Individual Reflection Report: MKTG1205 Marketing Principles, SGS

This individual reflection report by Nguyen Minh Chau, submitted for MKTG1205 Marketing Principles at RMIT International University, explores key marketing concepts learned over three weeks of study. The report focuses on market segmentation, discussing its importance and application in business st...Read More

RMIT INTERNATIONAL UNIVERSITY
ASSIGNMENT COVER PAGE
Subject Code MKTG1205
Subject Name Marketing Principles
Campus SGS
Title of Assignment Individual Reflection
Student Name Nguyen Minh Chau
Student ID S3978188
Lecture Nguyen Huu Khang
Date of Submission 20 November 2022
Number of Pages (excluding
cover page)
5
Word Count 933

Nguyen Minh Chau - S3978188
Table of contents
Table of contents…………………………………………………………… 1
Describe….…………………………………………………………………. 2
Interpret………………………………...…………………………………… 2
Market segmentation…………………………………………………. 2
Geographic segmentation……………………………………………. 2
Demographic segmentation…………………………………………. 3
Psychographic segmentation……………………………………….. 3
Behavioural segmentation…………………………………………… 3
Evaluate & Plan...………………………………………………………….. 4
References…………………………………………………………………. 5
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Nguyen Minh Chau - S3978188
Describe
After three weeks of studying Marketing Principles, we were taught the process of
marketing, the marketing environment, and customer-driven marketing strategy. Knowing
that marketing is surrounding us and it appears everywhere we go. Three themed lessons
opened my horizons of marketing knowledge and I knew that my understanding of this
area is still limited. The session that stood out to me was market segmentation, which is
part of marketing strategy research. To be honest, I was aware that in the market, firms
need to divide different kinds of customers each group such as age, gender, and nation,...
to provide the right service or products, however, I do not know the exact name
segmentation for those groups and the reasons why segmentation is vital for a business.
After learning about this, I found out that even corporations or companies need to make a
marketing strategy. Every goods and services have to have a marketing strategy to
promote for each segment in an exact way. It is the foundation for companies to reach
customers more quickly and effectively.
Interpret
Talking about market segmentation, as I understood, it is a marketing term that refers to
the group of potential buyers into segments based on their needs and how they react to a
marketing action. It enables firms to interact with various consumer types who perceive
the value of products and services differently (Investopedia 2022). Besides, due to
narrowing the target of their main market, companies can use their resources more
efficiently including time and money when running a campaign, instead of focusing on the
mass market. Moreover, each person will have their personality, characteristics, and
demands, so it is vital to divide into small groups to tailor campaigns for each segment.
There are four basic types of market segmentation: geographic, demographic,
psychographic, and behavioral (The Street 2019).
Beginning with geographic segmentation which is a marketing strategy aimed at products
or services to different regions, cities, and nations,... where customers live (Qualtrics).
This segmentation helps companies have a better understanding of the market to get an
effective direction for marketing activities. As well, every country will have a diverse
culture and regulations. For example, McDonald's is one of the most popular fast-food
brands in the world. They have more than 40,000 locations in over 100 countries that
serve beef, pork, and chicken mainly. However, when McDonald's opened in India,
instead of using beef they replaced it with other burgers such as Tikki burger (potato
ingredient) or veggie burger (The Reformed Broker 2009). Hence, researching the region
before starting a business is essential to adapt to the local culture as well as avoid
unnecessary controversy.
Figure 1. How good is McDonald’s? They’re selling burgers in India (2009)
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Nguyen Minh Chau - S3978188
The second segment is demographic segmentation, which targets a market by elements
such as age, age, income, gender, family size, education, race, occupation, and
nationality. It allows companies to showcase a variety of information from different
demographic groups.There are numerous methods to display the same item. For
instance, a car might be marketed to parents as a family-friendly vehicle, while a cozy
space for couples travelling alone might be supplied. Additionally, demographic
segmentation frees companies from having to spend as much on advertising as it
specifically targets consumers (Yieldify 2020). Another example of segmenting based on
income is that luxury brands will target wealthy people, whereas Zara or H&M brands are
suitable for low income.
Figure 2: Runway Magazine
On the subject of psychographic segmentation, according to internal characteristics, this
section is strived to classify consumers' reliance on their attitudes, personality, lifestyle,
interests, and social class using which businesses can create highly effective marketing
campaigns (Delve.ai). From there, companies can determine how customers will respond
to various marketing strategies. For instance, in order to develop a brand personality that
appeals to the awareness of its users, Apple uses psychographic segmentation.
Additionally, Apple can approach the luxury, minimalism, and class of the target audience
by using psychographic data and can also develop marketing strategies for different
psychographic segments (Formplus 2021).
The final one is behavioral segmentation, which is created based on customers’
knowledge, relationship, and attitudes to a product. Companies can know the reaction of
consumers to their products, promotions, and brands through this segment. The better
you segment your buyers, the higher your chance of success when marketing to them
(Pestle Analysis 2019). Besides, it not only helps firms to predict how customers will act
when facing their new product or service but also can know the loyalty of consumers to
the brand. For example, Starbucks has the benefit that customers can go there to work,
study, or have formal and informal meetings. Nevertheless, they can know the loyalty of
consumers by relying on a Starbucks card (Methodology 2022).
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Nguyen Minh Chau - S3978188
Figure 3: No Office? No Problem. Meet
Me at Starbucks (2018)
Figure 4: Starbucks Gold Card: What Is It
and Does It Still Exist? (2022)
Evaluate & Plan
Through learning the Market Segmentation lesson, I believe that all of this knowledge will
be useful and helps me to understand more about marketing strategy. Might be after
studying this lesson, whenever I see advertisements I will think about what is the market
segmentation that companies use because every product or service always has to appear
as something that firms want to communicate with customers. Moreover, I have a plan
about opening a coffee shop in Ho Chi Minh city so I need to research carefully the taste
of the people here. Since I'm from Hanoi, the market in the location where I want to open
up will have a different region and culture, therefore I need to conduct market research to
avoid issues like being unsuitable for the locals. The market segmentation lesson is really
useful for not only my personal life but also for my career in the future.
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Nguyen Minh Chau - S3978188
References
● Investopedia (25 July 2022) Market Segmentation: Definition, Example, Types,
Benefits
<https://www.investopedia.com/terms/m/marketsegmentation.asp>
● The Street (11 January 2019) What is Marketing Segmentation? Definition and
examples
<https://www.thestreet.com/markets/corporate-governance/what-is-market-segmentat
ion-14829729>
● Qualtrics What is Geographic Segmentation and how to put it to work
<https://www.qualtrics.com/experience-management/brand/geographic-segmentation>
● Figure 1: The Reformed Broker (26 May 2009) How Good is McDonalds? They're
Selling Burgers in India.
< https://thereformedbroker.com/2009/05/26/how-good-is-mcdonalds-theyre-selling-b
urgers-in-india>
● Fieldfy (31 July 2020) Demographic segmentation defined with 5 marketing examples
<https://www.yieldify.com/blog/demographic-segmentation-ecommerce-marketing/>
● Figure 2: Runway Magazine
<https://www.runwaylive.com/top-9-luxury-brands.html>
● Delve.ai Psychographic segmentation: examples
<https://www.delve.ai/blog/psychographic-segmentation>
● Formplus (4 Feb 2021) Pyschographic segmentation: Definition, examples +
{Variables]
<https://www.formpl.us/resources/market-segmentation/psychographic/>
● Pestle Analysis (1 Oct 2019) Behavioural Segmentation: Definition and Marketing
Examples
<https://pestleanalysis.com/behavioral-segmentation/>
● Methodology (7 Oct 2022) Starbucks Segmentation, Targeting and Positioning –
Targeting Premium Customers with Quality Products and Service
<https://research-methodology.net/starbucks-segmentation-targeting-and-positioning-
targeting-premium-customers-with-quality-products-and-service/>
● Figure 3: No Office? No Problem. Meet Me at Starbucks
<https://stories.starbucks.com/stories/2018/no-office-no-problem-meet-me-at-starbuc
ks/>
● Figure 4: Starbucks Gold Card: What Is It and Does It Still Exist?
<https://www.rather-be-shopping.com/blog/starbucks-gold-card/>
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