Assignment 5



Assignment 5

Introduction

Market segmentation allows the identification of customer needs within a submarket and designs more effective marketing mix to meet consumer's demands. It helps the marketers to focus more deeply on the needs and desires of customers so that market leadership position must be obtained. The companies of medium size can grow faster if they get a strong position in niche target markets through building brand loyalty and improved customer service.

Bullet 1: Data about Target Audience

Efficient target market segmentation helps the marketers to develop the effective and cost efficient promotional tactics and campaigns. Therefore, the fine tuning of marketing strategies becomes much easier. Companies have the ability to segment markets using a variable or a combination of variables the segments can be by geographical location, i.e., by region.

The data collection about the target market can be done through the various primary and secondary research techniques such as survey, literature reviews, focus group interviews etc.

Bullet 2: Effectiveness of Planning Process

There are some major business issues which need to be considered because a proper investment needed for each segment. There are three ways through which market can be segmented that are: (1) Demographics, (2) Socioeconomic Characteristics and (3) Product Usage. It helps the firms to avoid the less profitable market segments and identify the least profitable customers. Market segmentation helps to manage brand management strategies in terms of improvement in the competitive positioning and product differentiation. It identifies the premium target market segments so that revenues must be maximized through high pricing.

Bullet 3: Feedback for Promotional Activity

The relationship between the constructs of customer satisfaction and customer loyalty has been receiving great attention from academic researchers and business practitioners for years. There were a number of studies conducted in various industries indicating that there was a positive relationship between customer satisfaction ...