Short Essay: Write a 250 (or more) word discussion using research from your textbook to help substantiate your understanding of segmentation, target marketing, and positioning.

1. In the first part of the video, Jen Mullin, the Vice President of Marketing for Numi Organic Tea, clearly describes their typical customer. Using the information on segmentation you learned from reading Chapter 8 in Lamb, et al. (2014), discuss who the customer is and how the Numi marketing team figured that out?

Jennifer Mullin is the Vice President of Marketing at Numi Organic Tea. However, she has divided the market into meaningful and identifiable groups. From her description, she identified the ideal customers as highly educated college students or eco-moms. These are the kind of customers; the company found to be reliable since they buy tea almost two or three times a month. Precisely, she used demographic segmentation to determine their esteemed customers. Moreover, the Vice President segmented the market by gender, age, occupation and ethnic background. After identifying the customers, the marketing team can now use the information at hand to further their business and reach out to more potential customers. The marketing team that runs a large-scale donation program carried out a demo and also offered free samples to business around and customers.

Similarly, the company stretched to restaurants and luxurious hotel to promote their products to increase their consumer base. They ensured they get information from the places their potential customers frequently visited such as Costco. The company’s commitment to reach customers on a tight schedule or budget demonstrated their ability to cover their bases. Therefore, the company increased their customer base both individually and with the help of other firms.

2. What is Numi’s principle marketing plan? In what way does Numi’s marketing team use what they know about their target demographic to implement their marketing plan?

Numi’s principal marketing plan entailed understanding the four Ps that include product, price, place and promotion. The marketing plan helped the company to have a clear understanding of what appealed their customers. Numi and the marketing team used the concept of promotion and offered free samples to its customers, and particularly they visited luxurious hotels and restaurants, coffee shops and universities to target the young population. Besides, the company realized that they will increase their customer base by also offering their products at big chain stores. These are places their customers frequently visit. The company runs a large-scale donation program and also participate in breast cancer walk. In such occasions, they visit women and educate them about their organic tea.

Defend your answer challenge: Highlight your multiple choice answer in yellow. Write a 100 (or more) word discussion in defense of your answer to the multiple choices and true/false questions using research from your textbook to help substantiate your understanding of segmentation, target marketing, and positioning. Apply APA style referencing in your writing.

3) Jen Mullin, the Vice President of Marketing for Numi Organic Tea, describe their typical customers as a female, college-educated tea lover, possibly an “eco-mom”. What type of market segmentation has she used to identify this customer group?

1. a) The topographical segmentation
2. b) Demographic segmentation
3. c) Ethnic segmentation
4. d) Psychographic segmentation

The term demographic division in business sector encompasses dividing the market to suit the strategies of the company. The market is divided according to gender, social class, age, ethnicity and race (Lamb, Hair, & McDaniel, 2012). Similarly, the partitioning of the business sector into numerous groups will help the marketing team to carry put their operations successfully. The division system that most business use is significant to then since they can understand their market and reach out to the potential customers. The Vice Presidents uses the demographic division as a tool to search college students and women in the social areas and offer them their products.

4) Another way Numi Organic Tea identifies potential customers is through what they want from the product; they are looking for organic, fair-trade, premium quality tea, according to the video. What type of market segmentation is used to identify customers in this way?

1. a) The topographical segmentation
2. b) Demographic segmentation
3. c) Benefit segmentation
4. d) Usage-rate segmentation

Customers get satisfied if the products they are being offered have some added advantage. They will be happier for the additional benefit that the product will bring to them. Therefore, they will devote themselves and purchase the product. Firms will try their best and ensure that their esteemed customers’ interest are met. Besides, Numi Organic Tea uses this specific method to accomplish unfulfilled interest of the customers. Since customers have a varied perception about the products, Numi Organic Tea will offer them a variety of the products with different benefits. Lastly, division in a business setting explains about the preferences, and this allows the company understand its customers well.

5) Because Numi Organic Tea has identified more than one target market, for example, “eco-moms,” college students, and family travelers, they should be particularly aware of the ____________________, which helps explain how consumption patterns differ at different stages determined by a combination of age, marital status, and the presence or absence of children.

1. a) Family life cycle
2. b) 80/20 principle
3. c) Undifferentiated targeting strategy
4. d) Concentrated targeting strategy

In a family life cycle, individuals pass through challenges that allow them to build and gain experience. This cycle portrays how the buyers develop through the stages from single to solitary survivors. Similarly, the life cycle of a family depicts the various experiences families go through and how they advance the stages. Precisely, this is an approach that helps to manage divisions in a business since customers have the notion of purchasing the product of their choice in a distinct time of their life. The client will use his/her experience to plan for the future and make the necessary decision.

6) The demographic variable that Numi Tea marketers were examining when they recognized that people who had discovered their product at a high-end spa or fine restaurant often shopped for groceries at Costco was _________________________.

1. a) Age
2. b) Income
3. c) Race
4. d) Gender

The income of an individual can provide a significant information on the type of the products he/she can buy and at which retail store. Besides, low-income people spend less since they cannot afford to spend beyond their income level. Similarly, the income of an individual determines the quality of the product he/she will purchase. Low-income people will always purchase what can sustain them while the high-income individuals will go for something with high-quality. What the marketing team at Numi OrganicTea did was something good that covered all levels of customers with different preferences. Customers wanted to reduce the cost of packaging by buying the products in bulk.

7) Numi Tea uses premium ingredients to create a premium tea at an affordable price, according to Jen Mullin. This is a form of ______________________ that the company uses to distinguish their products from those of competitors.

1. a) Perceptual mapping
2. b) One-to-one advertising
3. c) Product differentiation
4. d) Market segmentation

Firms love to operate at low cost, and they will do everything possible to offer quality products to their customers. The quality of their products is what separate the organization from their rivals. Numi Organic Tea has the necessary resources to fix quality into their tea and ensure that their customers are satisfied. Moreover, it would be to their significant if they offered the products at low cost and differentiate them in the interest of the customers. Also, the firm can get an advantage separation in a situation when they acquire premium separation that is more than the expenditure on giving separation. Lastly, the division in a business setting is more than just offering customers the different quality of products but understanding and improving the relationship between the customers and the organization.

8) Which of the following is the least likely targeting strategy that Numi Tea would select to market their products?

1. A) Undifferentiated targeting
2. b) The concentrated targeting
3. c) Multisegment targeting
4. d) Niche Targeting

Concentrated targeting entails analyzing the needs and wants of the customers of only one segment. The company will then focus and invest its resources in that segment. Numi Organic Tea is a big company that does not need to employ concentrated direction. This strategy is mainly implemented by small companies or businesses that have limited resources (Mohr, Sengupta, & Slater, 2009). Moreover, the strategy does not require the use of mass advertising distribution and production that is being done by Numic Organic Tea. I will be impossible for Numic to operate that way because it has all the resources and capital to operate in a more competitive environment.

9) When Jen Mullin explains that her company’s tea is sought after as a product to include in gift bags and other promotional giveaways by companies and other organizations, she is recognizing the companies who ask Numi to provide tea samples as optimizers.

1. a) True
2. b) False

The organization requested to give sample and gifts from Numi organic tea, and it helped the company to raise and enhance their customer base. It is important for the company to reach out to the customers and gain their confidence (Lamb, Hair, & McDaniel, 2012). Providing free samples and other promotional giveaways was one of the steps the organization took to achieve success. Customers are more eager to learn about the organic tea and by demonstrating to them they can understand the aftereffects. Similarly, to give samples from Numi Organic tea would result in more potential customers and the organization would be moving towards the right direction. The Vice President would also use the same line to see and understand the streamlining operators.

10) To graphically map the “channel conflict” between marketing Numi Tea to premium spas, hotels, and restaurants and selling the same brand at mass market stores such as Target, the company could employ perceptual mapping.

1. A) True
2. b) False

Perceptual mapping is a technique that the company can use to display the perception of the existing customers or potential ones virtually. Also, the company can use the technique to convey their relationship with rival products and the moves made by the customers that will then help to settle on utilization choices. The technique is good at describing the interrelationship of customer items, stocks, and mechanical items (Mohr, Sengupta, & Slater, 2009). The issues measured as a result of the combination of attributes can be arranged inform of their diverse subjects, position of a product, brand or qualities. Lastly, the technique can be used in business division, development, and assessment.

References

Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage.

Mohr, J. J., Sengupta, S., & Slater, S. F. (2009). Marketing of high-technology products and innovations. Pearson Prentice Hall.

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