Table of Contents
Introduction…………………………………………………………………………………1
Segmentation……………………………………………………………………………….1
Demographic segmentation…………………………………………………………………1
Behavioral segmentation…………………………………………………………………….1
Geographic segmentation……………………………………………………………………2
Psychographic segmentation…………………………………………………………………2
Benefits of segmentation…………………………………………………………………….2
Customers based on market segmentation……………………………………………………2
Targeting strategy…………………………………………………………………………….3
Positioning……………………………………………………………………………………4
Reflection: Report of A Marketing Strategy
Introduction
This is the process of dividing a broader business market containing the potential customers into groups and subgroups based on general characteristics that categorize them together.
Segmentation.
Market segmentation is important because it will enable you to understand the target audiences and genuine customers. As a business, it will help identify the ideal market for my enterprise’s products and services. This will help target marketing efficiently and effectively. It can also be helpful, primarily when advertising is aimed at a specific audience. Through segmentation, customization of the advertisement content becomes possible.
There are mainly four methods of market segmentation.
Demographic segmentation
This includes selecting the audiences with observable differences. These include gender, age, education level, marital status, income level, race, occupation, religion, and nationality. This helps to reduce the cost of obtaining information. The information will become readily available.
Behavioral segmentation
This is simply dividing the market based on the behaviors of the customers concerning the product. These behaviors include the shopping habits, tracking the action of consumers online, the need sought by a customer, the customer’s usage rate, and the consumer’s loyalty
Geographic segmentation
This is an action where the market will be split based on the locations, and hence the ads to be sent will be based on the location. It will help adjust the communication by changing the language as per the location.
Psychographic segmentation
This is similar to demographic segmentation. However, this type of segmentation deals with mon mental and emotional characteristics. This is an essential attribute of realizing the target audience’s motives. Typical psychological factors include the consumer’s interests, personality traits, beliefs, values, and attitudes.
Benefits of segmentation.
Market segmentation is essential in improving campaign performance. This is because, through the right market segmentation, it becomes easier to target the right people, and hence it becomes easier to reach them when necessary. It will also help develop the right products that suit the consumers’ preferences based on the location and ability of consumers. Through segmentation, adjusting, and redesigning the products to meet the consumers’ needs becomes necessary (“The Advantages of a Product Differentiation Strategy,” 2019). It will only be more comfortable identifying specific areas to expand if the market segmentation will be appropriate. The business’s focus will also improve significantly through the establishment of brand identity leading to specific product specialization. In addition, proper market segmentation will help to inform other essential business decisions like pricing and distribution.
Customers are based on market segmentation.
Demographic
The first group In this segment, customers include those that have a high level of income and those with low income based on their social class status. Secondly, Those that are employed and those that are not. Those who are married are not, the old and the young, the whites and the Africans. Lastly, customers can be Christians, Muslims, and any other religion.
Behavioral
In this segment, customers are classified according to their different habits. They can be classified according to their shopping habits, such as those who shop once in a month from those who shop daily. Customers can also be classified according to how they use the products; for instance, those who use the products regularly ad those that use occasionally.
Geographic
In geographical segmentation, Customers are classified according to their specific continents and religions, such as those that come from Asia, Africa, America, and all the other continents. They can also be grouped according to the languages they speak or example Arabic speaking customers and French-speaking customers.
Psychographic
Customers split through psychological segmentation include customers with different beliefs, intentions, and attitudes. For example, some products are useful because they help them feel relieved when using the other, while others believe they become intoxicated when using the product.
Targeting strategy
Differentiated
This is the best market targeting strategy because it helps the company to target the whole market segments. This is possible because the company will come up with a significant market design through market mixing. The company will realize more sales by achieving more market share. This strategy helps promote different types of brands within the company rather than just a single brand. The collective growth reduces the cost of promotion and increases the growth rate of the brands. The company will be able to meet the specific needs of consumers in all the sectors. This increases the chances of marketing success. Through differentiated marketing, particular customer needs will be met at random rather than covering all the bases. This targeting strategy also helps organizations compete within the niche sectors where the competitors lack a suitable offering. Through this strategy, the company’s total sales, mostly when operating in the niche sectors, will add total sales significantly compared to the undifferentiated target strategies. Differentiated products will appeal to the customers, which will trigger the company to build a more effective distribution channel.
Positioning strategy.
A market positioning strategy is referred to the company’s ability or business entity to influence the perception of the consumer towards a brand or product in consideration of the competitors.
I will adopt the following strategies in the company.
Product attributes and benefits
This is the strategy that will help the company to associate the product with specific characteristics that have valuable outcomes(Yesbeck, 2019)
Product pricing
This is a strategy that the company will use to adapt to the business world by adjusting the products’ prices based on how competitive pricing will be.
Product quality
The company will improve the product to fit the right standards and qualities that outsmarts the products or its competitors’ brands.
Competitors.
This is a positioning strategy where the company will make the competitors have a mentality that my product is better than theirs.
BONUS QUESTION
Competitive advantage refers to the factors that my company will consider to produce the best products as compeered to my competitors. This will help me generate superior margins and realize high sales as compared to my competitors.
I will adopt a differential competitive advantage whereby my company will offer superior services and products from my competitors’ offerings. I will employ excellent personnel, patent-protected products, advanced technology, and identifying a strong brand. This will help me outsmart my competitors.
StackPath. (2019). Retrieved from Marketingtutor.net website: https://www.marketingtutor.net/market-targeting/
The Advantages of a Product Differentiation Strategy. (2019). Retrieved from Chron.com website: https://smallbusiness.chron.com/advantages-product-differentiation-strategy-17691.html
Yesbeck, J. (2019, June 20). 4 Types of Market Segmentation With Examples. Retrieved from Alexa Blog website: https://blog.alexa.com/types-of-market-segmentation/