Posted: October 17th, 2013
Creation of Customer Market Driven Strategy
Creating a customer market driven strategy is vital for development of a marketing approach that is relevant for a market niche; for those whom the product is aimed. A market segment has several basic characteristics that give definition to an individual market. A market should be easily identifiable in terms of its characteristics and the needs of the consumers within the market segment. After identification of the favorable market segment, it should be accessible by the firm with the available resources. In addition, accessibility should also be through the available communication and distribution channels. Access to market or entry of the same is for the sole purpose of satisfying, unique needs within the market (Lecture 05, 04).
The identified unique needs are the motivation for the production of goods. Hence, an identified market should be relatively stable for the maximization of profit and production costs should be stable such that there are frequent changes, which might result in higher costs. Segmentation usually assumes four areas, geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Geographic segmentation usually identifies the segment of a market by the region, population, size of the area and climate for an appropriate marketing approach. For instance, goods purchased within our region are usually made with reference to the season which is usually extreme as they fall into either winter or summer (Lecture 05, 21). For instance, confectioneries such as ice cream are usually consumed during summer and not in winter. They are also targeted at certain individuals and with reference to younger individuals. The psychographic segmentation identifies the market by the evaluation of the social setting, activities, moral values and opinions of people within the society.
Behavioral segmentation involves the evaluation of the value of the products within the eyes of the public. As I consumer I usually have different perceptions about products such as foods and other consumables. Hence, my judgment influences my preference of one product over other similar products within the stores or markets. The perception about the product influences the marketing approach of a company. In addition, demographic market applies to a segment in terms of age, gender, of the segment for the market. Industrial markets, on the other hand, a have a definite market segmentation approach as they focus on three elements: location, company type and the behavioral characteristics of the market identified. Location is the presence of consumers within a market. This is vital as it determines the accessibility of consumers in terms of reaching them and shipments of the products and other related costs. The company type is relevant in that it determines the purchasing criteria of the firm and the production of goods. This also determines its market command within the market and the goods produced by the company (Lecture 05, 24).
Market segmentation usually occurs via positioning, differentiation, segmentation and targeting of the market niche. Positioning is referred to as the attributes associated with the product by the consumers within the market. This is vital as it enables management to gauge the value of related products versus their product for identification of a relevant marketing approach. Differentiation and positioning is an essential task as it involves the identification of advantages that would accrue competitiveness of the product and organization. This also is vital as it aids in choosing the bets competitive advantages for marketing purposes. This is aimed at the development of superior products than those of the competitors in existent within the market. Identification of possible solutions in terms of competitive advantage for the setting up of a value proposition is gained through product differentiation, service differentiation, channel differentiation, people differentiation, and image differentiation. This is vital for the development of a strong position that is unique within the market. In addition, it enables the organization to assume a position that it takes advantage of in terms of costs and suitability in access to the market.
For instance French based manufacturers Airbus-Boeing are in race for the American market as at 2012, because hey have segmented and identified it as lucrative for their business because of the increase in the numbers of individuals using this means of transport (Sanati, 24). The identification of the market and its relativity to change were among the factors which contributed to these changes. It identification and consideration for entry into the market has been done with the above considerations for segmenting a market and identification of the potential of the said market. In addition the ability of the market and its conformity to change is also another basic factor before entry into a new market (Sanati, 28).
In conclusion, the creation of the consumer market driven strategy is usually in excellent taste and is vital for any organization. This is because the development of goods and provision of services is carried out in such a manner which puts into consideration on the various issues. In addition, consumer needs and preferences are given a highlight or special consideration in terms of the moral issues and consumption patterns of the consumers within the market (Lecture 05, 34).
Lecture 05.Marketing 3000. Chapter Seven: Customer Driven Marketing Strategy (PPT)
Sanati, C. (June 29, 2012). “Airbus-Boeing battle for the American sky escalates” Fortune 500. Retrieved from: http://tech.fortune.cnn.com/2012/06/29/airbus-boeing-battle-for-the-american-sky-escalates/
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