MARKETING CONCEPTS

Marketing Concepts



Marketing Concepts

The concept of Segmentation is related with recognizing a number of distinct groups of purchasers in a consumer market in order to target specific products and services for every group and segment. The easy availability of communication, product, channel, price to the consumers helps them to precisely meet the needs of large number of customers and subsequently to gain a high level of share or profit from the market. When the identification of key segments take place, then it becomes easy to conduct market research and analysis due to the process of segmentation. Normally, a finding of the research provides a good start for the marketers. In order to achieve success, executing a segmentation strategy involves supporting the organisation to deliver well for each segment. There are some major business issues which need to be considered because a proper investment is required for each segment. There are three ways through which market can be segmented that are:

(1) Demographics

In this particular segment, consumers are grouped on the basis of their characteristics such as age, gender, income lifestyle group etc. It is quite simple to reach such segments through media. However, age and other demographics are not that closely related with behaviour.

(2) Socioeconomic Characteristics

Likewise, characteristics such as occupation, education and income can be used to obtain segments that are simple to reach. These segments are good indicators of behaviour such as brand preference, price sensitivity and lifestyle.

(3) Product Usage

The best way to use the firm's product is applying behaviourally based segmentation basis. There are some significant areas which could be determined by analyzing questions regarding dispositions such as awareness, past activities that can be used in a survey and respondents would be even grouped accordingly. The main obstacle is to reach the most attractive segments. This is normally done either by employing a large-scale single source survey (such as ACNielsen Panorama) that asks consumers regarding disposition of products and media usage or by relating it with demographics. Both styles are usually defective as behaviour is rarely strongly correlated with media usage or demographics. (Achenbaum, 1972)

Role of communication in advertising and promotion

The concept of advertising that normally revolves around the communication process. The task of communication tries up to build alertness of brand. Consumer thoughts have been altered with colligating ideas regarding the products and communicates customer regarding product properties and dimensions. The essential role of advertising is to increase the probability regarding the sale of a product or a service. The promotional technique of Advertising supplements the tendency to purchase and also increases the prospect towards the product to make a decision regarding the purchase. Advertising is one of the few communication forces that are used effectively by the marketers. It makes the buyer pass through multiple stages such as action, conviction, recognition and comprehension. Therefore, this is the role of communication in advertising and promotion. (Barnes, 1971)

Repositioning Strategy

It is necessary that the repositioning of the brand must be done properly ever changing market ...