Haramaya University

College of Busineses and Economic

Department of Accounting

Individual Assignment for Principles of

Marketing course

Name:Hinsenee Amenu
I'D Number: 058/14
1, you are marketing manager at any co.your company has asked you to redesign their segmentation
strategy.so, you will apply the theory you have learned on segmentation, targeting and positioning using
relevant examples where necessary.

A,how the segment the market, targeting the market and market positioning.

B, provide an advantage for using segmentation, targeting and positioning in developing marketing
strategies.

A) Segmenting the market:

To segment the market, the marketing manager needs to divide the market into distinct groups of
customers with similar characteristics, needs, and preferences. This can be done based on demographic
factors (age, gender, income), geographic factors (location, climate), psychographic factors (lifestyle,
values), or behavioral factors (usage rate, brand loyalty).

For example, if the company is in the fitness industry, they can segment the market based on
demographics by targeting different age groups such as millennials, Gen X, or baby boomers. They could
also segment based on psychographics by targeting health-conscious individuals who value an active
lifestyle.

Targeting the market:

Once the market is segmented, the marketing manager needs to select the most attractive segments to
target. This involves evaluating each segment's size, growth potential, competition, and compatibility
with the company's resources and objectives. The selected target segments should be reachable and
profitable.

Continuing with the fitness industry example, if the company specializes in yoga products, they may
choose to target the millennial segment due to its size, growth potential, and high interest in wellness
and self-care activities.

Market positioning:

Market positioning refers to how a company wants its product or brand to be perceived by its target
customers relative to competitors. It involves creating a unique and compelling position in the minds of
consumers. This can be achieved through differentiation based on product features, price, quality,
convenience, or emotional appeal.

For instance, the yoga product company could position itself as offering premium-quality yoga products
at an affordable price compared to competitors. They may also emphasize eco-friendly materials or
unique design elements to differentiate themselves further.

B) Advantages of segmentation, targeting, and positioning in developing marketing strategies:

1. Better understanding of customer needs: By segmenting the market and targeting specific customer
groups, companies can gain a deeper understanding of their customers' preferences, behaviors, and
needs. This enables them to tailor their marketing strategies and offerings to meet those specific needs
effectively.

2. Resource optimization: By targeting specific segments, companies can allocate their resources more
efficiently. Instead of trying to reach a broad and diverse market, they can focus their efforts on the
most profitable segments, resulting in cost savings and higher returns on investment.

3. Increased competitiveness: Effective segmentation, targeting, and positioning strategies allow

companies to differentiate themselves from competitors. By identifying unique customer needs and
positioning their offerings accordingly, companies can create a competitive advantage and stand out in
the market.

4. Enhanced customer satisfaction: When companies understand their target customers' needs and
preferences, they can develop products and services that better meet those requirements. This leads to
increased customer satisfaction and loyalty, as customers feel that their specific needs are being
addressed.

5. Improved marketing communication: By segmenting the market and understanding the

characteristics and preferences of each segment, companies can develop targeted marketing messages
and communication channels. This ensures that the right message reaches the right audience at the
right time, increasing the effectiveness of marketing campaigns.

2, marketing mix.

A, what is marketing mix.

B,the 7Ps of marketing mix.

C, why is the marketing call controllable?

D, analysis of the marketing mix of coca cola factory?

A) The marketing mix refers to the set of tactical marketing tools that a company uses to pursue its
marketing objectives in the target market. It consists of various elements that can be controlled by the
company to influence customers' perception and behavior.

B) The 7Ps of marketing mix are:

1. Product: This refers to the tangible or intangible goods or services that a company offers to its target
market. It includes product features, quality, design, packaging, branding, and warranties.

2. Price: This refers to the amount of money customers are willing to pay for the product. It involves
setting the right price to achieve profitability while considering factors such as competition, customer
demand, and perceived value.
3. Place: This refers to the distribution channels and methods used to make the product available to
customers. It includes decisions related to store location, online presence, logistics, and transportation.

4. Promotion: This refers to the communication strategies used to inform, persuade, and influence
customers about the product. It includes advertising, personal selling, sales promotions, public relations,
and direct marketing.

5. People: This refers to the employees who interact with customers and deliver the product or service.
It includes their skills, knowledge, appearance, and behavior, as they play a crucial role in customer
satisfaction.

6. Process: This refers to the procedures, systems, and activities involved in delivering the product or
service to customers. It includes order processing, customer service, payment methods, and after-sales
support.

7. Physical evidence: This refers to the tangible elements that customers can see, touch, or experience
when interacting with the product or service. It includes the physical environment, facilities, equipment,
packaging, and branding materials.

C) The marketing mix is considered controllable because companies have the ability to make decisions
and take actions regarding each element of the mix. They can adjust their product offerings, set prices,
choose distribution channels, design promotional campaigns, train employees, optimize processes, and
enhance physical evidence. These elements are within the control of the company and can be modified
to meet changing market conditions and customer preferences.

D) An analysis of the marketing mix of Coca-Cola factory would require a detailed examination of each
element:

1. Product: Coca-Cola offers a wide range of beverages, including carbonated soft drinks, juices, teas,
and energy drinks. It focuses on product innovation, brand extensions, and packaging variations to cater
to different customer preferences.

2. Price: Coca-Cola employs various pricing strategies, including value-based pricing and promotional
pricing. It offers different pricing options for different sizes and packaging formats to appeal to a diverse
customer base.

3. Place: Coca-Cola has an extensive distribution network that ensures its products are available in
various retail outlets, restaurants, vending machines, and online platforms worldwide. It focuses on
efficient logistics and partnerships to reach customers effectively.

4. Promotion: Coca-Cola invests heavily in advertising and marketing campaigns to build brand
awareness and create emotional connections with customers. It uses various channels such as
television, print media, social media, and sponsorships to reach its target audience.
5. People: Coca-Cola emphasizes customer service and training for its employees to ensure positive
interactions with customers. It also collaborates with celebrities and influencers to enhance its brand
image.

6. Process: Coca-Cola has well-established production and supply chain processes to ensure consistent
quality and timely delivery of its products. It continuously improves its processes to enhance efficiency
and reduce costs.

7. Physical evidence: Coca-Cola's branding and packaging play a significant role in creating a distinct
identity. The iconic red color, logo, and contour bottle shape are recognizable worldwide an

3, determine an advantage for using a product life cycle mode.

One advantage of using a product life cycle model is that it helps businesses make informed decisions
about their products. By understanding the different stages of the product life cycle (introduction,
growth, maturity, and decline), companies can anticipate changes in demand, adjust their marketing
strategies, and plan for product updates or replacements.

For example, during the introduction stage, a company can use the product life cycle model to identify
potential barriers to market entry and develop effective marketing campaigns to create awareness and
generate initial sales. In the growth stage, the model can help businesses identify opportunities for
expansion, such as entering new markets or targeting new customer segments.

Furthermore, by recognizing when a product reaches the maturity stage, companies can proactively plan
for product enhancements or line extensions to maintain market share and prolong the product's life
cycle. Lastly, in the decline stage, the model can assist businesses in deciding whether to discontinue the
product or explore options for revitalization.

Overall, using a product life cycle model provides a structured framework for analyzing and managing
products throughout their lifespan, enabling businesses to make timely and strategic decisions that
maximize their chances of success.

4,Identify key aspects of affective consumer buying and business buying behavior?

Key aspects of affective consumer buying behavior include:

1. Emotions: Consumer buying behavior is heavily influenced by emotions such as excitement,

happiness, fear, or sadness. These emotions can drive a consumer to make impulsive purchases or to
seek out products that make them feel a certain way.

2. Personal preferences: Consumers often make buying decisions based on their personal preferences
and tastes. This can include factors such as brand loyalty, lifestyle choices, and individual values.

3. Social influences: Consumer buying behavior can also be influenced by social factors such as peer
pressure, social norms, and cultural influences. Consumers may be influenced by the opinions of friends
and family, as well as by societal trends and expectations.
Key aspects of business buying behavior include:

1. Rational decision-making: Business buying behavior is often driven by rational decision-making

processes, with a focus on cost-effectiveness, quality, and reliability. Businesses are more likely to
conduct thorough research and analysis before making a purchase decision.

2. Organizational goals: Business buying behavior is also influenced by the goals and objectives of the
organization. Purchases are often made with the aim of improving efficiency, reducing costs, or
achieving strategic objectives.

3. Long-term relationships: Business buying behavior is often focused on building long-term

relationships with suppliers and partners. Businesses may prioritize factors such as trust, reliability, and
collaboration when making purchasing decisions.

4. Professional expertise: Business buying behavior may also be influenced by the expertise and
knowledge of the individuals involved in the decision-making process. Professionals may rely on their
industry knowledge and experience to make informed purchasing decisions.

5, critically analyze and evaluate consumer and customer or management practices adopted by the
company and how consumers react to individualized consumer organization interaction

Consumer and customer management practices adopted by a company can have a significant impact on
consumer behavior and the overall success of the business. Companies that prioritize customer
satisfaction, personalized interactions, and effective communication are more likely to build strong
relationships with their consumers and drive repeat business.

For example, companies that offer personalized recommendations based on a consumer's past
purchases or browsing history are more likely to engage and retain customers. Similarly, companies that
provide excellent customer service and support are more likely to earn customer loyalty and positive
word-of-mouth referrals.

Additionally, companies that actively seek and respond to customer feedback are better positioned to
adapt their products and services to meet consumer needs and preferences. This proactive approach to
consumer interaction can lead to increased customer satisfaction and long-term loyalty.

It is also important for companies to recognize the impact of consumer organization interaction on
consumer behavior. Consumers today are looking for brands that align with their values, support social
causes, and demonstrate ethical business practices. Companies that prioritize sustainability, corporate
social responsibility, and transparency in their operations are more likely to attract and retain socially
conscious consumers.

Overall, the way a company interacts with its consumers, the level of personalization and attention to
individual needs, and the alignment with consumer values and expectations all play a critical role in
shaping consumer buying behavior. By understanding and adapting to these factors, companies can
effectively influence consumer behavior and drive business success.
6, discuss potential trends in buyer behavior in the bank industry over the next ten years.identify
companies in this sector which are responding well to the trends and make recommendations how bank
industry can update the way it engages with current and potential customers?

1. Digital Transformation: With the increasing use of technology and digital channels, the bank industry
is likely to see a shift towards digital banking and online transactions. This trend will require banks to
invest in advanced digital platforms and provide seamless, user-friendly experiences for their customers.

2. Personalization and Customization: Customers are increasingly seeking personalized and tailored
banking services that cater to their individual needs and preferences. Banks will need to focus on
offering personalized financial advice, customized products, and targeted marketing strategies to meet
these demands.

3. Sustainability and Ethical Banking: As consumers become more conscious of environmental and social
issues, there is a growing trend towards sustainable and ethical banking practices. Banks that prioritize
sustainability, support social causes, and demonstrate ethical business practices will be more appealing
to socially conscious consumers.

4. Enhanced Security and Privacy: With the rise of cyber threats and data breaches, customers are
increasingly concerned about the security of their financial information. Banks will need to prioritize
robust security measures, transparent privacy policies, and proactive communication to build trust with
their customers.

5. Seamless Omnichannel Experience: Customers expect a seamless experience across various channels,
including online, mobile, and in-person interactions. Banks will need to integrate their services across
different channels to provide a consistent and convenient experience for their customers.

One company in the bank industry that is responding well to these trends is JPMorgan Chase. The bank
has invested heavily in digital transformation, offering a range of online and mobile banking services to
cater to the needs of tech-savvy consumers. JPMorgan Chase also prioritizes sustainability and ethical
banking practices, committing to environmental initiatives and supporting social causes.

To update the way it engages with current and potential customers, the bank industry can consider the
following recommendations:

1. Invest in Advanced Technology: Banks should prioritize digital transformation and invest in advanced
technology to offer seamless online and mobile banking experiences for their customers.

2. Personalize Financial Services: Banks can leverage data analytics and customer insights to offer
personalized financial advice, customized products, and targeted marketing strategies.

3. Embrace Sustainability and Ethical Practices: Banks should prioritize sustainability, support social
causes, and demonstrate ethical business practices to appeal to socially conscious consumers.
4. Enhance Security Measures: Banks need to prioritize robust security measures, transparent privacy
policies, and proactive communication to build trust with their customers.

5. Integrate Omnichannel Services: Banks should integrate their services across different channels to
provide a consistent and convenient experience for their customers, whether online, mobile, or in-
person interactions.

By adopting these recommendations, the bank industry can effectively respond to potential trends in
buyer behavior and enhance its engagement with current and potential customers.