基于两个案例保洁肯德基的市场细分理论研究Word文件下载.docx

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基于两个案例保洁肯德基的市场细分理论研究Word文件下载.docx

PMM1002 

(PMPManagement1-5)

Tutor:

DebbieBall

StudentName:

JasonHaiyuWang

ICWSID:

WAHYP01

WordCount:

3231

SubmissionDate:

March17th2010

Thisessaywouldmainlytalkabouttheconceptsofmarketsegmentationtheoriesandtrytoevaluatethosetheoriesbasedontwopracticalcasestudies.

ThefirstcasestudyisaboutthepracticeofProcter&

Gamble,whousemarketsegmentationtomanagetheirproductlineinonespecificcategory–skincareproduct.ThesecondcasestudywouldtrytoanalyzethathowKFC,aglobalfranchiseroffast-foodrestaurant,designnotonlytheirproductsbutalsocommunicationactivitieswiththeircustomersbasedontheimplementationofmarketsegmentation.

Allconclusionsofthosetwocasestudieswouldbebasedonobservationandlogical,reasonableassumptionduetothatitisverydifficulttoacquiredirectinformationorevidenceaboutorganizations’marketingstrategy.Thisfactcouldleadtotheconsequencethattheobservationcouldbemisunderstoodormisinterpreted,whichwouldaffectthecreditabilityofthisresearch.Furtherstudywouldbeneededifthosetwocasestudiesaretakenaspositiveexampleforpractice.

Furthermore,inthesecondcasestudywhichisaboutKFC,lotsofobservationwasbasedonthepracticeKFCconductedinChinamarket.ThereasonofthisisthatprobablyChinaistheonlymarketwhereKFCholdadvantagesagainsttheindustryleader–McDonaldanditshowedsignificantlystrongercompetentinChinamarketthanitdidintheothercounties.

Duringanalyzingthosetwocasestudies,itisunavoidabletogetinvolvedwithsomefundamentalconceptsaboutproductlineandbrandmanagement,becausemostcorporationstodayusethosetwoconceptsasmechanismstoachievetheirpurposeofreachingthedifferentmarketsegmentsbyprovidingdifferentproducts.

Marketsegmentation,asKotlerandArmstrongdefined,is“dividingamarketintodistinctgroupswithdistinctneeds,characteristics,orbehaviorswhomightrequireseparateproductsormarketingmixes”(KotlerandArmstrong,2004:

239).Theaimofmarketsegmentation,asBlythesuggested(2001:

57),is“toidentifyagroupofpeoplewhohaveaneedorneedsthatcanbemetbyasingleproduct,inordertoconcentratethemarketingfirm’seffortsmosteffectivelyandeconomically.”Inotherword,thepracticalaimofthemarketsegmentationtheoryistoletanorganizationunderstandwhoitscustomersorpotentialcustomersareandtogivesuggestionsabouthowtofulfillthosepeople’sneedsinthemosteffectiveandefficientways.AsBlytheimplied,bymarketsegmentationapproaches,organizationscouldenhanceandimprovetheirmarketingefficiency,whichcouldbebeneficialtotheirbusinessandprovidecompetentorbringcompetitiveadvantagestothemselves.Hence,mostoforganizationsconsideredmarketsegmentationasoneoftheirmostcrucialcompositionsoftheirmarketingstrategies.

Fromlatenineteencenturyto1940s,lotsofcorporationgottheirownsuccessfromimplementingAmericansystemof 

manufacturing,whichfocusedonprovidingstandardproductswithlowpricesbasedoncostcontrolandimprovingmanufacturingefficiency.However,inthe1950s,somepeoplefoundthatthebusinessenvironmenthadchangedwhenlotsofconsumerswouldnotbesatisfiedbystandardizedproductsanymoreanddemandmoreselectionvariety.In1956,Smithintroducedtheconceptofmarketsegmentation,whichwasashestated“marketsegmentationinvolvedviewingaheterogeneousmarketasanumberofsmallerhomogeneousmarkets,inresponsetodifferingpreferences,attributabletothedesiresofconsumersformoreprecisesatisfactionoftheirvaryingwants”(Smith,1956).Sincethen,theconceptofmarketsegmentationhasbecomeoneofthemostimportantmarketingtheoriesinboththeoreticalandpracticalfield.

Adcock,Halborg,andRossin2001suggestedthatthoughthereisnolimittothenumberofmeasurestosegmentthemarketinparticularcircumstances,however,unlessasegmentbedefinable,sizable,reachableandrelevant,itwouldbeuselessinthepracticalfield.

Definablemeanspeoplemustbeabletodescribethemarketsegment,andforthisthekeycharacteristicsofthesegmentshouldshowadegreeofhomogeneity.Thesegmentisofcourseasubsetofaheterogeneoustotalmarketforthereasonthatifthetotalmarketwerehomogeneoustherewouldbenoneedforsegmentation.Itisalsousefultobeabletomeasurethemarketsizeanddefinetheboundariesofthesegment.Sizablemeansthatthemarketsegmentmustbebigenoughforanorganizationtogetprofitfromitbyprovidingcommoditiesandservices.Thiscriterionwouldbedifferenttothedifferentorganizationbecauseoftheirsizeandthegoodsorservicestheyoffered.Reachablemeansthattheremustbeawayofreachingthesegmentbotheffectivelyandefficiently.Thisincludestheobviousphysicaldistributionofaproduct,aswellascommunicatingwithcustomersviamediaorinadirectway.Relevanthereisconsideredthemostimportanttestforanydescribedsegment.Itcannotbeconsideredinisolationfromtheothercriteriaasthereisnopointindescribingarelevantsegmentthatcannotbereached(KotlerandArmstrong,2004).

Thebasicprincipleofsegmentationisverysimple.BasedontheideafromAdcock,Halborg,andRoss(2001),itinvolvesselectingtheclassificationmostappropriatetothegroupsofcustomersidentified.Theworkinvolvedindoingthisisjustifiedonlyifitcanbeusedtoimprovemarketingeffectiveness.

BasedonWedelandKamakura’stheory(2000),themarketsegmentationbasescanbedividedintofourdifferentclassesbywhetheritisobservabletothemarketersornotandwhetheritwasmainlyconcernedaboutaspecificproduct.Theydevelopedamatrixtoshowthisconclusion(Figure1).

Figure1,Classificationofsegmentationbases

General

Product-specific

Observable

Cultural,Geographic,Demographic,andSocio-economicvariables

Userstatus,Usagefrequency,Storeloyaltyandpatronage,Situations

Unobservable

Psychographics,Values,PersonalityandLife-style

Psychographics,Benefits,Perceptions,Elasticities,Attributes,PreferenceandIntention

Asegmentationbasisisdefinedasasetofvariablesorcharacteristicsusedtoassignpotentialcustomerstohomogeneousgroup.FollowingFrank,MassyandWind(inWedelandKamakura,2000),WedelandKamakuraclassifysegmentationbasesintogeneral(independentofproducts,servicesorcircumstances)andproduct-specific(relatedtoboththecustomerandtheproduct,serviceand/orparticularcircumstances)bases.Furthermore,theyclassifybasesintowhethertheyareobservable(i.e.,measureddirectly)orunobservable(i.e.,inferred).Thattypologyholdsforthebasesusedforsegmentationofbothconsumerandindustrialmarkets,althoughtheintensitywithwhichvariousbasesareuseddiffersacrossthetwotypesofmarkets.

Almostinthesametime,Adcock,Halborg,andRoss(2001)holdaslightlydifferentopinionabouttheclassificationofmarketsegmentation.Theysuggestedthatthereweretwodifferenttypesofmarketsegmentation.Oneisthetraditionalapproach,whichusevariablesandcanbedescribedasgeographicand/ordemographic;

theotheroneismodernapproachwhichisbecomingmoreusualtoclassifyconsumersonthebasisofself-orientationandresources.Intheiropinion,therewassomeproblemswiththetraditionalapproachnowadaysbecauseoftheworldhadchangedsofastinthelastcoupleofdecades.

Althoughscholarsholddifferentopinionsabouthowthemarketsegmentationbasesshouldbeclassified,thereweresomevariablestheyalluseasthecriteriafordifferentmarketsegmentationbases.E.g.age,gender,race,familysize,income,occupation,education,religion,generation,nationalityandlifecycleforthedemographicbases;

ACORNandPRIZMforgeo-demographicsbases;

worldregionorcountry,countryregion,cityormetrosize,densityandclimateforthegeographicbases;

VALS2,socialclassandpersonalityforthepsychographicbases;

and,occasions,benefits,userstatus,usagerates,loyaltystatus,readinessstageandattitudetowardsproductforthebehavioralbases(KotlerandArmstrong2004:

240).

Evenlotsofpeopleagreedthosevariablescouldbeusedinmarketsegmentationpractice,theyalsohaddifferentideaaboutthem.Forinstance,accordingtoKotlerandArmstrong(2004),consumers’needsandwantswouldchangewithage.Therefore,organizationshouldofferdifferentproductsorusedifferentmarketingapproachesfordifferentagegroups.Andtheyprovidedsomesuccessfulpracticesofsomemultinationalcorporationwhouseageasavariablefortheirmarketsegmentation.However,Davies(1998)statedthatagemustbeusedwithcautionthoughitcanbeusedasameansfordistinguishingbetweentheneedsofdifferentgroupsandsegments.HementionedareportbyMintel(inDavies,1998)whichwasentitled‘theover50s’(1989),anexecutivesummary’,whichdiscoveredthatmediaportrayalsofthisgroupasmaturecitizenswasoftenresented.Thereportelaboratesthatasignificantnumberinthisgroupfindlifemoresatisfyingthanwhentheywereyounger.Moreover,hementionedthat“manypeopleinlatemiddle-ageconsiderthistobeatimefor“selfish”spendingandachancetoindulgethemselveswithaclearconscience,particularlywhentheydonothavetoworryaboutfamilyresponsibilities.AlsohereferredatheoryoriginatedbyanAmericanprofessorofmarketing,Moschis,whichisthatmarketersneedtooffermarketingofferingthatarestimulatedbythecognitiveagesofindividualsinsteadoftheirchronologicalages.Cognitiveagerefertohowo

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