Journal of Retailing and Consumer Services doc

Assignment on Marketing Theories
Assignment on Marketing Theories
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Assignment on Marketing Theories
Answers
1.
Market segmentation is a method of dividing a vast consumer market or business, into sub-groups based
similar types shared characteristics. It means that one has to focus on company’s target market in a
segmented manner. Harinder is working B2B (business to business ) market strategy. A market can be
segmented based on age, group, gender, geography and socialogy. As Harinder is working with firms and
not individual customers it’s a Firmographic Segmentation.
A Firmographic segmentation is close to demographic segmentation. The difference in this new type of
segmentation is that here instead of individuals the person focus on the different types of firm. They focus
on company size, number of employees and internet based business. It helps them to understand how to
address their needs and manage the orders.
Targeting market segment- He should aim at targeting firms who sell online for new contract after he has
established a good relation with the E-distributor. He should also maintain relation with his existing clients.
Once his business is well received by individual consumers he can manage to sell product directly to
consumers through online or offline mode.
Positioning strategy- A positioning strategy is how the firm wants the product to be seen in the market,
how it will compete in the market. Being a sole maker of wooden utensils he use dynamic pricing. So he
should be focused on quality. Quality positioning and special pricing strategies can always differentiate
his products from other competitors in future.
He should also hire more people to look after his products so that it can be manufactured exceptional and
committing to minimal defects.
2 .
Sharjah, UAE has number of budget hotels and everyone is competing with each other. The quality is
offered Is also best by some of the competitors. In a budget hotel industry he has to apply more than one
strategy. Like the
Competitor-based pricing- Room rates should match with the competitor unless the hotel is offering
something exceptionally outstanding. The company should see the pricing of their competitors who have
same star rating, rooms design and facility in their location.
Penetration Pricing Strategy- In the beginning the hotel should go for penetration pricing by lowering their
product or service cost in hope of building market share. When the same services are offered at lower
price the company will able to gain more consumers and also penetrate the competitive market.

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Assignment on Marketing Theories
Temporary Discount Pricing- when the hotel is just starting its market in new place it should run some
discount campaign to lure customers. For example - cents-off sales, seasonal price reductions and
volume purchases on discounts. This is a free marketing method where the company is available to
attract attention of new clients.
Occupancy-based dynamic pricing- when hotel has some good market share it should modify its strategy.
Raise price when demands are higher in holiday season.
3.
In marketing communication plays a very important role in planning and marketing.
a) Identifying the Target Audience: Who is the stake holder and partners. Its important to understand their
intensity on the business operation. The level of formal communication can be defined here.
b) Communication Objectives: What is the objective of starting a discussion with a client or business
partner. The objectives can be specific or it can be measureable. The objective should represent the
planning clearly.
c) Determining the Message: The marketing communication should always have message. The
marketing message grabs the attention of the audience. The message should target the audience and
what they can get from this business deal.
d) Communication Tools: The selection of correct communication tool is highly essential. The target
audience preference matters as in what media they prefer. Online marketing is a viral method of
communicating with the client.
4.
a) In the case of a perishable food industry item consumer awareness should be created by innovative
and practical methods like-
 By testing the market through sales in persons and noting the response of the consumer for the
product.
 The samples can also be distributed to big stores like fresh vegetable store and by outdoor
publicity advertisement.
 They should Target: local Hotels, Restaurants and Industrial canteens for selling their sample
product.
b) Distribution channel

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Assignment on Marketing Theories
As it is a perishable product they should use a faster distribution network that has cold storage facility.
They should either supply the item directly to the consumer from the chain supply storage or should hand
over the raw material to the distributors and retailer who would take care of it. They can also rent a cold
storage or can purchase one for long term usage. They can use transport system that have inbuilt cold
storage and are fast in delivering the items. The distribution channel can producer to whole seller to
retailer to consumer. Or it can also be producer to retailer to consumer.
5.
a) Luxury Watches- Psychographic segmentation is best suited for luxury brand company to
understand the dynamic needs of the customers. It is dividing the market for luxury watches based on the
consumer personality traits, values, interests, and lifestyles.
b) Movers & Packers- As it is an unorganized service sector that has a very high value in the
economy. The inquiry for these services mostly comes online. Thus it should have Geographic
Segmentation based on demographics, location, needs, preferences, and interests according to their
geographies.
6.
a) Designer Jewels- As it is sold by retailers or whole seller the market segmentation should be of
Behavioral Segmentation. This is based on the decision-making patterns like consumption, lifestyle, and
purchase usage
b) Yoga Center- Psychographic Segmentation is best suited for this type of service. The yoga is not
a necessity but luxury. Thus taking into consideration consumer lifestyle, personality and interests can
draw more customers. It caters to people who care about healthy living and exercise.
7.
UAE is an affluent Middle East country the market environment is influenced by political factors like each
of the emirates has their individual government and policies. UAE has good trade relation with many
countries across the world. It has high GDP per capita allowing the good market for luxury items. It is
considered as a good economy with least unemployment rates having a very high lifestyle for most of its
population. As it is located at the coastal area there is higher possibility for sea transport and trading. A
wealthy country can afford any high developed technology when required. The market environment
analysis as per PESTLE for UAE is developed and highly regulated.
8.