It is a management tool for the selling manager in the critical task of picking out a target market for a given manufactured good and planning an apt selling combination (Dolnicar et al., 2018). It forms the basis for marketing success. Segmentation is all about creating divisions. The primary cause is the assumption that different customers have different needs that need to be addressed differently. There exist four prior market segmentation:
Strategic locating is a company’s relative position within its industry matters for performance. It makes selections of how the industry will maintain a gainful position in the market. The essential elements are; offering distinctive and valued products to target customers, lowering prices below competing alternatives, and striking a compelling blend of diversity and low prices (Wu, 2019). For example, Gatorade, a sports drink from Pepsi, is a high-priced product, while PowerAde from Coca-Cola is cited as a low-price alternative inside a similar marketplace. Gatorade’s customers are willing to pay a high price; Coca-Cola exploits the need for customers who cannot afford the high-priced Gatorade with low-priced PowerAde. Coca-Cola products are differentiated and positioned as top brands in different categories.
Chain of Distribution
A candy company will utilize a longer chain of distribution since it reaches the general market, with consumers scattered worldwide. The company will need to provide candy at its customers’ convenience (Martín & Taboubi, 2015). As for restaurant equipment, the products are expensive, technical, and customized to a customer’s need and have a small number of buyers, hence the short distribution chain.
Customer’s Attitude towards Business
The best strategy to changing the consumers` attitude is by persuasion. Persuasion is how a message prompts a change in opinions, insolences, or actions (Myers, 2011). The restaurant should weave a carefully crafted message with stories and visuals to create an emotional experience for the public. The message should invoke a sense of need.
Businesses have a variety of pricing strategies to choose from based on their needs. Below is a simple explanation for four commonly used pricing strategies:
The cost-volume-profit analysis helps to determine the relationship between total sales, total cost, and profit. The above is useful in planning profits (Bhasin, 2020). Hermes and Rolex brands target wealthy consumers to whom exquisite and elegance matter more than money. Hence, their market is always open.
Bhasin, H. (2020. January 25). Marketing mix of Rolex. Marketing Mix. Retrieved February 21, from https://www.marketing91.com/marketing-mix-of-rolex/
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.
Martín-Herrán, G., & Taboubi, S. (2015). Price coordination in distribution channels: A dynamic perspective. European Journal of Operational Research, 240(2), 401-414.
Myers, G. (2011). African cities: alternative visions of urban theory and practice. Zed Books Ltd.
Wu S. (2019). Strategic Positioning. Strategy for Executives. Retrieved February 21, from https://strategyforexecs.com/strategic-positioning/