Marketing Segmentation
Marketing Strategy: 7 Steps to Market Segmentation by Otilia Otlacan
The article was written by Otlacan and she starts by defining marketing segmentation as a complex process that starts with two phases; with the first one being the identification of markets that are broad and large and segmenting the markets so as to be able to select the target markets that are appropriate in developing marketing mixes. The article argues that although marketing segmentation is increasingly becoming a buzz word, very few people understand the mechanics behind it and most businesses end up failing as a result of this. Thus, it is important for marketers to understand the key steps and dimensions behind creative market segmentation.
The first step is identifying and naming the broad market that your business aims to reach. This process calls for one to use experience and knowledge in ensuring that the identified market is not too narrow or too broad for the company. The second step is identifying and documenting the needs of potential customers. Coming up with a diversity of needs is very important. The third stage involves formulating narrow markets with each serving a specific need. These sub-markets will make it easier for one to better serve the customers unique needs. The fourth step is identifying the determining dimensions and tries to identify those that have more determining power. After determining the key dimensions, it is necessary that one should name possible segment markets and also review each of them individually. The final stages involve evaluating the behaviour of markets segments and estimating the size of each segment. Doing this will help in understanding differences, planning and strategizing to achieve success.
Mass marketing
Shifting From Mass Marketing to Micro Marketing by Ian Durell
According to the article, customers in the current market environment are increasingly becoming unique when it comes to their needs and interests and thus it is paramount that businesses put in place strategies that will understand and meet the individual needs of customers. Thus, many businesses are shifting from casting to a wide net of marketing targeting vast crowds to that targeting millions of individual customers. The shift from mass marketing to micro marketing is an area of challenge to market researchers since their drive to market to customer on an individual level requires that they utilize strategies that are more analytical as opposed to creative ones. Thus market research will play a key role in determining the attitudes of customers it n terms of not only how they think, but also how they act. Understanding these dynamics of customers can help in predicting their behavior and ultimately, their attitude.
Nevertheless, most companies isolate these two dimensions leave behavioral analysis to business intelligence or customer relationship management (CRM), which in most cases is under the tight management of IT. On the other hand, market research and attitudinal analysis are left to the market research department or outsourced. This physical separation deters the necessary co-operation among different research departments and leads to situation different levels of decision making and cultural inclinations.
Market customization
How Can Manufacturers Shift to Mass Customization? By Barb Schmitz
In this article, Schmitz asserts that, the current tough and recession weary markets manufacturers are under pressure to adopt to demand that is increasingly becoming individualized. Thus, they need to adopt strategies that will ensure they effectively respond to the needs of customers while at the same time putting in mind the need to decrease costs in the face of competitive pressure. The current market situation is whereby consumers are dictating the pace by determining the price they will pay for a good or service.
Mass customization is a new model that encompasses the technologies and systems that are needed to make sure that individual customers get value of the products and the products should be produced efficiently. This calls for flexible and demand- oriented strategies that can give customers a variety of options. Thus, in mass customization, efficiency is a key strategy. To ensure success in customization, firms must realign their technologies to ensure that there is flexibility and speed while ensuring that costs are maintained at a minimum level. For companies to justify any additional customization expenses, they need to create products that deliver enough value. In all these processes it is important to put in mind that the customers rule and thus they should always ensure open communication with customers since maintaining contact and providing feedback on customized products makes mass customization more effective and also encourages innovation and new product development.
Companies that started with 0n-demand business models as opposed to the traditional ones have proved to be more successful. It is therefore imperative that traditional manufacturers adopt more business model that are in tandem with their size and scale and can promote efficient production.
References:
Durell, I (2005). Shifting From Mass Marketing to Micro Marketing. Retrieved form
http://www.marketingprofs.com/5/durrell1.asp
Otlacan, O (2008). 7 Steps to Market Segmentation. Retrieved from
http://ezinearticles.com/?Marketing-Strategy:-7-Steps-to-Market-Segmentation&id=82831
Schmitz, B (2011). How Can Manufacturers Shift to Mass Customization? Retrieved from
http://creo.ptc.com/2011/03/03/how-can-manufacturers-shift-to-mass-customization/
