Abstract
Market segmentation in changing market trends is achieved through a perfect network of product establishment and distribution. The market trend is defined through a creatively identified models and scope that are objectively managed through a predictable approach. The considerable opportunities are necessitated through a merited strategy in order to understand the changing behavior among clients. The macro-segments are fully installed within a given focus and creatively deployed in order to assess the pattern of product marketing. The profitability level that Tammy Limited projects its operations is composed of the input-output model and the aggregate functions. The building factors necessitated within the business interconnection are objectively transformed in view of the purchasing and buying decisions. These attributes hence reclassify the implications of the business growth spectrum.
Question 2
Market segmentation
Introduction
Geographic Segmentation
Under this aspect factors relating to consumer characteristics that are held in to account include; region, size of the metropolitan area, population density and climate. Geographical segmentation enables the firm to determine the disparity of their products and services in relation to their consumers and their market. Under regional aspect, Hutt and Speh, (2004) explains that the firm should review their products spread and this can be in relation to the continents, nations using their products, states or the neighborhood. This can help them enact strategies that will boost more sales. Reviewing their markets and segmenting them based on this aspect Tammy limited can identify and discover the markets that marginally use their products most in relation to the weaker regions. This can help the firm utilize more resources on the potential markets or withdrawing from the markets that are performing poorly. The population density aspect under geographic segmentation entails the need to segment the market based on the population size. Population size is essential for every business thrive in relation to growth and development. Identification of the highly populated areas can help Tammy limited enact strategies to cover every individual in relation to their products. They can hold intensive integrated marketing communications and availing their products in relation to the population density. This is essential for the firm as it proffers their need to strategize and create a competitive advantage in the market. This can be achieved by enacting strategies that outdoes those of the competitors, (Kotler, 2001).
Demographic Segmentation
Under these bases of segmentation of the market Tammy limited should analyse aspects in the market and consumer characteristics such as age, gender, income, social class and family lifecycle among others. Though Tammy limited has clearly stated that their products are aimed for children they should hold some aspects into consideration in relation to the age brackets. Their products and services should be defined in certain age brackets to help them define a clear product marketing strategy. Income of the parents or the guardians who purchase the products for their children needs to be analyzed. This can help the firm segment the market by offering products that reflects the income of the parents or the guardians. Gender aspect is also essential on segmentation of the market in relation to the consumers. This can help Tammy limited identify which of their products receive higher sales from either sex which hence help them identify the potential markets. Social class aspect is essential as it helps them firm offer products through segmenting the market based on the status projected by their consumers. This is essential as it helps the firm offer products and services that reflect the social class of their operating markets, (Galloway, 2002).
Psychographic Segmentation
This holds aspects such as lifestyle. To achieve this, the firm can use tools such as activities, interests and the opinions of the consumers to measure lifestyle. The most essential variables under this aspect that the firm should analyse in relation to their consumers and need to segment the market are activities, interests, opinions, attitudes and values. Activity variable is essential in offering cloths that are designated for particular activity. Tammy limited can offer products that reflect various activities projected by their consumers such as sport. This can be beneficial to the firm as it will be offering products that meet their consumer’s satisfaction by suiting every occasion in relation to activities. Consumer interest’s identification in segmentation of the market based on the product is also very essential. Tammy limited should survey their consumers interest and segment the market based on the outcomes, this is essential as it will proffer a clear insight on the products to be offered in relation to satisfaction of consumers, (Kotler, 2001).
Behavioralistic Segmentation
Under this aspect the firm explores the actual consumers behavior towards their products and offering solutions based on the outcomes. Segmenting the market based on this aspect is essential as it helps the firm strategize on variables such as; benefits sought by the consumers, usage rate, the current brand loyalty to the consumers, usage status and occasions. These aspects are essential in segmenting a market based on the products as it helps the firm discover regions or aspects to intensify on and resources to be used.
Other aspects that the firm can hold in relation to industrial market segmentation are aspects such as location of the company, the company type and behavioral characteristics. Analysing this aspects Tammy limited can be able to identify the potentiality of the market under which is set at. This can be essential to the firm as it helps form a baseline on the need to look for other markets or areas where they can set up other strategic business units, (Mok and Iverson, 2000).
Essentiality of segmenting the market
There are vast reasons under which the firm can choose to segment the market. The need to segment the market can help the firm achieve numerous market and consumer advantages. The most essential reasons and attached benefits under which Tammy limited should segment their market are:
- Better harmonization of the customer needs
- Enhances profit for the firm
- Creates essential opportunities for growth and development of the firm
- Helps to retain more customers as the firm expands the market
- Essential for target marketing communications
- Creation of competitive advantages
In conclusion market segmentation is essential for every firm as indicated above. Tammy limited can utilize some of the aspects stipulated to help them increase sale, achieve more customer satisfaction and create competitive advantages in the market. Though some limitation such as costs on advertising, marketing and developing products may inhibit the success of the project, the firm has the potential through enacting effective segmentation strategy to achieve the stipulated goals, (Saarenvirta, 1998; Kim et al. 2003).
Question 3
Consumer buyer behavior
Introduction
Organizations have discovered the magic behind understanding both organization buyer behavior and consumer behaviors, (Kotler, 2004). There is a distinctive divergence between organizational buyer behavior and the consumer market behavior. A clear similarity on the two aspects is a defined notion that both project acts that are displayed by each when searching for, purchasing, utilizing, evaluating and disposal of products and services aimed at satisfaction of their needs. Formulating and effective strategic mechanisms that is aimed at analysing the aspects behind the behaviors stipulated by their consumers is essential in plentiful ways.
The essentiality of analysing these behaviors in Gillespie, (2005) is the need to reflect the outcomes on the products and service delivery to the consumers. Cloths and foot wares being the mostly offered products by Tammy limited are shopping goods which offer the buyers and the consumers with amble time to choose and make decisions. This proffers the need to analyse some of the factors that may limit, attribute and lead to the purchasing decisions and behaviors by either consumer or organizations. The consumer behaviors are normally projected in the consumer markets which are normally the individuals who purchase market offers for final consumption while business markets refers to the organizations that may purchase products aimed at production of other goods and services supplied to other consumers, (Fifield, 2007). Each of the behaviors projected by either party’s are discussed in the preceding analysis.
Consumer behavior
They are the acts projected by the consumers as they search for, purchase, use, evaluate and dispose products and services expected to satisfy their needs. It focuses on the vast ways that the individual consumers, families or household formulate decisions on how to utilize their resources such as money and time on the consumption of the related products, (Hutt, 2004). Analysing this ways projected by the consumers as they make purchasing decisions is essential as it will help Tammy limited identify areas to offer more resources and improve on with the aim of increasing sales as they increase customer satisfaction. There are aspects that normally influence individual consumer purchasing decisions. These aspects may be internal, external or situational or even a combination of all. Identification of these factors by the firm such as Tammy limited is essential as it forms baselines’ of their product development in relation to increasing sales and customer satisfaction. These aspects that may limit the purchasing of the products offered by Tammy limited by their consumers on purchasing decision making process are analysed in the preceding preview, (Kim et al. 2003).
External influences
This are normally factors that may limit the purchasing decisions of the consumers based on their external surroundings. The variables under this aspect are normally; family and households, opinions from those in authority, word of mouth, reference, groups, culture and social class. Establishing these factors among their consumers is essential in governing and identification of the product response. These aspects are essential in reference with the products and services offered by Tammy limited. Cloths and foot wares are some of the products that may receive marginal impact based on the reactions projected by the external influences as the consumers making purchasing decisions, (Kotler and Armstrong, 2004).
Internal influences
This is one of the major influencing factors based on the consumer behaviors. It entails variables such as motivation, perception, attitudes, learning, personality, self-confidence, life style, age and gender. The most essential variable that should be held into account is the motivational aspect. This is normally the propelling force within individuals’ notion on the need to purchase a product. The unfulfilled need ignites a force that derives this factor. Analysing this aspect (motivation) is essential for Tammy limited in relation to developing products aimed at satisfaction of the unfulfilled need. Need are every individuals companion, though they may be self ignited some are propelled by other individuals. Innate needs which are needs that are essential for human survival or what Maslow termed as psychological or biogenic needs are essential for human survival such as food, clothes and shelter. The acquired needs are normally defined by other factors such as culture, they include, self-esteem, prestige, affection and learning. Tammy limited offers on the most essential need (psychological), for human survival. The firm can use this discovery to develop more needs based on the evaluation of the consumer needs. This can be achieved by developing products that fully satisfy human needs,( Galloway, 2002; Kotler, 2001).
Situational factors or influences
These are the factors that may derive an impact on the consumers purchasing decisions. This are normally factors such as the physical surrounding, social surrounding, and time, purpose of purchase and antecedent states. They are essential aspects to the firm in relation to development and offering products aimed on the current or projected occurrence changes or factors, (Fifield, 2007).
Consumer buying decision process
These are series of steps that clearly stipulates some of the acts that the consumers display when they are making purchasing decision, (Baker, 2006). They are:
Problem recognition
This is where a consumer recognizes the need for a product based on a problem. The firm can identify the problem or create the problem and develop products aimed at fulfilling the problem.
Information search
This is the next step executed by the consumer after identification of the problem. This step is essential for the firm for it helps to avail all the essential information about the product to the consumers.
Evaluation of alternatives
Under this step the consumer evaluates of the other products available in the market that can satisfy the same wants. This step is essential to Tammy limited as it calls for the need to evaluate the competitors’ products and offer competitive product to win consumers decision.
Purchasing decision
This is done by the consumer after evaluates some of the above stipulated aspects. Tammy limited evaluating this step is essential for the preceding steps.
Post purchase decision
This is normally defined by aspects such as; customer satisfaction, dissonance and consumer loyalty. This is crucial step as it helps the firm discover whether their product satisfied their consumer needs or not. Decisions to improve the product are normally made based on the outcomes of this step.
Organizational buyer behavior
This is composed of organizational customers which constitutes of profit and non-profit making organizations, businesses governments or agencies that may purchase products for running their organization, (Malhotra, 1999; Galloway, 2002).
Business buying behavior
This is done in reference to some of the stipulated steps by consumer behaviors. They proffer the following steps.
- Problem recognition
- General need description
- Product specification
- Supplier research
- Proposal solicitation
- Supplier selection
- Order-routine specification
- Performance review
The stipulated steps normally define the behaviors organization in their purchasing decisions. Identification of the essentiality and composition of each step acts is a guideline for Tammy limited to attract or maintain organizations’ which purchase form them. They are essential in relation to developing an effective marketing strategy aimed at offering competitive products and services to the organization. Creating effective relationship by these organizations is essential for bulk buying hence increasing sales leading to growth and development of the firm, (Kim et al. 2003).
In conclusion analysing the behaviors projected by the consumers and organizations is essential in every aspect. Offering satisfactory services in each of the projected behaviors by each of the party can marginally help understand the needs of every consumer. Identification of the needs of these consumers as projected on their purchasing decisions is one of the essential steps that the firm needs to make in relation to growth and development. This not only increases sales but ensures that the business offers products that satisfy their consumer needs. Clothes and foot wares requires a deep analysis on the consumer behaviors and factors that influence their purchasing. The firm should then formulate mechanisms aimed at ensuring that the influence is tamed, with essential information provided. This can help the firm create a competitive advantage in the market achieving market dominance.
Reference
A. Caroline Tynan (1987), Market Segmentation, University of Strathelyde, Glasgour
Cornish, P (1981), Life cycle income segmentation-SAGACITY, Admap, 17-10
Cunningham S. M (1967), Perceived risk and brand loyalty, Risk Taking and Information Handling in Consumer behaviors, Harvard University Press.
Ajzen, I and Fishbein, M. (1973), Attitude and normative variables as predictors of specific behavior, Journal of personality and Social psychology
Hutt, M.D., Speh, T.W. (2004) Business Marketing Management. Hagerstown, MD: South-Western
Porter, M. (1998). Competitive Strategy: techniques for analyzing industries and competitors. New York: The Free Press
Kotler, P., Keller, K. (2006). Marketing Management. New Jersey: Pearson Education Aaker, D., Aaker, V., Kumar, G. 2007. Marketing Research. New Jersey: John Wiley & Sons, Inc
Kotler, P., Armstrong, G. (2004). Principles of Marketing. New Jersey: Pearson Education
Kotler, P., Pfoertsch, W. (2006). B2B Brand Management. Heidelberg: Springer
Meldrum, M., McDonald, M. (2007). Marketing in a Nutshell. Burlington, MA: Elsevier Ltd
Baker, M. (2006). Marketing. Scotland: Westburn Publishers Ltd
Malhotra, N. (1999) Marketing Research: An Applied Orientation New Jersey: Prentice-Hall
Fifield, P. (2007). Marketing Strategy. Great Britain: Elsevier Ltd
Gillespie, J. (2005). Broadening and strengthening the consumer base of the US wine market. Presentation made at the 2nd International Wine Marketing Symposium,Rohnert Park,CA, USA
Galloway, G. (2002). Psychographic Segmentation of Park Visitor Markets: Evidence for the Utility of Sensation Seeking. Tourism Management 23:581–596.
Kotler, P. (2001). Marketing Management. Englewood Cliffs: Prentice-Hall
Mok, C., and Iverson, T., (2000). Expenditure Based Segmentation: Taiwanese Tourists to Guam. Tourism Management 21:299–305.
Saarenvirta, G. (1998). Mining Customer Data. DB2 Magazine 3(3):10–20.
Kim, J., Wei, S. and Ruys, H.,(2003). Segmenting the Market of Western Australia Senior Tourists using Artificial Neural Networks. Tourism Management 24:25–34.
