The paper "Market Segmentation Issue" is a perfect example of marketing coursework. The market is always at the center of every business activity or endeavor. Before an entrepreneur engages in any business, he must undertake market research to establish the demand for their products and justify their supply. After they have understood this market, they perpetually adjust to different circumstances that arise to ensure they hit maximum sales and hit their targets (Moschis, 1994). Breaking the market into smaller segments and the entrepreneur handling each as a unit may be a key to the success of small businesses if it is done the right way.
The idea of target marketing makes it easier for the entrepreneur to label their products, price them and promote them. This is based on the geographical, psycho-graphical and demographical disposition on the population which constitutes the potential market. In the quest to establish one's viable market, one can also identify feasible opportunities they can capitalize on. However, the businessman has to answer a number of questions among them being whether or not there is a market or customer base for their product. It is also essential to understand that the market issue in any business is not handled in isolation.
For instance, it has to be linked closely to the section of operations, finance, research and development and the human resource department to check whether the plans are viable and to determine the required manpower to pursue the objectives laid down. The operations need to use sales forecasts from the marketing department to plan the schedule of their production. On the other hand, the research and development store department needs the marketing department to understand their outputs and the needs of their customers.
The organization or business unit has to understand every element of the market in order to establish which strategy works the best (Cant, 2006). Understanding the need to establish a functional unity between different departments, this report seeks to establish how a small business may benefit from breaking up the market into smaller segments. It analyses several elements of marketing and how relevant they are to businesses. Literature review Marketing Marketing involves the entire process of communicating the value of an item or product/service to customers with the intention of selling the product.
It is a fundamental function of a business to attract customers. From a social perspective, marketing links society’ s material requirements and the item’ s entire economic patterns of response. It satisfies these wants through an exchange process and by building long term relationships. It can also be viewed as an organizational function in creating and communicating the value of a product to customers and managing their relationships in a manner that benefits both the shareholders and the organization (Cant, 2006).
It generally involves identifying target markets through systematic research and segmentation. Apparently, there are five concepts under which any organization may choose to market its business. They include the product concept, the production concept, the marketing concept, the selling concept and the concept of holistic marketing. Holistic marketing is father divided into four concepts which include; integrated marketing, internal marketing socially responsive marketing, and relationship marketing. The set of elements required for marketing management to be a success include connecting with individual customers, capturing market insights, building strong brands, delivering high-quality goods, communicating the value of the goods, shaping market offerings, and developing plans and strategies for marketing (Strydom, 2004).
Cant, M. C. (2006). Marketing management. Cape Town, South Africa, Juta.
Dibb, S., & Simkin, L. (1995). The market segmentation workbook: target marketing for marketing managers. London, Routledge.
Moschis, G. P. (1994). Marketing strategies for the mature market. Westport, Conn, Quorum Books.
Strydom, J. (2004). Introduction to marketing. Cape Town, South Africa, Juta.
Wedel, M., & Kamakura, W. A. (1999). Market segmentation: conceptual and methodological foundations. Boston, Kluwer Academic.