Target Customers and Marketing Strategy - Coursework Example

Target s and marketing strategy Introduction The international marketing demands new and innovative approaches to business which takes into account cultural and national differences of product perception and product value. Marketing strategy is aimed to reach diverse consumers and sell products on the international scale. Marketers should apply different strategies and techniques in order to reach target market and create effective marketing strategies. Maslow’s theory of needs and its application to marketing One approach, widely known by managers, is set out by Abraham H. Maslow in his book “Motivation and Personality”. Maslows theory of motivation claims that human motives develop in sequence according to five levels of needs. These needs are: psychological (hunger, thirst), safety (protection), social (be accepted, belong to a certain group), esteem (self-confidence, achievements, respect, status, recognition), and self-actualization (realizing one’s potential for continued self-development) (Maslow, 1970). This leads to the statement that a satisfied need is not a motivator. There is a doubt whether this really applies in practice to the higher needs as it is likely that self-esteem requires continues stimulation and renewal. In spite of its clarity it has some limitations which make it unacceptable in all situations (Wasserman, 2009). Few attempts have been made to test the validity of Maslows ideas. A big problem is that many companies do not satisfy higher-order needs through their jobs or occupations, and this cannot really be tested. Another point is that he viewed satisfaction as a major motivator and this is not directly related to production. In addition, Maslow does not mention the time period between various needs (Raymond et al 2003). Applied to target customers and marketing strategy, Maslow’s hierarchy of needs allows managers to predict needs and demands of customers and their desires. Buyers do not always know why they decide to make a purchase -- and even when they do, they may prefer to keep the reason to themselves. Often, more than one reason or psychological motive may underlie a purchase, some of which may be known to the purchaser and others not. Separating the conscious from the subconscious is at best taxing, if not impossible. An understanding of buyer behavior has been strengthened by psychologically based concepts and theories of behavior and by psychoanalytical ideas (Wasserman, 2009). The psychological factors that shape personalities and needs are particularly significant in purchase and consumption behavior. Analysis of wants, motivations, attitudes, expectations, aspirations, security levels, opinions, and images supplies important clues that help to predict behavior patterns. Marketing and psychology are inextricably linked in the task of trying to interpret utility as the complex result of basic motives and incentive values. Cultural situations vary greatly, as does related buyer behavior. Yet, findings of anthropological research indicate that the fundamental or ultimate desires of human beings, regardless of their cultures, do not differ as much as their conscious everyday desires. Different cultures, of course, have varying ways of satisfying a particular desire. For instance, self-esteem is probably a universal drive or motivating force, but the method of achieving self-esteem will vary among cultures and will be reflected in buyer and consumer behavior. Behavior-primacy theory is based on the belief that all behavior is primarily directed to coping with environments. People attempt to secure positive benefits and satisfactions by dealing with their environments. According to behavior-primacy theory, the primacy drive is the tendency to deal with the environment. General behavior is determined by the environmental opportunities, and the interaction of a consumers or companys capacity with the environment will generate specific interests (Yun and Zhao, 2005). People become absorbed in and motivated by dealing with environments. In marketing, this theory has received considerable emphasis, as in the marketing concept and the systems approach, which stress adaptation to environments so that company goals may be achieved (Raymond et al 2003). The consumer behavior model (or industrial model) and the marketing effort The customer behavior model is based on the following elements: insights, design and action. The consumption process is a learning experience that affects and is affected by perception. Perception influences the selection and interpretation of marketing information, symbols, and products (Yun and Zhao, 2005). Because it affects the expectations of potential results from various customer choices, it is a significant factor in individual and group reaction. In essence, perception determines how marketing reality is interpreted and thereby influences the consumer. Buying runs the gamut from habitual, routine purchases, which involve little planning, to such purchases as houses and automobiles, which require deliberation and evaluation over a considerable period of time; from purchases initiated by the buyer to those initiated by the seller; from purchases where powerful, logical, and rational motives exist as in some industrial situations, to purchases where more emotional motives are the dominant force, as in such consumer goods as perfumes (Xiaojing et al 2009). The reasons for making purchases vary among buyers. Such features as status symbols, prestige, utility, economy, price, service, and warranties may appeal to different segments of the market. Formerly, a very simplistic approach to the study of motives was adopted in marketing, with motives dichotomized as rational or emotional. Motives that lead purchasers to buy without "adequate" evaluation of the advantages and disadvantages were termed emotional (Yun and Zhao, 2005). They resulted in action not because of any logical evaluation, but because of such factors as image, color, brand, and style, and they appealed to pride, belonging, love, ambition, and fear. Rational motives, on the other hand, were related to logical and reasoned courses of action, and were stimulated by appeals of economy, service, durability, and functionality of products (Raymond et al 2003). Overview of the Product/Service The product and services, I am going to introduce, proposes numerous benefits for a large target audience as it helps people to solve their daily problems. FlowerWorld that is the name of the company I would like to start. My company will provide customers with online service that allow them to buy and send flowers from all places of the world to their relatives and friends. The main difference between Flower World and FTD.com or 1800flowers.com is that we are going to concentrate on the deliveries in Central Asian countries such as Kazakhstan, Kyrgyzstan and Uzbekistan. Company’s target market: an application of the concepts The FlowerWorld services will be based its strategy on a differentiation criterion. This allows FlowerWorld services to shift its focus to brand image and price reduction measures. This strategy will help FlowerWorld services to maintained high-speed growth through continuous optimization of its product mix. Degree of differentiation is not large, and home repair service should represent a market where competitors can differentiate their products and that is why have less rivalry. Rivalry will be reduced where customers have high switching costs - i.e. there is a significant cost associated with the decision to receive products from an alternative competitor. The majority of customers are people from 18-75+ years old who value personal relations and comfort. The majority of customers belong to middle and upper social classes with stable income. The family status will not have a great impact on the target audience characteristics. FlowerWorld services propose to its customers’ competitive prices to ensure customer satisfaction. FlowerWorld service can use parity pricing or going rate strategy. This strategy will help the company to attract buyers and create a core of loyal brand support. Nevertheless, penetrating pricing strategy can also be used at the initial stage of marketing campaign. It allows demonstrating product benefits for potential customers (SIX PROFESSIONAL SERVICES 2009). Company’s competition: an application of the concepts Central Asian countries and Africa introduces laws and regulations in order to support foreign subsidies and attract FDI (foreign direct investments). In order to support national economy, the governmental prevents price rises, or even to rolls them back in basic industries such as steel. Governmental involvement seems to relate price increases to the impact on inflation and increased productivity. Government has the influence to block or roll back price increases. Central Asian countries have favorable legal laws and regulations which support market development and growth, thus they limit monopolistic position of every company. Economic situation in Central Asia is marked by high inflation rates and low income per capita. Thus, liberalization and high level of investments can be considered as opportunities for the company to enter this country. Central Asia companies have higher standard of living. Social-demographic factors suggest fast population growth and decreased mortality rates. Both in physical appearance and in most aspects of their culture-notably, their language, their traditional form of administration, and their religion. Organizations that are sensible will ensure that they are at the vanguard of this revolution in their industry. Those which will be the winners will ensure not only that they are at the vanguard of their industry, but also that they seek to exploit the learning from developments in R&D for the rest of their organization. While the population that can be addressed by conventional physical sales and marketing is constrained b geography, that of the Internet is constrained by the number of people who both have access to it and make active use of it (these not necessarily being the same thing). Estimates of the number of people who use the Internet and PCs vary widely, although a consensus seems to be emerging that currently tens of millions of people do indeed use the Internet (Malakian, 2009). Technological factors involve the Internet access and development of telecommunication infrastructure, new methods of doing business and information availability. Such factors as continued economic growth, increased disposable income, vigorous domestic and foreign competition, accelerating technology, automation, population decentralization, expansion, and innovation will spur the appearance of this new marketing form. The application of computer technology and the use of new analytical techniques has added greatly to the efficacy of planning activities. Such tools as critical paths, input-output analysis, payoff matrices, decision trees, linear programming, and simulations. The decision as to whether or not to enter this stage and pursue rapid growth may be influenced by the business leader wanting to make more money, desiring to lead a large business or perhaps for the status. Alternatively it could be driven by the demands of the customers who may want to put more trade with the business and who might take their trade elsewhere if the business cannot respond (Semancik 2009). In Central Asia, FlowerWorld s will not face great competition as the majority of players use traditional (retail) models of selling. The main competitors of the FlowerWorld will be FTD.com or 1800flowers.com, global Internet-based companies. The market of the online flower sales is not large involving three main players and several national players. From an economic perspective, however, FlowerWorld services represent boundless opportunities for marketing campaign within flexible geographical boundaries. To an economist or strategic planner, it represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another. The problem is that many companies are specialized on innovative products which are not appropriate for many types of printing, and the price of their services higher than in comparison with this device. Convenience is not the only reason customers will buy this device. New models of FlowerWorld services have high potential to occupy a niche in the market. Successful promotion and advertising campaign will help the company to attract professional and home users target and increase sales in a year sustain strong market position and loyalty of customers (Semancik 2009). Target audience of FlowerWorld service is female and male consumers from 18-45 years old. Consumer behavior occurs where people act as purchasing agents guided by corporate procedures to acquire products and services for use by themselves and others in their won value-creating processes. The target audience consists of A, B, and C1 social-economic groups. FlowerWorld services oriented on teenage audience and young people who are brand loyal and value good music. Positioning of FlowerWorld services can be characterized by establishing trustworthiness, confidence, and competence for customers. Implementation- Action Plan The new model will be positioned as a unique car which promises mobility and social freedom. Personalization, innovation, and technology will be the core of positioning strategy. The buyer perception of benefit-generating attribute will be based on unique design and stylish image appealing to a wide target audience. Social mobility and personalization will be the main attributes of positioning strategy. A unique image of the car and a sense of belonging to new generation will appeal to potential consumes (Malakian, 2009). Implementation of the first campaign Send Direct mail - twice on September and October and one on November; Cinema ad - 7 times a day starting from the 20th of September to end of November; Radio ad - 10 times a day from the 5th of September to end of November; Advertising in local Press - once a week from the 5th of September to end of November; TV ad - 3 times in the evening starting from the 5th of September to end of November; Posters in transport; Display stands; Calendars and wallcharts. The control will be made once a month through questionnaires and feedbacks. In addition to differentiation strategy, product positioning will help to establish trustworthiness, confidence, and competence for customers. If the FlowerWorld service has those ele­ments, customers will then have the "being" of the com­pany within their minds. It is about earning customers trust to make them willingly follow the home repair service. Because customers cannot be managed, they have to be led. In order to successfully lead customers, home repair service has to have credibility. So posi­tioning is not just about persuading and creating image in the consumers minds, it is about earning consumers trust and loyalty. Positioning strategy should support differentiation strategy in order to widen product potential market. Not all rational motives are economic, utilitarian, or tangible. For example, the desire to have well-styled clothing, good design in furniture, or tasty food may not be economic or utilitarian. Such a desire may, however, be rational. Therefore, what might appear to a market analyst to be an irrational purchase motive because the purchase is psychologically based may be a perfectly rational motive to the consumers concerned ((Semancik 2009). Conclusion Buying behavior is rational if the purchases have been approved by the buyer, who acts to satisfy his physical or psychological needs, even though reasons for purchase may conflict with what observers feel should be done or are not readily apparent to researchers. Purchase reaction that is geared to satisfy such needs as the need for affiliation, the need for achievement, or the need for power should not be termed irrational. Although customers often purchase on the basis of emotional appeal, this does not mean that promotional strategy should be mainly emotional. Often the best strategy is to offer a rational motive such as economy, service, or family protection to support emotional drives. This tactic assures the buyer that he is acting in a logical or best manner. References Malakian, Anthony. (2009). As Deposit War Heats Up Smart Pricing Is Vital. U.S. Banker 119 (1), pp. 31, Retrieved 05 April 2009 from EBSCO. Raymond, Mary Anne; Mittelstaedt, John D.; Hopkins, Christopher D. (2003) WHEN IS A HIERARCHY NOT A HIERARCHY? FACTORS ASSOCIATED WITH DIFFERENT PERCEPTIONS OF NEEDS, WITH IMPLICATIONS FOR STANDARDIZATION -- ADAPTATION DECISIONS IN KOREA. Journal of Marketing Theory & Practice. 10 (11), pp. 12(14). Retrieved 05 April 2009 from EBSCO. Semancik, Jon. (2009). What, how and why: Connected equipment for instrument reprocessing. Healthcare Purchasing News. 33 (1), pp. 38(3) Retrieved 05 April 2009 from EBSCO. SIX PROFESSIONAL SERVICES MARKETING PREDICTIONS FOR 2009. (2009). Law Office Management & Administration Report. 9(1), pp. 43. 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