Integrated Marketing Communications for Various Market Segments - Case Study Example

Section I: Question Research Approaches An extensive research is needed in order to open a women fashion store in Sydney. For that purpose, I would use mixed approach which uses both the Qualitative and Quantitative research methods. Quantitative research focuses on the numerical data or the data which can be converted into numeric form. The data of number of woman fashion stores in Sydney, the number of customers visit in these fashion stores, the annual cost and sales of these fashion stores would be collected. Qualitative approach would be used to find people’s experience, belief, behaviors, and attitudes. This research consists of data which is qualitative however it can be made quantifiable. The qualitative research would help to know what Sydney residential women want in terms of fashion. The data regarding liking, disliking, quality, price, and convenience would be collected form a sample. Source of Data I would use both primary and secondary data sources to collect data. Secondary data would involve past researches on women fashion stores in Sydney and Australia. Along with that, fashion magazines, Newspapers, and Annual reports of our competitors would also be taken into account. On the other hand, primary research would involve the use of questionnaire, interviews, and focus group. Interviews and questionnaire would be structured and consist of both open and close ended data. The above primary data techniques are more reliable and gives accurate result. Sample Size Selection of effective sample size is crucial for the significance of the research. Therefore, population must be decided first. Population in this research would consist of all women who live in Sydney. After determining the population size, probability of population who will be responded to our survey will be calculated. Then the confidence interval would be developed to know how confidence the researcher is for his collected data. The systematic sampling of random sampling method will be used to choose samples because it allows the probability of every nth person to be chosen. Question # 2: Target Market for the Fusion Energy Drink Fusion Energy drink gives ultimate energy to stress out people to become active, dynamic and vigorous. Therefore the target market of the drink would include all the people above the age of 18 who wants to live energetic and thrilling life. However, special focus will be given to the following segments. 1. Athlete Athletes are usually sport persons who require abundant energy while playing any sport. The athlete might be common persons who play sports or they might be famous sport celebrity. 2. Workers Workers are usually mentally and physically tired due to the excessive workload. Therefore, the fusion energy drink provides them solution to become stress free. Product Life Cycle (PLC) The fusion Energy drink would be in third stage i.e. growth stage of product life cycle because energy drinks have been introduced since many years. New products and entrants have pushed the energy drink market into growth stage. This stage is featured with the significant increase in the sales volume, cost reduction, increased competition, and increased profitability. Stages of Adoption Process There are five different stages for the adoption of new products (Kotler and Armstrong, 2010): 1. Product Awareness The customers become aware about the new product but do not have much information about it. 2. Product Interest In the second stage, the customers started showing interest in the product and get information about the product from various sources. 3. Product Evaluation The customer makes evaluation whether the new product should be used or not. 4. Product Trial The customer uses the product in a small scale in order to evaluate it. 5. Product Adoption After evaluation, the customers decide to make use of the product in future. Factors influence Early Adoption of Fusion Energy Drink I think consumer’s perceived risk is one of the factors which can affect early adoption of Fusion Energy Drink. The energy drink is manufactured by the components which can directly affect the human health. Therefore, people might think “let them other try the product” Trial-ability is also one of the significant influencing factors. There are various famous brands in the energy drink market. Therefore people might stay away in using other brands initially. Section II: Question # 1: Market Segmentation Market segmentation refers to segmenting or dividing the market into different homogenous groups of consumer according to their distinct needs and characteristics. A Company using market segmentation targets different group of buyers who perceive the company’s product and services differently from one another. For instance, a shoe manufacturing company might target the football players as well as long runners using its athlete shoes. Company needs to adopt different marketing strategies to cater each segment. Usually the company segments consumer markets on the following four primary bases (Kotler, 2009): Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Basic Conditions for Effective Segmentation Effective market segmentation requires the following basic conditions (Kotler and Keller, 2009). a) Measurable The different attributes of the segments must be measurable such as size, needs, usage patterns, purchasing power etc so that each segment can be identified easily (Kotler and Keller, 2009). b) Divisible The segments must be divisible. Each segment should respond differently to different marketing mix. Their characteristics and behaviors should be separated from each other (Kotler and Keller, 2009). c) Accessible The segments should be accessible through different media such as communication and distribution channels (Kotler and Keller, 2009). d) Substantial The segments should be sufficiently large in terms of number of customers and profit (Kotler and Keller, 2009). e) Durable The segments must be durable and stable to help in minimizing the cost of frequent changes (Kotler and Keller, 2009). Cars/Juice /Airlines Market Segmentation Car Markets can be segmented using the segmentation basis. Small, middle class families should be offered small cars between the ranges of 1000 CC to 1200 CC. For executive and upper level class, there must be high tech luxurious cars. For those who are aggressive or teenagers, stylish mini cars should be offered. Gender, occupation, family status, price sensitivity and benefits sought are also the basis for car market segmentation (Kotler and Keller, 2009). Juice market can be segmented on the basis of age, gender, lifestyle, price sensitivity and benefits sought. While Airlines markets can be segmented on the basis of brand loyalty, price sensitivity, occupation, education, income, family status, population, values, and ethnicity (Kotler and Keller, 2009). Question # 2: Integrated Marketing Communications Integrated marketing communications (IMC) is the concept of designing marketing communication system in which all the elements of marketing communication works in harmony to deliver the same message (Kotler and Keller, 2009). IMC has now become very important technique to manage profitable relationship with all employees, shareholders and customers. The purpose of the IMC is to convey the simple and unified information to all stakeholders. The use of offline and online communication tactics has allowed the companies to communicate the right information to the right customers at the right time and at the right place (Kotler and Keller, 2009). Steps in developing effective IMC for Ferrari Establishing a Clear Goal and Measurable Objectives The first step for developing IMC plan for Ferrari is to define and establish clear and measurable goals. The goal of the Ferrari is to increase the market share by 20 percent as a fastest sports car. Understanding the Target Audience The second step is to identify the target audience clearly. The target market of the Ferrari sports cars is car racers and youngsters between the ages of 18 to 30. Evaluating Communication Options There are many communication options for Ferrari to reach to its customers. However television advertisement and internet are the best options. Internet is the cheap and fastest source to communicate the message easily. Moreover, youngsters spend an immense time on internet which is our target market. Another communication option is the advertisement using banners, posters and sponsors in the car racing arenas. Implementing Communication Tactics The Television advertisement will be frequently used throughout the year. The frequency of these ads would be increased especially just before a month of a major Racing Events. The ads will be telecasted in all the major TV channels. Different internet webinar banners will be used to advertise the brand. Social websites such as facebook and twitter will be focused particularly. Banners, posters, sponsors will be used in Car racing Arenas whenever there is a car racing event. Question # 3: Stages of Consumer Decision Making Process The process of decision making of consumer regarding purchasing of product is called the consumer decision making process. There are five stages of consumer decision making process which are as follows (Hawkins and Mothersbaugh, 2009). 1. Problem Recognition The first stage is the need recognition. This is the stage in which consumer feel deprive for some of the necessities. The need is not created by the marketers rather it is identified in the consumers. Marketers use various tools such as advertisement tools to arise the need in the consumer minds. When the consumer feels the need of something then the consumer decision making process starts (Neal, Quester, and Hawkins, 2004). 2. Information search Once the need arises in the mind of consumer, he/she started searching the information to fulfill that need. For that purpose, consumer uses all possible sources to obtain information. Internet is the fastest and cheaper way to search the product and services. Buyer can also search the information from friends, family and neighbors (Neal, Quester, and Hawkins, 2004). 3. Alternative evaluation After searching the products and services which can fulfill the need, the buyer selected and evaluated the brands on the basis of standards and specification set by him. The consumer assesses each brand on the basis of price, quality, features, convenience, and other short and long term benefits (Neal, Quester, and Hawkins, 2004). 4. Purchase decision After evaluating each brand according to the standard, the buyer selects one of the brands which best fits for him. The stage also involves the physical purchase of the brand (Neal, Quester, and Hawkins, 2004). 5. Post-purchase behavior Consumer’s behavior reflects the success of product. The consumer would be satisfied if the brand gives value what consumer perceived. If it gives more than perceived value, the consumer would be delighted. The less value will disappoint consumer (Neal, Quester, and Hawkins, 2004). It is not necessary that consumer use all stages of decision making process while purchasing the product. Sometimes there is no need of the product but some consumers buy the product as they are early adopter or they like to buy new things. Similarly alternative evaluation is also not necessary for some consumers as they are brand loyal (Neal, Quester, and Hawkins, 2004). List of References Hawkins, D., and Mothersbaugh, D. (2009). Consumer Behavior: Building Marketing Strategy. New York: McGraw-Hill. Kotler, P, and Armstrong, G. (2010). Principles of Marketing. Upper Saddle River, New Jersey: Prentice Hall. Kotler, P. (2009). Marketing Management. Pearson: Prentice-Hall. Kotler, P., and Keller, K. (2009). A Framework for Marketing Management. New Jersey: Pearson Prentice Hall. Neal, C., Quester, P., and Hawkins, D. (2004). Consumer Behaviour: Implications for Marketing Strategy. Australia: McGraw-Hill Irwin. Read More