Watch the video and answer the questions below:
a) What are the 4 methods for firms to increase the market for their current products?
b) What did Coca Cola find out about Diet Cola and male consumers?
c) Explain the first step in the segmentation process.
d) How many segments are mentioned in Step 2, exhibit 8.3?
e) What happened when Dunking Doughnuts introduced soups in its menu and what is the conclusion of this example?
f) What is geodemographic segmentation?
g) How do airlines profit from loyalty segmentation?
h) Watch the video about McDonald's Strategy and explain how they use geographical segmentation to promote their products in no less than 200 words.
Watch the video and answer the questions below:
ReplyDeletea)What are the 4 methods for firms to increase the market for their current products?
Firms constantly look to increase the markets for their product by:
1.Getting the current consumers to consume more
2.Obtaining new consumers for current products
3.Offering new products to current consumers
4.Entering an entirely new market
b)What did Coca Cola find out about Diet Cola and male consumers?
Coca Cola find out that male consumers did not want to buy a Diet Cola because they considered it too family, yet wanted zero calories.
c)Explain the first step in the segmentation process.
The first step in the segmentation process is to establish an overall strategy or objectives. The firm’s strategy of segmentation must be in concordance with the firm’s mission and current situation. There’re different types of segmentations but sometimes is better not to segment at all.
d)How many segments are mentioned in Step 2, exhibit 8.3?
The second step in the segmentation process is to describe the segments, that helps firms to better understand consumers. There are 6 segments mentioned in Step 2.
e)What happened when Dunking Doughnuts introduced soups in its menu and what is the conclusion of this example?
When Dunking Doughnuts introduced soups in its menu it included one that appealed to north-eastern consumers. So the conclusion is that understanding consumers preferences by regions can define a company’s success.
f) What is geodemographic segmentation?
Geodemographic segmentation uses a company’s combination of demographic, geographic and lifestyle characteristics to classify consumers.
g) How do airlines profit from loyalty segmentation?
Because loyalty segmentation classifies costumers by whether they buy almost exclusively from the same firm, airlines use frequent fly miles to reward their customers.
a) What are the 4 methods for firms to increase the market for their current products?
ReplyDelete-by getting current consumers to consume more
-obtaining new consumers for current products
-offering new products to current consumers
-to enter an entirely new market.
b) What did Coca Cola find out about Diet Cola and male consumers?
Coca-Cola realized that men did not want to buy diet drink because it is too feminine but they yet wanted 0 calories.
c) Explain the first step in the segmentation process.
The first step in the segmentation process is to establish overall strategy or objectives. The segmentation strategy must be consistent with and derived from the firm’s mission and objectives as well as its current situation. There are 4 segmentation strategies: Differentiated; Concentrated; Undifferentiated or mass marketing; Micromarketing or one-to-one. However sometimes it makes sense not to segment at all.
d) How many segments are mentioned in Step 2, exhibit 8.3?
There are mentioned 6 segments :
- geographic
- demographic
- psychographic
- benefits
- geodemographic
- loyalty
e) What happened when Dunking Doughnuts introduced soups in its menu and what is the conclusion of this example?
When Dunking Donuts introduced soups to its menu it included new England clam chowder which appeal to northeastern consumers.
f) What is geodemographic segmentation?
Geo- demographic segmentation is a combination of geographic, demographic, and lifestyle characteristics to classify consumers.
g) How do airlines profit from loyalty segmentation?
Airlines use frequent flyer miles to reward and retain loyal customers.
h) Watch the video about McDonald's Strategy and explain how they use geographical segmentation to promote their products in no less than 200 words.
Mc Donald’s is a global brand with restaurants all over the world that intend to bring global consumer satisfaction. The company uses global strategy as well as local strategy because it is very important for every restaurant in each country to be the best within the local competition, so depending on the country they diversify the products but still there exists standardized products such as “big mac”, coke drinks, “chicken mcnuggets”, “french fries” and chessburger.
The reasons why McDonald’s need local strategies is local tastes and customs. We all know that in the main menu at McDonald’s, beef is fundamental but if it opens in India, they should respect and take into consideration the national traditions. Their religion prohibits eating beef because the cows are considered to be holy in this specific country, so they have made new products from chicken. Also there are a lot of Indians who are vegetarian so they offer a special menu for these people too.
Another reason is local government laws that have different views on what can be sold in fast food outlets. So if one can buy a beer in Spain he will not be able to make it in the United Kingdom because there, beers’ sales are restricted by law. We all know that McDonald’s does not own all its restaurants centrally and about 85% of them are operated by franchisees. In order to increase profits, the franchisees appeal to local promotions to get higher sales, because a part of the marketing budget is controlled locally.
McDonald’s tends to operate a strong local strategy alongside its global in this way they make sure that all the products delivered to the consumers are of the best quality and prepared at the highest standards.