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Marketing - buyers

Extracts from this document...

Introduction

I. Introduction In a market, there are buyers, and these buyers are different in one way or another in most cases. These buyers can differ in needs, wants, location, buying behavior, and resources. To make the best marketing plan a marketer can come up with he must first find his niche or his target market. In order to market your product or service efficiently, it is imperative that you tailor your marketing and sales efforts to specifically reach the segment of population that will most likely buy your product or service. It is critical that before anything else; first determine or clearly identify your primary market. By doing so, the firm's energies and funds then can be spent more efficiently and in pursuit of profits for the company. If the company doesn't know who its customers are, how will it be able to assess whether it is meeting their needs? Since success depends on the firms being able to meet customers' needs and desires, it must know who its customers are, what they want, where they live and what they can afford. This is where finding the target market becomes important. In finding the target market a company or marketer must go through 3 steps. The first and the most crucial process among the steps is market segmentation. Market segmentation by definition: "is the process of dividing the market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or market mixes." It is a business function wherein the marketer identifies the differences and similarities between certain groups of people, so he can divide the market into smaller groups thus coming up with smaller and better defined target market possibilities. ...read more.

Middle

This could be seen in companies that sell clothes, there are shops that sell clothes that appeal to ravers such as "Havoc". Buyers of havoc have a personality of being dark, full of rage, furious, and just very open and comfortable with expressing their personality. On the other hand, an example of a company that sells clothes is "Folded n Hung." Buyers of this shop tend to be casual, conservative, and prestige conscious. We could see two different shops that cater to two different group personalities but both have the same demographic variables. Lifestyle: Marketers that use lifestyle as a way of segmenting the market must be very careful. Not all lifestyle segmentations do work and this can create great losses for one company. When we talk about lifestyle, it is the buyer's way of living. It concerns what the buyer does, how he does it, when he does it, etc. in a day-to-day basis. What people buy reflects the interests and the lifestyle of the buyer. An example of a business that used lifestyle segmentation is a company that makes microwavable and ready-made food products. People that are always on a hurry, too busy, and never have time to prepare a meal for themselves is a lifestyle that microwavable food manufacturers can concentrate on. These kinds of products will be very appealing to those with a very busy lifestyle. Values: Marketers also use values segmentation. They divide the market according to their beliefs, values, and their principles. Marketers think that if they can please the people's desires, values and beliefs, it can possibly influence the buying behavior of these consumers. A good example of this is the issue now about fighting to save the sharks, not far back sharks fin soup was a delicacy and a well bought one at that. ...read more.

Conclusion

The wagon was another illustration of effective market segmentation on the part of BMW. As market segmentations first goal is to identify smaller and well defined target groups, BMW did it so well. The smallest and most defined target market BMW has by far come up with was the market for its super 3-series coupe the M3. The M3 was targeted at a market of a different level; these were the driving enthusiasts of the highest level. With no demographic variables to really considered for this market. BMW's creation of the M3 catered to the sports car enthusiast; social class standing being A; and a lifestyle befitting the rich and famous. This was the driver who loved to play and could afford to pay. BMW merely provided the toys for them to play with. This market segment though seemingly simple was the most delicate to come up with. But yet in the end BMW's segmentations proved effective to this BMW owes its success. V. Conclusion Seeing the examples mentioned above it is obvious that market segmentation is not merely done by choosing a segment and then catering to it. It involves a study, and a careful analysis of the different combinations a marketer can come up with. This delicate mixing and matching can spell the success or failure of a given target market. And only effective market segmentation can ensure a thriving target market, and later a marketing strategy catering to that market. VI. Sources 1). www.bmwcars.org 2). www.udel.edu/alex/chapt9.htm 3). P.Kotler, Marketing Management, Analysis and Control, 7th ed. Prentice Hall, NY, Englewood Cliffs, NJ, 1991 Table of contents I. Introduction page 1 II. Market Segmentation page 2 III. Variables to Segmentation page 3 IV. BMW page 9 V. Conclusion page 11 VI. Sources page 12 Marketing BA-334 Mr. Ochosa Marco Ignacio Lacson Santos 0523-0600-0193 1 1 ...read more.

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