Unit 3 Introduction to Marketing Assignment 3 (P5) Date Set: 15th Jun 15 Deadline: 29th Jun 15

Assignment 3 Learning Outcomes All WILL be able to describe how John Lewis targets customers (consumer/business) for selected products. All SHOULD be able to explain why John Lewis targets customers (consumer/business) for selected products. Learning Objective: To know how and why customer groups are targeted using marketing segmentation.

Consumer vs. Customer Buyer Business-to-Business (B2B) One Business sells to another (EKS Office Equipment) Learning Objective: To know how and why customer groups are targeted using marketing segmentation.

Market Segmentation (Consumer) Using market research to identify and target groups of customers who respond to marketing activity in the same way Geographic Demographic Psychographic/Lifestyle Learning Objective: To know how and why customer groups are targeted using marketing segmentation.

BIC Segmentation Best value for money - This type is typically bought by offices and households that have writing instruments in virtually every room. Everyone is allowed to use any available pen, so there's no great problem if one is misplaced. Households tend to seek lower priced pens, and regularly make new purchases of assortments of writing instruments based on current needs. Seeking specific benefits - Here consumers are looking for a more personalised item; something they regard as 'my pen'. It will be kept in a private place belonging to that individual, who may be reluctant to let anyone borrow it. Buying decisions will typically take longer, and involve careful consideration over choice. Key features looked for will include the pen being comfortable to hold and its capacity for producing smooth, writing that reflects the individual e.g. by colour or handwriting style. Marketing activity therefore needs to focus on these more sophisticated individual needs. Impulse buy - Impulse buys are unplanned. Innovative designs will attract this segment, largely because the consumer is buying for pleasure. Purchasing in this segment is far more emotional and so the skilful marketer will seek to create 'objects of desire'. Attention grabbing Point of Sale displays are essential to stimulate impulse buys.

Assignment 3 1. Explain the difference between customers, consumers and buyers with examples of John Lewis 2. Explain the importance of identifying who has influence over purchasing decisions 3. Explain market segmentation in consumer markets: Why is it important? Bases for segmentation - geographic, demographic, psychographic, lifestyle Describe how the ACORN and MOSAIC are used by organisations to identify and target groups. 4. Explain market segmentation in business markets: Describe how Decision Making Units (DMU) used to identify customers in business-to-business markets? Describe how these business markets are segmented - size, region, value, public/private/voluntary sector, product, industry Explain the benefits for different members of the DMU - cost benefits, ongoing relationships, security of supply

Market Segmentation (Business) Decision making unit (DMU) – All people/groups who are involved in the purchasing process: Influencers Users Buyers Deciders Specifiers Gatekeepers Learning Objective: To know how and why customer groups are targeted using marketing segmentation.

Market Segmentation (Business) Size Region Value Public/Private/Voluntary sector Product Industry Benefits for different members of the DMU Cost benefits Ongoing relationships Security of supply Learning Objective: To know how and why customer groups are targeted using marketing segmentation.

John Lewis Products Choose 6 different products sold by John Lewis. For each product: Produce a mini information sheets about the product – include a picture, size, description etc. Select a target group and explain why this group has been selected for this product (Use the info in the JL handout) What are the reasons for that choice of target group? (Consider accessibility, current and future prospects of this group of customers, profitability, ability to service customer group, fit with organisation’s aims and objectives)