StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Customer Analysis and Market Segmentation - Essay Example

Cite this document
Summary
The business world today has become diverse. Many people are able to open up their own businesses. The writer of the essay "The Customer Analysis and Market Segmentation" discusses four decisions that a marketer of industrial grinding machinery might make based on the potential estimates…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
The Customer Analysis and Market Segmentation
Read Text Preview

Extract of sample "The Customer Analysis and Market Segmentation"

The Customer Analysis and Market Segmentation Marketing 1) Given that absolute market potential almost always exceeds actual industry sales, why do marketers bother to make potential estimates? Discuss 4 decisions that a marketer of industrial grinding machinery might make based on such potential estimates The business world today has become diverse, and with increased availability of technology, many people are able to open up their own businesses. Others also partner to form companies or large organizations. The result of all this innovation is that, competition in the market is increased and thus, the businesses have to market their products to gain customer loyalty. To ensure that they gain the desired results, marketers have to make predictions of the outcome of their marketing (Davenport & Harris, 2009). Study shows that producers need to create commodities on high demand thus, the need to make potential estimates. While marketing industrial grinding machinery, a marketer will have to make four decisions, which include; the pricing decisions, the product decisions, the placing decisions and the promotion decisions. Under the product decisions, the marketer will first have to decide on the quality, brand name and functionality of the machinery. Depending on the potential estimates made and the potential customers being targeted, the standards set can be high or low. Marketers need to consider this because for instance; some brand names will appeal to some customers while to others they may not make any sense at all. The pricing decisions are highly critical since they determine the profit making of the organization. The marketer should ensure that the price set is in accordance with the potential estimates made. Prices should not be exceptionally high since this may cause customers to shift to the competitors. In making this decision, marketers should evaluate the prices of other grinders in the market. The marketer also has to decide whether discounts will be issued on the machinery or not (Pride & Ferrell, 2011). Under the placing decisions, the marketer has to decide on the distribution of the grinding machinery. Depending on the potential estimates made concerning the market available, the marketer has to decide which places to distribute the product and which to be left idle. Transportation decisions also have to be considered, and the number of distribution channels. However, most distribution centers should be placed where a wide potential market has been identified. Promotion decisions include the various ways in which the marketer can market the product. Different marketers will use different strategies of marketing a product depending on its type. For instance, marketing grinding machinery would need a method such as personal selling to ensure that the customer is totally made aware of the product and its functioning. However, other methods of marketing such as advertising might leave some information about the product. 2) What is the relationship among market segmentation, target marketing, and positioning? What will happen to a company’s target marketing and positioning efforts if markets are incorrectly or not effectively/insightfully segmented? Market segmentation refers to the division of the customers of a product into different groups. Customers will mainly be divided depending on their needs, their characteristics and their financial ability. While segmenting the market, the marketer also has to consider the organization’s ability to satisfy all the segments and the competitive advantage of each segment. Other factors that have to be considered in evaluating the segmentation includes; the costs of the product and the sales estimates (Pride & Ferrell, 2011). Once the business has divided its market into different segments, it then evaluates the potential gains of each market and then chooses which to concentrate on. This process is referred to as target marketing. The market chosen is then referred to as the target market. This is usually the market that has a large number of buyers and a high possibility of achieving the set goals and objectives (Pride & Ferrell, 2011). In choosing the target market, the company should not only consider the current benefits obtained but also the future effects. After the target market has been chosen, the organization then has to define and shape the way that the product is seen or appears in the minds of consumers. This is referred to as market positioning. It mainly involves differentiating of products to make them desirable to customers and ensure that customers have a clear perceptive concerning the products. This will usually give rise to consumer’s loyalty and thus increased sales. Poor market segmentation usually leads to targeting of the wrong market. The organization will also be making unusually low sales since the consumers being pursued are not interested in the product being sold. Taking for instance, choosing to sell electronics to a community where use of electricity is prohibited, would just lead to losses. Ineffective market segmentation also leads to the inability of positioning. The organization will not be able create customer loyalty since the customers have not even been acquired. 3) Discuss your organization’s primary customer segments and their differences. Some questions that may guide you in your posting: How does your organization define and identify its market segments? What positioning strategy does your organization use with those segments? How do other Main Topics discussed this week apply to your organization? Different criterions can be used in segmenting of markets depending on the potential estimates made by the marketer. In my organization for instance, the markets are segmented based on a variety of factors such as; the economy of the customers, the cultural factors, the geographic factors and the political factors. Under the economic factors, the organization mainly considers the financial ability of customers in order to segment them. On the other hand, the cultural factors are used in segmentation by the organization dividing the consumers on the basis of their cultures (Davenport & Harris, 2009). Different individuals in different geographic regions also demand different products and thus the basis of segmentations. The organization uses the positioning strategy of high product class compared to that of the competitors. It ensures that its products are of a high quality and that they have unique characteristics and attributes. With my organization being large and diverse, it applies the four marketing decisions to ensure that it obtains a wide market for its products. This is also to ensure that the market selected is the right one. The organization is thus able to monitor the consumer needs and behaviour over a large area. The organization has also managed to create a strong, competitive position for itself through the right market segmentation and positioning. References Davenport, T. H., & Harris, J. G. (2009). What people Want and How to predict it. MIT Sloan Management, 50(2), RR. Pride, W. M., & Ferrell, O. C. (2011). Marketing (16th ed.). Mason, USA: Cengage Learning. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Customer Analysis and Market Segmentation Essay”, n.d.)
Retrieved from https://studentshare.org/marketing/1456910-customer-analysis
(The Customer Analysis and Market Segmentation Essay)
https://studentshare.org/marketing/1456910-customer-analysis.
“The Customer Analysis and Market Segmentation Essay”, n.d. https://studentshare.org/marketing/1456910-customer-analysis.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Customer Analysis and Market Segmentation

Market Segmentation and Domino Effect

hellip; market segmentation is a strategy used by the marketers through which they divide large, diverse markets in to small chunks in order to reach them more efficiently and effectively. The strategy of marketing, for any product, starts on the basis of domino effect which id acquired from the study of industry and competitors.... market segmentation for McDonald's new burgerThe company which practice the strategy of market segmentation is discouraging broad segmentations sections because minor segmentation helps in focusing and better understanding of the consumers....
10 Pages (2500 words) Essay

The literature on market segmentation and its various aspects

The researcher of this report is intended to review the literature on market segmentation and its various aspects.... In the field of marketing, market segmentation is the process of dividing the market into similar groups such that individuals/businesses within each group share common characteristics.... market segmentation is a marketing approach that encompasses the identification of different groups of customers with different needs or responses to marketing activity....
14 Pages (3500 words) Essay

Analysis of Techniques Market Segmentation

This term paper "Analysis of Techniques market segmentation" discusses a common practice to divide markets into different identifiable segments.... This comprehensively calls for market segmentation and results in two way satisfaction of both customers and the stakeholder.... This term paper analyses the segmentation market which is dependant on macro and micro environmental factors.... hellip; To understand markets, we begin with understanding what a market means in this context....
8 Pages (2000 words) Term Paper

International Marketing -Situational analysis, Marks and Spencer FRANCE

The map includes The Customer Analysis and Market Segmentation.... The map includes the customer M&S France has reestablished business after a long hiatus.... to have revenues drop to 825 million (BusinessWeek, 2006), Kookai is losing market share to U.... to have revenues drop to 825 million (BusinessWeek, 2006), Kookai is losing market share to U.... In cities such as Lyon and Paris, the concentration of competition within the shopping districts has provided M&S with exposure to the consumer at the expense of a high degree of market competition....
1 Pages (250 words) Essay

Segmentation and Market Target Analysis

The paper discusses how Apple's market segmentation is achieved against the advantages of market segmentation.... The The essay discusses Apple's criteria for market segmentation as well as market segmentation mediums.... The main approach that the company uses is market segmentation.... The management's market segmentation is based on concepts of economics while dividing organizations and people into categories with a derivative of similar products....
7 Pages (1750 words) Essay

Segmentation and Targeting in Grocery Retail

The culled data has greatest impact and relevance on the biographical analysis, segmentation, and targeting not just of its existing customer's clients but also of its potential customers as well.... It is anchored on the analysis of the available data metrics for grocery retailers and how they could be exploited to provide the profile and behavioral data of its customers....
13 Pages (3250 words) Essay

Understanding of Market Segmentation

This work called "Understanding of market segmentation" describes marketing segmentation, its concepts, bases of segmentation.... eb definition of the term market segmentation is the “aggregating of prospective buyers into groups that have common needs and will respond similarly to a marketing action.... rdquo; market segmentation was first described in the middle of the 1950s by Wendell.... mith, an American professor who said: “market segmentation is to divide a market into smaller groups of buyers with distinct needs, characteristics” (Shi Lin, 2009)....
7 Pages (1750 words) Report

Market Segmentation of McDonalds Corporation

The author of the current paper "market segmentation of McDonald's Corporation" will explain why segmentation is the idea of targeting the homogeneous components of a heterogeneous market rather than the market as a whole.... nbsp;The paper explains the importance of market segmentation.... nbsp;market segmentation is dividing the market into meaningful, relatively similar and identifiable segments or group.... With the segmentation of the market, the marketer can distinguish which marketing mix will be more appealing for a particular group of consumers....
12 Pages (3000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us