Targeting, Positioning, and Segmentation - Coursework Example

PART 1

From a business perspective, customers are the inherent backbone of an enterprise since they are the resources upon which the success of an organization depends. Therefore, being customer focused implies that an organization understands how repeat purchase behavior inspires business growth since it is the basis of selling and getting revenues (Hakanen and Jaakkola, 2012). Besides, being customer centric implies that the management of a business understands how it is highly dependent on the customers to achieve the necessary growth. As such, a customer focused organization tends to lean towards meeting such objectives like increasing customer loyalty as well as satisfaction (McQuarrie, 2014). The implication is that failure to meet the expectations of the customers can have a devastating effect on the company as the customer will leave the business Thus, a business or profit organization should strive at all costs to meet the needs and expectations of the customers because the business aims and objectives are only achievable upon satisfying such expectation (Hakanen and Jaakkola, 2012).

In this case, a customer-focused organization creates a culture that fosters the meeting of such objectives as on the needs of the customers (Hakanen and Jaakkola, 2012). Mainly, all the business strategies and goals should be tailored towards meeting such expectations. Therefore, for all strategies, business models especially those focused on customer service, the aim should be customer-centric at all costs.

Nonetheless, meeting the needs and expectations of the customers when launching new products implies the right of market research information (regarding the consumer behavior) and using them to develop products align to such demands (McQuarrie, 2014). Principally, the precise meeting of their expectations and needs should be tailored and integrated at all fronts including price, product specifications as well as the services they will expect from the new products (Hakanen and Jaakkola, 2012). Meeting customer needs is also an imperative during brand development because when the needs and expectations are met, the product or service being offered will receive a positive image or position among the customers. In return, loyalty to the brand improves by the meeting of their expectations and finally, the brand firmly positions in the consumer’s minds.

Various marketing concepts, tools, and models are available for achieving the goal of meeting the needs and expectations of the customers. One of the most common tools is the market segmentation concept. Notably, the business concept entails division of the market or the consumers into different markets or sub-consumers whereby the consumers are either divided from shared as well as unshared features (Chernenko and Sunderam, 2012). To a greater detail, Bickhoff et al. (2014) explain the market segmentation as the division of a larger homogenous market and categorizing the consumers into different consumer segments whereby the individuals are divided based on the similarity of demands as well as needs features. Notably, market segmentation helps in devising the best approach or the most appropriate marketing mix that will be most effective for each market segment (Chernenko and Sunderam, 2012).

One of the most vital considerations during market segmentation is the psychographic segmentation that focuses on the exploration of the people's lifestyles. In this case, the relevant data to be explored include interests, attitudes, value, and as such, the information will provide in differentiating the market into different groups based on their lifestyle (Chernenko and Sunderam, 2012). Having such an insight also helps in the positioning of the product. For instance, some individuals may have particular attitudes towards lifestyle and fashionable goods. Using such information, the marketers can design messages that present the brand as a fashion focused and as such, positioned as a providing fashion sensitive consumers the chance to enjoy a variety of products. Besides, some customers may be price sensitive and this case, the data can be used to differentiate the products based on the consumer’s behaviors towards product prices (McQuarrie, 2014).

Demographic segmentation is a necessary construct in market segmentation as it outlines the demographic composition of the market regarding gender, income status and age group (Chernenko and Sunderam, 2012). Having knowledge of the gender composition of the market will help in tailoring the marketing approaches as well as the products towards meeting their expectations. For instance, feminist products will naturally gain the attention of the females. In addition, economic, cultural and background information is a key factor in marketing as it helps in dividing the markets based on elements like prices to be charged(based on the purchasing power or buyer bargaining power), the accepted products (by the predominant culture). In this case, the product positing should be based on the income levels, gender and the cultural influences on consumer behavior (McQuarrie, 2014).

Geographic segmentation is also an imperative when designing a marketing mix (Chernenko and Sunderam, 2012). Mainly, the construct refers to how markets are divided or classified into different geographical locations. The implication is that the same strategy cannot apply for people living in different places. For instance, reputable multinational corporations like McDonald's consider geographic segmentation as a factor influencing consumer behavior. Particularly, the company does not have beef products in its Indian franchisees because such go against their religious beliefs. Nestle has successfully implemented proper geographical segmentation, and this explains how its products sell through the year in most of the cold countries in comparison to the geographic locations experiencing defined winter and summer seasons.

Behavioral segmentation is also an important factor to consider; it entails the emphasis on the how behavioral elements or aspects influence the consumption behaviors the customers (Chernenko and Sunderam, 2012). For instance, there is the generation X or the Millennial who have high affinity towards technologically based products, fashioned goods and as such, their consumer behavior can be considered as volatile. On the contrary, there is the generation Y with conservative purchase and consumer behaviors. Such information will be imperative or necessary in determining what elements and attributes of the products to manipulate to gain the attention of the customers from different generations. To some people, the best shopping behavior and experience is that which provides them with the best deals at lower prices. On the other hand, some consumers believe in getting value and worth for their money even when they pay less for the goods and services being sold.

Marketing targeting and segmentation data are then used to offer product positioning attributes to each market. For each target markets, the products can be differentiated by positioning based on quality, services and purchase experiences (Chernenko and Sunderam, 2012). For instance, Generation Y likes online purchase behavior, and this is a value preposition that the new product presentation can consider. The implication different attributes of the products should be sold and positioned differently to the target markets since they have different behaviors. Particularly, different aspects like marketing messages, symbols, and displays should all be tailored differently for the markets (McQuarrie, 2014). Price is an important aspect or point for differentiating the product because some consumers believe that price denotes value and quality while others have purchase behaviors confined towards saving costs, especially for the low-income populations.

After successful segmentation of the markets, the launching of a new product will proceed with target marketing. In this regard, the approach entails focusing the various market efforts in regards to the different market segments (regarding their consumer behaviors) (Chernenko and Sunderam, 2012). Target marketing will help in meeting the needs and expectations of the customers by ensuring that the right pricing strategy is considered as well as using the most appropriate promotion efforts to meet the needs and expectations of the customers.

PART 2

For GAP year students, their purchase behaviors towards choosing the right destinations will be a constraint to their economic status. In this case, they will choose the most affordable destination and will go for the holiday packages that offer discounts thus the role of demography (economic status) in influencing the purchase behaviors (McQuarrie, 2014). From the consumer behavior perspective, their choice of the destination will depend on the discounted rates available in the package. Conversely, students will choose the most volatile and breathtaking holiday destinations. Mainly, they will want a chance to relieve the stress of studying and letting go off the steam through unique experiences that make them feel their youths. For instance, the students may head to the city during the break and consider some of the attraction sites located within cities. On the other hand, their preferences to choosing any destination will be informed by the learning experience they will get by purchasing the packages. Students are more inclined to choose destinations that present them with activities to learn cultures, enjoy some unique food, history, and practice. In this case, such expectations must be met from a marketing perspective (Chernenko and Sunderam, 2012). Besides, they will be more inclined to choose party destinations and as such, enjoy wild parties in the wilderness. Nonetheless, their economic status will confine them to choose low-cost destinations and avoid the very expensive destinations that they cannot afford. Therefore, the hotels and destinations will also be cheaper for students, and they will not go for the high-class hotels

Particular consideration is when the students are willing to take a flight abroad. However, given that they are generation Y that likes technology, they will go for the low-cost private airlines that have entertainment services onboard including music, TV sets and Wi-Fi but at low cost. Virgin Atlantic is such a private flight that will offer students the chance to experience and enjoy their flight at low and affordable prices.

A family going for a vacation will have to choose between saving costs and giving their children the best experience hence the role of socioeconomic factors in their purchase behaviors (Chernenko and Sunderam, 2012). For the destination choices, the family will choose open places where their children can meet with others and play. In this case, Disney Land or attractions will be the best fit for the family. A family with the financial ability will go for the most expensive vacation to give the children the unique feel and experience. However, a family's choice will be restricted to the needs of the children. Therefore, the destination must provide them with the opportunities for family activities like playing together, for instance, on a sandy beach. In this regard, their choice for consumption of the holiday packages or services will be confined to the social background. Having two children and with the couple, they will choose accommodation based on their financial capability. For instance, the family can consider choosing a double or single bed for the children based on their pocket. If they go for the most expensive tour package, it will be lead to booking for a single room with double beds to accommodate children and couple.

Averagely, a couple will choose a flight that will make children comfortable. There are low-cost options for those who may not afford the expensive flights. Therefore, for the couples with kids, their definition of complete experience will imply having engaged in family fun activities, getting the chance for the kids to play and enjoy themselves and meeting others while the couple can also get time to catch up with others. The preference of open places where the children can be watched and monitored while playing is one of the considerations for the purchase behaviors for the couples.

Finally, an elderly couple's choice for the destination will depend on several factors. For one, their income status will be an imperative since most are retired, thus the segmentation will consider the impact of income on their purchase behaviors (McQuarrie, 2014). Therefore, if they are in good and excellent retirement plans, they may afford expensive holiday vacations. Nevertheless, the holiday packages are also available for the low-income old couples or populations. The experience and vacation needs for elderly couples are standard since they need a quiet and serene place where they can enjoy nature away from the noises of the modern life. The activities during such experiences may include reading books, watching the sunset, enjoying nature, taking pictures of birds. In short, the ideal experience for an old couple is a place that allows for the enjoyment of nature, and a quiet place that offers the opportunity to recollect the past. In the event the old couple is boarding a flight, they will go for the quiet travel experiences, but this will also be subject to their economic status. Depending on their pockets and purchasing power, the old people can either go for economy or business class air travels. Hence, when marketing holiday destinations for the older couples, it is imperative to consider their behaviors as inclined towards liking quiet and serene places.