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Posted: December 28th, 2021

Market segmentation and target strategies

Market segmentation and target strategies
Introduction Market segmentation is regarded as one of the vital element that defines contemporary marketing. It is simply the process of demarcating the market into various groups known as segments based on certain factors. These factors include demography, Geography, psychology and behavior of the existing and anticipated customers. Segmentation of the market is essential because it assist the marketers to have a better comprehension of the customers or the audience they intend to target and, therefore, making the entire process of marketing more effective and efficient.
Segmentation process involves analysis of some market variables with the intention of prioritizing the need of customers and satisfying the customer. When customers are satisfied then the Company will be able to competitively take advantage of their competitors. The characterization of market segment takes different forms which have features that bring out the preferences of the audience or the targeted customer. These features include: homogeneous preference which refers to audience/customers with similar preferences over a particular product. A diffused preference entails customers/audience with varying level of preference for a particular product and finally, the clustered preference which means that customers share preference over a particular product (Horan et al, 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers).
Reeboks was conscious of these market preferences when it was designing it marketing strategies and characterizing its market segments. For instance,
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Reeboks was conscious of these market preferences when it was designing it marketing strategies and characterizing its market segments. For instance, Reebok Company was able to recognize that fashion and style are what influences the urban team to purchase athlete shoes other than mere performance.
Therefore, the diffused preference of its customers played a huge role in the designing of its urban market segment. Consequently,
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Therefore, the diffused preference of its customers played a huge role in the designing of its urban market segment. Consequently, the diffused preference was a motivation of Reebok to create a new brand known as the RBK specifically to suit the urban market team population.
Market segmentation has to take in due consideration notorious three areas of marketing a product including mass marketing, product differentiated marketing,
and target marketing. In the year, 1924 to 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers Reebok was using the mass marketing which entailed a huge coverage in terms of producing,
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and target marketing. In the year, 1924 to 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers Reebok was using the mass marketing which entailed a huge coverage in terms of producing, distribution and promotion of its athlete shoes. The promotion of the athlete shoes was to all the buyers who could purchase the shoes.
However, upon realizing the diversity and variety in each customer as an individual,
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However, upon realizing the diversity and variety in each customer as an individual, Reebok began to approach the marketing of its product through segmentation of the market by adopting marketing programs that are able to suit and match the need of each individual customer.
Therefore, it embraced the target marketing by coming up with coming up with different market segments. Reebok has distinguished its market segments using several segmentation variables and,
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Therefore, it embraced the target marketing by coming up with coming up with different market segments. Reebok has distinguished its market segments using several segmentation variables and,
therefore, produce products and markets mix that suit and match the established segments. The following are the segmentation variable that informed Rebook in creating of its market segments:
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therefore, produce products and markets mix that suit and match the established segments. The following are the segmentation variable that informed Rebook in creating of its market segments:
1. Demographic segmentation Demography is defined by various values which are the basis of dividing the customers into the segment. Demographic values include the level of education, the religion a person profess, the race of a person, the size of family, the cycle of family life, the income a person is entitled to, the occupation of a person, gender, age, the generation, the social class and nationality of a person. Demography is appropriate as a variable because its value is easily ascertainable and assessable; moreover, they influence the sale of numerous products. Reebok is using several of these variables under demography on the marketing of its products, including:
1.1 Age and life-cycle segmentation It is worth noting that the age of a consumer has a direct impact on their needs and wants. When consumers advance in age their priorities shifts because of the changes in their needs and wants. Therefore,
Reebok is maximizing on the age and life-cycle variable in the approaching of the market in several ways.
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Reebok is maximizing on the age and life-cycle variable in the approaching of the market in several ways.
One of the ways is that Reebok is partnering with the National Basket association in making of branded hats.
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One of the ways is that Reebok is partnering with the National Basket association in making of branded hats. It is factual that majority of the basket players are youth and, therefore, the Reebok’s target is to reach the youths (Solomon,
Secondly, Reebok is targeting the urban team and the majority of those teams are constituted by youths.
It is also using a unique approach to having its product purchase by the youngster in the urban area. First,
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It is also using a unique approach to having its product purchase by the youngster in the urban area. First, Reebok is embracing fashion and styles in its athlete shoes so as to attract the youths in the urban area.
Secondly, Reebok is partnering with celebrities such as Jay-z, G-Unit, Eve,
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Secondly, Reebok is partnering with celebrities such as Jay-z, G-Unit, Eve, and Allen Iverson to brand its products in their names so as to influence the youths to buy its products.
1.2 Gender segmentation Generally, the needs and wants of men and those of women are different and hence they need to be differentiated. The varying of the need and want among men and women is informed by the different attitudes they have towards a certain product. Reebok is also using this variable in the marketing of its product in the following way: it came up with Easy tone wear that was specifically designed to fit and match the needs and want of women. It also introduced both men and female wear store in the New York.
Reebok is gender sensitive since it is brandings some of its product with the names of both men and women celebrities so as to reach both genders. Some of the female celebrities used to brand its products include Venus Williams and hip-hop star Eve. However, it is worth noting that with the emergence of the metro sexuality and its notoriety Reebok marketers should take note of that and not just limit the definition of a product to male or female.
1.3 Generation segmentation This type of variable recognizes the fact that the major influence of a particular generation is the time in which that generation lives and grows in.
Therefore, there are other important arrays of events that characterize a particular generation. They include movies, music, politics, and others.
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Therefore, there are other important arrays of events that characterize a particular generation. They include movies, music, politics, and others. Thus, with regard to this variable, marketers target the customers of a particular generation using the icons and images that are relevant and relative to a particular generation (Solomon, 2003).
Generation variable is quite evident in the strategy adopted by Reebok in the marketing of its product.
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Generation variable is quite evident in the strategy adopted by Reebok in the marketing of its product. It has brought on board several iconic celebrities that suit the contemporary generation so as to sell its products to the youthful urban teams’ population. Some of the celebrities that reebok is using their names to brand its footwear product include Jay-z, G-unit, basketball star Start Allen Iverson and eve in the United States. It has also extended the application of this variable beyond the border to China mostly to target the teens and young adults by setting up a basketball court and naming it after a Chinese basketball star known as Yao.
2. Geographic segmentation This is another variable Reebok is using in the marketing of its product. It entails demarcation of the market or division of the customers according the location they live or geographic units. The units can be constituted by states, cities, climates or regions.
Geographical variable are appropriate because it enables the Reebok Marketers to identify the need,
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Geographical variable are appropriate because it enables the Reebok Marketers to identify the need, wants and preferences that people of a particular geographical location have and then develop their product to suits those needs and preferences. Moreover, this variable is appropriate because it enable the Reebok marketer to comprehend and appreciate the diversity of the people in terms of cultures, norms and practice.
Therefore, the Reebok Marketers while designing the marketing strategies have to be sensitive to the aforementioned diversities.
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Therefore, the Reebok Marketers while designing the marketing strategies have to be sensitive to the aforementioned diversities.
This variable has informed the marketing strategy of the Reebok product in various ways. First,
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This variable has informed the marketing strategy of the Reebok product in various ways. First,
Reebok was able to recognize and appreciate the factors that influence the purchasing process of the product by the urban market team population.
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Reebok was able to recognize and appreciate the factors that influence the purchasing process of the product by the urban market team population.
Therefore, Reebok identified the uniqueness of the purchasing needs and preference of the urban team population which is greatly influenced by fashion and style rather than performance.
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Therefore, Reebok identified the uniqueness of the purchasing needs and preference of the urban team population which is greatly influenced by fashion and style rather than performance.
Thus,
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Thus,
it broke from its traditional way of advertising its foot wears which were mainly by branding its product with infamous sports celebrities and embraced the use of hip-hop celebrities in branding of its product.
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it broke from its traditional way of advertising its foot wears which were mainly by branding its product with infamous sports celebrities and embraced the use of hip-hop celebrities in branding of its product.
The necessity of shifting of the strategy was informed by the fact that most of the resident in the United States are ardent fans of hip hop and they buy their clothing branded with hip hop stars.
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The necessity of shifting of the strategy was informed by the fact that most of the resident in the United States are ardent fans of hip hop and they buy their clothing branded with hip hop stars.
In this circumstance,
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In this circumstance,
the culture and the norms of the people living in urban areas in the United States are playing a huge role in the determination of the marketing strategy.
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the culture and the norms of the people living in urban areas in the United States are playing a huge role in the determination of the marketing strategy.
The sensitivity of these cultures and norm are the basis the good marketing strategy adopted by Reebok.
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The sensitivity of these cultures and norm are the basis the good marketing strategy adopted by Reebok.
The geographic variable has also been used in the marketing of reeboks products in the China Market.
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The geographic variable has also been used in the marketing of reeboks products in the China Market.
Reebok recognized several cultures and norms that are unique in the circumstance of China.
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Reebok recognized several cultures and norms that are unique in the circumstance of China.
One was the rising level of interest in sports in China due to the fact that China was successful in the 2004 Olympic in Athens.
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One was the rising level of interest in sports in China due to the fact that China was successful in the 2004 Olympic in Athens. Two, is the fact a china Basket Ball star moved to NBA and therefore 93% of China Male population that is aged between 13 and 25, watch the NBA sports on the TVs on the regular basis. These two factors characterized the segmentation of the Chinese market as a prime market.
3. Behavioral segmentation The behavior of the customers is another variable applied by Reebok in the marketing of its products.
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3. Behavioral segmentation The behavior of the customers is another variable applied by Reebok in the marketing of its products.
It entails placing of the customers or the market generally on the basis of the use of the product, the level of knowledge the customers have on the product,
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It entails placing of the customers or the market generally on the basis of the use of the product, the level of knowledge the customers have on the product,
the attitude of the customer and how they respond to the product (Jeannet, 2010 – Essay Writing Service: Write My Essay by Top-Notch Writer).
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the attitude of the customer and how they respond to the product (Jeannet, 2010 – Essay Writing Service: Write My Essay by Top-Notch Writer).
The behavioral variable is constituted with other sub-variables such as the rate of usage of the product, occasion, attitude, and the readiness of the buyer to purchase the product,
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The behavioral variable is constituted with other sub-variables such as the rate of usage of the product, occasion, attitude, and the readiness of the buyer to purchase the product,
the attitude of the customers among many others. However, the relevant variables Reebok is using for purposes of marketing of its product include occasion.
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the attitude of the customers among many others. However, the relevant variables Reebok is using for purposes of marketing of its product include occasion.
It entails dividing the people according to the basis of the time they get the information about a product, buying the product or put into use the product.
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It entails dividing the people according to the basis of the time they get the information about a product, buying the product or put into use the product.
Occasion variable is evidently being used to reach the Chinese Market.
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Occasion variable is evidently being used to reach the Chinese Market.
Reebok is holding the view that it is the right time to explore the Chinese market due to the fact that China was successful in the 2004 Olympics in Athens and stage the 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers Olympic Games.
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Reebok is holding the view that it is the right time to explore the Chinese market due to the fact that China was successful in the 2004 Olympics in Athens and stage the 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers Olympic Games.
Attitude is another form of a behavioral variable that Reebok is using especially in the Chinese Market. Attitude entails the enthusiasm,
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Attitude is another form of a behavioral variable that Reebok is using especially in the Chinese Market. Attitude entails the enthusiasm,
the positivity or the negativity people might hold towards a certain product.
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the positivity or the negativity people might hold towards a certain product.
In the Chinese Market Reebok intends to change and shape the attitude of the teens and the youths towards its products by incorporating in its trademark some features that will show the Chinese basketball star Yao.
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In the Chinese Market Reebok intends to change and shape the attitude of the teens and the youths towards its products by incorporating in its trademark some features that will show the Chinese basketball star Yao.
Targeting strategies Reebok is applying Targeting is usually the second phase in the entire process of segmentation.
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Targeting strategies Reebok is applying Targeting is usually the second phase in the entire process of segmentation.
Targeting comes after the identification of the segments and entails the decisions Reebok has to make on the particular number of the customer they want to serve.
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Targeting comes after the identification of the segments and entails the decisions Reebok has to make on the particular number of the customer they want to serve.
Moreover, it entails the identification of specific segment that the Reebok marketer intends to target in the promotion and sale of the Reebok products.
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Moreover, it entails the identification of specific segment that the Reebok marketer intends to target in the promotion and sale of the Reebok products.
1. Differentiated marketing There are three major targeting strategies Reeboks has employed in deciding, the appropriate number and group/ segment of customer the company is targeting. One of the effected strategies is the single segment strategy in other terms it is referred to as the differentiated marketing.
The whole idea informing this strategy is the fact that a company comes with products and offers that are specifically designed to suit the needs of many market segments.
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The whole idea informing this strategy is the fact that a company comes with products and offers that are specifically designed to suit the needs of many market segments.
Then it goes ahead to target the market segments with those specific products and offers.
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Then it goes ahead to target the market segments with those specific products and offers.
Consequently, the many market segments targeted by the company will result in a higher sale of its products and strengthen its place in each market segment.
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Consequently, the many market segments targeted by the company will result in a higher sale of its products and strengthen its place in each market segment.
Nevertheless, this type of strategy has its own limitations.
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Nevertheless, this type of strategy has its own limitations.
The cost of maintaining and implementing this strategy is very high due to the necessity of formulating marketing plans suited for each segment (Ryan, 2009).
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The cost of maintaining and implementing this strategy is very high due to the necessity of formulating marketing plans suited for each segment (Ryan, 2009).
Reebok has employed this strategy in the following circumstance. First, Reebok has targeted several market segments,
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Reebok has employed this strategy in the following circumstance. First, Reebok has targeted several market segments,
including the United States urban team market segment by specifically coming up and applying different marketing strategies that will enable its product sells among the United States urban teams.
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including the United States urban team market segment by specifically coming up and applying different marketing strategies that will enable its product sells among the United States urban teams.
One of the strategies is the use of the names of the hip-hop celebrities to brand and subsequently market its products.
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One of the strategies is the use of the names of the hip-hop celebrities to brand and subsequently market its products.
Secondly, Reebok is also targeting the youthful population segment and specifically in both China and the United States. In the US,
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Secondly, Reebok is also targeting the youthful population segment and specifically in both China and the United States. In the US,
its marketing strategies of using the names hip-hop celebrities to brand its products are a clear demonstration of their intention to targets the young adult population.
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its marketing strategies of using the names hip-hop celebrities to brand its products are a clear demonstration of their intention to targets the young adult population.
It is believed that the young adult have a high tendency of purchasing products that are branded with the names of a hip-hop star.
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It is believed that the young adult have a high tendency of purchasing products that are branded with the names of a hip-hop star.
The same strategy has also been applied in China where Reebok is using a Chinese basketball star to market its products to the young adults and teens.
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The same strategy has also been applied in China where Reebok is using a Chinese basketball star to market its products to the young adults and teens.
It built a basketball court and named after the star. Moreover, it is also targeting the both the male and female segments.
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It built a basketball court and named after the star. Moreover, it is also targeting the both the male and female segments.
This is evident because it introduced innovative footwear known as easy tone specifically for women and also it has female footwear store in the New York City.
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This is evident because it introduced innovative footwear known as easy tone specifically for women and also it has female footwear store in the New York City.
Additionally, it went ahead to establish an absolutely new store meant for men’s wear, a clear indication of its target to the male segment.
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Additionally, it went ahead to establish an absolutely new store meant for men’s wear, a clear indication of its target to the male segment.
Finally, it is also targeting states,
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Finally, it is also targeting states, it is exploiting the Chinese Market after realizing that it is a prime following the success of China in the 2004 Olympic and the fact that China staged the 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers Olympics.
2. Concentrated marketing strategy/ niche marketing strategy It involves coming up with a product and a market segment that are very specific and well ascertained.
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2. Concentrated marketing strategy/ niche marketing strategy It involves coming up with a product and a market segment that are very specific and well ascertained.
This marketing strategy is considered effective since it strengthens the position of a company in a particular market segment. Moreover,
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This marketing strategy is considered effective since it strengthens the position of a company in a particular market segment. Moreover,
this strategy enables the company to acquire firm knowledge of the needs of its customers in a particular segment. It is,
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this strategy enables the company to acquire firm knowledge of the needs of its customers in a particular segment. It is,
however, very risky to rely on this strategy since the company depends on very few segments and if the segments do not work as planned the entire business may suffer. This targeting strategy has the following features:
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however, very risky to rely on this strategy since the company depends on very few segments and if the segments do not work as planned the entire business may suffer. This targeting strategy has the following features:
1. It targets a very particular and narrow group of consumers using a focused marketing strategy that suits or match the necessity of that segment.
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1. It targets a very particular and narrow group of consumers using a focused marketing strategy that suits or match the necessity of that segment.
With regards to Reebok Company,
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With regards to Reebok Company,
it has narrowed to the customers living in the urban areas in the United States and further innovatively come up with a marketing strategy that will suit the needs of the urban areas segment.
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it has narrowed to the customers living in the urban areas in the United States and further innovatively come up with a marketing strategy that will suit the needs of the urban areas segment.
One such strategy is the mode of branding its product through using hip-hop celebrities so as to match the demands of the urban segment of its customer (Mcdonald, 2004).
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One such strategy is the mode of branding its product through using hip-hop celebrities so as to match the demands of the urban segment of its customer (Mcdonald, 2004).
2. Concentrated marketing enables a company to perform better than its competitor in several segments. 3.
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2. Concentrated marketing enables a company to perform better than its competitor in several segments. 3.
Undifferentiated marketing It is when the company does not consider the existence of the market segments and embrace a marketing strategy that it is intended to appeal to numerous customers and customers.
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Undifferentiated marketing It is when the company does not consider the existence of the market segments and embrace a marketing strategy that it is intended to appeal to numerous customers and customers.
This strategy works under an assumption the needs and wants of the customers are similar and, therefore,
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This strategy works under an assumption the needs and wants of the customers are similar and, therefore,
there is no need to create divide customer on the basis of their needs. This is, however,
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there is no need to create divide customer on the basis of their needs. This is, however,
a very risk presumption because there is a probability that this approach might not be even effective to anyone.
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a very risk presumption because there is a probability that this approach might not be even effective to anyone.
It this approach does not meet its intended objectives then it would a waste of resource to invest in such advertising strategy.
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It this approach does not meet its intended objectives then it would a waste of resource to invest in such advertising strategy.
Moreover, the company may encounter strong competition from its competitors who have adopted other modes of marketing strategies.
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Moreover, the company may encounter strong competition from its competitors who have adopted other modes of marketing strategies.
This targeting strategy was used by Rebook before it fully embraced the differentiated marketing strategy.
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This targeting strategy was used by Rebook before it fully embraced the differentiated marketing strategy.
In the 1989 Reebok programs were tailored in such a manner that no segments were created, instead, it was using sponsorship deals with leading sports stars,
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In the 1989 Reebok programs were tailored in such a manner that no segments were created, instead, it was using sponsorship deals with leading sports stars,
teams, and sporting events to promote its product. The rationale behind sponsorship was not to target a specific group of people in the market.
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teams, and sporting events to promote its product. The rationale behind sponsorship was not to target a specific group of people in the market. Rather, any person could access the advertising message and be influenced to purchase its products. Therefore, no segments were used at that time to reach the customers in the market.
Factor influencing customers purchase decision-making process Consumer buying decision process is characterized by stages. First, the consumer becomes aware of the need to purchase a product.
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Factor influencing customers purchase decision-making process Consumer buying decision process is characterized by stages. First, the consumer becomes aware of the need to purchase a product.
The consumers then search for appropriate information about the product.
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The consumers then search for appropriate information about the product.
The search for information can take both internal and external form.
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http://webguide.gov.au/finding-content/search-2/ 100%
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The search for information can take both internal and external form.
The internal search of information constitutes the memory of the consumer and external search is invoked in case the consumers need more information.
https://www.atomicdogpublishing.com/PDF/Lind_1426637012_ch02.pdf 73%
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http://highered.mheducation.com/sites/dl/free/0070974284/605841/sample_ch03.pdf 67%
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The internal search of information constitutes the memory of the consumer and external search is invoked in case the consumers need more information.
The next stage is the assessment of alternative; with regard to the evaluation,
http://sspp.proquest.com/archives/vol10iss2/1207-032.sandstrom.html 67%
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The next stage is the assessment of alternative; with regard to the evaluation,
a consumer will use certain threshold to evaluate the product that they need and those that they do not need and consequently,
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http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
a consumer will use certain threshold to evaluate the product that they need and those that they do not need and consequently,
make a decision to purchase the product that they need.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 83%
http://www-rohan.sdsu.edu/~renglish/370/notes/chapt05/ 67%
make a decision to purchase the product that they need.
The decision to purchase the product is then followed by the actual purchase. After purchasing the product,
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The decision to purchase the product is then followed by the actual purchase. After purchasing the product,
they will evaluate on whether or not the product satisfied their needs and establish whether they made the correct decision (Paley,2005).
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
they will evaluate on whether or not the product satisfied their needs and establish whether they made the correct decision (Paley,2005).
The elaborated buying decision process is, generally, influenced by very many factors; however,
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The elaborated buying decision process is, generally, influenced by very many factors; however,
in the circumstances of the Reebok’s product the following factors are likely to influence the purchasing decision of its customers.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
in the circumstances of the Reebok’s product the following factors are likely to influence the purchasing decision of its customers.
The first factor is cultural factors which entail both the culture and societal factors.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The first factor is cultural factors which entail both the culture and societal factors.
Culture entails a certain behavior that has attained the status of notoriety in a particular geographical location. Culture tends to vary from one place to another and an individual values,
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
Culture entails a certain behavior that has attained the status of notoriety in a particular geographical location. Culture tends to vary from one place to another and an individual values, preferences, and behavior will always be influenced by the societal environment they live in.
In the urban areas of the United States Reebok realize that a certain culture had been developed by the people living in that area.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
In the urban areas of the United States Reebok realize that a certain culture had been developed by the people living in that area.
The culture was within the fans of the hip hop stars and celebrities who had developed the habit of buying clothing and other personal things that have been encrypted with the names of their preferred celebrities.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
The culture was within the fans of the hip hop stars and celebrities who had developed the habit of buying clothing and other personal things that have been encrypted with the names of their preferred celebrities.
Therefore, that culture greatly influenced the purchase of clothes. Reebok translated the same practice in their products by branding their products with names of the celebrities.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
Therefore, that culture greatly influenced the purchase of clothes. Reebok translated the same practice in their products by branding their products with names of the celebrities.
Thus, that culture of the urban elites buying branded products with names of celebrities will also be translated to Reebok products by influencing the decisions of the contemplated consumers.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ 0%
Thus, that culture of the urban elites buying branded products with names of celebrities will also be translated to Reebok products by influencing the decisions of the contemplated consumers.
Moreover, Reeboks studied the Chines market and realize a certain culture was emerging from the teens and the young adults of age between 13 and 25. The culture entailed the males between the stipulated ages watching NBA on the frequent basis because their basketball star was participation in the NBA events. Such a culture, therefore, make it prime for Rebook to advertize its foot wears during the NBA matches and hence influence the decision of the Chinese customers purchase its products regularly.
Another factor closely related with culture is the cultural trends or the bandwagon effects. These are simply the established trends that most people tend to follow. These trends are intensified by their fame. The social forces and pressures ensure people conform to them. Once a precedence of following a trend is established then more people will always want to follow it. The best example that show the bandwagon effect influence the customer to purchase Reebok products is when the company produced a soft leather, flat shoe and branded it with the original name of Jay-Z, S. Carter. The branding instituted a bandwagon effect that saw the demand for the shoes to rise very fast and consequently, its price.
The popularity of the shoe will always make the consumer associated with the shoes regardless of the price of the shoe. Even if the consumers will not be influenced by the mere popularity of the shoe, then the social pressure will force the consumer and influence their purchasing decisions.
Reference groups and memberships groups also have an effect on the purchasing decisions of Reebok’s customers. Membership groups are merely groups in a society in which a person is identified with. The membership groups are defined by several factors such as the age of a person, the place of abode of a person, the leisure activities a person engages in and the place of work of an individual. The potential of the reference group in the formulation of an attitude or behavior of a person can never be underestimated.
Opinion leaders or celebrities also constitute reference groups due to the propensity to influence other people as a result of their well-endowed knowledge, skills and other unique features. With regard to marketing the reference group or reference personality has the great potential of influencing the buyers to purchase a product because of the desire to be closely associated with the reference personality. It is, however, worth noting that the effect of reference group tends to fluctuate depending on the brands and products.
In the circumstances of Rebook, the company has used several the names of reference personalities in both United States and China to create a brand for their product and ultimately influence the customers to purchase its products.
Some of the reference personalities are from different industries ranging from sports/games to the music industry. In the music industry, the company has used Jay-z, G-unit, Eve, and others. In the sports industry, the company has utilized the names Venus Williams, Lewis Hamilton, Yao from China to create a brand in its product and influence the decision of the customer in purchasing the product. The effect of reference personality in influencing the purchase of its product has already been felt by the company. When the company introduced soft leather shoe to the market and named it after Jay-z original name, the company made huge sales. It also went to the extent of shipping 500,000 pairs of shoes around the US.

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