Advantage and Disadvantage to Marketers of Canada - Report Example

Statistics of Edmonton: In the census conducted by the government, the of Edmonton had a total population of 1,159,869 people. The census report further reveals that the city of Edmonton has a total dwelling place of 482,249 (Statistics Canada, 2014). However, of this 482, 249 dwelling places, a massive number of 450, 786 were occupied by residents. On this basis, as of 2011, the number of dwelling places that was not occupied by residents stood at 31,463. By looking at this statistics further, it is important to understand that the census report of 2011 identifies the median age to be 36.5 (Statistics Canada, 2014). This statistic further goes on to denote that the population of people who are above 15 years of age stands at 83.3% (Statistics Canada, 2014). From this statistics, we can denote that the number of people who are married stands at 954,960, while the total number of people who are not married stands at 409,305 people. From this statistics, the total number of people that live in private homes is 1,139, 485. This statistic further indicates that a total of 1,146, 600 people are able to speak their mother tongue. In relation to occupation, 12.4% of the population was sales officials, 19.1% represented technicians, and administrative and clerical workers stood at 15.8% (Statistics Canada, 2014). Demographics of Canada: When this statistics is compared to the entire Canadian Demographics, we can denote that Canada had a population of 33, 476, 688 as of 2011. The number of dwelling place occupied by people was 14,569,633. 83.2% of Canadians were above the ages of 15 years, while 27,869,340, had families (Community Profile, 2014). It is important to denote that the most significant thing that I learnt from this exercise is that different regions within Canada have different demographic characteristics. Advantage and Disadvantage to Marketers: One advantage is that it is easy for marketer to develop segments for their products, based on the characteristics of a region identified by the statistics. Another advantage is that it is cheaper to use these statistics, as compared to other statistics that marketers collect. All that an individual needs is an access to the internet and computers. This data can also help markets to identify the various needs of their target customers, through the characteristics identified in it. Finally, these statistics might be useful to marketers, because they may assists in developing an advertising or marketing strategy that targets their specific segment. A disadvantage that this statistics has is that the information provided is huge. On this basis, it will take a lot of time for a marketer to analyze the information. Secondly, these statistics do not identify the specific needs of a region, it requires a marketer to critically analyze the statistics and develop a need. The statistics do not provide information about a particular product or service, the information contained is generalized. Finally, the statistics do not provide the type of products and services that the population of Canada uses in great numbers. Consumer and Organizational Behavior: The first stage is recognizing the problem. It is within my need to look for a portable computer device that is easy to use, and affordable. This portable device must have the capability of taking photos, playing music, and shooting videos. I also need a gadget that has features of accessing social networking sites. My needs can be categorized into two, i.e. functional and social needs. Functional is based on the features of the gadget, while social needs is based on having a gadget that reflects fashion (Dibb, 2012). The second step involves searching for information concerning the existence of a gadget that can satisfy my needs, and solve my problems. This involves identification of potential suppliers, search of quotations and proposals, and the development of the products specification. It is important to denote that information about the product that will satisfy the consumer will emanate from friends, and the websites of the companies under consideration (Baker and Tourangeau, 2012). The third step involves evaluation of alternatives. This involves looking and evaluating different samples that have the capability of satisfying the various needs of the customer. For instance, in my case, I’ll have to look at the products of Samsung, Apples, Microsoft, and Nokia, and come up with a suitable gadget that can satisfy my needs. Under this step, the customer will evaluate the products of these companies, looking at their features and attributes, and making a judgment on whether these features satisfy the various needs of the customer (Baker and Tourangeau, 2012). It is at this stage that the customer will choose Ipad, because it has the features that the customer needs. The fourth step involves purchasing the Ipad (Kotler and Armstrong, 2012). In this step, the customer will visit an Apples supplier or the retailer for purposes of making the purchase. Finally, the fifth stage involves evaluating the product under consideration if it actually satisfies the needs of the customer. This will also involve giving out feedback to the suppliers on the quality of the product. Type of Decision to Purchase the Ipad: The process in making the decision to purchase an Ipad is referred to as an extended decision making process. Under this type of decision making, the involvement of the customer is high, and the products of the prices under consideration are also high. A consumer evaluates many types of brands, before coming up with a decision to make a purchase. Under this decision, a consumer spends a lot of time, for purposes of coming up with a decision on either to buy or not buy a product. On this basis, this decision is a high involvement process, and a think decision process. Sales and Marketing Implications for Apples: Aggressing marketing through the social media. Investing in research and technology for purposes of improving the quality of the product. Offering discounts and after sales services in regard to their products. Engaging in Corporate responsibility, through sponsoring the needy. Part B Segmentation and Positioning Mega Bloks is a company that manufactures and produces toys for children. The company produces building blocks, colors, puzzles, and other stationary items that children might use, both at school, and at home. The company currently has the rights to produce toys such as Hello Kitty, Thomas the Tank Engine, and video game franchises such as Need For speed, World of War craft, Hot Wheels, Barbie, and Sky landers giants (Baker and Tourangeau, 2012). Mega Bloks is a company that has a strong research and development department, which is responsible for identifying the various needs of the customers of the organization. However, Mega Bloks has some weaknesses, and one of the major weaknesses of the organization is the litigations that the organization faced against Lego. This case had an impact in affecting the brand name of Mega Bloks. Another weakness is that this company is highly vulnerable to liquidity crunch (Baker and Tourangeau, 2012). On this basis, the company has to invest in economies that have a stable currency. It is also important to understand that the company faces numerous threats, and one of the major threats is that the company operates in a highly competitive environment. Its major competitors are Lego, and Mattel. There is also a growth of counterfeit toy products, and mostly from companies in China. This threatens the profitability of the organization. The company is also threatened by the existence of unstable political systems, in some countries of the world, and this will affect the ability of the company to do business (Baker and Tourangeau, 2012). However, there are numerous opportunities that the company enjoys, and this includes emergence of new technologies, especially information technology, and positive playing patterns amongst children (Crane, 2010). Based on these facts, the market segmentation approach by Mega Blocks will be based on benefits, that is, segmentation by benefits. Segmentation by benefit is an approach whereby the organization seeks to explain the benefits that its potential customers will get, by acquiring the products under consideration. It is important to understand that behavioral segmentation is characterized by dividing customers into various groups, in terms of how they respond, use and know a product. On this basis, based on the products and characteristics of Mega Bloks, the following is their Market Segments (Baker and Tourangeau, 2012); Toddler, who is a child between the ages of 1 to 3 years. Pre scholars, who is a child between the ages of 2 to 5 years. Grade Schooler who is a child between 5 to 12 years. Profile of the Target Market: Toddler: Who they are: This is a child between the ages one to three years. What they want These children need toys that are movable, or static When they want it: They normally need these toys once they are able to walk, or crawl. Where they buy it: It is there parents who buy these toys, at toy dealers, or retailing units. How they buy it; Parents of these children are influenced by the developmental characteristic of their children, and hence they buy them to help in their growth. Segment size: This segment consists of less than 5% of the total Canadian Population. Pre scholars: Who they are: This is a child between the ages of two, to three years. What they want These children need toys that are movable, or static. They also need colored materials for drawings. When they want it: When they start attending school. Where they buy it: It is there parents who buy these toys, at toy and stationary dealers, or retailing units. How they buy it; Parents of these children are influenced by the developmental characteristic of their children, and hence they buy them to help in their growth. They are also influenced by the desire to improve the performance of their children. Segment size: This segment consists of less than 15% of the total Canadian Population. Grade Schooler: Who they are: This is a child who is between the ages of five, to twelve years. What they want These children need toys that are movable, static, visual, and stationery items such as colored pencils and crayons. When they want it: Once they start attending grade school Where they buy it: They normally buy these products at retailing units. How they buy it; They are influenced by their peers, TV advertisements, and teachers who make a recommendation of items needed. Segment size: This market segment consists of not more than 15% of the Canadian population. Recommendation of a Primary Target: The primary target of the organization should be toddlers. This is because chances are high that the company might create a good relation with the parents of the toddlers, and hence they would be loyal customers for the organization, when the child moves from being a toddler, to the next developmental stages. Position Strategy: The positioning strategy that the organization will use for purposes of attracting parents with toddlers is on the quality of its products, and their prices. It is important to understand that Mega Bloks operates in an environment where it faces stiff competition from companies such as Lego. To be a market leader, the company must adopt the principles of cost leadership, and produce high quality products. That is the products of the company must be of low prices, while still maintaining their high quality (Crane, 2010). Through production of high quality products, the company will manage to retain its customers, and thus build a loyal pool of customers. The organization mainly depends on its research and development department to defend this position. The department manages to collect information on the various needs of customers, and develops their products with the main aim of satisfying those needs (Crane, 2010). To achieve low pricing, the company needs to implement a series of cost cutting measures in their production and administrative process. Positioning Map: High Quality Crayons Building Blocks Playing Toys Low Price High Price Low Quality Part C: CRM: Customer relationship management is a process that involves all manner of interaction with the customers of an organization. Customer Relationship Management is an abbreviation of CRM, and its systems are always used to manage the clients of the organization, contracts that the organization, business contacts, and sales. One of the major characteristics of a CRM system is that it is a customer oriented service, aimed at satisfying the customer’s requirements, and it engages directly with the customers through its service centers (Crane, 2010). Another characteristic is that it encourages the use of technology in serving its customers. Another characteristic is the use of a sales force automation process. This process enables an organization to serve its customers automatically, or through the internet. This process helps an organization to track the buying behavior of its customers, and develop a strategy aimed at retaining them (Crane, 2010). The CRM helps an organization to understand the needs of a customer attract new customers, retain their existing customers, and increase the profitability of the organization under consideration. For the implementation of the CRM system, the management has to conduct the following processes (Crane, 2010), Developing a strategic decision concerning the goals of the CRM system. Choosing a highly skilled project manager. Provide support to the project manager. Ensuring that members of the project team are committed and highly skilled in implementing developing and implementing the CRM system. Implement the project in phases. In conclusion, for an organization to gain a competitive advantage over its competitors there is a need of the organization to implement its CRM system. This is because customers will derive satisfaction from this system. References: Baker, P. A., & Tourangeau, F. (2002). Mega Bloks Inc.: building blocks for growth. Toronto: Merrill Lynch. Community Profile. (n.d.). Edmonton. Occupation of employment. Retrieved April 5, 2014, from http://profile.id.com.au/cairns/occupations?WebID=200 Crane, F. G. (2010). Marketing for entrepreneurs: concepts and applications for new ventures. Thousand Oaks, Calif.: Sage Publications. Dibb, S. (2012). Marketing concepts and strategies (6th ed.). Andover: Cengage Learning. Statistics Canada. (n.d.). File not found / Fichier introuvable. File not found. Retrieved April 4, 2014, from http://www12.statcan.gc.ca/census-recensement/2011/dp- d/prof/details/page.cfm?Lang=E&Geo1=CMA&Code1=835&Geo2=PR&Code2=4 8&Data=Count&SearchText=Edmonton&SearchType=Begins&SearchPR=01&B 1=All&GeoLevel=PR&GeoCode=835&TABID=1 Kotler, P., & Armstrong, G. (2012). Principles of marketing (14th ed.). Boston: Pearson Prentice Hall. Solomon, M. R., Marshall, G. W., Stuart, E. W., Smith, J. B., Charlebois, S., Shah, B. (2013). Marketing:Real People, Real Choices. (4th Canadian ed.). Toronto: Pearson Education Canada Inc. Read More