Part One
Question 1
There are different environmental factors that influence beer consumer behavior in the market.
One of these factors is social class, which is evident across all market segments. Social class is
usually targeted as the buying behavior dictating the consumer`s potential in purchasing a given
product. Social class defines the income yields for a given individual. Income levels dictate the
ability of an individual to purchase a given product; beer in this case. Equally, the type of culture
a particular group of consumers belong influence their buying behavior. In the beer market,
culture influences purchase behavior through proponents such as religion, language, social
customs, and work patterns of a particular society. Some religions are against the consumption of
alcohol related drinks. This will hinder the market purchase of beer in a given target market.
Equally, social norms that have been created within a given social group are likely to influence
consumer behavior such as purchase patterns of beer in the market.
Question 2
Consumer factors are physiological processes that may be related to emotions of the consumer of
physical factors within his environment that influence the ability of purchasing products or
services. There are different consumer factors that influence the purchase of beer in the market.
Social factors influence consumer behavior since the consumer may be attached to aspects such
as reference groups. This usually takes into account opinion leader, but varies across products
and brands (DeSarbo, Blanchard, & Atalay, 2017). Families and family members also influence
CONSUMER BEHAVIOR AND MARKET SEGMENTATION, TARGETING, AND
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the behavior of a consumer. Secondly, personal factors such as age and cycle stage have
considerable influence on consumer behavior. With age and life cycle, consumer purchase of
beer changes. For instance, you would not expect a teenage of 13 years to purchase beer. Finally,
the purchase of beer in the market depends on the consumer`s psychological factors. Some of
these factors include motivation, perception, learning experience, and attitude and beliefs. For
instance, a consumer may divert from purchase of beer following learning and experiences he
received in a seminar.
Question 3
There are different levels of a customer involvement in beer purchase and marketing. However,
the most influential level that requires customer involvement in the beer market is the search for
product information level. At this level, the customer may require vast information regarding
different of beers that we sell. For instance, he may want to know about pricing, distribution, and
quality of the beers. With this in mind, it would be of critical significance that the customer is
provided with adequate information regarding different aspects of our beer products. This will
allow him to make choices in product selection with emphasis being laid on aspects such as
purchase power and preference (Paluchová, 2017).. The type of buying behavior that is most
consistent with the product information level is conformity. This is because the new customer
has little experiences with the diversity of beer products offered by our company. Therefore, his
selection and purchase of the products will be based on the beer that best suits his needs. The
aspect of conformity has to come into play at this level of customer involvement.
Question 4
CONSUMER BEHAVIOR AND MARKET SEGMENTATION, TARGETING, AND
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The six steps of the purchase process include problem recognition, information search,
evaluation of alternatives, purchase decision, and post-purchase evaluation. At the first stage,
problem recognition, the customer must have a reason to believe what beer they want and where
they need it. It is essential to note that desire is different from reality. Therefore, once a customer
has factored out why he wants a given beer product, it is easy to venture into the market and
check out on the prices. In addition, given that consumers need an offer for a given brand of beer
that is vastly considered favorite, then we could consider a deal such as “buy ten get one free.”
On the other hand, customer responses achieved after selling our beer products are essential
towards improving on factors such as quality and pricing.
Part Two
Question one
The global beer market is segmented on the basis of specific factors that include category, type,
packaging, and production. One of the market segments that will have considerable influence on
our beer products is demographic segmentation. This takes into account aspects such as age,
education, family life cycle, religion, and social economic status. For instance, our beer products
will be greatly influenced by the demography of the market segment attributed to religious
practice that is against beer consumption. In other words, sales of beer in this target market will
be undermined by the prospects of religion (Andaleeb, 2016). Equally, education will lay a
significant role among consumers because knowledge on various beer products will dictate
aspects such as product selection. On the other hand, market behavioral segmentation is essential
for the beer products from our company. This entails dividing the total market into smaller and
homogenous divisions on the basis of customer buying behavior. In order to adequately achieve
CONSUMER BEHAVIOR AND MARKET SEGMENTATION, TARGETING, AND
POSITIONING 5
subdividing the entire beer market into this divisions, there are behavioral factors that should be
fostered. These include occasion based behavior, usage rate, customer loyalty, consumer status,
and purchase reasoning. With usage rate, beer products usage is evaluated, and we can tell the
type of beer that is most consumed and the least consumed. On the other hand, customer loyalty
entails our company recognizing return customers who have made our beer products part of their
needs. Therefore, rewarding them is eminent to keep a good relationship.
Question 2
I believe market demographic segmentation will be essential for our beer products market. This
is because it takes into account critical factors that our products must be inclined to in order to
penetrate the market. For instance, age is a paramount factor that every beer company has to
articulate once marketing its products in any target market. Individuals between given age groups
are affiliated to specific beer, given its composition. The elderly are always associated with sugar
free beers, with the prospect of taking their delicate health into perspective. Education dictates
the know-how of a consumer to venture into the purchase of a given beer product from our
company. A market can be subdivided on the basis of education, that is, the level of knowledge it
has towards a given product. This will allow our company to enact considerable market
strategies towards meeting the expectations of this market. The target market will for our
company is the baby boomers, and demographic segmentation will address aspects such as their
education, gender, and spending habits towards addressing their expectations in the beer products
market.
Question 3
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The company should focus all its resources on this new target market because of the various
untapped opportunities. Baby boomers present a target market that has a vast economic ability to
purchase the different brands of beers from our market. For instance, this target market has
limited information on health beer drinking. This market is driven by the notion that beer
compromises its health, and thus consumption cannot be observed. The market is not saturated,
an aspect that portrays an opportunity to venture. Majority of our competitors have focused on
the middle age and middle income earning market giving little attention to baby boomers
(Schlegelmilch, 2016). Given the economic potential by this target market, it is considerable that
we narrow down our niche to use of free time and spending habits of the target market.
Question 4
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POSITIONING 7
Above is a drawing showing beer market and the different brands. One of the important criteria
of positioning our beer products in the new market is identifying our competitors. Our
competitors include beer brands such as Miller Lite, Coors Light, Miller, Heineken, Old
Milwaukee, and Budweiser. Considering their market share, it is essential to note that a greater
percentage of this entails middle aged adults. This offers a considerable opportunity for our
company to exploit this untapped target market that has a high purchase power (Shah, Azhar, &
Bhutto, 2019). A unique selling proposition is another criteria that our company can establish in
order to adequately command a considerable market share for its beer products. This strategy
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entails factoring in prospects such as offering detailed information to our target market regarding
the different brands of beer and their composition without forgetting the health factor. The upper
section of the perceptual map defines high end beers in the target market while the lower section
depicts beer brands that are of average and low price range.
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References
Andaleeb, S. S. (2016). Market segmentation, targeting, and positioning. Strategic Marketing
Management in Asia, 179-207.
Schlegelmilch, B. B. (2016). Segmenting targeting and positioning in global markets. In Global
marketing strategy (pp. 63-82). Springer, Cham.
Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
DeSarbo, W. S., Blanchard, S. J., & Atalay, A. S. (2017). A new spatial classification
methodology for simultaneous segmentation, targeting, and positioning (STP analysis)
for marketing research. In Review of marketing research (pp. 95-123). Routledge.
Shah, S. A., Azhar, S. M., & Bhutto, N. A. (2019). Halal marketing: a marketing strategy
perspective. Journal of Islamic Marketing.
Paluchová, J. (2017). Consumer segments in an international context. In Consumer trends and
new product opportunities in the food sector (p. 480). Wageningen Academic Publishers.
Kumar, H. A. R. I. T., Mathur, N. E. H. A., & Jauhari, S. A. N. G. E. E. T. A. (2016).
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