THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A CUSTOMER TARGETING (MARKETING) STRATEGY Corporate Strategy Customer Targeting (Marketing)Customer Targeting (Marketing) Environmental Scan Formulation of Customer Targeting (Marketing) Strategy )Budgeting and operational budgets • Mission of the firm • Strategic thrusts and planning challenges Customer Targeting (Marketing) Requirements (Marketing) Internal Scrutiny • Strengths and weaknesses • Distinctive Customer Targeting competencies for all strategic categories of decisions • Industry and competitive analysis • Customer Targeting (Marketing) intelligence Customer Targeting (Marketing Strategic Agenda Strategic funds programming.
I think my product the Mp3 maintain allmost all the strategy to get a big market .The main strategyto get the market with the people who are really mad to listen to music.And with the competitive advantage it has video option with the price of 50 € whereas the other selling with like 110-200€.IT also include FM radio.The main idea was to get the mediocare buyers with a good product.OF course the feature of the product is also mind blowing.
However i think the following strategys are very much considerable to the starategy of a product.
MAJOR CATEGORIES OF STRATEGIC DECISIONS LINKED TO CUSTOMER TARGETING
1. MARKETING INTELLIGENCE
It corresponds to the effort conducted by the firm to decipher competitors' standing and to try to anticipate their future moves. Important issues areproduct introductions, marketing approaches, changes in segmentation practices, price policies, product liabilities, new distribution channels, and improved services approaches.
2. DEFINING AND ANALYZING MARKETS
These decisions are concerned with generating marketing intelligence for the firm. It starts with an appropriate market segmentation, and a finer definition of product-market segments so as to capture the different preferences and needs of customers. In each of those segments, ananalysis of the behavior of consumers and organizational buyers is conducted, as well as of the overall strategic competitive situation.
3. PRODUCT STRATEGY
It refers to decisions on how to position a business unit product offering including
specific products, breadth of product lines, mix, and bundling - to serve its target markets, establishing strategic objectives for products - market share, profit contribution, and selecting a branding strategy.
4. NEW PRODUCTS DEVELOPMENT AND INTRODUCTION
Issue included are: idea generation, screening and evaluation of ideas, business analysis, development of a prototype, formulation of a marketing approach, market testing in pilot regions, adjustment of administrative and support systems, and new products introduction.
5. DISTRIBUTION STRATEGY
Decisions involved: selection of a distribution channel - whether direct or via retailers, wholesalers, or agents; design and management of the physical distribution system -including customer service, demand forecasting, inventory control, materials handling, order processing, parts and service support, warehousing and storage, procurement, packaging, returned goods handling, and traffic and transportation; and push vs. pull mode of operation of the distribution and sales systems.
6. PRICE STRATEGY
The central factors that affect price strategy are product competitive positioning, product mix, brand strategy, and product quality and features. The distribution strategy also influences how the price decision will be affected by the advertising and sales force strategy
7. PROMOTION AND ADVERTISING STRATEGIES
An integrated promotion strategy has four components: advertising - presentation and promotion of ideas, goods, or services by an identified sponsor; personal selling - oral presentation to one or more prospective purchasers; sales promotion - includes trade shows, contests, samples, point-of-purchase displays, and coupons; and publicity - exhibition in mass media not paid for directly by sponsor.
8. SALES STRATEGY
This encompasses all of the key decisions that should support a coherent sales strategy including account management, cross-selling and up-selling, territory management lead closure, opportunity management, sales force incentives, sales team composition, and customer engagement process.
9. SERVICE STRATEGY
The extend to which service activities become a highest priority to the firm is a critical element of service strategy. Critical decisions are the scope of the service offering, the degree of technical support provided, the amountof customization of service activities, the management of account inquiries, service dispatch, problem resolution, and service tracking.
10. MARKETING ORGANIZATION AND MANAGERIAL INFRASTRUCTURE
It includes the development of an organization structure; planning, control and information systems; and rewards and incentives systems in accordance with the culture of the firm and the marketing strategy. It is important to reflect on the proper segmentation in the organizational structure of product marketing - which typically resides in the back-end of the organization, and customer marketing - which typically resides in the front-end.
Target market is, the market segment to which a particular product is marketed. It's often defined by age, gender, geography, and/or socio-economic grouping.
Targeting strategy or targeting is the selection of the customers you wish to service. The decisions involved in targeting strategy include:
-which segments to targeting
-how many products to offer
-which products to offer in which segments
There are three steps to targeting:
-market segmentation
-target choice
-product positioning
Targeting strategy decisions are influenced by:
-market maturity
-diversity of buyers' needs and preferences
-strength of the competition
-the volume of sales required for profitability
The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. One version of the origins of the marketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version continues in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term 'Marketing-Mix'. A prominent person to take centre stage was E. Jerome McCarthy in 1960; he proposed a four-P classification which was popularised.
Marketing mix (Price, Place, Promotion, Product)
When marketing their products firms need to create a successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:
-The product has to have the right features - for example, it must look good and work well.
-The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
-The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
-The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.
The 4Ps and the marketing mix
The 4Ps are the ideas to consider when marketing a product. They form the basis of the marketing mix. Getting this mix right is critical in order to successfully market a product. The 4Ps are:
Product
Price
Promotion
Place
I think my product the Mp3 maintain allmost all the strategy to get a big market .The main strategyto get the market with the people who are really mad to listen to music.And with the competitive advantage it has video option with the price of 50 € whereas the other selling with like 110-200€.IT also include FM radio.The main idea was to get the mediocare buyers with a good product.OF course the feature of the product is also mind blowing.
However i think the following strategys are very much considerable to the starategy of a product.
MAJOR CATEGORIES OF STRATEGIC DECISIONS LINKED TO CUSTOMER TARGETING
1. MARKETING INTELLIGENCE
It corresponds to the effort conducted by the firm to decipher competitors' standing and to try to anticipate their future moves. Important issues areproduct introductions, marketing approaches, changes in segmentation practices, price policies, product liabilities, new distribution channels, and improved services approaches.
2. DEFINING AND ANALYZING MARKETS
These decisions are concerned with generating marketing intelligence for the firm. It starts with an appropriate market segmentation, and a finer definition of product-market segments so as to capture the different preferences and needs of customers. In each of those segments, ananalysis of the behavior of consumers and organizational buyers is conducted, as well as of the overall strategic competitive situation.
3. PRODUCT STRATEGY
It refers to decisions on how to position a business unit product offering including
specific products, breadth of product lines, mix, and bundling - to serve its target markets, establishing strategic objectives for products - market share, profit contribution, and selecting a branding strategy.
4. NEW PRODUCTS DEVELOPMENT AND INTRODUCTION
Issue included are: idea generation, screening and evaluation of ideas, business analysis, development of a prototype, formulation of a marketing approach, market testing in pilot regions, adjustment of administrative and support systems, and new products introduction.
5. DISTRIBUTION STRATEGY
Decisions involved: selection of a distribution channel - whether direct or via retailers, wholesalers, or agents; design and management of the physical distribution system -including customer service, demand forecasting, inventory control, materials handling, order processing, parts and service support, warehousing and storage, procurement, packaging, returned goods handling, and traffic and transportation; and push vs. pull mode of operation of the distribution and sales systems.
6. PRICE STRATEGY
The central factors that affect price strategy are product competitive positioning, product mix, brand strategy, and product quality and features. The distribution strategy also influences how the price decision will be affected by the advertising and sales force strategy
7. PROMOTION AND ADVERTISING STRATEGIES
An integrated promotion strategy has four components: advertising - presentation and promotion of ideas, goods, or services by an identified sponsor; personal selling - oral presentation to one or more prospective purchasers; sales promotion - includes trade shows, contests, samples, point-of-purchase displays, and coupons; and publicity - exhibition in mass media not paid for directly by sponsor.
8. SALES STRATEGY
This encompasses all of the key decisions that should support a coherent sales strategy including account management, cross-selling and up-selling, territory management lead closure, opportunity management, sales force incentives, sales team composition, and customer engagement process.
9. SERVICE STRATEGY
The extend to which service activities become a highest priority to the firm is a critical element of service strategy. Critical decisions are the scope of the service offering, the degree of technical support provided, the amountof customization of service activities, the management of account inquiries, service dispatch, problem resolution, and service tracking.
10. MARKETING ORGANIZATION AND MANAGERIAL INFRASTRUCTURE
It includes the development of an organization structure; planning, control and information systems; and rewards and incentives systems in accordance with the culture of the firm and the marketing strategy. It is important to reflect on the proper segmentation in the organizational structure of product marketing - which typically resides in the back-end of the organization, and customer marketing - which typically resides in the front-end.
Target market is, the market segment to which a particular product is marketed. It's often defined by age, gender, geography, and/or socio-economic grouping.
Targeting strategy or targeting is the selection of the customers you wish to service. The decisions involved in targeting strategy include:
-which segments to targeting
-how many products to offer
-which products to offer in which segments
There are three steps to targeting:
-market segmentation
-target choice
-product positioning
Targeting strategy decisions are influenced by:
-market maturity
-diversity of buyers' needs and preferences
-strength of the competition
-the volume of sales required for profitability
The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. One version of the origins of the marketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version continues in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term 'Marketing-Mix'. A prominent person to take centre stage was E. Jerome McCarthy in 1960; he proposed a four-P classification which was popularised.
Marketing mix (Price, Place, Promotion, Product)
When marketing their products firms need to create a successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:
-The product has to have the right features - for example, it must look good and work well.
-The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
-The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
-The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.
The 4Ps and the marketing mix
The 4Ps are the ideas to consider when marketing a product. They form the basis of the marketing mix. Getting this mix right is critical in order to successfully market a product. The 4Ps are:
Product
Price
Promotion
Place
If market research is carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place.
Now look at the 4Ps in more detail.
Product
A product can be either a good or a service that is sold either to a commercial customer or an end consumer. A customer buys a product, and a consumer uses it. Sometimes these are one and the same, as an industrial firm can also be a customer and a consumer. For example, British Airways might buy aeroplanes from British Aerospace, so it is a customer. It won't sell on the planes to another buyer, as BA needs the planes to provide its service, so it is also a consumer. Sometimes a wide product range covers both (Mercedes produce lorries for haulage companies, and cars for domestic use).
More commonly, there will be a number of sellers forming a chain of distribution. For example, a gold mine may sell gold to a jewellery manufacturer, who in turn will sell on rings to wholesalers and retailers, before we get to buy them in the high street. Each is a customer, but only the final user is the end consumer. A marketing manager will identify who his/her target market is, what they want, and sell it to them at each stage in the chain.
Price
No matter how good the product is, it is unlikely to succeed unless the price is right. This does not just mean being cheaper than competitors. Most people associate a higher price with quality, so you would expect to pay more for a Rolls Royce than for a Lada. On the other hand, is one cola worth more than another, and if so, how much?
As a rule, a producer of luxury or medical products will use skim pricing or premium pricing initially, in order to maximize its profits. This is useful, as it helps them to recover expensive research and development costs quickly.
For fast moving consumable goods (fmcg's) like colas, penetration pricing is usually used. The firm will want a large share of the market, so will settle for a small profit on each item. In the long term, they hope that the turnover, and therefore their profits, will be high.
The simplest method of all is cost-plus pricing , where a firm adds a profit mark-up to the unit cost.
Promotion
The specific sections of society (market segments) being targeted will affect the types of media chosen, as will the cost. If you were a toy manufacturer, you might want an advertising spot during children's TV. If you ran a local restaurant, you might choose a local paper or radio.
A small or local business would not usually advertise on TV, because it is very expensive. Sales promotion is designed to encourage new and repeat sales. Loyalty cards, free gifts, competitions and voucher schemes are the most popular.
Companies use sponsorship and public relations to improve their image, notably through financing sports, the arts and public information services.
Place
Distribution channels are the key to this area. A firm has to find the most cost-effective way to get the product to the consumer. Direct marketing through catalogues, via a TV shopping channel and through the Internet have become popular, because the consumer can shop from home.
For the firm, they can cut out the middleman in the process, and can therefore make more profit. Going through wholesalers and high-street retailers, however, is the most popular form of distribution, as that is still where most people shop.
SO if we consider these aspect we can see that my product in case of place they use the big ratail shops.Which is specificly the All Class Ohlson shops.The price which is less comperatively other mp3's .And The main aims of promotion are to persuade, inform and make people more aware of a brand, as well as improving sales figures. Advertising is the most widely used form of promotion, and can be through the media of TV, journals.or outdoors
(billboards, posters).
In case of my product the internal accessibility is only visible.There is no external-accessibility of this product.
Now look at the 4Ps in more detail.
Product
A product can be either a good or a service that is sold either to a commercial customer or an end consumer. A customer buys a product, and a consumer uses it. Sometimes these are one and the same, as an industrial firm can also be a customer and a consumer. For example, British Airways might buy aeroplanes from British Aerospace, so it is a customer. It won't sell on the planes to another buyer, as BA needs the planes to provide its service, so it is also a consumer. Sometimes a wide product range covers both (Mercedes produce lorries for haulage companies, and cars for domestic use).
More commonly, there will be a number of sellers forming a chain of distribution. For example, a gold mine may sell gold to a jewellery manufacturer, who in turn will sell on rings to wholesalers and retailers, before we get to buy them in the high street. Each is a customer, but only the final user is the end consumer. A marketing manager will identify who his/her target market is, what they want, and sell it to them at each stage in the chain.
Price
No matter how good the product is, it is unlikely to succeed unless the price is right. This does not just mean being cheaper than competitors. Most people associate a higher price with quality, so you would expect to pay more for a Rolls Royce than for a Lada. On the other hand, is one cola worth more than another, and if so, how much?
As a rule, a producer of luxury or medical products will use skim pricing or premium pricing initially, in order to maximize its profits. This is useful, as it helps them to recover expensive research and development costs quickly.
For fast moving consumable goods (fmcg's) like colas, penetration pricing is usually used. The firm will want a large share of the market, so will settle for a small profit on each item. In the long term, they hope that the turnover, and therefore their profits, will be high.
The simplest method of all is cost-plus pricing , where a firm adds a profit mark-up to the unit cost.
Promotion
The specific sections of society (market segments) being targeted will affect the types of media chosen, as will the cost. If you were a toy manufacturer, you might want an advertising spot during children's TV. If you ran a local restaurant, you might choose a local paper or radio.
A small or local business would not usually advertise on TV, because it is very expensive. Sales promotion is designed to encourage new and repeat sales. Loyalty cards, free gifts, competitions and voucher schemes are the most popular.
Companies use sponsorship and public relations to improve their image, notably through financing sports, the arts and public information services.
Place
Distribution channels are the key to this area. A firm has to find the most cost-effective way to get the product to the consumer. Direct marketing through catalogues, via a TV shopping channel and through the Internet have become popular, because the consumer can shop from home.
For the firm, they can cut out the middleman in the process, and can therefore make more profit. Going through wholesalers and high-street retailers, however, is the most popular form of distribution, as that is still where most people shop.
SO if we consider these aspect we can see that my product in case of place they use the big ratail shops.Which is specificly the All Class Ohlson shops.The price which is less comperatively other mp3's .And The main aims of promotion are to persuade, inform and make people more aware of a brand, as well as improving sales figures. Advertising is the most widely used form of promotion, and can be through the media of TV, journals.or outdoors
(billboards, posters).
In case of my product the internal accessibility is only visible.There is no external-accessibility of this product.
3 comments:
hi thanks onec again for this post.The picture u put makes this post better.I think u was should concentrate more over targetting strategy.But other thing are ok.But again here quite deatails.
Its okay just that you should try and write the theme in your own words and don't depend too much on your search but get the understanding of what was given by writing in your own words.
Your explanation for the theme is quiet clear and i think you understand the question so you answered reasonably.Try and emphasis or stretch on the product you talked about and its importance first.Thank you.
Post a Comment