How companies choose target-marketing strategy and identify attractive market segments
It is important to know that marketing is the best possible way for the companies to identify and also satisfy the needs of their customers while also achieving the goals of the organization such as surviving in the market and generating more profits (Dolnicar, Grun & Leisch, 2018). The companies that wish to develop proper marketing strategies must follow specific stages. For instance, such organizations can begin to analyze the internal and external circumstances within the organization. It is also essential to study the legal, political, economic and social-cultural environments because they play a crucial role in the success or failure of marketing in an organization.
The market segment refers to the entire part of the market (Dolnicar, Grun & Leisch, 2018). It is also known to be homogeneous because in most cases people in a segment possess similar characteristics of the attitudes of different variables. It is the similarities that make the people to successfully respond to the marketing strategy because they have similar feelings (Dolnicar, Grun & Leisch, 2018). It is, therefore, upon the companies to conduct comprehensive research as well as market analysis to identify appealing market segments (Dolnicar, Grun & Leisch, 2018). The companies to analyze market segments through the examination of market share and trends, consumer perception as well as the customer buying patterns to enable them to understand market concerns like people expected to purchase products. There are many available ways that companies can use to gather. For instance, companies can use technologies and conduct surveys
It is true that companies can achieve their marketing strategies by grouping customers into segments based on the customer’s differences in behavior and needs (Dolnicar, Grun & Leisch, 2018). It is the best possible way to fasten the process of designing a market strategy that suits the needs of every customer groups. It is a vital marketing strategy because it helps to separate the consumers based on their needs (Dolnicar, Grun & Leisch, 2018). For instance, it is important to realize that not all consumers will pay a specific price for a particular good or service. For example, in the watch market, there is a massive difference between a customer who willfully buys Casio watch as well as the customer that buy a Rolex watch. The customer who buys a Rolex watch is seeking a high social status in the society, and the customer who buys Casio is only interested in having a watch. The difference between the two customers above brings the essence of market segmentation because it breaks down the market in smaller units or segmentation
The company can also use the aspect of a mass marketing approach to assigning the whole market same marketing mix (Dolnicar, Grun & Leisch, 2018). The reason for using this approach is because different customers have different characteristics and behavior. The differentiated marketing approach enables companies to target numerous segments of the consumers by formulating a separate marketing mix for each consumer (Dolnicar, Grun & Leisch, 2018). It is important to realize that this marketing strategy works better for consumers since it serves more customers by way of addressing their specific needs. It is the best way to create a pool of loyal customers that are significantly used to sustain the growth of the company.
The pricing strategy is also another type of marketing technique used by companies (Dolnicar, Grun & Leisch, 2018). It determines the possibility of a product becoming accessible to the consumers as well as whether the product will generate profits. The first thing that companies do in this case is to determine if the consumers need low priced goods or high-quality goods and services (Dolnicar, Grun & Leisch, 2018). The aspect of pricing is useful because it gives consumers a serious reflection of the product position and brand in the market segment (Dolnicar, Grun & Leisch, 2018). For instance, the Casio watch company began selling cheap Casio watches to attract more people to their brand. The pricing strategy should be used carefully because it makes the company products to be too available hence driving the perception that products are cheap because they are low quality.
How firms manage all of their products and services and the steps in the best development process for new products
The companies use numerous strategies to develop and manage their product and services (Infoentrepreneurs.org. 2019). For example, the Casio Company uses the kind of innovative procedures such as generation of new ideas, screening of the concept, marketing analysis as well as marketing development.
Generation of ideas
It enables the organization to come up with new innovative ideas about the new product (Infoentrepreneurs.org. 2019). For instance, it is vital to consult consumers about the organization’s intention to come up with a new product since the consumers get to share their opinions about what the new product needs to address. Companies such as Casio often spy on customers to know the type of watches they need. They also conduct massive research and surveys to see the kind of products required for the market.
Screening of ideas
It is the most crucial aspect of product development (Infoentrepreneurs.org. 2019). Casio Watch Company uses the screening of product idea to eliminate unsound practices in the company (Infoentrepreneurs.org. 2019). The screening of views is crucial because it allows the company to know if the product will potentially satisfy the needs of the consumers in the market. It also lets the company see if they have the right technology to predict the needs of the consumers in the production of a new product.
Analysis of business
The company conducts more evaluation to come up with additional information and data on the ideas that were not previously covered during the screening stage (Infoentrepreneurs.org. 2019). However, Casio Watch Company focuses on the ability to make more profits. The strength of the company to gauge itself based on the profit margin capacity provides valuable information on the issues of price and competition with other products in the market. It is the right method of estimating the size of the market as well as sales
The marketing development stage is done when the product has successfully gone through business analysis as well as a screening of data (Infoentrepreneurs.org. 2019). It is the exact stage where the company develops the product using the correct specification. The company then rolls out research that is supposed to make the product more competitive in the market (Infoentrepreneurs.org. 2019). It is also a vital step because it separates what the expert can do as well as what can be done by the factory. There is a division of labor at this stage because the marketing departments test the new product in markets while experts continue working to improve the product.