Please assist with the comparison of Rolex Watches versus Timex Watches with the following question.
Problem 1) Describe each company's target market. Do NOT include definitions of target market or segmentation.
Problem 2) How does the choice of target market influence the company's pricing and promotion (from what you know so far)?
Problem 3) Now imagine one of the companies you chose wants to introduce a new target market. For instance, suppose Hilton or Four Seasons wanted to offer a budget option for the target market sought by Motel 6. How would this strategy affect consumer perceptions?
Problem 4) Do you think these customers will be influenced by changes in the economy? Why or why not? [Here you need to be logical. That's all.]
Problem 5) Do you think these customers are influenced by social environment? For instance, do people buy these products or services in response to peer pressure? Keeping up with the Joneses (a/k/a aspirational reference groups)? Why or why not?
Problem 6) Do product brand and store name play a role in the purchase decision? I.e., Do they buy a Coach bag because it's a Coach? or would they buy the same bag at Wal-Mart if it appeared to be the same? Would they prefer to buy this bag at a Saks Fifth Ave rather than at Joe's Discount Shop? Why do you think so?
Problem 7) Do you think this target market shops for bargains? Or do they actually seem ready to pay a higher price? Why do you think so?
Remember the "why" is more important than the "what."
If possible incorporate the below resources:
Fassnacht, Michael (2009, April 13) The death of consumer segmentation: Rethinking a Traditional Marketing Tool. Advertising Age
Karamchandani, Ashish, Kubzansky, Mike and Lalwani, Nishant (2011), Is The Bottom Of The Pyramid Really For You? Harvard Business Review; Mar2011, Vol. 89 Issue 3, p107-111,
https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=58558717&site=ehost-live
Stevenson, Betsey. 2010. "So You Think You're Middle Class" New York Times Dec 22.
https://www.nytimes.com/roomfordebate/2010/12/22/what-does-middle-class-mean-today/aspirations-not-current-income
Anonymous (2006). Wal-Mart: Is There A Downside To Going Upscale? Knowledge & Wharton. June 14.
https://knowledge.wharton.upenn.edu/article.cfm?articleid=1499
Some videos:
How a fertilizer company used segmentation to grow profits substantially. https://www.youtube.com/watch?v=laTzwz08M94
Nokia:
https://www.youtube.com/watch?v=tHGBN6_dXAI
Thanks in advance for you assistances.