mod knowledge, high educ, mod income
* Wine curious - mod interest, limited knowledge, mod income/education - mostly drink for social connection

Question 5

Target Market

What are 6 Wine Intelligence US segs?

Answer 5

1. Engaged Explorers
2. Premium Brand Suburbans
3. Contented Treaters
4. Social Newbies
5. Senior Bargain Hunters
6. Kitchen Casuals

Question 6

Target Market

For each of Wine Intelligence segs:
* who are they
* why do they drink
* what do they drink
* where do they shop
* why do they shop there?

Answer 6

Question 7

Target Market

What is market research?
Why done and how use?

Answer 7

• Gathering and analysis of data about particular segment/market oppty to tailor prod/mktg strat to target audience
  
  • Key to forming and validating marketing strategy - confirm seg approach validity and size oppty
  • Key to know goals of research and how it will be used

Question 8

Target Market

What methods are used to do market research?

Answer 8

• Surveys
• Focus group
• Interviews
• Observation
• Secondary research

Question 9

Target Market

How is observing cons beh used to impact their behavior?
How is it done?

Answer 9

• ID purch patters and factors that influence buying decisions (price, packaging, advice, promo)
  
  • Draw cons attention to create awareness/engagement
  • Highlight selling points to help eval of prod rel to compet
• How done
  ○ Watch cons move around shop
  ○ Talking to cust
  ○ Loyalty prog to track beh