Target marketing strategy Essay Sample
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Target marketing strategy Essay Sample
What is market fragmentation, and what are its consequences for marketers?Market fragmentation refers to the notion that a market comprises of diverse and different segments. These segments have their own particular requirements, necessities, backgrounds, and a different response to marketing messages.
Different mobile phone applications, channels, magazines based on customer needs are some examples of market fragmentation. The emergence of such segments increases competition and prompts expanded rivalry within the organizations. Moreover, market fragmentation decreases brand loyalty among the customers and also demands the new marketing techniques by the marketers as it reduces the effectiveness of previous mass advertising techniques. Market fragments, if targeted properly, can lead to the progress and prosperity of even small businesses.
What is a target marketing strategy? Target marketing strategy is a process of identifying and dividing the aggregate market into various fragments on the premise of client qualities and preferences, choosing at least one section, and creating items to address the issues of that particular section.
It aims at reaching the intended customers and providing them high-quality products or customer service. By understanding and identifying a target market, the business owners can easily direct and develop their marketing techniques based on the information regarding the consumers’ needs and interests. This, in turn, would lead the consumers to purchase the specific product and would increase the profits of the company.
What is market segmentation, and why is it an important strategy in today’s marketplace? Market segmentation refers to dividing a larger market into smaller segments that hold common characteristics. It is the classification of customers in terms of behavioral, demographic, psychographic, and geographical differences. It is a very important strategy in today’s marketplace as it enables the business owners to focus on their potential customers.
The companies thus create and provide the right product to a specific group of potential customers and also stay away from wastage. Moreover, most organizations are not huge enough to supply the requirements of a whole market, so market segmentation helps them to break down the aggregate request into sections and pick those that the organization is best prepared to deal with.
List and explain the major demographic characteristics frequently used in segmenting consumer markets.
The major demographic characteristics frequently used in segmenting consumer markets include gender, age, occupation, family structure, income, ethnicity, and geographical location. Age of the consumers is an important characteristic because the needs and choice of the consumers vary according to their age group. Same is the case with the male and female customers.
Family structure is also very important for segmenting consumer markets because the needs, stage of family life, and expenses of a family change with time. Income of the customers is very imperative in segmenting consumers because it helps the businesses to create a product keeping the buying power of consumers in mind. Furthermore, culture and geographical location also play an important role because the cultural practices and geographical preferences vary a lot.
Psychographic segmentation infers partitioning the market in the light of buyer identity qualities, values, states of mind, interests, and ways of life. This process scans the market to recognize what consumers need in the market, distinguish those segments that have shared customer needs and total these segments into a bigger group.
Psychographic segmentation is valuable to comprehend contrasts among buyers who might be factually like each other yet whose necessities and needs a shift. It also helps the business owners and companies to design a product and advertise in an effective way. It is very effective in marketing the same product to groups that otherwise appear to be very heterogeneous.
Behavioral segmentation is a process that divides the consumers into fragments on the premise of how they act toward, feel about, or utilize a good or a product. It separates the aggregate market into little homogeneous sections in light of client purchasing conduct. It is done remembering the requirements and needs of a client in light of the conduct that they show.
Behavioral division is performed with the goal that individuals demonstrating comparable purchasing conduct can be clubbed together in a solitary gathering and they would then be able to be focused on. It causes organizations to advance and market their item in an exceptionally streamlined way as they can catch the client in light of his needs.
What are some of the ways marketers segment B2B markets?
The marketers segment B2B markets by considering the organizational demographics, the production technology they use and whether the customer is a user or a non-user of the product. B2B marketers segment the markets using their firmographics. It is a process that groups markets in view of components like business measure, organization area, industry, and even different innovations utilized by the focused on organizations. This segmentation is also done by keeping purchasing policies and the number of facilities in mind. Moreover, client tiering is another technique for segmenting B2B markets and is done in the light of how well the client coordinates the objectives of one’s business.
List the criteria marketers use to determine whether a segment may be a good candidate for targeting.
The criteria that marketers use to determine whether a segment may be a good candidate for targeting include:
Members of the portion must be like each other in their item needs and interests and should not be the same as buyers in different fragments.
Measurability of the section as in the size and acquiring power of the segment is very important. Another important factor is whether the segment would be profitable in the Present and in the future. Marketing communication to the fragment is also one of the important criteria. Lastly, the expertise and assets required to fulfill the fragment’s need should also be present.
Explain the differences between undifferentiated, differentiated, concentrated, and customized marketing strategies. What is mass customization? Undifferentiated marketing is an advertising technique where creation, research, and advancement costs advantage from economies of scale, appealing to a broad range of consumers.
Differentiated marketing, on the other hand, is a technique that creates one or more items for each of the several client groups with different item needs. Concentrated advertising is an approach that focuses on particular items and the messages about them to a single segment. Customized marketing creates specific products and the messages about them to the individual customers. Mass customization is a marketing strategy that adjusts an essential product or service to address the issues of a person.
Product positioning is a crucial marketing strategy that employs various techniques as to how a particular market segment can be influenced to perceive a product in comparison to the other product in competition. The brand advertisers try to persuade the consumers that their product is more beneficial for them. For an effective product positioning, the advertisers need to obviously comprehend the target purchaser’s need to assess contending items and after that persuade the customers that their item, service or association will address the consumers’ needs and issues.
Brand personality basically is a particular image of an object or a product to which the consumers can relate. Brand personality can be simply described as brand personification. Marketers create a brand personality by assigning human traits or characteristics to a particular brand. Mostly the customers have no issue explaining what an item would be like if t becomes animated. Perceptual maps often refer to where the items or brands are \”situated\” in purchaser\’s brains. The maps give some direction as to where the consumers may position the specific item. The perceptual maps are very helpful in competitive strategies often used by the marketers.
What is the decision facing Subaru?
Subaru is currently facing a decision in which they must grow and find a new target market in other regions of the country. The company wanted to decide that Subaru which generally targets customers in areas like the North American Rocky Mountains, and New England zones, should claim to more drivers who live in the other area of the United States, yet without losing ground with its core clients.
What factors are important in understanding this decision situation?
First of all, the most essential factor in understanding this choice would be through an appropriate marketing which would separate the market into various sections in view of the consumer wants and needs. It would enable them to segment the customers according to their demographics, behavior and then deciding that which segment they are going to focus on.
The advancement of fragment profiles would truly enable the organization to distinguish where their different clients other than North American district may be found, and how best to target them. It would help them positioning their product in an effective way to the new client they are attempting to target. Subaru could keep up its comprehensive way to deal with advertising where it demonstrates the client the amount it thinks about them, and they could also practice environmental awareness.
What are the alternatives?
The company, on the other hand, can also use alternatives to grow and expand. It can be done by providing the best services to the existing customers. The company can also concentrate on holding its present clients who esteem the organization\’s outside, eco-friendly mark identity with trust that through communication they can push the Subaru way of life on to their companions, and family. That would also help the company in increasing their sales and reaching new market segments.
What decision do you recommend?
In my opinion, the company must continue to provide satisfaction to the existing consumers as it would not only ensure their brand loyalty but would also be helpful in marketing. Moreover, other incentives should also be provided to the customers like free oil changes and car washes who has owned a Subaru for a certain period of time. This would help in building a trust relationship with the customers. As far as increased market share is concerned, I would recommend that the company must focus on targeting the other segments of the market and also identify their potential customer segments.
What are some ways to implement your recommendation?
To execute my proposal, Subaru would need to go well beyond for its clients who have indicated mark dependability. This could be anything from free oil changes at the dealerships, to letters via the post office saying thanks to them for being a faithful client. Anything that demonstrates the current client the amount Subaru values their business. This thus would be the ideal advertising system they ought to run with to draw in new clients.
By indicating how well Subaru deals with its present clients, Subaru is speaking to new clients. They shouldn\’t be difficult to interest on the grounds that through division, and focusing on Subaru will have the capacity to understand that their clients need a decent quality, outside and cost amicable vehicle paying little mind to where they are found.