Assignment marketing căn bản

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

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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 2 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 4 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

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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

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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.
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