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Management Consulting/sir please help my assignment for MARKETING MANAGEMENT

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Question
1.   Do you think the market segmentation criteria bring market opportunities to product marketer? If so, identify them. Also identify some leading brands currently positioned for women in these segments. Can you think of few for your own innovative product concepts targeted at these segments?

Answer
Do you think the market segmentation criteria bring market opportunities to product marketer? If so, identify them. Also identify some leading brands currently positioned for women in these segments. Can you think of few for your own innovative product concepts targeted at these segments?

Market Segmentation
The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments.

Category of Need
The first thing you can establish is a category of need that your offering satisfies. The following classifications may help.

For businesses:
•   Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category of offering will be made by the prospect's top level executive management.
•   Operations - your offering affects the general operating policies and procedures. Examples might be, an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospect's top level operations management.
•   Functional - your offering deals with a specific function within the enterprise such as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you must recognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospect's functional management.
For the individual consumer:
•   Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamond ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keep time just as well).
•   Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.
Segmentation of Needs
Then you should establish what the need is and who is most likely to experience that need. Your segmentation will be determined by a match between the benefits offered by your offering and the need of the prospect. Some "need" categories for segmentation include:
Reduction in expenses
Prospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.
Improved cash flow
Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.
Improved productivity
Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families.
Improved manufacturing quality
Prospects might be businesses with complex, multi-discipline manufacturing processes.
Improved service delivery
Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.
Improved employee working conditions/benefits
Prospects might be businesses where potential employees are in short supply.
Improvement in market share/competitive position
Prospects might be new entrants to a competitive market.
Need for education
Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.
Involvement with social trends
Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc.
Specific - relating to product/service characteristics
Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.
Factors that segment prospects
Having determined the more general segmentation characteristics you can proceed to a more detailed analysis of the market. There are literally thousands of ways to segment a market, but the following are some of the more typical segmentation categories.

For businesses:
Industry by SIC code
This is especially beneficial for vertical market offerings.
Size - revenues, # employees, # locations
In general if your offering is highly sophisticated, requires significant resources or provides greater value based on volume, then the target should be the larger enterprises.
Job position/responsibility
Examples of offerings might be planning software for managers or cleaning agents for maintenance managers.
Climate
Examples of offerings might be dehumidifiers in areas near the ocean or snow plows in northern areas.
Time related factors
Some services in this category are vacation related industries in summer and tax planners in the spring.
Language
An example of a language specific service is a Spanish TV channel.
Status in the industry
You might want to target businesses that are the technology leader or revenue leader or employee satisfaction leader, etc.
Accessibility
To minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects.
Future potential
A good example is how Apple Computer supplied products to schools at all levels to condition students graduating into the marketplace.
Ability to make a quick purchase decision
Targeting individual purchasers versus business committees can significantly reduce marketing expense and increase the probability of a quick close.
Access (or lack of access) to competitive offerings
Cable TV business's significant investment in their service delivery system has allowed a near monopoly for some time. IBM's service reputation insured minimal competition during the mainframe days.
Need for customization
Offerings such as police cars, busses for municipalities and specialized computer systems fall into this category.
Product or service application to a business function
Examples are data processing, accounting, human resources and plant maintenance.
For Individual Consumers:
Physical Size
Offerings might be big men's clothing, golf clubs for shorter players, etc.
Creation of or response to a fad
Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.
Geographic location
Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc.
Time related factors
You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.
Demographics/culture/religion
Ethnic products would fall into this category.
Gender
Product examples are scarves for women, ties for men, etc.
Age
Product examples are toys for children, jewelry for women, etc.
Social status
This could include country club memberships, philanthropic contributions, etc.
Education
Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling.
Avocation
This could include products for hunting, fishing, golf, art work, knitting, etc.
Special Interests
You could target cat lovers, science fiction readers, jazz music collectors, etc.
Accessibility
Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc.
Access (or lack of access) to competitive offerings
Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc.
Need for specific information
Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking.
Need for customization
Product/service examples are home decoration, fashion wear, personal portraits, etc.
Need for quality, durability, etc.
Product examples are mountain climbing gear, carpenter's tools, etc.
Degree of a product/service ingredient
Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others.
Purchase decision influencers
Once you have isolated a specific segment of the market on which to focus, then you can consider more subtle influences on the purchase decision. Some of these are:
Preference for channel of distribution
Many prospects prefer to buy through a specific distributor or wholesaler. For individuals this may be due to subtle, as well as, economic reasons. For example, an individual prospect may immediately think of Wal-Mart or Home Depot when considering an offering like yours. A business often has a preference so they can have a single communication point for all purchases. This also often results in lower purchase prices.
Number of decision makers
When selling to consumers or businesses, the more individuals or groups involved in the purchase decision, the more difficult the sale. Marketing costs for selling bread can stay low because one person normally makes the purchase decision. Car purchases are more complex because the purchase decision normally involves a husband and wife. Business sales to committees often require months to achieve a decision.
Financial strength of the prospect
Less affluent prospects may desire time payments versus a cash purchase and Chevrolets instead of Cadillacs.
Quantity/volume requirements
Restaurants will want large jars of pickles while individuals want small jars. Businesses use large amounts of electricity at predictable times.
Ability to use the offering
Trying to sell to a prospect who lacks either the knowledge or resources to properly benefit from your offering will result in a 'no sale' situation or an unhappy customer. The prospect should have knowledge and resources such as time, equipment, facilities, personnel and complementary products/services.
Commitment required
If the offering requires a high commitment in terms of time, resources or money by the customer then the target should be prospects who 'really need' the offering rather than prospects who get some, but not a lot, of benefits.
Brand awareness/users
Examples are prospects who ask for IBM compatible PC's or Pitney Bowes mailing machines or Winnebago R.V.s
Attitude toward a personality or enterprise
Reputation helps sell AT&T long distance service, IBM computers, Michael Jordan tennis shoes, etc.
Attitude toward price versus value
For example, purchasers of collectors items aren't price sensitive while purchasers of commodity items are price sensitive.
Experience with other products/services your enterprise has offered
You are looking for a reaction like "I liked your first product so I'll try your second."
Prospect bias
Examples are, 'Buy USA', I want a car with a 'solid' feel, fast cars, sweet wines, large print playing cards, etc.
Affiliation with other organizations
Such as the U.S. Chamber of Commerce, AMA, IEEE, doctors, attorneys, pastors, franchisors, entrepreneurs, etc.
After sale support expectations
It is often beneficial to target prospects who have enough expertise that they will require a minimum of after sale support.
Seller Characteristics that can influence purchase decision:
Another form of influence is how the prospect perceives your offering and/or enterprise. If you can determine the characteristics your prospects most value in an enterprise they purchase from, you can identify those your organization possesses and promote them to the prospect.
Unique employee skills, knowledge
Extensive experience with a specific market segment or field of scientific inquiry can be a powerful promotional tool. For example if an enterprise could sat, "Our scientists knows more about corn silk genetic structures than anyone in the world" they would have a strong sales statement.
Special relationships with distribution channels
Product or service accessibility is a critical factor in sales success. If an enterprise could say, "Due to a unique relationship, the XYZ video stores give us more shelf space than any competitor" prospects will likely respond positively.
Customer service capabilities
Prospects like to know that they can depend on post sale support from the product or service provider. A statement like, "We have more service outlets in New Hampshire than any competitor" will help secure sales.
Unique product forms
Credible uniqueness such as, "Our product is the only one that offers dynamic digi-whirling" is appealing to the market.
Manufacturing expertise
The market is always interested in purchasing from the "best". If an enterprise can confidently state, "We are the only enterprise that can manufacture molecular engineered widgets", they have created an image of being the "best".
Longevity
Reliability is important. A statement like, "We have been in business for 50 years, so you can count on us to be there when you need us" is usually a strong selling point.
Purchase Decision Makers
Finally, a point to consider is, given the characteristics of your offering, what type of decision maker will most likely be interested in purchasing from you. It may be beneficial to rank your prospects based on the following classifications. While you may not be able to make this classification of the prospect prior to the first contact, if your sales personnel are sensitive to these characteristics it can strongly influence your sales strategy.

Ultra Conservative - don't rock the boat, whatever they purchase must be consistent with their current way of doing things.
•   They are most likely interested in products/services that are improvements to existing offerings rather than something new.
•   Once established as a customer they are seldom inclined to review alternatives.
•   Very negative to technically complex offerings or offerings requiring extensive user education.
•   Cost effective offerings are only of interest if they don't disturb the status quo.
•   They are likely to react positively to any volume purchasing opportunities.
Conservatives - are willing to change, but only in small increments and only in a very cost effective manner.
•   Will consider new products/services but only if related concept has been proven to be effective. More likely to purchase improvements to existing offerings.
•   Will probably want to review competitive offerings, but will gravitate to best known offering with lowest risk decision.
•   Negative to neutral when considering technically complex offerings or offerings requiring extensive user education.
•   Strongly influenced by cost effective offerings and/or 'best price' opportunities
Liberals - regularly looking for new solutions, willing to make change (even major change) if the benefit can be shown.
•   Will usually consider new products/services even if the related concept has not yet been proven to be effective, but only if the potential benefits can be specified and understood.
•   Wants offerings that make effective use of technology, but is not interested in offerings just because they use a certain technology.
•   Will always want to review competitive offerings, but will usually choose the one offering the greatest benefit, even if there is some risk involved.
•   Neutral to positive when considering technically complex offerings or offerings requiring extensive user education.
•   Usually concerned with keeping employees informed and educated, so will often consider educational offerings.
•   Strongly influenced by offerings that most closely deliver the 'end results' desired, even if they are not the most cost effective.
•   Often are on social trend bandwagons so react positively to offerings that address these needs.
Technical Liberals - enamored with the benefits provided by high tech solutions and any purchase decision will be biased by the technical content of the offering.
•   Usually consider new products/services even if the related concept has not yet been proven to be effective.
•   Often consider just because they use a certain technology.
•   Will always want to review competitive offerings, but will usually choose the one offering the most hi-tech features, even if there is some risk involved.
•   Consider themselves technically competent and will expect leading edge use of technology.
•   Positive to fanatic when considering technically complex offerings even when requiring extensive user education.
•   Conversion costs usually not a major concern if technical benefits are there.
•   Not particularly concerned with keeping employees informed and educated, so educational offerings are not of great interest.
•   Strongly influenced by offerings that most closely deliver the 'end results' desired, even if they are not the most cost effective.
Self Helpers - consistently defines/designs solutions to their problems, likes to acquire tools that help in the innovation process.
•   Will usually consider new products/services, but the related concept must have been proven to be effective.
•   Often consider just because they use a certain technology that is relevant to the development program they have underway.
•   Will always want to review competitive offerings, but will usually choose the one offering the most effective 'do it yourself' features.
•   Usually consider themselves technically competent and will expect very effective use of proven technology.
•   Not especially inclined toward technically complex offerings, would rather have user friendly, but thought provoking, offerings.
•   Conversion costs usually not a major concern if offering promises potential for innovation.
•   Usually concerned with keeping employees informed and educated, so educational offerings are of interest.
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EXAMPLE
FMCG   PRODUCT   ------Soft Drinks
SEGMENTATION  VARIABLES.

1.Demographic variables
*age
*gender Male and Female
*Education Primary, High School, Secondary, College, Universities.
*income
*occupation
--------------------------------------------------
2. socioeconomic status
*REGIONAL  FOCUS   
*language
-----------------------------------------
3. Geographic variables
*region of the  country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc.
*metro/ rural  : Metropolitan Cities, small cities, towns.
*Density of Area Urban, Semi-urban, Rural.
---------------------------------
4.Psychographic variables
*personality
*life style
*value
*attitude
--------------------------
5.Behavioural variables
*benefit sought
*product usage rate
*brand loyalty
*product end use
*readiness-to-buy stage
*decision making unit
*profitability
*income status
=======================================
MARKET  SEGMENT  - young  people.
TARGET - age  group  [ 12 ---35]
POSITIONING - lifestyle  entertainment.
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NANO  '' SMALL  CAR''

IN   UNIVERSAL  TERM, the nano   is   a   small  car.

IN  INDIAN  TERM,
-nano  is  specifically  designed  for the  indian  market.
-it is designed  for the  indian  market
-it is  designed  ''as a  value  for  money''
-it  is  designed  with  india  made parts.

THE  MARKET  SEGMENTATION  VARIABLES   CONSIDERED

FOR  THE  BUSINESSES.

-reduction  in capital  expenses.
-reduction in  operation   expenses.
-reduction in  maintenance  expenses.

-improvement in the   cash flow.
-improvement  in  the  working  conditions  for  field  employees.
-improvement  in   the   productivity  of  field employees.

-improvement  in   the  business  market  coverage
-improvement  in  the  business  results.
----------------------------------------------------
FOR  THE  INDIVIDUALS


1.Demographic variables
*age
*gender Male and Female
*sexual orientation
*family size
*family life cycle
*Education Primary, High School, Secondary, College, Universities.
*income
*occupation
*education
--------------------------------------------------
2. socioeconomic status
*religion
*REGIONAL  FOCUS   
*language
-----------------------------------------
3. Geographic variables
*region of the  country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc.
*metro/ rural  : Metropolitan Cities, small cities, towns.
*Density of Area Urban, Semi-urban, Rural.
*climate Hot, Cold, Humid, Rainy.
---------------------------------
4.Psychographic variables
*personality
*life style
*value
*attitude
--------------------------
5.Behavioural variables
*benefit sought
*product usage rate
*brand loyalty
*product end use
*readiness-to-buy stage
*decision making unit
*profitability
*income status


THERE  ARE  NUMEROUS   EXAMPLES---here are  few.

1.CHANEL  PERFUME.
*market  segement -----female/ age 18--35
*positioning -----upmarket/ lifestyle  product
-------------------------------------------------------
2.SAMSONITE  SUITCASES.
*market  segment ---business executives/ rich  with large income.
*positioning -----upmarket / busy lifestyle/handy  in use.
----------------------------------------------------------------
3.LUX TOILET  SOAPS
*market  segment----- middle  class.
*positioning -----affordable / beautiful  as  film  stars.
----------------------------------------------------------------------
4.CITIBANK   PLATINUM  CREDIT  CARD.
*market  segment -----wealthy/ upmarket  executives.
*positioning------ peace  of  mind   for  all  situations.
------------------------------------------------------------------
5.TOSHIBA  LAPTOPS
*market  segment -----business  oriented  people.
*positioning --latest  technology/ multipurpose  use.
==========================================
segmentation variables you will consider to segment the market for a 150 cc premium motorcycle.

150  cc  BIKES
Quick Facts
Engine: 134cc Air-cooled, single
Power: 13.5PS@ 9,000rpm
Torque: 11Nm @ 7,500rpm
Transmission: 5-speed manual,
DIMENSIONS
Wheelbase: 1,325mm
LxWxH: NA
Weight: 122kg
Performance
0-60 km/h: 4.7seconds
Top speed: 112km/h
Fuel efficiency (overall): 56.5kmpl
Variants
Bajaj Pulsar 135 LS (Ex-showroom, New Delhi): 51,000
Cheers:
1. High-revving engine with oodles of torque and best-in-class power-to-weight ratio
2. Extremely well-done styling on this baby Pulsar. It is light, fast and a lot of fun!
========================
150  cc  FOR  THE  INDIVIDUALS

1.Demographic variables
*age
*gender Male and Female
*sexual orientation
*family size
*family life cycle
*Education Primary, High School, Secondary, College, Universities.
*income
*occupation
*education
--------------------------------------------------
2. socioeconomic status
*religion
*REGIONAL  FOCUS   
*language
-----------------------------------------
3. Geographic variables
*region of the  country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc.
*metro/ rural  : Metropolitan Cities, small cities, towns.
*Density of Area Urban, Semi-urban, Rural.
*climate Hot, Cold, Humid, Rainy.
---------------------------------
4.Psychographic variables
*personality
*life style
*value
*attitude
--------------------------
5.Behavioural variables
*benefit sought
*product usage rate
*brand loyalty
*product end use
*readiness-to-buy stage
*decision making unit
*profitability
*income status
=======================================
Why a 150 cc motorcycle?
Almost all of the motorcycles in entry level segment have engine capacity of 100 or 125cc. But having a motorcycle with engine capacity of 150cc in the entry level segment will make a big difference. It is a segment where motorcycle is used more for utility purpose rather than commuter purpose.
This segment demands a robust motorcycle that can carry a heavy load and can run on rough roads, so the original idea is to have a 150cc motorcycle which has minimum 50% more torque than 100cc motorcycle and only 10% less fuel efficiency than 100cc motorcycle.  

“What I want is a VEHICLE   on a two-wheeler that can take two or three riders and the extra load of products on it, or simply a 150-cc.”
######################################



SEGMENTATION  LEADS  TO  SALES  OPPORTUNITIES

Benefits of market segmentation
There are a many benefits that can be resulting from segmenting a market:
1.   Segmentation is a useful approach to marketing for the smaller firms. It allows target markets to be matched to company competencies and makes it more achievable for the smaller firms to create a defensible niche in the market.
2.   It assists recognizing gaps in the market that are not served or under-served. These can provide areas for new product development or extension of the existing product or service range.
3.   In mature or declining markets it may be possible to identify particular segments that are still in growth. Focusing on growth segments when the overall market is declining is a major strategy in the latter stages of the product life cycle.
4.   Segmentation allows marketers to match a product or service to the needs of the target market.
Also market segmentation allows:
1.   Allocate company resources to the segments potentially more profitable;
2.   Fine-tune a range of products to demand rather than occupy a position of strength in some areas and ignore or minimize other areas of potential profitability important;
3.   To give the company the opportunity to detect early signs of a fundamental evolution of the target market, enabling it to adjust to time the market;
4.   Establish more precisely the main advertising and quantify the segments covered by each of these routes;
5.   Select media advertising more responsive to the needs and allocate more adequately the total budget between them;
6.   Determine the periods that are most conducive to advertising campaigns, ie those where the target is most receptive.
The segmentation is neither more nor less than a year classification of consumers dialing a given market. The interest of segmentation is that involves a significant number of people depending on the characteristics that unite them and set them apart from other groups, these characteristics may be demographic, of course, but the most powerful and interesting are those attribute to the features of the lifestyle of the person, and its values (psychographic segmentation).

Why there to find new segments?
Companies are constantly looking for new segments, to develop marketing approaches even more powerful, more adapted to join a convincing potential buyers of the product / service.

They not new consumers But there is a new way to define one or more groups of people, to find what unites them, namely the values, lifestyles sought, in fact what is important for all members of this group of people. Companies are constantly looking for a new segment that portrayed a marked and important change in these values and lifestyle pursued (or claimed) by a growing number of people. That was the whole point of the so-called "emerging segment" because the people who compose it may present needs and aspirations that are not well met by supply of products / services.

Successful segmentation requires the following.
1.   homogeneity within the segment
2.   heterogeneity between segments
3.   segments are measurable and identifiable
4.   segments are accessible and actionable
5.   segment is large enough to be profitable
These criteria can be summarized by the word DAMAS:
1.   D Differential: it must respond differently to a different marketing mix
2.   A Actionable: you must have a product for this segment to be accured
3.   M Measurable: size and purchasing power can be measured
4.   A Accessible: it must be possible to reach it efficiently
5.   S Substantial: the segment has to be large and profitable enough
Variables Used for Segmentation
1. Geographic variables
•   region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
•   country size/country size : Metropolitan Cities, small cities, towns.
•   Density of Area Urban, Semi-urban, Rural.
•   climate Hot, Cold, Humid, Rainy.
2. Demographic variables
•   age
•   gender Male and Female
•   family size
•   family life cycle
•   education Primary, High School, Secondary, College, Universities.
•   income
•   occupation
•   socioeconomic status
•   religion
•   nationality/race (ethnic marketing)
•   language
3. Psychographic variables
•   personality
•   life style
•   value
•   attitude
4. Behavioral variables
•   benefit sought
•   product usage rate
•   brand loyalty
•   product end use
•   readiness-to-buy stage
•   decision making unit
•   profitability
•   income status
When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation. When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster analysis. Other techniques used to identify segments are algorithms such as CHAID and regresion-based CHAID and discriminant analysis.




To compete successfully in today’s volatile and competitive business markets, mass marketing is no longer a viable option for most companies. Marketers must attack niche markets that exhibit unique needs & wants. Market segmentation is the process of partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behavior.

Market segmentation is the foundation on which all other marketing actions can be based. It requires a major commitment by management to customer-oriented planning, research, implementation & control.
The overall objective of using a market segmentation strategy is to improve your company’s competitive position and better serve the needs of your customers. Some specific objectives may include increased sales, improved market share and enhanced image.
There are four major benefits of market segmentation analysis and strategy:

Designing responsive products to meet the needs of the marketplace

Developing effective and cost-efficient promotional tactics & campaigns

Gauging your company’s market position — how your company is perceived by its customers and potential customers relative to the competition

Fine-tuning current marketing strategies
  
A three-step process is used to develop a market segmentation strategy:

Segment Identification — determining a given number of homogeneous market segments based on selected segmentation variables and criteria. Segments should be customer-focused, a justifiable size, distinguishable, accessible, accountable & profitable.

Market Selection — selecting one or more groups to target for marketing activity. It is impossible to pursue every market opportunity so you must make strategic choices based on customer needs, competitive opportunities, corporate objectives, and your firm’s financial, technical & marketing resources.

Positioning — carving out a market niche for your firm. This may be accomplished by searching out unique marketing advantages, seeking new market segments that competitors are not cultivating, or developing new approaches to old problems. Your positioning should be based on a real (e.g., lower cost, superior quality) or intangible (e.g., company reputation) competitive advantage.


Benefits of segmentation
Segmenting your customers into groups according to their needs has a number of advantages. It can help you to:
•   identify your most and least profitable customers
•   focus your marketing on the customers who will be most likely to buy your products or services
•   avoid the markets which will not be profitable for you
•   build loyal relationships with customers by developing and offering them the products and services they want
•   improve customer service
•   get ahead of the competition in specific parts of the market
•   use your resources wisely
•   identify new products
•   improve products to meet customer needs
•   increase profit potential by keeping costs down, and in some areas enabling you to charge a higher price for your products and services
•   group your customers by factors such as geographical location, size and type of organisation, type and lifestyle of consumers, attitudes and behaviour

This is where market segmentation comes in.
Divide and Conquer
Market segmentation focuses on that subset of prospects that have the greatest potential of becoming customers and generating revenue.
Companies who segment their markets match their strengths and offerings to the groups of customers most likely to respond to them.
•  Differentiate your products and services to meet your customer needs and desires.
•  Design or redesign new products and services to meet your market needs.
•  Find hidden needs and make improvements to your existing products.
•  By selecting and focusing on the most responsive segments to the exclusion of others, marketing can be created to more effectively fit your consumers. Finding, understanding and focusing on the needs of your best customers can make you a market leader.
•  Target your marketing mix to the customers most likely to want your products or services
•  Identify behaviors and buying motives for your products.
•  Identify your most and least profitable customers.
•  Help you avoid unprofitable markets.
•  Increase brand loyalty and decrease brand switching.
Learning more about your competitors makes you more effective
•  Improve your competitive positioning to be more accurate and better differentiate you from the competition.
•  Reduce competition by competing in a more narrowly defined market and establishing a niche. Market segmentation is a proven way of improving profitability. By focusing on individualized sub groups, you're better able to meet their needs and gain higher market share and profits.
•  Refine your pricing to maximize revenue.
•  Find markets where you can increase your price.
•  Optimize your marketing resources and get the most impact for your investment
•  Focus and match your activities to things you can do effectively and profitably When segmentation is done right, you get the highest return for your marketing expenditure.

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18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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