Quiz 4: Focusing Marketing Strategy With Segmentation and Positioning
There are basically two types of segmenting dimensions: Qualifying Dimensions: These include those features that are offered to everyone in the product market; Determining Dimensions: These include only those features that affect purchase of a particular product in the market. In the marketing plan of HVC following market segments were combined and approached with a similar marketing strategy: • Qualifying dimension: owners of cats, dogs and other small animals; • Qualifying dimension: living within 20 miles of Wellington, Colorado; • Determining dimension: pet owners that value high quality care that is compassionate and personalized; • Determining dimension: currently a client of HVC or not. Different marketing strategies were applied for customers who already utilized HVC's services and pet owners were new to the area, or who bought a new pet. The other dimensions that could be used to segment the market can be: Time segmentation: HVC can open its clinic on weekends as per the requirement of working couples; Lifestyle segmentation: This relates to customer attitudes, values, behavior, emotions, beliefs and interests. The approach use by HVC to determine target market is justified because the clinic is located in a small town of wellington. The two target markets properly capture the population of Wellington. HVC is using combined target market approach. It has identified two types of target markets: • Pet owners with small animals living within 10 miles of Wellington, Colorado who are not currently customers of HVC; and • Pet owners with small animals living within 10 miles of Wellington, Colorado who are currently customers of HVC. HVC is planning to differentiate its offering by providing various pet care services to its target base of customers. It has studied various customer needs of customers in relation to veterinary services and aims to deliver those needs by providing high quality of medical care, compassionate treatment of animals and pet owners, ultra care and love in case of small animals. Also it aims to maintain a healthy relationship with its customers.
Marketing refers to the function through which an organization tries to promote the products and services of a company to attain the organizational goal whether it is to increase market share or increase sales etc. The market is defined as the place where buyers and sellers meet to exchange products on barter or for monetary compensation. A market can be further divided into different categories, namely: 1) Generic Market: When a group of consumers shares a broad need in terms of products or services then it is classified as a generic market. Example - Food, Clothing, etc. are examples of the generic market. In a generic market, vendors tend to focus more on the ability to meet the demand rather than the method in which that demand is met or the quality of the product/ service that is being provided. 2) Product Market: A product market is a type of market where a group of consumers has needs that only a specific type of product or service can meet. Example - A particular mobile phone company targets a specific type of buyers. In this type of market, vendors focus mostly on the method in which that demand is met and aims at improving the overall quality of the product.
Marketing refers to the function through which an organization tries to promote the products and services of a company to attain the organizational goal whether it is to increase market share or increase sales etc. Market Segmentation refers to the process of dividing the audience of a company into segments based on different characteristics such as gender, age, income level, etc. It allows the marketer to better target its communication to improve the conversion ratio of the marketing campaigns. Market segmentation has the following benefits for the company: 1) It helps to better match the needs of the consumers by ensuring that the right message is shown to the right consumer at the right time. 2) It allows the company to retain the consumer for a longer period. 3) By targeting messages to the needs of the consumer, a company can increase its customer loyalty in the market which allows them to gain a larger portion of market share by increasing sales.