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?
According to Lamb, Hair, and McDaniel (2012), customers' purchase behavior often relates to their interests and lifestyles. Jen Mullin uses a combination of psychographic and demographic segmentation to describe the customers of Numi Organic Tea. In demographic perspective, Numi's typical consumer is a female with college-level education. According to Lamb, Hair, and McDaniel (2012), psychographic segmentation entails the categorization of the market depending on the lifestyles, interests, attitudes, values and personality traits of the target customers. The psychographic segmentation according to Jen Mullin describes the typical customer as the lover of organic and green tea. The client's interest and values make her shun away from the inorganic tea and divert all her attention on green and organic tea evident from her frequency of purchase which is 2-3 boxes in every month. Numi Organic Tea was able to identify the two types of marketing segments with the help of quantitative marketing information. The two common ways of obtaining quantitative data for marketing analysis include the use of questionnaires and surveys. Through conducting quantitative research, the marketing team gets a significant group of customers and probable clients to sample hence figuring out the interests of the customers. The usefulness of the quantitative research is that it leads to the identification of appropriate segmentation hence allowing Numi marketing team to establish and market Numi Organic Tea products. According to McDonald and Dunbar (2013), market development becomes successful when the marketing team matches the wants and needs of every segment with the products.
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?
The principle strategy for marketing Numi Organic Tea products has the basis of searching the eco-friendly women who are the primary customers. Therefore, the plan entails the distribution out sample products to the viable customers in the form of large-scale donations. The donations go to charitable causes with the aim of targeting the demographic segment suitable for the organic and green products. As a result of conducting a successful market segmentation, Numi Organic Tea identified the principle niche market hence the ability of the organization to present the products to the target consumer (McDonald & Dunbar, 2013).
3) Jen Mullin, the vice president of Marketing for Numi Organic Tea, describes their typical customer as a female, college-educated tea lover, possibly an eco-mom. What type of market segmentation has she used to identify this customer group?
a. Geographic segmentation
b. Demographic segmentation
c. Ethnic segmentation
d. Psychographic segmentation
Psychographic segmentation because according to Numi Organic Tea' vice president, Jen Mullin, the target customer, is female with college-level education and have the personalities, motives, and lifestyles that agree with the organic and green 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?
a. Geographic segmentation
b. Demographic segmentation
c. Benefit segmentation
d. Usage-rate segmentation
Benefit segmentation. According to Lamb, Hair, and McDaniel (2012), benefit segmentation entails the act of assembling consumers and categorizing them into their respective market segments which depend on the benefits that they derive from the products.
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.
a. Family life cycle
b. 80/20 principle
c. Undifferentiated targeting strategy
d. Concentrated targeting strategy
Family life cycle. It is because the organization should determine that way the different stages of starting families influence how consumers purchase its products.
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 _________________________.
The high-income level is the demographic variable that Lamb, Hair, and McDaniel (2012) links with customers who shop at luxurious and high-end joints such as spas, fine restaurants and stores like Costco.
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.
a. Perceptual mapping
b. One-to-one marketing
c. Product differentiation
d. Market segmentation
Product differentiation is a tactic for positioning products are is common among organizations who aspire to make a distinctive feature in their products to differentiate those of close competitors (Lamb, Hair, & McDaniel, 2012).
8) Which of the following is the least likely targeting strategy that Numi Tea would select to market their products?
a. Undifferentiated targeting
b. Concentrated targeting
c. Multisegment targeting
d. Niche targeting
Undifferentiated Targeting entails the act of observing the market as single aspect instead of viewing it in the perspective of different markets. Jen Mullin defines the market from the viewpoint of eco-friendly female only.
9) When Jen Mullin explains that her company seeks to include their product in gift bags and other promotional giveaways by companies and other organizations, she is recognizing the need to change customers perceptions through sampling.
It is false because the Numi's act of giving out samples is a way of brand promotion and marketing through placing the products in consumer's hand.
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.
It is true because there is a possibility of Numi Organic Tea to utilize perceptual mapping in providing similar brand, the organization offers it different stages. It is also possible to reduce the prices and sell high-quality products in the premium stores.
BIBLIOGRAPHY Lamb, C. W., Hair, J., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western: Cengage.
McDonald, M., & Dunbar, I. (2013). Market segmentation: how to do it, how to profit from it. Chichester: John Wiley & Sons.
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