MKTG116 Assignment #2: Segmentation, Consumer Decision Making & CRM

Course Code:	MKTG 116
Course Name:	PRINCIPLES OF MARKETING

 

 

 

MKTG116 Assignment #2: Segmentation, Consumer Decision Making & CRM

 

 

 

 

Assignment Type: Individual Written Assignment

Due Date: Module 9

Grading: Total 25 Marks, Worth 10% of Final Grade

Submission: An electronic version of the assignment is due in the Assignment Folder in eCentennial by the time specified by your professor. Any late submissions will receive a -15% penalty per day.

 

Learning Outcome

Evaluate a company’s approach to customer segmentation and targeting, explain customer buying decisions and the role of various factors on the consumer’s buying decisions and discuss how a company builds customer loyalty and engagement.

 

Assignment Requirements

 

This assignment is a continuation from Assignment #1. For the company that you selected in Assignment #1, select one product or product category that the company produces. For example, if your company was Apple, you could select the MacBook. If your company was Nike, you could select Athletic Wear or shoes.

 

Prepare a written report that answers the following questions. Organize your report by using the same question numbers and headings as outlined below:

 

Please answer the following questions:

 

Question 1: Customer Segmentation (Answer should include completed template, PLUS a sentence or two to answer Part 1b) – 10 Marks

 

1. Utilizing the Template provided by the professor, entitled, Segmentation Variables Template, for the specific product or product category you have chosen, on what basis do you think your company segments its customers? Commonly used characteristics to segment markets (as discussed in class) are geography, demographics, psychographics, benefits sought and usage rates. Utilizing the Template provided, explain the market segmentation bases for this product. Review chapter 8, section 8-3 to support your answer as to the characteristics of segmentation. (See template on page 3)

 

1. Summarize who you believe the primary target market is for this product?

 

 

 

 

Question 2: Consumer Buying Decision (approximately ½ page) – 5 Marks

1. What cultural, social, individual and psychological factors are impacting the consumer’s purchase decision for your product? Explain why and how these factors impact the consumer’s decision. These factors are summarized in Exhibit 6.3 and throughout chapter 6.

 

Question 3: Customer Relationship Management (CRM) (approximately ½ page to 1 page) – 5 Marks

1. Your company will want to ensure customers remain loyal and are engaged with the product and company. As discussed in class, building a strong relationship and trust with consumers are important factors to building loyalty. What does your company do to build customer relationships, strengthen customer engagement and trust and keep customers loyal?

 

Some ideas to consider when answering this question, but not limited to just these question – Does your company use CRM technology to assist with building a relationship? How do they use technology? What CRM tools do they use? What is the role of salespeople in selling your product to the end consumer? How are customer issues with your product resolved? What kind of messaging does the company use to build trust and loyalty with customers?

 

 

Report Formatting Requirements (5 Marks)

 

Your report must include a cover page with your name, student number and the name of the company you have selected

 

Your report should be organized in sections based on the question number and headings provided above. Each answer should follow the question number and heading so it is clear as to which question is being answered.

 

Please use 12 pt font, single spaced.

 

You will be marked for spelling and grammar so ensure you proof read your report and spell check

 

APA format in-text citations and a bibliography are required. Review guidelines for APA formatting provided by professor and ask for clarification prior to submission if required.

 

 

 

 

 

 

 

 

 

 

 

 

Template to complete question 1a: Customer Segmentation

 

For your product, select which segmentation variables you are using to segment the market and explain/describe the characteristics that are reflective of your customer.

 

For example, if your product is a luxury SUV that performs well in snow and ice, your segmentation overview may look something like this:

 

Segmentation for Luxury SUV
Bases for Segmentation	Sub-Bases	Explanation/Description
Geographic	Region of the country or world, climate, population density?	Canadian Provinces with cities with large population density – Ontario, British Columbia, Alberta
Demographic	Income Segmentation: Low, middle or high income?	High income
	Family Life-Cycle Segmentation: Young, middle-aged or older? Single, divorced or married? Children or no children?	Married with 2 or more children
Psychographic	Lifestyle Segmentation: Socioeconomic characteristics, beliefs, how they spend their time?	High income with busy lifestyle – family involved in many sports, drive many kids in carpools

 

Please use template on next page.

 

 

Select the appropriate segmentation variables within the chart below and describe how they represent the market for your product.

 

Bases for Segmentation	Sub-Bases	Explanation/Description
Geographic	Region of the country or world, climate, population density?
Demographic	Age Segmentation: Age group/ generation?
	Gender Segmentation: Traditional or Modern?
	Income Segmentation: Low, middle or high income?
	Ethnic Segmentation: Multicultural or targeted?
	Family Life-Cycle Segmentation: Young, middle-aged or older? Single, divorced or married? Children or no children?
Psychographic	Personality Segmentation: Traits, attitudes and habits?
	Motives Segmentation: Emotional or rational?
	Lifestyle Segmentation: Socioeconomic characteristics, beliefs, how they spend their time?
Benefit Segmentation	What benefits do they seek to gain from the product?
Usage-Rate Segmentation	Former, potential, first time, light or irregular, medium or heavy user?