The Need for Marketing Information for Bottle Brothers to Improve the Running of the Business - Case Study Example

Principles of Marketing One of your first tasks is to persuade senior managers at Bottle Brothers of the need for marketing information to improve the running of the business; make a list of the types of information that you believe would be useful for marketing purposes. Outline for two types of information how you would collect this information and explain how it would assist in marketing decision making. Marketing information is irrefutably significant to the success and even mere survival of a business organization. The importance of marketing is highlighted due to the evolution of a business arena characterized by hypercompetition. As markets are becoming more and more hypercompetitive, there exists a more stringent competition among competitors and higher bargaining leverage. With these features of hypercompetitive business arena, the role of marketing in the operation of the businesses becomes more pronounced. Marketing information can be efficiently utilized to cope with competition as well as win the patron age of buyers. In the case of Bottle Brothers, the use of marketing information to adapt to the current business environment is imperative. The pressure from competitors as well as buyers necessitates them to seek for relevant information about their market. Looking at the company scenario, the marketing information which will bring benefit to Bottle Brothers include: customer information like buyer behaviour, consumer preference, perceived customer value, customer profile, and buyer receptiveness to marketing campaigns; competitor information like pricing, brand image, value chain and other strategies; trend in the external environment like technological advancement, cultural preferences, social trends, economic developments, political factors, and others. This paper recommends that Bottle Brothers concentrate on two marketing information namely, consumer preference and marketing technology. The next section will briefly outline how these facts can significantly improve the operation of the company. Possible ways of collecting this marketing information will also be revealed. It should be noted that the global business sphere is becoming more and more market-driven and customer-oriented. Businesses have come to realize that satisfying customers ensure their profitability. In satisfying customers, businesses should gain an in-depth knowledge of their specific markets. Companies need to be acquainted with the buyer's preferences. Customer preference tells a company the needs that they want to be satisfied as well as how they want these needs to be provided. It is essential that Bottle Brothers conduct a thorough research on the preference of the customers. This is highlighted by the changing business sphere that the company is operating in. The company needs to know if clients really derive value from purchasing a well-known brand. In its current situation, Bottle Brothers is required to decide how to create a brand image for its products. At the same time, the manufacturer also needs to know the appropriate products that it should sell in the market. The proliferation of other competitors with their own products necessitates an investigation to generate the products which really creates value for its customers. It is extremely important the company focus on designing and producing clothing that suits the requirements of its market. Bottle Brothers can thoroughly outline the preference of its buyers by conducting an intensive market research. However, it is important that the company starts by defining its target market. Doing this as a starting point helps the company in generating the appropriate information. The company can then draft a survey which aims to answers the question discussed above. Bottle Brothers should be able to prepare questions which looks at the major motivation of buyers in their purchases. This can include price, place, quality, comfort, convenience and other relevant factors which are often incorporated in buying decisions. However, the company should focus on image of the brand as a motivational factor. Also, the company should ask product features which are sought by customers. This can include the fabric, quality, and even the colour of clothes. The second marketing information which can be generated and utilized by Bottle Brothers is the utilization of technology to efficiently market its product. In the scenario given, the industry players are not yet efficiently utilizing the internet technology to generate revenue and serve the market. This is due to the fact that customers want to ensure that their clothing will be appropriately fitted according to their body sizes. However, it is irrefutable that Bottle Brothers need to gain a sufficient knowledge on how the commercialisation of internet can be utilized for businesses. The company should also know the particular apprehensions of customers in online shopping and how they can be overcame. As with the former marketing information gathering, Bottle Brother should design a survey geared in assessing the opinions of its market. The manufacturer can first look at the sales trend of the companies using online presence to target prospective buyers. This way, Bottle Brother can have an idea of how online business is conducted and its effectiveness. Afterwards, the company can ask customers about their opinions in online shopping. The company can use this information by adding web features which minimize the risk of customer apprehension. Marketing information is needed to craft an efficient and well-functioning marketing strategy. As with other business organisations, Bottle Brothers can directly benefit from generating significant market information. However, it should be noted that this can only become profitable if used efficiently. Write a report advising the senior managers at Bottle Brothers how an understanding of market segmentation might help improve business prospects. Your report should include the discussion of appropriate segmentation criteria and provide an example of how they might be used in the clothing market. 1.0. Executive Summary Marketing segmentation is one of the essential aspects of marketing. This tool aids the company in defining its target market as well as design products to provide their needs. This report will show how Bottle Brothers can use market segmentation for its own benefit. 2.0. Introduction Market segmentation is defined as the "division of market into homogenous group of consumers (Market Segmentation 2004)." Market segmentation is a very essential tool in devising an effective marketing strategy for a firm. Market segmentation allows every company to develop marketing strategies for each segment to maximize product profitability. This tool enables the company to gain competitive market positioning as well as deliver maximum customer value. The nature of modern markets highlighted company's need for market segmentation. As markets are continuously becoming more and more volatile and competitive, mass or standardized marketing is becoming an obsolete strategy. There are gaps in the needs of every customer which needs to be serviced by firms. SMART (4) has identified four benefits of market segmentation. Accordingly, market segmentation enables a company to design responsive products to cater to the needs of the marketplace. It can also help develop effective and cost-efficient promotional strategies and campaigns. As segmentation allows company to better position themselves in the marketplace, market segmentation gives the company an insight on how they are perceived by their current and prospective customers. Market segmentation also aids companies to develop and improve marketing strategies. 3.0. Consumer Market Segmentation Generally, the consumer market can be segmented using four criteria: geographic, demographic, psychographic, and behavioural factors. Geographic segmentation is "based on regional variables such as region, climate, population density, and population growth rate." On the other hand, demographic segmentation uses variables gender, age, ethnicity, religion, education, income, and family status. Psychographic goes beyond these often quantifiable variables by concentrating on factors such as values, attitudes, and lifestyle. Behavioural segmentation focuses on dividing the market by usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. This report will utilize the psychographic variables to segment the market being served by Bottle Brothers. 4.0. Bottle Brothers and Demographic Segmentation The market for clothing is composed of buyers with different demographic factors. One of the most probable variables that Bottle brothers can use in segmenting the clothing industry is occupation. This is a very appropriate variable because the type of clothing that an individual uses is often dependent on his/her job or career. Typically, the manufacturer provides clothing to workers in factories and constructions which uses tough and protective yet comfortable clothes. However, the clothing industry is comprised of more than just one segment. This report will divide the clothing industry into three market segments-Top Executives, Junior Executives, and Rank and File. Top Executives represents customers who hold the highest position in business organisations such as vice presidents. This can also represent workers in industry where professional clothing is imperative such as hotels and airlines. These customers are more likely to prefer professional yet fashionable and comfortable clothing with high prices. The main concern of the individuals in this segment is to exude an aura of professionalism and formality. The Junior Executive prefers a more casual clothing to work. This segment is consists of marketing people, artists, and workers for recreation clubs. This segment puts style, image, and quality as the most important criteria in choosing clothes. The Rank and File is pretty much the segment which is previously served by Bottle Brothers. This consists of employees in the construction industry. This segment needs protective, hard wearing yet comfortable clothing. 5.0 Conclusion The discussion above highlights how market segmentation can be used by Bottle Brothers as a tool to divide its market in order to come up with appropriate products suited to the segments' specific needs. Thus, this tool comes back with the basic marketing goal of ensuring customer satisfaction through the provision of products which delivers customer value. You believe that some of the managers at Bottle Brothers are ignorant of issues concerning consumer and organisational buyer behaviour and you believe that if managers were more customer/market-oriented sales would increase significantly. You have decided to run workshop for managers entitled 'Understanding all our customers - how it can increase sales' Provide details of the issues to be discussed at the workshop and the practical examples you would use to illustrate your task. (Please note that your discussion should cover both individual and organisational customers.) Marketing is typically defined satisfying customer needs through the provision of products and services. The success of a corporation is now measured on its knowledge of its market. It should be noted that the more a company knows about his market, the more he can create products and services and market them profitably. Bottle Brothers can very much benefit on a workshop which aims to acquaint them with the basic of knowing and understanding their customers. During the work shop, it is imperative that the value of knowing clients be emphasized. Before anything else, the workshop should point out all the reasons why the company needs to invest in knowing its market. The workshop should focus on two types of buyers-individuals and institutions. It is irrefutable that the factors influencing the buying behaviour of these two groups are diverse and unique to each other. Thus, two different discussions will be outlined. Individual Buying Behaviour The first part of the workshop will deal with the buying behaviour of individual. The discussion will open with the factors influencing buyer behaviour which includes cultural, social, personal, and psychological factors. This part will mainly concentrate on how these factors directly influence the preferences of buyers. This will also emphasize that as different customers have different orientations and experiences defined by the aforementioned factors, they will have different expectations and perceptions. This discussion will also be beneficial to Bottle Brothers especially if it's targeting individual who are based in different geographic regions. It should be noted that as the world is becoming a single village through globalization and internet technology, the manufacturer can benefit a lot from understanding how different cultures value a good or a service. To fully understand the customers, marketers should also be aware of the stages of the buying process and the influencers with each process. Five definite stages will be evaluated: problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behaviour. What is crucial here is for Bottle Brothers to realize that its marketing effort can be tailored to influence one or more of the stages in the buying process. For example, the company can target the information search of the individual buyer through its advertising efforts. In here the company can use public and commercial sources to influence the buying process. Organisational Buying Behaviour In discussing the buying behaviour of organizations, marketers should first understand how organisations differ from individual consumers. As opposed to the consumer market, the buyer segment has fewer but larger buyers. The market for business usually encounters fewer buyers with higher purchasing power. Also, there exists a closer relationship between supplier and buyer especially in this ear of strategic partnership. Other features include geographically concentrated buyers, derived demand, inelastic demand, fluctuating demand, and professional purchasing. In an organisation, the buying centre is the decision making unit of a business. It consists of initiators, users, influencers, deciders, approvers, buyers, and gate keepers. Marketers, then, should be keen in influencing these participants. Like individual customers, Bottle Brothers can influence their buying decision by understanding their environmental, organizational, interpersonal, and individual factors. The workshop will also look at the stages of the buying process in organisations. It should be noted that there are more stages in institution buying process: problem recognition; general need description; product specification; supplier search; proposal solicitation; supplier selection; order routine specification; and performance review. It should be emphasized that the buying process in an institution is more formal than in individual consumers. As there are also more individuals involved in the buying process, a buyer should gain the consensus of these players. Also, the buyer should also be ready and flexible according to the needs and requirements of customers. For example, if an institution is mainly concerned about the price of a good or a service, the company should be able to price competitively. It should also be noted that institutional buyers often require more paperwork from sellers. Another good area for discussion during the workshop is the way technology alters and modifies the buying process of institutions. Bottle Brothers should also be acquainted with strategic partnerships among institutions. The company should also know how suppliers are now incorporated into the value chain of a firm. Lastly, Bottle Brothers should also know about business-to-business marketing and its benefits. References Kotler, Philip (2003). Marketing Management. New Jersey: Pearson Education Limited Market Segmentation. Retrieved 24 August 2006, from http://www.quickmba.com Read More