A targeted marketing strategy defines a market and the techniques used to achieve it. In this vital process becomes relevant the importance of consumer behavior and data. Here are the steps that follow large companies from segmentation to the marketing mix:
1. Define the relevant market. In this step, market is broadly defined by the type of product or category, such as toothpaste, diet soda or organic juices.
2. To analyze the characteristics and needs of potential consumers. In this analysis, company uses information on income, education, competing brands uses and personality characteristics, together with many other consumer data.
3. Identify the basis for market segmentation. For the company this process involves identifying the characteristics that could isolate small existing submarkets within larger markets.
4. Define and describe market segments.After identifying appropriate basis for segmentation, company develops market segment profiles for different groups describing their characteristics and specific wishes.
5. Analyze competitor’s positions. Within each segment of interest, company wants to know how consumers perceive brands that are already available on market. Identifies crucial attributes of these brands or product characteristics that influence the consumer’s choice.
6. Evaluate market segments. The developing's cost of a new product to satisfy needs of each segment, as well as potential revenue if such needs are met is analyzed.
7. Select market segments. Based on the analysis of segments identified, company will decide which of them will direct their efforts.
8. Finish the marketing mix. After choosing a target market, company chooses a specific marketing mix, or a combination of variables under control of marketers generally known as the four P's. It requires great care in deciding new's brand position and how to communicate their image in terms of price, name, packaging, advertising, etc.
Consumer response is the ultimate test of whether a marketing strategy will succeed or not. And consumer awareness is incorporated in virtually every facet of a successful marketing plan. If you have questions about your customers contact us and get the advice you need.