Understanding of Marketing Strategy
Marketing strategy is making decisions about marketing costs, marketing mix, marketing allocation in relation to the expected environmental conditions and competitive conditions. In marketing strategies, there are three main factors that cause changes in marketing strategies, namely:
Product life cycle
The strategy must be adapted to the stages of the life cycle, namely the introductory stage, the stage of growth, the stage of maturity and the stage of decline.
The company's competitive position in the market
Marketing strategies must be adapted to the company's position in the competition, whether leading, challenging, following or only taking a small part of the market.
Economic situation
Marketing strategies must be adapted to the economic situation and outlook, whether the economy is in a prosperous situation or high inflation.
Understanding of Marketing Strategy
Marketing strategy is making decisions about marketing costs, marketing mix, marketing allocation in relation to the expected environmental conditions and competitive conditions. In marketing strategies, there are three main factors that cause changes in marketing strategies, namely:
Product life cycle
The strategy must be adapted to the stages of the life cycle, namely the introductory stage, the stage of growth, the stage of maturity and the stage of decline.
The company's competitive position in the market
Marketing strategies must be adapted to the company's position in the competition, whether leading, challenging, following or only taking a small part of the market.
Economic situation
Marketing strategies must be adapted to the economic situation and outlook, whether the economy is in a prosperous situation or high inflation.
Basics in determining Market Segmentation
In determining market segmentation there are several things that form the basis, namely:
Basics of market segmentation in the consumer market
Geographic variables, including: region, size of the region, size of the city, and climate density.
Demographic variables, including: age, family, life cycle, income, education, etc.
Psychological variables, including: social class, lifestyle, and personality.
Variable buyer behavior, including: benefits sought, user status, level of use, loyalty status and attitude to the product.
Basics of segmentation in industrial markets
Stage 1: establish macro segmentation, i.e. end-user market, geographical location, and number of subscriptions.
Stage 2: attitudes toward the seller, personality traits, product quality, and customers.
Market Segmentation Rate
Because purchases have unique needs and desires. Each buyer, has the potential to become a separate market. Therefore market segmentation can be built on several different levels.
Mass marketing
Mass marketing focuses on mass production, mass distribution and mass promotion of the same product in almost the same way across consumers.
Segment marketing
Segment marketing realizes that buyers differ in their needs, perceptions, and buying behavior.
Niche marketing
Niche marketing focuses on subgroups within segments. A niche is a group that is more narrowly defined.
Micro marketing
Product adjustment practices and marketing programs to suit individual tastes or specific locations. Included in micro marketing are local marketing and individual marketing.
Benefits of Market Segmentation
While the benefits of market segmentation are:
The seller or producer is in a better position to choose marketing opportunities.
Sellers or producers can use their knowledge on different marketing responses, so they can allocate their budgets more precisely to various segments.
The seller or manufacturer can better manage the product and its marketing appeal
Determine the Target Market
The steps in determining the target market are:
The first step
Calculate and assess the profit potential of various existing segments
Second step
Record sales results last year and estimate for the coming year.