Market segmentation is a concept in economics and marketing. A market
segment is a sub-set of a market made up of people or organizations with
one or more characteristics that cause them to demand similar product
and/or services based on qualities of those products such as price or
function. A true market segment meets all of the following criteria: it
is distinct from other segments (different segments have different
needs), it is homogeneous within the segment (exhibits common needs); it
responds similarly to a market stimulus, and it can be reached by a
market intervention. The term is also used when consumers with identical
product and/or service needs are divided up into groups so they can be
charged different amounts.The people in a given segment are supposed to
be similar in terms of criteria by which they are segmented and
different from other segments in terms of these criteria. These can
broadly be viewed as 'positive' and 'negative' applications of the same
idea, splitting up the market into smaller groups.
Examples:
* Gender
* Price
* Interests
While there may be theoretically 'ideal' market segments, in reality
every organization engaged in a market will develop different ways of
imagining market segments, and create Product differentiation strategies
to exploit these segments. The market segmentation and corresponding
product differentiation strategy can give a firm a temporary commercial
advantage.
Thursday, March 17, 2011
Tuesday, January 18, 2011
Marketing Planning
The marketing planning process involves forging a plan for a firm's
marketing activities. A marketing plan can also pertain to a specific
product, as well as to an organization's overall marketing strategy.
Generally speaking, an organization's marketing planning process is
derived from its overall business strategy. Thus, when top management
are devising the firm's strategic direction or mission, the intended
marketing activities are incorporated into this plan. There are several
levels of marketing objectives within an organization. The senior
management of a firm would formulate a general business strategy for a
firm. However, this general business strategy would be interpreted and
implemented in different contexts throughout the firm.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given product.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models.
Marketing specializations
With the rapidly emerging force of globalization, the distinction between marketing within a firm's home country and marketing within external markets is disappearing very quickly. With this in mind, firms need to reorient their marketing strategies to meet the challenges of the global marketplace, in addition to sustaining their competitiveness within home markets.[15]
Buying behaviour
A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased. Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).
B2C buying behaviour
This mode of behaviour concerns consumers and their purchase of a given product. For example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends. If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be made. This could then develop into consumer loyalty to the firm producing the sneakers.
Relates to organizational/industrial buying behavior.[16] "B2B" stands for Business to Business. B2B marketing involves one business marketing a product or service to another business. B2C and B2B behavior are not precise terms, as similarities and differences exist, with some key differences listed below:
In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth stages are precluded. In a new buy, all stages are conducted.
Use of technologies
Marketing management can also rely on various technologies within the scope of its marketing efforts. Computer-based information systems can be employed, aiding in better processing and storage of data. Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods. Information technology can aid in enhancing an MKIS' software and hardware components, and improve a company's marketing decision-making process.
In recent years, the netbook personal computer has gained significant market share among laptops, largely due to its more user-friendly size and portability. Information technology typically progresses at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Moreover, the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. A firm can lose out to competitors should it ignore technological innovations in its industry.
Technological advancements can lessen barriers between countries and regions. Using the World Wide Web, firms can quickly dispatch information from one country to another without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex, etc.
Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A service (as opposed to a good) is typically defined as follows:
* The use of it is inseparable from its purchase (i.e., a service is used and consumed simultaneously)
* It does not possess material form, and thus cannot be touched, seen, heard, tasted, or smelled.
* The use of a service is inherently subjective, meaning that several persons experiencing a service would each experience it uniquely.
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket. Although the train is a physical object, one is not paying for the permanent ownership of the tangible components of the train.
Services (compared with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure services. An example would be a restaurant, where a waiter's service is intangible, but the food is tangible.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given product.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models.
Marketing specializations
With the rapidly emerging force of globalization, the distinction between marketing within a firm's home country and marketing within external markets is disappearing very quickly. With this in mind, firms need to reorient their marketing strategies to meet the challenges of the global marketplace, in addition to sustaining their competitiveness within home markets.[15]
Buying behaviour
A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased. Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).
B2C buying behaviour
This mode of behaviour concerns consumers and their purchase of a given product. For example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends. If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be made. This could then develop into consumer loyalty to the firm producing the sneakers.
Relates to organizational/industrial buying behavior.[16] "B2B" stands for Business to Business. B2B marketing involves one business marketing a product or service to another business. B2C and B2B behavior are not precise terms, as similarities and differences exist, with some key differences listed below:
In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth stages are precluded. In a new buy, all stages are conducted.
Use of technologies
Marketing management can also rely on various technologies within the scope of its marketing efforts. Computer-based information systems can be employed, aiding in better processing and storage of data. Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods. Information technology can aid in enhancing an MKIS' software and hardware components, and improve a company's marketing decision-making process.
In recent years, the netbook personal computer has gained significant market share among laptops, largely due to its more user-friendly size and portability. Information technology typically progresses at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Moreover, the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. A firm can lose out to competitors should it ignore technological innovations in its industry.
Technological advancements can lessen barriers between countries and regions. Using the World Wide Web, firms can quickly dispatch information from one country to another without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex, etc.
Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A service (as opposed to a good) is typically defined as follows:
* The use of it is inseparable from its purchase (i.e., a service is used and consumed simultaneously)
* It does not possess material form, and thus cannot be touched, seen, heard, tasted, or smelled.
* The use of a service is inherently subjective, meaning that several persons experiencing a service would each experience it uniquely.
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket. Although the train is a physical object, one is not paying for the permanent ownership of the tangible components of the train.
Services (compared with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure services. An example would be a restaurant, where a waiter's service is intangible, but the food is tangible.
Thursday, September 30, 2010
Marketing research
Marketing research involves conducting research to support marketing
activities, and the statistical interpretation of data into information.
This information is then used by managers to plan marketing activities,
gauge the nature of a firm's marketing environment and attain
information from suppliers.
Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data into information. The marketing research process spans a number of stages, including the definition of a problem, development of a research plan, collection and interpretation of data and disseminating information formally in the form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information.
A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research
Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data into information. The marketing research process spans a number of stages, including the definition of a problem, development of a research plan, collection and interpretation of data and disseminating information formally in the form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information.
A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research
Wednesday, March 17, 2010
Marketing
Marketing is "the activity, set of establishments, and processes for making, communicating, delivering, and exchanging offerings that have worth for patrons, clients, partners, and society at giant."Marketing could be a product or service selling connected overall activities. It generates the strategy that underlies sales techniques, business communication, and business developments. it's an integrated method through that firms build sturdy client relationships and build worth for his or her customers and for themselves.
Marketing is employed to spot the client, satisfy the client, and keep the client. With the client because the focus of its activities, it is concluded that promoting management is one amongst the foremost parts of business management. promoting evolved to fulfill the stasis in developing new markets caused by mature markets and overcapacities within the last 2-3 centuries.[citation needed] The adoption of promoting ways needs businesses to shift their focus from production to the perceived desires and desires of their customers because the suggests that of staying profitable.[citation needed]
The term promoting concept holds that achieving organizational goals depends on knowing the wants and desires of target markets and delivering the required satisfactions. It proposes that so as to satisfy its organizational objectives, a corporation ought to anticipate the wants and desires of shoppers and satisfy these a lot of effectively than competitors.
Thursday, October 15, 2009
Further definitions Marketing
Marketing is further defined by the AMA as an organizational function
and a set of processes for creating, communicating, and delivering value
to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.[4] The term developed
from an original meaning which referred literally to going to a market
to buy or sell goods or services. Seen from a systems point of view,
sales process engineering marketing is "a set of processes that are
interconnected and interdependent with other functions,[5] whose methods
can be improved using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably."[6] A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.[7] In this context, marketing is defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage."[7]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre- and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
Browne (2010) reveals that supermarkets intensively research and study consumer behaviour spending millions of dollars. Their aim is to make sure that shoppers leave spending much more that they originally planned. ‘Choice’ examined the theory of trolleyology finding that many shoppers instinctively look to the right when they’re in the supermarket. Supermarkets prey on this biological trait by positioning many expensive impulse buying products to the right of the every checkout. These products consist of the latest DVD’s, magazines, chocolates, expensive batteries and other tempting products that wouldn’t be on your shopping list. Naturally shoppers pick up the items because of the marketing strategies, victimizing there sub-conscience natures.
Supermarket move products around to confuse shoppers, the entry point is another marketing tactic. Consumer psychologist Dr. Paul Harrison (cited in Browne, 2010) states that supermarkets are constantly using different methodologies of selling. One method is performing regular overhauls changing the locations of products all around to break habitual shopping, and break your budget. Harrison also contends that people who are shopping in a counter clockwise direction are likely to spend more money than people shopping in a clockwise direction. Consumer psychologists (cited in Browne, 2010) reported that most people write with their right hand, thus it is a biological trait that people have the tendency of veering to the right when shopping, it is understood that supermarkets capitalize on this fact. Found on the capturing right-hand side are usually appealing products that a shopper might impulsively e.g. an umbrella when the weather is dull.
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably."[6] A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.[7] In this context, marketing is defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage."[7]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre- and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
Browne (2010) reveals that supermarkets intensively research and study consumer behaviour spending millions of dollars. Their aim is to make sure that shoppers leave spending much more that they originally planned. ‘Choice’ examined the theory of trolleyology finding that many shoppers instinctively look to the right when they’re in the supermarket. Supermarkets prey on this biological trait by positioning many expensive impulse buying products to the right of the every checkout. These products consist of the latest DVD’s, magazines, chocolates, expensive batteries and other tempting products that wouldn’t be on your shopping list. Naturally shoppers pick up the items because of the marketing strategies, victimizing there sub-conscience natures.
Supermarket move products around to confuse shoppers, the entry point is another marketing tactic. Consumer psychologist Dr. Paul Harrison (cited in Browne, 2010) states that supermarkets are constantly using different methodologies of selling. One method is performing regular overhauls changing the locations of products all around to break habitual shopping, and break your budget. Harrison also contends that people who are shopping in a counter clockwise direction are likely to spend more money than people shopping in a clockwise direction. Consumer psychologists (cited in Browne, 2010) reported that most people write with their right hand, thus it is a biological trait that people have the tendency of veering to the right when shopping, it is understood that supermarkets capitalize on this fact. Found on the capturing right-hand side are usually appealing products that a shopper might impulsively e.g. an umbrella when the weather is dull.
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