How To Effectively Position a Product or Service to a Target Market and Developing a Suitable Marketing Mix - Coursework Example

Name: Instructor: Course: Date: Market Analysis How To Effectively Position a Product or Service to a Target Market and Developing a Suitable Marketing Mix In order to establish an efficient and effective business, a business should effectively seek out its target customer market. Target marketing constitutes prudent market segmentation, targeting and positioning in the target customer’s market. Market segmentation comprises categorizing by a business of various clients into groups that share mutual necessities or where the clients are likely to respond correspondingly to a marketing activity (Harms and Kurt 12). Every segment/group will react to a different strategy of the marketing mix, with every one portraying alternate profit and growth opportunities. For example, the business can consider different aspects such as demographics, which ruminates the attributes of the potential customer such as gender, age, income bracket, job, cultural background, and education in positioning its product. It can also consider the psychographics of the clients such as their lifestyle, for instance, their lifestyle, social class, personality, attitudes, and opinions. By analyzing the potential consumers’ behaviour based on their activities, the business will position itself strategically in relation to its competitors (Harms and Kurt 12). For instance through brand preferences, online shoppers, prior purchases, and shopping centre customers. The geographical setting such as country, continent, province, or state, rural or city, which the customer group lives, is another important attribute to consider before entering the market. There are various strategies for choosing target markets in relation to competitors. Undifferentiated Targeting: Here the business will consider the market as a single group with no constituent segments, thus, it will use one marketing strategy. This approach is useful in areas where the business faces little competition and as such no need of tailoring strategies for diverse preferences. Concentrated Targeting: This mechanism will focus on choosing a certain market niche whereby different competitors operate. Here, the firm will focus on a particular segment to focus on comprehending the wants and needs of that specific market intimately (Harms and Kurt 23). Many small firms can gain using this strategy because concentrating on one segment will allow them to compete excellently against larger competing firms. Multi-Segment Targeting: The approach is applicable in a business where it requires to concentrate on two or more market segments that are well defined and where there is need to establish different approaches for them (Harms and Kurt 24). Multi segment targeting provides many gains but can be expensive, as it comprises greater input from organization, improved promotional strategies, and augmented market research. Effective positioning is vital and it entails developing a brand image and product in the minds of clients. For example, a business can improving the perception of customers regarding the experience they will get if they select to obtain its service or product. Here, the business will confidently inspire the perceptions of its target customers through strategic promotional undertakings and by prudently defining its enterprise’s marketing mix. Effective positioning will allow the business to identify the differential benefit with which it will provide the required product to the potential market against what the competitors offer. Firms should seek to define themselves in their consumer’s eyes in reference to their competition. The Major Activities in Goods and Services Distribution A trade channel or channel of distribution describes the route or path along which goods and services move from manufacturers or producers to industrial users or ultimate consumers. There are different activities, which occur during the movement of goods from the manufactures to the end users. The networks of distribution through which manufactures puts their products in the market comprises of: - producers, users or consumers and the involved intermediaries such as selling agents, dealers (retailers), and wholesalers who mediate between the consumers and producers (Giglierano, Joseph and Pfoertsch 17). Therefore, the network serves to link the gap between the production joint and the consumption point thereby creating place, possession, and time utilities. Distribution channels consist of different activities. For example, the downward movement of goods and services from producers to users, upward flow of payments for commodities from users to producers, and the downward and upward flow of marketing information for example, the flow of information on fresh commodities, new utilities of existing commodities etc. from manufacturers to end user (Giglierano, Joseph and Pfoertsch 19). The flow of information also assumes the nature of opinion on the proposals, complaints, and wants from the users to the producers. The activities involved in distribution channels vary for different products. This is because there are different types and numbers of intermediaries entailed. Some channels are diminutive and directly connect producers with customers. Examples of different channels of distribution have different activities as outlined below: Producer-Consumer: This is the shortest and simplest channel where there are no intermediaries involved and manufacturers sell their goods directly to the end users (Giglierano, Joseph and Pfoertsch 27). It is an economical and fast distribution channel. In this channel, an entrepreneur or producer undertakes all the marketing activities have total control over distribution. An illustration of this system is where an entrepreneur vends his goods directly to his users through door-to-door sale agents, or through his retail stores or over mail. Producer-Retailer-Consumer: This distribution channel entails only one intermediary 'retailer'. For example, a producer may sell his products to retailers who buy in bulk, and who in turn vend to the final users. This channel minimizes the producer’s load of vending the goods by himself and accords him control over the distribution process. This is usually suited for the distribution of products of high value and consumer durables. Producer-Wholesaler-Retailer-User: Under this distribution channel, two middlemen i.e. retailers and wholesalers are involved. For example, a producer of a commodity who sells to his wholesalers who again sell it to retailers. Finally, the retailers sell the commodity to the end users. This approach is favourable for producers with narrow product lines and limited finance, and those who need promotional support and expert services of wholesalers (Giglierano, Joseph and Pfoertsch 29). Manufacturer-Agent -Wholesaler-Retailer-User: - This comprises the longest distribution channel with three middlemen involved. This is applied when the manufacture desires to be completely relieved of the challenge of distribution and therefore hands over his produce to the sales agents. The agents dispense the product amongst several wholesalers. Each of these wholesalers distributes the product amongst other retailers who ultimately sell it to the final users. The Integrated Marketing Communication Approach and Its Major Elements of the Promotion Mix Integrated Marketing Communications connotes a term, which describes the holistic methodology to marketing communication (Yeshin 12). It seeks to ensure the complimentary use and steadiness of message of media. This model can use offline and online channels of marketing. Examples of online marketing channels comprise of any e-marketing programs or campaigns from search engine optimization, email, pay-per-click, and partners, banner to newest web associated webinar channels, micro-blogging, blogs, Internet TV, and RSS (Yeshin 23). Examples of offline marketing channels comprises of traditional print media, mail order, industry relations, public relations, billboard, television, and radio. A firm can create its integrated marketing communication campaign using all the attributes of the marketing mix-promotion, product, place, and price). Integrated marketing communication involves the integration of all the marketing approaches, resources, and tools within a firm, which augments impact on customer’s mind and which generates into greatest profit at lowest cost. Elements of Integrated Marketing Communication Every communication has its own exclusive costs and characteristics. The common elements are: Advertising: This can be used to establish a long-term brand for a commodity product or to initiate quick sales (Yeshin 24). Advertising is suitable in reaching geographically spread consumers. For example, certain types of advertising includes: television, which necessitates a large budget, or other forms like newspapers that are cheaper. The presence of any advert might influence sales. This is because consumers might have faith in a heavily advertised product. Advertising allows the seller to repeat a communication severally. It gives the buyer time to receive and compare the communication of different competitors. Large-scale advertising speaks positive about the success, size, and power of the seller. Additionally, advertising gives opportunities for dramatizing the firm and its product via the artistic use of colour, print, and sound. The audiences of an advert do not feel obligated to focus or respond to adverts. Personal Selling: This is an effective tool at the critical stage of the trading process, and is especially useful in establishing buyer conviction, preference, and action (Yeshin 27). Personal selling entails an immediate and interactive association between two or more people. Every party is able to perceive the others response. This element of integrated marketing communication allows all types of relationship to rise up. Personal selling create feelings of obligation of the buyers listening to the sales exchange. Sales Promotion: Some examples of tools of sales promotion used by firms includes premiums, coupons, contests, and the like to generate a stronger and quicker buyer reaction. Sales promotion tools gain attention and may direct the buyers to the product. Moreover, they incorporate some inducement, contribution, or concession that provides value to the end users. Public Relations: This well-thought-out platform can be combined with other communication elements to give extreme results. Direct Marketing: This aspect entails different forms such as internet marketing, direct mail, and telemarketing (Yeshin 27). Direct marketing can be customized to create appeal to the individual it addressed. Such a message can be quick to prepare and can be changed depending on the individual’s response. Work Cited Giglierano, Joseph J., R. Vitale, and Pfoertsch.W.,Business to Business Marketing: Analysis and Practice. Pearson Education, 2011.Print. Harms, Brent, and Kurt Johnson. "Customer identification and marketing analysis systems." U.S. Patent No. 6,070,147. 30 May 2000. Yeshin, Tony. Integrated marketing communications. Routledge, 2012. Read More