Identification of the Right Marketing Strategy and Segmentation
For any organization to meet its profitability, growth and competitive advantage objectives, ways of satisfying the consumer needs must be identified. Marketing strategies must be set for specific segments and the target groups must also be identified (Sudbury & Simcock 2009). Market segmentation is the grouping of prospective buyers who have common interests and needs and thus are likely to respond in the same way to a different action in the market (Morgan, Katsikeas & Vorhies 2012). The segmentation is important as it enables an organization to target their customers differently in relation to their specific needs (Myers & Lumbers 2008). This essay will discuss in details how companies identify an attractive market segment, how the companies select marketing strategies and target specific groups.
Different companies identify the attractive market segments differently. The market may be broadly divided on the basis of geographical location, economic factors, political factors and cultural factors (Varadarajan 2010). Specifically, the consumers are divided on the basis of their age, gender, income, social class, race, lifestyle, religion or gender. To perform the segmentation, a company may use the pestle analysis method to investigate all the external and the internal factors and the environment that may affect the market segmentation (Morgan, Katsikeas & Vorhies 2012). The company may also evaluate all the possible segments on the basis of its size, the growth rate of the company. The competition that the company may face when dealing with each segment is also determined. The loyalty of the brand to each segment is also determined and the contribution of the segment to the market share is also done (Rouse 2011). The goal of the company is to make each and every segment profitable to the company.
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One of the marketing strategies is the selection of a brand name which should reinforce the value of the products or the services (Myers & Lumbers 2008), that the company offers whether it is a descriptive, inventive or the founder’s name. The name must be in line with the company’s objectives, values, mission, and vision. Other marketing strategies for a company are the target customers, the competitors and the uniqueness of the company that makes them different from the competitors (Hanssens et al. 2009). The company must ensure that they have the discipline to stick to the target customers even when other seemingly potential customers show up. The category of the business must also be well defined to shed light on what exactly the business entails. Complicating the company’s description may leave the customers and the general public confused and unsure of exactly what is offered by the business (Varadarajan 2010). These reduce the company’s effectiveness in the market.
The company must also define a unique feature and a benefit to its customers that differentiates it from other businesses. The organization must also be aware of the major competitors, evaluate their weaknesses and look for solutions to benefit the customers. If the competitors are not identified, the marketing efforts are weakened and the objectives of an organization may not be met (Hanssens et al. 2009). Another marketing strategy would be to promptly act on an opportunity in the market after some marketing research instead of doing a go slow to test the success of a new product or a service (Sudbury & Simcock 2009). The right method of advertising depending on the customers like the television or the use of magazines is also a factor to be considered. Listening to customer’s complaints and ideas may open up an avenue of improving the existing products and services and also diversify the market (Peattie & Peattie 2009). Conclusively, identification of attractive market strategies and target groups should be done with a lot of expertise as it greatly contributes to the success or the failures of an organization.
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