STRATEGIC MARKETING:

ASSIGNMENT NO: 2

NAME: FIZA AKHTER

CLASS ID: 102497
CLASS: MBA-4
DATE: 28-09-2019
SUBMITTED TO: PERVEZ GHAZI SHEIKH
QUESTION:1 How many levels and types of Market Segmentation do you know? Discuss each
level and type and their importance for Strategic Marketing?
ANSWER: Market Segmentation:
Divide a potential market into distinct groups of buyers with relatively
similar product needs, characteristics and behavior.
Segmentation is important part of marketing strategies to company, in
order to boost their sales which they can create and build of competitive
advantage.
Different Levels of Market Segmentation:
Segmentation models appropriate to developing advertising programs which may
be a bit different to those used to develop marketing strategy. Levels of market
segmentation are:

STRATEGIC SEGMENTATION:
 Link to management vision and strategic intent of corporate strategy
and emphasize products benefits that different types of buyers seek.
 Example: Ticketing department:
i. Corporate clients
ii. Walk In/Phone Call Clients

MANAGERIAL SEGMENTATION:
 Concerned with allocating resources around segment targets,
including them in marketing plans and aligning organizational
processes around them.
 Example: Wholesaler Agents conducting FAM trip.

OPERATIONAL SEGMENTATION:
 Concerned with the marketing program changes needed to reach a
segment targets with advertising and promotions and with
distribution system.
 Example: Promoting MATTA Fair through various of channels
distributions.
 MASS MARKETING:
 Some products to all consumers ( no segmentation)

SEGMENT MARKETING:
 Different products to one or more segments (some
segmentation)

NICHE MARKETING:
 Different products to subgroups with in segments(more
segmentation)

MICRO MARKETING:
 Products to suit the tastes of individuals and
locations(complete segmentations)
 LOCAL MARKETING: Tailoring brands / promotions
to local groups.
 INDIVIDUAL MARKETING: Tailoring products /
program to individual customers.

Strategic Segmentation:
Strategic segmentation is more focusing on the goal of identifying
market segments that differ in their purchasing power, goals, aspirations and
behavior, in ways of relevant to identifying new product and value opportunities.

Example:
In YSL Travel and Tours, management decided to have separate division of
ticketing department, which one division handling corporate clients and another
one will be dealing with walk in or phone calls customers. From management
views, by doing this, they can monitor sales performance and financial flows from
these types of customers base as well as easy for them to keep in touch and get
along with guests.
Managerial Segmentation:
Managerial segmentation is the more familiar level of
managerial planning and resource allocation and operational issues of sales and
advertising, which including their marketing plans as well as aligning organizational
processes in between organizations itself and their suppliers.

Example:
Wholesalers agent will conducting familiarization trip (FAM).Familiarization trip is a
low-cost trip or tour offered to travel agents by a supplier or group of suppliers to
familiarize the agents with their destination and services. Usually, wholesaler
agents will pair up with respective airlines in order to get special price ticket.

Operational Segmentation:
Operational segmentation focusing on marketing program
changes needed to reach segment targets with advertising and promotions with
distribution systems.

Example:
Agents already started to spread news for MATTA fair March 2015 from various
channel, which some agents advertising it through their company websites or blog.
However, company or organizations need to match their abilities and capabilities to
sell products in order to satisfy their guests.

Types of Market Segmentation:

There are 4 different types of market segmentation and all of
them vary in their implementation in the real world.
1) Demographic segmentation.
2) Geographic segmentation.
3) Psychographic segmentation.
4) Behavioral segmentation.

.
Demographic segmentation: Who?
The process of dividing a market through variables such as: age,
gender education level, family size, occupation, income and more. This is one of the
most wildly used strategies amongst marketers.
For example: A product may success in one area of the country and fails in another
area due to the concentration of a particular culture or nationality. Toys and clothes
are usually marketed to particular ages and genders.

Geographic segmentation: Where?

Target customers based on a predefined geographic boundary.
Differences in interests, values, and preferences vary dramatically throughout cities,
states, regions, and countries.
For example: A company specializing in surfboards and other beach sports equipment
will focus its efforts on states such as Florida and California where surfing is a popular
sport.

Psychographic segmentation: Why?

Focus on the intrinsic traits the target customer has.
Psychographic traits can range from values, personalities, interests, attitudes,
conscious and subconscious motivators, lifestyle, and opinions.
For example: Those with liberal political views may not be interested in a new book
authored by a very conservative author.

Behavioral segmentation: How?

Break down the way customers go through their decision making and
buying processes. Attitudes towards the brand, the way they use it and their
knowledge base are all behavioral examples.
For example: A customer who hires a cleaning service once a week versus one who
hires the same service once every six months.
Levels And Types Importance For Strategic Marketing:
After segment the market, company able to revise their business model in
response to how social forces are changing the lives of different types of customers,
creating a new steps how to position their brands or products or services, as well as
they will identified in which area that company or organizations most familiar with.

Companies will not survive if the marketing strategy is dependent upon targeting an
entire mass market. The importance of market segmentation is that it allows a
business to precisely reach a consumer with specific needs and wants.

In the long run, this benefits the company because they are able to use their
corporate resources more effectively and make better strategic marketing decisions.
While market segmentation is initial step in marketing due to its importance to
define the target customer, designers need to clearly understand the market segment
for the following reasons:

Understand their customers:

At the beginning of the design thinking process, the design team needs to apply a
research phase where they tend to understand their audience needs and
subsequently build a persona that represents the target audience. The market
segmentation helps the design team to define the research scope and subsequently
build a product that meet with the customer’s needs.

Align with the marketing team:

When the company aims to establish a new brand in the market. it tends to define the
market segment that need to addressed. This can be in an early stage of product
development stages. Both the marketing and design team should have a clear
understanding about the targeted market segment in order to ensure that both teams
are aligning their strategies together.
It is important to effective market driven strategy that these different aspects of
segmentation should be aligned and integrated.
QUESTION:2 Explain the Strategic Analysis of Market Segments?

ANSWER: Strategic Analysis Of Market Segments:

The step in segmentation process include the assessing and
assigning the market potential for each segment and determining whether that
potential is growing, leveling off, or declining. This analysis will allow the company to
evaluate and select the market segments of highest potential for volume and profit
contribution. The major areas of analysis include:

 Customer analysis

 Competitor analysis

 Positioning analysis

 Financial and market attractiveness.

Then, the company will be able to match or fit the products and services to the
various market segments. This matching process provides a way of identifying where
the company is strong or weak and where the greatest market potential lies. This
process also has implications for new product development or market growth of the
company.
Framework that allows analysis of:

1. Market segments and market potential (without company bias).

2. Matching of existing products and services to segments.

3. Implication of where the company needs to focus product or market

development.

4. Penetration or market share of various market segments.

5. Implication for functional tasks such as the sales planning and advertising.

6. Identification of products, services or market segments to be emphasized,

diminished or discontinued.
Customer Analysis:
Customer analysis can be defined as a collection and evaluation of data
associated with customer needs and market trends, through customer focus groups,
customer satisfaction measurement, field testing and etc.
The customer analysis portion of a marketing plan deals specifically with the
customer segments that the company serves. This portion of the plan must do three
things.

I. Identify the target customer or the best customer for the company.

II. Then, show what the needs of the customer are;

III. Links the above points together by identifying how the company’s services and
products meet the needs of the customer and satisfies the customer.

When forming segments, it is useful to find out as much as possible about the
customers in each segment. The objectives are to find descriptive characteristics but
are highly correlated to the variables used to form the segments. The discussions of
customer profiles include information needed to profile a product market. Large
markets involving many competitors make it profitable for research firms to collect
and analyze data that are useful to the firms serving market. Customer satisfactions
depend on the perceived performance of a product and supporting services and the
standards that customers use to evaluate the performance. The customer‘s standards
often complicate the
Relationship between organizational product specification and satisfaction.

Example: Kuoni UK, a destination management company (DMC), has been requesting
their clients to fill up a survey and feedback forms to gather and collect information
on them, which later will be analyzed to find out the perceived standards and
satisfaction of the customers towards its travel packages.

Competitors Analysis:
Competitor analysis is about strategic technique used to evaluate outside
competitors; the analysis seeks to identify weaknesses and strengths that a
company‘s competitors may have, and then use that information to improve efforts
within the company.
Competitor analysis has two primary activities:

I. Obtaining information about important competitors.

II. Using that information to predict competitor behavior.

Porter presented a framework for analyzing competitors. Objectives and assumption
are what drive the competitor, and strategy and capabilities are what the competitor
is doing or capable of doing. A competitor analysis also should include the more
important existing competitors as well as potential competitors such as those firms
that might enter the industry, for example, by extending their present strategy or by
vertically integrating.
A common technique is to create detailed profiles on each of major competitors, in
which the process is known as competitor profiling. These profiles give an in-
depth description of the competitor‘s background, finances, products, market,
facilities, personnel, and strategies. In addition, scanning competitor‘s ads also
can reveal much about what that competitor believes about marketing and their
target market. Similar techniques can be used by observing a competitor‘s search
engine optimization targets and practices.

Positioning Analysis:
Positioning analysis is a process of analyzing how a company‘s current
brand is perceived by the marketplace. When identifying target market opportunities,
a company needs to compare the way its brand is perceived with the needs of the
targeted market. Positioning analysis shows how to combine product, distribution,
pricing and promotion strategies to favorably position the brand with buyers in the
segment. With this identified information relating to positioning, the positive and the
negative, a marketing manager can identify opportunities that either allow for:
1. Identifying a better target market that can more readily identify the
true value and need-meeting potential of the brand.
2. Redesign the marketing strategy to more clearly convey the worth and
need-meeting potential of the brand to the presently targeted market.

Financial and Market Attractiveness:

The financial and market attractiveness of each segment needs to be
evaluated. Market attractiveness can be measure by market growth rate projections
and attractiveness assessments made by management. Meanwhile, financial analysis
obtains sales, cost, and profit contribution estimates for each segment of interests.
Both the segments‘competitive position evaluation and the financial forecast are used
in comparing segments. Flows of revenue and cost can be weighted to take into
account risks and the time value of revenues and expenditures.

It should be recognized that as information availability growth, the evaluation of

segment attractiveness also has the potential for identifying unattractive market
segments and even individual customers, which may be candidate for deletion.
Market Attractiveness Model:
Market Attractiveness Model can be used to determine a firm‘s product portfolio
In relation to market attractiveness and business strengths.

Segment Fit and Implementation:

One important aspect of evaluating segment is how well the segment
matches the company capabilities and the ability to implement marketing strategies
around those segments. New segment targets that do not fit into conventional
information reporting, planning processes, and budget systems in the company may
be ignored or not adequately resourced. Emphasize on action ability as well as
technique and analysis is mandates in building effective marketing strategies around
market segmentation.
The issues that impact on the operational capabilities of a company to
implement segmentation strategies are:

 Strength in cross functional relationships may be prerequisite to deliver value

to new segments.

 The ability to work with partners may be needed to develop new products and
services to build a strong position in a key market segment.