Segmentation, Target Marketing, and Positioning
AB219-01 Unit 6 Assignment
Antecedents of Target Marketing
1. In the first part of the video, Jen Mullin, the Vice President of Marketing for Numi Organic Tea, clearly describes their typical customer. Using the information on segmentation you learned from reading Chapter 8 in Lamb, et al. (2014), discuss who the customer is and how the Numi marketing team figured that out?
Mullin, the vice president of Marketing described the ideal customer to be the college students or the eco-moms. This conclusion was reached by using demographic segmentation. Mullin was able to look at the consumers who usually buy tea the most. From that information, Mullin was capable of knowing their exact customers. Knowing the demographics for the products will assist the marketing team in finding not only the drawing into the exact demographic but also trying to get other customers. By providing free samples to the local businesses and to the consumers they had the ability to find the ones who were interested in the goods they were manufacturing. Using this information, they had the ability to find the best to get the consumers who were interested in their product as well as those who were not yet. By providing the goods at luxury hotels, spas, and restaurants they had the ability to expose themselves to various consumers as well as increase the consumer base.
In addition, they were able also to expose the customers who are not able to grow to luxury businesses by providing their worries to the big chain stores like Costco or Target. This assisted the business to reach the customers with a tight budget. The Organic Tea Company had the ability to cover the bases by providing their products to the luxury businesses as well as to the different stores. The sample targeted the exact customers of the Numi Organic Tea Company but it also assisted the company in determining the best way that could be used to increase the consumer base individually and with various companies.
2. What is Numi’s principle marketing plan? In what way does Numi’s marketing team use what they know about their target demographic to implement their marketing plan?
Numi’s principle market plan is to offer education about their products to the consumers. Numi is offering a diversity of the customized marketing materials to allow the people to see the product and what the company is offering to the market. The company also offers free samples to the customers. Numi mostly targets the colleges and does things which assist women society. In addition, Numi targets the Brest Cancer Walks and go to the store where women buy the organic food to advertise their name and their products. Since Numi knows the target markets, it makes it easier for customizing the market features.
Numi wants the market to have information that their product (tea) is made from health stand and marketing features which are to offer the customer as well as the new clients a chance to have a taste of their product. Numi believes that word of the mouth is the best tool to use for marking which can make or break you. In addition, Numi uses the principle marketing plan involving the four Ps. Price, Product, promotion and Place are four items which assist in determining how the product is marketed and the target customers. Bu using this principle, Numi found that by giving free samples to the luxury institutions and to cruise ships would promote the products to the consumers who they have not already reached. The Numi Organic Tea Company also recognized the significance of giving the free samples at the chain stores (Lamb et al., 2012).
3) Jen Mullin, the vice president of Marketing for Numi Organic Tea, describes their typical customer as a female, college-educated tea lover, possibly an “eco-mom.” What type of market segmentation has she used to identify this customer group?
a. Geographic segmentation
b. Demographic segmentation
c. Ethnic segmentation
d. Psychographic segmentation
The vice president of Numi Organic Tea Company, Jen-Mullin uses demographic segmentation to identify the customer group. She uses the demographic segmentation since it focuses on age, ethnic, gender, family life cycle, and background. Once she had to watch the customers of the tea and the purchasing data of the company she could have as well as finding the exact customers. By using the method of demographic segmentation, Mullin knows that it was a widely available method which she can relate to the customers. Mullin and the entire company had an assumption that the customers would majorly be the young adult females. The exact demographic of customers has been found to be the older group. The method of demographic segmentation gave Jen-Mullin the chance to identify customers who had an interest in the organic tea. Jen did a research to know the exact consumers, found the interested customers and it assisted in promoting the product and pushed the product to the community.
4) Another way Numi Organic Tea identifies potential customers is through what they want from the product; they are looking for organic, fair-trade, premium quality tea, according to the video. What type of market segmentation is used to identify customers in this way?
a. Geographic segmentation
b. Demographic segmentation
c. Benefit segmentation
d. Usage-rate segmentation
Benefit segmentation is the process in which customers are grouped into the market segments based on the benefits which they get from the product (Lamb et al., 2012). People in search of the organics look for the health benefits which arise from the consumption of the organic products. Drinking Numi tea does not harm but it benefits the user’s health. Fair trade is the alternative method to the conventional trade which is based on the partnership among the consumers and producers. When the farmers can sell based on the Fairtrade terms, it offers them a better deal as well as advanced terms of the trade. This gives them an opportunity to advance their lives as well as to plan for the future.
5) Because Numi Organic Tea has identified more than one target market, for example, “eco-moms,” college students, and family travelers, they should be particularly aware of the ____________________, which helps explain how consumption patterns differ at different stages determined by a combination of age, marital status, and the presence or absence of children.
a. Family life cycle
c. Undifferentiated targeting strategy
d. Concentrated targeting strategy
The Family Life Cycle usually emphases on the requirements of the family and their resources, income, as well as the different consumer assemblies (Lambs et al., 2014). The Numi Organic Tea Company has the ability to find the appropriate way to use so as to promote their products based on the above-mentioned factors. The company also considered the various stages which the customers are at as well as how best to market the products to the various customers. The process of marketing to the college students is done differently from the marketing done towards moms. By knowing the difference, the company can improve the effects which their promotions have.
6) The demographic variable that Numi Tea marketers were examining when they recognized that people who had discovered their product at a high-end spa or fine restaurant often shopped for groceries at Costco was _________________________.
By getting to know that all their clients cannot afford their luxury business which offers the products like samples, Numi Organic Tea Company has the capability to find a good way of promoting the products to the people with less income. By knowing the need to appeal the people with the less income, the company can target them by giving the tea at a reasonable price. If the company offers the tea like a Target, it is able to reach to the family of the consumers which do not visit the luxury enterprises or even the ones who cannot afford to purchase.
7) Numi Tea uses premium ingredients to create a premium tea at an affordable price, according to Jen Mullin. This is a form of ______________________ that the company uses to distinguish their products from those of competitors.
a. Perceptual mapping
b. One-to-one marketing
c. Product differentiation
d. Market segmentation
The form used by Numi Tea to differentiate their products from the ones of the competitors is the product differentiation. Numi Tea usually uses the best form in their product. In addition, they use organic products in making the tea and this gives the customers the best product to choose. This form of product differentiation assists the company to try and persuade people that the brand of their tea is much better compared to that of other companies. The company gives the customers a chance to have a taste of the tea so that the customers may choose their favorite brand.
8) Which of the following is the least likely targeting strategy that Numi Tea would select to market their products?
a. Undifferentiated targeting
b. Concentrated targeting
c. Multisegment targeting
d. Niche targeting
The Company is least probable to use the undifferentiated targeting since they give varieties of tea with a different range of the tea used. If the company was to use the method of undifferentiated targeting, it would target only on one flavor of the tea. But instead, they give the various flavors of the tea like samples to various businesses. This permits the customers to have experience on everything that Numi Organic Tea Company has to provide. The diversity which is provided by Numi is the main reason for the company not using undifferentiated targeting method since the company does not want their clients to feel limited.
9) When Jen Mullin explains that her company seeks to include their product in gift bags and other promotional giveaways by companies and other organizations, she is recognizing the need to change customers’ perceptions through sampling.
Numi doesn’t recognize the companies which ask for the samples as optimizers. Instead, the Numi Company views the samples like a way of promoting their brand as well as allowing them to reach to the new consumers. Numi united with the causes since they did not only want to bring the awareness but they also wanted to offer a drink which will assist the people participating in the actions. By giving the free samples to various organizations or events, the products offered by Numi was available to assist the various organizations and also gave the clients opportunity of experiencing the various products offered by Numi Company.
10) To graphically map the “channel conflict” between marketing Numi Tea to premium spas, hotels, and restaurants and selling the same brand at mass market stores such as Target, the company could employ perceptual mapping.
By Numi Company giving their tea at hotels, restaurants and spas can promote the product as well as increase the sales. If the company was to provide their products at chain stores like Target, the Numi Organic Tea Company would be able to supply the tea to customers who had already sampled the product at the various developments as well as the customers looking a new company or even new products which have not sampled. Nevertheless, it is very likely that the customers who have already sampled and got the one they like would visit the chain stores and buy the tea.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage.
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