Martin Writer Principles of Marketing

Business Environment and Marketing Research

Jeffrey L. Ellis

Argosy University

Assignment 2: Business Environment and Marketing Research
For the company you chose for your background report in Module 1, select at least one of the products they make and complete the following in an MS PowerPoint presentation of approximately 10 slides:
Identify at least three variables that you believe are important in segmenting the market, and discuss why you believe these variables to be the ones in differentiating customers for the product.
Select and describe at least two possible target market segments that you would expect to see emerge based on a combination of these variables. Describe their respective profiles (based on demographic and psychographic variables).
Identify at least one difference that could influence the purchasing behavior between the two segments.
For the firm that markets your product, suggest which segment would be best for targeting. You should consider all the five factors used to select the target market.
Use the Notes section of PowerPoint to add clarity to your slides.
Use at least three references in your presentation and include at least one graph or chart.
Include a title and a reference slide.
1

The Home Depot provides homeowners with innovative merchandise and services.

The Home Depot provides homeowners with innovative merchandise and services. The company states their goal as being able to “help consumers create the home of their dreams whether they want to do it themselves or have it done for them.” They offer specialized support and services for professional contractors and people who sell goods or services “to ensure they have the right tools and supplies for the job site” (Home Depot, n. d., Stores…).
2

Its store catalog consists of up to 40,000 different kinds of building materials, home improvement supplies, appliances and lawn and garden products for all of your project needs.

(Home Depot, n. d.b, Stores,…).
3

Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. A company may decide to operate in one or a few geographical areas, or to operate in all areas but pay attention to geographical differences in needs and wants.
Armstrong, & Kotler, 2009

Their selections may vary from store to store because The Home Depot stores are always stocked with merchandise that is localized to match homeowners and contractor’s specific market needs (Home Depot, n. d.b, Stores,…).
4

divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Demographic segmentation
Armstrong, & Kotler, 2009

Every Saturday and Sunday all Home Depot stores has free how-to clinics, including kid’s workshops offering free how-to clinics for parent and children interaction at all Home Depot stores (Home Depot, n. d.b, Stores,…).
5

divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic makeups.
Psychographic segmentation
Armstrong, & Kotler, 2009

The Home depot targets the homeowner obviously and the professional contractor.
6

Homeowners and professional customers are targeted

Home Depot (n. d.b) declares:
Through dedicated contractor services desks in more than 1,900 stores, professional
customers have access to loyalty programs, a pro bid room to handle large customer
orders with volume discounts, direct ship programs, credit programs and other specialty sales initiatives (Stores,…).
7

Home services are provided by prequalified independent professional contractors for home renovation for those homeowners that do not want to do that themselves.

Home services are provided by prequalified independent professional contractors for home renovation for those homeowners that do not want to do that themselves. They supply national installation services “through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding. A free in-home consultation or instruction on other services is available. The Home depot has services to make their professional customers, including repair and remodel contractors, more successful in their fields of endeavor.
8

Armstrong, G. & Kotler, P. (2009). Marketing: An introduction (9th ed.). Retrieved from http://digitalbookshelf.argosy.edu/#/books/9780558021122/content/element/9345
Home Depot (n. d.b). Stores, products, and services. In corporate.homedepot.com. Retrieved April 30, 2013 from
https://corporate.homedepot.com/OurCompany/StoreProdServices/Pages/default.aspx
Home Depot (n. d.c). Our company. Retrieved April 30, 2013 from
https://corporate.homedepot.com/OurCompany/Pages/default.aspx
References

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