OUR WORK – 1) Target market blog post
|Occasional segmentation – customers plan to purchase for a specific occasion e.g. Birthdays.||Increases demand and conversion.||‘One off’ purchases as customers will buy products without knowing anything about Glendowen, forgetting the business entirely
Increase workload as surges in traffic can put a strain on Glendowen
|Customers may buy periodically. Therefore, need to convert buyers to repeat customers||1|
|Psychographic segmentation – takes the psychological aspects such as interests, lifestyle and attitudes of consumer buying behaviour.||Increases customer loyalty providing greater insights into consumers values and beliefs
Distinct competitive advantage
|Psychographics are intangible = difficult to measure||Take more time and money||2|
|Behavioural segmentation -customers’ behaviour habits e.g. what they’re searching for on Google.||Wider approach giving an insight to why consumers do what they do||Data on behaviour can be difficult to obtain||Distracting and spam; customers are less likely to click||2|
|Locational segmentation –
the split of the market according to different geographical location units e.g. WIFI locations.
|Increase ROI – focusing advertising to find right customers e.g. tourists
Checking in on Facebook advocates word-of-mouth
|Doesn’t tell Glendowen why consumers buy what they do
Repeat purchase unlikely unless online, Glendowen is situated rurally
|Risk of location stereotyping||4|
Just last year alone online sales during holiday occasions increased by 13%, urging Glendowen to create a transactional website as selling more is priority. There’s no doubt that the demand is there as shoppers go to great lengths to try to delight and satisfy the recipient of the gift, thus spending more money. Also, Glendowen’s products are gift-based; consumers are anticipating a 7% increase in gifting spend! However, we can’t disregard psychographic and behavioural segmentation as they are equally important. BUT, Glendowen is a small business with a limited budget; the company may struggle to do the research for these approaches efficiently. Lastly, locational segmentation isn’t priority as Glendowen’s shop is rural and not accessible to a wider audience. Furthermore, locational doesn’t provide a strong enough insight as the above do.
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TA1 will be priority for birthdays as behavioural searches will be easier to achieve as psychographic requires more market research to properly determine the segments. Also, targeting Google key search terms fits with our third DSMC objective.