Explain how companies identify attractive market segments and choose a target marketing strategy Segmentation is a marketing management technique that helps companies to be in competitive advantage In[.]
Explain how companies identify attractive market segments and choose a target marketing strategy Segmentation is a marketing management technique that helps companies to be in competitive advantage In order to companies to identify market segments there are several approaches that companies took off As different consumers have different needs, wants and preferences towards products and services, companies should be able to distinguish the elements for them to cater all of their potential consumers in the market In here, companies should be able to conduct a market research so that they can have valuable information that helps a lot to identify their potential market segments Specifically, these helps to makes sure the information that the companies gathered are thorough to the slightest details The first approach that companies should look into is Geographic Approach Geographical method is related to the physical features of the consumers’ area In this approach subsets that taken into account are area of country which is the sum of all land and inland water bodies (i.e.; lakes, reservoirs or rivers), population size of the area which is the number of individuals in the population, predominant makeup of the area which is the region, culture, set of races or religion that dominantly resides in the country that contributes to others perception of the country and climate Geographically, different parts of the world have unique desires and preferences which companies have to look through into before launching a new product that fits right in that geographical area For instance, the Coca-Cola brand diversifies its product globally by infusing geographical area’s elements such as using local languages in advertisements to make potential consumers to highly understand regarding the products, sponsoring international major events such as FIFA World Cup, Olympics and NASCAR to market aggressively, and makes sure that the product are accessible in any stores whether it’s urban or rural area Now, we can see that Coca-Cola is now marketed itself for more than 155 nations altogether Secondly, companies should look into the Demographic Approach Demographic segmentation can be broken into few different factors such as age, gender, family size, income, occupation, education, religion, race and nationality This is important because companies be able to know the right people with the right criteria to market the products For instance, if a company would produce baby formula milk, they should be sensitive about the suitable age of the babies to consume the formula, which are approximately around 12 months old until the age of years old If the company is not well into details, this might jeopardize the trust of consumers towards the products’ integrity Also, the company have to make sure to market the formula milk product they need to tackle people with bigger family size that currently having babies It is not suitable for the company to market this product to the singles and people that are not having child In addition, if the company marketed the product which serves in a Muslim country, they should be considering to put in Halal Certifications that is proven from professional bodies on the packaging so this could build a chain of trust from consumers that the products are certified and safe for the Muslims to consume Next, the companies should also focus in Psychographic approach In this approach the companies can break up the potential customers by their social class, lifestyle and personality characteristics As we know, the basic social class are divided into main groups which are Upper-Class, Middle-Class, Working-Class and Lower-Class Each of these classes represents different working backgrounds, income groups and perception of social status Companies that produces luxurious goods should market the products for people that are in Working-Class up to the Upper-Class group This is because companies should specifically choose its suitable customers in order to sustain the demand of the product Lifestyle can also a contributing factor for creating demands For example, Starbucks Corporation is now a commercialized coffee chain that embeds itself to the lifestyle of its customers They advertised themselves to have the best coffee for its customers to start their day with and launches new menus which follows the mainstrea trends such as the Unicorn Frappe, Dark Caramel Boba Tea and Pokeball Frappucino This strategy resulted Starbucks Corporation coffeehouses are perceived to be well known for higher social status group to go for business or social networking among the millennials which associated with the term, “hipsters” Lastly, the Behavioural Approach is also crucial for companies to identify the market segment for its product This approach can be break into occasions, benefits, user status, usage rate, loyalty status, readiness stage, and attitude towards product This approach can be used for seasonal products that produces only around selected holidays such as Christmas, Eid or Chinese Lunar New Year because companies could market their product and able to tap a large customers’ desire in different occasion For example, McDonalds Malaysia produces the Prosperity Burger only in the occasion of Chinese Lunar New Year and customers would not want to miss any promotion of the product whenever Chinese Lunar New Year approaches With this approach also, companies be able to know what benefits that the customers could found by purchasing their products and companies could have segmented their products into different functionalities For instance, Omega, produces Swiss well known watches, offers substantial number of watches collection for underwater diving watches, sport watches, and fancy fashion watches With different functionalities, Omega could reach a large number of customers with different preferences Information regarding heavy users of certain products that might be influenced by habits, social norm or basic needs could be seen in this approach by looking at customers’ rate of usage For example, the purchasing number of rice, cigarettes or mobile reload After companies have gone through each of the approaches that had been mentioned, companies can break down a market to a well-defined smaller groupings of consumers with same needs and desires This enable companies to meet the needs and desires by producing the right products and services With the right information and details companies can identify specific appeal to attracts directly to the target market THÔNG TIN HỎI ĐÁP: -Bạn cịn nhiều thắc mắc muốn tìm kiếm thêm nhiều tài liệu mẫu Assignment mẻ khác Trung tâm Best4Team , Liên hệ dịch vụ viết thuê assignment Hoặc Gọi SĐT Zalo: 091.552.1220 email: best4team.com@gmail.com để hỗ trợ nhé!