What is the most important market segment?
The importance of a market segment to a business is determined by two variables namely, the attractiveness and the suitability of the segment. The segment is considered to be attractive if it has a high growth rate, low competition, and large size. It is also attractive if the level of brand loyalty and expected profits are high. The suitability of a segment relates to the firm’s ability to serve that segment.
Thus a segment is suitable if the firm is in a position to offer goods and services that are of superior quality in it. The company should also be able to access the main distribution channel in the segment. Besides, serving the segment should have a positive effect on the image of the firm. Thus the most important segment is the one that is both attractive and suitable to the firm as discussed above.
How important is branding?
Branding is the process of creating the identity of a business and its products in the market through tools such as logos, trademarks, or a name. Thus it has three important roles that can be explained as follows. First, branding distinguishes the business in the market and makes customers identify with it. Second, it leads to effective marketing by enabling marketers to obtain information on the performance of the brand.
For example, it helps in obtaining information on the demand of the brand and the quality standards that are expected by customers. Finally, it makes advertising to be effective since the brands are usually registered and hence can not be copied. Thus branding is very important since it differentiates the business and its products in the market and this leads to growth in sales and market share.
What is the primary focus of new product marketing?
A new product is usually launched in the market at the introductory stage of its life cycle. Thus the primary focus of marketing at this stage is to create awareness about the product and to find a market for it. To achieve this objective, branding and quality standards will be emphasized at this stage. The prices can be lowered to facilitate market penetration or they can be high to facilitate the recovery of the costs of developing the product.
The product should be distributed selectively until its full acceptance by the buyers is achieved. Promotional activities at this stage should target early adopters who are ready to accept the product. Thus the main focus of marketing a new product is to create awareness and to establish a market for it.
The channels of new market communications
The communication channel options can be either personal or impersonal. Thus the available options are as follows. First, advertising can be used to reach the mass market since it can reach many people at the same time. Advertisements are done through print and electronic media. Second, sales promotion can be used to reach the market through its tools such as contests and coupons. Sales promotions help in gaining attention and give the information that directs the buyers to the merchandise. Third, direct marketing can also be used to reach customers through email and telemarketing. Public relations through the media is also an important communication channel. In this case, the consumers are reached through news articles that relate to the company and its products. Finally, the customers can be reached through personal selling that involves a direct conversation with the customers.
Is personal selling a viable option anymore?
Personal selling is still a viable option for reaching customers. While traveling to meet the customers might be expensive and time-consuming, the benefits that accrue from personal selling have far-reaching effects than other methods of selling. This is because it involves a one-on-one conversation with customers. As the salesperson interacts with customers, they develop relationships. Besides, feedback is obtained immediately. Such relationships not only help in turning potential customers into actual customers but also enhance brand loyalty as customers get convinced of the quality of the products.
The future changes in how we market
The marketing trends in the future will be shaped by three factors which are as follows. The competition will determine the intensity of marketing and the approaches to be used in marketing. Technological advancements especially in communication will determine the techniques of marketing in the future. Finally, the aim of marketing will change as the needs of the customers change.
Lessons learnt in the marketing management class
The subject has enabled me to understand the concept of marketing and its application in a business environment. I have particularly gained knowledge in marketing concepts such as planning, branding, segmentation, and communication channels for reaching the targeted buyers. Thus the knowledge will inform my future decisions regarding the development of marketing plans.