chapter 7: Business marketing

  Burberry does most of its marketing online due to the fact that the world is in a huge technology bubble right now. For businesses to promote their products in the most effective way the internet is definitely the right place for them. One of the ways that Burberry sees if they have success with online marketing is simply looking at how many followers or comments they have on their account. For example if Burberry posts a picture on Facebook and they get 100,000 likes this is a way to determine if the people really like the product or not. Burberry does not do a lot of wholesale work so they can't really relate to purchase volume.

  When Burberry sells their products it usually isn't at a high volume due to the fact that only one person can purchase items. When a potential customer walks into the store they are not planning on buying hundred of items like wholesale buyers do. Burberry is very focused on targeting their costumers so they don't get involved with much Business to business operations. some people may think this is a weakness for the company but in reality it is a strength because they only have to watch over one thing and not multiple. Companies who both sell to customers and businesses may have to much on their plate to handle and ultimately lead to failure.

  What Burberry may have to do to that involved a business to business relationship is to buy the fabrics and materials needed to build a product. Burberrys clothing does not come from anywhere. For example a Burberry trench coat is usually made of cotton. Burberry has to ship this cotton to the factory so they can make this product.

BURBERRY COTTON NECK TIE

Chapter 8: Segmenting and Targeting Markets

 Burberry as a company realizes the great importance of market segmentation and incorporates this strategy with the company. Burberry sells their products to countries all over the world so they must differentiate their target markets and the actual products they sell.  Below shows specific segmentation categories and how Burberry uses them to benefit their company.

Geographic Segmentation- Burberry first started out as a company that only sold outerwear. The reason for this is that in london it was very cold and people needed to shelter themselves from it. Burberry originally created trench coats, its, scarves, gloves etc. As burberry expanded they realized they can't sell all of these items to countries with hotter climates. This is why they expanded to sell fragrances, accessories, bags, etc.


Demographic segmentation- Burberry has to differentiate some customers with others to see who they want to target. Burberrys products are generally high so they usually target 19-35 year old people with a high income. Burberry sells their products to men and women and to any race. An example of how they use Demographic Segmentation is how when they sell their products to the people of japan they had to create two different brands. One is called Burberry Black Label, and one is called Burberry Blue Label. These brands differ because in one of them the clothing are tight fit while the other is loose or regular fit.


Pyschographic segmentation- Burberry tries to use this on their customers a little but usually it happens naturally with a high end brand. Customers who always buy products from one specific brand usually stick with that brand and won't buy any other company. Burberry is trying to make it the next cool and hip thing to do if you are wearing their products. They don't want to be known as the high end company for grandmas ( some companies really are).


Multisegment Targeting- With some of Burberrys products they target several different people. For example the trench coat. A man can be seen wearing one and so can a women. It is a very popular staple in the English communities.


Customers of high end companies take their buying habits personally and they want to be treated in the best of ways. With these type of consumers Burberry will potentially give them a personal shopper to help the person see what they like and to give confidence to that person.