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Segmentation and Targeting
Pages 4 (1004 words)
(1) Describe each company's target market. Do NOT include definitions of target market or segmentation. The target market for Timex watches is much wider than for Rolex watches. The Timex is a product that targets people of all ages that have low to middle income.
A Rolex customer is a person that is accustomed to buying luxury items. A lot of Rolex watches have target market of people that are millionaires (Rolexforums, 2011). (2) How does the choice of target market influence the company's pricing and promotion (from what you know so far)? The target market of Timex of targeting people of all ages is achieved by the firm’s pricing strategy of selling watches at the low end of the market. Most Timex watches are sold at a price point between $25 and $50. Timex utilizes various promotional strategies to increase the sales of the firm. Some of the stunts include the use of customized watches for incentive awards, sales incentives, corporate promotions, business gifts, safety programs, and recognition awards (Timex, 2011). The retailer that sell Timex watches on many occasions sell the watches on special since the target customer of Timex watches are price sensitive. The demand of products that are priced low goes up by further decreasing the price of the product. The Rolex uses different promotional strategies to attract customers. The use of celebrities sponsoring the product can help increase the appeal of the product. Rolex watches are sold at jewelry stores and in luxury department stores. There is a lot of competition in the luxury watch marketplace and many online vendors offer attractive discounts off the retail price to persuade people to buy Rolex products. ...
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