Target Segment Benefits and Attractiveness
A market segment is a group in a market that is identifiable based on a certain criteria. Each segment needs a unique marketing strategy in order to satisfy its consumer needs. Market strategy is a designed plan that is used to achieve customer profitability relationship and also build the customer value (Martina, 2017, p. 45). Market analysis entails looking at all aspects of the particular market; for example the competition, buying patterns and other elements. Targeting an attractive market is one of the best marketing strategies that can be used to accumulate a number of people and a certain type of business in order to gain profit. Segmentation is vital in trying to locate a convenient direction for business a unit. If segmentation is done in the right way it places the product at a safe position for it reduces threats of a possible rise of an innovative product and also entry of other service strategies that might bring unnecessary competition (Brooks, 2016, p. 43).
Identifying the target segment and satisfying the needs of every customer are the important aspects of a successful product in a specialized section of a population (Ernst & Dolnicar, 2018, p. 57). In trying to analyze the success of vegan cake shop in London we look at how the consumer market can be dividend using the segmentation practices. When we apply the demographic segmentation we differentiate the groups of customers in terms of age, religion, education, income and occupation (Paul & Amstrong, 2017, p. 17). This type of segmentation will help us to divide the customer into groups and target the consumers of the vegan cakes more easily. In order to be successful, psychographic segmentation will help us to classify the customers on the basis of their opinions and interests. This will enable us to understand their attitudes towards the different types of cakes. We will be able to know if there are any other types of cakes that they prefer best than the vegan cakes. Understanding how your customers feel about your product is very paramount in increasing market share and improving profit (MacDonald & Christopher, 2016).
Before staging the vegan cakes into the market we need to understand what the customers know about the cakes and also their consumption rate. Behavioral segmentation will help us here to understand these variables and be able to group the customers well. In our case here in London people have knowledge about the vegan cakes and prefer them to other cake varieties although their supply is very limited. This gives us a surety that the vegan cake shop will flourish well in London. The data below shows the cake market segmented by percent consumption and preference ratio in London.
Percentage of consumption: preference ratio %
- Vegan cake: 42.20: 19.97
- Dessert cake: 33.19: 15.50
- Flavor cake: 31.47: 14.45
- Cupcake: 31.23: 14.23
The market can also be segmented geographically. This can be done in terms of regions, postal codes, climate and population. Placing the vegan cakes shop in a populated area code means that there is probability of a high market.
In Conclusion we can say that relationship between a brand preference and the specifications of submarket is very important in developing successful marketing strategies. Targeting an attractive market is the best way to gain profit for a business. From our discussion above we have analyzed different segmentation variables in relation to our brand preference which is vegan cakes and so we are well convinced that the vegan cake shop will be successful in London.
I have improved the paper based on the teacher comments by doing away with unnecessary explanations in page 1.I discussed the importance of target market segment benefits by connecting them well with the strategies needed in market analysis. I looked into the importance of market strategy in building customer value and increasing profitability in the market. In the resit paper i gave the definition of market segmentation and related it with customer relations by discussing the importance of market segmentation and what strategies are supposed to be put in place in order to improve the customer market relations.
The original paper lacked expansion of the segmentation process according to the teachers comments on page 3.The teacher required broad analysis of these segmentation processes; that is demographic segmentation, behavioral segmentation, psychographic segmentation and geographic segmentation. In the resit paper I looked into details of every segmentation process discussing their purpose in relation to consumption patterns and how the processes helps in dividing the market into homogeneous submarkets. I gave important input about market attractiveness, and also the necessary ideas needed in building market attractiveness. In this case i related it closely with the strategies that can be laid to increase the market of vegan cakes in London. In the same page of original paper according to the teachers comments there was no well given data about the segmentation process. In the resit paper i gave an analyzed data about the vegan cake preference in comparison with other types of cakes in the London market. In page 4 i separated the references from the body by putting the references in a separate page.
By doing this resit paper i have learned that it is important to dig deep into class notes to avoid giving inadequate explanations when writing examination. Understanding what the questions require is also very important in order to avoid digressing from the demands of the question and also to avoid poor connection of ideas. The whole process of doing the resit paper based on the teacher comments will help me in building a close connection with the teachers in future in order to build my understanding of what is required in examination
References
- Brooks, G. (2016). Defining Market Boundaries. Strategic Management Journal , 24(7),pp.23-40.
- Ernst, D., & Dolnicar, S. (2018). How to avoid random market segmentation solutions. Journal of Travel Research, 57(1),pp.69-82.
- MacDonald, M., & Christopher, M. (2016). Market segmentation in marketing. Palgrave London,13(6),pp.41-65.
- Martina, M. (2017). Targeting the mature market. Journal of Consumer Marketing, 56(9),pp.67-80.
- Paul, K., & Amstrong, G. (2017). Principles of marketing. Pearson Education,21(3),pp.34-45.