Martin College - Marketing Strategies - Case Study Example

Developing a Market Plan Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Table of Contents 2 Executive summary 3 1.0 Introduction 4 1.1 Purpose of the report 5 1.2 Recommended proposal for segmenting the market 5 1.2.1 Identifiable 5 1.2.2 Accessibility 6 1.2.3 Unique 6 1.2.4 Durability 6 1.3 Sources of information for segmenting the market 7 1.4 Market usefulness 8 2.0 Identification of the target market 8 2.1 Approaches for describing the target market 8 2.2 Market segment descriptors 9 2.3 Strategic marketing options 10 3.0 Profile of the target audience 10 3.1 Consumer profile 10 3.2 Consumer characteristics 11 3.3 Demographic and psychographic descriptions 11 4.0 Positioning strategy 11 4.1 Positioning implementation plan 12 5.0 Conclusion 12 6.0 Recommendation 13 References 13 Executive summary The purpose of this report was to take a critical view of the current market plan of Martin College and then develop the most current market for the institution. Martin College is an Australian based institution that is accredited to offering various diplomas and certificates in various courses. First and foremost, there are different ways that can be used segment the market and they include identifiable, accessibility, uniqueness and durability. Various sources of information market segmentation do exist and can be categorized into two broad categories namely primary and secondary. This report has also discussed various approaches to identifying and describing different market segments, market segmenting descriptors and various marketing strategic options that are available. This report has also tackled the element of customer profiling by looking at consumer profiles, consumer characteristics and Demographic and psychographic descriptions. Positioning strategy has also been discussed and various options which include price, value and convenience as well as attractiveness have been identified. Finally, it is recommended that the for the marketing plan to be effective, understanding the customer position first in terms of service needs is very important in determining the market position for the institution. 1.0 Introduction Martin College is an Australian learning institution that provides both vocational education and education (VET). The institution has campuses in various parts of the country including Brisbane and Gold coast as well as central Sydney. The institution was founded in 1976 by the then the Receptionist and Deportment Academy Lorraine Martin. Initially the college was known as Lorraine Martin College until 1995 when it was sold to Education and Training Australia Pty Limited and its name changed to Martin College. The institution is accredited and nationally recognized to providing various diplomas and certificates in various courses like business and management, travel and tourism, information technology, graphic design, marketing and event management. Martin College currently is a member of the Study Groups which is globally recognized provider of education that invests in the future of its students and enhancing their prospects by focusing on the kind of education they receive and the qualifications attained. The Study Group is also recognized as a leader in education especially in matters related to career building and by providing access to world-class universities to its students. Over 50,000 students from 120 countries in the world enroll in the programs provided by the group each year. The group is also a network of specialist education counselors and 200 partner universities from the United States, Australia, the United Kingdom, Canada and New Zealand (Martin College 2012). 1.1 Purpose of the report The purpose of this report is to take a detailed analysis of the market that is available for Martin College and also identify various market segmentation criteria that can be used by the institution and its target markets. In general the report will seek to address the proposal that can be used for segmenting the market, target market identification, profiling of the target audience and the market positioning strategy that can be used by the institution. The ultimate objective of the report is to provide a new way for marketing the institution. 1.2 Recommended proposal for segmenting the market Marketing segmentation is the process of identifying various portions of the markets that are different from one another but share similar features (Kotler 2001). Market segmentation is particularly important in helping the service or the product provider to better understand the specific needs of the customers and match specific efforts to satisfying them. Martin College is a learning institution and it is very possible to conclude that its target market is students. But as a matter of fact, there exist unique characteristics among the students which make them different from the rest in terms of needs (Kelly 2002). With this regard therefore, the following is the recommended criteria that can be used by Martin College to segment its market: 1.2.1 Identifiable As Martin College seeks to segment its market and target it, the first and foremost thing to do, is to try and identify the various markets and the similar characteristics and features that appear in one given market (Brierty et al 1998). These characteristics are actually unique and different from the rest of the segments and most important is to be measured to determine the real worthy and need to invest in them. The best target market is only possible if there is a clear understanding of the features that make a given group of customers unique (Wedel & Kamakura 2002). 1.2.2 Accessibility Accessibility refers to the ease to reach a given market by any given means including communication and through distribution channels. For service delivery to be easy, the service provider must be able to reach a given market and serve its needs. While considering accessibility of a given market, such media as magazines and websites need to be looked at. This is important in making sure that a given market can actually be reached (Keegan 2002). 1.2.3 Unique According to (Keegan 2002), each particular market has got its own unique needs which are distinguishable from the others. This is a market segmentation criterion that is used to indicate the need for each given market because of its attributes. Each market segment responds differently to the various market segments that are being used and that make them different from others. 1.2.4 Durability According to (Kotler 2000), having a more stable market segment is an advantage for the business. This is because less resources are likely to be spent in serving a market segment which its needs are relatively more stable as opposed to those that fluctuate at all times. 1.3 Sources of information for segmenting the market Market segmentation is always done based on information that is made available for the best. Various sources for information about certain markets do exist. However, its access is very vital in making sure that proper segmentation is done. The sources of information can be categorized into two major groups namely: primary and secondary sources as shown in the diagram below. Source: (Kotabe & Helsen, 2007) 1.4 Market usefulness The usefulness of a particular market segment will be determined by the relative value that a particular segment will have to the business. The relative value can be attached to such factors as size of the market, their potential, distinctive needs, easy to identify its members and the way they use media patterns (Pride & Ferrell 2000). The size of the market is considered important because of the amount of sales the business will make from it. The potential of the market segment should be determined by the quality of life and the amount people have as part of disposable income to spend on education (Kotabe & Helsen 2007). Another important factor that will be used to determine the usefulness of a given market is its distinctive needs and which in this case is college education. Further, easy to identify a given market is also a key feature to determining whether a given market segment is worthy or not. This is because it will be easy to deal with those customers that can be located. Finally, the trend of using media is importance because it will determine whether the market can be communicated to advertising and promotional activities will reach the market (Anderson & Narus 1999). 2.0 Identification of the target market 2.1 Approaches for describing the target market 1. The market can be identified and described with regard to the total amount in Dollars that it will bring to the business. This can also be expressed as a percentage of gross sales of the total similar services provided by the institution. This is to determine the value of that particular market. 2. The target market can also be defined in terms of their prospects and in comparison of those of the current customers. This is especially important in determining whether the target market will have future prospects for the business. 3. Further, the target market can be defined and described in relation to the current service. This is to determine whether the target market is using the service elsewhere and if they can accept the institution’s services. 4. The characteristics of the identified market will also be identified to determine whether, they fall within the institution’s portfolio and if the institution has the capacity to meet those needs. This is especially in making sure that given characteristics do not complicate the operations of the business. 2.2 Market segment descriptors 1. Demographic descriptors: The age, gender and population growth are the major demographic descriptors that would be used to determine the attractiveness of a given target market 2. Geographic distribution: This is a market segment descriptor that is used to define where the target market is located and if its accessible to the institution’s services 3. Historical descriptors: This could be determined the expected volumes of sales and the frequency of purchase of the service 4. Psychographic descriptors: These is determined by the general perceptions of the target market to the services offered by the institutions 2.3 Strategic marketing options 1. Advertising strategies that are more cost effective and easy to execute are the most preferred in the institution. This will not only help the institution reach more market, but will also save the institution in terms of cost. The advertising media like print could be the most preferred. 2. The distributive channels are also important in reaching the mass market. For instance this possible if the various campuses are used as distributive and advertising agents for the institution by talking to the public either in informal meetings or formal meetings arranged by the campuses. 3. Innovative and creative strategies. Give the wide coverage of the institution and because of the geographical location, use of the internet to communicate with the potential could be the most preferred marketing strategy option. 3.0 Profile of the target audience 3.1 Consumer profile The institution’s target audience includes students who have recently completed high school and are willing to take various diplomas and certificate courses. Even though there is also working class which amount to approximately 30% of the total population, the high school leavers still remain the major target market base number one (Singh 2011). Price sensitivity is the major issue among this group since many of them are not working and are therefore willing to join the institution that could offer them quality education at most affordable prices. 3.2 Consumer characteristics The target market is composed of young people are out of school. It is approximated that over of 99.9% of this group is able to read and speak fluently in English Language and at the same time are able to access and use the internet. What this means is that any media for marketing should be favorable and comfortable for them (Higgs and Ringer 2007). 3.3 Demographic and psychographic descriptions Many of the customers in the target market are aged between 16 years and 20 years except for those who are working and enrolled in various courses with the institution. Over 95% of the target audience is of sound health with all five senses functioning properly. Over 90% of the target market is able to speak in their first language (Higgs and Ringer 2007). The common feature with this market is that they are supported by their guardians. On the other hand, the target group’s psychographic descriptions include valuing fashions, interests towards education, exploration, making new friends and change of lifestyle. Finally, this target market is known to have the required competencies to use the most preferred language for communication and can interpret any peace of information and content meaningfully (Kotler 2000). 4.0 Positioning strategy The most appropriate positioning strategy for the institution and that will give it a competitive edge of the rest must include a media that is conspicuous and attractive that can attract this target market. Further, convenience of use of the media is also critical for the institution given that this is a population could prefer using the internet more than any other means for communication (Singh 2010). The institution can also be positioned in terms of price by giving affordable prices for the students. On the same line, the target market is always interested in value. With this regard therefore the institution must tell the target market why they should pay for that service and not somewhere else (Clow & Baack 2001). 4.1 Positioning implementation plan 1. Choosing the target market that focus should be put on 2. Developing a detailed list of all the needs that the target market has and that may wish to have them met 3. Listing the institutions’ service benefits that are likely to meet these needs 4. Create a link between the customer needs and the service benefits provided by the company 5. Evaluating the plan to determine its effectiveness 6. Communicating effectively to everyone to understand the message behind the positioning strategy 5.0 Conclusion The purpose of this report was to write a detailed new market plan for Martin College. This report has covered in detail the proposed recommended proposal for segmenting the target market and the various sources of information that are available and that can be used in market segmenting, identification of the target market and the process of profiling the customer audience. In general, what has been established in the process is that development a marketing plan is a continuous process if it’s to cater for the changing dynamics in the market. 6.0 Recommendation Before the institution can position itself, the customer has already positioned himself in such away by paying particular attention to what service or product he is looking for. In this case therefore, it is recommended that the institution first has to establish what it has control over by determining the various positions that exist in the mind of the customer and then map which it’s well positioned serve and depend based on its own strength. References Anderson, J., & Narus, J. (1999). Business Market Management: Understanding, Creating and Delivering Value. New Jersey: Prentice Hall. Brierty, E., Eckles, R., & Reeder, R. (1998). Business Marketing (3rd ed.). New Jersey: Prentice Hall Clow, K., & Baack, D. (2001). Integrated Advertising, Promotion, & Marketing Communications. New Jersey: Prentice Hall Keegan, W., (2002). Global Marketing Management (7th ed.). New Jersey: Prentice Hall Kelly, J. (2002). Profile the Market. Sydney: Software Publications Kotabe, M., & Helsen, K. (2007). Global Marketing Management. USA: John Wiley Inc. Kotler, P. (2001). Kotler on Marketing. Sydney: Simon & Schuster. Kotler, P. (2000). Marketing Management. (Millennium ed.). New Jersey: Prentice Hall Kotler, P., Adam, S., Denize, S. & Armstrong, G. (2009). Principles of Marketing (4th ed.). Sydney: Prentice Hall. Martin College 2012, About us, retrieved on 8th October 2012, available at: https://mail.google.com/mail/?shva=1#inbox/13a3b89a8f6005da Pride, W., & Ferrell, O. (2000). Marketing Concepts and Strategies. Boston: Houghton Mifflin. Singh A. (2011), “Impact of demographical factors on the purchasing behaviour of the customers’ with special reference to FMCG: An empirical study”, International journal of research in commerce & management, Vol. 2, No. 3, pp. 321-327. Wedel, M. & Kamakura, H. (2002). “Introduction to the Special Issue on Market Segmentation”, Intern. Journal of Research in Marketing. Vol. 19, p. 181– 183. Singh A. (2010). “Market segmentation in FMCG: time to drive new basis for market segmentation”, International journal of research in commerce & management, Vol. 1, No. 8. p. 127-138. Higgs; B. and Ringer, A. (2007). “Trends in Consumer Segmentation”, Australia New Zealand Marketing Academy, Conference paper, 3-5 Dec. Read More