BUS106- Marketing Principles - Geographic - Psychographic - Assessment Answer

Marketing Principles Assignment

Assignment Task

Based on your research and analysis from Part A, you will need to answer the following questions:

1. There are five main bases for segmentation: Geographic, Demographic, Psychographic, Benefit and Usage-rate Segmentation. Using your selected brand of a product/service, provide the detailed analysis of the each segmentation variable. Scholarly sources must support your answer.

2. Now consider targeting strategy. Based on your research, which targeting strategy do you think selected brand of a product/service uses? Provide reasons for your answer.

3. In your opinion, which positioning bases does this brand of a product/service tries to convey to its customers. Provide reasons for your answer.

Introduction

Market segmentation refers to a technique designed to enable a business to target the better consumers for its products. It is all about identifying the customer groups’ specific needs and wants and then applying those insights into providing products and services that meet the needs of the customer (Isen & Means, 1983). Moreover, numerous marketing departments prefer to employ multiple strategies of segmentation since in addition to being more precise, they tend to be more effective in the end. There are five primary bases of segmentation that include; geographic, demographic, psychographic, benefit and usage-rate segmentation.

Geographic is one of the first variables that many marketing teams use in their segmentation strategy. This is primarily because the geographic variable enables the marketing team to divide the market into sections by climate, market size, density, world or states (Klein & Oglethorpe, 1987). Considering Gatorade’s energy drinks as selected brand of product in this case, is very important that the marketing team employ the geographic variable in their marketing strategy. This is because Gatorade is a big company that sells energy drinks globally. Considering different climatic conditions in different geographical areas in the world, majority of Gatorade’s energy drinks consumers are found in areas with hot climatic conditions than in climatic regions with low temperature. In addition, the geographic variable enables Gatorade’s marketing team to target geographic areas with large-density population (Zmuda, 2010).

Another extremely important variable to Gatorade’s marketing team is demographic segmentation. This is because buying patterns are drastically affected by data, as it is easily available. Important factors of demographic segmentation include gender, age, income, family life cycle, and ethnic background (Bauerlein, 2010). Gatorade produces energy drinks and their leading primary market is young individuals leading an active lifestyle. Majority of the youth prefer Gatorade to competitor sports drink due to flavour, brand (as it is endorsed by Dwayne Wade and Michael Jordan), and since it is available in all convenient stores. Gatorade’s marketing team understands that majority of the youth desire thirst quenching, rehydrating, and a more active and energizing drink, and in that case, the youth provide a suitable market for their product (Coombes & Hamilton, 2000).

With psychographic segmentation, a marketing team uses individuals’ lifestyle activities, and opinions to define a market segment. Gatorade produces its energy drinks mainly for individuals who are athletic and health conscience. These individuals provide a ready market for Gatorade’s products as they use it as a simpler way to refuel their body with essential minerals, vitamins, and electrolytes. Majority of the people that use Gatorade’s energy drink have a quick and sporty lifestyle. In addition, Gatorade’s energy drink is trending not only among athletes and teens, but also among active individuals (Snell et al., 2010).

Benefit sought segmentation is aimed at ensuring that markets are divided based on the benefits that consumers desire from using a particular products. This segmentation variable relies on the premise that different customers try to gratify different needs when the purchase a product. Consumers of Gatorade’s energy drinks desire a product that will quench their thirst, rehydrate them, and above all give them extra energy (Rouan, 2010). Therefore, Gatorade strives to honour these demands to attract and please a large target market. Usage rate is also another important marketing segmentation variable. Marketing teams conduct research to establish and distinguish the characteristics of a heavy consumer, from those of a medium or light consumer. Gatorade energy drink has a high number or consumers and this number is on the rise particularly those aged 16-30 years (Welsh & Mark, 2002). This is why Gatorade’s energy drink is available in all convenient stores since it has a high demand (Story & Klein, 2012).

Gatorade uses a differentiated marketing that can also be referred to as a multi-segmented targeting strategy. Gatorade employs this targeting strategy since its marketing segmentation reveals several potential target segments that Gatorade can profit from. Marketing mixes that are specific can be generated to appeal to all or some of the segments. Gatorade employs a differentiated marketing strategy as it exploits the differences between marketing segments by developing a specific marketing mix for each segment (Coombes & Hamilton, 2000). Gatorade uses this targeting strategy to serve two or more segments that are well defined and designs for each of them, a distinct marketing mix. It is a suitable marketing strategy for Gatorade as it has the potential to generate higher profits, as well as large market shares (Jobber & Ellis-Chadwick, 2012). The position base that Gatorade employs is positioning by product attribute. The energy drinks that Gatorade produces attract a large density of consumers due to its attributes or benefits. The drinks are famous quenching thirst, rehydration, as well as providing energy, and these attributes are the reason why consumers prefer this product to its competitors (Story & Klein, 2012).

Conclusion

Gatorade is one of the leading companies that specialize in the production of energy drinks globally. The products produced by Gatorade are not in any way affected by cultural factors since they target a global market. Their products are mainly targeted at groups that are active in playing sports and exercising. Their energy drinks are generally used by consumers aged between 16-30 years of age as they contain huge amounts of sugar and energy. Gatorade employs this targeting strategy since its marketing segmentation reveals several potential target segments that Gatorade can profit from. Marketing mixes that are specific can be generated to appeal to all or some of the segments. Gatorade uses this targeting strategy to serve two or more segments that are well defined and designs for each of them, a distinct marketing mix. It is a suitable marketing strategy for Gatorade as it has the potential to generate higher profits, as well as large market share. Gatorade attracts a large number of consumers due to its attributes and because they meet their consumer needs and desires.