Assignment – 2
For
Marketing
Management
Section A (20 Marks)
Write short notes
on any four of the following
1.
Outsourcing Physical Distribution
2.
Integrated Marketing Communication
3.
5 M’s of Advertising
4.
Service Blueprinting
5.
Holistic Marketing
Section B (30 marks)
(Attempt any three)
1.
“With the emergence of more and more multinational and
domestic companies joining the tide, opportunities for marketing professional
are abounding”. Elaborate this statement.
2.
Discuss the different bases for classification of services.
3.
What are the components of Marketing Information System?
4.
Discuss the functions that are essential to achieve the
organizational effectiveness.
Section C (50 marks)
(Attempt all questions. Every question carries 10 marks)
Read the case “Nivea
Sun Protection Products”
and answer the following questions:
Nivea Sun Protection Products: A Case Study in Market
Segmentation
A careful market
segmentation is critical to successfully selling products; you need to
understand what makes different consumers tick and how best to reach them. Skincare giant Nivea conducted an impressive
market research campaign that can be modeled by other firms.
First, a little
background: Beiersdorf is an international skincare company with leading brands
such as Nivea and Eucerin. They have
expanded significantly in the UK market through effective segmentation that
matches consumer needs. The company has become
the value leader in the field, meaning people spend more on Nivea sun
protection products than any other brand.
One important product
line for Nivea is sun-related skincare products, worth upwards of £173.6
million in the United Kingdom alone.
Nivea’s reputation in this broad segment is bolstered by robust
scientific research and development focused on providing the best protection
possible from the sun’s skin-damaging rays.
The key was to
further segment the sun protection products market by two important factors:
Skin type and the climate where the products are used. Skin types include very
light, fair, normal, dark and children (who tend to have thinner, lesser
developed skin) while the climates include moderate, hot and very hot.
The level of protection is measured by SPF, which stands for Sun
Protection Factor. SPF 20 may be adequate protection for a fair-skinned
person in the UK, but SPF 40 might be recommended for the same person if they
were in a more tropical environment.
The company’s
market research revealed significant demographic differences between men (who
go for convenience), women (who gravitate towards more luxurious products) and
children (a market reached through adult parents, mostly mothers).
Through the use of surveys and focus groups, Nivea was able to determine
the attitudinal differences between distinct segments of consumers.
They discovered
concerned consumers who were not at all concerned about getting a tan but
instead were more focused on protection from sun damage. Sun avoiders
don’t buy these products at all because they avoid high-exposure situations,
although with education they may be convinced of the need for sun
protection product purchases. Conscientious sun lovers love being out in
the sun but are concerned about protection. Careless tanners, on the
other hand, don’t worry about the sun at all and buy low-SPF products if they
buy any at all. Finally, the naïve beauty conscious people are the ones
who want to have a good tan but don’t adequately understand the relation
between SPF and protection.
Nivea used this
research to develop their unique brand positioning that includes making sun
care as simple as possible, providing education about the importance of
protection and finding ways to reinforce that protection message. One
product innovation that came from this research was a product that offered full
and instant protection from both UVA and UVB sunrays because many consumers
fail to apply such products in the necessary timeframe for effectiveness (20-30
minutes before exposure). Other product innovations have included sprays
that are easy to apply, colorful products for children and water-resistant
products for both children and adults. Advertising for children’s
products targets the mothers of children with a protection message.
Questions
- Discuss the facts revealed by a company’s market research in context with the major demographic differences between men and women.
- Explain the bases for segmenting the consumer market.
- Discuss the impact of research study on company’s unique brand positioning?
- How a firm develops an understanding of customer segments that take buying habits and motivation in account?
- Give light on the role of segmentation in product development.
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