MARKETING MIX

Marketing Mix

Introduction

A market consists of individuals and organizations in need, money to spend and the desire to spend. However, in most of the markets, needs and desires of the buyers are not the same. A company must deepen the knowledge of their market in order to adapt its supply and marketing strategy to the requirements of it. To accommodate such diversity, the segmentation is taken at its starting point, the recognition be seen that the market is heterogeneous, and seeks to divide it into homogeneous groups or segments that can be chosen as a target market of the company. Thus, segmentation is a process of differentiation within a markets needs. The identification and selection of market segments raises the problem of deciding the position you want the company to occupy in those markets, i.e., choose a position for its products. One of the key factors in the success of products competitive markets is in its proper positioning. In a way it might speak of the position, as the manner in which the product or service is introduced and how is it intend to be perceived by the target market. (Bonoma, Shapiro, 1984)

Discussion

Market segmentation

Market segmentation is a process that involves dividing the total market for a good or service in several smaller groups which are internally homogeneous. The essence of segmentation is to know the consumers. One of the key elements of a successful company is its ability to properly target your market. Segmentation is also an effort to improve the accuracy of marketing a business. To suggest a product or service to the proper person or company, you first need to segment the market, and then target one or more segments, and eventually you position in the segment. The segmentation of a market can be defined as the identification of subsets of buyers sharing common needs and having similar buying habits. The market segment is relatively large and homogeneous group of consumers can be identified within a market. It is studied if they have wants, purchasing power, geographical location, buying attitudes and buying habits similar and also if they react similarly to a mixture marketing. (Bonoma, Shapiro, 1984)

Consumer behavior is often too complex to explain in one or two characteristics. Therefore, it should be taken into account with several other dimensions, starting from the needs of consumers. It is hence advisable to present flexible market offerings to the market segment (Kalafatis, Stavros, Cheston, 1997). A good segmentation should result in subgroups or market segments with the following characteristics:

1. Intrinsically homogeneous (similar) consumer segment should be as close as possible about their likely responses to the variables of the marketing mix and segmentation dimensions.

2. Heterogeneous among themselves, where consumers in several segments should be as different as possible about their likely response to the variables of the marketing mix

3. Quite large in quantifiable terms to ensure the profitability of the segment

4. Operational customers to identify and choose the variables of the marketing ...