TARGET MARKET

Q15: What are the possible strategies to target the market? 

INTRODUCE:

Market segmentation reveals a company's market segmentation opportunities. The company must now evaluate the difference segments and decide how many and which segments it can best serve. Now let's see how the companies rate and select target segments.

 TARGET MARKET:

A target market can be defined as:
“A collection of buyers who share a common need or characteristic that a company
service decision.

It can also be defined as:

"The target market is a group of customers within the company's available offering.
market to which a company directs its marketing efforts and resources.
TARGET MARKET SELECTION PROCESS:

Here is the process of identifying the target market:

One's Choice
target market
Evaluation
market
segment
Make a choice
target market

STEP 1: ASSESS THE MARKET SEGMENTS:

When evaluating different market segments, a business should consider three factors:

1. Size and growth of the segment:
2. Segment structural attractiveness and
3. Company goals and resources. 

1. Size and growth of the segment:

The company must first collect and analyze data on the current segment's sales, growth, and forecasts. profitability of different segments. It will focus on segments of the right size and growth rate featured. But "right size and right growth" is a relative question. The largest and fastest growing segments are not always most attractive to each company. Small businesses may lack the skills and resources needed to serve larger segments. Or they may find these segments too competitive. These companies can target segments are smaller and less attractive in absolute terms, but are more profitable for surname

2. Segment structural attractiveness

The company should also consider the key structural factors that influence the segment's attractiveness over the long term. These factors could be Competition: A segment is less attractive if it already has many strong and aggressive competitors. Substitutes: The existence of many actual or potential substitutes can limit prices and Profits can be made in a segment. Buyer Power: Buyers have strong bargaining power over sellers who will try to lower prices, require more services and create competition with each other, all to the detriment of the seller's bottom line. Strength of suppliers: A segment may be less attractive if it contains strong controllable suppliers. price or reduce the quality or quantity of goods and services ordered. 

3. Company's Objectives and Resources

Even if a segment has the right size, growth, and structural attractiveness, the company must still consider own goals and resources. Some attractive segments can be quickly dropped because they don't fit together with the company's long-term goals. Or the company may lack the skills and resources needed to success in an attractive segment.

STEP 2: SELECT TARGET MARKET SEGMENT 

After evaluating different segments, the company must decide which and how much to target.
Market targeting can be done at many different levels. Define target market levels: Companies can target very broadly (undifferentiated marketing), very narrowly (micromarketing), or somewhere in between (differentiated or focused marketing).

 

1) Undifferentiated Marketing / Mass Marketing:

A market hedging strategy in which a firm decides to ignore market segment differentiation and target the entire market with a single offer. Such a strategy focuses on what is popular in consumer demand rather than what distinctive. The company designs a product and a marketing program that will attract more buyers.

2) Differentiated/segmented marketing:

A market coverage strategy in which a company decides to target multiple market segments and Design provided separately for each. By offering product variations and marketing to segments, companies hope to increase sales and a stronger position in each market segment. Develop a stronger position in multiple segments generates more total revenue than undifferentiated marketing across all segments. But differentiated marketing also increases the cost of doing business.

3) Focused Marketing/Nine marketing:

A market hedging strategy in which a company targets a large market share of one or a few segments or recess. Through concentrated marketing, the company gains a strong position in the market due to better knowledge of consumer needs in the niches it serves and the distinctive reputation it has get. It can market more effectively by adjusting its products, prices, and programs to according to the needs of carefully defined segments. The niches are smaller and may attract only one or a few competitors. Focused marketing can be very profitable. At the same time, it involves many normal risks. Companies that rely on one or a few segments for their entire business will be hit hard if that segment goes bad. Or larger competitors may decide to join fragment has more resources. For these reasons, many companies want to diversify several market segments. 

4) Micromarketing:

Tailoring products and marketing programs to specific individual needs and desires
and local customer segments; He understands:

 Local marketing
 Personal marketing. 

a) Local marketing:

Local marketing involves tailoring brands and promotions to the needs and wants of consumers customer groups - cities, neighborhoods and even specific stores. The brand's store designers create the format of each new store based on the neighborhood
features - for example, shops near the office park have islands featured with
Prepare meals for busy workers. Utilize loads of customer data on daily sales in
per store, Walmart adjusts each store's merchandise with the same precision. Local marketing has some downsides. This can increase production and marketing costs
reduce economies of scale. It can also create logistical problems when companies try to
to meet the diverse requirements of different regional and local markets. In addition, a brand
The overall image may be diluted if the product and message differ too much
localities.

b) Personalized Marketing/Personalized Marketing:

Tailor products and marketing programs to individual needs and preferences
customer - also known as one-to-one marketing, one-to-one marketing, and one-to-one markets marketing. Mass customization is the process by which companies interact directly with the masses customers to design products and services tailored to their individual needs. One-on-one marketing has made customer relationships more important than ever. Choose a targeting strategy Companies need to consider many factors when choosing a market targeting strategy.

What The best strategy depends on the following factors:
Company
Resources
Choosing the best strategy depends on the company's resources. When the company
With limited resources, focused marketing makes the most sense. product level
change The best strategy also depends on how variable the product is. Undifferentiated marketing is more suitable for homogeneous products, such as pomelo or steel. Product Lifecycle
(PLC)
The stage of the product life cycle must also be taken into account. When a company introduces a new product, it may be convenient to just release one version and
Undifferentiated marketing or focused marketing can make the most of
feel. However, during the maturity stage of the product life cycle (PLC),
Differentiation marketing often makes more sense. Changes in the market If most buyers have the same taste, buy the same quantity and react the same
marketing, marketing without discrimination is appropriate. Competitors’
marketing
strategies
When competitors use differentiated or concentrated marketing,
undifferentiated marketing can be suicidal.

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What is Marketing ?

 Q1: What is Marketing? What are its primary goals?

OR

Define Marketing. Discuss the important objectives of marketing?

DEFINITION OF MARKETING:

According to Philip Kotler:

“The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”.

OR

According to William J. Stanton:

“Marketing is the total system of business activities designed to plan, price, promote, and distribute want satisfying products to target markets in order to achieve organizational objectives”.

OR

According to American Marketing Association:

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”.

OLD CONCEPT VS NEW CONCEPT OF MARKETING:

Difference of Selling and Marketing:

In old days, marketing was just considered as selling goods to consumers by using attractive words and

diverting consumer’s attention to the product. But now-a-days, marketing is no more a selling activity.

Selling is considered as just a tip of marketing ice-burg. Now, marketing involves creating profitable

customer relationships by satisfying needs of customers through a valuable product.

Difference between advertising and Marketing:

Some people, who are not familiar with actual definition of marketing, consider that marketing is just

making an effective advertisement and publishing it on different media at effective rates. Core concept of

marketing is entirely different. Advertising is just a part of marketing, not a whole of marketing. It is

included in a small description of one of the 4Ps of marketing 

1. COORDINATED MARKETING EFFORTS:

One of the important objectives of marketing is to develop an effective coordination and harmony among all

the marketing activities so that we can maintain profitable customer relationship by delivering them a valuable

product. It is necessary because we have to generate value in every step of the process otherwise delivering

value to customers will not be possible. This is called TQM (Total Quality Management).

As explained by William J. Stanton, it is a system of implementing an organization-wide commitment to

quality that involves every employee accepting responsibility for continuous quality improvement. Consider, we have best suppliers of raw material for our product. It is essential to have up-to-date

machinery, people and other overheads for having value in processing. After that, we must have distributors that

create value through their services. At the end, after creation of value at every step, we will be able to deliver

actual value that a customer is expecting us to deliver.

For Example: Walmart, cannot deliver its products at low prices i.e., value for customers, unless it

successfully creates value at every step of its process. Similar is the case with TCS, which tries to create value

at every station to make timely delivery of parcels possible.

a) Quality product

Building a quality product for customer can be an aim of the business. Customer may consider quality of a

product as its value. Customer may define quality of a product in many ways. Like a person can say that it is a

measure of excellence or a state of being free from defects, deficiencies and significant variations. It can also be

defined as the totality of features and characteristics of a product or service that bears its ability to satisfy

stated or implied needs.

Although most firms don’t ignore quality of the firm. But we must have to consider the acceptable levels of

quality for customers determined by our engineers and manufacturing people. It is necessary because if quality

of a product goes up, its cost also goes up. But increase in cost relative to quality can be controlled through

affective marketing, like:

i) Assessing customer’s point of view of quality:

Marketing can help marketer by obtaining and responding to input from customers about how they

define quality and what they expect in a particular product.

ii) Reducing problems of Production processes:

Marketing can help marketer by improving designs to reduce problems in manufacturing, and

identifying and correcting problems early in the production process to reduce excessive reworking

and wastes.

iii) Call employee’s attention towards quality:

Marketing can help marketer by Encouraging employees to call attention to quality problems, and

empowering them to initiate action to improve quality.

Marketers’ determine that return on quality can be measured which is a refined form of TQM.

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 The Changing Nature of MARKETING

Question : What is marketing? How has the marketing landscape changed in
Modern world? OR

Discuss trends affecting marketing and what these trends mean for
How marketers deliver value to customers. MARKETING DEFINITIONS:

According to Philippe Kotler:

"The process by which companies create value for customers and build strong relationships with them into capture customer value”.

 OR

According to William J. Stanon:

“Marketing is a set of business activities designed to plan, price, promote, and distribute demand.

to provide satisfactory products to target markets in order to achieve organizational objectives”. OR

According to the American Marketing Association:

“Marketing is the activity, set of institutions and processes of creation, communication, distribution and

valuable exchange incentives for customers, customers, partners and society at large”.

 CHANGING THE MARKETING LANGUAGE:

Every day, drastic changes are taking place in the market. The rate of change is so fast that it's possible change has become a competitive advantage. The future is not what it used to be. Changes in the market is observed suddenly. As the market changes, the people who serve it must change as well. Here we look at key trends and forces that are changing the marketing landscape and challenges Marketing strategy. We look at the main developments:

1) Precarious economic environment,

2) The digital age,

3) Rapid globalization,

4) A call to raise morals and social responsibility,

5) The evolution of non-profit marketing

6) Increase the number of jobs in the marketing department. 

7) Strengthen service marketing

first. Uncertain economic environment: Since the Great Recession of 2008, people have reshaped their consumption habits. They have identified their new purchasing priorities. The "new savings", born of the Great Recession, is becoming an ingrained consumer behavior that is reshaping consumption patterns in different ways. Even in As a result of it, consumers are now spending more cautiously. In response, companies in all industries, from discounters to luxury brands, have linked them marketing strategies with new economic realities. More than ever, marketers are focusing on value in their value propositions. They focus on value for money, practicality and durability in their product offerings and marketing. Even the wealthiest consumers join the frugal trend. The ostensibly free expenditures are Not so fashionable anymore.

For example,

for many years, Lexus emphasized status and performance. But now it has been focus on "lowest cost of ownership". His pre-Christmas ads often feature a loving spouse Gift your loved one a new Lexus with a big red bow tie. Lexus still runs these ads, but it also hedges by running other ads with the tagline "lowest cost of ownership." refers to Lexus' fuel economy, durability, and resale value.

 I. Top-down economic marketing strategy:

Selective discounts can be a key marketing tactic in a recession, smart Marketers understand that cutting back in the wrong place can hurt brand image in the long run and customer relationships. The challenge is to balance the brand value proposition with the present time and at the same time improve long-term equity. Monday. Marketing Strategies After the Recession: At the end of a recession, the organization's position in the competitive group will depend on How well do you handle tough times? So instead of discounts, many Marketers hold a price point of view and instead talk about why their brand is worth it. And more right rather than slashing their marketing budgets in tough times, companies like Walmart, McDonald's, Hyundai and General Mills have maintained or increased marketing cost. The goal in these uncertain economic times is to gain market share and build a customer base relationships that are detrimental to competitors reduce their costs.

2. The Digital Age:

The recent technological boom has created a digital era. The explosive growth of computing, communication, information and other digital technologies have had a major impact on the way companies bring value to their customers. Now, more than ever, we are all connected other people and information anywhere in the world. It used to take days or weeks to receive news about important world events, we now learn about them as they happen via live satellite news programs and websites. Where it used to take weeks to exchange letters with other people in faraway places, they are just minutes away from you via cell phone, email or webcam. For better or worse, technology has become an integral part of our lives. The digital age has provided marketers with exciting new ways to learn and track customers and create products and services tailored to each customer's needs. It helps marketers Communicate with customers in large groups or one-on-one. Through web conferencing, marketing Researchers from the company's headquarters in New York can consult focus groups in Chicago or Paris. without ever getting on a plane. Using today's powerful computers, marketers can create their own detailed customer databases and use them to target individual customers with offers designed to satisfy their specific needs. Digital technology has also brought a new wave of media, advertising and relationships create tools, from online advertising, video sharing tools and mobile phones to web applications and online social networks. They can't always control conversations about their brand. new digital world that makes it easy for consumers to absorb marketing content that once existed only in advertising or on Brand Web with them wherever they go and share it with friends. Current user statistics: Total Internet users worldwide 55.1% of the total world population Internet users in Pakistan (as of January 2018) 22% of Pakistan's population (44.6 million) Active social media users 16% of Pakistani population (32 million) Annual digital growth in Pakistan 27% per year (+10 million)

Source: Profit.PakistanToday.com

Online marketing is currently the fastest growing form of marketing. It's hard to find one these days The company does not use the web significantly. Business-to-business e-commerce (BtoB) is also exploding. It seems almost every business has a web store set up. 

3. Rapid globalization:

In an increasingly small world, businesses are now globally connected to their customers and business partners. Today, almost every business, large or small, is affected in one way or another by compete. American companies were challenged at home by skillful marketing of European products and Asian multinational. Companies like Toyota, Nokia, Nestlé, and Samsung often perform better their American competitors in the US market. As a result, managers in countries around the world are increasingly adopting a global, not just local, approach. overview of the industry, competitors and business opportunities. They ask: what is global marketing? How is it different from national marketing? How do competitors and global forces influence our business? To what extent should we “go global”?

4. Enhance social responsibility:

Marketers are rethinking their relationship with values ​​and social responsibility and with It is the Earth that sustains us. As global consumer and environmental movements mature, Today's marketers are called upon to develop sustainable marketing practices. Corporate ethics and social responsibility have become hot topics for almost every business. Customers today expect businesses to create value in a socially and environmentally responsible manner. Social and environmental responsibility movements will place stricter requirements on business in the future. Some companies are resisting these movements.

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Analyzing Multiple Business or marketing types

Introduction:

In today's business world, marketing has become an important part of an organization's capital. Nature is influential and interacts with its target audience. The business has evolved over the years, incorporating many ideas and methods. From traditional methods to the rise of digital platforms, businesses now have many marketing options at their disposal. In this article, we will examine some of the most important businesses, highlighting their features and benefits.

1.Traditional Marketing:

Traditional marketing refers to traditional methods that have been used for decades. This type of marketing relies on offline channels to reach customers. Some traditional marketing methods include:

a) Advertising:

        This includes newspaper advertisements, newsletters, brochures, flyers and a direct distribution plan. Print ads provide visibility and can target local audiences.

b) Radio broadcasting: 

               Television and radio broadcasting fall into this category.Radio advertising enables businesses to reach a wider audience and produce meaningful content.

c) Outdoor Advertising:

              It covers advertisements made through outdoor advertisements such as posters, billboards and signboards. Outdoor advertising increases product awareness in public spaces.

d) Events and Support: 

            Attending trade shows, presentations and support events helps businesses thrive and meet potential people.

 2.Digital Marketing:

With the spread of the internet and the advancement of social media, digital marketing has grown tremendously. This type of marketing uses digital channels to connect with your target audience. Basic digital marketing techniques include:

a) Content Marketing: 

            Creating and sharing relevant, relevant and consistent content such as blog posts, videos and infographics helps build business awareness, drive and attract potential customers.

b) Search Engine Optimization (SEO):

            Optimize your website and content to rank higher on search results pages, increase organic visibility, increase website traffic and build trust.

c) Marketing: 

         Using platforms such as Facebook, Instagram, Twitter, and LinkedIn to create a brand name, engage with followers, and run advertising campaigns.

d) Email Marketing: 

             Send personalized and targeted emails to generate leads, build customer relationships, and promote good products or services.

e) Pay-per-click (PPC) advertising:

            Advertising plans on search engines or social media platforms where the advertiser pays only when the ad is clicked. PPC advertising provides fast and measurable results.

f) Influencer Marketing: 

              Work with influencers or thought leaders with a large social media following to promote products or services and leverage their credibility and influence.

3.Relationship Marketing:

            It gives importance to personal communication, customer satisfaction and trust. Key concepts include:

a) Customer Relationship Management (CRM): 

            Using technology to manage and analyze customer interactions and information with the goal of increasing customer retention and loyalty.

b) Loyalty Programs: 

            Provide incentives, rewards and special benefits to encourage repeat purchases and increase customer loyalty.

c) Personalized Marketing: 

              Adapting marketing messages and offers to engage and satisfy customers' tastes and behaviors.

Content:

In an ever-evolving business environment, businesses must adapt and use a variety of marketing strategies to reach their target audiences effectively. While traditional marketing methods are still applicable to certain industries and the general public, digital marketing has created new opportunities to reach a wider audience. Relationship marketing, on the other hand, focuses on building relationships with customers. By understanding and using the right marketing strategies, businesses can enhance their brands, attract customers and ultimately achieve their business goals in this digital age.

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Traditional Marketing

Timeless Strategies for Business Success

Introduction:

In the fast-paced world of digital advertising, traditional marketing strategies are in the background. However, the benefits of traditional trade, which has proven effective for decades, must be acknowledged. Traditional marketing includes offline advertising that connects a business to its target audience. In this article, we explore the importance of traditional marketing and discuss its importance in today's business world. 

1.Concrete and attractive:

One of the greatest strengths of the business is always its nature. These physical elements affect the viewer both tactilely and visually, creating a lasting impression. Holding a map or viewing a report about a trip connects potential customers to the brand on a personal level, building trust and confidence.

2.Broader audience:

Digital marketing has a global reach, while traditional marketing has the potential to target local audiences. Local newspapers, community events, and radio stations support a specific area, allowing businesses to connect with potential customers nearby. Traditional marketing strategies allow businesses to tap into the hyper-local market, which is especially important for small or real-location businesses.

3. Design Brand Insights:

Traditional business methods have been used for decades, making them an integral part of our culture.

Advertisements, songs and highlights in television and radio broadcasts are often embedded in our memories and become a part of our consciousness. Through traditional marketing, businesses can build a good reputation and awareness. The consistency and repeatability of the marketing plan makes the brand repeatable at all times, ensuring that people remember and trust the brand when making a purchasing decision.

4. Build Personal Connections:

Businesses always have a face-to-face relationship that nurtures a personal connection between the business and its customers.

Trade shows, trade events and promotions allow businesses to interact directly with their audiences. These interactions allow businesses to better understand customer needs and preferences, build trust and build long-term relationships. The personal touch of traditional commerce is especially relevant in businesses like real estate or financial services, where trust and relationships play an important role.

5. Add Digital Marketing:

While digital marketing dominates today's advertising, traditional marketing methods can complement online strategies.

An integrated marketing strategy that combines traditional and digital methods can be even more effective. For example, a business can increase traffic to its online platform by adding a QR code or website URL to a print ad. In addition, traditional marketing can generate offline buzz and word-of-mouth, increasing the impact of digital marketing.

Conclusion:

In this technology-driven world, it's easy to overlook the enduring value of traditional business. However, traditional marketing methods have unique advantages that digital marketing cannot fully achieve.

The tangibility and repetition of physical business information, the ability to reach a large local audience, build a brand, make personal connections and add a Digital strategy is all about continuing to influence traditional business in today's business world. By harnessing the power of traditional marketing and digital efforts, businesses can create effective marketing strategies to resonate and succeed with their target audience.

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PARTNERSHIP TO BUILD CUSTOMER RELATIONSHIPS

Question : How does marketing work with partners to create and deliver value?

INTRODUCTION:

Customer value is a key component of the marketing formula for success. However, marketers themselves cannot create more value for customers. Marketing plays a key role, but it can only be a partner in acquiring, retaining and growing customers. That is, in addition to managing relationships with customers, marketers they must also practice managing partner relationships.

1) Must work closely with partners in other company departments to create effective internal value chain that serves customers.

2) They must cooperate effectively with other companies in the marketing system to create a competitive company an excellent external network for delivering value.

We now take a closer look at the concepts of the enterprise value chain and the value delivery network.

DEFINITION OF VALUE CHAIN:

A value string can be defined as:

A number of internal departments that perform value-creating activities to design, manufacture, sell, supply and support the company's products.

Marketing's Value
chain

Partnering with
other departments

Partnering with
Others in the
Marketing System

1. Partnership with other departments:

Each company department can be considered as a link in the company's internal value chain, i.e. each department performs value-creating activities in design, manufacturing, marketing, delivery, and support of the company's products. The success of a company does not depend only on how well each department works his work, but also on how well individual departments coordinate their activities. Like Porter's value chain model, it explains that making a profit is only possible through coordination of multiple activities. And these diverse activities are carried out by different departments organization. So we need to maintain linkages and partnerships across departments. The first activity in the value chain is inbound logistics, which includes all receiving, storage, and management of stocks of raw materials ready for production. The second activity is operations which includes all efforts to transform raw materials into a finished product. Outbound logistics is the third activity in the value chain and takes place after all operations completed and the product is ready for the customer. Activities required to deliver the product to the end user are considered part of outbound logistics. Marketing and sales are the fourth part of the value chain and include all strategies to increase product visibility, meet consumer needs with the product, and facilitate the sale of the product. Activities include channel selection, advertising and pricing. The service is the fifth and final step in a company's value chain and describes all the activities that create a better consumer experiences such as customer service, refund and exchange programs, and warranty and repair services.

For example, Walmart offers its customers "Save money, live better". Walmart's goal is

create value and customer satisfaction by providing customers with the products they want at the lowest possible prices. Merchandisers play an important role at Walmart. They learn what customers need and stock store shelves with the desired products at unbeatable low prices. They are preparing an advertisement and merchandising programs and assist shoppers with customer service. Through these and other activities

Walmart merchants help deliver value to customers.

Walmart's Marketing department

R&D
Advertising
Purchase department
Informarion Technique
Operation

However, the marketing department needs help from other departments in the company. Walmart's the ability to offer the right products at low prices depends on the skills of the purchasing department in development necessary suppliers and purchase from them at a low price. Walmart's IT department must to provide quick and accurate information about which products are sold in each store. And his surgery people must ensure efficient, low-cost handling of goods.

Challenges in partnership with other departments:

1. Resistance from other departments:

Relationships in the department are full of conflicts and misunderstandings. Marketing the department takes the consumer's point of view. But when marketing tries to develop the customer satisfaction, it may cause other departments to do a worse job under their circumstances. Marketing Departmental actions can increase purchasing costs, disrupt production schedules, increase inventory, and cause budget problems. Other departments can therefore resist marketing departmental efforts.

2. Think about the customer approach:

Marketers must find ways to get all departments to “think about the consumer” and develop a smoothly functioning value chain. True market orientation does not mean becoming marketing oriented powered by; that is, the entire company (including all departments) is obsessed with creating value for the customer. It should be considered as a unit of a bundle of practices that profitably create, communicate and deliver value to your target customers.

2. Partnership with others in the marketing system

In today's market there is no more competition between individuals competitors. Rather, it takes place between the entire networks of value delivery that these networks create competitors. Customer value delivery network means the network formed by the company, its suppliers, its distributors and ultimately its customers working together to improve performance of the entire system. Partnering with others in the marketing system means looking into the company's value chains suppliers, distributors and ultimately its customers. More companies today collaborate with others supply chain members—suppliers, distributors, and ultimately customers—to improve network performance of delivering value to customers. For example, around the world, McDonald's finely tuned value delivery system provides a the high standard of QSCV - quality, service, cleanliness and value. McDonald's is only effective for to the extent that it successfully works with its franchisees, suppliers and others to co-create “our customers' favorite place and way of eating”. Another example is that Toyota's performance against Ford depends on Toyota's quality total supply network value versus the Ford network. Even if Toyota made the best cars, it could lose out marketplace if the Ford dealer network provides sales and service that is more satisfactory to customers.

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