The Recommended Marketing Objectives of the Company - Assignment Example

Feasibility study Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Feasibility study Question 6: The recommended marketing objectives of the company According to the Business Dictionary (2012, 1), marketing objectives can be perceived as a set of goals which are fixed by a particular business when engaging in the efforts of promoting its products or services to the prospective consumers which ought to be accomplished within a specific timeframe. These objectives might include but not limited to offering concrete information in regard to the product characteristics to the customers, enhancing the level of awareness among the target segment of customers or minimizing the tendency of the consumers resisting to purchase a certain product. The primary objectives of the coffee shop targeting to enter the Malaysian market are outlined in the subsequent analysis. Achieving specific financial goals- In every new venture, generating revenues is a core objective of the business is at all it has to achieve its viability both in the short and long term. At first, the financial targets of this coffee shop will be evaluated weekly and monthly and after some time, they will be assessed in an annual basis. This marketing objective will particularly be important in the efforts to meet the daily costs of running the business as well fulfilling the expectations of the shareholders in the new business venture in Malaysia. Attaining customer satisfaction and loyalty- Consumer satisfaction has for a long time been considered as having enormous impacts on the future competitive advantage of a business (Sadeghi & Farokhian, 2011, 39). Some of the factors influencing consumer satisfaction are outlined in the subsequent diagram. Figure 1.0: Factors that affect consumer satisfaction Source: Singh (2006, 2). Generating a constant traffic of consumers: This marketing objective is particularly fundamental if at all the new coffee shop in Malaysia is to capture a favorable niche in the local market as well as gradually expand its market share in this domestic market. In this regard, attaining a constant traffic of consumers will be attained through extensive promotions, offering quality services, discounting among other strategies that will facilitate total fulfillment of the consumers’ needs. Establishing the brand of the coffee shop: This will be through establishing a robust brand image and brand salience in the market for the coffee shop. Both of these have for long been considered as being central in molding the consumer relationship by any business which emanates from the trust that has been established overtime (Kalakumari & Sekar, 2012, 188). The marketing strategy of establishing a formidable brand image and brand salience will be key in influencing the short and long-term performance despite the dynamics in the market, a fact which is supported by Park et. al, (1986, 155). All the above are some of the marketing objectives that will characterize the undertakings of this new coffee shop while entering the Malaysian market. The following section will focus on the segmentation profile of this coffee shop’s target markets and consumers in regard to different elements. Question 7 A recommended segmentation profile of the company’s target markets and customers according to geographics, demographics, psychographics and benefits (indicate breakdown by % where possible) Marketers have for a long time used marketing segmentation in their marketing strategies. This is based on the fact that there are no two segments in the market which exhibit absolute similarity in terms of needs. Thus, each segment in the market is expected demonstrate different responses to similar marketing mix program (Mawoli, 2012, 6). This, the variables of demographics, psychographics and geographics will be used in the market segmentation. This is analyzed below. Demographics The target market of this coffee shop will be segmented in terms of age, gender as well as social class. In terms of age, the segmentation will be done based on three age cohorts. An age cohort can be perceived as consisting of people of the same age group and who have similar experiences (Howell, 2011, p. 21). These age cohorts can be divided in terms of the old (baby boomers), the middle aged (generation x) and the young people (generation y). The members of these particular cohorts exhibit differences in beliefs about coffee consumption as well as the fact that they are bound to exhibit differences in terms of modes of advertising channels, for instance, the generation x and y are bound to consume advertisements in the social media more than the baby boomers. In regard to the consumption of the products offered at the coffee shop, majority of the prospective consumers are bound to be from the middle class, followed by the young people and lastly the old. In this regard, more prominence in the marketing process will be according to this particular order. The middle aged cohort will constitute 50% of the target market, the young and the old aged cohorts will constitute 35% and 15% respectively of the target market. Thus, much focus will be towards the marketing channels which are prominent among the first two cohorts, for instance, the social networks, blogs, You tube among other internet based advertisements, and limited focus will be towards radios and some forms of print media which have low consumption by the chief target cohorts. On the other hand, segmentation in terms of gender has been perceived as being integral in differentiating the needs and wants between men and women which is founded on the fact that men and women have diversity in attitudes towards certain products, for instance, magazines, cosmetics (Larsen, 2010, 8). There will be slight variations in the market segmentation based on gender. Nonetheless, the male members of the population have been cited as the chief consumers of coffee based on the relationship between coffee consumption and the prevalence of Parkinson’s diseases. Ascherio, et. al. (2004, 977) cited that the consumption of caffeine is often associated with a minimized risk of Parkinson’s disease in men as opposed to women. Against this backdrop, men will constitute 55% of the target market while women will constitute 40% of the target market. This will to some extent influence the modes of packaging the coffee based on the specific gender which is being targeted. The last categorization of the market segmentation in terms of demographics will be in terms of social class. The social classes in this segmentation will be in terms of the high income, middle income and low income members of the population. This is based not only on the affordability factor of coffee among these social classes but also the linkage between caffeine consumption and lifestyle diseases. According to Shafique et. al (2012, 1), heightened caffeine consumption has been linked to the reduction of risk to diabetes mellitus, altering sex hormone as well as affecting insulin like growth factors. Based on the fact that the high and middle income social classes are bound to have the willingness and the capacity to pay for the products from the coffee shop as well as being more vulnerable to lifestyle diseases like diabetes, these social groups are bound to exhibit higher consumption of coffee as opposed to the low income social class. In addition, due to the fact that the middle income social class is greater in the target population in Malaysia, much of the marketing efforts will be geared to towards this group. Against this background, the middle income social class will constitute 45% of the target population while the high income and low income social classes will constitute 35% and 20% of the target market respectively. All the above demographic elements in the Malaysian population will thus influence the marketing strategy of the new coffee shop in the country which will be key in determining the feasibility of this business as well as the short-term and long-term sustainability in meeting the marketing objectives outlined in the preceding segment. Geographics Geographic segmentation in marketing is primarily concerned with dividing the consumers into different portions based on the geographic areas where they inhabit, for instance, regions, countries, neighborhoods or cities (Larsen, 2010, 9).In this regard, a company is bound to target one or more areas and it is fundamental for it to be aware of the rudimentary fact that the data which is based on geographic segmentation can be confronted by extreme dynamics due to the population shifts (Pickton and Broderick, 2005, 376). The fundamental importance of segmenting the market in terms of geographics is based on the fact that the purchasing behaviors of the consumers are usually informed and extensively influenced by the locality of where they live and work. Thus, the primary consumer target in terms of geographic segmentation will be in Malaysia. This is based on the fact that this country is the market where this coffee shop is bound to enter and achieve the marketing objectives previously mentioned. In addition, geographic segmentation is concerned and useful where there are inherent differences in the locations in a given region or country where the product is being marketed. This can be perceived from the rural-urban differences which are influenced by differences in cultural as well as tradition orientations (Larsen, 2010, 9). In regard to this coffee shop trying to penetrate the Malaysian market, the most recommended geographic location where it is to be established is in the urban areas based on two primary factors. Firstly, members of the population in urban areas are bound to exhibit limited cultural barriers towards caffeine consumption due to the multi-cultural nature of this location when juxtaposed with the rural setting. On the other hand, the urban setting, which is endowed with immense population, will be integral in meeting the marketing objective of maintaining a constant traffic of consumers due to the large numbers of people in this locality. Therefore, the geographic segmentation based on the urban-rural differences will have great variances. The urban target consumers will constitute 90% of the target market while the rural consumers will comprise 10% of the target market. Psychographics The psychological variables in marketing are chiefly derived from two main types of consumers; lifestyle profile and personality profiles (psychographics). Psychographic will be used to supplement the geographic and demographic variables if they fail to provide adequate perspectives on the consumer behavior. This is based on the fact that the psychological variables have been credited for providing extra information and thus improve the understanding of the behavior patterns of the present as well as the prospective target market (Gunter & Furnham, 1992, 26). In a generic sense, the psychographic segmentation divides people in accordance to their opinions, attitudes, values, interests and lifestyles (Pickton and Broderick, 2005, 377). In regard to the coffee shop in Malaysia, majority of the prospective consumers in the formal working sector who are in the metropolitan areas have an opinion that coffee consumption in the offices is a fashionable trend and is important in enhancing alertness in the working environs which call for extreme sharpness. In addition, the members of the population working in the formal sector value social functions for the purposes of networking, sharing ideas as well as capacity building. Thus, these psychographic factors will influence a greater focus on these potential market which exhibit higher trends of coffee consumption. Benefits There are various merits associated with the above model of market segmentation of the prospective consumers for the coffee shop attempting to enter the Malaysian market. Firstly, this will enhance the nature and level of communication with consumers. This is because the company will be aware of the age, gender, class of the consumers it is serving and thus improve its communication to suit these consumers. This is imperative in achieving the marketing objective of consumer satisfaction. Secondly, market segmentation will improve the focus of the company. This is based on the fact that the coffee shop will primarily focus on particular market segments which will in turn culminate in better returns. This will aid in the attainment of the marketing objective of achieving specific financial goals previously mentioned. Lastly, market segmentation is imperative in market expansion, mostly geographic segmentation. Once the coffee shop focuses on a particular territory, it can immediately expand to the nearby territory. Conclusion The above sections have detailed the marketing objectives of the coffee shop projecting to penetrate the Malaysian market. In addition, it has explored the marketing segmentation tenet based on the demographics, geographics and psychographic variables. Lastly, the last section has outlined the diverse benefits associated with market segmentation. Reference list Ascherio, A., et. al. 2004. Coffee Consumption, Gender, and Parkinson’s Disease Mortality in the Cancer Prevention Study II Cohort: The Modifying Effects of Estrogen. American Journal of Epidemiology, 160(10): 977-984. Gunter, B&Furnham, A. 1992. Consumer profiles: An introduction to psychographics. London: Routledge. Howell, R. 2011. Market Segmentation: the Importanceof Age Cohorts. http://www.neumann.edu/academics/divisions/business/journal/Review2012/Howell.pdf(accessed October 03, 2012) Kalakumari T. & Sekar, M., 2012. A conceptual study of building a strong brand with CBBE Model. International Journal of Multidisciplinary Research, 2 (1): 187-193. Larsen, N. 2010. Market Segmentation - A framework for determining the right target customers. BA Thesis, Aarhus School of Business. http://pure.au.dk/portal-asb-student/files/11462/BA.pdf(accessed October 03, 2012). Mawoli, M.A. 2012.Effective market segmentation and viability of Islamic Banking in Nigeria. Australian Journal of Business and Management Research, 1(10): 1-9. Park, C. W., et. al. 1986. Strategic Brand concept-image management’, Journal of Marketing, 50 (1): 135-145. Pickton, D.& Broderick, A. 2005. Identifying target audiences and profiling target markets. In Integrated marketing communications, ed. Pickton & Broderick, 371-398. New Jersey: Prentice Hall. Sadeghi, T. & Farokhian, S., 2011. The Role of Customer Satisfaction in Product Planning. Middle-East Journal of Scientific Research, 7 (1): 39-45. Shafique, K. et. al. 2012. Coffee consumption and prostate cancer risk: further evidence for inverse relationship. Nutrition Journal, 11(42): 1-10. Singh, H. 2006. The Importance of Customer Satisfactionin Relation to Customer Loyalty and Retention. http://www.ucti.edu.my/wps/issue1/wp-06-06-paper.pdf (accessed October 03, 2012) Read More