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Marketing Case Study. From many various factors for segmentation, we can choose two bases of segmentation for Pleasant Company which is Demographical and Psychographic Segmentation.
Free essay example:
Diploma Business in Administration and Marketing | Assignment 2- Case Study
Have many steps to classify and recognize for different segmentation in marketing strategy. Market segmentation can be defined or categorized as the consumers have likeness in demand personality, need or want. To be a good marketer they must know what category their consumers belong to, what their consumer want and how many for the customer can afford, etc. Market segment enable to marketers of consumer goods and services identify what they want in the market and sometimes provide the marketer with chances to expand their goal market or enter a new market to satisfy more effectively the specific of particular consumers. It shows that this is quite an effective habit of marketing strategy rather than all potential clients. This also allows for this company protected themselves by targeting a part of that market and specialize in features that consideration to their customers. However, after research and analyze the customer’s goal. They have many factors for segmentation such as Demographical, Geographical, Behavioral and Psychographic Segmentation.
From many various factors for segmentation, we can choose two bases of segmentation for Pleasant Company which is Demographical and Psychographic Segmentation.
Let me elaborate more on these segmentations as below.
Demographic Segmentation is famous base for segmenting shopper groups because client needs and wants preferences and usage rates. Demographic segmentation can be seen as the major factor when marketers need to locate a target market, as it is often the most accessible and cost-effective way. Demographic Segmentation consists of identifying which variable like age, family size, sex, income, gender and social class.
For example, we can implement the Demographic Segmentation in American Girls Collection which is on the basis of age. It targeted on young teens ranging from 7-12 years old. Different gender in age will also have different needs and wants. For example, most of the girls will prefer bright color such as pink, white, red and so on whereas boys will prefer color such as black, blue, grey and so on. This store may be targeted on middle to higher social class as they believe in boomer parents would pay more for one that was fun and educational for their children. Pleasant Co also comes with the idea that their product must be different and special from what people can find from the market. Income can only specify the affordability of the consumer to purchase for the product. Income is one more strategy used by some manufacturer as well. Any manufacturers target on price responsive for consumer but some may target on high revenue consumer. However, most of the manufacturers believe to obtain a low cost with high quality products. It is the most important principle is to market and sell the products as many as possible. When you produce more than you sell, that will be the failure in the marketing strategy of the company.
Psychographic Segmentation is one of the successful factors for market to the marketer has got to implement in order to successfully maintain the market. This segmentation consists of different groups based on socioeconomic status, lifestyle, activities, opinions, interests and personality characteristics.
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There are four (4) types of marketing management philosophy which is implemented by Pleasant Co such as Production Concept, Product Concept, Selling Concept and Marketing Concept.
Production Concept means the company knows its own product better than anyone or any company. The company can produce lot of product and export own product to another company. Some company maybe don’t have a good product same like this company. The company knows best what will work in designing and producing the product. The company also assumes it knows what is best according to customer’s demand. For example, Company need to do market research such as survey etc and identify what is the product design that is preferable to customer e.g. what type of dolls that young girls prefer to have, what kind of accessories that attract the girls from their first impression. The advantage of this production concept is that when we know what is our targeted customers’ demand and design according to their expectation then we can sell what we produce.
Marketing Concept is the concept that allows the company to focus on satisfying customer’s needs and wants. This concept make customer get impress for your product and customer want to buy your product because your product is good and better than another company. For example, the company may decide to produce a product with the low cost as minimum as possible but high quality products to be more competitive in the market. The advantage of this marketing concept is that when the new and existing customer satisfied with the products, they will become repeat customers in future and long term basis.
Selling Concept means this orientation assumes that consumers will either purchase or not purchase enough of the company’s products unless the company makes a substantial effort to stimulate their (consumers) interest in its products. This can include price of the product whether the value is worth the product. When the customer feel that the product is as good and better as its value, they will not hesitate to purchase the product in future and they will not even make comparison with other similar products from competitors.
Product Concept, the company makes their product like the most quality, good design and innovative features. Many people choose for the product, they better choose a good product than not good product for their use. For what I believe is that every products needs continuous improvement by launching new designs periodically with a new innovation and technology of their product. But still, marketing research is still needed to know customer demands before for their designing a new product. The advantage is that when the product is keep improving and advanced which makes the customer become special in which the customer cannot find in other similar product, the customer will look forward to the next launch and the product become more competitive in the market.
Marketing Mix is the controllable elements of a product’s marketing plain commonly termed as 4P.
Product, many good products makes its marketing by itself because it gives benefits and satisfaction to the customer. For example, when customer purchase a doll, it’s good to include accessories e.g. clothes, jewelry as a bundle or package instead of selling it separately which incurred more cost. Aside of this, it must also have good quality product.
Place, on how to reach the targeted customer. This can include a strategic location to aim the targeted customers. For example, the stores can be designed as a little girl’s delight with a very comfortable ambience that visitors can conveniently browse to purchase their dolls; books and clothing; view a musical revue and have tea, lunch or dinner at the Café at American Girl Place.
Price, is the amount that customer pays for it. Price should be competitive and reasonable for the product itself. What we can apply in American Girls Store is that when they released a new dolls like Kanani and her collection with two outfits, both books, her pet, paddleboard set and more, its price ranging about $100 to $200 whereas some other types of dolls without bundle set is sold about $20 to $50.
Promotion is about communication and presentation of the products to customers to market and sell your product. Advertising, public relations, personal selling and sales is the four elements. Pleasant Co can do advertising through radio, newspapers or a TV ads showing celebrity with their family & kids. I believe celebrity image also play a big part in public relation to convince the end user. Personal selling commonly practiced in the shop itself when they market the product to the customer directly. The staff must be able to give good service and convince the customer on the spot, try to present good point or benefit of the products. This is very important to turn new customer into repeat customers. We can also apply sales promotion to boost the revenue, practically promotion is a very effective way to attract new customer.
There are many types of marketing research technique such as Primary Research, Secondary Research, Attitude surveys or Opinion, Motivation Research and so on. For this Pleasant Company, I may suggest to implement two types of them which are Attitude surveys or Opinion and Motivation Research.
In Attitude surveys or Opinion, This structured questionnaire normally may obtain a large scale of data to find out the estimated percentage (Quantitative information) through random sampling frame who give a simple and straight to the point answer. This attitude surveys often related for Consumer Company sponsored surveys where typically, questions are about the product or service. Pleasant Co may impose an electronic survey (convenient with a button) on the products at the cashier at their retail shops, American Girl Place and so on whenever customer pays for their products. It can be in terms of simple “Smiley” face to determine the satisfaction of the products (Qualitative information). When this information gathered, we can at least know the initial or basic response from consumers in which the company can improve the initial stage quickly in short notice.
Another technique that is proven to be good is Motivation Research; this is to discover the underlying motives or purposes for customers’ behavior. By using a structured questionnaire, consumers may only answer it with the first response out of their minds and may not be conscious about the real reason behind. However, by using tests like sentence or story completion which need to state reason of “Why” for each answer, motivation research allows us to understand the responses of consumers and their unconscious responses (Qualitative information). Such intense motivation research may only gather a smaller scale of data sample (Quantitative information) from consumers. However, it had proven that the motivational studies especially useful in making, editing, creating advertising in design response, which will win good response. In my opinion, Pleasant Company may implement a motivational research in the warranty card when consumers purchase the product. It clearly shown that consumers are expected to fill in their warranty card for their purchased products to protect the durability of the products. The warranty card might be filled by consumers at home or once they have free time. Such unstructured questionnaire form may be added into the warranty card or whatsoever so that they may fill it together during their free time. This may also be a way to gain a positive response from this motivational research. This motivation research is to give producer a deeper understanding of what consumers needs and wants, complaints, comments, critiques so that producer may improve in terms of design or function of the products or even service quality of the staffs in the service industry.
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