Thursday, March 12, 2020
Theoretical Understanding and Practical Applications of Marketing
Theoretical Understanding and Practical Applications of Marketing Introduction Marketing is an important organisational function that aims at informing potential consumers about the value of products and services. Strategic marketing requires the application of a successive marketing mix, which results in excellent sales of products of a business establishment (Kotler 2011; Menkveld 2013).Advertising We will write a custom essay sample on Theoretical Understanding and Practical Applications of Marketing specifically for you for only $16.05 $11/page Learn More Improved product sales correlate positively with improved financial performance outcomes of companies. The marketing mix is a marketing approach that seeks to promote the sales of products based on key elements like segmentation, positioning and targeting (Kotler 2011). This paper discusses the theoretical frameworks and practical applications of segmentation, positioning and targeting in the context of a marketing mix designed for products in the fashion for women in dustry. Segmentation From a theoretical standpoint, segmentation is a marketing strategy that focuses on dividing product markets on the premises of some attributes associated with targeted customers (Weinstein 2013). Such customers should have common priorities. In theory, market segmentation could adopt product differentiation or holistic approaches that aim at improving consumer knowledge about products or services of a business organisation (Weinstein 2013). In order for the market to be divided based on consumer attributes, marketers should analyse essential data that could be used to give facts in the context of the targeted markets. The segmentation theory holds that a good market should be: Measurable. Large. Supportive with regard to promotion and distribution of products Homogenous with regard to internal characteristics, which imply that customers in specific market segments should have similar behaviours towards products. Characterised by external heterogeneity that imp lies that consumers outside a segment should have different customer needs. Practical applications of the segmentation model would involve dividing the targeted market based on a number of factors (Weinstein 2013).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More First, the womenÃ¢â¬â¢s fashion industry would be divided on the premises of geographic criteria (Fiore, Lee Kunz 2004). The criteria could involve regions, countries and postal codes, among others. An excellent segmentation should be practically utilised to identify the attributes of customers based on their locations (Fiore et al 2004). Second, it would be important to divide the market on the premises of the ages, ethnicities and levels of income. Research shows that customers in different groups have different purchasing behaviours (Weinstein 2013). For example, older women would tend to buy different fashion produ cts from those preferred by younger women (Fiore et al 2004). In addition, the potential of the market to produce good sales would be determined by the income levels of potential customers. Third, lifestyle segmentation of markets would be practically determined through the study of customer activities and opinions with regard to womens fashion products. For example, the analysis could consider how women spend their leisure and their opinions about certain products. Thus, the practical application of lifestyle segmentation would classify customers based on their personal attributes such as activities and preferences (Weinstein 2013). From a personal standpoint, segmentation of markets is an essential approach that could be utilised to identify the right market segments that could support excellent sales of womens fashion products.Advertising We will write a custom essay sample on Theoretical Understanding and Practical Applications of Marketing specifically for you for onl y $16.05 $11/page Learn More Targeting Targeting in a marketing strategy is a crucial component of a marketing strategy, which focuses on directing efforts towards specific market targets (Aktas, Kaya Ãâ"zlale 2010). Targeting in a marketing mix is supported by the theory that customers are distinguishable by specific characteristics in the market (Weinstein 2013). Theoretically, targeting markets is based on the following parameters: Socioeconomic factors such as occupation, level of education and level of income. Customer behavioural factors such as events and degrees of loyalty with regard to the products and services offered by business establishments. Psychographic attributes such as values and lifestyles. Product-based factors such as opinions about a product. The practical application of targeting with regard to the products in the women fashion industry would adopt several approaches (Weinstein 2013). First, marketers of fashion products could choose to ignore various market segments and focus on the whole market with the goal of achieving excellent sales outcomes through the art of persuasion. Second, differentiated marketing strategy could be used to market womens fashion products, which would be focused on specific market segments. From a personal point of view, this strategy of targeting a market aims at achieving good results from multiple segments. Third, marketers promoting womens fashion items could adopt direct marketing, which focuses on very specific market segments that are identified through the analysis of the data in consumer databases (Christopher, Payne Ballantyne 2013). For example, the approach could be utilised to identify segments that could have the best sales with regard to beauty items such as perfumes.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Practically, market targeting would be achieved through the application of the following five processes: Selection of the target audience. Consumers could be categorised on the basis of their similar needs and expected benefits with regard to specific products. Identification of subgroups of customers based on attributes such as lifestyles, spending behaviours and demographics. Application of valuation approaches. The valuation strategies would help to learn about market growth trends, market accessibility, barriers to entry, and levels of switching, among others. Testing the identified market targets. All targets are assessed to determine their levels of attractiveness about the strategic positioning of products. All other factors kept constant, the segments that have the highest levels of attractiveness would be selected. Modification of the marketing mix. This step requires that all elements the marketing mix be considered in order to conduct a holistic assessment about the stra tegic positioning of products. Thus, it has been demonstrated that targeting of markets is a crucial component of the marketing mix that could result in the identification of customer clusters, which could lead to a gain of a significant share by business organisations specialising in womens fashion products. Positioning Positioning involves identification of market opportunities and the establishment of approaches that could be used to occupy market niches. Theoretically, positioning is based on the utilisation of the principles of the marketing mix, which include the use of efficient ways of promoting, pricing, distributing, and competing with regard to products. It has been argued that positioning could be used to establish a unique impression in the consumers mind about a product (Mykletun, Crotts Mykletun 2001). If a consumer has good opinions about a product, then he or she could be purchasing the product. Mykletun and colleagues (2001) assert that the goal of product positi oning in the market is to occupy segments that could generate excellent revenues. In order to succeed, the product should be characterised by a positioning concept, which would enable it to outdo the performance of similar products in a competitive market. The positioning should analyse the benefits of a product to consumers (Uysal, Chen Williams 2000). Thus, it focuses on the emotional benefits that customers could have through purchasing such a product. Theoretically, a positioning concept leads to the development of a positioning statement that helps to articulate the target market with regard to customer needs. Positioning could be used by business organisations that focus on differentiation to outdo their competitors. For example, a firm that deals with womenÃ¢â¬â¢s fashion products could concentrate on offering the least expensive products in the market (Chen Uysal 2002; Uysal et al 2000). With regard to the practical application of positioning to establish a good market f or womens fashion products, the marketing team would focus on reviewing theoretical approaches that focus on strategic positioning of products in the market. Practical application of positioning would involve the following: Identification of a products competitors and understanding the targeted market with regard to customer purchasing behaviour. Identification of market dimensions that could define the extent to which product would be sold in the market. Gathering the right market data about customers through sampling techniques. Assessing the level of a productÃ¢â¬â¢s space. Determining the combination of market characteristics that could lead to an excellent positioning of the product. Establishing a link between the goods and the targeted market. Practically, the positioning of womens fashion products would focus on two concepts. First, it would adopt functional positions, which would aim at offering women fashion products that would be of many benefits to them. Second, symb olic positions with regard to womens fashion products would be established to focus on ego identification and self-images of potential female customers. Conclusion In conclusion, positioning of the womenÃ¢â¬â¢s fashion products would greatly improve the chances of excellent revenues of the company. The adoption of the right approaches for product positioning would enable the company to identify product niches in the market. Targeting, positioning and segmentation are essential aspects that should be analysed in order to achieve a successful marketing mix. A marketing mix would be utilised to help firms gain competitive advantage. References Aktas, Z, Kaya, N, Ãâ"zlale, ÃÅ", 2010, Ã¢â¬ËCoordination between monetary policy and fiscal policy for an inflation targeting emerging marketÃ¢â¬â¢, Journal of International Money and Finance, vol. 29, no. 1, pp. 123-138. Chen, JS, Uysal, M, 2002, Ã¢â¬ËMarket positioning analysis: A hybrid approachÃ¢â¬â¢, Annals of Tourism Researc h, vol. 29, no. 4, pp. 987-1003. Christopher, M, Payne, A, Ballantyne, D, 2013, Relationship marketing. Routledge, London, United Kingdom. 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