Wednesday, July 31, 2019
Factors to Consider When Deciding on Which Market Segment to Venture
Question1(a) Factors to consider when deciding on the segments to serve as a market * Population The density of the people in a given place is a very important aspect to consider when segmenting a market . A densely populated area is usually preferred as a destiny to market the product. * Consumer behaviour How a consumer perceives when purchasing or deciding to purchase a product is very vital. * Social classDifferent consumers have different classes . in this case a seller should consider the class of the various consumers before deciding on which segment to choose or segmenting the consumers into certain target group * Attitude towards the product Different consumers have different perspective about the product in different regions ,consumerÃ¢â¬â¢s attitudes about the product in place should be factored in when deciding on the market segment * ReligionDifferent consumers have different religions and in this case some may not consume a certain product based on their religion, a g ood marketer evaluates the demographic and cultural factors before venturing and selecting the appropriate market segment. Question 1(b) Message execution style to capture the target markets attention and interest Packaging style How the goods appear to the consumer influences his/her buying decision ,thus how the labels, container appears determines a lot on how the consumer creates interest in that productBrand name Most consumers have become constituent in in purchasing or consuming certain products and they will always look for these products with the brand name they are used to. Clear descriptions How the product description in terms of how it is used ,its ingredients, determines a lot how that product will capture the attention of the consumers. Shapes and sizes Consumers belong to different classes and how the products are broken down into different sizes and shape determines how that product will capture the attention of the buyer PriceMost consumers prefer a quality product with a reasonable cost ,in this case the seller should consider competitors before setting his/hers price inorder to avoid customer loss through higher prices. Question 2(a) Components of the marketing information systems I. Internal reporting system This involves the records of income ,expenditure, creditor or debtors and consumers II. Marketing intelligence This involves getting information from another different person to get to know whether you are performing in the market or not III.Marketing research This involves identification of a problem and finding a solution to that problem IV. Marketing models This involves the use of time series ,linear programming ,analysis of variance ,progression analysis, sensitivity analysis, in trying how the market operates Uses and functions of public relations to organization a) Used to inform consumers about the new product in the market, through public relation consumers get to know about the new product in the market b) Used to teach the c onsumers on how to use the new product in the market .It is through public relation that the consumers are taught how to use the new product in the market. c) Enables consumers to know where and how to get the organizational goods d) Used in link ling the consumer with the organization thus public relation facilities then bringing of the gap between consumers and the organization Importance of public relation to the organization i) Creates good image of an organization. An organizations image is sustained through public relation. i) Public relations enhances the product awareness that is marketing of organizational product is enhanced iii) Public relations enables the establishment of long and lasting relationship with the consumers iv) Creation of trust about the organizational products by the consumers, due to a close relation by the consumers the organization product will be trusted by the consumers Question 3(. a) Product development process a) Idea generationThe product to be d eveloped is established at this very vital stage ,idea generation can be through archives ,business journals or successful entrepreneurs . b) Idea screening The idea found is measured and its viability weighed before further developments Concept development and testing c) Concept development and screening How to create the product and addition of more features to make the product and testing. d) Business analysis The market is analysed whether the product will fit in the market or not? ) Product development The product itself is then developed that is all the features encompassed to the product and forming the final the product. f) Market testing Product is taken to the market may be taken in samples or the product is fully released to the market g) Communication and adoption After testing the market and finding that it is performing ,large volumes of products are then produced for commercialization 3(b) Methods available to a firm to set their advertising budget Cost analysisA firm considers the various media and avenues to be used and the costs to be associated with each the media to be used should not be too costly to the extent of eating on the profits Market analysis A firm measures the available market and conducts a swot analysis thus a firm will play their advertising budget depending on the competitors ability and the general market competitiveness. Target population A firm will set their advertising budget basing on the geographical area of the targeted population Product natureThe nature of the product will have to be put into consideration when planning for the advertising budget, If the product is highly involved or it is a new product then it requires allocation of more funds. 4(a)Role played by the middlemen in distribution of goods Breaking of bulk Some middlemen may modify the shapes and size of the product into flexible and portable items for ease of transportation or storage. Location Middlemen enable consumers to obtain goods easily by avai ling themselves in strategic places convenient to the consumer. Repackaging of goodsMiddle men pack products into desired packages such as containers Disseminating information Middlemen get first hand information about products from the consumers and submit the data to manufacturing firms for marketing research ,and also giving vital information to the consumers about the product(manufacturer) 4(b)New product pricing strategies a) Cost based strategy A marketer will price the product based on the inputs used when manufacturing the product. b) Competitor based strategy A marketer will price his/her goods based on the price of the competitor goods. c) consumer based strategyA consumer is the king/queen of the market and the marketer will price his goods basing on the willingness and ability of the consumer to purchase that product in that price. d)product based strategy a marketer will price his goods based on the nature of the product Question 5a. major influencers on consumers purch ase behaviour 1. Culture the cultural belief and norms of the consumer will influence his /her purchasing behaviour. 2. Social factors such as the family ,age, occupation will influence a lot on how the consumer will purchase the product. . Personal factors such as the attitude and economic status of the individual will influence his/her decision to purchase a product. 4. Phys logical factors like personal attributes will affect a consumers purchasing behaviour 5b stages in a buyers decision making process for a major purchase a) Awareness a consumer should get to know all about the product he/she wants to purchase b) Interest a consumer then develops the interest for the product. ) Evaluation a consumer will then evaluate the product in questions based on various alternatives d) Trial after a consumer has chosen the right product he/she will then put it on trial e) Adoption if the consumers likes the product he/she will then make a purchase question 6. (a)elements of the promotion mix dvertising Refers to any paid form of non personal presentation and promotion of ideas,goods and services of an identified sponsor personal selling refers to face to face persuasion of a prospective buyer to buy a product publicity refers to a non paid promotion of ideas ,presentation of products and doesnÃ¢â¬â¢t necessarily need an identified sponsor sales promotion refers to activities that stimulates consumer purchasing 6b. trategies that can be used in the stages of the product lifecycle a) Introduction stage it is the initial stage of product development and its characterised by low sales ,low profit or nil profit the marketing strategy to be employed at this stage is the promotional strategy. b) Growth stage there is a steady rise in profits ,increased sales and established market share at this stage the marketer can diversify the product to increase its outlook and market stability. ) Maturity stage at this stage the profits begin to decline as there new entrances in th e market strategy to be employed here is diversification or turn around. d) Decline stage here the sales become completely low or none ,profits diminish and cost of production super cedes the revenue the best strategy to approach as a marketer or marketing manager is withdrawal from the market or diversification.